Document:

Exclusive Agreement

 Exhibit 10.3 
  
 EXCLUSIVE AGREEMENT 
  
 This Agreement between THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY (“Stanford”), an institution of higher education having powers under the
laws of the State of California, and BioVest International, Inc. (“BioVest”), a corporation having a principal place of business at 8500 Evergreen Boulevard NW, Minneapolis, MN 55433, is effective on the 17 day of September, 2004
(“Effective Date”). 
  

	 	1	BACKGROUND 

  

	 	1.1	Stanford has certain rights to biological material, specifically hybridoma cell lines known as K6H6/B5 and 1D12 developed in the laboratory of Dr. Ronald Levy, and are described in
Stanford Docket S83-138. The invention was made in the course of research supported by the National Institutes of Health. Stanford wants to have the invention perfected and marketed as soon as possible so that resulting products may be available for
public use and benefit. 

  

	 	1.2	BioVest wishes to acquire a license to use the aforementioned biological materials for commercial purposes to develop personalized vaccines for the treatment of B and T cell
neoplasms. 

  

	 	2	DEFINITIONS 

  

	 	2.1	“Exclusive” means that, subject to Articles 3 and 5, Stanford will not grant further licenses in the Licensed Field of Use in the Licensed Territory.

  

	 	2.2	“Biological Materials” means the K6H6/B5 and /or 1D12 cell lines. 

  

	 	2.3	“Licensed Field of Use” means the use of the Biological Materials to generate a series of personalized vaccines for the treatment of B and T cell neoplasms.

  

	 	2.4	“FDA Approval” means the approval by the United States Food and Drug Administration of an application by BioVest to sell a vaccine made using the Biological Materials.

  

	 	2.5	“Research Purpose(s)” means any non-commercial use of the Biological Materials for in-vitro and /or non-human animal in vivo research purposes where no payment or other
compensation (other than payments for research) is received from third parties. Except as provided herein, Research Purpose(s) specifically excludes the sale or transfer of the Biological Materials. 

  

	 	2.6	“Licensed Territory” means worldwide. 

  

	 	2.7	“Running Royalty” means payments made based on receipt of monies by BioVest for commercial sale of vaccines made using the Biological Materials 

 

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	 	2.8	“Stanford Indemnitees” means Stanford and Stanford Hospitals and Clinics, and their respective trustees, officers, employees, students, and agents.

  

	 	3	GRANT 

  

	 	3.1	Grant. Subject to the terms and conditions of this Agreement, Stanford grants BioVest a license to the Biological Materials in the Licensed Field of Use to make, have made,
use, import, offer to sell and sell Licensed Product in the Licensed Territory. 

  

	 	3.2	Exclusivity. The license is Exclusive, including the right to sublicense under Article 4, in the Licensed Field of Use beginning on September 17, 2004, and ending on
September 17, 2019. 

  

	 	3.3	Retained Rights. Stanford retains the right, on behalf of itself and all other non profit academic research institutions, to use Biological Material for any non-profit
purpose, including sponsored research and collaborations. Stanford and any such other institution has the right to publish any information relating to the Biological Material. 

  

	 	4	SUBLICENSING 

  

	 	4.1	Permitted Sublicensing. BioVest has the right to transfer or sublicense the Biological Materials to collaborators in the Field of Use for purposes of carrying out this
Agreement. 

  

	 	4.2	Sublicense Requirements. Any sublicense: 

  

	 	(A)	is subject to this Agreement; 

  

	 	(B)	will reflect that any sublicensee will not further sublicense; 

  

	 	(C)	will expressly include the provisions of Articles 9, 10 and 11 for the benefit of Stanford; and 

  

	 	(D)	will require the transfer of all obligations, including the payment of royalties specified in the sublicense, to Stanford or its designee, if this Agreement is terminated.

  

	 	4.3	Copy of Sublicenses. BioVest will submit to Stanford a copy of each sublicense. 

  

	 	5	GOVERNMENT RIGHTS 

  
 This Agreement is subject to Title 35 Sections 200-204 of the United States Code. Among other things, these provisions provide the United States Government with nonexclusive rights in the Licensed Patent. They also
impose the obligation that Licensed Product sold or produced in the United States be “manufactured substantially in the United States.” BioVest will ensure all obligations of these provisions are met. 
  

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	 	6	DILIGENCE 

  

	 	6.1	Milestones. Because the invention is not yet commercially viable as of the Effective Date, BioVest will diligently develop, manufacture, and sell Licensed Product and will
diligently develop markets for Licensed Product. In addition, BioVest will meet the milestones shown in paragraph 7.3, and notify Stanford in writing as each milestone is met. 

  

	 	6.2	Progress Report. By March 1 of each year, BioVest will submit a written annual report to Stanford covering the preceding calendar year. The report will include information
sufficient to enable Stanford to satisfy reporting requirements of the U.S. Government and for Stanford to ascertain progress by BioVest toward meeting this Agreement’s diligence requirements. Each report will describe, where relevant:
BioVest’s progress toward commercialization of Licensed Product, including work completed, key scientific discoveries, summary of work-in-progress, current schedule of anticipated events or milestones, market plans for introduction of Licensed
Product, and significant corporate transactions involving Licensed Product. 

  

	 	7	ROYALTIES 

  

	 	7.1	Issue Royalty. BioVest will pay to Stanford a noncreditable, nonrefundable license issue royalty of $15,000.00 within 30 days of execution of this Agreement. In addition,
BioVest agrees to supply Dr. Levy with up to 100 miligrams of products (master cell bank for each of the cell lines with documentation required for IND submissions, and purified 1D12 antibody) for his research and the opportunity to be included as a
clinical trail site. 

  

	 	7.2	License Maintenance Fee. Beginning September 17, 2005, and each September 17, thereafter, BioVest will pay Stanford a yearly license maintenance fee of $10,000.00. Yearly
maintenance payments are nonrefundable, but they are creditable each year as described in Section 7.4 

  

	 	7.3	Milestone Payment. BioVest will pay to Stanford a non-creditable, nonrefundable milestone payment of $100,000.00 within 1 year after FDA Approval of a vaccine manufactured
using the Biological Materials or 5 years from the signing of the Agreement, whichever is earlier. 

  

	 	7.4	Running Royalty. Following FDA approval, BioVest will pay Stanford a Running Royalty of the higher of $50.00 per patient or 0.050% of the amount received by BioVest for each
patient treated for a B or T cell neoplasm with a vaccine made using the Biological Materials. The Running Royalty will be creditable against the License Maintenance Fee. 

  

	 	7.5	Creditable Payments. The license maintenance fee for a year may be offset against Running Royalty payments due occurring in that year. 

  
 For example: 
  

	 	(A)	 if BioVest pays Stanford a $10 maintenance payment for year Y, and according to Section 7.4 $15 in Running Royalties are due Stanford for in 

  

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year Y, BioVest will only need to pay Stanford an additional $5 for that year’s earned royalties. 

  

	 	(B)	if BioVest pays Stanford a $10 maintenance payment for year Y, and according to Section 7.4 $3 in Running Royalties are due Stanford in year Y, BioVest will not need to pay Stanford
any Running Royalty payment for that year. BioVest will not be able to offset the remaining $7 against a future year’s Running Royalties. 

  

	 	7.6	Currency. BioVest will calculate the royalty on sales in currencies other than U.S. Dollars using the appropriate foreign exchange rate for the currency quoted by the Bank of
America (San Francisco) foreign exchange desk, on the close of business on the last banking day of each calendar quarter. BioVest will make royalty payments to Stanford in U.S. Dollars. 

  

	 	7.7	Non-U.S. Taxes. BioVests will pay all non-U.S. taxes related to royalty payments. These payments are not deductible from any payments due to Stanford.

  

	 	7.8	Interest. Any payments not made when due will bear interest at the lower of (a) the Prime Rate published in the Wall Street Journal plus 200 basis points or (b) the maximum
rate permitted by law. 

  

	 	8	ROYALTY REPORTS, PAYMENTS, AND ACCOUNTING 

  

	 	8.1	Quarterly Earned Royalty Payment and Report. Beginning with the first sale of a Licensed Product, BioVest will submit to Stanford a written report (even if there are no
sales) and an earned royalty payment within 30 days after the end of each calendar quarter. With each report BioVest will include any earned royalty payment due Stanford for the completed calendar quarter (as calculated under Section 7.4.)

  

	 	8.2	Termination Report. BioVest will pay to Stanford all applicable royalties and submit to Stanford a written report within 90 days after the license terminates. BioVest will
continue to submit earned royalty payments and reports to Stanford after the license terminates, until all Licensed Products made or imported under the license have been sold. 

  

	 	8.3	Accounting. BioVest will maintain records showing manufacture, importation, sale, and use of a Licensed Product for 7 years from the date of sale of that Licensed Product.
Records will include general-ledger records showing cash receipts and expenses, and records that include: production records, customers, invoices, serial numbers, and related information in sufficient detail to enable Stanford to determine the
royalties payable under this Agreement. 

  

	 	8.4	Audit by Stanford. BioVest will allow Stanford or its designee to examine BioVest’s records to verify payments made by BioVest under this Agreement.

  

	 	8.5	Paying for Audit. Stanford will pay for any audit done under Section 8.4. But if the audit reveals an underreporting of earned royalties due Stanford of 5% or more for the
period being audited, BioVest will pay the audit costs. 

  

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	 	8.6	Self-audit. BioVest will conduct an independent audit of sales and royalties at least every 2 years if annual sales of Licensed Product are over $5,000,000. The audit will
address, at a minimum, the amount of gross sales by or on behalf of BioVest during the audit period, the amount of funds owed to Stanford under this Agreement, and whether the amount owed has been paid to Stanford and is reflected in the records of
the BioVest. BioVest will submit the auditor’s report promptly to Stanford upon completion. BioVest will pay for the entire cost of the audit. 

  

	 	9	EXCLUSIONS AND NEGATION OF WARRANTIES 

  

	 	9.1	Negation of Warranties. Stanford provides BioVest the rights granted in this Agreement AS IS and WITH ALL FAULTS. Stanford makes no representations and extends no warranties
of any kind, either express or implied. Among other things, Stanford disclaims any express or implied warranty: 

  

	 	(A)	of merchantability, of fitness for a particular purpose, 

  

	 	(B)	of non-infringement or 

  

	 	(C)	arising out of any course of dealing. 

  

	 	10	INDEMNITY 

  

	 	10.1	Indemnification. BioVest will indemnify, hold harmless, and defend all Stanford Indemnitees against any claim of any kind arising out of or related to the exercise of any
rights granted BioVest under this Agreement or the breach of this Agreement by BioVest. 

  

	 	10.2	No Indirect Liability. Stanford is not liable for any special, consequential, lost profit, expectation, punitive or other indirect damages in connection with any claim
arising out of or related to this Agreement, whether grounded in tort (including negligence), strict liability, contract, or otherwise. 

  

	 	10.3	Workers’ Compensation. BioVest will comply with all statutory workers’ compensation and employers’ liability requirements for activities performed under this
Agreement. 

  

	 	10.4	 Insurance. During the term of this Agreement, BioVest will maintain Comprehensive General Liability Insurance, including Product Liability Insurance, with a
reputable and financially secure insurance carrier to cover the activities of BioVest and its sublicensees. The insurance will provide minimum limits of liability of $5,000,000 and will include all Stanford Indemnitees as additional insureds.
Insurance must cover claims incurred, discovered, manifested, or made during or after the expiration of this Agreement and must be placed with carriers with ratings of at least A- as rated by A.M. Best. Within 15 days of the Effective Date of this
Agreement, BioVest will furnish a Certificate of Insurance evidencing primary coverage and additional insured requirements. BioVest will provide to 

  

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Stanford 30 days prior written notice of cancellation or material change to this insurance coverage. BioVest will advise Stanford in writing that it
maintains excess liability coverage (following form) over primary insurance for at least the minimum limits set forth above. All insurance of BioVest will be primary coverage; insurance of Stanford and Stanford Hospitals and Clinics will be excess
and noncontributory. 

