Document:

Missouri State Bank Revolving Credit Agreement

 Exhibit 10.36 
  
 REVOLVING CREDIT AGREEMENT 
  
 between 
  
 MISSOURI STATE BANK AND TRUST COMPANY, 
 as Lender 
  
 and 
  
 ACCENTIA, INC., 
 as Borrower 
  
 Dated as of MARCH 30, 2004

  

  
 REVOLVING CREDIT
AGREEMENT 
  
 THIS REVOLVING CREDIT AGREEMENT (the
“Agreement”) made and entered into as of this 30th day of March, 2004 by and between Accentia, Inc. (the “Borrower”), having an address of 5310 Cypress Center Drive, Tampa, Florida and Missouri State Bank and Trust Company, a
Missouri state banking corporation (“Lender”), having an address of 12452 Olive Street Road, Creve Coeur, Missouri 63141. 
  
 W I T N E S S E T H: 
  
 WHEREAS, Borrower desires to obtain a loan of up to $2,500,000 (the “Loan”) from Lender on a revolving credit basis. 
  
 WHEREAS, subject to, and in reliance upon, the terms and conditions of this
Agreement and the representations and warranties made herein, all of which terms, conditions, representations and warranties are material and being relied on by Lender, Lender is willing to make the Loan to Borrower. 
  
 NOW, THEREFORE, in consideration of the premises, the mutual covenants and
agreements hereinafter set forth, and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, and each intending to be legally bound hereby, the parties agree as follows: 
  
 SECTION I. DEFINITIONS 
  
 As used herein: 
  
 “ACCOUNT DEBTOR” shall mean any Person who is and/or may become obligated to Borrower and the Subsidiaries under or on account of any of
the Accounts. 
  
 “ACCOUNTS” shall mean all trade
accounts receivable of Borrower and the Subsidiaries which have been invoiced by Borrower and the Subsidiaries. 
  
 “AFFILIATE” shall mean any Person (a) which directly or indirectly through one or more intermediaries controls, is controlled by or is
under common control with Borrower or any Subsidiary, (b) which directly or indirectly through one or more intermediaries beneficially owns or holds or has the power to direct the voting power of Twenty-Five Percent (25%) or more of any class of
capital stock or other equity interests of Borrower or any Subsidiary, (c) which has Twenty-Five Percent (25%) or more of any class of its capital stock or other equity interests beneficially owned or held, directly or indirectly, by Borrower or any
Subsidiary or (d) who is a director, officer or manager of Borrower or any Subsidiary. For purposes of this definition, “control” shall mean the power to direct the management and policies of a Person, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise. 
  

 “AGREEMENT” means this Agreement including any amendments hereto or modifications or
restatements hereof and any supplements hereto. 
  
 “BORROWER” means Accentia, Inc., a Delaware. 
  
 “BORROWING BASE” shall mean as of the date of any determination thereof, the lesser of $2,500,000 or Seventy-Five Percent (75%) of the aggregate face amount of all Eligible Accounts of Borrower and the Subsidiaries as of
the date of computation thereof which are listed (or which in accordance with GAAP should be listed on the books of Borrower and such Subsidiaries as of such date). 
  
 “BORROWING BASE CERTIFICATE” shall have the meaning ascribed thereto in Section 2.01(b). 
  
 “CAPITAL EXPENDITURE” shall mean any expenditure to purchase
or otherwise acquire a fixed asset (other than a Capitalized Lease Obligation) which, in accordance with GAAP, is required to be capitalized on the balance sheet of the Person making the same. 
  
 “CAPITALIZED LEASE” shall mean any lease of Property,
whether real and/or personal, by Borrower or any Subsidiary as lessee, which, in accordance with GAAP, is required to be capitalized on the balance sheet of such Person. 
  
 “CAPITALIZED LEASE OBLIGATIONS” shall mean, as of the date of any determination thereof, the amount of the
aggregate rental obligations due and to become due under all Capitalized Leases, under which Borrower or any Subsidiary is a lessee, which would be reflected as a liability on the balance sheet of Borrower and its Subsidiaries, on a consolidated
basis, in accordance with GAAP. 
  
 “CERCLA”
shall mean the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §9601 et seg., and as the same may from time to
time be further amended. 
  
 “CHANGE OF CONTROL
EVENT” shall occur if, at any time, Frank E. O’Donnell, Jr., M.D. ceases to (i) be the President of Borrower, (ii) to a Director of Borrower and the owner of at least 66-2/3% of the issued and outstanding stock of the Borrower, and
(iii) have the power to direct the management and policies of the Borrower. 
  
 “CLOSING DATE” means March 30, 2004, or such later date as Loan proceeds are advanced hereunder. 
  
 “CODE” shall mean the Internal Revenue Code of 1986, as amended, and any successor statute of similar import, together with the
regulations thereunder, in each case as in effect from time to time. References to sections of the Code shall be construed to also refer to any successor sections. 
  

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 “COLLATERAL” means any Property of Borrower or Subsidiaries which now or at any time
hereafter secures the payment or performance of any of the Obligations, including, without limitation, all Collateral described in the Security Agreement, and all proceeds, substitutes, replacements, accretions, accessions and products of any of the
foregoing; any and all other collateral now or hereafter providing security for the Loan and all other property, rights and interests described in Section 2.07 hereof. 
  
 “CONSOLIDATED INDEBTEDNESS” shall mean, as of the date of any determination thereof, all Indebtedness of
Borrower and all Subsidiaries as of such date, determined on a consolidated basis and in accordance with GAAP. 
  
 “DEFAULT” shall mean any event or condition the occurrence of which would, with the lapse of time or the giving of notice or both, become
an Event of Default. 
  
 “DISTRIBUTIONS” in
respect of any corporation or other entity shall mean dividends or other distributions in cash or Property on or in respect of the capital stock of such entity. 
  

“DOMESTIC BUSINESS DAY” shall mean any day except a Saturday, Sunday or legal holiday observed by the Lender. 
  
 “ELIGIBLE ACCOUNTS” shall mean all Accounts of Borrower
arising in the ordinary course of Borrower’s business from the sale of goods or the rendering of services which the Lender, in its reasonable credit judgment, deems to be an Eligible Account. Eligible Accounts shall not include the following:
(a) Accounts which remain unpaid for more than ninety (90) days after their original invoice dates and Accounts which are not due and payable within ninety (90) days after their original invoice dates; (b) Accounts with respect to which the Account
Debtor is a shareholder of Borrower or an Affiliate; (c) Accounts with respect to which payment by the Account Debtor is or may be conditional and Accounts commonly known as bill and hold Accounts or Accounts of a similar or like arrangement; (d)
Accounts with respect to which the Account Debtor is not a resident or citizen of or otherwise located in the continental United States of America, unless such Accounts are backed in full by an irrevocable letter of credit in form and substance
satisfactory to the Lender issued by a domestic commercial bank acceptable to the Lender; (e) Accounts with respect to which the Account Debtor is the United States of America, any state of the United States or any other governmental body or any
department, agency or instrumentality of any of the foregoing, unless such Accounts are duly assigned to the Lender in accordance with all applicable governmental and regulatory rules and regulations (including, without limitation, the Federal
Assignment of Claims Act of 1940, as amended, if applicable) so that the Lender is recognized by the Account Debtor to have all of the rights of an assignee of such Accounts; (f) Accounts which are not invoiced (and dated as of such date) and sent
to the Account Debtor thereof concurrently with or not later than five (5) days after the shipment and delivery to said Account Debtor of the goods giving rise thereto or the performance of the services giving rise thereto; (g) Accounts arising from
a consignment sale, a “sale on approval” or a “sale or return”; (h) Accounts which are subject to any dispute, offset, counterclaim, discount or other claim or defense on the part of the Account Debtor or to any claim on the part
of the Account Debtor contesting or denying liability under such Account; (i) the Account Debtor has commenced a voluntary case under the federal bankruptcy laws, as now 

  

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constituted or hereafter amended, or made an assignment for the benefit of creditors, or a decree or order for relief has been entered by a court having
jurisdiction in the premises in respect of the Account Debtor in an involuntary case under the federal bankruptcy laws, as now constituted or hereafter amended, or any other petition or other application for relief under the federal bankruptcy laws
has been filed against the Account Debtor, or if the Account Debtor has failed, suspended business, ceased to be solvent, or consented to or suffered a receiver, trustee, liquidator or custodian to be appointed for it or for all or a significant
portion of its assets or affairs; (j) Accounts which are not subject to a first priority perfected security interest in favor of the Lender. 
  
 “ENVIRONMENTAL CLAIM” shall mean any administrative, regulatory or judicial action, judgment, order, consent decree, suit, demand, demand
letter, claim, Lien, notice of non-compliance or violation, investigation or other proceeding arising (a) pursuant to any Environmental Law or governmental or regulatory approval issued under any such Environmental Law, (b) from the presence, use,
generation, storage, treatment, Release, threatened Release, disposal, remediation or other existence of any Hazardous Substance, (c) from any removal, remedial, corrective or other response action pursuant to an Environmental Law or the order of
any governmental or regulatory authority or agency, (d) from any third party seeking damages, contribution, indemnification, cost recovery, compensation, injunctive or other relief in connection with a Hazardous Substance or arising from alleged
injury or threat of injury to health, safety, natural resources or the environment or (e) from any Lien against any Property owned, leased or operated by Borrower or any Subsidiary in favor of any governmental or regulatory authority or agency in
connection with a Release, threatened Release or disposal of a Hazardous Substance. 
  
 “ENVIRONMENTAL LAW” shall mean any Federal, state, local, foreign or other statute, law, rule, regulation, order, consent decree, judgment, permit, license, code, covenant, deed restriction, common
law, treaty, convention, ordinance or other requirement relating to public health, safety or the environment, including, without limitation, those relating to Releases, discharges or emissions to air, water, land or groundwater, to the withdrawal or
use of groundwater, to the use and handling of polychlorinated biphenyls or asbestos, to the disposal, treatment, storage or management of hazardous or solid waste, Hazardous Substances or crude oil, or any fraction thereof, to exposure to toxic or
hazardous materials, to the handling, transportation, discharge or release of gaseous or liquid Hazardous Substances and any rule, regulation, order, notice or demand issued pursuant to such law, statute or ordinance, in each case applicable to any
of the Property owned, leased or operated by the Borrower or any Subsidiary or the operation, construction or modification of any such Property, including, without limitation, the following: CERCLA, the Solid Waste Disposal Act, as amended by the
Resource Conservation and Recovery Act of 1976 and the Hazardous and Solid Waste Amendments of 1984, the Hazardous Materials Transportation Act, as amended, the Federal Water Pollution Control Act, as amended by the Clean Water Act of 1976, the Safe
Drinking Water Control Act, the Clean Air Act of 1966, as amended, the Toxic Substances Control Act of 1976, the Occupational Safety and Health Act of 1970, as amended, the Emergency Planning and Community Right-to-Know Act of 1986, the National
Environmental Policy Act of 1975, the Oil Pollution Act of 1990 and any similar or implementing state or local law, and any state or local statute and any further amendments to these laws providing for financial responsibility for 

  

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cleanup or other actions with respect to the Release or threatened Release of Hazardous Substances or crude oil, or any fraction thereof and all rules,
regulations, guidance documents and publication promulgated thereunder. 
  
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, and any successor statute of similar import, together with the regulations thereunder, in each case as in effect from time to time.
References to sections of ERISA shall be construed to also refer to any successor sections. 
  
 “ERISA AFFILIATE” shall mean any corporation, trade or business that is, along with Borrower, any of the Borrower or any Subsidiary, a member of a controlled group of corporations or a controlled
group of trades or businesses, as described in Sections 414(b) and 414(c), respectively, of the Code or Section 4001 of ERISA. 
  
 “ERISA EVENT” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by the Borrower or any ERISA Affiliate from a
Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a substantial cessation of operations which is treated as such a withdrawal; (c) a complete or
partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Pension Plan amendment as a
termination under Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which might reasonably be expected to constitute grounds under Section 4042
of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any liability exceeding Fifty Thousand and 00/100 Dollars ($50,000.00) under Title IV of ERISA, other
than PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate. 
  
 “EVENT OF DEFAULT” shall have the meaning ascribed thereto in Section 5.01. 
  
 “FINANCIAL STATEMENTS” means balance sheets and statements of income and capital accounts for Borrower and
the Subsidiaries for the applicable fiscal year. 
  
 “GAAP” shall mean, at any time, generally accepted accounting principles at such time in the United States. 
  
 “GUARANTEE” by any Person shall mean any obligation (other than endorsements of negotiable instruments for deposit or collection in the
ordinary course of business), contingent or otherwise, of such Person guaranteeing, or hi effect guaranteeing, any Indebtedness, liability, dividend or other obligation of any other Person (the “primary obligor”) in any manner, whether
directly or indirectly, including, without limitation, all obligations incurred through an agreement, contingent or otherwise, by such Person: (a) to purchase such Indebtedness or obligation or any Property constituting security therefor, (b) to
advance or supply funds (i) for the purchase or payment of such Indebtedness or obligation, (ii) to maintain working capital or other balance sheet condition or otherwise to advance or make available funds for the purchase 

  

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or payment of such Indebtedness or obligation, (iii) to lease property or to purchase securities or other property or services primarily for the purpose of
assuring the owner of such Indebtedness or obligation of the ability of the primary obligor to make payment of the Indebtedness or obligation or (iv) otherwise to assure the owner of the Indebtedness or obligation of the primary obligor against loss
in respect thereof. For the purposes of all computations made under this Agreement, a Guarantee in respect of any Indebtedness for borrowed money shall be deemed to be Indebtedness equal to the then outstanding principal amount of such Indebtedness
for borrowed money which has been guaranteed or such lesser amount to which the maximum exposure of the guarantor shall have been specifically limited, and a Guarantee in respect of any other obligation or liability or any dividend shall be deemed
to be Indebtedness equal to the amount of such obligation, liability or dividend required to be shown as a liability under GAAP on the balance sheet of such Person or such lesser amount to which the maximum exposure of the guarantor shall have been
specifically limited. Guarantee when used as a verb shall have a correlative meaning. 
  
 “GUARANTORS” shall mean Francis O’Donnell, Jr. and The Francis E. O’Donnell, Jr. Irrevocable Trust No. 1, dated May 25, 1990. 
  
 “HAZARDOUS SUBSTANCE” shall mean any hazardous or toxic material, substance or waste, pollutant or
contaminant which is regulated under any Environmental Law or any other statute, law, ordinance, rule or regulation of any Federal, state, local, foreign or other body, instrumentality, agency, authority or official having jurisdiction over any of
the Property owned, leased or operated by Borrower or any Subsidiary or its use, including, without limitation, any material, substance or waste which is: (a) defined as a hazardous substance under Section 311 of the Federal Water Pollution Control
Act (33 U.S.C. §§1317), as amended; (b) regulated as a hazardous waste under Section 1004 or Section 3001 of the Federal Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act (42 U.S.C. §§6901
et seq.), as amended; (c) defined as a hazardous substance under Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. §§9601 et seq.), as amended; or (d) defined or
regulated as a hazardous substance or hazardous waste under any rules or regulations promulgated under any of the foregoing statutes. 
  
 “INDEBTEDNESS” shall mean, with respect to any Person, without duplication, all indebtedness, liabilities and obligations of such Person
which in accordance with GAAP are required to be classified upon a balance sheet of such Person as liabilities of such Person, and in any event shall include all (a) obligations of such Person for borrowed money or which have been incurred in
connection with the purchase or other acquisition of Property, (b) obligations secured by any Lien (other than mechanics’, materialman’s, architect’s, or similar Lien arising in the ordinary course of a construction business) on, or
payable out of the proceeds of or production from, any Property owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligations, (c) indebtedness, liabilities and obligations of third parties,
including joint ventures and partnerships of which such Person is a venturer or general partner, recourse to which may be had against such Person, (d) obligations created or arising under any conditional sale or other title retention agreement with
respect to Property acquired by such Person, notwithstanding the fact that the rights and remedies of the seller, lender or lessor under such agreement in the event of default are limited to repossession or sale 

  

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of such Property, (e) Capitalized Lease Obligations of such Person, (f) the aggregate undrawn face amount of all letters of credit issued for the account of
and/or upon the application of such Person together with all unreimbursed drawings with respect thereto, and (g) trade account payables and all other liabilities of such Person as defined by GAAP. 
  
 “INTERCOMPANY DOCUMENTS” are the following: Intercompany
Revolving Credit Agreement by and between Borrower and the Subsidiaries, Intercompany Notes from each of the Subsidiaries evidencing such Subsidiary’s borrowing under the Intercompany Revolving Credit Agreement and the Intercompany Security
Agreement from each Subsidiary to Borrower securing the indebtedness of such Subsidiary to Borrower and the UCC-l’s relative thereto. 
  
 “INTERCOMPANY NOTE PLEDGE AGREEMENT” shall mean that agreement whereby Borrower pledges to Lender all of its right, title and interest in
the Intercompany Notes. 
  
 “INTEREST RATE” shall
mean the Prime Rate plus one percent (1%). 
  
 “INVESTMENT” shall mean any investment by Borrower or any Subsidiary in any Person, whether payment therefor is made in cash or capital stock of Borrower or any Subsidiary, and whether such investment is by acquisition of
stock or Indebtedness, or by loan, advance, transfer of Property out of the ordinary course of business, capital contribution, equity or profit sharing interest or extension of credit on terms other than those normal in the ordinary course of
business or otherwise. 
  
 “LAWS” means all
ordinances, statutes, rules, regulations, orders, injunctions, writs or decrees of any government or political subdivision or agency or authority thereof (including, without limitation, the states of Missouri, Illinois and Delaware), or of any court
or similar entity having jurisdiction over Borrower or the Collateral. 
  
 “LIEN” shall mean any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on common law, statute or contract, including, without
limitation, any security interest, mortgage, deed of trust, pledge, hypothecation, judgment lien or other lien or encumbrance of any kind or nature whatsoever, any conditional sale or trust receipt, any lease, consignment or bailment for security
purposes and any Capitalized Lease. The term “Lien” shall include reservations, exceptions, encroachments, easements, rights-of-way, covenants, conditions, restrictions, leases and other title exceptions and encumbrances affecting
Property. 
  
 “LOAN” shall mean that certain
revolving credit loan of up to $2, 500,000 to be made by Lender to Borrower, pursuant to this Agreement. 
  
 “LOAN DOCUMENTS” means this Agreement, the Note, the Security Agreement and all financing statements hi connection therewith, and any and
all other documents or instruments now or hereafter evidencing or securing the Loan, and all those documents specified in Section 2.07 hereof and each and every other document to be delivered from time to time pursuant to this Agreement with respect
to the Loan or otherwise. 
  

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 “LOCK BOX ACCOUNT” shall have the meaning ascribed to that term in Section 2.07 hereof.

  
 “LOCK BOX AGREEMENT” shall have the meaning
ascribed to that term in Section 2.07 hereof. 
  
 “MATERIAL ADVERSE EFFECT” shall mean (a) a material adverse effect on the Properties, assets, liabilities, business, operations, prospects, income or condition (financial or otherwise) of the Borrower and its Subsidiaries
taken as a whole, (b) material impairment of Borrower’s ability to perform any of its obligations under this Agreement, the Note, or any of the other Loan Documents or (c) material impairment of the enforceability of the rights of, or benefits
available to, the Lender under this Agreement, the Note, or any of the other Loan Documents. 
  
