Document:

Second Amendment to Credit Agreement

 Exhibit 10.5 
  
 SECOND AMENDMENT TO CREDIT AGREEMENT 
  
 THIS SECOND AMENDMENT TO CREDIT AGREEMENT (“Amendment”) is entered into as of August 29, 2005, by and
among (a) (i) OMNI ENERGY SERVICES CORP., a Louisiana corporation (“Omni”), and (ii) TRUSSCO, INC., a Louisiana corporation (“Trussco,” Omni and Trussco are hereinafter sometimes referred to
individually or collectively as “Borrower” or “Borrowers”), (b) (i) OMNI ENERGY SERVICES CORP.-MEXICO, a Louisiana corporation (“Mexico”), (ii) OMNI PROPERTIES CORP, a Louisiana
corporation (“Omni Properties”), (iii) OMNI OFFSHORE AVIATION CORP., a Louisiana corporation (“Offshore Aviation”), (iv) OMNI SEISMIC AVIATION CORP., a Louisiana corporation (“Seismic
Aviation”), (v) OMNI ENERGY SEISMIC SERVICES CORP., a Louisiana corporation (“Seismic Services”), (vi) TRUSSCO PROPERTIES, L.L.C., a Louisiana limited liability company (“Trussco Properties”), and
(vii) AMERICAN HELICOPTERS INC., a Texas corporation (“American”; Mexico, Omni Properties, Offshore Aviation, Seismic Aviation, Seismic Services, Trussco Properties and American are hereinafter sometimes referred to
individually or collectively as “Guarantor” or “Guarantors”), and (c) GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, for itself, as the sole Lender, and as Agent for Lenders (references to
“GE Capital” shall mean General Electric Capital Corporation in both its capacity as Agent and as Lender), with reference to the following Recitals: 
  
 RECITALS 
  
 A. Borrowers, Guarantors, and GE Capital have entered into that certain Credit Agreement dated as of May 18, 2005, as amended by that certain First
Amendment to Credit Agreement (the “First Amendment”) dated as of July 29, 2005 (collectively, the “Credit Agreement”), pursuant to which GE Capital is providing financial accommodations to or for the benefit
of Borrowers and Guarantors upon the terms and conditions contained therein. Unless otherwise defined herein, capitalized terms or matters of construction defined or established in the Credit Agreement shall be applied herein as defined or
established therein. 
  
 B. Borrower, Guarantors, and ORIX Finance
Corp., a Delaware corporation, for itself, as a lender, and as agent (in such capacity, “Junior Agent”) for the lenders signatory thereto from time to time (the “Junior Lenders”) are entering into that certain
Credit Agreement dated as of the date hereof (the “Junior Credit Agreement”), pursuant to which Junior Lenders are providing financial accommodations to or for the benefit of Borrowers and Guarantors upon the terms and conditions
therein for the purpose of satisfying in full certain of the New Subordinated Notes and for other purposes stated therein. Borrowers and Guarantors have requested that GE Capital consent to such transaction. GE Capital is willing to accommodate such
request of Borrowers and Guarantors to the extent provided in, and subject to the terms and conditions of, this Amendment. 
  
 AGREEMENT 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

 1. Ratification and Incorporation of Credit Agreement and the Other Loan Documents. Except as
expressly modified under this Amendment, (a) each Borrower and Guarantor hereby acknowledges, confirms and ratifies all of the terms and conditions set forth in, and all of their respective obligations under, the Credit Agreement and the other
Loan Documents, and (b) all of the terms and conditions set forth in the Credit Agreement and the other Loan Documents are incorporated herein by this reference as if set forth in full herein. Without limiting the generality of the foregoing,
Borrowers and each other Credit Party hereby acknowledge and agree that as of the date hereof, (before taking into account any payment made pursuant to Section 4.b below) the aggregate outstanding principal amount of the Term A Loan is
$8,361,472.29. Each Credit Party represents that as of the date hereof it has no offset, defense, counterclaim, dispute or disagreement of any kind or nature whatsoever with respect to the amount of the Obligations. 
  
 2. Limited Consent. 
  
 a. Junior Credit Agreement. GE Capital hereby
consents to Borrowers and Guarantors entering into the Junior Credit Agreement. In addition, GE Capital hereby consents to the satisfaction in full of certain of the New Subordinated Notes through (i) use of a portion of the proceeds from a
funding under the Junior Secured Facility, and (ii) issuance of Stock of Omni to certain of the holders of the New Subordinated Notes. Nothing herein shall be construed to be an implied consent to the “Equity Commitment” described in
the Junior Credit Agreement. 
  
 b. Webster
Amendment. GE Capital hereby consents to the amendments being made to the Revolver Credit Agreement pursuant to the Consent dated as of the date hereof, among Revolver Lender, Borrowers and Guarantors (the “Webster Amendment”).

  
 3. Amendments to Credit Agreement. The Credit Agreement
is hereby amended as follows (and all section references in this Section 3 shall, unless the context otherwise requires, be references to sections of the Credit Agreement): 
  
 a. Mandatory Prepayment Provisions. After taking into account the payment to be made pursuant to
Section 4.b below, the principal balance of the Initial Term A Loan will have been reduced to $5,000,000. Given that such reduction will have occurred prior to October 31, 2005, it is acknowledged and agreed that the provisions set
forth in Section 3(c) of the First Amendment shall be disregarded and be of no further force or effect. 
  
 b. Modification of Section 1.5(a). The second sentence in Section 1.5(a) is hereby modified to read as follows:

  
 As of the Closing Date, the Applicable LIBOR Margin (such
margin will be referred to as the “Base LIBOR Margin”) shall be 6.50%. 
  
 c. Modification of Section 5.4(a)(iv). Section 5.4(a)(iv) is hereby modified by replacing the reference to
“$25,000,000” with the words “$1,000,000 per occurrence and $2,000,000 in the aggregate” therein. 
  
 d. Modification of Section 6.3(a)(ix). Section 6.3(a)(ix) is hereby modified to read as follows: 
  

 2 

 Any Indebtedness that may arise at any time under the Junior Secured Facility in an aggregate
principal amount not to exceed $25,000,000 (with such amount reduced by (A) the amount of any principal repayments of the loans thereunder, and (B) the amount of any permanent reductions of the commitments thereunder); 
  
 e. Modification of Section 6.3(a)(xi).
Section 6.3(a)(xi) is hereby modified to read as follows: 
  
 (xi) Indebtedness under the New Subordinated Note issued to Provident Premier Master Fund Ltd. 
  
 f. Modification of Section 6.13(g). Section 6.13(g) is hereby deleted and replaced with the following: 
  

	 	(g)	(i) scheduled payments of interest and principal on Trussco Note 1 and Trussco Note 2 (other than on account of the Pledged Trussco Note Interest); (ii) the payment of
the Trussco Subordinated Obligations to the extent permitted under the Trussco Subordination Agreement; (iii) scheduled payments of interest and principal on the New Subordinated Note issued to Provident Premier Master Fund, Ltd. to the extent
that such payments are permitted under the Noteholder Subordination Agreement (including accelerated principal to the extent that the acceleration of such New Subordinated Note is permitted under the Noteholder Subordination Agreement), and
“Permitted Distributions” under and as defined in the Noteholder Subordination Agreement; (iv) repayment of the entire principal balance of the New Subordinated Note issued to Provident Premier Master Fund, Ltd. from the proceeds of a
funding under the Junior Secured Facility; and (v) scheduled payments of principal and interest on the Junior Secured Facility to the extent that such payments are permitted under the Term B Subordination Agreement; provided, that no
such payments of interest, principal or Permitted Distributions in respect of clauses (i) and (iii) above shall be made unless, after giving effect to such payment, Revolver Credit Availability (as determined on a pro forma basis, with
trade payables being paid currently and in the ordinary course of business but on terms not to exceed 90 days, and expenses and liabilities being paid in the ordinary course of business and without acceleration of sales) shall be at least
$3,500,000. 

  
 g.
Modification of Section 6.16(a). Section 6.16(a) is hereby modified by adding “(other than, with respect to the Junior Secured Facility, as permitted under the Term B Subordination Agreement)” immediately after the words
“(or any indenture or agreement in connection therewith)” therein. 
  

 3 

 h. Addition of new Section 6.19. Section 6.19 is hereby added and shall
read as follows: 
  
 6.19 Compensation . Borrowers
shall not pay compensation (including, for this purpose, salary, bonus, management or consulting fees, directors fees and any other forms of remuneration, whether payable in cash or other property) to the Senior Management of Borrowers in excess of
the following sums (unless otherwise approved by Agent): (a) in respect of salary and other forms of remuneration (excluding bonuses) an aggregate amount not to exceed one hundred ten percent (110%) of the remuneration paid to Senior
Management in the prior Fiscal Year; and (b) in respect of bonus, (i) for Fiscal Year 2005, an amount not to exceed $250,000 in the aggregate, and (ii) for each Fiscal Year thereafter, an amount not to exceed in percentage amount of
income (or like basis), the percentage amount used to compute bonuses in the prior Fiscal Year. 
  
 i. Modification of Section 8.1(b). Section 8.1(b) is hereby modified by deleting the reference to “Section
5.11” therein. 
  
 j. Modification of
Section 8.1(e)(ii). Section 8.1(e)(ii) is hereby modified by replacing the words “Term B Credit Agreement” with the words “Junior Credit Agreement” each time it is used therein. 
  
 k. Changes to Annex A (Definitions). Annex A is
hereby modified as follows: 
  

	 	(i)	Modified Definitions. 