  

	 	11	STANFORD NAMES AND MARKS 

  
 BioVest will not identify Stanford in any promotional statement, or otherwise use the name of any Stanford faculty member, employee, or student, or any trademark, service
mark, trade name, or symbol of Stanford or Stanford Hospitals and Clinics, including the Stanford name, unless BioVest has received Stanford’s prior written consent. Permission may be withheld at Stanford’s sole discretion. 
  

	 	12	TERMINATION 

  

	 	12.1	Termination by BioVest. BioVest may terminate this Agreement by giving Stanford written notice at least 30 days in advance of the effective date of termination selected by
BioVest. 

  

	 	12.2	Termination by Stanford. Stanford may terminate this Agreement if BioVest is in breach of any provision hereof; and BioVest fails to remedy any such breach within 30 days
after written notice thereof by Stanford. 

  

	 	12.3	Surviving Provisions. Surviving any termination or expiration are: 

  

	 	(A)	BioVest’s obligation to pay royalties accrued or accruable; 

  

	 	(B)	any claim of BioVest or Stanford, accrued or to accrue, because of any breach or default by the other party; and 

  

	 	(C)	BioVest shall destroy all Biological Materials and Licensed Products in its possession, and shall provide written evidence of said destruction, except that BioVest is allowed to use
the Biological Materials for any patient with on going therapy with a vaccine made using the Biological Material where therapy is started before the termination of the Agreement. 

  

	 	(D)	the provisions of Articles 9, 10, and 11 and any other provision that by its nature is intended to survive. 

  

	 	13	ASSIGNMENT 

  

	 	13.1	Permitted Assignment by BioVest. Subject to Section 13.3, BioVest may assign this Agreement as part of a sale, regardless of whether such a sale occurs through an asset sale,
stock sale, merger or other combination, or any other transfer of: 

  

	 	(A)	BioVest’s entire business; or 

  

	 	(B)	that part of BioVest’s business that exercises all rights granted under this Agreement. 

  

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	 	13.2	Any Other Assignment by BioVest. Any other attempt to assign this Agreement by BioVest is null and void. 

  

	 	13.3	Conditions of Assignment. Prior to any assignment, the following conditions must be met: 

  

	 	(A)	BioVest must give Stanford 30 days prior written notice of the assignment, including the new assignee’s contact information; and 

  

	 	(B)	the new assignee must agree in writing to Stanford to be bound by this Agreement; and 

  

	 	(C)	Stanford must have received a $100,000.00 assignment fee. 

  

	 	13.4	After the Assignment. Upon a permitted assignment of this Agreement pursuant to Section 13.1, BioVest will be released of liability under this Agreement and the term
“BioVest” in this Agreement will mean the assignee. 

  

	 	14	ARBITRATION 

  

	 	14.1	Dispute Resolution by Arbitration. Any dispute between the parties regarding any payments made or due under this Agreement will be settled by arbitration in accordance with
the Licensing Agreement Arbitration Rules of the American Arbitration Association. There parties are not obligated to settle any other dispute that may arise under this Agreement by arbitration. 

  

	 	14.2	Request for Arbitration. Either party may request such arbitration. Stanford and BioVest will mutually agree in writing on a third party arbitrator within 30 days of
the arbitration request. The arbitrator’s decision will be final and nonappealable and may be entered in any court having jurisdiction. 

  

	 	14.3	Discovery. The parties will be entitled to discovery as if the arbitration were a civil suit in the California Superior Court. The arbitrator may limit the scope, time, and
issues involved in discovery. 

  

	 	14.4	Place of Arbitration. The arbitration will be held in Stanford, California unless the parties mutually agree in writing to another place. 

  

	 	15	NOTICES 

  
 All notices under this Agreement are deemed fully given when written, addressed, and sent as follows: 
  
 All general notices to BioVest are mailed to: 
  
 James McNulty, CPA 
 BioVest International Inc. 
 5310 Cypress Center Drive #101 
 Tampa FL 33609 
  
 jamcnulty@biovest.com 
  

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 All financial invoices to BioVest (i.e., accounting contact) are e-mailed to: 
  
 James McNulty, CPA 
 BioVest International Inc. 
 5310 Cypress Center Drive #101 
 Tampa FL 33609 
  
 jamcnulty@biovest.com

  
 All progress report invoices to BioVest (i.e., technical contact) are e-mailed
to: 
  
 Mark Hirschel, Ph.D. 
 BioVest International, Inc. 
 8500 Evergreen Blvd. NW 
 Minneapolis MN 55433 
  
 mhirschel @ biovest.com 
  
 All general notices to
Stanford are e-mailed or mailed to: 
  
 Office of Technology Licensing

  
 1705 El Camino Real 
  
 Palo Alto, CA 94306-1106 
  
 info@otlmail .Stanford.edu 
  
 All payments to Stanford are mailed to: 
  
 Stanford University 
  
 Office of Technology Licensing 
  
 Department #
44439 
  
 P.O. Box 44000 
  
 San Francisco, CA 94144-4439 
  
 All progress reports to Stanford are e-mailed or mailed to: 
  
 Office of Technology Licensing 
  
 1705 El Camino Real 
  
 Palo Alto, CA 94306-1106 
  
 info@otlmail.Stanford.edu 
  
 Either party may change its address with
written notice to the other party. 
  

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	 	16	MISCELLANEOUS 

  

	 	16.1	Waiver. No term of this Agreement can be waived except by the written consent of the party waiving compliance. 

  

	 	16.2	Choice of Law. This Agreement and any dispute arising under it is governed by the laws of the State of California, United States of America, applicable to agreements
negotiated, executed, and performed within California. 

  

	 	16.3	Exclusive Forum. The state and federal courts having jurisdiction over Stanford, California, United States of America, provide the exclusive forum for any court action
between the parties relating to this Agreement. BioVest submits to the jurisdiction of such courts, and waives any claim that such a court lacks jurisdiction over BioVest or constitutes an inconvenient or improper forum. 

  

	 	16.4	Headings. No headings in this Agreement affect its interpretation. 

  
 The parties execute this Agreement in duplicate originals by their duly authorized officers or representatives. 
  

			
	 	 	 THE BOARD OF TRUSTEES OF THE LELAND
 STANFORD JUNIOR UNIVERSITY

		
	Signature	 	 /s/ Katharine Ku

	 Name
	 	 Katharine Ku

	 Title
	 	 Director, Technology Licensing

	 Date
	 	 Oct 6, 2004

		
	 	 	 BIOVEST INTERNATIONAL, INC.

		
	Signature	 	 /s/ Steve Arikian

	 Name
	 	 Steve Arikian

	 Title
	 	 Chairman & CEO

	 Date
	 	 10/07/04

  

 Page: 9 of 10Investment Agreement

 Exhibit 10.4 
  
 INVESTMENT AGREEMENT 
  
 BETWEEN 
  
 BIOVEST INTERNATIONAL, INC. 
  
 and 
  
 ACCENTIA, INC.

  
 4/9/03 

 INVESTMENT AGREEMENT 
  
 THIS INVESTMENT AGREEMENT (the “Agreement”) is made as of April 10, 2003, by and among Biovest
International, Inc., a Delaware corporation (“Biovest”) and Accentia, Inc., a Florida corporation (“Accentia”) 
  
 RECITALS: 
  
 1. The Board of Directors of Biovest has approved and deemed it fair, advisable and in the best interests of the Biovest stockholders (the “Biovest
Stockholders”) to adopt and approve this Agreement and the transactions contemplated hereby, including the issuance of capital stock contemplated by Section 1.01 below (collectively, the “Transactions”). 
  
 2. The Board of Directors of Accentia has approved and deemed it fair,
advisable and in the best interest of the Accentia shareholders (the “Accentia Stockholders”) to adopt and approve this Agreement and the Transactions contemplated hereby. 
  
 3. The parties wish to enter into this Agreement as the definitive agreement and understanding between the parties to set
forth the terms and conditions of Accentia’s investment in Biovest. 
  
 NOW, THEREFORE, in consideration of the mutual covenants, agreements, representations and warranties contained herein, the parties hereto agree as follows: 
  
 ARTICLE I. 
 The Transaction 
  
 1. 1.01 Purchase of Shares. Biovest hereby agrees to issue to Accentia at Closing, as defined, approximately 40,380,304 (as adjusted to represent 81% of the outstanding capital stock immediately following the
Closing) shares of common stock, $.01 par value, representing 81% of the shares of Biovest common stock which will be outstanding immediately following such issuance for the aggregate purchase price of $20,000,000. (the “Purchase Price”)
consisting of $5,000,000 in cash to be paid at the last to occur of Closing or sixty days following the execution of this Agreement and a non-interest bearing note for $15,000,000, attached as Schedule 1.01, with the following annual principal
payments: $2,500,000 on the first anniversary of Closing, $2,500,000 on the second anniversary of Closing, $5,000,000 on the third anniversary of Closing and $5,000,000 on the fourth anniversary of Closing. Within five business days following
execution of this Agreement, Accentia will advance $530,000 to Biovest pursuant to the Promissory Note and Security Agreement attached as Exhibit 1.01(a) (the “Pre-closing Advance”). The Pre-closing Advance shall be used by Biovest only to
pay the NCI. At the closing of this Agreement, the Pre-closing Advance shall be deemed part of the Purchase Price due in cash at closing. Biovest shall make any required disclosure to NIC regarding the Pre-closing Advance, its use of the Pre-closing
Advance to pay NIC, and this Agreement. The parties agree that the cash portion of the purchase price shall be paid (and deemed received by Biovest) to the extent Accentia makes payments as set forth on Schedule 1.01 directly to the payees as set
forth on such Schedule, on the Closing Date as defined below (“Purchase Price”). The Purchase Price due from Accentia at Closing shall be automatically reduced by the amount of any payables, liabilities or other obligations of Biovest, not
fully disclosed on schedules thereto. At the Closing, all working capital borrowed by Biovest after December 1, 2002, to the extent listed 
  

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 on Schedule 1.01(c), shall be repaid with interest out of the Purchase Price. At the Closing, all convertible notes shall
remain outstanding under their current terms and conditions. The convertible notes shall be accorded “secured” debt status in accordance with the Security Agreement attached as Exhibit l.0l(b), with such security status being subordinated
to all outstanding “secured” debt, if any, of the Company and by secured debt borrowed by Biovest after the Closing up to a maximum amount of $5,000,000. Further, the holders of the convertible notes shall be given the opportunity to
extend the maturity of their notes to the third anniversary of the Closing under the following terms: 
  
 (a) All principal and interest shall be due in one installment on the third anniversary of the Closing; 
  
 (b) Interest shall be 7% per annum paid with principal; and 
  
 (c) All principal and accrued interest may be converted into equity of either
Accentia or Biovest as follows: (i) all principal and accrued interest may be converted into that number of shares of common stock of Accentia equal to the principal and interest being converted based upon the following Accentia Common Stock value:
(a) if Accentia’s shares are publicly traded, the value of a share of Accentia Common Stock shall be an amount equal to the IPO offering price, before discount or commission, as stated in the final Prospectus for Accentia Common Stock or in the
alternative (b) if Accentia’s Common Stock is not publicly trading, the value of a share of Accentia Common Stock shall be determined by appraisal by an independent nationally recognized valuation firm selected by the Board of Directors of
Accentia. Such appraisal determination shall be set forth in reasonable detail in a written notice to Biovest and, absent manifest error or fraud, shall be binding on the parties; provided, however, that Biovest through its Board of Directors shall
have the right to object to such determination by providing written notice (the “Objection Notice”) to Accentia within five (5) business days of Biovest’s receipt of such written notice of such determination. Provided Biovest delivers
the Objection Notice within such five (5) business day period, then, within a further period of ten (10) business days (the “Settlement Period”), the parties and, if desired, their accountants will attempt to resolve in good faith any
disputed items and reach a written agreement with respect thereto. Failing such resolution, the unresolved disputed items will be referred for final binding resolution to an independent nationally recognized firm of certified public accountants (the
“Sole Arbiter”) mutually acceptable to Accentia, on the one hand, and Biovest through its Board of Directors, on the other hand. In the event that Accentia and Biovest are unable to select the Sole Arbiter within five (5) business days
following the end of the Settlement Period, then each of Accentia and Biovest shall have an additional five (5) business days to select (and provide written notice of such selection to the other) an independent nationally recognized firm of
certified public accountants. Each such firm shall be referred to, respectively, as the “First Arbiter” (selected by Accentia) and the “Second Arbiter” (selected by Biovest). Within ten (10) business days following the selection
of the First Arbiter and the Second Arbiter, the First Arbiter and the Second Arbiter shall select (and provide written notice to Accentia and Biovest of such selection) a third independent nationally recognized firm of certified public accountants
(the “Third Arbiter”). For purposes of this Agreement, the “Arbiter” shall mean (A) the Sole Arbiter or, .(B) in the case that the Company and Biovest cannot agree upon the Sole Arbiter, the First Arbiter, Second Arbiter and
Third Arbiter collectively; provided that if either the Company or Biovest fails to select the First Arbiter or the Second Arbiter, respectively, then the Sole Arbiter (and thus the “Arbiter”) shall be deemed to be the First Arbiter in the
case where Biovest failed to make 
  

