Document:

Amendment and clarification of Accentia Royalty Agreement

 Exhibit 10.5 
 BIOVEST INTERNATIONAL, INC. 
 377 Plantation Street 
 Worcester, MA 01605 
 February 5, 2008 
 Accentia Biopharmaceuticals, Inc 
 324 South Hyde Park Ave. 
 Suite 350 
 Tampa, FL 33606 
 Gentlemen: 
 Reference is made to the Royalty Agreement
dated as of October 31, 2006 (as amended, modified or supplemented from time to time, the “Royalty Agreement”), by and between Biovest International, Inc. (the “Company”) and Accentia Biopharmaceuticals, Inc
(“Accentia”). Capitalized terms used herein that are not defined shall have the meaning given to them in the Royalty Agreement. 
 The Company and Accentia desire to amend the Royalty Agreement on the terms and conditions set forth below. 
 In consideration of
Accentia making certain financial accommodations to the Company, including but not limited to continuing the inter-company loans and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
hereto hereby agree that: 
 a) Section 1.5 of the Royalty Agreement shall be amended and restated in its entirety to read as follows:

 “‘License Revenue’ shall mean: 
 (a) any and all Upfront Amounts, as supported by such documentation as Accentia shall from time to time request; 
 (b) without duplication of any Upfront Amounts previously calculated and paid pursuant to subparagraph (a), any Sales Revenue, as supported by such documentation as Accentia shall from time to time request; and 
 (c) any and all Other Amounts, as supported by such documentation as Accentia shall from time to time request, less, to the extent applicable,:

 (i) in the event Biovest has indicated in a prior writing to Accentia that Biovest will use at least 50% of such Other
Amounts for the further development and/or commercialization of the Biovest Biologic Products, solely such amounts associated with such further development and/or commercialization plus any reasonable costs and expenses associated therewith; and/or

 (ii) in the event Biovest has indicated in writing to Accentia that Biovest will use all
or part of such Other Amounts to repay indebtedness due and payable by Biovest (A) to any or all of Valens US, Valens Offshore SPV II, Corp. and Laurus Master Fund, Ltd. or (B) following the indefeasible payment in full of all indebtedness
due and payable by Biovest to each of Valens US, Valens Offshore SPV II, Corp. and Laurus Master Fund, Ltd., to any other creditor of Biovest, and Accentia and Valens US has consented to such use in writing (which consent will not be unreasonably
withheld), solely such amounts associated with such repayment of indebtedness.” 
 b) Section 1.6 of the Royalty Agreement shall be
amended and restated in its entirety to read as follows: 
 “‘Licensee’ shall mean any Third Party granted a license by Biovest
to manufacture, sell, or commercialize Biovest Biologic Products.” 
 c) a new Section 1.12 is added to the Royalty Agreement and
shall read as follows: 
 “1.12 “Other Amounts” shall mean any amounts other than Upfront Amounts and Sales Revenue received by
Biovest from a Licensee in connection with any Biovest Biologic Product.” 
 d) a new Section 1.13 is added to the Royalty
Agreement and shall read as follows: 
 “1.13 “Sales Revenue” shall mean any and all revenue and other consideration received
by a Licensee from a Third Party for the sale of Biovest Biologic Products, including but not limited to, revenue or royalties from sales by such Licensee of Biovest Biologic Products, upfront revenue, milestone revenue, royalty income, and the
market value at the time of transfer of all non-monetary consideration such as barter or counter-trade in the country of disposition.” 
 e) a new Section 1.14 is added to the Royalty Agreement and shall read as follows: 
 “1.14 “Upfront Amounts”
shall mean any and all advance revenue, advance royalties or other similar consideration received by Biovest from a Licensee for Biovest Biologic Products prior to the sale of such Biovest Biologic Products by the Licensee to a Third Party.”

 f) Section 4.7 of the Royalty Agreement shall be amended and restated in its entirety to read as follows: 
 “Section 4.7 Right to Documentation. (a) Upon request, Accentia shall have the right to request reasonable documentation of
Biovest’s calculations to determine Biovest’s Net Sales and/or License Revenue and to request discussion of such calculations with appropriate representatives of Biovest. 
  