 “MATURITY DATE” means the second anniversary of the date of the Note. 
  
 “MULTI-EMPLOYER PLAN” shall mean a “multi-employer plan” as defined in Section 4001(a)(3) of ERISA which is maintained for
employees of Borrower, any Subsidiary or any ERISA Affiliate or to which Borrower, any Subsidiary or any ERISA Affiliate has contributed in the past or currently contributes. 
  
 “NET WORTH” shall mean the sum of the following items as shown on the consolidated balance sheet of
Borrower and its Subsidiaries: (i) common stock, plus (ii) retained earnings, plus (iii) paid in capital, minus (iv) treasury stock, and minus (v) contract rights, licenses, patents, trademarks, trade names, good will and other similar assets.

  
 “NOTE” means the Revolving Credit Note
delivered to Lender, a copy of which is attached hereto as Exhibit A. 
  
 “NOTICE OF REVOLVING CREDIT BORROWING” shall have the meaning ascribed thereto in Section 2.02. 
  
 “OBLIGATIONS” means any and all present and future indebtedness, liabilities and obligations of Borrower to Lender respecting this Loan,
including, without limitation, the following obligations of Borrower: 
  
 A. To pay the principal of and interest on the Note in accordance with the terms thereof and to satisfy all of its other obligations and liabilities to Lender under the Loan Documents; 
  
 B. To repay to Lender all amounts advanced by Lender
hereunder, or under any of the other Loan Documents; and 
  
 C. To reimburse Lender, on demand, for all of Lender’s expenses and costs, including the reasonable fees and expenses of its counsel, agents and advisors, in 

  

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connection with the Loan and enforcement of the Loan Documents, or any of them, whether or not litigation is commenced. 
  
 “OBLIGOR” shall mean the Borrower, each Guarantor and each
other Person who is or shall at any time hereafter become primarily or secondarily liable on any of the Obligations or who grants the Lender a Lien upon any of the Property of such Person as security for any of the Obligations. 
  
 “OCCUPATIONAL SAFETY AND HEALTH LAWS” shall mean the
Occupational Safety and Health Act of 1970, as amended, and any other Federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to or imposing liability or standards of conduct concerning employee
health and/or safety, as now or at any time hereafter in effect. 
  
 “OPERATING LEASE” shall mean any lease of Property, whether real and/or personal, by a Person as lessee which is not a Capitalized Lease. 
  
 “OPERATING LEASE EXPENSE” shall mean, for the period in question, the aggregate amount of all Operating
Lease Expenses during such period, determined in accordance with GAAP. 
  
 “OPERATING LEASE EXPENSES” shall mean with respect to any Person, for the period in question, the aggregate amount of rental and other expenses incurred by such Person in respect of Operating Leases during such period, all
determined in accordance with GAAP. 
  
 “PBGC”
shall mean the Pension Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under ERISA. 
  
 “PENSION PLAN” shall mean a “pension plan,” as such term is defined in Section 3(2) of ERISA, which is established or
maintained by Borrower, any Subsidiary or any ERISA Affiliate, other than a Multi-Employer Plan. 
  
 “PERSON” shall mean any individual, sole proprietorship, partnership, joint venture, limited liability company, trust, unincorporated
organization, association, corporation, institution, entity or government (whether national, Federal, state, county, city, municipal or otherwise, including, without limitation, any instrumentality, division, agency, body or department thereof).

  
 “PRIME RATE” shall mean the interest rate
announced from time to time by Lender as its “prime rate” on commercial loans (which rate shall fluctuate as and when said prime rate shall change). Borrower acknowledges that such “prime rate” is a reference rate and does not
necessarily represent the lowest or best rate offered by Lender to its customers. 
  
 “PROPERTY” shall mean any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible. Properties shall mean the plural of Property. For purposes of
this Agreement, Borrower and each Subsidiary shall be deemed to be the owner of 

  

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any Property which it has acquired or holds subject to a conditional sale agreement, financing lease or other arrangement pursuant to which title to the
Property has been retained by or vested in some other Person for security purposes. 
  
 “RCRA” shall mean the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976 and Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§6901 et
seq., and any future amendments. 
  
 “RELEASE”
shall mean any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping or disposing into the environment, including, without limitation, the abandonment or discarding of barrels, drums,
containers, tanks and/or other receptacles containing (or containing traces of) any Hazardous Substance. 
  
 “REPORTABLE EVENT” shall have the meaning given to such term in ERISA. 
  
 “REVOLVING CREDIT AVAILABILITY” shall mean the amount identified as “Revolving Credit
Availability” on the most recent Borrowing Base Certificate (in the form of Exhibit C attached hereto) delivered to Lender in accordance with Section 2.01 below. 
  
 “REVOLVING CREDIT LOANS” shall have the meaning ascribed thereto in Section 2.01(a). 
  
 “REVOLVING CREDIT PERIOD” shall mean the period commencing
on the date of this Agreement and ending March 30, 2005. 
  
 “SECURITY AGREEMENT” shall mean that certain Assignment of Security Agreement and Collateral dated as of the date hereof and executed by the Borrower in favor of the Lender, in the form of Exhibit B attached hereto,
as the same may from time to time be amended, modified, extended, renewed or restated, by an instrument in writing signed by all parties thereto. 
  
 “SUBSIDIARY” shall mean any corporation or other entity of which more than Fifty Percent (50%) of the issued and outstanding capital
stock or other equity interests entitled to vote for the election of directors or persons performing similar functions (other than by reason of default in the payment of dividends or other distributions) is at the time owned directly or indirectly
by Borrower and/or any Subsidiary. 
  
 “TOTAL OUTSTANDING
REVOLVING CREDIT LOANS” shall mean, as of any date, the aggregate principal amount of all Revolving Credit Loans outstanding as of such date. 
  
 “UNLIMITED GUARANTY” shall mean that Continuing Contract of Guaranty, dated as of even date herewith, and executed and delivered by the
Guarantors. 
  
 “VOTING STOCK” shall mean, with
respect to any corporation, any shares of stock of such corporation whose holders are entitled under ordinary circumstances to vote for the election of directors of such corporation (irrespective of whether at the time stock of any other class or
classes shall have or might have voting power by reason of the happening of any contingency). 
  

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 “WELFARE PLAN” shall mean a “welfare plan” as such term is defined in Section
3(1) of ERISA, which is established or maintained by Borrower, any Subsidiary or any ERISA Affiliate, other than a Multi-Employer Plan. 
  
 1.02. Accounting Terms and Determinations. Except as otherwise specified in this Agreement, all accounting terms used in this Agreement shall be
interpreted, all accounting determinations under this Agreement shall be made and all financial statements required to be delivered under this Agreement shall be prepared in accordance with GAAP as in effect from time to time, applied on consistent
basis (except for changes approved by Lender and by Borrower’s independent certified public accountants). 
  
 SECTION II. THE LOAN TERMS 
  
 2.01. Loan. 
  
 (a) Subject to compliance by
Borrower with all of the terms and conditions hereinafter set forth, and predicated on the representations and warranties of Borrower hereunder, all of which are material and are being relied upon by Lender, being true and complete as of closing and
as of each date of funding, and so long as no Default or Event of Default has occurred and is continuing, during the Revolving Credit Period, Lender agrees to advance funds to Borrower (a “Revolving Credit Loan”), from time to time,
pursuant to Section 2.03, not to exceed, in the aggregate, the from time to time, Borrowing Base. Within the foregoing limits, Borrower may borrow under this Section 2.01(a), prepay under Section 2.05 and reborrow at any time during the Revolving
Credit Period under this Section 2.01 (a). All advances not paid prior to the last day of the Revolving Credit Period, together with all accrued and unpaid interest thereon and all fees and other amounts owing by Borrower to the Lender with respect
thereto, shall be due and payable on the last day of the Revolving Credit Period. 
  
 (b) Borrower shall deliver to Lender as soon as possible following the execution of this Agreement (with respect to the month ended March 31, 2004) and on the thirtieth (30th) day of each month thereafter commencing
April, 2004, a Borrowing Base Certificate in the form of Exhibit C attached hereto and incorporated herein by reference (a “Borrowing Base Certificate”) (together with such supporting information as the Lender may reasonably request
in connection therewith) setting forth: 
  
 (i)
the Borrowing Base and its components as of the end of the immediately preceding month; 
  
 (ii) the aggregate principal amount of all Revolving Credit Loans outstanding as of the end of the immediately preceding month; and

  
 (iii) the aggregate undrawn face amount of
all Letters of Credit outstanding as of the end of the immediately preceding month plus all unreimbursed drawings with respect thereto. 
  

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 The Borrowing Base shown in such Borrowing Base Certificate shall be and remain the Borrowing Base hereunder until the
next Borrowing Base Certificate is delivered to the Lender, at which time the Borrowing Base shall be the amount shown in such subsequent Borrowing Base Certificate. Each Borrowing Base Certificate shall be certified (subject to normal year-end
adjustments) as being true, correct and complete in all material respects by the President or the chief financial officer of Borrower. 
  
 (c) If at any time the Total Outstanding Revolving Credit Loans are greater than the Borrowing Base as shown on the most recent Borrowing Base
Certificate, Borrower shall be automatically required (without demand or notice of any kind by the Lender, all of which are hereby expressly waived by Borrower) to immediately repay the Revolving Credit Loans and/or surrender for cancellation the
outstanding Letters of Credit, in either case in an amount sufficient to reduce the amount of the Total Outstanding Credit Loans to the amount of the Borrowing Base, and to reduce the Letter of Credit Obligations to the Letter of Credit Sublimit.

  
 2.02. Method of Borrowing. 
  
 (a) Borrower shall give notice (a “Notice of Revolving Credit
Borrowing”) to the Lender by 10:00 a.m. (St. Louis time) on the Domestic Business Day of each Revolving Credit Loan to be made to Borrower, specifying: 
  
 (i) the date of such Revolving Credit Loan, which shall be a Domestic Business Day; and 
  
 (ii) the aggregate principal amount of such Revolving Credit
Loan. 
  
 Such Notice of Revolving Credit Borrowing may be delivered by fax or
e-mail, or by telephone. 
  
 (b) A Notice of Revolving Credit
Borrowing shall not be revocable by Borrower. 
  
 (c) Not later
than 2:00 p.m. (St. Louis time) on the date of each Revolving Credit Loan, Lender shall make available such Revolving Credit Loan, in Federal or other funds immediately available in St. Louis, Missouri, to the Borrower by crediting such funds to a
demand deposit account of Borrower at Lender. 
  
 (d) Borrower
hereby irrevocably authorizes Lender to rely on telephonic, telegraphic, telecopy, telex or written instructions of any person identifying himself or herself as one of the individuals listed on Schedule 2.02 attached hereto (or any other
individual from time to time authorized to act on behalf of Borrower pursuant to a resolution adopted by the Board of Directors of Borrower and certified by the Secretary of Borrower and delivered to the Lender) (each, an “Authorized
Person”) with respect to any request to make a Revolving Credit Loan or a repayment hereunder, and on any signature which the Lender believes to be genuine, and Borrower shall be bound thereby in the same manner as if such individual were
actually 

  

 12 

 
indemnify the Lender and to hold the Lender harmless from and against any and all claims, demands, damages, liabilities, losses, costs and expenses
(including, without limitation, reasonable attorneys’ fees and expenses) relating to or arising out of or in connection with the acceptance of instructions purportedly given by any Authorized Person for making Revolving Credit Loans or
repayments hereunder. 
  
 2.03. The Note. The Revolving
Credit Loan shall be evidenced by and payable as to principal and interest in accordance with the terms of a recourse, negotiable revolving credit promissory note of Borrower (the “Note”), dated as of the date hereof, being in the original
principal amount of $2, 500,000, and substantially in the form of Exhibit A attached hereto and incorporated by reference herein. Lender shall record in its books and records the date, amount, type and maturity of each Revolving Credit Loan
made by it and the date and amount of each payment of principal and/or interest made by Borrower with respect thereto; provided, however, that the obligation of Borrower to repay each Revolving Credit Loan made to Borrower under this Agreement shall
be absolute and unconditional, notwithstanding any failure of Lender to make any such recordation or any mistake by Lender in connection with any such recordation. The books and records of Lender showing the account between Lender and Borrower shall
be conclusive evidence of the items set forth therein in the absence of demonstrable error. 
  
 2.04. Interest Rates and Interest Payments. So long as no Event of Default has occurred and is continuing, the Revolving Credit Loan shall bear interest on the outstanding principal amount thereof, for each day
from the date such Revolving Credit Loan is made until it becomes due, at the Interest Rate. So long as any Event of Default has occurred and is continuing, the Revolving Credit Loan shall bear interest on the outstanding principal amount thereof,
at a per annum rate equal to the Prime Rate plus five percent (5%). Such interest shall be payable monthly in arrears on the thirtieth (30th) day of each month, commencing on the later of April 30, 2004, and at the maturity of the Note (whether by reason of acceleration or otherwise). From and after the maturity of the Note, whether by reason of acceleration or
otherwise, the Revolving Credit Loan shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the Prime Rate plus five percent (5%). Interest shall be computed on the basis of a year of 360 days and paid for the
actual number of days elapsed. 
  
 2.05. Voluntary
Prepayments. Borrower may upon notice to the Lender, pay, without penalty or premium, the Revolving Credit Loan, in whole at any time, or in part from time to time. 
  
 2.06. Mandatory Prepayments. The Borrower is required to prepay the Note (or, as regards Letter of Credit
Obligations, to surrender for cancellation the applicable outstanding Letters of Credit) whenever, and as often as may be necessary to keep, the unpaid principal balance thereof from exceeding the Borrowing Base. 
  
 2.07. Collateral for Obligations of Borrower to Lender; Establishment of
Lock Box Arrangement. 
  
 (a) To secure and provide for the
prompt payment of, or on account of, all Obligations hereunder, Borrower agrees to and does hereby assign, transfer and convey, and grant to 

  

 13 

 
Lender a continuing security interest and lien, all in form acceptable to Lender, in and to the Collateral. Borrower shall execute or cause to be executed
any and all documents reasonably requested from time to time by Lender (such documents to be in form and substance reasonably satisfactory to Lender) to perfect Lender’s security interest or lien in the Collateral, including but not limited to
this Agreement, the Note, the Security Agreement, the Intercompany Note Pledge Agreement and such Uniform Commercial Code financing statements, collateral schedules, stock powers, original stock certificates and other documents as Lender may require
in connection therewith. 
  
 (b) Borrower will instruct its
Account Debtors, if any, and shall cause each of its Subsidiaries to instruct such Subsidiary’s Account Debtors to remit all accounts payable to a lock box account established with Lender (the “Lock Box Account”) to which Lender shall
have sole access and control. All deposits to such Lock Box Account shall constitute additional Collateral and shall not be deemed payment of the Obligations. Until such time as an uncured Event of Default occurs, such payables so received will be
deposited daily by Lender into the account of each such Subsidiary with Lender. Upon the occurrence of an uncured Event of Default Lender shall apply the payables as it so elects. The parties hereto and the Subsidiaries agree to enter into a lock
box agreement, substantially in the form of Exhibit F attached hereto (the “Lock Box Agreement”). 
  
 2.08. Conditions Precedent to the Closing of this Loan. Set forth below is a list of the documents to be executed and delivered, and the actions to
be taken, all of which are conditions precedent to the closing of this Loan, as follows: 
  
 (a) This Agreement and the Note, each duly executed by Borrower; 
  
 (b) The Security Agreement in the form of Exhibit B and Intercompany Note Pledge Agreement in the form of Exhibit D hereto and such Uniform
Commercial Code financing statements, collateral schedules, stock powers, original stock certificates and other documents as Lender may require in connection therewith, each duly executed by Borrower; 
  
 (c) The Unlimited Guaranty: 
  
 (d) Completion by Lender of its review of all material, licenses, contracts
and contingent liabilities; 
  
 (e) A copy of the resolutions of
the Board of Directors of the Borrower duly adopted, which authorize the execution, delivery and performance of this Agreement, the Note, the Security Agreement, the Intercompany Note Pledge Agreement and the other Loan Documents to be executed by
Borrower, certified by its secretary; 
  
 (f) A copy of the
resolutions of the board of Directors of each Subsidiary duly adopted which authorize the execution, delivery and performance of the Intercompany 

  

 14 

 
Documents, certified by the secretary thereof (or comparable officer in the case of a Subsidiary which is not a corporation); 
  
 (g) A copy of the Certificate and Articles of Incorporation of Borrower and
any amendments thereto, the By-laws of Borrower, and an incumbency certificate, certified by the Secretary of Borrower, and Certificates of Good Standing of Borrower in the State of its incorporation; 
  
 (h) For each Subsidiary, a copy of the Certificate and Articles of
Incorporation of such Subsidiary and any amendments thereto, the By-Laws of such Subsidiary, and an incumbency certificate, all certified by the Secretary of such Subsidiary and a Certificate of Good Standing for such Subsidiary in the State of its
incorporation; 
  
 (i) The initial Borrowing Base Certificate and
the Notice of Revolving Credit Borrowing required by Sections 2.01(b) and 2.02; 
  
 (j) Evidence of the proper filing of UCC-1 Financing Statement perfecting the first priority security interests in favor of the Lender in the Collateral; 
  
 (k) A Subordination Agreement executed by Harbinger Mezzanine Partners, L.P. (“Harbinger”) and Lender whereby
Harbinger subordinates its security interest in the accounts receivable of TEAMM Pharmaceuticals, Inc. (the “TEAMM Collateral”) to that of Lender’s security interest in the same; 
  
 (l) Amendments to the UCC-1’s filed by Harbinger subordinating its
security interest in the TEAMM Collateral in and to that of Lender; 
  
 (m) Evidence satisfactory to the Lender that the insurance required of this Agreement and the other Loan Documents is in full force and effect together with loss payable endorsements in form and substance satisfactory to the Lender, duly
executed by the insurance company; 
  
 (n) copies of all
financial statements and other Exhibits and Schedules required by this Agreement and the other Loan Documents, together with a compliance certificate executed by the chief financial officer of Borrower evidencing that, after giving effect to the
transactions hereunder Borrower and any Subsidiaries, on a consolidated basis, will be in compliance with the covenants set out in Section 4.15; 
  
 (o) Such other agreements, documents, instruments and certificates as the Lender may reasonably request. 
  

 15 

 SECTION III. REPRESENTATIONS AND WARRANTIES 
  
 Borrower hereby represent and warrant to Lender that: 
  
 3.01. Existence and Power. Borrower and each Subsidiary: (a) is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization; (b) has all requisite corporate or other powers required to
carry on its business as now conducted; (c) has all requisite governmental and regulatory licenses, authorizations, consents and approvals required to carry on its business as now conducted, except such licenses, authorizations, consents and
approvals the failure to have could not reasonably be expected to have a Material Adverse Effect; and (d) is qualified to transact business as a foreign corporation (or applicable other entity) in, and is in good standing under the laws of, all
jurisdictions in which it is required by applicable law to maintain such qualification and good standing except for those states in which the failure to qualify or maintain good standing could not reasonably be expected to have a Material Adverse
Effect. 
  