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 the selection and the Second Arbiter in the case where the Company failed to make the selection. In the case where the
Arbiter consists of a First Arbiter, Second Arbiter and Third Arbiter, the decision of a majority of the First Arbiter, Second Arbiter and Third Arbiter shall constitute the decision of the Arbiter hereunder. The fees and expenses of the Arbiter
shall be borne by the non- prevailing party. In making such determination (the “Arbiter’s Determination”), the Arbiter shall determine only those items in dispute and may not assign a value to any disputed item greater than the
greatest value for such sum claimed by either party or less than the lowest value for such item claimed by either party. The Arbiter’s Determination shall be (1) in writing, (2) furnished to Accentia and Biovest as soon as practicable after the
items in dispute have been referred to the Arbiter (but in no event later than ten (10) business days after such referral), (3) made in accordance with GAAP consistently applied, and (4) non-appealable; or in the alternative; (ii) all principal and
accrued interest of the convertible note may be converted into common stock of Biovest at $0.50 per share. 
  
 1.02 Common Stock. The shares of Biovest capital stock to be issued to Accentia hereunder shall be common stock, par value $.01 per share
(“Biovest Common Stock”). 
  
 1.03 Letter of
Investment Intent. At closing, Accentia shall execute and deliver to Biovest, a Letter of Investment Intent in form acceptable to Biovest confirming Accentia’s intent to hold the shares of Biovest Common Stock for investment and not for
resale and confirming Accentia’s covenant set forth in Section 5.02. 
  
 1.04 Limitation on Sale. Neither the CRADA nor the rights to the Non-Hodgkin Lymphoma Therapeutic Cancer Vaccine shall be sold by Biovest except in transactions, in which the after tax net proceeds of sale are
distributed to the Biovest shareholders with holders of Biovest shares outstanding immediately before Closing receiving the same per share distribution as the common shares of Biovest held by Accentia. Except as provided herein, this Agreement
places no limitation of the sale of Biovest assets other than the CRADA and the rights to the Non-Hodgkin Lymphoma Therapeutic Cancer Vaccine owned by Biovest at Closing. 
  
 1.05 Commencement of Public Trading. Within twelve months following Closing, Biovest shall file all necessary
documents and take all necessary actions required to permit the Free Trading Shares of Biovest common stock to trade publicly (the “Commencement of Public Trading”). The Board of Directors of Biovest shall have broad discretion in
selecting how to comply with the requirement of this Section. In the event that Biovest has not completed the process required to permit the Free Trading Shares of Biovest common stock to trade publicly, Biovest shall, following a ninety day written
notice and right to cure, make the following tender offers to purchase the shares of Biovest outstanding immediately before Closing: (i) 980,000 shares at $2.00 per share at the first anniversary of the Closing, (ii) 1,960,000 shares at $2.00 per
share at the second anniversary of the Closing, (iii) 2,940,000 shares at $2.00 per share at the third anniversary of the Closing and (iv) 3,920,000 shares at $2.00 per share at the fourth anniversary of the Closing. The Biovest Board of Directors
shall exercise good faith to make the tender offer(s) based on the number of the Biovest shares held by each immediately before the Closing or his assignee. To the extent that a registration statement is required under state or federal securities
laws before the tender offer(s) can be made or shares purchased, Biovest will exercise good faith to file and effect all required filings and obtain all required governmental approvals. Notwithstanding the forgoing, no tender offer shall be required
to be made by Biovest during any annual period provided the process required to permit the free trading shares of Biovest common stock to trade publicly has been completed during that annual period. 
  

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 1.06 Outstanding Legal Fees. At the Closing, Accentia will, in the exercise of its discretion,
settle all accrued legal accounts payable. 
  
 ARTICLE II

 Definitions 
  
 For all purposes of this Agreement, the following terms shall have the following respective meanings: 
  
 2.01 Stock of Biovest. The term “Stock of Biovest” shall
mean and refer to the Capital Stock of Biovest regardless of class or series. 
  
 2.02 CRADA. The term “CRADA” shall mean the Cooperative Research and Development Agreement for Non-Hodgkin Lymphoma Therapeutic Cancer Vaccine between Biovest and the National Cancer Institute.

  
 2.03 Equity Security. The term “Equity
Security” shall mean and refer to capital stock and other securities of a type generally regarded as Equity Securities and options, warrants, rights or other securities convertible into, exchangeable for or entitling the holder thereof, under
any circumstances, to purchase or subscribe for any Equity Security. 
  
 2.04 Debt. The term “Debt” shall mean and refer to all obligations including, but not limited to, those under written and oral agreements, accounts payable, accruals, notes, bonds, debentures, guarantees and all other types
of obligations to pay whether the amount of the obligation is fixed or undetermined or absolute or contingent. 
  
 2.05 FDA. The term “FDA” shall mean the U.S. Food and Drug Administration. 
  
 2.06 FDA Approval. The term FDA Approval shall mean unconditional licensure and approval of the Biovest non-Hodgkin
lymphoma therapeutic cancer vaccine officially granted by the FDA to Biovest. 
  
 2.07 Free Trading Shares. Shares of Biovest common stock which are not subject to any restriction on sale or transfer under the Securities Act of 1933, as amended, any applicable state securities law or any
contract. 
  
 2.08 Intellectual Property. The term
“Intellectual Property” shall mean and refer to all applications for patents, trademarks and trade names, all issued patents, trademark registrations and trade name registrations, and all material proprietary trade secrets relating to
information, processes or other matters that are not in the public domain. 
  
 2.09 Mortgage Indebtedness. The term “Mortgage Indebtedness” shall mean and refer to all mortgages (real, personal and mixed), vendor’s liens, deeds of trust, conditional bills of sale, security
interests, pledges and other types of liens generally regarded as mortgages affecting, relating to, or pertaining to real or personal property, whether or not personal liability for the payment or discharge thereof exists. 
  
 2.10 Non-Hodgkin Lymphoma Therapeutic Cancer Vaccine. The term
“Non-Hodgkin Lymphoma Therapeutic Cancer Vaccine” shall mean the personalized vaccine as described in the FDA trials being conducted by Biovest and in the CRADA. 
  
 2.11 Preferred Stock. The term “Preferred Stock” shall mean and refer to the 10,000,000 shares of Preferred
Stock of Biovest authorized in the Articles of Incorporation of Biovest. 
  

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 2.12 Material Contracts. The term “Material Contracts” shall mean and refer to every
contract or arrangement to which the specified person or entity is a party, or by which it is bound, which contract satisfies one of the following requirements: (i) contract for employment which is not terminable at will; (ii) labor union or other
collective bargaining agreement; (iii) bonuses, deferred compensation, pension, profit sharing, retirement, insurance or other fringe benefit, plan or arrangement; (iv) franchise, distributorship or other similar contract which will extend beyond
the closing; (v) contracts or commitments of any sort or nature relating to the financing or refinancing of Mortgage Indebtedness; (vi) bonds, bills of sale, bank loans, construction loans, liens, security interest of credit agreements not otherwise
specified or excluded from the above; and (vii) any contract or commitment involving more than $10,000 in the aggregate or which can not be terminated upon thirty days or less notice. 
  
 2.13 Closing. The term “Closing” shall mean and refer to the closing of the transaction contemplated by
this Agreement. 
  
 2.14 Closing Date. The term
“Closing Date” shall mean and refer to the date upon which the closing of this transaction occurs as set forth in Section 6.01. 
  
 ARTICLE III 
 Representations and
Warranties of Biovest 
  
 Biovest, intending for ACCENTIA and
its officers and directors to rely thereon, represents, warrants and agrees as follows: 
  
 3.01 Corporate Standing. Biovest is a duly organized, validly existing corporation in good standing under the laws of the State of Delaware. Biovest has full corporate power and authority to own its assets and
operate its business in the manner that such business is presently being conducted. Biovest is qualified to transact business in every state where the activities of Biovest require that it qualify to transact business. Except as set forth on
Schedule 3.01 attached hereto, Biovest has all governmental permits, licenses and other authorizations necessary to conduct its business as presently being conducted, and none of the transactions contemplated by this Agreement will terminate or
violate any such permits, licenses or authorizations. 
  
 3.02
Outstanding Equity Securities. Schedule 3.02 attached hereto and incorporated herein by reference lists: (i) each authorized class of Equity Securities, the number of shares, and the holders of all outstanding shares of Biovest and (ii) each
option, warrant or right or other obligation of any nature to issue shares of Biovest Capital Stock. There will be no shares of Biovest Preferred Stock issued or outstanding at the Closing. There will be no option, warrant, right or any other
obligation of any nature to issue shares of Biovest Capital Stock not fully disclosed on Schedule 3.02. All shares of outstanding Capital Stock reflected as issued on Schedule 3.02 are duly and validly issued and are fully paid and non-assessable.
During the period that any options warrants or convertible notes outstanding at the Closing remain outstanding (the “First Right of Refusal Period”), Accentia shall have a first right of refusal to maintain ownership of 81% of the then
outstanding capital stock of Biovest (the “Accentia First Right of Refusal”). During the First Right of Refusal Period, should Biovest for any reason issue any shares of capital stock, Accentia shall have the right to purchase that number
of shares of 
  

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 Biovest common stock required to maintain Accentia’s ownership at 81% of the then outstanding Biovest capital stock.
The aggregate purchase price to be paid by Accentia for the issuance of Accentia First Right of Refusal shares shall be an amount equal to the aggregate price paid by the third party for the Biovest shares that triggered Accentia’s First Right
of Refusal (i.e. the Accentia First Right of Refusal purchase price for all shares required to maintain Accentia’s ownership at 81% of the then outstanding capital stock will equal the aggregate price paid by the third party for all of the
shares which triggered the first right of refusal as opposed to matching the per share, price paid by the third party. Accordingly, the Accentia First Right of Refusal per share purchase price may be significantly lower that the per share price paid
by the third party). The Accentia First Right of Refusal purchase price may, in the discretion of Accentia, be paid by a five year promissory note bearing the lowest rate of interest permitted by applicable corporate law. The First Right of Refusal
applies to all shares issued by Biovest during the First Right of Refusal Period including, but not limited to, shares issued in new financings, acquisitions, option and warrant exercises and conversion of convertible notes. 
  
 3.03 Power to Agree. The execution and delivery of this Agreement, the
consummation of the Transactions and compliance with the terms of this Agreement will not result in a breach of any of the terms or provisions of, or constitute a default under the Certificate of Incorporation or Bylaws of Biovest, any indenture or
other agreement or instrument to which Biovest is a party or by which it or its assets are bound; or any applicable regulation, judgment, order or decree of any government instrumentality or court, domestic or foreign, having jurisdiction over
Biovest, its securities or its properties. The execution of this Agreement, the transactions contemplated in this Agreement, including, but not limited to, the issuance of Capital Stock hereunder and the Closing of this Agreement have been fully
authorized by Biovest and no further or additional action, approval or consent by Biovest or its directors or shareholders is required to make this Agreement a legal and enforceable obligation of Biovest. Except as set forth on Schedule 3.03
attached hereto, no consent, approval, exemption, audit, waiver, order or authorization of, or registration, qualification, designation, declaration, notice or filing with, any governmental authority or any other person is required for
Biovest’s execution, and delivery of this Agreement, the performance of ‘its obligations hereunder, or Biovest’s execution or closing of this Agreement . Except as set forth on Schedule 3.03, there are no existing agreements, options,
commitments or rights with, of or to Biovest to acquire any of Biovest’s assets, properties or rights or any interest therein, except for contracts for the sale of inventory entered into by Biovest in the ordinary course of business and except
for the stock options held by directors and employees of Biovest reflected in Schedule 3.02 which have been either approved by Accentia or terminated immediately before the Closing. 
  