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 (b) Within ten (10) business days following the execution and delivery of any license agreement
between any Licensee and Biovest, Biovest shall deliver to Accentia a true, complete and fully executed copy of such license agreement. 
 (c)
Within ten (10) business days following the receipt by Biovest of any financial reporting documentation pursuant to any license agreement between Biovest and a Licensee, Biovest shall deliver to Accentia true and complete copies of such
financial reporting documentation.” 
 g) Section 4.3 of the Royalty Agreement shall be amended and restated in its entirety to
read as follows: 
 “Royalties shall be paid no later than sixty (60) days following the end of the calendar quarter during which
Net Sales or License Revenue are invoiced for Biovest Biologic Products (“On-going Royalty payments”).” 
 Except as
specifically amended herein, the Royalty Agreement shall remain in full force and effect, and is hereby ratified and confirmed. The execution, delivery and effectiveness of this letter agreement shall not operate as a waiver of any right, power or
remedy of Accentia, nor constitute a waiver of any provision of the Royalty Agreement. 
 This letter agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns and shall be governed by and construed in accordance with the laws of the State of Florida. 
 [Remainder of the page intentionally blank.] 
  

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 This letter agreement may be executed by the parties hereto in one or more counterparts, each of which
shall be deemed an original and all of which when taken together shall constitute one and the same agreement. Any signature delivered by a party by facsimile or electronic transmission shall be deemed to be an original signature hereto. 

 

							
	BIOVEST INTERNATIONAL, INC.
		
	 By:
	 	 /s/ Steven Arikian

	 Name:
	 	Steven Arikian, M.D.
	 Title:
	 	Chairman & CEO

  

			
	 CONSENTED AND AGREED TO:

	
	ACCENTIA BIOPHARMACEUTICALS, INC.
		
	 By:
	 	 /s/ Francis E. O’Donnell, Jr.

	 Name:
	 	Francis E. O’Donnell, Jr., M.D.
	 Title:
	 	Chairman & CEOConversion Agreement

 Exhibit 10.6 
 CONVERSION AGREEMENT 
 BETWEEN 
 BIOVEST INTERNATIONAL, INC. 
 AND 
 ACCENTIA BIOPHARMACEUTICALS, INC. 
 This Conversion
Agreement (this “Conversion Agreement”) effective as of February 5, 2008, by and between BIOVEST INTERNATIONAL, INC., a Delaware corporation (“BIOVEST”) and ACCENTIA BIOPHARMACEUTICALS, INC., a Florida
corporation, (“ACCENTIA”) (collectively the “Parties”). 
 WITNESSETH: 
 Whereas, BIOVEST and ACCENTIA are Parties to certain Secured Demand Promissory Notes (the “Notes”) and other accruals of indebtedness from Biovest to Accentia,
copies of which Notes and a current schedule of this debt are attached as Exhibit A (the “Inter-Company Debt”); 
 Whereas, ACCENTIA wishes to
obtain an option to convert sums due pursuant to the Inter-Company Debt into common stock of Biovest; and 
 Whereas, BIOVEST and ACCENTIA wish to
memorialize their agreement as to the terms of such option to convert the Inter-Company Debt into common stock of Biovest; 
 NOW, THEREFORE, in
consideration of the Accentia’s agreement to continue the Inter-Company Debt without demand for repayment thereof, together with the various promises and undertakings set forth herein, the Parties agree as follows: 
 1. RIGHT TO CONVERT: At any time after the Effective Date hereof until the balance due from Biovest to Accentia pursuant to certain outstanding Demand Promissory
Notes, including any additional sums which may become due from Biovest to Accentia and any interest which may accrue thereupon (collectively the “Inter-Company Debt”) is no longer outstanding, this Inter-Company Debt shall be convertible,
in whole or in part, into shares of Biovest Common Stock at the option of Accentia. Accentia shall effect conversions by delivering to Biovest a Notice of Conversion, the form of which is attached hereto as Annex A (a “Notice of
Conversion”), specifying therein the principal amount of this Inter-Company Debt to be converted and the date on which such conversion shall be effected (such date, the “Conversion Date”). If no Conversion Date is specified
in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is deemed delivered hereunder. To effect conversions hereunder, Accentia shall not be required to physically surrender the Notes representing the
Inter-Company Debt to the Company unless the entire principal amount of this Inter-Company Debt, plus all accrued and unpaid interest thereon, has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal
amount of this Inter-Company Debt in an amount equal to the applicable conversion. Accentia and Biovest shall maintain records showing the principal amount(s) converted and the date of such conversion(s). Biovest may deliver an objection to any
Notice of Conversion within 1 Business Day of delivery of such Notice of Conversion. 