 3.02. Authorization. The execution, delivery
and performance by Borrower of this Agreement, the Note, and the other Loan Documents to which each is a party are within the powers of Borrower and have been duly authorized by all necessary corporate or other action. 
  
 3.03. Binding Effect. This Agreement, the Note, the Security Agreement
and the other Loan Documents to which a Borrower is a party and which have been executed contemporaneously with or prior to the execution of this Agreement have been duly executed and delivered by Borrower and constitute the legal, valid and binding
obligations of Borrower enforceable in accordance with their respective terms, except as such enforceability may be limited by (a) bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and (b) general principles of
equity (regardless of whether such enforceability is considered in a proceeding in equity or at law); and the other Loan Documents to which Borrower is a party which were not executed contemporaneously with or prior to the execution of this
Agreement, when executed and delivered in accordance with this Agreement, will constitute the legal, valid and binding obligations of Borrower enforceable in accordance with their respective terms, except as such enforceability may be limited by (a)
bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
  
 3.04. Financial Statements. Borrower and the Subsidiaries have
furnished Lender with the following financial statements, identified by the chief financial officer of, respectively, Borrower and each such Subsidiary: (a) balance sheets and statements of income, retained earnings and cash flows of such party as
of and for the fiscal year ended September 30, 2003. all certified by the independent certified public accountant of such party, which financial statements have been prepared in accordance with GAAP consistently applied; and (b) unaudited
balance sheets and statements of income, retained earnings and cash flows of such party as of and for the month ended February 29, 2004 , certified by the chief financial officer of such party as being true, correct and complete in all
material respects and that such financial statements have been prepared in accordance with GAAP consistently applied. Borrower and each Subsidiary hereby represents 

  

 16 

 
and warrants to Lender that (a) said financial statements fairly present the condition of Borrower and such Subsidiary as of the dates thereof, (b) there has
been no material adverse change in the condition or operation, financial or otherwise, of Borrower and such Subsidiary from the condition or operation, financial or otherwise, of Borrower and such Subsidiary from that set forth in the information
furnished as of February 29, 2004, and (c) neither Borrower nor any Subsidiary had any direct or contingent liabilities which were not disclosed on said financial statements or the notes thereto (to the extent such disclosure is required by GAAP).

  
 3.05. Litigation. Except as disclosed on Schedule
3.05 attached hereto, there is no action or proceeding pending or, to the knowledge of Borrower, threatened against or affecting Borrower or any Subsidiary before any court, arbitrator or any governmental, regulatory or administrative body,
agency, instrumentality, authority or official which, if determined adversely against Borrower or any Subsidiary, could reasonably be expected to have a Material Adverse Effect. Neither Borrower nor any Subsidiary is in default with respect to any
order, writ, injunction, decision or decree of any court, arbitrator or any governmental, regulatory or administrative body, agency, instrumentality, authority or official, a default under which could reasonably be expected to have a Material
Adverse Effect. There are no outstanding judgments against Borrower or any Subsidiary. 
  
 3.06. Pension and Welfare Plans. Each Pension Plan and Welfare Plan complies in all material respects with ERISA and all other applicable statutes and governmental and regulatory rules and regulations; no
Reportable Event has occurred and is continuing with respect to any Pension Plan; neither Borrower nor any Subsidiary nor any ERISA Affiliate has withdrawn from any Multi-Employer Plan in a “complete withdrawal” or a “partial
withdrawal” as defined in Sections 4203 or 4205 of ERISA, respectively; neither Borrower nor any Subsidiary nor any ERISA Affiliate has entered into an agreement pursuant to Section 4204 of ERISA; neither Borrower nor any Subsidiary nor any
ERISA Affiliate has any withdrawal liability with respect to a Multi-Employer Plan; no steps have been instituted by Borrower or any Subsidiary or any ERISA Affiliate to terminate any defined benefit Pension Plan; no condition exists or event or
transaction has occurred in connection with any Pension Plan, any Pension Plan that is subject to Section 302 of ERISA, Multi-Employer Plan or Welfare Plan which could result in the incurrence by Borrower or any Subsidiary or any ERISA Affiliate of
any material liability, fine or penalty; and neither Borrower nor any Subsidiary nor any ERISA Affiliate is a “contributing sponsor” as defined in Section 4001(a)(13) of ERISA of a “single-employer plan” as defined in Section
4001(a)(15) of ERISA which has two or more contributing sponsors at least two of whom are not under common control. Except as disclosed on the consolidated financial statements of Borrower and its Subsidiaries delivered by Borrower to Lender,
neither Borrower nor any Subsidiary nor any ERISA Affiliate has any unfunded liability with respect to any Welfare Plan. 
  
 3.07. Tax Returns and Payment. Borrower and each Subsidiary have filed all Federal, state, local and other income and other tax returns which are
required to be filed and has paid all taxes which have become due and payable pursuant to such returns and all other taxes, assessments, fees and other governmental charges upon Borrower or such Subsidiary, as the case may be, and upon their
Properties, income and franchises which have become due and payable by Borrower or such Subsidiary, as the case may be, except those wherein the amount, 

  

 17 

 
applicability or validity are being contested by Borrower or such Subsidiary, as the case may be, by appropriate proceedings being diligently conducted in
good faith and in respect of which adequate reserves in accordance with GAAP have been established. There is no asserted or assessed (or to the knowledge of Borrower, proposed) tax deficiency against Borrower or any Subsidiary which, if determined
adversely against Borrower or any Subsidiary, could reasonably be expected to have a Material Adverse Effect. 
  
 3.08. Subsidiaries. Borrower has no Subsidiary other than as identified on Schedule 3.08 attached hereto. Schedule 3.08 correctly
sets forth the jurisdiction of organization, the number of shares of each class of common and preferred stock (or other ownership interests) authorized for such corporation, the number of outstanding and the percentage of the outstanding shares of
each such class owned, directly or indirectly, by Borrower. All of the issued and outstanding capital stock of each Subsidiary is duly authorized, validly issued and fully paid and nonassessable. Except as disclosed on Schedule 3.08 attached
hereto, the Borrower does not own or hold, directly or indirectly, any capital stock or equity security of, or any equity interest in, any corporation or business. Borrower may at any time amend, modify or supplement Schedule 3.08 by
notifying Lender in writing of any changes thereto, including any formation, acquisition, merger or liquidation of any Subsidiary or any change in the capitalization of any Subsidiary, in each case, in accordance with the terms of this Agreement,
and thereby the representations and warranties contained in this Section 3.08 shall be amended accordingly so long as such amendment, modification or supplement is made within thirty (30) days after the occurrence of any such changes in the facts
stated therein and that such changes reflect transactions that are permitted under this Agreement. 
  
 3.09. Compliance With Other Instruments; None Burdensome. Neither the Borrower nor any Subsidiary is a party to any contract, agreement, document
or instrument or subject to any charter or other corporate restriction which could reasonably be expected to have a Material Adverse Effect and which is not disclosed on the financial statements heretofore submitted to Lender; neither the execution
and delivery of the Loan Documents, the consummation of the transactions therein contemplated or the compliance with the provisions thereof by the Borrower will violate any law, rule, regulation, order, writ, judgment, injunction, decree or award
binding on Borrower, or any of the provisions of the Certificate of Incorporation or Bylaws (or equivalent) of Borrower or any of the provisions of any indenture, agreement, document, instrument or undertaking to which Borrower is a party or
subject, or by which Borrower or any Property of Borrower is bound, or conflict with or constitute a default thereunder or result in the creation or imposition of any Lien pursuant to the terms of any such indenture, agreement, document, instrument
or undertaking (other than in favor of Lender pursuant to the Loan Documents). No order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by, any governmental, regulatory,
administrative or public body or authority, or any subdivision thereof, or any other Person is required to authorize, or is required in connection with, the execution, delivery or performance of, or the legality, validity, binding effect or
enforceability of, any of the Loan Documents. 
  
 3.10. Other
Indebtedness, Guarantees and Capitalized Leases. Except as disclosed on Schedule 3.10 attached hereto, neither Borrower nor any Subsidiary is a borrower, guarantor or obligor with respect to, or a lessee under, any Indebtedness,
Guarantees or Capitalized Leases 

  

 18 

 
other than the Obligations. Borrower may at any time amend, modify or supplement Schedule 3.10 by notifying Lender in writing of any changes thereto,
and thereby the representations and warranties contained in this Section 3.10 shall be amended accordingly so long as such amendment, modification or supplement is made within thirty (30) days after the occurrence of any such changes in the facts
stated therein and that such changes reflect transactions that are permitted under this Agreement. 
  
 3.11. Labor Matters. Neither Borrower nor any Subsidiary is a party to any labor dispute which could reasonably be expected to have a Material
Adverse Effect. There are no strikes or walkouts relating to any labor contract to which Borrower or any Subsidiary is subject which could reasonably be expected to have a Material Adverse Effect. Hours worked and payments made to the employees of
Borrower and its Subsidiaries have not been in violation of (a) the Fair Labor Standards Act or (b) any other applicable law dealing with such matters, the violation of which could reasonably be expected to have a Material Adverse Effect. All
payments due from the Borrower or any Subsidiary, or for which any claim may be made against any of them, in respect of wages, employee health and welfare insurance and/or other benefits have been paid or accrued as a liability on their respective
books. 
  
 3.12. Title to Property. Borrower and each
Subsidiary is the sole owner of, or has the legal right to use and occupy, all Property it claims to own or which is necessary for Borrower or such Subsidiary to conduct its business. Each of the Borrower and each Subsidiary enjoys peaceful and
undisturbed possession in all material respects under all leases under which it is operating as a lessee. 
  
 3.13. Regulation U. The Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying margin stock (within the meaning of Regulation U of The Board of Governors of the Federal Reserve System, as amended) and no part of the proceeds of any Loan will be used, whether directly or indirectly, and whether
immediately, incidentally or ultimately (a) to purchase or carry margin stock or to extend credit to others for the purpose of purchasing or carrying margin stock, or to refund or repay indebtedness originally incurred for such purpose or (b) for
any purpose which entails a violation of, or which is inconsistent with, the provisions of any of the Regulations of The Board of Governors of the Federal Reserve System, including, without limitation, Regulations U, T or X thereof, as amended. If
requested by the Lender, Borrower shall furnish to the Lender a statement in conformity with the requirements of Federal Reserve Form U-l referred to in Regulation U. 
  
 3.14. Multi-Employer Pension Plan Amendments Act of 1980. Borrower and each Subsidiary is in compliance with the
Multi-Employer Pension Plan Amendments Act of 1980, as amended (“MEPPAA”), and has no liability for pension contributions pursuant to MEPPAA. 
  
 3.15. Investment Company Act of 1940; Public Utility Holding Company Act of 1935. Borrower is not an “investment company” as that term is
defined in, and is not otherwise subject to regulation under, the Investment Company Act of 1940, as amended. Borrower is not a “holding company” as that term is defined in, and is not otherwise subject to regulation under, the Public
Utility Holding Company Act of 1935, as amended. 
  

 19 

 3.16. Patents, Trademarks, Copyrights, Licenses, Etc. Except as disclosed on Schedule 3.16
attached hereto, neither Borrower nor any Subsidiary has any patents, patent applications, patent rights, trademarks, trademark applications, trademark rights, copyrights, licenses or other intellectual property which are material to the business of
Borrower or any Subsidiary. Borrower may at any time amend, modify or supplement Schedule 3.16 by notifying the Lender in writing of any changes thereto, and thereby the representations and warranties contained in the first sentence of this
Section 3.16 shall be amended accordingly so long as such amendment, modification or supplement is made within thirty (30) days after the occurrence of any such changes in the facts stated therein and that such changes reflect transactions that are
permitted under this Agreement. Borrower and each Subsidiary possesses all patents, patent rights, trademarks, trademark rights, trade names, trade name rights, copyrights, licenses and other intellectual property necessary to conduct its business
as presently conducted without conflict with any patent, patent right, trademark, trademark right, trade name, copyright, license or other intellectual property of any other Person, except where the failure to possess the same could not reasonably
be expected to have a Material Adverse Effect. 
  
 3.17.
Environmental and Safety and Health Matters. Except as disclosed on Schedule 3.17 attached hereto: (i) the operations of Borrower and each Subsidiary comply with all applicable Environmental Laws and all applicable Occupational Safety
and Health Laws, the violation or noncompliance with which could reasonably be expected to have a Material Adverse Effect; (ii) none of the operations of the Borrower or any Subsidiary is subject to any Environmental Claim or any judicial,
governmental, regulatory or administrative proceeding alleging the violation of any Occupational Safety and Health Law, which, if determined adversely against Borrower or Subsidiary, could reasonably be expected to have a Material Adverse Effect;
(iii) none of the operations of the Borrower or any Subsidiary is the subject of any Federal or state investigation evaluating whether any remedial action is needed to respond to any Release of Hazardous Substances or any unsafe or unhealthful
condition at any premises owned, leased or operated by Borrower or any Subsidiary, which, if determined adversely to Borrower or such Subsidiary, could reasonably be expected to have a Material Adverse Effect; (iv) neither Borrower nor any
Subsidiary has filed any notice under any Environmental Law or Occupational Safety and Health Law indicating or reporting (A) any past or present spillage, leakage or Release into the environment of, or treatment, storage or disposal of, any
Hazardous Substance or (B) any unsafe or unhealthful condition at any premises owned, leased or operated by Borrower or any Subsidiary; and (v) neither the Borrower nor any Subsidiary has any material contingent liability in connection with (A) any
spillage, disposal or Release into the environment of, or otherwise with respect to, any Hazardous Substances or (B) any unsafe or unhealthful condition at any premises owned, leased or operated by Borrower or such Subsidiary. 
  
 3.18. No Default. No Default or Event of Default under this Agreement
has occurred and is continuing. There is no existing default or event of default under or with respect to any indenture, contract, agreement, lease or other instrument to which Borrower or any Subsidiary is a party or by which any Property of
Borrower or any Subsidiary is bound or affected, a default under which could reasonably be expected to have a Material Adverse Effect. Each of the Borrower and each Subsidiary has and is in full compliance with and in good standing with respect to
all governmental and/or regulatory permits, licenses, certificates, consents and 

  

 20 

 
franchises necessary to continue to conduct its business as previously conducted by it and to own or lease and operate its Properties as now owned or leased
by it, the failure to have or noncompliance with which could reasonably be expected to have a Material Adverse Effect, and, to the best of Borrower’s knowledge, none of said permits, certificates, consents or franchises contain any term,
provision, condition or limitation more burdensome than such as are generally applicable to Persons engaged in the same or similar business as either of the Borrower or such Subsidiary, as the case may be. Neither Borrower nor any Subsidiary is in
violation of any applicable statute, law, rule, regulation or ordinance of the United States of America, of any state, city, town, municipality, county or of any other jurisdiction, or of any agency thereof, a violation of which could reasonably be
expected to have a Material Adverse Effect. 
  
 3.19.
Government Contracts. Neither Borrower nor any Subsidiary is a party to or bound by any supply or purchase agreements with the Federal government or any state or local government or any agency thereof, the termination or cancellation of which
could reasonably be expected to have a Material Adverse Effect. 
  
 3.20. Purchase and Other Commitments and Outstanding Bids. No material purchase or other commitment of Borrower or any Subsidiary is in excess of the normal, ordinary and usual requirements of its business, or was made at any price
in excess of the then current market price, or, to the best of Borrower’s knowledge, contains terms and conditions more onerous than those usual and customary in the applicable industry. There is no material outstanding bid, sales proposal,
contract or unfilled order of the Borrower or any Subsidiary which (a) will, or could if accepted, require the Borrower or any Subsidiary to supply goods or services at a cost to Borrower or any Subsidiary in excess of the revenues to be received
therefor or (b) quotes prices which do not include a markup over reasonably estimated costs consistent with past markups on similar business based on market conditions current at that time. 
  
 3.21. Real Property. Schedule 3.21 attached hereto sets forth a
true, correct and complete list of all real property owned or leased by Borrower or any Subsidiary (and, for each parcel of real property, stating whether it is owned or leased and whether it is a manufacturing facility, a distribution facility or a
sales office and, if it is leased facility, the basic terms of the lease (i.e. name and address of landlord, term of lease and amount of rent and other payments). Borrower may at any time amend, modify or supplement Schedule 3.21 by notifying
Lender in writing of any changes thereto, and thereby the representations and warranties contained in the first sentence of this Section 3.21 shall be amended accordingly so long as such amendment, modification or supplement is made within thirty
(30) days after the occurrence of any such changes in the facts stated therein and that such changes reflect transactions that are permitted under this Agreement. 
  
 3.22. Disclosure. Neither this Agreement nor any of the Exhibits or Schedules hereto nor any certificate or other
data furnished to Lender in writing by or on behalf of the Borrower or any Subsidiary in connection with the transactions contemplated by this Agreement contains any untrue or incorrect statement of a material fact or omits to state a material fact
necessary to make the statements contained herein or therein not misleading. To the best knowledge of Borrower, there is no fact peculiar to Borrower or any Subsidiary which presently has a Material Adverse Effect or in the future (so far as
Borrower can now foresee) could reasonably be expected to have 

  

 21 

 
a Material Adverse Effect, which has not heretofore been disclosed in writing by the Borrower to the Lender. 
  
 3.23. Borrower’s Capital. The authorized capital of Borrower is
as set out on Schedule 3.23 attached hereto. 
  
 SECTION IV.
BORROWER’S COVENANTS 
  
 Borrower covenants and agrees that,
so long as Lender has any obligation to make a Revolving Credit Loan hereunder and/or any of the Obligations remain unsatisfied, it will comply with the following covenants: 
  
 4.01. Information. Borrower will deliver or cause to be delivered to the Lender: 
  
 (a) as soon as available and in any event within one hundred
(120) days after the end of each fiscal year of Borrower, the balance sheet of Borrower as of the end of such fiscal year and the related statement of income, retained earnings and cash flows for such fiscal year, setting forth in each case, in
comparative form, the figures for the previous fiscal year, all such financial statements to be prepared on a consolidated basis for Borrower and all of its Subsidiaries in accordance with GAAP consistently applied and audited by and accompanied by
the unqualified opinion of independent certified public accountants selected by Borrower and reasonably acceptable to the Lender together with (i) a supplemental unaudited income statement with all consolidating entries through and including gross
profits, (ii) a certificate from such accountants to the effect that, in making the examination necessary for the signing of such annual audit report, such accountants have not become aware of any Default or Event of Default that has occurred and is
continuing, or, if such accountants have become aware of any such event, describing it and the steps, if any, being taken to cure it and (iii) the computations of such accountants evidencing compliance with the financial covenants contained in
Section 4.15 of this Agreement; 
  
 (b) as soon
as available and in any event within thirty (30) days after the end of each month, the balance sheet of Borrower as of the end of such month and the related statement of income, retained earnings and cash flows for such month and for the portion of
Borrower’s fiscal year ended at the end of such month, on a consolidated basis for Borrower and all of its Subsidiaries setting forth in each case in comparative form, (i) the figures for the corresponding month and the corresponding portion of
Borrower’s previous fiscal year, and (ii) Borrower’s budgeted projections for such month and for the portion of Borrower’s fiscal year ended at the end of such month, all in reasonable detail and satisfactory in form to the Lender and
accompanied by a supplemental income statement with all consolidating entries through and including gross profits and certified (subject to normal year-end adjustments and footnote disclosures) as to fairness of presentation, GAAP and consistency by
the President, Chief Operating Officer or the chief financial officer of Borrower; 
  

 22 

 (c) thirty (30) days after the end of each calendar quarter, a certificate of the
President, Chief Operating Officer or the chief financial officer of Borrower in the form attached hereto as Exhibit D and incorporated herein by reference, accompanied by supporting financial work sheets where appropriate, (i) evidencing
Borrower’s compliance with the financial covenants contained in Section 4.15 of this Agreement, (ii) stating whether there exists on the date of such certificate any Default or Event of Default and, if any Default or Event of Default then
exists, setting forth the details thereof and the action which Borrower is taking or proposes to take with respect thereto and (iii) certifying that all of the representations and warranties of Borrower and/or any other Obligor contained in this
Agreement and/or in any of the other Loan Documents are true and correct in all material respects on and as of the date of such certificate as if made on and as of the date of such certificate; 
  
 (d) as soon as available and in any event within ninety (90)
days after the beginning of each fiscal year of Borrower, a copy of the federal income tax return of Borrower for the prior fiscal year; 
  
 (e) with reasonable promptness, such further information regarding the business, affairs and financial condition of Borrower or any
Subsidiary as the Lender may from time to time reasonably request; and 
  
 (f) within thirty (30) days after the end of each month, a Borrowing Base Certificate as of the end of the preceding month. 
  