 3.04 Outstanding Debts of Biovest. Attached as Schedule 3.04 is a list of each Debt in excess of $1,000, which is
outstanding and due by Biovest as of the date reflected on Schedule 3.04. Schedule 3.04 reflects the name of each debtor and the principal amount due and payable. At the Closing, Biovest, with respect to such Debts will have no outstanding unpaid
debts, or obligations including accruals except those described on Schedule 3.04. Except as otherwise agreed, Schedule 3.04 shall reflect that the following debts and obligations shall be fully paid or otherwise eliminated concurrently with or as
soon as is practicable after the Closing out of the cash provided by the Purchase Price: (i) certain notes listed on Schedule 3.04 payable including but not limited to convertible notes, (ii) all accrued liabilities, including but not limited to
accrued compensation and expenses to employees, and (iii) all payables which arose in the 
  

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 ordinary course of business and which are due and have been due for sixty days or more. Schedule 1.02 specifies the
debts, accruals and obligations to be paid at closing from the Purchase Price. 
  
 3.05 Outstanding Material Contracts. Biovest is subject to no Material Contracts which shall survive the Closing, except those fully disclosed on Schedule 3.05. No Material Contract listed on Schedule 3.05 is
in default on the part of Biovest or, to the knowledge of Biovest, on the part of any other party thereto except as set forth in Schedule 3.05. Except as set forth in Schedule 3.05, Biovest is in full compliance with all material terms of each of
such Material Contract. Except as set forth in Schedule 3.05, Biovest has received no notice of default, deficiency or termination under any Material Contract listed on Schedule 3.05 and Biovest knows of no fact which, but for the passage of time,
is reasonably likely to constitute a breach or default under any such contract. 
  
 3.06 Governmental Filings and Reports. Except as otherwise set forth on Schedule 3.06, Biovest has timely filed all reports and other filings required to be made by Biovest with any governmental department,
commission, agency or other governmental body including, but not limited to, the U.S. Securities and Exchange Commission (the “SEC”), the National Institutes of Health (the “NIH”) and The Cooperative Research and Development
Agency (the “CRADA”) to which Biovest is subject (the “Governmental Authorities”). Except as otherwise provided in Schedule 3.06, all reports and filings previously made by Biovest with any Governmental Authority are accurate and
complete in all material respects. Biovest is not in default (and but for the passage of time would not be in default) with any requirement, condition or obligation of any Governmental Authority. 
  
 3.07 Financial Condition. 
  
 3.07.1 Attached hereto as Schedule 3.07 are the audited Financial Statements
as of and for the years ended September 31, 2000, September 31, 2001 and September 31, 2002 (the “Biovest Financial Statements”). The Biovest Financial Statements present fairly Biovest’s financial position as of the respective dates
thereof and its results of operations for the respective fiscal periods then ended, in each case in accordance with Biovest’s past practice and in conformity with GAAP consistently applied during the periods involved. 
  
 3.07.2 Biovest has made and kept books, records and accounts in reasonable
detail, which, to Biovest’s knowledge, accurately and fairly reflect in all material respects its activities and transactions and the purchase and disposition of any of its assets. Except as otherwise disclosed in this Agreement and in the
schedule 3.07, Biovest has not engaged in any material transaction that is not reflected in such books, records and accounts. 
  
 3.07.3 No unrecorded funds or assets of Biovest have been established for any purpose; no accumulation or use of funds of Biovest has been made without
being properly accounted for in the books and records of Biovest; all payments by or on behalf of Biovest have been duly and properly recorded and accounted for in Biovest’s books and records; no false or artificial entry has been made in the
books and records of Biovest for any reason; no payment has been made by or on behalf of Biovest with the understanding that any part of such payment is to be used for any purpose other than that described in the documents supporting such payment;
and Biovest has not made, directly or indirectly, any illegal contributions to any political party or candidate, either domestic or foreign, or any contribution, gift, bribe, rebate, payoff, influence payment or kickback, whether in cash, property
or services, to any individual, corporation, partnership or other entity, to secure business or to pay for business secured. 
  

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 3.07.4 The Financial Statements attached as Schedule 3.07 have been accepted by the Biovest Board of
Directors and all recommended or advised changes, additions or deletions of the Biovest independent accountants have been made in the Financial Statements except as disclosed in Schedule 3.07.4. 
  
 3.07.5 The books, records and accounts of Biovest accurately and fairly
reflect in all material respects the transactions and the assets and liabilities of Biovest. Biovest has not engaged in any transaction with respect to the Biovest business, maintained any bank account for the Biovest business, or used any of the
funds of Biovest in the conduct of the Biovest business, except for transactions, bank accounts and funds which have been and are reflected in the normally maintained books and records of Biovest. 
  
 3.08 Accounts Receivable. Schedule 3.08 lists all Accounts Receivable.
Except as disclosed in Schedule 3.08 all accounts receivable of Biovest (the “Accounts Receivable”): (a) arose from bona fide transactions in the ordinary course of business and (b) are considered collectible, net of the reserves for
doubtful and uncollectible amounts and for returns and allowances shown in the Biovest Financial Statements, within one hundred eighty (180) days after the Closing Date in the ordinary course of business. 
  
 3.09 Accounts Payable. Schedule 3.09 lists all accounts payable.
Except as listed in Schedule 3.09, at Closing Biovest shall have no accounts payable except those which were incurred in the ordinary course of business and have not been due for more than 30 days. Immediately before the Closing Date, Biovest shall
have no obligation to pay accrued compensation or other accrued obligations to any employee, director or stockholder and all compensation expenses including those relating to compensation, vacation, healthcare and mandatory contributions, and
retirement plans shall be paid current through the Closing. 
  
 3.10 Undisclosed Liabilities. Biovest does not have any material liabilities or obligations, whether accrued, absolute, contingent or otherwise, due or to become due, or direct or indirect, arising out of any action or inaction, or
with respect to or based upon transactions or events occurring, or any state of facts or condition existing, in connection with Biovest’s conduct of its business, and, to Biovest’s knowledge, there is no basis for any claim against Biovest
for any such material liability or obligation, except: (i) to the extent specifically described in this Agreement or disclosed in the schedules hereto, (ii) to the extent fully reflected or reserved against in the Biovest Financial Statements, (iii)
for liabilities and obligations arising or incurred in the ordinary course of business under any Contract disclosed on Schedule 3.10 or not required to be disclosed because of the term or amount involved, and (iv) for liabilities and obligations
arising or incurred in the ordinary course of business which will be paid or discharged prior to the due date thereof or at the Closing. At the Closing, to the knowledge of Biovest, Biovest shall have no liabilities or obligations, whether accrued,
absolute, contingent or otherwise, due or to become due, or direct or indirect, arising out of any action or inaction, or with respect to or based upon transactions or events occurring, or any state of facts or condition existing, in connection with
Biovest’s conduct of its business, and, to Biovest’s knowledge, there is no basis for any claim against Biovest for any such material liability or obligation, except as disclosed on Schedule 3.10. 
  

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 3.11 Insurance. Schedule 3.11 lists all policies of general liability insurance setting forth the
insurer, limits of coverage and premium amounts. All listed policies are in full force and effect in accordance with their respective terms. Except as disclosed in Schedule 3.11, no notice of cancellation has been received by Biovest or any other
responsible party, and there is no existing default or event, which, with the giving of notice or lapse of time or both, would constitute a default thereunder. Such insurance policies are, to Biovest’s knowledge, adequate in coverage for the
conduct of Biovest’s business. 
  
 3.12 Employees.

  
 (a) At Closing, except as set forth on Schedule 3.12, all
Biovest’s employee and shareholder obligations, including those to pension, profit sharing, employee withholding, medical benefits, retirement plans and other employee benefit plans, shall be fully funded and in compliance in all material
respects with the requirements of said plans and the requirements of all laws, rules, and regulations applicable to said plans; 
  
 (b) Biovest is not a party to any collective bargaining or similar agreement covering any of its employees. No labor organization or group of employees of
Biovest has made a demand for recognition, has filed a petition seeking a representation proceeding, or given Biovest notice of any intention to hold an election of a collective bargaining representative. Biovest has not suffered any strike,
slowdown, picketing or work stoppage by any group of employees affecting Biovest’s business; 
  
 (c) Biovest is in compliance in all material respects with all rules and requirements of a safe workplace including, but not limited to, those imposed by
OSHA and by applicable state regulatory agencies; 
  
 (d) Except
as disclosed in Schedule 3.12, Biovest has complied in all material respects with all applicable laws relating to employment, including, without limitation, the provisions thereof relating to wages, hours, equal opportunity collective, bargaining,
age, pregnancy, disability, sex, race, national origin and other forms of unlawful discrimination, the WARN Act, and the payment or withholding of all salary and wages, employee benefits, deferred compensation, incentive compensation, holiday,
vacation, and sick pay, unemployment compensation, workers’ compensation, withholding of taxes, FICA, FUTA or SUTA obligations, employee health or life insurance, hospitalization, savings, severance pay, disability, relocation, and similar
obligations; 
  
 (e) Except as set forth in Schedule 3.12 hereto,
Biovest is not indebted to any employee except for amounts due as normal salaries, wages, or reimbursement of ordinary business expenses, and no employee is indebted to Biovest; and 
  
 (f) Except as set forth on Schedule 3.12, Biovest does not, and do not have any obligation to, maintain or contribute to any
employee benefit plan. No event has occurred, and to Biovest’s knowledge, there exists no condition or circumstances, in connection with which Biovest or Accentia could be subject to any liability under the terms of any employee benefit plan of
Biovest, ERISA, or the Internal Revenue Code or any other applicable law with respect to any employee benefit plan, which would have a material adverse effect on the Biovest business. The execution, delivery and performance of this Agreement will
not result in any: (i) increase in the compensation or benefits otherwise payable under any employee benefit plan of Biovest or pursuant to any agreement with respect to any employee of Biovest; (ii) acceleration 
  

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 of the time of payment or vesting of any such compensation or benefits due to any employee of Biovest; or (iii) renew or
extend the term of any agreement regarding compensation of an employee of Biovest, which in the case of (i), (ii) or (iii) above, would create any liability to Biovest or Accentia after the Closing Date. No payment or benefit that may be made by
Biovest with respect to any employee of Biovest will be classified as an “excess parachute payment” within the meaning of Section 280G of the Internal Revenue Code. Except for benefits accrued or accruing in accordance with the terms of
any employee benefit plan, Biovest has no liability for any benefit which has been or could be claimed as a result of any event occurring prior to the Closing under any employee benefit plan or any workers’ compensation or similar Law (i) which
is not fully covered by insurance, or (ii) if not so insured, for which Biovest has not established an adequate reserve in the Biovest Financial Statements. Except as set forth in Schedule 3.12, to Biovest’s knowledge, no validity review or
program integrity review related to Biovest has been conducted by any governmental authority in connection with the Programs and no such review, audit or audit assessment is scheduled, pending or threatened against Biovest, its business or assets.

  

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 3.13 Intellectual Property. 
  
 (a) Schedule 3.13 is a summary including patent number, status and brief description of invention and claims of all
intellectual property owned or licensed by Biovest. Except as disclosed on Schedule 3.13, Biovest owns all of the intellectual property and proprietary rights currently used, or required to be used, by Biovest in the operation of the Biovest
business. 
  