  
 (A) Funded Debt. The definition of “Funded Debt” is hereby modified by adding “Indebtedness under the Junior
Secured Facility,” immediately after the words “Indebtedness under the Revolver Credit Agreement,” therein. 
  
 (B) Loan Documents. The definition of “Loan Documents” is hereby modified by adding “the Term B Subordination
Agreement,” immediately after the words “the Trussco Subordination Agreements,” therein. 
  
 (C) Permitted Encumbrances. Clause (l) of the definition of “Permitted Encumbrances” is hereby modified to read as
follows: 
  
 (l) Liens securing the Junior Secured Facility
to the extent permitted pursuant to the Term B Subordination Agreement; and 
  
 (D) Subordinated Debt. Clause (d) of the definition of “Subordinated Debt” is hereby modified to read as follows:

  
 (d) from and after the closing of the Junior Secured
Facility, the obligations thereunder; and 
  

 4 

 (ii) Added Definitions. The following definitions are hereby added to Annex A in
appropriate alphabetical order: 
  
 (A)
“Junior Credit Agreement” means that certain Credit Agreement dated as of the Second Amendment Closing Date, among Borrowers, Guarantors and ORIX Finance Corp., in form and substance acceptable to Agent in its sole discretion, as it
may be amended, restated, or refinanced from time to time thereafter (but only to the extent that such amendments, restatements or refinancings are permitted under the Term B Subordination Agreement). 
  
 (B) “Junior Secured Facility” means the
subordinated secured credit facility among Borrowers, Guarantors and ORIX Finance Corp. entered into on the Second Amendment Closing Date, in form and substance acceptable to Agent in its sole discretion. 
  
 (C) “Second Amendment” means that certain
Second Amendment to Credit Agreement dated as of August 29, 2005, among Borrowers, the other Credit Parties party thereto, and Agent. 
  
 (D) “Second Amendment Closing Date” means the date on which all of the conditions set forth in Section 4 of the
Second Amendment have been satisfied. 
  
 (E)
“Senior Management” means James C. Eckert, G. Darcy Klug, Shawn L. Rice and any other person serving as chief executive officer, chief operating officer and chief financial officer of a Borrower, regardless of nominal title.

  
 (F) “Term B Subordination
Agreement” means a subordination agreement between Agent, Revolver Lender and ORIX Finance Corp., in form and substance acceptable to Agent in its sole discretion. 
  
 l. Disclosure Schedules. 
  

	 	(i)	Disclosure Schedule 6.3 to the Credit Agreement is hereby deleted and replaced with the version of Disclosure Schedule 6.3 annexed hereto as Annex A.

  

	 	(ii)	Disclosure Schedule 6.7 to the Credit Agreement is hereby deleted and replaced with the version of Disclosure Schedule 6.7 annexed hereto as Annex B.

  
 4. Conditions to Effectiveness. The
effectiveness of this Amendment is subject to the satisfaction of the following conditions precedent to the satisfaction of GE Capital, unless specifically waived in writing by GE Capital: 
  
 a. Documents. This Amendment shall have been duly
executed by, and delivered to, Borrowers, each other Credit Party, and GE Capital, and GE Capital shall have 

  

 5 

 
received such documents, instruments, agreements and legal opinions as GE Capital shall reasonably request in connection with the transactions contemplated
by this Amendment, including all those listed in the Schedule of Documents attached hereto as Annex C, each in form and substance reasonably satisfactory to GE Capital. 
  
 b. Payment to GE Capital. GE Capital shall have received a total of $3,361,472.29 directly from ORIX
Finance Corp. (on behalf of each Borrower) by wire transfer of immediately available funds, which will be applied to the remaining installments of the Term A Loan in the inverse order of maturity. 
  
 c. Payment to GE Capital’s Professionals. The
fees and expenses of GE Capital’s counsel and other professionals, if any, shall be paid to such professionals directly from Omni by wire transfer of immediately available funds. 
  
 d. No Default. No Default or Event of Default shall have occurred and be continuing. 
  
 e. Junior Credit Agreement. GE Capital shall have
received fully executed copies of the Junior Credit Agreement and all documents being executed in connection therewith (collectively, the “Junior Credit Documents”), each of which shall be in form and substance satisfactory to GE
Capital and its counsel. The Junior Secured Facility shall have been consummated in accordance with the terms of the Junior Credit Documents, and a $9,000,000 advance shall have been made to Borrowers thereunder. 
  
 f. New Subordinated Notes. GE Capital shall have
received (i) fully executed copies of the (A) Settlement Agreement and Mutual Release by and between Omni and Portside Growth and Opportunity Fund effective as of August 29, 2005, and (B) Settlement Agreement and Mutual Release
by and between Omni and Manchester Securities Corp. effective as of August 29, 2005, (ii) evidence that the New Subordinated Notes issued to (A) Portside Growth and Opportunity Fund, and (B) Manchester Securities Corp., have been
satisfied in full and cancelled, and (iii) evidence that all amounts due and payable on account of the scheduled principal and interest payment due on or about August 13, 2005 under the New Subordinated Note issued to Provident Premier
Master Fund, Ltd. has been paid by Omni and accepted by Provident Premier Master Fund, Ltd., all of which shall be in form and substance satisfactory to GE Capital and its counsel. 
  
 5. Entire Agreement. This Amendment, together with the Credit Agreement and the other Loan Documents, is the entire
agreement between the parties hereto with respect to the subject matter hereof. This Amendment supersedes all prior and contemporaneous oral and written agreements and discussions with respect to the subject matter hereof. Except as otherwise
expressly modified herein, the Credit Agreement and the other Loan Documents shall remain in full force and effect. 
  
 6. Guarantor Consents. By signing this Amendment, each Guarantor hereby (a) ratifies and reaffirms, as of the date hereof, the Subsidiary
Guaranty (as amended), all of the provisions of the Credit Agreement, and all other Loan Documents to which it is a party, (b) acknowledges receipt of a copy of this Amendment and (c) consents to all of the provisions of this Amendment.
Each Guarantor further acknowledges and agrees that all of the Loan Documents to which it is a party or otherwise bound shall continue in full force and effect and 

  

 6 

 
that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of this
Amendment. 
  
 7. Representations and Warranties. Each
Borrower and each other Credit Party hereby represents and warrants to GE Capital as follows: 
  
 a. The execution, delivery and performance by such Person of this Amendment: (i) are within such Person’s corporate or other
power; (ii) have been duly authorized by all necessary corporate or other action; (iii) do not and will not violate any provision of any law or any governmental rule or regulation applicable to such Person or any of its Subsidiaries, its
charter and bylaws or partnership or operating agreement, as applicable, or any order, judgment or decree of any court or other agency of government in any jurisdiction binding on any such Person or any of its Subsidiaries; (iv) do not and will
not conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material contract to which such Person or any of its Subsidiaries is a party; (v) do not and will not result in or require the
creation or imposition of any Lien upon any of the properties or assets of such Person or any of its Subsidiaries (other than any Liens created under any of the Loan Documents in favor of Agent, on behalf of Lenders; (vi) do not or will not
require any approval of stockholders, members or partners or any approval or consent of any Person under any material contract to which such Person or any of its Subsidiaries is a party, except for such approvals or consents which have been obtained
as of the date hereof, and disclosed in writing to GE Capital; and (vii) do not and will not require any registration with, consent or approval of, or notice to, or other action, with or by, any Governmental Authority. 
  
 b. This Amendment has been duly executed and delivered for
the benefit of or on behalf of Borrowers and each Guarantor and constitutes a legal, valid and binding obligation of each such Person, enforceable against it in accordance with its terms, subject to limitations as to enforceability which might
result from general equitable principles or bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability. 
  
 c. Each Borrower and each Guarantor hereby represents and
warrants that the representations and warranties contained in Section 3 of the Credit Agreement, as amended hereby, were true and correct when made and (as to all such representations and warranties other than those which, by their terms,
specifically are made as of a certain date prior to the date hereof) are true and correct as of the date hereof. 
  