 4.02. Payment of Indebtedness. Borrower will, and will cause each Subsidiary to, (i) pay and discharge any and all Indebtedness payable or
Guaranteed by Borrower or such Subsidiary, as the case may be, and any interest or premium thereon, when due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise) in accordance with the agreement,
document or instrument relating to such Indebtedness or Guarantee (provided, however, that neither Borrower nor any Subsidiary shall be required to pay any such Indebtedness consisting of trade accounts payable the payment of which is being
contested in good faith and by appropriate proceedings being diligently conducted and for which adequate reserves in accordance with GAAP have been provided, except that Borrower or such Subsidiary, as the case may be, shall pay or cause to be paid
all such trade accounts payable forthwith upon the commencement of proceedings to foreclose any Lien which is attached as security therefor, unless such foreclosure is stayed by the filing of an appropriate bond in a manner reasonably satisfactory
to the Lender) and (ii) perform, observe and discharge in all material respects all covenants, conditions and obligations which are imposed upon Borrower or such Subsidiary, as the case may be, by any and all agreements, documents, instruments and
indentures evidencing, securing or otherwise relating to such Indebtedness or Guarantee. 
  
 4.03. Maintenance of Books and Records; Consultations and Inspections. Borrower will, and will cause each Subsidiary to, maintain books and records sufficient to permit the preparation of financial statements
in accordance with GAAP and in which true, correct and 

  

 23 

 
complete entries shall be made of all dealings and transactions in relation to its business. Borrower will, and will cause each Subsidiary to, permit the
Lender (and any Person appointed by the Lender) to discuss the affairs, finances and accounts of Borrower and each Subsidiary with the officers of Borrower and each Subsidiary and, upon oral or written notice to Borrower, its independent public
accountants, all at such reasonable times and as often as Lender may from time to time reasonably request. Borrower will also permit, and will cause each Subsidiary to permit, inspection of its Properties, books and records by the Lender during
normal business hours and at other reasonable times. Borrower will reimburse the Lender upon demand for all reasonable costs and expenses incurred by the Lender in connection with any such inspection conducted by the Lender while any Default or
Event of Default under this Agreement has occurred and is continuing. Borrower irrevocably authorizes Lender to, upon oral or written notice to Borrower, communicate directly with their independent public accountants and irrevocably authorize and
direct such accountants to disclose to the Lender any and all information with respect to the business and financial condition of Borrower and its Subsidiaries as the Lender may from time to time reasonably request in writing. 
  
 4.04. Payment of Taxes. Borrower will, and will cause each Subsidiary
to, duly file all Federal, state and local income tax returns and all other tax returns and reports of Borrower or such Subsidiary, as the case may be, which are required to be filed and duly pay and discharge promptly all taxes, assessments and
other governmental charges imposed upon it or any of its Property; provided, however, that neither Borrower nor any Subsidiary shall be required to pay any such tax, assessment or other governmental charge the payment of which is being contested in
good faith and by appropriate proceedings being diligently conducted and for which adequate reserves in accordance with GAAP have been provided, except that Borrower or such Subsidiary, as the case may be, shall pay or cause to be paid all such
taxes, assessments and governmental charges forthwith upon the commencement of proceedings to foreclose any Lien which is attached as security therefor, unless such foreclosure is stayed by the filing of an appropriate bond in a manner reasonably
satisfactory to the Lender. 
  
 4.05. Payment of Claims.
Borrower will, and will cause each Subsidiary to, promptly pay and discharge (i) all trade accounts payable in accordance with its usual and customary business practices as in effect on the date of this Agreement (but in no event later than thirty
(30) days after the due date thereof) and (ii) all claims for work, labor or materials which if unpaid does or could reasonably be expected to become a Lien upon any of its Property; provided, however, that neither Borrower nor any Subsidiary shall
be required to pay any such account payable or claim the payment of which is being contested in good faith and by appropriate proceedings being diligently conducted and for which adequate reserves in accordance with GAAP have been provided, except
that Borrower or such Subsidiary, as the case may be, shall pay or cause to be paid all such accounts payable and claims forthwith upon the commencement of proceedings to foreclose any Lien which is attached as security therefor, unless such
foreclosure is stayed by the filing of an appropriate bond in a manner reasonably satisfactory to the Lender. 
  
 4.06. Corporate Existence. Borrower will, and will cause each Subsidiary to, do all things necessary to (i) preserve and keep in full force and
effect at all times its corporate or other existence and all permits, licenses, franchises and other rights material to its business, be duly 

  

 24 

 
qualified to do business and be in good standing in all jurisdictions where the nature of its business or its ownership of Property requires such
qualification except for those jurisdictions in which the failure to qualify or be in good standing could not reasonably be expected to have a Material Adverse Effect. 
  
 4.07. Maintenance of Property. Borrower will, and will cause each Subsidiary to, at all times, preserve and maintain
all of the Property used or useful in the conduct of its business in good condition, working order and repair, ordinary wear and tear excepted. 
  
 4.08. Compliance with Laws, Regulations, Etc. Borrower will, and will cause each Subsidiary to, (i) comply with any and all laws, ordinances and
governmental and regulatory rules and regulations to which Borrower or such Subsidiary, as the case may be, is subject (including, without limitation all Occupational Safety and Health Laws and all Environmental Laws), the violation of which or
failure to comply with which could reasonably be expected to have a Material Adverse Effect and (ii) obtain any and all licenses, permits, franchises and other governmental and regulatory authorizations necessary to the ownership of its Properties
or to the conduct of its business, the failure to obtain which license, permit, franchise and/or other governmental or regulatory authorization could reasonably be expected to have a Material Adverse Effect. 
  
 4.09. Environmental Matters. Borrower will give Lender prompt written
notice of (i) any Environmental Claim or any other action or investigation with respect to the existence or potential existence of any Hazardous Substances instituted or threatened with respect to Borrower or any Subsidiary or any of the Properties
or facilities owned, leased or operated by Borrower or any Subsidiary which, if determined adversely to Borrower or any Subsidiary, could reasonably be expected to have a Material Adverse Effect and (ii) any condition or occurrence on any of the
Properties or facilities owned, leased or operated by Borrower or any Subsidiary which constitutes a violation in any material respect of any Environmental Laws or which gives rise to a reporting obligation or requires removal or remediation under
any Environmental Laws. Within thirty (30) days after the giving of any such notice, Borrower shall deliver to the Lender Borrower’s plan with respect to any removal or remediation required by any Environmental Law or any other applicable law,
rule or regulation and Borrower agrees to complete any such removal and/or remediation within the time required thereby. Borrower shall promptly provide the Lender with copies of all documentation relating thereto, and such other information with
respect to environmental matters as the Lender may reasonably request from time to time. 
  
 4.10. ERISA Compliance. If Borrower, any Subsidiary or any ERISA Affiliate shall have any Pension Plan, Borrower, such Subsidiary or such ERISA Affiliate, as the case may be, shall comply in all material
respects with all requirements of ERISA relating to such Pension Plan. Without limiting the generality of the foregoing, Borrower will not, and will not cause or permit any Subsidiary or any ERISA Affiliate to: 
  
 (a) permit any Pension Plan maintained by Borrower, any Subsidiary or any
ERISA Affiliate to engage in any nonexempt “prohibited transaction,” as such term is defined in Section 4975 of the Code; 
  

 25 

 (b) permit any Pension Plan maintained by Borrower, any Subsidiary or any ERISA Affiliate to incur any
“accumulated funding deficiency”, as such term is defined in Section 302 of ERISA, 29 U.S.C. § 1082, whether or not waived; 
  
 (c) terminate any Pension Plan in a manner which could result in the imposition of a Lien on any Property of Borrower, any Subsidiary or any ERISA
Affiliate pursuant to Section 4068 of ERISA, 29 U.S.C. § 1368; or 
  
 (d) take any action which would constitute a complete or partial withdrawal from a Multi-Employer Plan within the meaning of Sections 4203 or 4205 of Title IV of ERISA. 
  
 Notwithstanding any provision contained in this Section 4.10 to the contrary, an act by Borrower or any Subsidiary shall not
be deemed to constitute a violation of this Section 4.10 unless said action, individually or cumulatively with other acts of Borrower and its Subsidiaries, has or could reasonably be expected to have a Material Adverse Effect. 
  
 4.11. Notices. Borrower will notify the Lender in writing of any of
the following within three (3) Domestic Business Days after any officer of Borrower has actual knowledge thereof, describing the same and, if applicable, the steps being taken by the Person(s) affected with respect thereto: 
  
 (a) the occurrence of any Default or Event of Default under this Agreement;

  
 (b) the occurrence of any default or event of default by
Borrower, any other Obligor or any Subsidiary under any note, indenture, loan agreement, mortgage, deed of trust, security agreement, lease or other similar agreement, document or instrument to which Borrower, any other Obligor or any Subsidiary, as
the case may be, is a party or by which it is bound or to which it is subject; 
  
 (c) the institution of any litigation, arbitration proceeding or governmental or regulatory proceeding affecting Borrower, any other Obligor or any Subsidiary, whether or not considered to be covered by insurance, in
which the prayer or claim for relief seeks recovery of an amount in excess of $ 100,000 (or, if no dollar amount is specified in the prayer or claim for relief, in which there is a reasonable likelihood of recovery of an amount in excess of $
100,000) or any form of equitable relief which, if granted, could reasonably be expected to have a Material Adverse Effect; 
  
 (d) the entry of any judgment or decree against Borrower, any other Obligor or any Subsidiary; 
  
 (e) the occurrence of a Reportable Event with respect to any Pension Plan
for which the PBGC has not waived notice; the filing of a notice of intent to terminate a defined benefit Pension Plan by Borrower, any ERISA Affiliate or any Subsidiary; the institution of proceedings to terminate a defined benefit 

  

 26 

 
Pension Plan by the PBGC or any other Person; the withdrawal in a “complete withdrawal” or a “partial withdrawal” as defined in Sections
4203 and 4205, respectively, of ERISA by Borrower, any ERISA Affiliate or any Subsidiary from any Multi-Employer Plan; or the incurrence of any material increase in the contingent liability of Borrower or any Subsidiary with respect to any
“employee welfare benefit plan” as defined in Section 3(1) of ERISA which covers retired employees and their beneficiaries; 
  
 (f) the occurrence of any event which could reasonably be expected to have a Material Adverse Effect; 
  
 (g) any change in the name of Borrower, any other Obligor or any Subsidiary;

  
 (h) any proposed opening, closing or other change of any
place of business of Borrower or any Subsidiary; 
  
 (i) any
material change in Borrower’s or Subsidiary’s line(s) of business; 
  
 (j) the occurrence of any Change of Control Event; and 
  
 (k) the occurrence of such other events as the Lender may from time to time reasonably specify. 
  
 4.12. Insurance. Borrower will, and will cause each Subsidiary to, insure all of its Property of the character customarily insured by Persons
engaged in the same or similar businesses similarly situated, against loss or damage of the kind customarily insured against by such Persons, at replacement cost, unless higher limits or coverage are reasonably required in writing by the Lender (in
which event Borrower and/or the applicable Subsidiary will have thirty (30) days after written request by the Lender to obtain such additional insurance), and carry liability insurance and other insurance of a kind and in an amount generally carried
by Persons engaged in the same or similar businesses similarly situated, unless higher limits or coverage are reasonably required in writing by the Lender (in which event Borrower and/or the applicable Subsidiary will have thirty (30) days after
written request by the Lender to obtain such additional insurance). All insurance required by this Section 4.12 shall be with insurers rated B++ or better by A.M. Best Company (or accorded a similar rating by another nationally or internationally
recognized insurance rating agency of similar standing if A.M. Best Company is not then in the business of rating insurers or rating foreign insurers) or such other insurers as may from time to time be reasonably acceptable to the Lender. Lender
shall be named as a mortgagee and loss payee on all such property and liability insurance. Simultaneously with each delivery of financial statements under Section 4.01(a), Borrower shall deliver to the Lender a certificate of an officer of such
Borrower specifying the details of all insurance then in effect and certifying that all of the premiums therefor which are then due and payable have been paid in full. 
  
 4.13. Further Assurances. Borrower will, and will cause any Subsidiary to, execute and deliver to the Lender, at any
time and from time to time, any and all further agreements, documents and instruments with reasonable promptness after Lender’s request therefor, and take 

  

 27 

 
any and all further actions which may be required under applicable law, or which the Lender may from time to time reasonably request with reasonable
promptness after any such request, in order to effectuate the transactions contemplated by this Agreement and the other Loan Documents. 
  
 4.14. Accountant. Borrower will give the Lender prompt notice of any change of Borrower’s independent certified public accountants and a
statement of the reasons for such change. Borrower shall at all times utilize independent certified public accountants reasonably acceptable to the Lender. 
  
 4.15. Financial Covenants. 
  
 (a) Minimum Net North. Borrower’s minimum Net Worth shall at all times be greater than Ten Million Dollars ($10,000,000). 
  
 (b) Maximum Ratio of Consolidated Indebtedness to Net Worth. Borrower
will not as of the end of any month ending on or after March 31, 2004, permit the ratio of (A) all Consolidated Indebtedness of Borrower to (B) Net Worth to exceed 2.5 to 1.00, all determined in accordance with GAAP. 
  
 4.16. Accounts. All U.S. depository accounts of the Borrower and any
Subsidiaries shall be maintained with Lender, with the exception of certain small accounts which are set forth on Schedule 4.16 attached hereto and any other small accounts which may subsequently be disclosed to the Lender and which are acceptable
to the Lender. The Borrower will have twelve (12) months from the date hereof to transfer all of its accounts respecting all treasury management services (including, without limitation, lock boxes, credit line sweeps, treasury management and similar
accounts) to accounts with Lender. 
  
 4.17. Limitation on
Indebtedness. Borrower will not, and will not cause or permit any Subsidiary to, incur or be obligated on any Indebtedness, either directly or indirectly, by way of Guarantee, suretyship or otherwise, other than: 
  
 (a) the Borrowers’ Obligations; 
  
 (b) unsecured trade accounts payable and other normal
accruals incurred in the ordinary course of business which are not more than thirty (30) days past due (provided, however, that neither Borrower nor any Subsidiary shall be required to pay any such account payable or other accrual the payment of
which is being contested in good faith and by appropriate proceedings being diligently conducted and for which adequate reserves in accordance with GAAP have been provided, except that Borrower or such Subsidiary, as the case may be, shall pay or
cause to be paid all such accounts payable and accruals forthwith upon the commencement of proceedings to foreclose any Lien which is attached as security therefor, unless such foreclosure is stayed by the filing of an appropriate bond in a manner
reasonably satisfactory to Lender); 
  

 28 

 (c) Indebtedness existing as of the date of this Agreement and listed on Schedule
3.10 attached hereto (and without giving effect to any amendment to Schedule 3.10 made by Borrower after the date of this Agreement as permitted by Section 3.10 of this Agreement); 
  
 (d) purchase money Indebtedness incurred solely to finance
Capital Expenditures; 
  
 (e) Capitalized Lease
Obligations; and 
  
 (f) contingent obligations,
none of which shall be for guaranties of payment for borrowed money, not to exceed $100,000 at any one time without the prior written consent of Lender. 
  
 4.18. Limitation on Liens. Without the prior written approval of Lender, which approval shall be in Lender’s sole discretion, Borrower will
not, and will not cause or permit any Subsidiary to, create, incur or assume, or suffer to be incurred or to exist, any Lien on any of its Property, whether now owned or hereafter acquired, or upon any income or profits therefrom, except for
Permitted Liens. Borrower further agrees that it will not, without the prior written approval of Lender, which approval shall be in Lender’s sole discretion, enter into, assume or permit to exist any agreements with any Person other than the
Lender, whether for borrowed money or otherwise, containing covenants similar in legal or practical effect to those set out in this Section IV. 
  
 4.19. Consolidation, Merger, Sale of Property, Etc. 
  
 (a) Borrower will not, and will not cause or permit any Subsidiary to, directly or indirectly merge or consolidate with or into any other Person or permit
any other Person to merge into or with or consolidate with it; provided, however, that so long as no Default or Event of Default exists immediately before or immediately after giving effect to such merger or such consolidation, any wholly-owned
Subsidiary may merge or consolidate with or into Borrower (provided that Borrower shall be the continuing or surviving corporation) or any other wholly-owned Subsidiary. 
  
 (b) Borrower will not, and will not cause or permit any Subsidiary to, (A) sell, assign, lease, transfer, abandon or
otherwise dispose of any of its Property (including, without limitation, any shares of capital stock or other equity of a Subsidiary owned by Borrower or another Subsidiary) or (B) issue, sell or otherwise dispose of any shares of capital stock or
other equity of any Subsidiary, except for (i) sales of Inventory in the ordinary course of business (which does not include a transfer of Inventory in partial or total satisfaction of any Indebtedness), and (ii) sales of equipment and other fixed
assets in the ordinary course of business and sales of equipment and other fixed assets which are obsolete, worn-out or otherwise not used or useable in the ordinary course of its business, so long as the net proceeds thereof are used solely to
purchase replacement equipment or 

  

 29 

 
fixed assets or assets of comparable quality or to pay or prepay (y) in the case of asset sales by any of the Borrower, Debt secured by any Permitted Lien
encumbering the assets being sold or the Obligations (to the extent net cash proceeds not used to purchase replacement assets exceed $ 100,000 during any fiscal year) and (z) in the case of asset sales by a Subsidiary, Debt of such Subsidiary or a
dividend or loan from such Subsidiary to Borrower. 
  