 (b) To the knowledge of Biovest, except as set forth
on Schedule 3.13, the Intellectual Property described in Schedule 3.13 shall, at the Closing, be owned or licensed exclusively and solely by Biovest subject to no debt, lien or encumbrance of any third party, except as indicated therein. Schedule
3.13 lists all licenses except licenses to off-the-shelf software, that have been granted by with regard to the patents and patent applications listed on Schedule 3.13. Except for the licenses identified on Schedule 3.13, no licenses have been
granted and no third party has any right to utilize the inventions covered by the patent and patent applications listed in Schedule 3.13. 
  
 (c) Biovest does not know nor does it have reasonable grounds to know of any basis for any action challenging the enforceability or validity of the
Biovest Intellectual Property listed in Schedule 3.13 or claiming infringement by the Intellectual Property upon the rights of any third party. Biovest has received no notice of contest or claim regarding any patent or patent application listed and
Biovest knows of no defect or defense with regard to any listed patent or patent application. 
  
 (d) To the knowledge of Biovest, each of the patent applications that have been submitted by Biovest was accurate and truthful and contained no material misrepresentations of fact. 
  
 (e) Schedule 3.13 describes all royalty or other payment obligations to which
Biovest or its Intellectual Property is subject to with regard to its Intellectual Property. Schedule 3.13 lists every person or entity, including, but not limited to, current and past employees, that has a right to claim an interest in or to the
Intellectual Property of Biovest. No patent or patent application listed on Schedule 3.13 requires the payment of any royalty or other fee by Biovest except such payments as are listed on Schedule 3.13. 
  
 (f) Schedule 3.13 lists all tradenames and trade marks utilized by Biovest.

  
 (g) Biovest does not require any licenses from any third
parties to conduct its current or planned business or execute its business plan, except those that are listed on Schedule 3.13. 
  
 3.14 Business Plan. Attached as Schedule 3.14 is the Offering Document which has been delivered by Biovest to Accentia. Biovest represents that the
Offering Document, except for the associated financial projections, is materially accurate in its description of the Intellectual Property of Biovest and its plans to commercialize same, in each case as of the date of the Offering Document. Biovest
represents that the assumptions relied upon in making the financial projections included as part of the Business Plan are believed by Biovest to be reasonable and that the financial projections represent financial goals of Biovest that are believed
to be reasonable. 
  

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 3.15 Litigation and Government Compliance. There are no actions, suits, proceedings or
governmental investigations pending or, to the best of Biovest’s knowledge, threatened against or affecting either Biovest or the business of Biovest except as set forth on Schedule 3.15, and Biovest is not in violation of or in default under
any order, rule or regulation of any governmental agency or branch which, in any case, involves the possibility of materially and adversely affecting the business or condition of Biovest except as set forth on Schedule 3.15. 
  
 3.16 Corporate Records. The Certificate of Incorporation of Biovest,
as amended through the date hereof, its Bylaws and Minutes contained in the Minute Book of Biovest constitute the existing Certificate of Incorporation, as amended, Bylaws and records of proceedings of Biovest. The Certificate of Incorporation and
Bylaws of Biovest are attached as Schedule 3.16. 
  
 3.17
Absence of Certain Developments. Since December 31, 2002, and except as expressly required by this Agreement or otherwise disclosed in or reserved for in the Biovest Financial Statements, this Agreement, or the schedules hereto, including
Schedule 3.17, Biovest has not: 
  
 3.17.1 Incurred any
liabilities, other than liabilities incurred in the ordinary course of business or related to the Transaction, or discharged or satisfied any lien or encumbrance or paid any liabilities, other than in the ordinary course of business, or failed to
pay or discharge when due any liabilities of which the failure to pay or discharge has caused or would reasonably be expected to cause any material damage or risk of material loss; 
  
 3.17.2 Sold, assigned or transferred any assets or properties, or closed any operations, except for the sale of inventory
and for the disposition of assets in the ordinary course of business which are worn-out, in need of substantial repair, or are obsolete and which do not have a market value in excess of $10,000 in the aggregate for all such assets and properties;

  
 3.17.3 Created, incurred, assumed or guaranteed any
indebtedness for borrowed money, or mortgaged, pledged or subjected any of its assets or properties to any mortgage, lien, pledge, security interest, conditional sales contract or other encumbrance of any nature whatsoever in an aggregate amount
exceeding $10,000, other than in the ordinary course of business; 
  
 3.17.4 Made or suffered any material amendment or termination of any Contract to which it is a party or by which it is bound, or canceled, modified or waived any material debts or claims held by it or waived any rights of material value not
in the ordinary course of business; 
  
 3.17.5 Suffered any
damage, destruction or loss, whether or not covered by insurance, of any item or items carried on its books of account individually or in the aggregate at more than $5,000 or suffered any repeated, recurring or prolonged shortage, cessation or
interruption of supplies or utilities or other services required to conduct its operations; 
  
 3.17.6 Suffered any material adverse effect not in the ordinary course of its business; 
  
 3.17.7 Received notice or obtained knowledge of any actual or threatened labor trouble, strike, union organizing efforts, or other occurrence, event or
condition of any similar character; 
  

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 3.17.8 Made any acquisition of substantial assets or any commitments or agreements for capital
expenditures or capital additions or betterments exceeding $10,000 individually or in the aggregate, except such as may be involved in ordinary repair, maintenance or replacement of assets in the ordinary course of business; 
  
 3.17.9 Other than in the ordinary course of business consistent with past
practices, increased the salaries or other compensation of, or made any advance (excluding advances for ordinary and necessary business expenses) or loan to, any of its employees or made any increase in, or any addition to, other benefits to which
any of its employees may be entitled; 
  
 3.17.10 Entered into or
amended any contract with any of its affiliates; 
  
 3.17.11
Except in the ordinary course of business and consistent with past practice, or as permitted herein, made any distributions to its stockholders; or 
  
 3.17.12 Entered into any transaction other than in the ordinary course of business. 
  
 3.19 Tax Matters. Other than as set forth on Schedule 3.19 hereto, (a) all tax returns that Biovest was or is
required to file on or prior to the Closing have been duly filed on a timely basis (after giving effect to any applicable extensions) and all taxes indicated thereon have been timely paid; (b) all tax returns that Biovest is or will be required to
file after the Closing Date, with respect to periods prior to the Closing Date, will be timely filed and all taxes reflected thereon will be timely paid; (c) none of Biovest’s assets is subject to any lien (other than a permitted lien) for
payment of any unpaid taxes or levy proceedings; (d) all taxes which Biovest is or was required by law to withhold or collect have been duly withheld or collected, and have been timely paid over to the proper taxing authorities to the extent due and
payable; (e) Biovest is not a party to any Contract that would require it to make any payment that would constitute an “excess parachute payment” for purposes of Sections 280G and 4999 of the Code; (f) Biovest is not a “foreign
person” as such term is defined in the Code; (g) Biovest does not have any express or implied obligation (including, but not limited to, an indemnification obligation) with respect to the payment of taxes for any person other than Biovest; and
(h) Biovest has not received any notice of any additional assessments since the date of any tax return nor has Biovest received any notice of any audit or review of such tax returns. 
  
 3.20 Securities Matters. Attached as Schedule 3.20 is a list of all Press Releases issued by Biovest since January 1,
2000. All Press Releases were materially accurate when issued. Attached as Schedule 3.20(a) is a list of all securities offered or sold by Biovest since January 1, 2000 identifying the name of the purchaser, the exemption relied upon and providing a
description of the offering pursuant to which the securities were sold. 
  
 3.21 Real Property. Biovest owns no real property. With respect to the real property leased by Biovest as of the date hereof (the “Leased Biovest Property”), Schedule 3.21 sets forth the following: (i) the description of
the Leased Biovest Property, including estimated total square footage, (ii) the name of the Lessor thereof, the lease rate and term and (iii) whether such Leased Biovest Property is currently being used for the operation of Biovest. Except as set
forth on Schedule 3.21: (i) the lease for the Leased Biovest Property is in full force and effect and is valid, binding and enforceable in accordance with its terms, (ii) all accrued and currently payable rents and other payments required by such
lease have been paid, (iii) Biovest and each other party thereto have complied with all covenants and provisions of such lease in all material respects, 

  

 14 

 
(iv) neither Biovest nor any other party is in default in any material respect under such lease, (v) no party has asserted any defense, set off, or counter
claim thereunder, (vi) no waiver, indulgence or postponement of any obligations thereunder has been granted by any party, and (vii) the validity or enforceability of such lease will be in no way affected by the Transactions. 
  
 3.22 Title to and Condition of Assets; Necessary Property. 

 
 3.22.1 Set forth on Schedule 3.22.1 is a true, correct, and complete list
of all liens on the assets of Biovest as of the date hereof. No person other than Biovest owns, leases or has any right, title or interest in and to any Biovest assets. 
  
 3.22.2 Biovest’s tangible properly is in good working order and repair, reasonable wear and tear accepted, has been
maintained and repaired on a regular basis so as to preserve its utility and value, is usable in the ordinary course of business, and conforms in all material respects to all applicable laws relating to its construction, use and operation.

  
 3.22.3 Except as disclosed in Schedule 3.22.3, Biovest’s
assets constitute all of the assets and properties, whether real or personal, tangible or intangible, or owned, leased, or licensed, that are used or useful in the conduct of Biovest’s business in the manner and to the extent presently
conducted by Biovest. No other asset or property, whether real or personal, tangible or intangible, or owned, leased, or licensed, is required for the conduct of the Biovest business in the manner and to the extent presently conducted by Biovest.

  
 3.23 Licenses and Permits. Biovest possesses all licenses,
permits, consents, concessions and other authorizations of Governmental Authorities that are required to own Biovest’s assets, to sell and service any inventory of Biovest, or to otherwise conduct the Biovest business as presently conducted.
Schedule 3.23 hereto sets forth a list of each such license, permit, consent, concession or other authorization so possessed. To Biovest’s knowledge, nothing contemplated in the transaction described herein will cause any of the licenses,
permits, consents, concessions and other authorizations to be revoked by any such Governmental Authority. 
  
 3.24 Environmental Matters. 
  
 3.24.1 At all times prior to the Closing, Biovest has complied and at the Closing will be in compliance, in all material respects, with all Environmental
Laws, and Biovest has not received any notice, report, or information (including information that any litigation, investigation or administrative or other proceedings of any kind are pending or threatened) regarding any liabilities (whether accrued,
absolute, contingent, unliquidated, or otherwise), or any corrective, investigatory, or remedial obligations, arising under Environmental Laws. For the purposes of this Agreement, the term “Environmental Laws” means all present
governmental requirements relating to the discharge or release of air pollutants, water pollutants, process waste water, petroleum products or hazardous substances, including, but not limited to, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, the Occupational Safety and Health Act of 1970, as amended, the Federal Resource Conservation and Recovery Act, as amended, the Federal Clean Water Act, as amended, the Toxic Substances Control
Act, as amended, the Federal Clean Air Act, as amended, the Superfund Amendments and Reauthorization Act, as amended, and any and all other comparable state or local Laws relating to public health and safety or work health and safety. 
  

 15 

 3.24.2 No Hazardous Substances have been, or are currently, located at, in, or under or emanating from
the Leased Biovest Property or other Biovest assets in a manner which: (i) violates any applicable Environmental Laws, or (ii) requires response, remedial, corrective action or cleanup of any kind under any applicable Environmental Law. For purposes
of this Agreement, the term “Hazardous Substances” has the meaning set forth in Section 101(14) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, in the Federal Resource Conservation and
Recovery Act, as amended, and applicable state Laws, and shall also expressly include petroleum, crude oil and any fraction thereof. 
  
 3.25 Brokers’ Fees. Except as otherwise disclosed on Schedule 3.25, neither Biovest nor any person on Biovest’s behalf has retained any
broker, finder or agent or agreed to pay any brokerage fee, finder’s fee, commission or other payment with respect to the transactions contemplated by this Agreement. 
  
 3.26 Subsidiaries. Biovest has no subsidiaries. 
  
 3.27 CRADA. Attached as Exhibit 3.27 is a copy of the CRADA. Except as set forth in Exhibit 3.27: (i) the CRADA is in
good standing, (ii) Biovest is in full compliance with all material terms and requirements of the CRADA, (iii) Biovest has not received any notice of default or non-compliance of or with the CRADA, and (iv) Biovest has no reason to believe that it
may be in default or non-compliance, with the CRADA. 
  