 a) Conversion Price. The conversion price shall be equal to $1.10 (subject
to adjustment herein) (the “Conversion Price”). 
 b) Mechanics of Conversion. 
 i. Conversion Shares Issuable Upon Conversion of Principal Amount. The number of shares of Common Stock issuable upon a conversion
hereunder shall be determined by the quotient obtained by dividing (x) the outstanding principal amount of this Inter-Company Debt to be converted by (y) the Conversion Price. 
 2. Delivery of Certificate Upon Conversion. Not later than three Trading Days after a Notice of Conversion is received from Accentia, Biovest shall deliver, or cause to be delivered, to Accentia a certificate
or certificates representing the Conversion Shares. 
 3. Reservation of Shares Issuable Upon Conversion. Biovest covenants that it will at all times
reserve and keep available out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of this Inter-Company Debt free from preemptive rights or any other actual contingent purchase rights of Persons
other than Accentia not less than such aggregate number of shares of the Common Stock as shall be issuable upon the conversion of the outstanding principal amount of this Inter-Company Debt. Biovest covenants that all shares of Common Stock that
shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable. 
 4. Reclassifications; Adjustment. In case
of any reclassification of the Biovest Common Stock or any compulsory share exchange pursuant to which the Biovest Common Stock is converted into other securities, cash or property, Accentia shall have the right thereafter to exchange the then
outstanding principal amount of this Inter-Company Debt, together with all accrued but unpaid interest and any other amounts then owing hereunder in respect of this Inter-Company Debt into the shares of stock and other securities, cash and property
receivable upon or deemed to be held by holders of the Biovest Common Stock following such reclassification or share exchange, and Accentia shall be entitled upon such event to receive such amount of securities, cash or property as the shares of the
Biovest Common Stock into which the then outstanding principal amount, together with all accrued but unpaid interest and any other amounts then owing hereunder in respect of this Inter-Company Debt could have been exchanged immediately prior to such
reclassification or share exchange. This provision shall similarly apply to successive reclassifications or share exchanges. 
 5. Anti-Dilution: If,
at any time while this Inter-Company Debt is outstanding, Biovest or any of its subsidiaries, as applicable, sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues, any Biovest Common Stock
or securities of Biovest or its subsidiaries which would entitle the holder thereof to acquire at any time Biovest Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any
time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Biovest Common Stock (such securities, “Biovest Common Stock Equivalents”) entitling any Person to acquire shares of
Biovest Common Stock at an effective price per share that is lower than the then Conversion Price, then the Conversion Price shall be reduced to equal the Base Conversion Price. This Anti-Dilution adjustment shall NOT apply to any issuance of
Biovest Common Stock or Biovest Common Stock Equivalents pursuant to the exercise of options pursuant to any Stock Option Plan or Equity Incentive Plan of Biovest. 
  