 4.20.
Sale and Leaseback Transactions. Borrower will not, and will not cause or permit any Subsidiary to, enter into any arrangement, directly or indirectly, whereby Borrower or such Subsidiary shall in one or more related transactions sell,
transfer or otherwise dispose of any Property owned by Borrower or such Subsidiary to any Person and then rent or lease, as lessee, such Property or any part thereof for a period or periods which in the aggregate would exceed twelve (12) months from
the date of commencement of the lease term. 
  
 4.21.
Transactions with Affiliates. Except for the transactions and arrangements described on Schedule 4.21 attached hereto as in effect on the date of this Agreement, Borrowers will not, and will not cause or permit any Subsidiary to, enter
into or be a party to any transaction or arrangement with any Affiliate (including, without limitation, the purchase from, sale to or exchange of Property with, or the rendering of any service by or for, any Affiliate), except in the ordinary course
of business and pursuant to the reasonable requirements of Borrower’s or such Subsidiary’s business and upon fair and reasonable terms no less favorable to Borrower or such Subsidiary than would be obtained in a comparable
arm’s-length transaction with a Person not an Affiliate. 
  
 4.22. Changes in Nature of Business. Borrower will not, and will not cause or permit any Subsidiary to, engage in any business if, as a result, the general nature of the business which would then be engaged in by Borrower and its
Subsidiaries, considered as a whole, would be substantially changed from the general nature of the business engaged in by Borrower and its Subsidiaries, considered as a whole, as of the date of this Agreement. 
  
 4.23. Fiscal Year. Borrower will not, and will not cause or permit any
Subsidiary to, change its fiscal year from a year ending September 30. 
  
 4.24. Stock Redemptions and Distributions. Borrower will not, and will not cause or permit any Subsidiary to, declare or incur any liability to make any Distribution in respect of the capital stock or other equity interest of
Borrower or the capital stock or other equity interest of such Subsidiary, as the case may be, except that, so long as no Default or Event of Default has occurred and is continuing or would be created by or result from any such payment (i) each
wholly-owned Subsidiary of Borrower shall be permitted to declare and pay cash dividends or distributions of other Property on its capital to its parent organization, and (ii) if Borrower has in effect an election to be taxed as a “Subchapter S
Corporation,” such Borrower shall be permitted to make distributions to stockholders in an aggregate amount not to exceed 75% of the income of such Borrower and its consolidated Subsidiaries. 
  

 30 

 4.25. Pension Plans. Borrowers will not, and will not cause or permit any Subsidiary to, (a)
permit any condition to exist in connection with any Pension Plan which might constitute grounds for the PBGC to institute proceedings to have such Pension Plan terminated or a trustee appointed to administer such Pension Plan or (b) engage in, or
permit to exist or occur, any other condition, event or transaction with respect to any Pension Plan which could result in the incurrence by Borrower, any Subsidiary or any ERISA Affiliate of any material liability, fine or penalty. 
  
 4.26. Acquisitions. Borrower will not, and will not cause or permit
any Subsidiary to, consummate any Acquisitions except Permitted Acquisitions. 
  
 4.27. Subsidiaries. Borrower will not, and will not cause or permit any Subsidiary to, create, form or acquire any Subsidiaries without the prior written consent of Lender, which consent shall be in
Lender’s sole discretion, except in connection with a Permitted Acquisition. If any of the Borrowers or any Subsidiary creates, forms or acquires any Subsidiary on or after the date of this Agreement, such Borrower or such Subsidiary, as the
case may be, will, contemporaneously with the creation, formation or acquisition of such Subsidiary, cause such Subsidiary to execute documents similar to the Intercompany Loan Documents. 
  
 SECTION V. DEFAULT 
  
 5.01. Events of Default. The occurrence of any one or more of the following events shall constitute an “Event of Default” hereunder:

  
 (a) The Borrower shall fail to pay any
monetary Obligation as and when the same is due, or, so long as no other Event of Default shall have occurred hereunder, within fifteen (15) days thereafter; provided that as regards any monetary or other defaults under the Note attached hereto as
Exhibit A and/or any other notes evidencing indebtedness of Borrower to Lender, the cure period(s), if any, set forth in the Note shall solely govern any defaults under the Note and the cure period, if any, set forth in such other notes
evidencing any indebtedness of Borrower to Lender shall govern as to cure periods under such indebtedness. 
  
 (b) The Borrower shall fail to observe or perform, or to cause any Subsidiary to observe or perform any other obligation, covenant and
agreement to be observed or performed by Borrower or such Subsidiary hereunder or under any of the Loan Documents or any other loans made by Lender to Borrower, and Borrower shall fail to cure the same within the lesser of (i) thirty (30) days
following written notice of such failure, or (ii) such alternate cure periods as may be specified below or in any Loan Documents or the documents evidencing such other loans from Lender to Borrower. 
  
 (c) Any financial or other statement, representation,
warranty or certificate made or furnished by Borrower and the Subsidiaries to Lender in connection with the Loan, shall be materially false, incorrect, or incomplete when made. 
  

 31 

 (d) Borrower or any Subsidiary or any Guarantor shall admit its inability to pay its
debts as they mature, or shall make an assignment for the benefit of its creditors. 
  
 (e) Proceedings in bankruptcy or for reorganization of Borrower or any Subsidiary or any Guarantor or for the readjustment of the debts of
Borrower or any Subsidiary or any Guarantor, under any Laws, whether state or federal, for the relief of debtors, now or hereafter existing, shall be commenced by Borrower or any Subsidiary or any Guarantor or shall be commenced against Borrower or
any Subsidiary or any Guarantor and shall not be dismissed within sixty (60) days of the institution thereof. 
  
 (f) A receiver or trustee shall be appointed for Borrower or any Subsidiary or any Guarantor or any proceedings shall be instituted for
the dissolution or the full or partial liquidation of Borrower or any Subsidiary or any Guarantor, or Borrower or any Subsidiary or any Guarantor shall discontinue business and such receivership, trusteeship or proceeding continues for forty-five
(45) days after its institution. 
  
 (g) Borrower
or any Subsidiary or any Guarantor shall suffer final judgment for payment of money aggregating in excess of $ 100,000 and not paid within sixty (60) days, unless Borrower or such Subsidiary or such Guarantor appeals the same and the appropriate
Court stays the execution thereof upon the posting of any bond requested by such court, in form and substance reasonably acceptable to Lender. 
  
 (h) A judgment creditor of Borrower or any Subsidiary shall obtain possession of any of the Collateral by any means, including, but
without limitation, levy, distraint, replevin or self-help. 
  
 (i) The validity or enforceability of any of the Loan Documents or the Intercompany Loan Documents shall be contested by Borrower. 
  
 (j) The validity or enforceability of the Unlimited Guaranty shall be contested by any Guarantor.

  
 (k) A default under the documents evidencing
any of the Collateral not cured within applicable cure periods therein, if any, or if any of the Collateral shall at any time cease to constitute a first priority security interest in favor of Lender. 
  
 (l) Failure to satisfy the Financial Covenants, set forth in
Section 4.15 above. 
  
 (m) The occurrence of any
Reportable Event with respect to any Pension Plan, not waived by the PBGC. 
  
 (n) The occurrence of any event having a Material Adverse Effect. 
  
 (o) The occurrence of any Change of Control Event. 
  

 32 

	 	(p)	If for any reason whatsoever Francis O’Donnell, Jr. ceases to be engaged full time in the management of Borrower and the Subsidiaries. 

  

	 	(q)	The death or incapacity of the individual Guarantor. 

  
 5.02. Acceleration. Upon the occurrence of an Event of Default, at the option of Lender, and without notice, all Obligations, including, but not
limited to the Note, whether arising hereunder or otherwise, shall immediately become due and payable, without further action of any kind, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived
by Borrower and all Obligations shall commence to bear interest at the default rate under the Note. 
  
 5.03. Remedies. After any acceleration, as provided for in Paragraph 5.02 hereof, Lender shall have, in addition to the rights and remedies given
it by the Loan Documents, all those rights and remedies allowed by all applicable Laws, including, but without limitation, all the rights and remedies applicable to the tangible and intangible personal property, Equipment, fixtures forming all or
any portion of the Collateral under the Uniform Commercial Code as enacted in any jurisdiction in which any Collateral may be located. Without limiting the generality of the foregoing, Lender may immediately, without demand of performance and
without other notice (except as specifically required by this Agreement or the Loan Documents) or demand whatsoever to Borrower, all of which are hereby expressly waived, proceed to exercise any and all available remedies under the Loan Documents,
at law or in equity. 
  
 Lender, as attorney-in-fact of Borrower,
shall also have power, at its sole option, but no obligation, to pay any amounts or costs which are to be (but are not) paid by Borrower hereunder (including, without limitation, insurance premiums, tax assessments and levies) and to prosecute and
defend all actions and proceedings in connection with the Collateral; provided, that, except respecting matters which Lender believes, in good faith, may impair the Collateral if not addressed during the pendency of any applicable cure period,
Lender will exercise such rights only after expiration of applicable cure period(s) hereunder, if any. This power of attorney is coupled with an interest and is irrevocable. 
  
 SECTION VI. MISCELLANEOUS 
  
 6.01. Construction. The provisions of this Agreement shall be in addition to those of the Note, the Loan Documents and each and every other
document delivered pursuant hereto, all of which shall be construed as complementary to each other. Nothing herein contained shall prevent Lender from enforcing the Loan Documents in accordance with their respective terms. Notwithstanding anything
contained herein to the contrary, in the event of a conflict between the terms and conditions set forth in this Agreement and those set forth in any of the other Loan Documents, the terms and conditions set forth herein shall prevail. 
  
 6.02. Further Assurance. From time to time, Borrower will execute and
deliver to Lender such additional documents and will provide such additional information as Lender may reasonably require to carry out the terms of this Agreement and be informed of Borrower’s status and affairs. 
  

 33 

 6.03. Enforcement and Waiver by Lender. Lender shall have the right at all times to enforce the
provisions of the Loan Documents in strict accordance with the terms thereof, notwithstanding any conduct or custom on the part of Lender in refraining from so doing at any time or times. The failure of Lender at any time or times to enforce its
rights under such provisions, strictly in accordance with the same, shall not be construed as having created a custom in any way or manner contrary to specific provisions of this Agreement or as having in any way or manner modified or waived the
same. All rights and remedies of Lender are cumulative and concurrent and the exercise of one right or remedy shall not be deemed a waiver or release of any other right or remedy. 
  
 6.04. Expenses of Lender. Borrower shall pay to Lender at the closing all fees and expenses of Lender (including
reasonable fees and expenses of Lender’s legal counsel) incurred by Lender in connection with the making of this Loan, the preparation of all Loan Documents, perfection of the liens granted pursuant to the Loan Documents and, as and when
incurred, fees and expenses of collection and enforcement of the Loan and other costs and expenses associated therewith, including, without limitation, costs of title insurance, survey, environmental assessments, architectural and engineering
inspections, and recording fees. Borrower shall pay when due the costs and expenses of collection or attempted collection of the Obligations, including reasonable attorneys’ fees and expenses whether or not litigation is commenced and including
representation in any bankruptcy, receivership or other insolvency proceeding. 
  
 6.05. Notices. Any notices or consents required or permitted by this Agreement shall be in writing and shall be deemed delivered if delivered in person or if sent by certified mail, postage prepaid, return
receipt requested, by overnight express mail or telefax (followed by delivery of a copy by certified or express mail), as set forth below, unless such address is changed by written notice hereunder, all mailed notices shall be deemed given upon
deposit in the U.S. or overnight express mail as aforesaid. 
  

	 	A.	If to Borrower: 

  
 Accentia, Inc. 
 5310 Cypress Center Drive,
#101 
 Tampa, Florida 33609 
 Attn.: James A. McNulty 
  
 with a copy to: 

 
 Sam Duffey, Esq. 
 1786 South Creek Drive 
 Osprey, Florida
34229-9119 
  

 34 

	 	B.	If to Lender: 

  
 Missouri State Bank and Trust Company 
 12452
Olive Street Road 
 Creve Coeur, Missouri 63141 
 Attn: KurtKientzle 
  
 with a
copy to: 
  
 The Stolar Partnership LLP 
 911 Washington, 7th Floor 
 St. Louis, MO
63101 
 Attn: Kathryn J. Giddings, Esq. 
  
 6.06. Waiver and Release by Borrower. To the maximum extent permitted by applicable Laws (which matters shall survive termination, repayment in
full of, and/or release of the liens and security interests of Lender arising from, the Loan), Borrower: 
  
 A. Waives: 1) protest of all commercial paper at any time held by Lender on which Borrower is any way liable; and 2) notice and
opportunity to be heard, after acceleration in the manner provided in Paragraph 5.02, before exercise by Lender of the remedies of self-help, setoff, or of other summary procedures permitted by any applicable Laws or by any agreement with Borrower
and, except where required hereby or by any applicable Laws, notice of any other action taken by Lender; and 
  
 B. Releases Lender and its officers, attorneys, agents and employees from all claims for loss or damage caused by any act or omission on
the part of any of them, except willful misconduct or gross negligence. 
  
 6.07. Applicable Law. The laws of the State of Missouri shall govern the construction of this Agreement, the Note, the Security Agreement and all of the Loan Documents. 
  
 6.08. Binding Effect, Assignment and Entire Agreement. This Agreement shall inure to the benefit of, and shall be
binding upon, the respective successors and permitted assigns of the parties hereto. Borrower has no right to assign any of its rights or obligations hereunder or under the other Loan Documents, or any of them, without the prior written consent of
Lender. The liability of Borrower shall be joint and several. This Agreement, and the Loan Documents, constitute the entire agreement between the parties, superseding any and all prior oral or written agreements between the parties hereto, including
without limitation, any commitment of Lender, and may be amended only by a writing signed on behalf of each party. 
  
 6.09. Severability. If any provision of this Agreement or any application thereof, shall be held invalid under any applicable Laws, such invalidity
shall not affect any other provision or application of this Agreement that can be given effect without the invalid provision or application, and, to this end, the provisions hereof are severable. 
  

 35 

 6.10. Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. 
  
 6.11. Notice respecting Insurance. The following notice is provided pursuant to Section 427.120 of Missouri Revised Statutes. As used herein, the
terms “you” and “your” shall refer to Borrower and the terms “we” and “us” shall refer to Lender. UNLESS YOU PROVIDE EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY YOUR AGREEMENT WITH US, WE MAY
PURCHASE INSURANCE AT YOUR EXPENSE TO PROTECT OUR INTERESTS IN YOUR COLLATERAL. THIS INSURANCE MAY, BUT NEED NOT, PROTECT YOUR INTERESTS. THE COVERAGE THAT WE PURCHASE MAY NOT PAY ANY CLAIM THAT YOU MAKE OR ANY CLAIM THAT IS MADE AGAINST YOU IN
CONNECTION WITH THE COLLATERAL. YOU MAY LATER CANCEL ANY INSURANCE PURCHASED BY US, BUT ONLY AFTER PROVIDING EVIDENCE THAT YOU HAVE OBTAINED INSURANCE AS REQUIRED BY OUR AGREEMENT. IF WE PURCHASE INSURANCE FOR THE COLLATERAL, YOU WILL BE RESPONSIBLE
FOR THE COSTS OF THAT INSURANCE, INCLUDING THE INSURANCE PREMIUM, INTEREST AND ANY OTHER CHARGES WE MAY IMPOSE IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF THE INSURANCE. THE COSTS
OF THE INSURANCE MAY BE ADDED TO YOUR TOTAL OUTSTANDING BALANCE OR OBLIGATION. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF INSURANCE YOU MAY BE ABLE TO OBTAIN ON YOUR OWN. 
  
 6.12. Disgorgement. This Agreement shall continue in full force and effect until all Obligations are fully paid,
performed and discharged. If Lender receives any payment on account of the Obligations, and any such payment(s) or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, subordinated and/or required to
be repaid to a trustee, receiver or any other party under any Law, then, to the extent of such payment(s) received, such Obligations shall be revived and continue in full force and effect, as if such payment(s) had not been received by Lender and
applied on account of such Obligations. 
  
 6.13. No Oral
Agreements. This notice is provided pursuant to Section 432.045 of Missouri Revised Statutes. As used herein, “creditor” means Lender, “borrower” means each Borrower and “this writing” means this Agreement and the
other Loan Documents. ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE. TO PROTECT YOU
(BORROWER) AND US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS AGREEMENT AND THE LOAN DOCUMENTS, WHICH ARE THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENTS
BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY THEM. 
  

 36 

 6.14. Right of Setoff. Upon the occurrence and during the continuance of any Event of Default,
Lender is hereby authorized at any time and from time to time, without notice to Borrower or the Subsidiaries (any such notice being expressly waived by Borrower and the Subsidiaries) and to the fullest extent permitted by law, to setoff and apply
any and all deposits (general or special, time or demand, provisional or final) at any time held by Lender and any and all other indebtedness at any time owing by Lender to or for the credit or account of Borrower or the Subsidiaries against any and
all of the Obligations irrespective of whether or not Lender shall have made any demand under this Agreement or under any of the other Loan Documents and although such obligations may be contingent or unmatured. Lender agrees to promptly notify
Borrower and the Subsidiaries after any such setoff and application made by Lender, provided, however, that the failure to give such notice shall not affect the validity of such setoff and application. The rights of the Lender under this Section
6.14 are in addition to any other rights and remedies (including, without limitation, other rights of setoff) which the Lender may have. Nothing contained in this Agreement or any other Loan Documents shall impair the right of Lender to exercise any
right of setoff or counterclaim it may have against Borrower or the Subsidiaries and to apply the amount subject to such exercise to the payment of indebtedness of Borrower or the Subsidiaries unrelated to this Agreement or the other Loan Documents.

  
 6.15. Environmental Indemnity. Borrower hereby agrees
to defend and indemnify the Lender and Lender harmless from and against any and all losses, liabilities, damages, injuries, claims, costs and expenses of any and every kind whatsoever (including, without limitation, court costs and reasonable
attorneys’ fees and expenses) which at any time or from time to time may be paid, incurred or suffered by, or asserted against, the Lender for, with respect to or as a direct or indirect result of the violation by Borrower or any Subsidiary of
any Environmental Laws; or with respect to, or as a direct or indirect result of the presence on or under, or the Release from, properties owned, leased or operated by Borrower and/or any Subsidiary in the conduct of their respective businesses into
or upon any land, the atmosphere or any watercourse, body of water or wetland, of any Hazardous Substances or any other hazardous or toxic waste, substance or constituent or other substance (including, without limitation, any losses, liabilities,
damages, injuries, claims, costs or expenses asserted or arising under the Environmental Laws); and the provisions of and undertakings and indemnification set out in this Section 6.15 shall survive the satisfaction and payment of the Obligations and
the termination of this Agreement. 
  