 3.28
All Material Information. No representation or warranty made by Biovest in this Agreement, including the attached schedules, and no statement contained in any certificate or other instrument furnished to Accentia as required herein contains
any untrue statement of a material fact or omits to state any material fact necessary in order to make any statement therein not misleading. 
  
 ARTICLE IV 
 Representations,
Warranties and Agreements of Accentia 
  
 Accentia, intending
Biovest and its officers and. directors to rely thereon, represents, warrants and agrees as follows: 
  
 4.01 Corporate Standing. Accentia is a duly organized, validly existing corporation in good standing under the laws of the State of Florida.
Accentia has full corporate power and authority to own its assets and operate its business in the manner that such business is presently being conducted. Accentia is qualified to transact business in the State of Florida, and Accentia’s
activities do not require that it qualify to transact business in any other state. Accentia has all governmental permits, licenses and other authorizations necessary to conduct its business as presently being conducted, and none of the transactions
contemplated by this Agreement will terminate or violate any such permits, licenses or authorizations. 
  
 4.02 Power to Agree. 
  
 (a) The execution and delivery of this Agreement and the consummation of the Transaction and compliance with the terms of this Agreement will not result
in a breach of any of the terms or provisions of, or constitute a default under, the Articles of Incorporation or Bylaws of Accentia, any indenture or other agreement or instrument to which Accentia is a party or by which it or its assets are bound;
or any applicable regulation, judgment, order or decree of any government instrumentality or court, domestic or foreign, having jurisdiction over Accentia, its securities or its properties. 
  

 16 

 (b) The execution, delivery and performance of this Agreement and the Transaction do not require the
consent, authority or approval of any other person or entities except such as have been obtained. 
  
 (c) The entering into of this Agreement and the performance thereof has been duly and validly authorized by all required corporate action and does not
require any consents other than such as have been unconditionally obtained. 
  
 4.03 Omitted 
  
 4.04
Brokers. Accentia has not engaged any broker in connection with this transaction. 
  
 4.05 Accuracy of Deliveries. This Agreement, all Schedules to this Agreement and all documents to be delivered by Accentia at the Closing in connection with this transaction are true and correct. 
  
 4.06 Sophisticated Investor. Accentia is a sophisticated investor and
is experienced in evaluating high risk investments such as the investment contemplated by this Agreement. Accentia has knowledge and experience in financial and business matters and is capable of evaluating the merits and risks of Accentia’s
prospective investment in Biovest. Accentia has the ability to bear the economic risks of the investment. Accentia has been furnished access to information and documents as it has requested and has been afforded an opportunity to ask questions and
expect answers from representatives of Biovest concerning the terms and conditions of this Agreement. Accentia has relied upon its own investigation, together with this Agreement, and representations and warranties contained herein, in determining
to purchase shares of the Capital Stock of Biovest under this Agreement. 
  
 4.07 Outstanding Equity Securities. Schedule 4.07 attached hereto and incorporated herein by reference lists: (i) each authorized class of Equity Securities and the number of shares outstanding shares and (ii)
each option, warrant or right or other obligation of any nature to issue shares of Accentia Capital Stock. All shares of outstanding Capital Stock reflected as issued on Schedule 4.07 are duly and validly issued and are fully paid and
non-assessable. 
  
 4.08 Financial Condition. Attached
hereto as Schedule 4.08 are the unaudited Financial Statements as of and for the year ended August 31, 2002 (the “Accentia Financial Statements”). The Accentia Financial Statements present fairly Accentia’s financial position as of
the date thereof and its results of operations for the fiscal period then ended in conformity with GAAP. It is noted that subsequent to August 31, 2002, Accentia entered into pending and/or completed material transactions. In the exercise of its
reasonable business judgment, Accentia has access to sufficient cash to enable it to close this Agreement. 
  
 4.09 Undisclosed Liabilities. Accentia does not have any material liabilities or obligations, whether accrued, absolute, contingent or otherwise,
due or to become due, or direct or indirect, arising out of any action or inaction, or with respect to or based upon transactions or events occurring, or any state of facts or condition existing, in connection with Accentia’s conduct of its
business, and, to Accentia’s knowledge, there is no basis for any claim against Accentia for any such material liability or obligation, except: (i) to the extent specifically described in this Agreement or disclosed in the schedules hereto,
(ii) to the extent fully reflected or reserved against in the Accentia Financial Statements, (iii) for liabilities and obligations 
  

 17 

 arising or incurred in the ordinary course of business, and (iv) for liabilities and obligations arising or incurred in
connection with acquisitions or other business relationships, whether existing or contemplated, in connection with the conduct or expansion of the business of Accentia. 
  
 4.10 Insurance. Schedule 4.10 lists all policies of general liability insurance setting forth the insurer, limits of
coverage and premium amounts. All listed policies are in full force and effect in accordance with their respective terms. Except as disclosed in Schedule 4.10, no notice of cancellation has been received by Biovest or any other responsible party,
and there is no existing default or event, which, with the giving of notice or lapse of time or both, would constitute a default thereunder except as reflected on Schedule 4.10. 
  
 4.11 Litigation and Government Compliance. There are no actions, suits, proceedings or governmental investigations
pending or, to the best of Accentia’s knowledge, threatened against or affecting either Accentia or the business of Accentia except as set forth on Schedule 4.11, and Accentia is not in violation of or in default under any order, rule or
regulation of any governmental agency or branch which, in any case, involves the possibility of materially and adversely affecting the business or condition of Accentia except as set forth on Schedule 4.11; 
  
 4.12 Tax Matters. Other than as set forth on Schedule 4.12 hereto, (a)
all tax returns that Accentia was or is required to file on or prior to the Closing have been duly filed on a timely basis (after giving effect to any applicable extensions) and all taxes indicated thereon have been timely paid; (b) all tax returns
that Accentia is or will be required to file after the Closing Date, with respect to periods prior to the Closing Date, will be timely filed and all taxes reflected thereon will be timely paid; (c) none of Accentia’s assets is subject to any
lien (other than a permitted lien) for payment of any unpaid taxes or levy proceedings; (d) all taxes which Accentia is or was required by law to withhold or collect have been duly withheld or collected, and have been timely paid over to the proper
taxing authorities to the extent due and payable; (e) Accentia is not a party to any Contract that would require it to make any payment that would constitute an “excess parachute payment” for purposes of Sections 280G and 4999 of the Code;
(f) Accentia is not a “foreign person” as such term is defined in the Code; (g) Accentia does not have any express or implied obligation (including, but not limited to, an indemnification obligation) with respect to the payment of taxes
for any person other than Accentia; and (h) Accentia has not received any notice of any additional assessments since the date of any tax return nor has Accentia received any notice of any audit or review of such tax return 
  
 4.13 Material Information. No representation or warranty made by
Accentia in this Agreement, including the attached schedules, and no statement contained in any certificate or other instrument furnished to Biovest as required herein contains any untrue statement of a material fact or omits to state any material
fact necessary in order to make any statement therein not misleading, 
  
 4.14 Interpretation; Survival of Warranties. The foregoing representations, warranties and agreements shall be true and correct as of the Closing Date. Each representation, warranty and agreement shall survive the Closing. None of
such representations, warranties and agreements contain or shall contain, as of the Closing Date, any false or misleading statement of a material fact or omit, as of the Closing Date, to state any material fact necessary in order to make the
representations, warranties and agreements not misleading. 
  

 18 

 ARTICLE V 
 Covenants 
  
 5.01
Covenants of Biovest. Biovest shall: 
  
 (a) Pending the
Closing, carry on its business in substantially the same manner as heretofore carried on; 
  
 (b) Pending the Closing, Biovest shall maintain, in all material respects, compliance with all governmental rules and regulations applicable to its business; 
  
 (c) Pending the Closing, not sell, mortgage, pledge, subject to lien or
otherwise encumber or dispose of any of its assets, except in the ordinary course of business, and not engage in any transaction other than in the ordinary course of business, without the written consent of Accentia, which will not be unreasonably
withheld or delayed; 
  
 (d) Pending the Closing, maintain its
fixed assets and its operating assets in a good and operating state of repair, order and condition, reasonable wear and tear and damage by fire or other casualty excepted; 
  
 (e) Pending the Closing, maintain its books, accounts and records in accordance with generally accepted accounting
principles consistently applied; 
  
 (f) Pending the Closing,
maintain in full force and effect insurance comparable in amount and scope of coverage to that which is now maintained; 
  
 (g) Pending the Closing, perform, in all material respects, all of its existing obligations relating to or affecting its assets, properties and business
in the same manner as heretofore performed; 
  
 (h) Pending the
Closing, use its best efforts to maintain and preserve its business organizations intact and retain its present employees so that they will be available after the Closing Date; 
  
 (i) Pending the Closing, not increase any salary or other form of compensation payable to, or to become payable to, any of
the employees of Biovest; 
  
 (j) Pending the Closing, not pay or
accrue any bonuses; 
  
 (k) Pending the Closing, except as
contemplated by this Agreement, not issue any Equity Securities or debt securities without the prior written consent of Accentia; 
  
 (l) Pending the Closing, Biovest shall stand still and conduct or engage in, either directly or indirectly, no negotiations or discussions of any nature
with any potential investor by or financial source other than Accentia or Hopkins Capital Group until the Closing Date or any extension thereof as provided in Section 6.01 (the “Standstill Period”); 
  
 (m) Immediately before the Closing, Biovest shall have the following officers
and directors which shall be duly elected or appointed: 
  

			
	OFFICERS:	  	Frank O’Donnell, M.D., Chairman (Executive Officer)
	 	  	Christopher Kyriakides, M.D., Vice Chairman
	 	  	Stephane Allard M.D. President and CEO
	 	  	James McNulty, CFO

  

 19 

			
	DIRECTORS	  	Frank O’Donnell, M.D.
	 	  	Peter Pappas
	 	  	Raphael Mannino, PhD
	 	  	Steve Arikian, M.D.
	 	  	Martin Baum
	 	  	Chris Chapman, M.D.
	 	  	Stephane Allard, M.D.
	 	  	Christopher Kyriakides, M.D.

  
 (n) Following Closing,
Biovest shall amend its Articles of Incorporation to establish, and at all times thereafter shall maintain, a sufficient number of shares of authorized but unissued common stock required to enable Biovest to comply with this Agreement, including but
not limited to, the Accentia First Right of Refusal. 
  
 (o) Prior
to the Closing, Biovest shall, in a fashion acceptable to Accentia, cause all accrued executive compensation owed by Biovest through the date of the Closing of this Agreement to be satisfied through the issuance of convertible notes having the
following terms and conditions: (i) the payment date for all principal and accrued interest shall be in one installment on the fourth anniversary of Closing; and (ii) the convertible note shall bear interest at 7% per annum, accrued through payment
of principal; and (iii) conversion rights which allow the holder, at the payment date, or earlier with consent of Accentia, to either: (a) convert all principal and accrued interest into common stock of Accentia with the number of shares of Accentia
Common Stock being established at the Accentia Common Stock value as provided in Section 1.01 for outstanding convertible notes, or in the alternative; (b) convert all principal and accrued interest into shares of common stock of Biovest as provided
in Section 1.01 for outstanding convertible notes. 
  
 (p) Biovest
shall give the holder of each outstanding convertible note currently outstanding, the opportunity to modify the terms of their notes to be consistent with the terms of the new convertible notes described in subparagraph (o) above. This opportunity
to modify the terms of outstanding convertible notes shall terminate and be of no continuing effect following the Closing of this Agreement. 
  
 5.02 (a) Covenants of Accentia. Shares of Biovest acquired by Accentia hereunder shall not be sold into the public market until twelve months
following the Commencement of Public Trading of Biovest shares pursuant to Section 1.05. 
  
 ARTICLE VI 
 Closing 
  
 6.01 Time and Place of Closing. The Closing shall take place no later than sixty (60) days from the execution of this
Agreement (the “Closing”). The Closing shall occur at such place as the parties may mutually agree. 
  