 8. Release. Each Borrower and each other Credit Party, for itself and on behalf of its successors, assigns, and officers, directors, employees,
agents and attorneys, hereby remises, releases and forever discharges GE Capital (in all of its capacities) and its present and former officers, directors, Stockholders, employees, agents, attorneys, successors and assigns from any and all claims,
rights, actions, causes of action, suits, liabilities, defenses, damages and costs that (a) exist or may exist as of the date hereof and (b) arise from or are otherwise related to the Credit Agreement or the other Loan Documents, any
transaction contemplated thereby, the administration of the Term A Loan and other financial accommodations made thereunder, the collateral security given in connection therewith, or any related discussions or negotiations, in each case whether known
or unknown, suspected or unsuspected. Each Borrower and each other Credit Party waives any and all claims, rights and benefits it may have under any law of any jurisdiction that would render ineffective a release made by a creditor of claims that
the creditor 

  

 7 

 
does not know or suspect to exist in its favor at the time of executing the release and that, if known by it, would have materially affected its settlement
with the applicable debtor. Each Borrower and each other Credit Party acknowledges that (a) it has been represented by independent legal counsel of its own choice throughout all of the negotiation that preceded the execution of this Amendment
and that its has executed this Amendment after receiving the advice of such independent legal counsel, and (b) such Person and its respective counsel have had an adequate opportunity to make whatever investigation or inquiry they deem necessary
or desirable in connection with the release contained in this Section 8. 
  
 9. Miscellaneous. 
  
 a. Counterparts. This Amendment may be executed in identical counterpart copies, each of which shall be an original, but all of which shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Amendment by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart thereof. 
  
 b. Headings. Section headings used herein are for convenience of reference only, are not part of this
Amendment, and are not to be taken into consideration in interpreting this Amendment. 
  
 c. Recitals. The recitals set forth at the beginning of this Amendment are true and correct, and such recitals are incorporated
into and are a part of this Amendment. 
  
 d.
Governing Law. This Amendment shall be governed by, and construed and enforced in accordance with, the laws of the State of New York applicable to contracts made and performed in such state, without regard to the principles thereof regarding
conflict of laws. 
  
 e. Effect. Upon the
effectiveness of this Amendment, from and after the date hereof, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import shall mean and be a reference to the Credit
Agreement as amended hereby and each reference in the other Loan Documents to the Credit Agreement, “thereunder,” “thereof,” or words of like import shall mean and be a reference to the Credit Agreement as amended hereby.

  
 f. No Novation. Except as expressly
provided in this Amendment, the execution, delivery, and effectiveness of this Amendment shall not (i) limit, impair, constitute a waiver of or otherwise affect any right, power or remedy of GE Capital under the Credit Agreement or any other
Loan Document, (ii) constitute a waiver of any provision in the Credit Agreement or in any of the other Loan Documents, or (iii) alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements
contained in the Credit Agreement or in any of the other Loan Documents, all of which are ratified and affirmed in all respects and shall continue in full force and effect. 
  
 g. Conflict of Terms. In the event of any inconsistency between the provisions of this Amendment and
any provision of the Credit Agreement, the terms and provisions of this Amendment shall govern and control. 
  
 [Remainder of Page Left Blank] 
  

 8 

 IN WITNESS WHEREOF, this Amendment has been duly executed as of the date first written above. 

 

									
	 “Borrowers”:
  
	 	 	 	 
	 OMNI ENERGY SERVICES CORP.
	 	 	 	 TRUSSCO, INC.

					
	By:	 	 /s/ James C. Eckert
	 	 	 	By:	 	 /s/ James C. Eckert

	 	 	 James C. Eckert
 Chief Executive Officer
	 	 	 	 	 	 James C. Eckert
 Chief Executive Officer

  
 [Signatures
continued] 
  

 9 

			
	 “Agent” and a “Lender”
  
 GENERAL ELECTRIC CAPITAL CORPORATION

		
	By:	 	 /s/ Kevin Walsh

	 Name:
	 	 Kevin Walsh
 Duly Authorized Signatory

  
 [Signatures
continued] 
  

 10 

 The following Persons are signatories to this Amendment in their capacity as Credit Parties and not as
Borrowers. 
  

									
	“Credit Parties”	 	 	 	 
			
	 OMNI ENERGY SERVICES CORP.-MEXICO
	 	 	 	OMNI PROPERTIES CORP.
					
	By:	 	 /s/ James C. Eckert
	 	 	 	By:	 	 /s/ James C. Eckert

	 	 	 James C. Eckert
 Chief Executive Officer
	 	 	 	 	 	 James C. Eckert
 Chief Executive Officer

  

									
			
	 OMNI OFFSHORE AVIATION CORP.
	 	 	 	OMNI SEISMIC AVIATION CORP.
					
	By:	 	 /s/ James C. Eckert
	 	 	 	By:	 	 /s/ James C. Eckert

	 	 	 James C. Eckert
 Chief Executive Officer
	 	 	 	 	 	 James C. Eckert
 Chief Executive Officer

  

									
			
	 OMNI ENERGY SEISMIC SERVICES CORP.
	 	 	 	 TRUSSCO PROPERTIES, L.L.C.
  
 By:   OMNI ENERGY SERVICES CORP.,
its Sole Member

					
	By:	 	 /s/ James C. Eckert
	 	 	 	By:	 	 /s/ James C. Eckert

	 	 	 James C. Eckert
 Chief Executive Officer
	 	 	 	 	 	 James C. Eckert
 Chief Executive Officer

  

									
			
	 AMERICAN HELICOPTERS INC.
	 	 	 	 
					
	By:	 	 /s/ James C. Eckert
	 	 	 	 	 	 
	 	 	 James C. Eckert
 Chief Executive Officer
	 	 	 	 	 	 

  

 11Amended and Restated Investors Rights Agreement

  
 Exhibit 4.8 

 
 ACCENTIA BIOPHARMACEUTICALS, INC. 
  
 AMENDED AND RESTATED 
  
 INVESTORS’ RIGHTS AGREEMENT 
  
 This Amended and Restated Investors’ Rights Agreement (this
“Agreement”) is made as of January 7, 2005 by and among ACCENTIA BIOPHARMACEUTICALS, INC., a Florida corporation, having its principal place of business located at 5310 Cypress Center Drive, Suite 101, Tampa, FL 33609
(the “Company”), and Pharmaceutical Product Development, Inc., a North Carolina corporation, having its principal place of business located at 3151 South 17th Street, Wilmington, NC 28412 (“PPD”), and supersedes and replaces in its entirety that certain Investors’ Rights Agreement dated
January 9, 2004 by and between the Company and PPD (the “Original Agreement”). 
  
 RECITALS 
  
 Whereas, PPD is a party to the Series E Convertible Preferred Stock Purchase Agreement dated January 9, 2004 by and between the Company and PPD (the “Series E Stock Purchase Agreement”), which provided that,
as a condition to the closing of the sale of 5,000,000 shares of the Company’s Series E Convertible Preferred Stock (the “Series E Stock”) to PPD, the Original Agreement must be executed and delivered by the Company;

  
 Whereas, in connection with the closing of the
transactions contemplated by the Series E Stock Purchase Agreement, the Company issued to PPD a Class A Warrant (the “Class A Warrant”) to purchase up to 5,000,000 shares of Series E Stock, the term of which warrant is set to expire
on January 9, 2005; 
  
 WHEREAS, PPD commits to exercise
the Class A warrant for the purchase of 5,000,000 shares of Series E Stock upon signing hereof and expresses its current intent, without obligation and based on current facts and circumstances, to exercise the Class B Warrant at the closing of the
Planned IPO for the purchase of an additional 5,000,000 shares of Series E Stock; 
  
 Whereas, as soon as practicable the Company is planning to file a registration statement with the Securities and Exchange Commission to register the underwritten offer and sale of its Common Stock to the public
under the Act (the “Planned IPO”) in a manner intended to qualify the Planned IPO as a Qualifying IPO; 
  
 Whereas, the parties desire to set forth herein the terms under which the Company agrees to include and sell in the Planned IPO all of the shares
of Common Stock issuable to PPD up to a maximum gross proceeds on behalf of PPD of Twelve Million Dollars ($12,000,000) which may be expanded in the discretion of the Underwriter and the Company (the “PPD Original Investment
Shares”) upon the 

 
automatic conversion of the 5,000,000 shares of Series E Stock currently held by PPD which would convert into such Common Stock upon a Qualifying IPO.

  
 Now, Therefore, in consideration of the mutual promises
and covenants set forth herein, the parties hereto further agree as follows: 
  
 AGREEMENT 
  
 1.
Registration Rights. The Company covenants and agrees as follows: 
  
 1.1 Definitions. For purposes of this Section 1: 
  
 (a) The term “register,” “registered,” and “registration” refer to a registration
effected by preparing and filing a registration statement or similar document in compliance with the Securities Act of 1933, as amended (the “Act”), and the declaration or ordering of effectiveness of such registration
statement or document; 
  
 (b) The term
“Registrable Securities” means the (i) Common Stock issuable or issued upon conversion of the Series E Stock issued or issuable in connection with the Series E Stock Purchase Agreement (including the PPD Original Investment
Shares), whether such Series E Stock is issued at the Closing or subsequent thereto upon the exercise of any warrants issued to PPD pursuant to the Series E Stock Purchase Agreement ; and (ii) any Common Stock of the Company issued as (or issuable
upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, any Series E Stock; 
  
 (c) The number of shares of “Registrable
Securities then outstanding” shall be determined by the number of shares of Common Stock outstanding which are, and the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities which are,
Registrable Securities; 
  
 (d) The term
“Holder” means any person owning or having the right to acquire Registrable Securities or any assignee thereof in accordance with Section 1.13 hereof, including PPD; and 
  
 (e) The term “Form S-3” means such
form under the Act as in effect on the date hereof or any registration form under the Act subsequently adopted by the Securities and Exchange Commission (the “SEC”) which permits inclusion or incorporation of substantial
information by reference to other documents filed by the Company with the SEC. 
  