 6.16. General
Indemnity. In addition to the payment of expenses pursuant to Section 6.04, whether or not the transactions contemplated hereby shall be consummated, Borrower hereby agrees to defend, indemnify, pay and hold the Lender and any holder(s) of the
Note, and the officers, directors, employees, agents and affiliates of the Lender and such holder(s) (collectively, the “Indemnitees”) harmless from and against any and all other liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, claims, disbursements, costs and expenses of any kind or nature whatsoever (including, without limitation, the reasonable fees and disbursements of counsel for such Indemnitees in connection with any investigative,
administrative or judicial proceeding commenced or threatened, whether or not such Indemnitees shall be designated a party thereto), that may be imposed on, incurred by or asserted against the Indemnitees, in any manner relating to or arising out of
this Agreement, any of the other Loan Documents, any other agreement, document or instrument executed and delivered by Borrower or any other Obligor in connection herewith or therewith or any commitment letter delivered by 

  

 37 

 
the Lender to Borrower, the agreement of the Lender to make the Loan under this Agreement or the use or intended use of the proceeds of the Loan
(collectively, the “indemnified liabilities”); provided that Borrower shall have no obligation to an Indemnitee hereunder with respect to indemnified liabilities arising from the gross negligence or willful misconduct of that
Indemnitee as determined by a court of competent jurisdiction in a final, nonappealable order. To the extent that the undertaking to indemnify, pay and hold harmless set forth in the preceding sentence may be unenforceable because it is violative of
any law or public policy, Borrower shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all indemnified liabilities incurred by the Indemnitees or any of them. The
provisions of the undertakings and indemnification set out in this Section 6.16 shall survive satisfaction and payment of the Obligations and the termination of this Agreement. 
  
 6.17. Subsidiary Reference. Any reference in this Agreement to a Subsidiary of Borrower, and any financial
definition, ratio, restriction or other provision of this Agreement which is stated to be applicable to Borrower and its Subsidiaries or which is to be determined on a “consolidated” or “consolidating” basis, shall apply only to
the extent Borrower has any Subsidiaries and, where applicable, to the extent any such Subsidiaries are required to be consolidated with Borrower for financial reporting purposes in accordance with GAAP. 
  
 6.18. Independence of Covenants. All of the covenants contained in
this Agreement and the other Loan Documents shall be given independent effect so that if a particular action, event or condition is prohibited by any one of such covenants, the fact that it would be permitted by an exception to, or otherwise be in
compliance within the provisions of, another covenant shall not avoid the occurrence of a Default or Event of Default if such action is taken, such event occurs or such condition exists. 
  
 [Remainder of page left blank intentionally. Signatures follow.] 
  

 38 

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

					
	 Borrower:

	
	 ACCENTIA, INC.

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

	 Printed
	 	 Name:
	 	 Francis E. O’Donnell, Jr.

	 Title:
	 	 	 	 Chairman

  

					
	 Lender:

	
	MISSOURI STATE BANK AND TRUST COMPANY.
		
	By:	 	 /s/ Kurt N. Rientzle

	 Printed
	 	 Name:
	 	 Kurt N. Rientzle

	 Title:
	 	 Senior Vice President

  

 39 

	
	The Subsidiaries are executing this Revolving Credit Agreement to acknowledge and agree to be bound by the provisions set forth in Article IV and Section 6.14 of this Revolving
Credit Agreement.

  

					
	 Analytica Group, Inc.

		
	By:	 	 /s/ James A. McNulty

	 Printed
	 	 Name:
	 	 James A. McNulty

	 Title:
	 	 	 	 Secretary/CFO

  

					
	 TEAMM Pharmaceuticals, Inc.

		
	By:	 	 /s/ James A. McNulty

	 Printed
	 	 Name:
	 	 James A. McNulty

	 Title:
	 	 	 	 Assistant Secretary

  

					
	 BIOVEST International, Inc.

		
	By:	 	 /s/ James A. McNulty

	 Printed
	 	 Name:
	 	 James A. McNulty

	 Title:
	 	 Assistant Secretary

  

 40 

  
 EXHIBIT A

 REVOLVING CREDIT NOTE 
  

			
	$2,500,000	 	 St. Louis, Missouri
 As of March 30, 2004

  
 FOR VALUE RECEIVED,
the undersigned (“Maker”) promises to pay to the order of Missouri State Bank and Trust Company, a Missouri banking corporation (“Lender”), at its office at 12452 Olive Street Road, Creve Coeur, Missouri 63141, or at such other
place or places as Lender may from time to time designate, the principal sum of Two Million Five Hundred Thousand and No/100 Dollars ($2,500,000), or such lesser sum as may then constitute the aggregate unpaid principal balance of all Revolving
Credit Loans made by the Lender to the Maker, pursuant to the Credit Agreement described below, with interest (calculated on the basis of a year of 360 days and actual days elapsed) from the date hereof on the unpaid principal balance from time to
time outstanding, at a rate per annum which is equal to the from time to time prime rate of Lender (the “Prime Rate”) plus one percent (1%) (the “Interest Rate”). 
  
 Principal and interest shall be due and payable as follows: (i) interest at the Interest Rate on the from time to time
outstanding principal balance shall be payable on May 1,2004, on the thirtieth (30th) day of each calendar month
thereafter during the term hereof, and (ii) all outstanding principal and all accrued and unpaid interest and other amounts payable hereunder or under the Credit Agreement shall be due and payable in full on March 30, 2005 (the “Maturity
Date”), if not sooner paid. Lender may apply payments received on any amounts due hereunder or under the terms of any instrument now or hereafter evidencing the indebtedness arising hereunder or securing this Note as Lender may determine.

  
 In the event of a default under this Note, all amounts owed to
Lender shall, at Lender’s option and upon notice to Maker, bear interest as follows: the from time to time Prime Rate, plus 5% per annum. 
  
 This Note may be prepaid in part or in full on or before the Maturity Date, without premium or penalty. 
  
 If a payment due hereunder is received at least ten days late, Maker will be
charged a late payment charge of five percent (5%) of the amount of the late payment to the extent permitted by law. 
  
 Upon any default hereunder, under the Credit Agreement or any other instrument now or hereafter securing this Note, the principal remaining unpaid with
accrued interest and all other amounts payable hereunder or under the Credit Agreement shall at once become due and payable. The failure to exercise, in case of any default, any right or remedy given in this paragraph shall not preclude the Lender
from exercising any right or remedy given in this paragraph in case of any subsequent defaults. 
  
 This Note is issued pursuant to a Revolving Credit Agreement (the “Credit Agreement”) of even date herewith between Maker and Lender, providing
for borrowings thereunder and hereunder 

  

 
from time to time and for mandatory prepayment of principal under certain circumstances. Reference is hereby made to such Credit Agreement for additional
provisions regarding the indebtedness evidenced hereby. All terms not otherwise defined herein shall have the meanings set forth in the Credit Agreement. This Note is secured by a certain Assignment of Security Agreement and Collateral (the
“Security Agreement”) by and between the Maker and the Lender of even date herewith granting a first priority security interest in the Collateral (as described in the Security Agreement), and is further secured by an Intercompany Note
Pledge Agreement pledging those certain Promissory Notes of the Subsidiaries to Borrower (as described the Intercompany Note Pledge Agreement and shall be entitled to all of the benefits of the Credit Agreement, the Security Agreement, and the
Intercompany Note Pledge Agreement. 
  
 Any notice or other
communication to be provided to Maker or Lender under this Note shall be in writing and sent to the parties at the addresses set forth in the Credit Agreement 
  

This Note is being executed for commercial purposes. Maker and Lender agree that time is of the essence. Any modification or waiver of any of
Maker’s obligations or Lender’s rights under this Note must be contained in a writing signed by Lender. Lender may perform any of Maker’s obligations or delay or fail to exercise any of its rights without causing a waiver of those
obligations or rights. A waiver on one occasion will not constitute a waiver on any other occasion. 
  
 Maker and all others who are or shall become parties primarily or secondarily liable on this Note, whether as endorsers guarantors or otherwise, hereby
agree that this Note may be renewed one or more times, the time for payment of this Note or any renewal note extended, the interest rate or other terms of the indebtedness evidenced hereby changed, any party released, or any action taken or omitted
with respect to any collateral security, including surrender of such security or failure to perfect any lien thereon, without notice and without releasing any of them, except as otherwise expressly agreed in writing, and the obligations of each such
party shall survive whether or not the instrument evidencing such obligation shall have been surrendered or cancelled. All such parties waive presentment, demand for payment, protest and notice of nonpayment and dishonor. 
  
 Maker hereby waives any right to trial by jury in any civil action arising
out of, or based upon, this Note or the collateral securing this Note. Maker consents to the jurisdiction and venue of any court located in the State of Missouri in the event of any legal proceeding under this Note. The undersigned agree that
the consent to jurisdiction and venue herein shall not prohibit or limit Lender from bringing any action or proceeding hereunder in any jurisdiction or venue that is otherwise proper. 
  
 The Maker agrees to pay all costs of collection when incurred, (whether or not litigation is commenced) including reasonable
attorneys’ fees and expenses. If Lender obtains a judgment for any amount due under this Note, interest will accrue on the judgment at the higher of the Default Rate or the judgment rate of interest permitted by law. 
  
 All references to Maker in this Note shall include all of the parties signing
this Note. If there is more than one Maker, their obligations will be joint and several. 
  
 This Note, the Credit Agreement, the Security Agreement, the Intercompany Note Pledge Agreement all of even date herewith, and all documents evidencing security for this Note, represent the 

  

 2 

 
complete and integrated understanding between Maker and Lender pertaining to the terms and conditions of those documents. 
  
 ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR
FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE. TO PROTECT YOU (MAKER) AND US (LENDER) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN
THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT. 
  
 MAKER ACKNOWLEDGES THAT MAKER HAS READ, UNDERSTANDS AND AGREES TO THE TERMS AND CONDITIONS OF THIS NOTE. MAKER ACKNOWLEDGES RECEIPT OF AN EXACT COPY OF
THIS NOTE. 
  
 This Note shall be governed by and construed in
accordance with the substantive laws of the State of Missouri (without reference to conflict of law principles). 
  

					
	ACCENTIA, INC.
			
	By:	 	 	 	 
	 Printed
	 	 Name:
	 	 
	 Title:
	 	 	 	 

  

 3 

  
 EXHIBIT B 
  
 SECURITY AGREEMENT 
  
 Dated: As of March 30, 2004 
  
 The undersigned Accentia, Inc., a Florida corporation (the
“Debtor”), whose address appears below, and Missouri State Bank and Trust Company, a Missouri banking corporation (“Secured Party”), hereby agree as follows: 
  
 1. In consideration of certain revolving credit Loans to be made by Secured Party to the Debtor in an amount not to exceed
at any one time outstanding Two Million Five Hundred Thousand Dollars ($2,500,000.00) or, if a lesser amount, the Borrowing Base (as defined in the Credit Agreement described below) at such time, and Debtor’s execution and delivery to Secured
Party of its Note therefor, and all additional loans, advances and other financial accommodations at or after the date hereof made or extended by Secured Party to the Debtor, directly or indirectly, as principal, guarantor or otherwise, including
any of the foregoing that arises after the filing of a petition by or against the Debtor under the Bankruptcy Code even if the obligations do not accrue because of the automatic stay under Bankruptcy Code Section 362 and also including all of
Debtor’s obligations under all interest rate protection arrangements (interest rate exchange, hedge or similar agreement including, without limitation, any interest rate swap, forward or future contract or option, e.g., a call, put, cap, floor
or collar), Debtor hereby grants to Secured Party a security interest in and lien upon, and assigns to Secured Party, the Collateral described in Paragraph 2, to secure the payment, performance and observance of all such indebtedness, obligations
and liabilities of any kind of the Debtor now or in the future owed to Secured Party, due or not, and whether liquidated or unliquidated, and of all Credit Agreements, documents and instruments evidencing any of the foregoing obligations or under
which any of the foregoing obligations may have been issued, created, assumed or guaranteed, including without limitation the Debtor’s obligations under that certain Revolving Credit Agreement (the “Credit Agreement”) dated as of
March 30, 2004 between Debtor and Secured Party (all of the foregoing, together with the Note of even date herewith issued to the order of Secured Party under the Credit Agreement, being herein referred to as the “Obligations”).

  
 2. The Collateral as described as follows may be supplemented
in the future by any separate schedule at any time furnished by Debtor to Secured Party (all of which are hereby deemed part of this Security Agreement), which Collateral includes all attachments, accessions and equipment now or hereafter affixed to
the Collateral or used in connection therewith, all substitutions and replacements thereof, and all items of Collateral now existing and hereafter acquired, created or arising: 
  
 ALL OF DEBTOR’S ACCOUNTS AND OTHER RECEIVABLES. 
  
 3. The Debtor hereby irrevocably authorizes the Secured Party at any time and from time to time to file in any filing office
in any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto that (a) indicate the Collateral and (b) provide any other information required by part 5 of Article 9 of the UCC of the State, or such other
jurisdiction, for the sufficiency or filing office acceptance of any financing statement or amendment, including (i) 

  

 
whether the Debtor is an organization, the type of organization and any organizational identification number issued to the Debtor and, (ii) in the case of a
financing statement filed as a fixture filing or indicating Collateral as as-extracted collateral or timber to be cut, a sufficient description of real property to which the Collateral relates. The Debtor agrees to furnish any such information to
the Secured Party promptly upon the Secured Party’s request. 
  
 4. Debtor warrants, represents and covenants with respect to the Collateral as follows: 
  
 (a) the chief place of business of Debtor, the books and records relating to the Collateral, and the Collateral, are all located at the
address(es) set forth below and Debtor will not change any of the same or its name or state where Debtor is located without prior written notice to and consent of Secured Party; 
  
 (b) the Collateral is now and will at all times hereafter be owned by Debtor free and clear of all liens,
security interests, encumbrances and rights of others except for the security interest granted hereby; 
  
 (c) Debtor will not assign, sell, mortgage, lease, transfer, pledge, grant a security interest in, encumber, or otherwise dispose of or
abandon any part or all of the Collateral without prior written consent of the Secured Party, and the inclusion of “proceeds” of the Collateral under the security interest granted herein shall not be deemed a consent by the Secured Party
to any sale or other disposition of any part or all of the Collateral, other than for sales of Inventory in the ordinary course of business, except that Debtor may replace obsolete or worn Equipment in the ordinary course of business; 
  
 (d) Secured Party shall at all times have free access to and
right of inspection of the Collateral and any records pertaining thereto (and the right to make extracts from and to receive from Debtor originals or true copies of such records and any papers and instruments relating to any or all of the Collateral
upon request therefor) and Debtor hereby grants to Secured Party a security interest in all such records, papers and instruments to secure payment, performance and observance of the Obligations; 
  
 (e) Debtor assumes all responsibility and liability arising
from the use of the Collateral; 
  
 (f) Debtor
will, at its expense, perform all acts and execute all documents in a form reasonably acceptable to Debtor requested by Secured Party at any time to evidence, perfect, maintain and enforce Secured Party’s security interest in the Collateral and
upon request of Secured Party, at any time and from time to time, shall deliver to Secured Party any instrument, document or chattel paper constituting part of the Collateral, duly endorsed or assigned, Debtor hereby authorizes Secured Party and
grants Secured Party its power of attorney to file any financing statements or continuation statements pursuant to the UCC of the State or such other jurisdiction as is deemed necessary or appropriate by Second Party to perfect its security interest
hereunder, which power of attorney shall be deemed to be coupled with an interest and is irrevocable, and shall execute and deliver any other papers, documents or instruments requested by Secured Party in connection with this Security Agreement;

  

 (g) Secured Party may, in its sole discretion, release any of the Collateral without
notice to or consent by Debtor and without discharging or otherwise affecting the Obligations or the security interest granted herein; 
  
 (h) Secured Party may in its discretion, for the account and at the expense of Debtor, pay any amount or do any act required of Debtor
hereunder or requested by Secured Party to preserve, protect, maintain or enforce the Obligations or the security interest granted herein and which Debtor fails to do or pay, and any such payment shall be deemed an advance by Secured Party to
Debtor, shall be payable on demand and shall be secured hereby; 
  
 (i) Debtor will promptly pay Secured Party any and all sums, costs, and expenses which Secured Party may pay or incur pursuant to the provisions of this Security Agreement or in defending, protecting or enforcing the
security interest granted herein or in enforcing payment of the Obligations or otherwise in connection with the provisions hereof, including but not limited to all court costs, collection charges, travel expenses, and reasonable attorney’s
fees, all of which, together with interest at a rate equal to the highest rate then payable on the Obligations, shall be part of the Obligations; and 
  
 (j) Debtor shall furnish Secured Party with an aging of Accounts Receivable in such form and as often as Secured Party may require.

  
 (k) Secured Party may, at any time and from
time to time and without notice to Debtor, verify the validity and amount or any other matter relating to any of the Accounts Receivable by mail, telephone, telegraph or otherwise, in the name of Secured Party or Debtor. 
  
 (1) At any time at Secured Party’s request Debtor will
instruct its account debtors to remit to a lock box to which Secured Party will have sole access and control. All deposits to such lock box shall constitute additional Collateral and shall not be deemed payment of the Obligations. 
  
 (m) At any time after the occurrence of an Event of Default
(as defined in the Agreement), Secured Party may, and on Secured Party’s demand Debtor will, notify customers or account debtors that the Accounts Receivable have been assigned to Secured Party or of Secured Party’s security interest
therein, and collect the Accounts Receivable directly and charge the collection costs and expenses to the Obligations but, unless and until Secured Party does so notify or gives Debtor other instructions, Debtor shall make collection of all Accounts
Receivable for Secured Party, receive all payments thereon as Secured Party’s trustee, and shall immediately deliver them to Secured Party in their original form. Debtor will deliver to Secured Party, duly endorsed or assigned, all instruments,
chattel paper, guaranties or security agreements immediately upon receipt by Debtor as evidence of, in payment of or as security for any of the Collateral. All checks and other instruments received by Secured Party as proceeds of any of the Accounts
Receivable will be credited (conditional upon final collection) against the Obligations; provided, however, that for purposes of calculation of interest, such conditional credit will be made after allowing five (5) calendar days for collection.

  
 (n) All sums credited by or due from Secured
Party to Debtor shall at all times constitute additional security for the Obligations and may be set off against any Obligation at any time 

  

 
whether or not other security held by Secured Party is adequate and whether or not such Obligations are then due. 
  
 (o) If any warranty is breached as to any of the Accounts
Receivable, or if any of the Accounts Receivable is not paid by the customer or account debtor within 90 days from its due date, or the customer or account debtor disputes liability or makes any claim with respect thereto, or a petition in
bankruptcy or other application for relief under the Bankruptcy Code or any other insolvency law, is filed with respect to the customer or account debtor or the customer or account debtor makes a general assignment for the benefit of creditors,
becomes insolvent, fails, suspends or goes out of business, then Secured Party may accelerate the principal of the Obligations to the extent of any or all of the Accounts Receivable owing by that customer or account debtor. Any material or
merchandise which is returned by a customer or account debtor or otherwise recovered shall remain part of the Collateral. Debtor shall notify Secured Party promptly of all disputes and claims and settle or adjust them at no expense to Secured Party
but no discount, credit or allowance shall be granted to any customer or account debtor without Secured Party’s consent except in accordance with its announced trade terms. Secured Party may, after the occurrence of an Event of Default, enforce
collection, settle or adjust disputes and claims directly with customers or account debtors for amounts and upon terms which Secured Party considers commercially reasonable, and in all cases Secured Party will credit Debtor with only the net amounts
received by Secured Party in payment of the Accounts Receivable. 
  