 6.02 Items to be Delivered at the Closing. At the Closing, and subject to terms and conditions of this Agreement: 
  
 (a) Biovest shall deliver or cause to be delivered to Accentia the
following: 
  
 (i) Certificates representing the common stock
being purchased by Accentia pursuant to Section 1.01 and 1.02 hereof, fully executed and in form and substance reasonably acceptable to Accentia and its counsel; 
  

 20 

 (ii) Certified copy of the Meeting of the Board of Directors of Biovest establishing the officers and
directors required by Section 5.01(o). 
  
 (iii) Certified copy
of the minutes of Minutes of the meeting of the Board of Directors of Biovest, reflecting the consent to and approval of this Agreement and of all actions required by this Agreement; 
  
 (iv) Certificate of Good Standing reflecting that Biovest is an active corporation in its state of incorporation;

  
 (v) Any and all other documents which may be reasonably
requested by Accentia to effectuate and perfect the transaction contemplated by this Agreement; 
  
 (vi) Legal opinion of counsel for Biovest in the form attached hereto as an Exhibit; 
  
 (vii) A list of all Biovest employees which shall continue, or are contemplated to continue, as employees of Biovest
immediately following the Closing; 
  
 (viii) A list of all
accruals due and payable to Biovest past or current employees, directors or shareholders immediately following the Closing; 
  
 (ix) A list of all Biovest options, warrant and rights to acquire Biovest stock which shall remain outstanding immediately following the Closing; and

  
 (b) Accentia shall deliver or cause to be delivered, the
following documents to Biovest at the Closing: 
  
 (i) Accentia
certified check, wire or verification of direct payment pursuant to Schedule 1.01 in the amount of the Purchase Price as provided in Section 1.01 hereof; 
  
 (ii) Certified Resolution of the Board of Directors of Accentia authorizing this Agreement and all actions required by this Agreement; 
  
 (iii) Any and all other documents which may be reasonably requested by
Biovest to effectuate and perfect the transaction contemplated in this Agreement; and 
  
 (iv) Legal opinion of counsel for Accentia in the form attached hereto as an Exhibit. 
  
 (v) Letter of Investment Intent required by Section 1.04. 
  
 ARTICLE VII 
 Conditions - Obligations
of Parties 
  
 7.01 Conditions to Obligations of
Accentia. The obligations of Accentia hereunder are subject to the conditions (any of which may be waived in writing by Accentia) that, on the Closing Date: 
  
 (a) The representations and warranties on the part of Biovest made herein shall be true and correct, in all material
respects, as of the date hereof and as of the Closing Date with the same force and effect as if made on the Closing Date, other than representations and warranties that speak of a specific date or time (which need be true and correct as of such date
or time) and Biovest shall not have materially breached any of its obligations under this Agreement; 
  

 21 

 (b) Biovest shall have substantially performed and complied with all the material agreements, covenants
and conditions required by this Agreement to be performed and complied with by it; and 
  
 (c) Completion of due diligence examination of the Biovest Schedules and information required therein to the satisfaction of Accentia, 
  
 7.02 Conditions and Obligations of Biovest. The obligations of Biovest hereunder are subject to the conditions (any
of which may be waived in writing) on the Closing Date: 
  
 (a)
All material representations and warranties on the part of Accentia made herein shall be true and correct, in all material respects, as of the date hereof and as of the Closing Date, with the same force and effect as if made on the Closing Date,
other than representations and warranties that speak of a specific date or time (which need be true and correct as of such date or time) and Accentia shall not have materially breached any of its obligations under this Agreement; and 
  
 (b) Accentia shall have substantially performed and complied with all the
material agreements, covenants and conditions required by this Agreement to be performed and complied with by them. 
  
 ARTICLE VIII 
 General 
  
 8.01 Assignability. This Agreement shall be binding upon and shall
inure to the benefit of the successors and assigns of the Parties hereto. 
  
 8.02 Applicable Law. This Agreement shall be construed in accordance with the laws of the state of Delaware. 
  
 8.03 Survival of Representations, Warranties and Agreements. All representations, warranties, covenants, undertakings and agreements made herein
shall survive the Closing, notwithstanding any custom or law to the contrary and notwithstanding the delivery of the Biovest Common Stock and the acceptance thereof. No oral representations or warranties shall survive Closing and all such oral
representations and warranties shall be merged into the Closing. 
  
 8.04 Headings. All paragraph headings herein are inserted for the convenience of the parties only and are not a part of and shall not in any way modify or affect the construction or interpretation of any of the provisions of this
Agreement. 
  
 8.05 Counterparts. This Agreement may be
executed in more than one counterpart, each of which shall be deemed to be an original and which together shall constitute one and the same instrument. 
  
 8.06 Construction. Except where the context otherwise requires, words in the plural numbers include the singular thereof, and vice versa, and words
of the male gender shall include the female and neuter gender and vice versa. 
  

 22 

 This Agreement shall be deemed to have been prepared mutually by all parties and shall not be construed
against any particular party as the draftsman. 
  
 8.07
Schedules. All Schedules required by this Agreement shall be exchanged by the parties no later than 15 calendar days following the date of this Agreement. Schedules are incorporated as material terms and provisions of the Agreement.
Disclosures made in an Schedule are deemed to have been made in and for the purposes of all Schedules, and omissions from any particular Schedule shall not be deemed a breach of warranty or representation to the extent the relevant information is
contained in one or more other Schedules attached hereto. 
  
 8.08
Notices. Any notice, request or instruction to be given hereunder by any party to any other shall be in writing delivered personally or sent by certified mail to the address or telecopy number set forth below: 
  

			
	Accentia:	    	Accentia, Inc.
	 	    	5310 Cypress Center Drive, Suite 101
	 	    	Tampa, Florida 33609
	 	    	Fax: (813) 287-6643
		
	Copy To:	    	 
	 	    	Samuel S. Duffey
	 	    	416 Burns Court
	 	    	Sarasota, Florida 34236
	 	    	Fax: (941) 954-5825
		
	Biovest:	    	 
	 	    	Biovest International, Inc.
	 	    	540 Sylvan Avenue
	 	    	Englewood Cliffs, NJ 07632
		
	Copy to:	    	 
	 	    	Robert H. Cohen
	 	    	Morrison Cohen Singer & Weinstein, LLP
	 	    	750 Lexington Avenue
	 	    	New York, NY 10022
	 	    	Fax: (212) 735-8708

  
 (n) 8.09 Letters of
Intent. All prior Letters of Intent, Deal Points or Outlines and other communication or correspondence concerning the subject matter of this Agreement are superseded by this Agreement and are merged into this Agreement and shall not survive the
Closing of this Agreement. 
  

 23 

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

			
	 ACCENTIA, INC.

		
	 By:
	 	 /s/    Francis E. O’Donnell

	 Its:
	 	 Chairman

	
	 BIOVEST INTERNATIONAL, INC.

		
	 By:
	 	 /s/    Christopher Kyriakides

	 Its:
	 	 Chairman

  

 24 

 AMENDMENT TO INVESTMENT AGREEMENT 
  
 BETWEEN ACCENTIA, INC. AND BIOVEST INTERNATIONAL, INC. 
  
 This document dated June 16, 2003 (the “Amendment”), sets forth the terms of an Amendment to the Investment Agreement by and
between Accentia, Inc. and Biovest International, Inc., dated April 10, 2003 (the “Agreement”). Except where modified or augmented hereby (and by the terms of that certain escrow agreement dated an even date herewith (the “Escrow
Agreement”), the terms of the Investment Agreement shall remain in full force and effect. This Amendment is entered into for good and valuable consideration in hand received and together with the Agreement (and the Escrow Agreement which terms
are hereby incorporated herein) constitutes the entire understanding of the parlies. 
  

	 	1.	(I) PURCHASE PAYMENT TERMS: Section 1.01 of the Agreement is hereby amended to provide that the purchase price of $20,000,000 shall be paid as follows: (i) cash at closing of
$2,500,000.00, less $530,000 sums advanced to or on behalf of Biovest by Accentia (pursuant to that certain Secured Note dated April 10, 2003 which is hereby satisfied and executed in full) prior to the Closing; (ii) $2,500,000.00 in the form of a
Promissory Note (the “Second Closing Note”) due on the 90 day anniversary of the date hereof bearing interest at a rate of 3% per annum. 

  

and (iii) delivery of a non-interest bearing note for $15,000,000 having the terms as provided in the Agreement (and the certificates evidencing shares of Biovest
Common 
  

 25 

 Stock and Preferred Stock issuable to Accentia in respect of the subscription price therefor) which shall be held in
escrow pursuant to and in accordance with the terms of the Escrow Agreement. 
  
 (II) CLOSING DATE: The date of Closing shall be on the date hereof, or such other date as shall be mutually agreed upon by the parties. 
  
 (III) SHARES TRANSFERRED: Section 1.01 is further amended to reflect that both Accentia and Biovest recognize that there are currently insufficient authorized,
unissued shares of Biovest Common Stock to allow Biovest to transfer to Accentia the 81% stock ownership contemplated by the Investment Agreement. The parties hereby agree that in order to bring Accentia’s equity ownership of Biovest up to the
level of 81% as set forth in the Investment Agreement, Biovest shall, subject to the terms of the Escrow Agreement, issue to Accentia at Closing sufficient shares of Convertible Preferred Stock of Biovest to bring Accentia’s total number of
shares, post conversion, to the 81% level. These Preferred shares shall provide all rights held by common shares together with the right to be converted to Common Stock of Biovest on a 2-for-l basis as soon as additional shares of Common Stock are
authorized by Biovest’s Shareholders at an annual (or special) Shareholder’s Meeting or through such other mechanism as may be available. 
  
 (IV) PETER PAPPAS AND ANGELO TSAKOPOULOS WORKING CAPITAL LOANS. Section 1.01 is further amended to reflect that at Closing the principal and 
  

 26 

 interest of the working capital loans in the approximate principal amount of $460,000 made by Peter Pappas and $250,000
made by Angelo Tsakopoulos to Biovest shall be converted into Convertible Notes having the following terms: (i) all principal and interest shall be paid in one installment on the third anniversary of Closing, subject to prepayment by Biovest upon
thirty days written notice, (ii) the convertible notes shall earn interest at 7% per annum, (iii) the convertible notes, shall at the discretion of the Holder, be convertible into shares of Accentia common stock in accordance with Section 1,01 of
the Agreement with the value per Accentia share being adjusted by a twenty percent (20%) discount from Accentia share value as established in accordance with Section 1.01 of the Agreement or, in the alternative, the convertible notes may be
converted into shares of Biovest common stock in accordance with Section 1.01 of the Agreement with the price per Biovest share adjusted from $0.50 to $0.25 per share. In addition, Biovest shall adjust the exercise price on 200,000 Warrants issued
to Peter Pappas in connection with these loans from $0.50 to $0.25 per share, and shall adjust the exercise price on 100,000 Warrants issued to Angelo Tsakopoulos in connection with this loan from $0.50 to $0.25 per share. 
  
 (V) Satisfaction of Closing Conditions. Accentia hereby acknowledges the satisfaction
by Biovest of all its closing conditions. 
  
 (VI) Expenses. Following
closing a current employee of Accentia, Julian Casciano, will serve as a full time employee of Biovest and, at Accentia’s discretion, his compensation as set forth in his agreement as amended from time to time with Accentia shall-either be

  

 27 

 paid directly by Biovest to the employee or reimbursed to Accentia should Accentia elect to directly compensate the
employee. Appropriate reimbursement shall be made by Biovest for any additional employees of Accentia that devote full or significant time to the services for Biovest. Additionally, fees and expenses in the approximate amount of $50,000 for the
legal services of Samuel Duffey, Esq. incurred by Accentia in connection with this Agreement and the Closing shall be reimbursed by Biovest. 
  
 (VII) Convertible Notes. The terms of the election options available to the convertible noteholders shall be adjusted as follows:

  

	 	A.	Option 1 shall be to simply hold their existing Note, “as is” and be paid in accordance with its terms upon maturity. These notes shall remain unsecured;

  

	 	B.	Option 2 shall be to elect to accept the extended term as set forth in the current from of “Unsecured Exchange Note”, except that these Notes shall become SECURED as set
forth in the current version of the “Secured Exchange Note” contained in our original package. In addition, these notes will retain their original issuance date and face amounts, so as to allow the holders to comply with the “holding
period” requirements in SEC regulations in the event of conversion of this debt to equity. The Holders of these notes shall retain any Warrant holdings they obtained in connection with these Notes, or any previous extension thereof.