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 6. Notice and Right to Convert Prior to Repayment. If, at any time while this Inter-Company Debt is outstanding,
Biovest plans to make payment to Accentia of all or any portion of the Inter-Company Debt, Biovest shall provide written notice of such intent to make payment to Accentia at least fifteen (15) days prior to the planned payment date. Accentia
shall have the right, at its sole discretion, to exercise its right to convert as to all or any portion of the then-outstanding Inter-Company Debt at any time prior to the planned payment date specified in the notice. 
 7. Further Actions. Each Party agrees to execute, acknowledge and deliver such further instructions, and to do all such other acts, as may be necessary or
appropriate in order to carry out the purposes and intent of this Agreement. 
 8. Notices. Any notice required or permitted to be given or delivered
hereunder or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been properly served if: (a) delivered personally, (b) delivered by a recognized overnight courier service instructed to provide
next-day delivery, (c) sent by certified or registered mail, return receipt requested and first class postage prepaid, or (d) sent by facsimile transmission followed by confirmation copy delivered by a recognized overnight courier service
the next day. Such notices, demands and other communications shall be sent to the addresses set forth below, or to such other addresses or to the attention of such other person as the recipient Party has specified by prior written notice to the
sending Party. Date of service of such notice shall be: (i) the date such notice is personally delivered or sent by facsimile transmission (with issuance by the transmitting machine of confirmation of successful transmission), (ii) three
days after the date of mailing if sent by certified or registered mail, or (iii) one day after date of delivery to the overnight courier if sent by overnight courier. Unless otherwise specified in writing, the mailing addresses of the Parties
shall be as described below: 
  

	 	(a)	If to BIOVEST, addressed to: 

 Steve Arikian, M.D.

 CEO and Chairman 
 Biovest
International, Inc. 
 Suite 350 
 324 South Hyde Park Ave. 
 Tampa, Florida, 33606 
  

	 	(b)	If to ACCENTIA, addressed to: 

 Frank O’Donnell,
M.D. 
 CEO and Chairman 
 Accentia Biopharmaceuticals, Inc. 
 Suite 350 
 324 South Hyde Park Ave. 
 Tampa, Florida, 33606 
  

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 9. Amendment. No amendment, modification or supplement of any provision of this Agreement shall be valid or
effective unless made in writing and signed by a duly authorized officer of each Party. This Agreement may be executed in a series of counterparts, all of which, when taken together, shall constitute one and the same instrument. 
 10. Waiver. No provision of this Agreement shall be waived by any act, omission or knowledge of a Party or its agents or employees except by an instrument in
writing expressly waiving such provision and signed by the waiving Party. 
 11. Governing Law. This Agreement shall be governed by and interpreted in
accordance with the laws of the State of Delaware. 
 12. Severability. Whenever possible, each provision of this Agreement will be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of this Agreement. 
 13. Entire Agreement of the Parties. This Agreement constitutes and contains the
entire understanding and agreement of the Parties and cancels and supersedes any and all prior negotiations, correspondence, understandings and agreements, whether oral or written, between the Parties respecting the subject matter hereof.

 14. Waiver of Potential Conflicts of Interest. BIOVEST and ACCENTIA hereby acknowledge that ACCENTIA owns more than a majority of the outstanding
capital stock of BIOVEST, and that certain directors, officers and employees of BIOVEST also have positions as officers, directors or employees of ACCENTIA. By execution of the Conversion Agreement the parties acknowledge to each other that each
party has taken all reasonable and necessary steps to assure that all potential conflicts of interest have been fully disclosed, addressed, and fairly and completely resolved or waived. 
 15. Registration Rights. Upon written demand by Accentia, Biovest agrees to file a Registration Statement with the U.S. Securities and Exchange Commission covering the common stock underlying this option to
convert, which Registration Statement shall be filed within ninety (90) days of the date of receipt of such written demand. 
 In the event that Biovest
plans to file a registration statement with the U. S. Securities and Exchange Commission covering shares of common stock of Biovest (“Registration Statement”), Biovest shall provide written notice to Accentia and Accentia shall have 30
days to require in writing that all shares of common stock underlying this Conversion Agreement be covered in the Registration Statement. Notwithstanding the foregoing, Biovest shall have full discretion to determine not to include the shares
underlying the warrant in any registration statement if Biovest reasonably determines that such registration may adversely effect the registration statement, the offering described in the registration statement or otherwise adversely effect Biovest.

 [Signature pages to follow] 
  

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

			
	BIOVEST INTERNATIONAL, INC.
		
	By:	 	 /s/ Steven Arikian

	Name:	 	Steven Arikian, M.D.
	Title:	 	Chairman and CEO
	
	ACCENTIA BIOPHARMACEUTICALS, INC.
		
	By:	 	 /s/ Francis E. O’Donnell, Jr.

	Name:	 	Francis E. O’Donnell, Jr., M.D.
	Title:	 	Chairman and CEO

  

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