 (p) Debtor shall place notations upon its books of account to disclose the assignment of all of the Accounts Receivable to Secured Party or Secured Party’s security interest therein and shall perform all other
steps requested by Secured Party to create and maintain in Secured Party’s favor a valid first security interest, assignment or lien in, of, or on all of the Accounts Receivable and all other security held by or for Secured Party. Secured Party
may at all times have access to, inspect, audit and make extracts from all of Debtor’s records, files and books of account relating to the Accounts Receivable. At Secured Party’s request, Debtor will stamp all invoices and other documents
sent to account debtors representing any Accounts Receivable with the following notice: “The amount shown to be due has been assigned and should be paid to Missouri State Bank and Trust Company 12452 Olive Street Road, Creve Coeur, Missouri
63141, for credit to Accentia, Inc./ The Analytica Group, Inc.” Until default, Debtor will, at its own expense, endeavor to collect the Accounts Receivable as and when due. 
  
 (q) To enable the Secured Party to enjoy fully all its rights to the Accounts Receivable, Debtor hereby
leases to Secured Party and Secured Party hereby hires, for a term which shall last as long as there is any portion of the Obligations unpaid, all of the Company’s books of account, ledgers and cabinets, including any thereof that are
maintained in electronic form, including the rights to use necessary operating software, in which there are reflected or maintained the Accounts Receivable now or hereafter assigned to Secured Party and all supporting evidence and documents relating
thereto in the form of written applications, credit information, account cards, payment records, correspondence, delivery and installation certificates, invoice copies, delivery receipts, notes and other evidences of indebtedness, insurance
certificates and the like. Secured Party and its representatives shall at all times have and be entitled to free and undisturbed access to such books of account, ledgers and cabinets during normal business hours and without unduly interfering with
Debtor’s business, and may examine and audit the contents thereof and make excerpts therefrom. 
  

 Upon the occurrence of any Event of Default then, in addition to all of the rights and remedies set forth
in this Security Agreement, Secured Party will have the right forthwith or at any time thereafter to remove from the premises wherein the same are situated all such books of account, ledgers, cabinets, electronic storage materials and software
hereby leased to Secured Party and Secured Party may keep and retain the same in its possession until all Obligations of whatever nature shall have been fully paid and discharged, but notwithstanding such removal, Debtor shall be afforded access
thereto at the place or places to which the same are removed for the purpose of examining and auditing the same and making excerpts therefrom. 
  
 5. Debtor represents and warrants that: 
  
 (a) It is a duly organized and validly existing corporation in good standing under the laws of the State of
                    , is duly qualified to transact business in
                                        
and has the power and authority to own its properties and to transact the business in which it is engaged or presently proposes to engage. It is duly qualified as a foreign company and in good standing in all states where the nature of its business
or the ownership or use of property requires such qualification, except for those states in which the failure to qualify or maintain good standing could not reasonably be expected to have a Material Adverse Effect (as defined in the Credit
Agreement). 
  
 (b) It has the power to execute,
deliver and carry out the terms and provisions of the Note, this Security Agreement, the Credit Agreement and all instruments and documents delivered by it pursuant to this Security Agreement and the lawful right to transfer the Collateral, and it
has taken or caused to be taken all necessary action (including, but not limited to, the obtaining of any consent of its directors required by law or by its Articles of Incorporation or By-Laws) to authorize the making and delivery of the Note, the
execution, delivery and performance of the Credit Agreement, this Security Agreement, and the execution, delivery and performance of all other instruments and documents delivered by it pursuant to the Credit Agreement or this Security Agreement.

  
 (c) It is not in default under any indenture,
mortgage, deed of trust, security agreement, agreement or other instrument to which it is a party or by which it may be bound. Neither the execution and delivery of the Note, this Security Agreement, or any of the instruments and documents to be
delivered pursuant to this Security Agreement, nor the consummation of the transactions herein and therein contemplated, nor compliance with the provisions hereof or thereof, will violate any law or regulation, or any order or decree of any court or
governmental instrumentality, or will conflict with, or result in the breach of, or constitute a default under, any indenture, mortgage, deed of trust, security agreement, agreement or other instrument to which Debtor is a party or by which it is
bound, or result in the creation or imposition of any lien, charge or encumbrance upon any of its property under any such indenture, mortgage, deed of trust, agreement or other instrument (other than in favor of Secured Party), or violate any
provision of its organizational documents. 
  
 (d) It has good and marketable title to all of the Collateral subject hereof subject to no liens, mortgages, pledges, security interests, encumbrances or charges, purchase options or other third party interests, of any kind, other than in
favor of Secured Party. 
  

 (e) The principal place of business, chief place of business, chief executive office and
the office where Debtor keeps its records concerning the Collateral are located at the following address: 
  

			
	 	 	 
	  	 	  

  
 (f)
The locations of substantially all of the Collateral are as set forth on the attached Schedule 1. 
  
 (g) Debtor does not employ any data processing service or similar organization to assemble or process its records concerning the
Collateral. 
  
 (h) Upon the execution and
delivery of this Security Agreement and the filing of financing statements with the Offices of the Secretary of State of                     ,
there will have been created and perfected a valid security interest or lien (as to the creation of which no consent is required from any third party) in favor of the Secured Party in all Collateral. 
  
 6. The occurrence of any of the following shall constitute an event of
default (“Default”) under this Security Agreement: 
  
 (a) default in the due and punctual payment of any installment of principal or interest on the Note when and as the same become due and payable, whether at maturity or by acceleration or otherwise which is not cured
within any applicable cure period; 
  
 (b)
default in the performance or observance of or under any covenant, agreement or provision contained in this Security Agreement or in any instrument or document delivered to Secured Party in connection with or pursuant to this Security Agreement
which continues for a period of 30 days after notice thereof to Debtor from Secured Party, or if any such instrument or document terminates or becomes void or unenforceable without the written consent of Secured Party; 
  
 (c) any Event of Default occurs under the Credit Agreement
which is not corrected within the time period, if any, provided in the Credit Agreement for the correction thereof; or 
  
 (d) Secured Party shall receive at any time a notice or report from the Secretary of State of
                     indicting that Secured Party’s security interest is not prior to all other security interests reflected in such
report. 
  
 7. Upon the occurrence of any Default and after
expiration of any applicable cure period, if any, and at any time thereafter while such Default remains uncured and uncorrected, Secured Party may, without notice to or demand upon Debtor, declare any or all Obligations immediately due and payable
and Secured Party shall have the following rights and remedies (to the extent permitted by applicable law), in addition to all rights and remedies of a secured party under the UCC, or of 

  

 
Secured Party under the Credit Agreement or any other agreement, document or instrument evidencing any of the Obligations or under which any of the
Obligations may have been issued, created, assumed or guaranteed, all such rights and remedies being cumulative, not exclusive, and enforceable alternatively, successively or concurrently: 
  
 Secured Party may, at any time and from time to time, with or without
judicial process and the aid and assistance of others, enter any premises in which any of the Collateral may be located and, without resistance or interference by Debtor, take possession of the Collateral, and may dispose of any part or all of the
Collateral on any premises of Debtor and may require Debtor to assemble and make available to Secured Party at the expense of Debtor any part or all of the Collateral at any place and time designated by Secured Party which is reasonably convenient
to both parties, and may remove any part or all of the Collateral from any premises on which the same may be located for the purpose of effecting sale or other disposition thereof, and may sell, resell, lease, assign and deliver, grant options for
or otherwise dispose of any or all of the Collateral in its then condition, without obligation to clean up or otherwise prepare the Collateral for sale, or following any commercially reasonable preparation or processing, at public or private sale or
proceedings, by one or more contracts, in one or more parcels, at the same or different times, with or without having the Collateral at the place of sale or other disposition, for cash and/or credit, and upon any terms, at such place(s) and time(s)
and to such person(s), firm(s) or corporation(s) as Secured Party deems best, all without demand for performance or any notice or advertisement whatsoever except that where an applicable statute requires reasonable notice of sale or other
disposition Debtor hereby agrees that the sending often (10) days notice by registered or certified mail, postage prepaid, to any address of Debtor set forth in this Security Agreement of the place and time of any public sale or of the time after
which any private sale or other intended disposition is to be made shall be deemed reasonable notice thereof. Secured Party may specifically disclaim any warranties of title or the like and may comply with any applicable federal or state law
requirements in connection with a disposition of the Collateral and compliance will not be considered to affect adversely the commercial reasonableness of any sale of the Collateral. If any of the Collateral is sold by Secured Party upon credit or
for future delivery Debtor will be credited only with payments actually made by the purchaser and, Secured Party shall not be liable for the failure of the purchaser to pay for same and in such event Secured Party may resell such Collateral. Secured
Party may buy any part or all of the Collateral at any public sale and if any part or all of the Collateral is of a type customarily sold in a recognized market or is of the type which is the subject of widely distributed standard price quotations
Secured Party may buy at private sale and may make payment therefor by any means, including, without limitation, payment in Obligations. 
  
 Secured Party may apply the cash proceeds actually received from any sale or other disposition to the reasonable expenses of retaking, holding, preparing
for sale, selling, leasing and the like, to reasonable attorney’s fees and all legal, travel and other expenses which may be incurred by Secured Party in attempting to collect the Obligations or enforce this Security Agreement or in the
prosecution or defense of any action or proceeding related to the subject matter of this Security Agreement, and then to the Obligations in such order and as to principal or interest as Secured Party may desire, and Debtor shall remain liable and
will pay Secured Party on demand any deficiency remaining (including interest thereon at a rate equal to the highest rate then payable on the Obligations) and the balance of any expenses unpaid, with any surplus to be paid to Debtor, subject 

  

 
to any duty of Secured Party imposed by law to the holder of any subordinate security interest in the Collateral known to Secured Party. 
  
 8. To effectuate the terms and provisions hereof and after an event of
default, Debtor hereby designates and appoints Secured Party and its designees or agents as attorney-in-fact of Debtor, irrevocably and with power of substitution, with authority to receive, open and dispose of all mail addressed to Debtor, to
notify the Post Office authorities to change the address for delivery of mail addressed to Debtor to such address as Secured Party may designate; to endorse the name of Debtor on any Note, acceptances, checks, drafts, money orders or other evidences
of payment or proceeds of the Collateral that may come into Secured Party’s possession; to execute proofs of claim and loss; to execute any endorsements, assignments, or other instruments of conveyance or transfer; to adjust and compromise any
claims under insurance policies; to execute releases; and to do all other acts and things necessary and advisable in the sole discretion of Secured Party to carry out and enforce this Security Agreement. All acts of said attorney or designee are
hereby ratified and approved and said attorney or designee shall not be liable for any acts of commission or omission, nor for any error of judgment or mistake of fact or law. This power of attorney, being coupled with an interest, is irrevocable
while any of the Obligations shall remain unpaid. 
  
 9. Secured
Party shall not be deemed to assume any responsibility for, or obligation or duty with respect to, any part or all of the Collateral, of any nature or kind, or any matter or proceedings arising out of or relating thereto, including, without
limitation, any obligation or duty to take any action to collect, preserve or protect its or Debtor’s rights in the Collateral or against any prior parties thereto, but the same shall be at Debtor’s sole risk at all times. 
  
 Secured Party’s duty with respect to Collateral in its possession shall
be fulfilled if Secured Party exercises reasonable care in the safekeeping of such Collateral. Debtor hereby releases Secured Party from any claims, causes of action and demands at any time arising out of or with respect to this Security Agreement,
the Obligations, the use of the Collateral and/or any actions taken or omitted to be taken by Secured Party with respect thereto, and Debtor hereby agrees to hold Secured Party harmless from and with respect to any and all such claims, causes of
action and demands. 
  
 No act, failure or delay by Secured Party
shall constitute a waiver of its rights and remedies hereunder or otherwise. No single or partial waiver by the Secured Party of any default or right or remedy which it may have shall operate as a waiver of any other default, right or remedy or of
the same default, right or remedy on a future occasion. 
  
 Debtor
hereby waives presentment, notice of dishonor and protest of all instruments included in or evidencing any of the Obligations or the Collateral, and any and all other notices and demands whatsoever (except as expressly provided herein). 

 
 In the event of any litigation, with respect to any matter connected with
this Security Agreement, the Obligations or the Collateral, Debtor hereby waives the right to a trial by jury and all defenses, rights of setoff and rights to interpose counterclaims of any nature. Debtor hereby irrevocably consents to the
jurisdiction of the Courts of the State of Missouri and of any Federal Court located in such State in connection with any action or proceeding arising out of or relating to 

  

 
the Obligations, this Security Agreement or the Collateral, or any document or instrument delivered with respect to any of the Obligations. Debtor hereby
waives personal service of any summons, complaint or other process in connection with any such action or proceeding and agrees that the service thereof may be made by certified or registered mail directed to Debtor at its chief place of business set
forth below, or at such other address as Debtor may designate by written notification by certified or registered mail directed to and received by Secured Party at its office set forth in the financing statements filed hereunder (or if no such
financing statements have been filed, at the office of Secured Party at which is located the officer in direct supervision of the within security interest). 
  
 No provision hereof shall be modified, altered or limited except by a written instrument expressly referring to this Security Agreement and to the
provision so modified or limited, and executed by the party to be charged. This Security Agreement and all Obligations shall he binding upon the successors or assigns of Debtor, and shall, together with the rights and remedies of Secured Party
hereunder, inure to the benefit of Secured Party, its successors, endorsees and assigns and shall bind all persons who become bound as a Debtor to this Security Agreement. 
  
 Secured Party may assign its rights and interests under this Security Agreement. Debtor hereby waives, and will not assert
against any assignee of Secured Party, any claims, defenses or set offs which Debtor could assert against Secured Party except defenses that cannot be waived. 
  

This Security Agreement and the Obligations shall be governed in all respects by the laws of the State of Missouri(the “State”), except to
the extent that the UCC specifies such applicable law. If any term of this Security Agreement is held to be invalid, illegal or unenforceable, the validity of all other terms hereof shall in no way be affected thereby. Secured Party is authorized to
annex hereto any schedules referred to herein. Debtor acknowledges receipt of a full and complete copy of this Security Agreement. All terms used herein shall have the meanings as defined in the Uniform Commercial Code as in effect in the State of
Missouri(the “UCC”). 
  
 [Remainder of page left blank
intentionally. Signatures follow.] 
  

 IN WITNESS WHEREOF, the undersigned has executed or caused this Security Agreement to be executed by its
officers thereunto duly authorized, the date first above set forth. 
  

			
	 
		
	 By:
	 	 
	 Printed Name: _______________________________
 Title: ______________________________________

	
	 ACCENTIA, INC.

		
	 By:
	 	 
	 Printed Name: _______________________________
 Title: ______________________________________

  

  
 EXHIBIT C 
  
 Borrowing Base Certificate 
  
 Date of Computation: March 30, 2004 
  
 The undersigned (“Borrower”) is the Borrower under a Revolving Credit Agreement
dated as of March 30, 2004 as amended from time to time between the undersigned and Missouri State Bank and Trust Company (“Lender”). 
  
 Borrower hereby reaffirms all warranties made in the Revolving Credit Agreement and other agreements in connection therewith and certifies and warrants that Borrower
holds, subject to the security interest of the Lender granted pursuant to the Revolving Credit Agreement and all other documents creating a security interest which secure the Loans described therein, the following Collateral: 
  

						
	 1.)
	  	 Total Accounts Receivable of Borrower and the Subsidiaries
	  	$	2,405,894
			
	 2.)
	  	 Less: Ineligible Accounts Receivable includes, but not limited to:
	  	 	 
	 	  	 a.) Receivables over 90 days old
	  	 	302,623
	 	  	 b.) Government Account Receivables
	  	 	6,090
	 	  	 c.) International Account Receivables
	  	 	285,837
			
	 3.)
	  	 Eligible Accounts Receivable
	  	 	1,811,344
			
	 4.)
	  	 Loan Value of Accounts Receivable
 (75% of Line 3)
	  	 	1,358,508
			
	 5.)
	  	 Restricted Cash (Andrx Laboratories)
	  	 	939,944
			
	 6.)
	  	 Total Eligible Collateral
	  	 	2,298,452
			
	 7.)
	  	 Outstanding Principal Balance of Loan
	  	 	—  
			
	 8.)
	  	 Revolving Credit Availability
	  	 	2,298,452
			
	 9.)
	  	 Initial Draw, March 30, 2004
	  	 	1,000,000

  

 Deficit Must be Repaid within 5 Days of the Date of this Certificate 
  
 Borrower further certifies and warrants that no Default is existing under the Revolving
Credit Agreement at and as of the date of this Certificate and, to the best of its knowledge, there has not been (except as may be otherwise indicated below) any change since the computation date specified above which would reduce the Total Eligible
Collateral shown above if such amounts were computed as of the date of this Certificate. 
  

			
	Borrower:
	
	ACCENTIA, INC.,
		
	By:	 	 /s/ James McNulty

	 Title:
	 	 CFO

	 Dated:
	 	 3/30/04

  

 Accentia, Inc 
 Borrowing Base Certificate 
  

													
	 	  	Aggregate

	  	TEAMM

	  	Analytica

	  	Biovest

	 1.) Total Accounts Receivable of Borrower and the Subsidiaries
	  	$	2,405,894	  	$	990,459	  	$	836,707	  	$	578,729
					
	 2.) Less: Ineligible Accounts Receivable Includes, but not limited to:
	  	 	 	  	 	 	  	 	 	  	 	 
	             a) Receivables over 90 days old
	  	 	302,623	  	 	60,484	  	 	241,081	  	 	1,059
	             b) Government Accounts Receivable
	  	 	6,090	  	 	—  	  	 	—  	  	 	6,090
	             c) International Accounts Receivable
	  	 	285,837	  	 	—  	  	 	75,440	  	 	210,397
					
	 3.) Eligible Accounts Receivable
	  	 	1,811,344	  	 	929,975	  	 	520,186	  	 	361,183
					
	 4.) Loan Value of Accounts Receivable
       (75% of Line 3)
	  	 	1,358,508	  	 	697,481	  	 	390,139	  	 	270,888
					
	 5.) Restricted Cash (Andrx Labs)
	  	 	939,944	  	 	939,944	  	 	 	  	 	 
					
	 6.) Total Eligible Collateral
	  	 	2,298,452	  	 	1,637,425	  	 	390,139	  	 	270,888
					
	 7.) Outstanding Principal Balance of Loan
	  	 	—  	  	 	 	  	 	 	  	 	 
					
	 8.) Revolving Credit Availability
	  	$	2,298,452	  	 	 	  	 	 	  	 	 
					
	 9.) Initial Draw, March 30, 2004
	  	$	1,000,000	  	 	 	  	 	 	  	 	 

  

  
 EXHIBIT D 
  
 INTERCOMPANY NOTE PLEDGE AGREEMENT 
  
 THIS INTERCOMPANY NOTE PLEDGE AGREEMENT (the “Pledge Agreement”),
dated as of                     , 2004, by Accentia, Inc., a Florida corporation (“Pledgor”), to Missouri State
Bank and Trust Company (“Secured Party”); 
  
 WHEREAS, Pledgor is indebted to Secured Party for borrowed money evidenced by Pledgor’s promissory note dated as of the date hereof (the “Note”) issued pursuant to a Revolving Credit Agreement (the “Credit
Agreement”) also dated as of the date hereof; and 
  
 WHEREAS, Pledgor agreed to pledge certain assets to secure payment of the Note; and 
  
 WHEREAS, capitalized terms used herein which are defined in the Credit Agreement shall have the meanings specified in the Credit Agreement; 
  
 NOW, THEREFORE, 
  
 1. The Pledge. Pledgor hereby pledges to Secured Party, and grants to the Secured Party a security interest in, those notes payable to Pledgor
evidencing the indebtedness of Pledgor’s Subsidiaries to it, all as listed on Schedule A attached (such notes being herein collectively called the “Pledged Instruments”). The Pledged Instruments are being herewith delivered to and
pledged with Secured Party, and Secured Party acknowledges receipt thereof. Notwithstanding the foregoing or anything contained herein to the contrary and so long as Pledgor is not in default hereunder or under the Loan Agreement, Pledgor may retain
any funds or payments received by it pursuant to any of the Pledged Instruments. 
  