  

 28 

	 	C.	Andrew Alexander Wise shall be offered a repricing of the Warrants issued to them in connection with obtaining this Bridge Loan financing to a price of $0.50 on Warrants currently
priced at $1.50 and $0.25 on Warrants currently priced at $1.25, so long as at least 60% of the Convertible Noteholders decide to accept Option 2. This repricing will be disclosed in the form of the new Note to be drafted for those electing Option
2. 

  
 VIII. Certain Accrued Compensation. At the
Closing, Othon Mourkakos shall tender his resignation as Director of Biovest, and shall further tender his resignation as President/COO of the Biovest. 
  
 At the Closing, Dr. Kyriakides shall tender his resignation as Chief Executive Officer and as Chairman of the Board of Directors of Biovest, but shall
retain his position as a member and Vice-Chairman of the Board of Directors. 
  
 At the Closing, Dr. David DeFouw shall tender his resignation as Director of Biovest. 
  
 At the Closing, Mr. Thomas Belleau shall tender his resignation as Chief Financial Officer of Biovest. 
  
 Accrued executive compensation through June 30, 2003 for Mr. Mourkakos and
Dr. Kyriakides ($855,000 for each of them) shall he paid as follows: 
  
 B. A. By Convertible Secured Promissory Note in the amount of $655,000 to each, with a maturity date of four (4) years from the date of Closing and the 
  

 29 

 same security and conversion terms as are contained in the Amended Notes being offered to the Convertible Noteholders;
the remaining $200,000 due to each shall be paid in two equal installments of $100,000, the first installment paid at Closing and the second installment paid 90 days from the date of Closing. 
  
 All outstanding Options to Mr. Mourkakos or Dr. Kyriakides shall be converted to Warrants,
exercisable six months from issuance and with a five-year term; One-half of the Warrants to each shall be priced at $0.25 per share; One-half of the Warrants to each shall be priced at $0.50 per share; 
  
 Biovest shall continue to maintain or pay the current level of Health Insurance for both Mr.
Mourkakos and Dr. Kyriakides through and including December 31, 2003; 
  
 Mr.
Mourkakos and Dr. Kyriakides shall have a period of 45 days from the date of Closing to submit requests for reimbursement of all ordinary and customary reimbursable expenses on appropriate Expense Reimbursement Vouchers, which shall be reviewed and
paid in the ordinary course in accordance with Biovest’s existing expense reimbursement procedures. 
  
 Accrued compensation due to Dr. David DeFouw shall be paid within 120 days of the date of Closing, at the discretion of the Chief Financial Officer of
Biovest, in a single lump payment or in installments. 
  

 30 

 Severance in the amount of one month’s salary shall be paid to Mr. Belleau, and Biovest shall
continue to provide health insurance benefits for Mr. Belleau for a period of six months after the Closing. 
  
 All options previously issued to Dr. DeFouw (375,000) and Mr. Belleau (100,000) shall be cancelled at the time of Closing, and Biovest shall issue to Dr.
DeFouw 375,000 Warrants with an exercise price of $0.50 per share, and shall issue to Mr. Belleau 100,000 Warrants with an exercise price of $0.50 per share, all being exercisable beginning six months after the date of issuance and having a five
year term. 
  
 David Moser, Director of Legal Affairs of Biovest, shall receive a
performance bonus in the amount of $10,000.00, payable at Closing, and shall be issued 100,000 Options to purchase Biovest Common Stock priced at $0.50 per share. 
  
 Options previously issued to Mr. Peter J. Pappas Sr. on or about March 6, 2003, shall be priced as follows: 500,000 Options shall be priced
at $.0.50 per share, and 500,000 Options shall be priced at $0.25 per share. 
  
 VIII. Accentia represents that it is engaged in various aspects of developing, commercializing and distributing biopharmaceutical products and that its subsidiaries, both directly and through subcontractor and vendor relationships, provide
an array of product development and commercialization services, including, but not limited to, sales, marketing, specialty pharmacy distribution support, pharmaco-economic services, regulatory services and other development and commercialization
services. Biovest 
  

 31 

 acknowledges that it needs and would benefit from these types of commercialization services and would desire to utilize
such services to the extent such services were provided to it on terms no less favorable than the best that could be available in an arms length transaction with unrelated third parties. 
  
 X. Escrow Agreement. Reference is made to the Escrow Agreement and the documents contemplated thereby which are hereby incorporated
by reference as if set forth in full herein. 
  
 The undersigned hereby agree to
the modified and additional terms set forth hereinabove on the date first set forth above. 
  

							
	 Biovest International, Inc.
	  	Accentia, Inc.
				
	By:	 	 /s/ Christopher Kyriakides

	  	By:	 	 /s/ Frank O’Donnell

	 	 	Dr. Christopher Kyriakides, Chairman	  	 	 	Dr. Frank O’Donnell, CEO

  

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 Exhibit 2.1 
  

SECOND AMENDMENT 
  
 TO 
  
 INVESTMENT AGREEMENT 
  
 THIS SECOND AMENDMENT TO INVESTMENT AGREEMENT (the “Second Amendment”) is made and entered into as of this 17th day of August, 2004 by and Accentia, Inc. (“Accentia”) and Biovest International, Inc. (“BioVest”). 
  
 RECITALS: 
  
 1. Biovest and Accentia entered into the Investment Agreement as of April 10, 2003 (the “Investment Agreement”). 
  
 2. Biovest and Accentia entered into the First Amendment to the Investment Agreement as of
June 16, 2003 (the “First Amendment”). 
  
 3. To obtain required
financing to support its operating and vaccine development requirements, Biovest has requested that Accentia exercise reasonable efforts to accelerate to earlier dates the payment of the promissory note issued at the closing of the Investment
Agreement. 
  
 4. The Biovest Audit Committee has recommended that this Second
Amendment and all exhibits thereto be approved and ratified by the Biovest Board of Directors. 
  
 5. The Biovest Board of Directors has ratified and approved this Second Amendment and all exhibits thereto with all directors with any interest in Accentia abstaining. 
  
 6. The Accentia Board of Directors has ratified and approved this Second Amendment and all
exhibits thereto with all directors with any interest in Biovest abstaining. 
  
  

 33 

  
 7. It is the intent of the parties that except where modified or augmented hereby or by the First Amendment, the terms of the Investment Agreement shall remain in full force and effect. 
  
 NOW THEREFORE in consideration of the mutual covenants, agreements,
representations and warranties contained herein, the parties mutually agree as follows: 
  

	(I)	Acceleration of Promissory Note. Accentia undertakes to exercise reasonable efforts to accelerate payment of the non-interest bearing promissory note in original
principal amount of $15,000,000 (the “Promissory Note”) by making advancing principal payments before the date required by the terms of the Promissory Note to assist Biovest in funding its cash requirements of its operations and
development (“Accelerated Payments”). The undertaking of Accentia is to exercise reasonable efforts to make Accelerated Payments is not an amendment to the terms, including but not limited to the payment dates, set forth in the Promissory
Note. In undertaking to exercise reasonable efforts to make Accelerate Payments under the Promissory Note, Accentia makes no representation or warranty regarding its current or future financial ability to accelerate payments at a rate sufficient to
meet Biovest’s ongoing requirements for cash or at all. Until the date on which any Accelerated Payments would have been due and payable under the Promissory Note, such Accelerated Payment shall be a loan made by Accentia to Biovest pursuant to
the Line of Credit Promissory Note in the form attached hereto as Exhibit B-1 and secured by the General Security Agreement in the form attached hereto as Exhibit B-2 

  

 34 

  

	(II)	Biologics Distribution. The parties acknowledge that Accentia has expertise in various aspects of developing, commercializing and distributing biopharmaceutical
products. In addition, Accentia’s subsidiaries, both directly and through subcontractor and vendor relationships, provide an array of product development and commercialization services, including, but not limited to, sales, marketing, specialty
pharmacy distribution support, pharmaco-economic services, regulatory services and other development and commercialization services. Biovest acknowledges that it needs and would benefit from these types of distribution services and desires to
utilize distribution services offered by Accentia. Accentia is interested in providing needed services to Biovest under reasonable commercial terms, provided that any and all potential conflicts of interest related to such distribution services are
fairly and completely resolved and/or waived. Biovest, with recommendation of its Audit Committee and approval of its Board of Directors, with all directors with any interest in Accentia abstaining, has agreed to establish a biologics
commercialization agreement with Accentia which enables Biovest to have access to the expertise and services of Accentia in a fashion that resolves to Accentia’s satisfaction any and all conflicts of interest related thereto. Accordingly,
BioVest and Accentia have agreed to enter into the “Biologic Products Commercialization Agreement” in the form attached hereto as Exhibit A. 

  

	(III)	Waiver of Potential Conflicts of Interest. BioVest and Accentia hereby acknowledge that Accentia owns approximately 81% of the outstanding capital stock of

  
  

 35 

  
 BioVest, and certain directors and officers have positions with both entities. In light of the potential conflicts of interest resulting from the interrelationship of the parties, each entity has agreed to submit this Agreement and the
potential conflicts of interest to its respective Audit Committee for review and recommendation and to require any director with any employment, officer or directorship relationship in the other party to this Agreement to abstain from voting on any
director’s resolution relating to this Agreement. BioVest, with the recommendation of its Audit Committee and the approval of its Board of Directors, with all directors with any interest in Accentia abstaining, hereby accepts and waives the
potential conflicts of interest associated with this Second Amendment to Investment Agreement, the Line of Credit Promissory Note and the General Security Agreement. Accentia, with the recommendation of its Audit Committee and the approval of its
Board of Directors, with all directors with any interest in Biovest abstaining, hereby accepts and waives all potential conflicts of interest associated with this Second Amendment to Investment Agreement, the Line of Credit Promissory Note and the
General Security Agreement. With the mutual representation and assurance that all reasonable and necessary steps to ensure that all potential conflicts of interest have been fully disclosed, addressed, and fairly and completely resolved or waived by
BioVest and Accentia, the parties enter into this Second Amendment to Investment Agreement and the attached exhibits including the Line of Credit Promissory Note and the General Security Agreement. 
  

	(IV)	Representations and Warranties 

  
 Accentia represents and warrants to BioVest: (a) the execution, delivery and performance by Accentia of this Agreement have been duly authorized by all

  
  

 36 

  
 
necessary action of Accentia, and this Agreement constitutes the legal, valid and binding obligation of Accentia and (b) no authorization, consent, approval,
license, exemption of, or filing or registration with, any governmental authority or agency, or approval or consent of any other Person, is required for the due execution, delivery or performance by Accentia of this Agreement. 
  
 BioVest represents and warrants to Accentia that the execution, delivery and
performance by BioVest of this Agreement have been duly authorized by all necessary action and this Agreement constitutes the legal, valid and binding obligation of BioVest. 
  
 (V) Binding Effect This Second Amendment to Investment Agreement shall be binding upon, inure to the benefit of and be
enforceable by Accentia and BioVest and their respective successors and assigns. No party may assign, transfer, hypothecate or otherwise convey its rights, benefits, obligations or duties hereunder without the prior express written consent of the
other parties hereto. Any such purported assignment, transfer, hypothecation or other conveyance without the prior express written consent of the other parties shall be void. 
  
 IN WITNESS WHEREOF, the parties hereto have duly executed this Second Amendment to Investment Agreement, as of the date first above
written. 
  

			
	ACCENTIA, INC.
		
	By:	 	/s/    Francis E. O’Donnell
		
	 Print Name:
	 	Francis E. O’Donnell
		
	 Title:
	 	CEO
	
	BIOVEST INTERNATIONAL, INC.
		
	By:	 	/s/    Christopher Kyriakides
		
	 Print Name:
	 	Christopher Kyriakides
		
	 Title:
	 	Chairman

  

 37

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