 The term “Qualifying IPO” means the closing of a firm commitment underwritten public offering pursuant to an effective registration statement under the Act, as amended, covering the offer and
sale of Common Stock for the account of the Company to the public (an “Initial Public Offering”) in which the public offering price exceeds (prior to underwriter’s discounts or commissions 

 
and offering expenses) a price per share (adjusted for any subsequent stock splits, stock dividends, reclassifications or recapitalizations) that implies a
minimum aggregate enterprise value for the Company, on a fully diluted share basis, of not less than $200,000,000 and the aggregate gross proceeds raised by the Company (after all underwriting discounts) shall equal or exceed $30,000,000.

  
 1.2 Required Registration. 

 
 (a) The Company agrees that in connection with its
Planned IPO it shall undertake best efforts to file a registration statement with the SEC within the next 30 days covering the firm commitment underwritten offer and sale in the Planned IPO of all of the PPD Original Investment Shares. The Company
shall use its best efforts to have the registration statement declared effective by the SEC as soon as practicable, and shall diligently proceed in a good faith effort to respond to SEC comments and complete the Planned IPO within 150 days from the
date hereof. The Company may in its discretion delay or postpone the IPO if the Board in good faith determines that it would not be advisable and in the best interest of the Company and its shareholders. The Company agrees that it will not include
any shares in the IPO held by stockholders other than PPD without PPD’s prior written consent. The Company shall include all of the PPD Original Investment Shares for offer and sale in the Planned IPO (or any other Initial Public Offering of
Company shares, whether contemplated now or in the future), and this obligation is and shall be absolute and unconditional. Without the prior written consent of PPD, the Company shall not under any circumstances complete the Planned IPO (or any
other Initial Public Offering of it shares) without including therein all of the PPD Original Investment Shares as defined herein for sale to and through the underwriters for such offering. 
  
 (b) PPD shall (together with the Company as provided in
Section 1.5(e)) enter into an underwriting agreement in customary form with the underwriter or underwriters selected by the Company. If the underwriter advises the Company or PPD in writing that marketing factors require a limitation of the number
of shares to be underwritten, there shall be no reduction to the number of PPD Original Investment Shares underwritten and included in the Planned IPO without the prior written consent of PPD, and any such reduction shall only be made to the Company
shares to be included in the Planned IPO. The Company shall notify PPD in advance of completion of the Planned IPO if the Planned IPO is not going to qualify as a Qualifying IPO and PPD shall have the right and the opportunity to withdraw any or all
of its shares from the Planned IPO without penalty. 
  
 (c) In the event the Company completes (or proposes to complete) the Planned IPO or any other Initial Public Offering and fails (or it becomes apparent that it intends to fail) for any reason to register, offer and sell all of the PPD
Original Investment Shares (which are not voluntarily withdrawn by PPD) in such underwritten registration (and remit all the net proceeds therefrom to PPD), then the Company shall be in immediate breach of its obligations to PPD and PPD shall have
the right to pursue any and all such damages or other remedies 

 
available to it at law or in equity. PPD shall have the full unrestricted right, without limitation, to pursue in a court of competent jurisdiction, and if
awarded by the court recover from the Company, such damages or other relief as may be necessary to compensate PPD for any and all actual or anticipatory damages or losses it may incur as a result of the Company’s failure to perform under this
Agreement, including under this Section 1.2 specifically. In determining damages, PPD shall be required to take reasonable actions to mitigate its loss and damages. 
  
 The parties acknowledge and agree that but for the Company’s agreement to include the PPD Original
Investment Shares for sale in the Planned IPO, PPD would not have exercised the Class A Warrant. 
  
 1.3 Request for Registration. 
  
 (a) If the Company shall receive at any time after the end of the term of the lock up pursuant to Section 4.12 (other than a registration
statement relating either to the sale of securities to employees of the Company pursuant to a stock option, stock purchase or similar plan or a SEC Rule 145 transaction) (the “Initial Registration”), a written request from
the Holders of at least twenty percent (20%) of the Registrable Securities (the “Initiating Holders”) that the Company file a registration statement under the Act covering the registration of such Holders’ Registrable
Securities with an aggregate offering price expected to exceed $2,000,000, then the Company shall, within ten (10) days of the receipt thereof, give written notice of such request to all Holders and shall, subject to the limitations of Section
1.3(b), use its best efforts to effect as soon as practicable the registration under the Act of all Registrable Securities which the Holders request to be registered within twenty (20) days of the mailing of such written notice by the Company;
provided, however, that the Company shall not be obligated to take any action to effect any such registration, qualification or compliance pursuant to this Section 1.3(a): 
  
 (i) During the period starting with the date ninety (90) days prior to the Company’s estimated
date of filing of, and ending on the date one hundred eighty (180) days immediately following the effective date of, any registration statement pertaining to securities of the Company (other than a registration of securities in a Rule 145
transaction or with respect to an employee benefit plan), provided that the Company is actively employing in good faith all reasonable efforts to cause such registration statement to become effective; 
  
 (ii) After the Company has effected two (2) such
registrations pursuant to this Section 1.3(a), and such registrations have been declared or ordered effective; 
  
 (iii) If the Company shall furnish to such Holders a certificate signed by the Chief Executive Officer or President of the Company
stating that in the good faith judgment of the Board of Directors it would be seriously detrimental to the Company or its stockholders for a registration statement to be filed at such time, then the Company’s obligation to use its best efforts
to register, qualify or comply under this 

 
Section 1.3(a) shall be deferred for a period not to exceed 60 days (which may be extended by the Company for an additional 60 days if in the good faith
judgment of the Board of Directors the serious detriment was continuing) from the date of receipt of written request from the Holders; provided, however, that the Company may not utilize this right more than once in any twelve-month
period; 
  
 (iv) During any lock-up period
agreed to by Holder. 
  
 (b) If the Initiating
Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to this Section 1.3, and the Company shall include such
information in the written notice referred to in Section 1.3(a). In such event, the right of any Holder to include such Holder’s Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such
underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the Initiating Holders and such Holder) to the extent provided herein. All Holders
proposing to distribute their securities through such underwriting shall (together with the Company as provided in Section 1.5(e)) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such
underwriting by a majority in interest of the Initiating Holders. Notwithstanding any other provision of this Section 1.3, if the underwriter advises the Initiating Holders in writing that marketing factors require a limitation of the number of
shares to be underwritten, then the Initiating Holders shall so advise all Holders of Registrable Securities which would otherwise be underwritten pursuant hereto, and the number of shares of Registrable Securities that may be included in the
underwriting shall be allocated among all Holders thereof, including the Initiating Holders, in proportion (as nearly as practicable) to the amount of Registrable Securities of the Company owned by each Holder participating in such underwriting.

  
 1.4 Company Registration. If
(but without any obligation to do so) the Company proposes to register (including for this purpose a registration effected by the Company for stockholders other than the Holders) any of its stock or other securities under the Act in connection with
the public offering of such securities solely for cash (other than a registration relating solely to the sale of securities to participants in a Company stock plan, or a registration on any form which does not include substantially the same
information as would be required to be included in a registration statement covering the sale of the Registrable Securities), the Company shall, at such time, promptly give each Holder written notice of such registration. Upon the written request of
each Holder given within twenty (20) days after mailing of written notice by the Company, the Company shall, subject to the provisions of Section 1.9, cause to be registered under the Act all of the Registrable Securities that each such Holder has
requested to be registered. The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 1.4 prior to the effectiveness of such registration whether or not any Holder has elected to include securities
in such registration. The registration expenses of such withdrawn registration shall be borne by the Company in accordance with Section 1.8 hereof. 

 1.5 Obligations of the Company. Whenever required under this Section 1 to
effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible: 
  
 (a) Prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its best efforts to cause
such registration statement to become effective, and keep such registration statement effective for the earlier of ninety (90) days from the effective date of the Registration Statement or until the distribution described in the Registration
Statement has been completed. 
  
 (b) Prepare and
file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Act with respect to the disposition of
all securities covered by such registration statement. 
  
 (c) Furnish to the Holders such numbers of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the Act, and such other documents as they may reasonably request in order to facilitate the
disposition of Registrable Securities owned by them. 
  
 (d) Use its best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders, provided,
however, that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions. 
  
 (e) In the event of any underwritten public offering, enter
into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering. Each Holder participating in such underwriting shall also enter into and perform its obligations under
such an agreement. 
  
 (f) Notify each Holder
covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in
effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing. 
  
 (g) Furnish, at the request of PPD (in the case of a
registration effected pursuant to Section 1.2) or any Holder requesting registration of Registrable Securities pursuant to this Section 1, on the date that such 

 
Registrable Securities are delivered to the underwriters for sale in connection with a registration pursuant to this Section 1, if such securities are being
sold through underwriters, or, if such securities are not being sold through underwriters, on the date that the registration statement with respect to such securities becomes effective, an opinion, dated such date, of the counsel representing the
Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to PPD and the Holders requesting registration of Registrable
Securities. 
  
 1.6 Furnish
Information. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company,
promptly upon request, such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as shall be required to effect the registration of such Holder’s Registrable Securities.

  
 1.7 Expenses of Registrations.
The Company shall bear and pay all expenses incurred in connection with any registration, filing or qualification of Registrable Securities (including the PPD Original Investment Shares) with respect to the registrations pursuant to Sections 1.2,
1.3, 1.4 and 1.12 for each Holder (which right may be assigned as provided in Section 1.13), including (without limitation) all registration, filing, and qualification fees, printers and accounting fees relating or apportionable thereto, , but
excluding stock transfer taxes, and any underwriting discounts and commissions and any legal fees incurred by Holder relating to Registrable Securities. 
  
 1.8 Underwriting Requirements. In connection with any offering involving an underwriting of shares being issued by the
Company, the Company shall not be required under Section 1.2, 1.3 or 1.4 to include any of the Holders’ securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the Company and the underwriters
selected by it (or by other persons entitled to select the underwriters), and then, but only in the case of a registration undertaken pursuant to Section 1.4 and not Section 1.2 and 1.3, only in such quantity as will not, in the opinion of the
underwriters, jeopardize the success of the offering by the Company, but in no event will the amount of Registrable Securities of the selling Holders included in the offering be reduced below twenty percent (20%) of the total amount of securities
included in such offering,. Except in the case of a registration undertaken pursuant to Section 1.2 (in which case PPD’s rights to have the PPD Original Investment Shares included are absolute, unconditional and not subject to cutback without
the prior written consent of PPD) , if the underwriter determines in good faith that marketing factors require a limitation in the number of shares to be underwritten, the number of shares that may be included in the underwriting shall be allocated
(i) first, to the Company; (ii) second to the Holders on a pro rata basis based on the number of Registrable Securities held by the Holders; and (iii) third to any other stockholder of the Company (other than a Holder) on a pro rata basis;
provided, however, that in no event shall any Holder be restricted from including such Holder’s Registrable Securities in an offering pursuant to this Section 1.8 unless and until all other holders of securities of the Company
have been entirely restricted. For purposes of 

 
apportionment, any selling stockholder which is a Holder of Registrable Securities and which is a partnership or corporation, the partners, retired partners
and stockholders of such Holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling stockholder,” and any pro
rata reduction with respect to such “selling stockholder” shall be based upon the aggregate amount of shares carrying registration rights owned by all entities and individuals included in such “selling stockholder,” as defined in
this sentence. 
  
 1.9 Delay of
Registration under Section 1.3 or 1.4 No Holder shall have the right to obtain or seek an injunction restraining or otherwise delaying any registration under Section 1.3 or 1.4 as a result of any controversy that might arise with respect to the
interpretation or implementation of Section 1.3 or 1.4 hereof. 
  
 1.10 Indemnification. In the event any Registrable Securities (including the PPD Original Investment Shares) are included in a registration statement under this Section 1: 
  
 (a) To the extent permitted by law, the Company will
indemnify and hold harmless each Holder, any underwriter (as defined in the Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Act or the Securities Exchange Act of 1934, amended (the
“1934 Act”), against any losses, claims, damages, or liabilities (joint or several) to which such Holder, underwriter or controlling person may become subject under the Act, the 1934 Act or other federal or state law, insofar
as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations of the Company (collectively a “Violation”): (i) any
untrue statement or alleged untrue statement of the Company of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the
omission or alleged omission by the Company to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Act, the 1934
Act, any state securities law or any rule or regulation promulgated under the Act, the 1934 Act or any state securities law; and the Company will pay to each such Holder, underwriter or controlling person, as incurred, any legal or other expenses
reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this Section 1.10(a) shall not apply to amounts
paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any
such loss, claim, damage, liability, or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration
by any such Holder, underwriter or controlling person. 

 (b) To the extent permitted by law, each selling Holder will severally, not jointly,
indemnify and hold harmless the Company, each of its directors, each of its officers who has signed the registration statement, each person, if any, who controls the Company within the meaning of the Act, any underwriter, any other Holder selling
securities in such registration statement and any controlling person of any such underwriter or other Holder, against any losses, claims, damages, or liabilities (joint or several) to which any of the foregoing persons may become subject, under the
Act, the 1934 Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration; and each such Holder will pay, as incurred, any legal or other expenses reasonably incurred
by any person intended to be indemnified pursuant to this Section 1.10(b), in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in
this Section 1.10(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided,
that, in no event shall any indemnity under this Section 1.10(b) exceed the net proceeds from the offering received by such Holder, except in the case of willful fraud by such holder. 
  
 (c) Promptly after receipt by an indemnified party under this Section 1.10 of notice of the commencement of
any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 1.10, deliver to the indemnifying party a written notice of the commencement
thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party shall have the right to retain its own counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by
the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written
notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section
1.10, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 1.10. 
  
 (d) If the indemnification provided for in this Section 1.10
is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying party, in lieu of indemnifying such 

 
indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage or
expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability,
claim, damage or expense as well as any other relevant equitable considerations; provided, that, in no event shall any indemnity under this Section 1.10(d) exceed the net proceeds from the offering received by such Holder, except in the case of
willful fraud by such Holder. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to
state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

  
 (e) Notwithstanding the foregoing, to the
extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting
agreement shall control. 
  
 (f) The obligations
of the Company and Holders under this Section 1.10 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 1, and otherwise. 
  
 1.11 Reports Under Securities Exchange Act of 1934. With a view to making available to the
Holders the benefits of Rule 144 promulgated under the Act (“Rule144”) and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or
pursuant to a registration on Form S-3, the Company agrees to: 
  
 (a) make and keep public information available, as those terms are understood and defined in Rule 144, at all times after the effective date of the first registration statement filed by the Company for the offering of
its securities to the general public; 
  
 (b)
take such action, including the voluntary registration of its Common Stock under Section 12 of the 1934 Act, as is necessary to enable the Holders to utilize Form S-3 for the sale of their Registrable Securities, such action to be taken as soon as
practicable after the end of the fiscal year in which the first registration statement filed by the Company for the offering of its securities to the general public is declared effective; 
  
 (c) file with the SEC in a timely manner all reports and
other documents required of the Company under the Act and the 1934 Act; and 
  
 (d) furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) a written statement by the 

 
Company that it has complied with the reporting requirements of Rule 144 (at any time after ninety (90) days after the effective date of the first
registration statement filed by the Company), the Act and the 1934 Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time
after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested in availing any Holder of
any rule or regulation of the SEC which permits the selling of any such securities without registration or pursuant to such form. 
  
 1.12 Form S-3 Registration. In case the Company shall receive from any Holder or Holders who hold in excess of thirty
percent (30%) of the Registrable Securities, a written request or requests that the Company effect a registration on Form S-3 and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such
Holder or Holders, the Company will: 
  
 (a)
promptly give written notice of the proposed registration, and any related qualification or compliance, to all other Holders; and 
  
 (b) as soon as practicable, effect such registration and all such qualifications and compliances as may be so requested and as would
permit or facilitate the sale and distribution of all or such portion of such Holder’s or Holders’ Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any other Holder
or Holders joining in such request as are specified in a written request given within fifteen (15) days after receipt of such written notice from the Company; provided, however, that the Company shall not be obligated to effect any
such registration, qualification or compliance, pursuant to this Section 1.12: (i) if Form S-3 is not available for such offering by the Holders; (ii) if the Holders, together with the holders of any other securities of the Company entitled to
inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public (net of any underwriters’ discounts or commissions) of less than $500,000; (iii) if the Company shall
furnish to the Holders a certificate signed by the Chief Executive Officer or President of the Company stating that in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its
stockholders for such Form S-3 Registration to be effected at such time, in which event the Company shall have the right to defer the filing of the Form S-3 registration statement for a period of not more than 60 days (which may be extended by the
Company for an additional 60 days if in the good faith judgment of the Board of Directors the serious detriment was continuing) after receipt of the request of the Holder or Holders under this Section 1.12; provided, however, that the
Company shall not utilize this right more than once in any twelve (12) month period; or (iv) in any particular jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of process in
effecting such registration, qualification or compliance. 

 (c) If the Holders initiating the registration request hereunder (the
“Participating Holders”) intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as part of their request made pursuant to this Section 1.12 and
the Company shall include such information in the written notice referred to in Section 1.12(a). In such event, the right of any Holder to include such Holder’s Registrable Securities in such registration shall be conditioned upon such
Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by a majority in interest of the Participating Holders and such Holder) to the
extent provided herein. All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in Section 1.5(e)) enter into an underwriting agreement in customary form with the underwriter or
underwriters selected for such underwriting by a majority in interest of the Participating Holders. Notwithstanding any other provision of this Section 1.12, if the underwriter advises the Participating Holders in writing that marketing factors
require a limitation of the number of shares to be underwritten, then the Participating Holders shall so advise all Holders of Registrable Securities which would otherwise be underwritten pursuant hereto, and the number of shares of Registrable
Securities that may be included in the underwriting shall be allocated among all Holders thereof, including the Participating Holders, in proportion (as nearly as practicable) to the amount of Registrable Securities of the Company owned by each
Holder. 
  
 (d) Subject to the foregoing, the
Company shall file a registration statement covering the Registrable Securities and other securities so requested to be registered as soon as practicable after receipt of the request or requests of the Holders. Registrations effected pursuant to
this Section 1.12 shall not be counted as the required registration under Section 1.2 or the demand for registration or registrations effected pursuant to Sections 1.3 or 1.4, respectively. 
  
 1.13 Assignment of Registration Rights. The
rights to cause the Company to register shares in the Planned IPO pursuant hereto may not be assigned by a Holder. The rights to cause the Company to register Registrable Securities (other than in the Planned IPO) may be assigned by a Holder to any
of the following transferees or assignees of Registrable Securities: (i) any such transferee or assignee who holds, subsequent to such transfer, five percent (5%) of the total number of shares of Registrable Securities (as adjusted for stock splits,
bonuses, combinations, and the like); or (ii) a subsidiary, wholly-owned entity, parent, affiliate, member, stockholder, officer, general partner, limited partner or former or retired partner or member of a Holder; or (iii) a Holder’s family
member or trust for the benefit of an individual Holder or any family member; provided, however, that (a) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such
transferee or assignee and the securities with respect to which such registration rights are being assigned and (b) such assignment shall be effective only if immediately following such transfer the transferee is bound by the terms and conditions of
this Agreement and such transfer of any Registrable Securities is lawful under all applicable securities laws. 

 1.14 Termination of Registration Rights. No stockholder shall be entitled to
exercise any right provided for in this Section 1 (except rights pursuant to Sections 1.2 or 1.11) after the earlier of (i) three (3) years following the consummation of the sale of securities pursuant to an Initial Public Offering, or (ii) as to a
given Holder, when such Holder can sell all of such Holder’s Registrable Securities in a consecutive ninety (90) day period pursuant to Rule 144. 
  
 1.15 Limitations on Subsequent Registration Rights. Except with respect to substantially identical registration rights that may be
granted to other holders of Series E Stock and Series F Convertible Preferred Stock (“Series F Stock”), if created, with respect to such Series E Stock or Series F Stock (and the Common Stock obtained upon conversion) held by them,
the Company shall not, without the prior written consent of the Holders of a majority of the Registrable Securities, enter into any agreement (other than this Agreement) with any holder or prospective holder of any securities of the Company which
would allow such holder or prospective holder (i) to include securities of the Company in any Registration Statement upon terms which are the same or more favorable to such holder or prospective holder than the terms on which holders of Registrable
Securities may include shares in such registration or (ii) to make a demand registration which could result in such registration statement being declared effective prior to the dates set forth in Section 1.2. Notwithstanding the foregoing, in no
event shall the Company grant any rights to any stockholder (other than to PPD) granting them any right to include shares for registration, offer and sale in the Planned IPO 
  
 2. Information Rights. 
  
 2.1 Inspection. The Company shall permit each Holder holding, together with its affiliates (which may include, without
limitation, any person or entity to which rights can be transferred pursuant to Section 3.4, below), an aggregate of at least 1,000,000 shares of the Series E Stock (each, a “Major Holder” and collectively, the
“Major Holders”), at such Major Holder’s expense to visit and inspect the Company’s properties, to examine its books of account and records and to discuss the Company’s affairs, finances and accounts with its
officers, all at such reasonable times as may be requested by the Major Holder; provided, however, that the Company shall not be obligated pursuant to this Section 2.1 to provide access to any information which it reasonably considers
to be a trade secret or similar confidential information unless such Major Holder agrees in writing to hold such information in confidence. 
  
 2.2 Delivery of Financial Statements. 
  
 (a) The Company shall deliver to each Holder of Series E Stock: 
  
 (1) as soon as practicable, but in any event within
one hundred twenty (120) days after the end of each fiscal year of the Company commencing with the fiscal year ended December 31, 2003, a balance sheet dated as of the last day of such fiscal year, and statements of operations, cash flow and 

 
stockholders’ equity for such fiscal year. Such year-end financial reports to be in reasonable detail, prepared in accordance with generally accepted
accounting principles (“GAAP”), and audited and certified by independent public accountants of nationally recognized standing selected by the Company; 
  
 (2) within forty five (45) days of the end of each fiscal quarter of the Company commencing with the
fiscal quarter ended December 31, 2003, an unaudited statement of operations and balance sheet for and as of the end of such quarter, in reasonable detail and prepared in accordance with GAAP, subject to year end audit adjustments and the absence of
footnotes; and 
  
 (b) The Company shall deliver
to each Major Holder: 
  
 (1) as soon as
practicable, but in any event within thirty (30) days prior to the end of the Company’s fiscal year, an annual budget and operating plan for the Company for the following fiscal year; 
  
 (2) as soon as practicable after the end of each
month, and in any event within thirty (30) days thereafter, an unaudited statement of operations and balance sheet for such month, in reasonable detail and prepared in accordance with GAAP, subject to year end audit adjustments and the absence of
footnotes. 
  
 2.3 Termination of
Information Rights. The covenants set forth in this Section 2 shall terminate as to all Holders and Major Holders and be of no further force and effect (i) upon the consummation of a Qualifying IPO or (ii) when the Company first becomes subject
to the periodic reporting requirements of Section 12(g) or 15(d) of the Securities Exchange Act of 1934, whichever event shall first occur. 
  
 3. Investors’ Right of First Refusal. 
  
 3.1 Right of First Refusal. The Company hereby grants to each Holder, on the terms set forth in this Section 3, the right of
first refusal to purchase all or any part of such Holder’s pro rata share of the New Securities (as defined in Section 3.2) which the Company may, from time to time, propose to sell and issue (the “Right of First
Refusal”). The Holders may purchase said New Securities on the same terms and at the same price at which the Company proposes to sell the New Securities. For the purposes of this right of first refusal, a Holder’s pro rata share of
the New Securities is a fraction, the numerator of which is the total number of shares of Series E Convertible Preferred Stock held by such Holder and the denominator of which is the total number of shares of the Company’s capital stock (Common
Stock and Preferred Stock) outstanding immediately prior to the issuance of the New Securities; provided, however, if it is impossible or impractical, as determined in the sole discretion of Holder’s of a majority of the Series E Stock, to
determine the applicable pro rata percentage in accordance with the preceding sentences of this Section 3.1, then such majority may elect for the applicable pro rata percentage to be set at 15%. 

 3.2 New Securities. “New Securities” shall mean any
capital stock of the Company, whether now authorized or not, and any rights, options or warrants to purchase said capital stock, and securities of any type whatsoever that are, or may become, convertible into said capital stock; provided,
however, that New Securities shall not include (i) the Series E Stock, (ii) shares of Common Stock issuable upon conversion of Preferred Stock, (iii) securities offered pursuant to a registration statement filed under the Act, (iv) securities
issued pursuant to the acquisition of another corporation by the Company by merger, purchase of substantially all of the assets or other reorganization, or in any transaction in which the Company’s stockholders immediately prior to such
transaction own immediately after such transaction not less than 51% of the voting power of the surviving corporation or its parent, (v) up to 10,000,000 shares of capital stock and/or stock options issued to officers, employees, consultants or
advisors pursuant to the Company’s stock option plans; (vi) securities issued in connection with leases or bank financing arrangements or corporate partnering, licensing or similar transactions, provided that such transactions and the issuance
of shares therein has been approved by the Board of Directors of the Company, (vii) any warrants, options or rights (and any shares of Common Stock or Preferred Stock issued or issuable upon the exercise of such warrants, options or rights) to
purchase shares of Common Stock or Preferred Stock that are outstanding as of the date of this Agreement, and (viii) securities issued in connection with any stock split, stock dividend or distribution, or recapitalization by the Company approved by
the Company’s Board of Directors. 
  
 3.3
Notice of Proposed Issuance. In the event the Company proposes to undertake an issuance of New Securities, it shall give to the Holders written notice (the “Notice”) of its intention, describing the type of New
Securities, the price, the terms upon which the Company proposes to issue the same, the date of the proposed issuance and a statement as to the number of days from receipt of such Notice within which the Holders must respond to such Notice. The
Holders shall have twenty (20) days from the date of receipt of the Notice to purchase any or all of the New Securities for the price and upon the terms specified in the Notice by giving written notice to the Company and stating therein the quantity
of New Securities to be purchased and forwarding payment for such New Securities to the Company if immediate payment is required by such terms, or in any event no later than the date of the proposed issuance as set forth in the Notice. If not all of
the Holders elect to purchase their pro rata share of the New Securities, then the Company shall promptly notify in writing the Holders who do so elect to purchase all of their pro rata portion of the New Securities and shall offer such subscribing
Holders the right to acquire their pro rata portion of any unsubscribed New Securities. Each subscribing Holder shall have five (5) days after receipt of such notice to notify the Company in writing of its election to purchase all of its pro rata
portion of the unsubscribed New Securities. If the Holders fail to exercise in full their first refusal rights, the Company may sell the New Securities for which the Holders first refusal rights were not exercised, at a price and upon terms and
conditions no more favorable then specified in the Notice. 
  
 3.4 Transfer of Rights. The right of first refusal granted under this Section 3 may not be assigned or transferred, except that such right is assignable or transferable by each Holder to any transferee
or assignee (i) who is a partner or member (or 

 
retired partner or member) of a Holder or the estate of such partner or member (or retired partner or member) or (ii) that is a wholly owned subsidiary or
parent of, or to any corporation or entity that is, within the meaning of the Act, controlling, controlled by or under common control with, any such Holder; provided, however, that the provisions of this Section 3 shall be binding upon
any such assignee or transferee. 
  
 3.5
Termination of Rights. The right of first refusal granted under this Section 3 shall expire upon the first to occur of (i) consummation of a Qualifying IPO, (ii) the sale, assignment or other transfer of the Registrable Securities or the
Series E Stock, or (iii) the conversion of the Series E Stock into Common Stock. 
  
 4. Miscellaneous Provisions. 
  
 4.1 Waivers and Amendments. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively
or prospectively), only with the written consent of the Company and the Holders of at least a majority of the Registrable Securities. Any amendment or waiver effected in accordance with this Section 4.1 shall be binding upon each person or entity
which are granted certain rights under this Agreement and the Company. 
  
 4.2 Notices. All notices and other communications required or permitted hereunder shall be in writing and, except as otherwise noted herein, shall be deemed effectively given (i) upon personal delivery
or delivery by nationally recognized courier, (ii) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient; if not, then on the next business day, or (iii) five (5) days after having been deposited
with the United States Post Office, (by registered or certified mail, return receipt requested, postage prepaid) addressed (a) if to the Company, at the address set forth on the first page of this Agreement (or at such other address as the Company
shall have furnished to the Holders in writing) attention of Chief Executive Officer and (b) if to a Holder, at the latest address of such person shown on the Company’s records; provided, however, that registered or certified mail
shall not be used to effectuate delivery of any such notice under this Agreement if the party to be notified is located outside of the United States. 
  
 4.3 Descriptive Headings. The descriptive headings herein have been inserted for convenience only and shall not be deemed to
limit or otherwise affect the construction of any provisions hereof. 
  
 4.4 Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of Florida as applied to agreements among Florida residents, made and to be performed entirely within
the State of Florida. 
  
 4.5
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original and all of which shall constitute the same instrument, but only one of which need be produced.

 4.6 Expenses. If any action at law or in equity is necessary to enforce or
interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 
  
 4.7 Successors and Assigns. Except as
otherwise expressly provided in this Agreement, this Agreement shall benefit and bind the successors, assigns, heirs, executors and administrators of the parties to this Agreement. 
  
 4.8 Entire Agreement. This Agreement constitutes the full and entire understanding and
agreement between the parties with regard to the subject matter of this Agreement. This Agreement amends, supersedes and replaces in its entirety all other agreements between or among any of the parties with respect to the subject matter hereof
(including the Original Agreement). 
  
 4.9
Separability; Severability. Unless expressly provided in this Agreement, the rights and obligations of each Holder under this Agreement are several and not jointly held with any other Holders. Any invalidity, illegality or limitation on
the enforceability of this Agreement with respect to any Holder shall not affect the validity, legality or enforceability of this Agreement with respect to the other Holders. If any provision of this Agreement is judicially determined to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected or impaired. 
  
 4.10 Stock Splits. All references to numbers of shares in this Agreement shall be appropriately adjusted to reflect any
stock dividend, split, combination or other recapitalization of shares by the Company occurring after the date of this Agreement. 
  
 4.11 Aggregation of Stock. All shares of the Series E Stock held or acquired by affiliated entities or persons shall be
aggregated together for the purpose of determining the availability of any rights under this Agreement. 
  
 4.12 IPO. While the Company anticipates a successful completion to the Planned IPO, except as otherwise expressly provided herein,
no promise, representation or warranty has been made or given to PPD with regard thereto including, but not limited to, the timing, terms, ultimate completion or success of any such future IPO. Except as otherwise provided herein, PPD acknowledges
that in connection with the Planned IPO, stockholders, including PPD, will be required to enter into certain customary undertakings and/or agreements as required by the Company or its underwriter(s). In connection with the Planned IPO, PPD agrees to
execute the Waiver and Lock-up Agreement in the forms attached hereto as Exhibit A (PPD’s obligations under which shall be conditioned on: (a) all officers, directors, employees and 2% stockholders being subject to the same restrictions; and
(b) the sale of all of the PPD Original Investment Shares, as defined herein, in the Planned IPO) and agrees to consent to the amendment to the Company’s Articles of Incorporation in the form attached hereto as Exhibit B. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

 In Witness Whereof, the parties have executed this Amended and Restated Investors’ Rights
Agreement on the day and year first set forth above. 
  

			
	“COMPANY”
	
	Accentia Biopharmaceuticals, Inc.
		
	By:	 	/s/ Francis E. O’Donnell, Jr.
	 	 	Francis E. O’Donnell, Jr.
	 	 	Chief Executive Officer
	
	“PPD”
	
	Pharmaceutical Product Development, Inc.
		
	By:	 	/s/ Fred N. Eshelman
	 	 	Fred N. Eshelman
	 	 	Chief Executive Officer

 ASSIGNMENT AND ASSUMPTION AGREEMENT 
  
 THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Assignment Agreement”) is executed this 28th day of June 2005, by
and between Pharmaceutical Product Development, Inc., a North Carolina corporation (“Assignor”), PPD International Holdings, Inc. a Delaware corporation (“Assignee”) and Accentia Biopharmaceuticals, Inc., a Florida corporation
(the “Company”). 
  
 W I T N E S S E T H:

  
 WHEREAS, Assignor and the Company are parties to that
certain Amended and Restated Investors’ Rights Agreement dated as of January 7, 2005 (the “Rights Agreement”); and 
  
 WHEREAS, Assignee is a wholly owned subsidiary of Assignor; and 
  

WHEREAS, Assignor has agreed to assign to Assignee, and Assignee has agreed to assume, all of the rights and obligations of Assignor under the Rights
Agreement; and 
  
 WHEREAS, the Company has agreed to waive the
restriction on transfer contained in Section 1.13 of the Rights Agreement and permit the assignment. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally
bound, hereby agree as follows: 
  
 1. The recitals set forth
above are true and correct and are incorporated herein by reference. 
  
 2. Assignor hereby assigns to Assignee all of Assignor’s rights, duties and obligations under the Rights Agreement. 
  
 3. Assignee hereby accepts the assignment of Assignor and assumes all of the rights, duties and obligations of Assignor under the Rights Agreement and
agrees to perform all of such duties and obligations in accordance with the terms and provisions of the Rights Agreement as if Assignee had originally executed the Agreement. 
  
 4. As permitted by Section 4.1 of the Rights Agreement, the Company hereby consents to the assignment of all of
Assignor’s rights, duties and obligations under the Rights Agreement to the Assignee, such consent evidenced by the Company’s countersignature hereto. 
  

5. This Assignment Agreement shall inure to the benefit of and be binding upon the parties hereto and their successors and assigns. This Assignment
Agreement may be executed in one or more counterparts and each counterpart shall be deemed to be an original. 
  
 [The next page is the signature page.] 

 IN WITNESS WHEREOF, the parties have executed this Assignment Agreement as of the date first above
written. 
  

					
	ASSIGNOR:	 	PHARMACEUTICAL PRODUCT DEVELOPMENT, INC.
			
	 	 	By:	 	 /s/ B. Judd Hartman

	 	 	Name:	 	B. Judd Hartman
	 	 	Title:	 	General Counsel and Secretary
		
	BUYER:	 	PPD INTERNATIONAL HOLDINGS, INC.
			
	 	 	By:	 	 /s/ B. Judd Hartman

	 	 	Name:	 	B. Judd Hartman
	 	 	Title:	 	General Counsel and Secretary

  

			
	Acknowledged and Agreed to
	this 28th day of June 2005
	
	ACCENTIA BIOPHARMACEUTICALS, INC.
		
	By:	 	 /s/ James A. McNulty

	Name:	 	 
	Title:	 	Secretary

 ACCENTIA BIOPHARMACEUTICALS, INC. 
  
 AGREEMENT 
  
 WHEREAS, Accentia Biopharmaceuticals, Inc., a Florida corporation (the “Company”), is proposing to undertake an initial public offering of its
common stock, par value $.001 per share pursuant to a Registration Statement on Form S-1 originally filed on February 11, 2005, as amended (Registration No. 33-122769) (the “Planned IPO”). 
  
 WHEREAS, the undersigned, as assignee of Pharmaceutical Product Development,
Inc. (collectively, “PPD”), and the Company are parties to an Amended and Restated Investors’ Rights Agreement dated January 7, 2005 (the “Investors’ Rights Agreement”). 
  
 WHEREAS, to facilitate the Planned IPO, it is necessary to obtain the waiver
of certain rights held by the undersigned under the Investors’ Rights Agreement. 
  
 NOW, THEREFORE, for good and valuable consideration, including the continued pursuit of the Planned IPO by the Company, the parties make the following agreements: 
  
 1. PPD Original Investment Shares. The definition of “PPD
Original Investment Shares” as set forth in the fifth recital of the Investors’ Rights Agreement is hereby amended such that the fifth recital shall read in its entirety as follows: 
  
 “Whereas, the parties desire to set forth herein the terms under which
the Company agrees to include and sell in the Planned IPO all of the shares of Common Stock issuable to PPD, up to an amount equal to the lesser of (i) maximum gross proceeds to PPD of Twelve Million Dollars ($12,000,000) and (ii) One Million
(1,000,000) shares, which may be expanded in the discretion of the Underwriter and the Company (the “PPD Original Investment Shares”).” 
  
 2. No Other Amendment. All other terms of the Investors’ Rights Agreement shall continue in full force and effect. 
  
 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the
date set forth below. 
  

			
	 PPD INTERNATIONAL HOLDINGS, INC.

		
	 Name
	 	 /s/ Fred Davenport

	 Title:
	 	 Vice President

	 Date:
	 	 7-8-05

	
	ACCENTIA BIOPHARMACEUTICALS, INC.
		
	 Name
	 	 /s/ James A. McNulty

	 Title:
	 	 Secretary/Treasurer

	 Date:
	 	 7-8-05

  
 AMENDMENT NO. 1 TO WARRANT
EXERCISE AGREEMENT 
 AMENDMENT NO. 2 TO INVESTORS’ RIGHTS AGREEMENT 
  
 THIS AMENDMENT NO. 1 TO WARRANT EXERCISE AGREEMENT AND AMENDMENT NO. 2 TO
INVESTORS’ RIGHTS AGREEMENT (this “Amendment”) is entered into as of August 11, 2005, by and among PPD International Holdings, Inc., a Delaware corporation (“PPDIH”), Pharmaceutical Product Development, Inc., a
North Carolina corporation and 100% owner of PPDIH (“PPD”), and Accentia Biopharmaceuticals, Inc., a Florida corporation (“Accentia”). 
  
 WHEREAS, Accentia is proposing to undertake an initial public offering of its common stock, par value $.001 per share,
pursuant to a Registration Statement on Form S-1 originally filed on February 11, 2005, as amended (Registration No. 33-122769) (the “Planned IPO”); and 
  
 WHEREAS, in connection with the Planned IPO, PPD and Accentia are parties to a letter agreement, dated as of June 10, 2005,
pursuant to which PPD conditionally exercised that certain Class B Warrant (the “Series E Warrant”) for an aggregate of 5,000,000 shares of Accentia’s Series E Convertible Preferred Stock (the “Warrant Exercise
Agreement”); and 
  
 WHEREAS, PPDIH, as the assignee of
PPD, and Accentia are parties to that certain Amended and Restated Investors’ Rights Agreement, dated as of January 7, 2005 and amended pursuant to that certain Agreement dated as of July 8, 2005 (the “Investors’ Rights
Agreement”), whereby PPDIH has the right to require Accentia to include and sell in its Planned IPO the PPD Original Investment Shares (as defined in the Investors’ Rights Agreement); and 
  
 WHEREAS, in connection with the Planned IPO, PPDIH and Accentia now desire to
amend the terms of the Warrant Exercise Agreement to provide for additional conditions to the exercise of the Series E Warrant and amend the terms of the Investors’ Rights Agreement to provide that Accentia shall only have the obligation to
include and sell shares of its Common Stock held by PPD in its Planned IPO upon the satisfaction of certain conditions as described herein. 
  
 NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties to this Amendment hereby agree as follows. 
  
 1. Amendment of Warrant Exercise Agreement. The second full paragraph of the Warrant Exercise Agreement is hereby amended and restated to read in its entirety as follows: 
  
 “Note that the Class B Warrant is being submitted for exercise prior to
any accelerated expiration date pursuant to the conditional exercise provisions of Section 6 of the Class B Warrant. Accordingly, this Class B Warrant shall be deemed exercised (and the Company shall be entitled to deposit and retain the Warrant
Price relating thereto) only upon the occurrence of the earlier of (a) the simultaneous effectiveness of the Qualifying IPO, or (b) complete satisfaction of all of the following conditions: 
  

	 	(i)	the funding by Laurus Master Fund, Ltd. (“Laurus”) of an additional Five Million Dollars ($5,000,000.00) to the Company upon terms substantially similar to the existing
credit facility entered into between the Company and Laurus on April 29, 2005; 

	 	(ii)	the extension of an unsecured line of credit in the principal amount of at least Five Million Dollars ($5,000,000.00) with a term of two years to the Company from the Hopkins
Capital Group; 

  

	 	(iii)	the execution and consummation of a First Amended and Restated Royalty Stream Purchase Agreement between Pharmaceutical Product Development, Inc. (“PPD”) and the Company,
amending and restating that certain Royalty Stream Purchase Agreement dated as of September 7, 2004 (the “Existing Royalty Agreement”); 

  

	 	(iv)	the agreement by the Company to, within five days from the date hereof, (A) deliver to PPD all reports due and owing under Sections 6(a) and 6(c) of the Existing Royalty Agreement,
and (B) pay PPD all royalties and other sums due and owing under the Existing Royalty Agreement; and 

  

	 	(v)	the agreement by the Company to, within five days from the date hereof, pay to PPD and PPDIH of all accrued and unpaid amounts of the Series E Preferred Dividend (as such term is
defined in the Articles of Incorporation) in respect of the Company’s Series E Convertible Preferred Stock now or heretofore owned by PPD and PPDIH pursuant to the terms of the Company’s Amended and Restated Articles of Incorporation as
filed with the Florida Secretary of State on May 25, 2005 and currently in effect (the “Articles of Incorporation”). 

  
 We reserve the right to submit additional conditional exercises after any withdrawal of this conditional exercise in accordance with the provisions of
Section 6 of the Class B Warrant.” 
  
 2. Amendment of
Investors’ Rights Agreement. The definition of “PPD Original Investment Shares” as set forth in the fifth recital of the Investors’ Rights Agreement is hereby amended and restated to read in its entirety as follows:

  
 “Whereas, the parties desire to set forth herein
the terms under which the Company agrees to include and sell in the Planned IPO a number of shares of the Common Stock issuable to PPD up to an amount equal to the following: if the Company sells at least Two Million Nine Hundred Thousand
(2,900,000) shares of its Common Stock in the Planned IPO, all additional shares in the Planned IPO up to the lesser of (i) a number of shares resulting in maximum gross proceeds to PPD of Twelve Million Dollars ($12,000,000) and (ii) One Million
(1,000,000) shares, in each case which may be expanded in the discretion of the Underwriter and the Company (the “PPD Original Investment Shares”).” 
  

 2 

 3. No Other Amendment. Except as specifically provided herein, each of the Warrant Exercise
Agreement and the Investors’ Rights Agreement shall remain in full force and effect. Except as provided above, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the
Company, PPD or PPDIH under the Warrant Exercise Agreement or the Investors’ Rights Agreement. 
  
 4. Counterparts. This Amendment may be executed in any number of counterparts, each of which shall constitute an original, but which, when taken
together, shall constitute one instrument. One or more counterparts of this Amendment may be delivered via facsimile, with the intention that they shall have the same effect as an original counterpart hereof. 
  
 5. Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of Florida, without regard to the conflict of laws provisions thereof. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Amendment Agreement as of the date hereinabove first written. 
  

			
	ACCENTIA BIOPHARMACEUTICALS, INC.
		
	By:	 	 /s/ Alan M. Pearce

	 Name:
	 	 Alan M. Pearce

	 Title:
	 	 Chief Financial Officer

  

			
	PPD INTERNATIONAL HOLDINGS, INC.
		
	By:	 	 /s/Fred N. Eshelman

	 Name:
	 	 Fred N. Eshelman

	 Title:
	 	 President

  

			
	PHARMACEUTICAL PRODUCT DEVELOPMENT, INC.
		
	By:	 	 /s/Fred N. Eshelman

	 Name:
	 	 Fred N. Eshelman

	 Title:
	 	 Chief Executive Officer

  

 3

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