 2. Representations and Warranties. Pledgor represents and warrants that: 
  
 (a) it is the lawful owner of the Pledged Instruments free and clear of all liens, encumbrances and security interests (other than the
security interest granted hereby), with full right and power to subject the Pledged Instruments to the security interest granted hereby; 
  
 (b) each Pledged Instrument represents an existing, undisputed indebtedness enforceable in accordance with its terms, subject to no
off-sets or counterclaims of any kind; 
  
 (c)
Pledgor has duly executed and delivered this Agreement and this Agreement is a valid and binding agreement enforceable in accordance with its terms; 
  
 (d) performance of this Agreement will not conflict with or result in the breach of any of the terms of provisions of, or constitute a
default under, Pledgor’s charter or by-laws, any agreement or instrument to which Pledgor is a party or by which it is bound, or any statute, order, rule, or regulation applicable to it; and 
  

 (e) no consent, approval or authorization of, or any filing with, any governmental body
is required in connection with the execution, delivery or performance of this Agreement except for any filings that may be necessary or desirable under the Uniform Commercial Code. 
  
 3. Remedies. Upon the occurrence of a default in the payment of the Note and a declaration of acceleration by the
holder thereof the Secured Party may sell, assign and deliver the whole or, from time to time, any part of the Pledged Instruments or any interest therein, at public or private sale, without demand, advertisement or notice of the time or place of
sale or any adjournment thereof (except as otherwise required by law), all of which are hereby waived, for cash or on credit or for other property, for immediate or future delivery, and for such price or prices and on such terms as Secured Party in
its sole discretion deems proper, provided that (a) written notice of the time and place of any proposed sale shall be given to Pledgor at least 10 days in advance and (b) in the case of private sale, the notice shall also contain a summary
of the terms of the proposed sale, whereupon Secured Party shall sell the Pledged Instruments proposed to any purchaser procured by Pledgor who is ready, willing and able to purchase the same and who, prior to the time of sale, tenders the proposed
purchase price thereof as set forth in the notice of sale. Secured Party shall apply the proceeds of sale, along with all other moneys at the time held by it hereunder, as provided in Section 4 below. No failure or delay by Secured Party to exercise
any right, remedy, power or privilege granted herein or by statute, at law or in equity, shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, remedy, power or privilege preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege on the same or any other occasion. 
  
 4. Application of Money. All money received by Secured Party in respect of the Pledged Instruments shall be applied by Secured Party to the payment
of the costs and expenses incurred in the collection thereof and the balance shall be applied to pay the principal and interest on the Note, and if such money is insufficient to pay the Note in full, then to the ratable payment of principal and
interest of all the Note, without preference or priority of one Note over any other, according to the aggregate amount of unpaid principal and interest of each of the Note. Any money remaining shall be held by Secured Party for further application
in accordance with this Section until all of the Note have been paid in full, whereupon the balance (if any) shall be paid to the Pledgor. 
  
 5. Further Assurances. Pledgor shall at its expense execute, acknowledge and deliver all documents and take all actions as Secured Party may from
time to time require to carry out this Agreement. 
  
 6.
Termination. Upon payment in full of the Note in accordance with its terms, and all other sums secured by this Agreement, this Agreement shall terminate and Pledgor shall be entitled to the return of all Pledged Instruments not theretofore
sold pursuant to the provisions hereof, together with all money at the time held by Secured Party as additional security hereunder. 
  
 7. Notices, etc.. All notices and other communications hereunder shall be in writing and shall be given in person or by registered or certified
mail, postage prepaid, addressed, if to Pledgor, at 5310 Cypress Center Drive, #101, Tampa, Florida 33609, or if to Secured Party, at 12452 Olive Street Road, Creve Coeur, Missouri 63141 or to such other address as a party may designate by notice in
the manner provided above. 
  

 2 

 8. Miscellaneous. This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns. This Agreement may not be changed, waived, discharged or terminated except by an instrument in writing signed by the party against whom the change, waiver, discharge or termination is to be
enforced. Captions are for convenience only and shall not be used in the interpretation hereof. This Agreement shall be construed and enforced in accordance with the laws of the State of Missouri. 
  
 IN WITNESS WHEREOF, Pledgor has executed this Agreement by its officers
thereunto duly authorized the date first above written. 
  

			
	Accentia, Inc.
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

			
	 ACKNOWLEDGED AND ACCEPTED:

	
	Missouri State Bank and Trust Company
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 3 

  
 Schedule A 

 
 Pledged Instruments 
  

					
	 Date

	  	 Issuer

	  	Amount

  

 4 

  
 EXHIBIT E 
  
 Compliance Certificate 
  
 [Date] 
  
 Missouri State Bank and 
 Trust Company

 12452 Olive Street Road 
 Creve Coeur, Missouri 63141

 Attn: Kurt Kientzle 
  
 Ladies and Gentlemen: 
  
 Reference is hereby made to that certain Revolving Credit Agreement dated as of
                    , 2004, by and between Accentia, Inc., a Florida corporation, and Missouri State Bank and Trust Company (the
“Revolving Credit Agreement”). All capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed to them in the Revolving Credit Agreement. 
  
 Borrower hereby certifies to Lender that as of the date hereof: 
  
 (a) except as set forth below, all of the representations
and warranties of Borrower and/or any other Obligor contained in the Revolving Credit Agreement and/or in any of the other Loan Documents are true and correct in all material respects on and as of the date of this Certificate as if made on and as of
the date of this Certificate: 
  
 Exceptions:
                     
  
 (b) except as set forth below, no Default or Event of Default under or within the meaning of the Revolving Credit Agreement has occurred
and is continuing: 
  
 Exceptions:
                     
  
 (c) the financial statements of Borrower and the Subsidiaries delivered to you with this letter are true, correct and complete in all
material respects and have been prepared in accordance with GAAP (subject, in the case of any interim financial statements, to normal year-end adjustments and absence of footnote disclosures); and 
  

 (d) Schedule 1 to this letter is a determination of Borrower’s compliance
with the financial covenants set forth in Section 4.15 of the Revolving Credit Agreement as of                     ,
             , in each case calculated in accordance with the Revolving Credit Agreement. 
  

			
	 Very truly yours,

	
	 ACCENTIA, INC.

		
	 By:
	 	 
	 Title:
	 	 

  

  
 SCHEDULE 1 TO
COMPLIANCE CERTIFICATE 
  
 Financial Covenant Information

 as of
                                        
                 
  

					
	 Financial Covenant

	  	 Actual

	  	 Required

	 Minimum Net Worth
	  	 	  	 
	 Minimum Net Worth
	  	 	  	Not less that $10,000,000
	 (as defined below),
	  	 	  	 
	 determined as of each fiscal
	  	 	  	 
	 quarter-end
	  	 	  	 
			
	 Maximum Ratio of Consolidated
	  	 	  	Not to exceed 2.5 to 1.0
	 Indebtedness to Net Worth.
	  	 	  	 
	 The ratio of (A) all Consolidated
	  	 	  	 
	 Indebtedness to (B)
	  	 	  	 
	 Net Worth as of the end of any
	  	 	  	 
	 calendar month.
	  	 	  	 

  
 The defined terms set forth above have
the meanings set forth in the Revolving Credit Agreement to which this Exhibit is attached. Set forth below are some of the terms defined in said Revolving Credit Agreement: 
  
 “CAPITALIZED LEASE” shall mean any lease of Property, whether real and/or personal, by Borrower or any Subsidiary as lessee
which in accordance with GAAP is required to be capitalized on the balance sheet of such Person. 
  
 “CAPITALIZED LEASE OBLIGATIONS” shall mean, as of the date of any determination thereof, the amount of the aggregate rental obligations due and to become due under all Capitalized Leases, under which
Borrower or any Subsidiary is a lessee, which would be reflected as a liability on the balance sheet of Borrower and its Subsidiaries, on a consolidated basis, in accordance with GAAP. 
  
 “CONSOLIDATED INDEBTEDNESS” shall mean, as of the date of any determination thereof, all Indebtedness of Borrower and all
Subsidiaries as of such date, determined on a consolidated basis and in accordance with GAAP. 
  
 “INDEBTEDNESS” shall mean, with respect to any Person, without duplication, all indebtedness, liabilities and obligations of such Person which in accordance with GAAP are required to be classified
upon a balance sheet of such Person as liabilities of such Person, and in any event shall include all (a) obligations of such Person for borrowed money or which have been incurred in connection with the purchase or other acquisition of Property, (b)
obligations secured by any Lien (other than mechanics’, materialman’s, architect’s, or similar Lien arising in the ordinary course of a construction business) on, or payable out of the proceeds of or production from, any Property
owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligations, (c) indebtedness, liabilities and obligations of third parties, including joint ventures and partnerships of which such Person is a
venturer or general partner, recourse to which may be had against such Person, (d) obligations created or arising under any conditional sale or other title retention agreement with respect to Property acquired by such Person, notwithstanding the
fact that the rights and remedies of the seller, lender or lessor under such agreement in the event of default are limited to repossession or sale of such Property, (e) Capitalized Lease Obligations of such Person, (f) the aggregate undrawn face
amount of all letters of credit issued for the account of and/or upon the application of such Person together with all 

  

 
unreimbursed drawings with respect thereto, and (g) trade account payables and all other liabilities of such Person as defined by GAAP. 
  
 “NET WORTH” shall mean the sum of the following items as shown on the
consolidated balance sheet of Borrower and its Subsidiaries: (i) common stock, plus (ii) retained earnings, plus (iii) paid in capital, minus (iv) treasury stock, and minus (v) contract rights, licenses, patents, trademarks, trade names, good will
and other similar assets. 
  

  
 SCHEDULE 1 TO
COMPLIANCE CERTIFICATE 
  
 Financial Covenant Information

 as of
                                        
                         
  

					
	 Financial Covenant

	  	 Actual

	  	 Required

	 Minimum Net Worth
	  	 	  	 
	 Minimum Net Worth
	  	 	  	Not less that $10,000,000
	 (as defined below),
	  	 	  	 
	 determined as of each fiscal quarter-end
	  	 	  	 
	  	 	  	 
	 Maximum Ratio of Consolidated
	  	 	  	Not to exceed 2.5 to 1.0
	 Indebtedness to Net Worth.
	  	 	  	 
	 The ratio of (A) all Consolidated
	  	 	  	 
	 Indebtedness to (B)
	  	 	  	 
	 Net Worth as of the end of any calendar month.
	  	 	  	 
	  	 	  	 

  
 The defined terms set forth above have
the meanings set forth in the Revolving Credit Agreement to which this Exhibit is attached. Set forth below are some of the terms defined in said Revolving Credit Agreement: 
  
 “CAPITALIZED LEASE” shall mean any lease of Property, whether real and/or personal, by Borrower or any Subsidiary as lessee
which in accordance with GAAP is required to be capitalized on the balance sheet of such Person. 
  
 “CAPITALIZED LEASE OBLIGATIONS” shall mean, as of the date of any determination thereof, the amount of the aggregate rental obligations due and to become due under all Capitalized Leases, under which
Borrower or any Subsidiary is a lessee, which would be reflected as a liability on the balance sheet of Borrower and its Subsidiaries, on a consolidated basis, in accordance with GAAP. 
  
 “CONSOLIDATED INDEBTEDNESS” shall mean, as of the date of any determination thereof, all Indebtedness of Borrower and all
Subsidiaries as of such date, determined on a consolidated basis and in accordance with GAAP. 
  
 “INDEBTEDNESS” shall mean, with respect to any Person, without duplication, all indebtedness, liabilities and obligations of such Person which in accordance with GAAP are required to be classified
upon a balance sheet of such Person as liabilities of such Person, and in any event shall include all (a) obligations of such Person for borrowed money or which have been incurred in connection with the purchase or other acquisition of Property, (b)
obligations secured by any Lien (other than mechanics’, materialman’s, architect’s, or similar Lien arising in the ordinary course of a construction business) on, or payable out of the proceeds of or production from, any Property
owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligations, (c) indebtedness, liabilities and obligations of third parties, including joint ventures and partnerships of which such Person is a
venturer or general partner, recourse to which may be had against such Person, (d) obligations created or arising under any conditional sale or other title retention agreement with respect to Property acquired by such Person, notwithstanding the
fact that the rights and remedies of the seller, lender or lessor under such agreement in the event of default are limited to repossession or sale of such Property, (e) Capitalized Lease Obligations of such Person, (f) the aggregate undrawn face
amount of all letters of credit issued for the account of and/or upon the application of such Person together with all 

  

 
unreimbursed drawings with respect thereto, and (g) trade account payables and all other liabilities of such Person as defined by GAAP. 
  
 “NET WORTH” shall mean the sum of the following items as shown on the
consolidated balance sheet of Borrower and its Subsidiaries: (i) common stock, plus (ii) retained earnings, plus (iii) paid in capital, minus (iv) treasury stock, and minus (v) contract rights, licenses, patents, trademarks, trade names, good will
and other similar assets. 
  

  
 EXHIBIT F 
  
 Missouri State Bank 
 LOCK BOX QUESTIONNAIRE AND ESTIMATE 
  

					
	 I.
	  	Date Prepared	  	________________________________
			
	 II.
	  	Name of Bank	  	MISSOURI STATE BANK
			
	 III.
	  	Bank Representative	  	________________________________
			
	 IV.
	  	Name of Customer	  	________________________________
			
	 V.
	  	Will customer be using a postage paid business reply envelope?	  	________________________________
			
	 VI.
	  	Remittance Volume:	  	 
			
	 VII
	  	Normal Daily Volume	  	________________________________
			
	 VIII.
	  	Total Items per Month	  	________________________________
			
	 VII.
	  	Peak Volume Periods:	  	(Please indicate heavy days, weeks or months)
	
	 _________________________________________________________________________________________________

	
	 _________________________________________________________________________________________________

			
	 VIII.
	  	Tentative Starting Date	  	________________________________
			
	 IX.
	  	Estimated Monthly Cost to Customer:	  	 
			
	 A.
	  	Item Fee	  	$.40
			
	 B.
	  	Postage Fee	  	$ Varies
			
	 C.
	  	Telephone Fee	  	$ 4.00
			
	 D.
	  	Messenger Fee	  	$            
			
	 E.
	  	Box Rental	  	$ 3.00
			
	 F.
	  	Monthly Maintenance	  	$ 75.00
			
	 G.
	  	Additional photocopies	  	$.10
			
	 H.
	  	Other Misc. Charges	  	$            
			
	 	  	 Estimated Bill
	  	$             plus postage (as billed)

  

  
 LOCK BOX CONTRACT AND
OPERATING INSTRUCTIONS 
  
 The following is the Contract and Operating
Instructions governing the processing of remittances by Missouri State Bank (hereinafter referred to as “Bank”) for: 
  

					
			
	 	 	 	 	 
			
	 	 	 	 	 
			
	 	 	 	 	 

  
 (hereinafter referred to as “
Customer” received at P.O. Box No. 1541 Dept.              St. Louis, MO 63188. 
  
 The Bank will: 
  

	1.	Open envelopes and remove contents. 

  

	2.	Staple contents, other than checks and cash, such as invoices and check stubs to the envelope in which it was received. 

  

	3.	Checks will be inspected for: 

  
 a. DATE - A check postdated three (3) calendar days in advance of the day of receipt will be retained by the Bank and processed on the appropriate day. A
check dated four (4) calendar days or more in advance of the day of receipt will be forwarded to the Customer for disposition. 
  
 b. PAYEE - Unless otherwise instructed, all checks not payable to firm name(s) as designated here will be forwarded to the Customer for disposition.

  
 c. AMOUNT - In cases of variance between the numerical and
written amounts on a check, the Bank will guarantee the written amount. Any items on which the written amount cannot be determined will be forwarded to the Customer for disposition. 
  
 d. SIGNATURE - In the absence of a signature on the check, the Bank will not process the check. Check will be forwarded to
the Customer for disposition. 
  
 e. PAYMENT RESTRICTIONS - Any
check bearing the typewritten or handwritten phrase “Payment in full” or similar notation, will be processed by the Bank as indicated below: 
  
 (Place an “X” by the acceptable alternative) 
  
              Do not process; forward the check to Customer for disposition. 

 
              Process the check in all cases. 
  
              Call for instructions. See 11,C,VI for more information. 
  
 The Bank will exercise care to comply with the alternative selected but will
have no liability to the Customer for failure to so comply. 
  

 Page 1 of 5 

  
 LOCK BOX CONTRACT AND
OPERATING INSTRUCTIONS (cont.) 
  

	4.	Endorse the check as follows: 

  
 CREDITED TO THE ACCOUNT OF PAYEE 
 ABSENCE OF ENDORSEMENT GUARANTEED. 
 MISSOURI STATE BANK 
 ST. LOUIS, MO 63101 
 LOCK BOX
DEPOSIT 
  

	5.	Prepare a photocopy of each check processed and forward such photocopies to Customer as directed below: 

  
 Make 1 photocopy(ies) of each check processed. 
  

	6.	Prepare adding machine tape of checks. Prepare adding machine tape on photocopies of checks where applicable - see item 5. 

  

	7.	Microfilm each check processed. 

  

	8.	All checks not forwarded to the Customer for disposition will be deposited to Account
Number                        . 

  

	9.	At the close of business each day, or as specified below, all work processed (envelopes, invoices, copies of checks, deposit tickets, checks not acceptable for deposit, adding
machine tapes and any such items which cannot be processed) will be sent to the attention
of:                                       
                                        
                                        
                 . 

  

	10.	Follow any special instructions as indicated below: 

  
 ______________________________________________________________________________________________________ 
  
 ______________________________________________________________________________________________________. 
  

	11.	Bank and Customer agree as follows: 

  

	 	A.	Bank Agrees: 

  
 I. To pick up mail intended for P.O. Box 1541 Dept              at such time as its
messengers or designated agents call at the Post Office. 
  
 II.
To use its best efforts to process remittances received through the above mentioned Post Office Box as outlined in the preceding Operating Instructions. 
  
 The Bank will exercise care to comply with the instructions but will have no liability to the Customer for failure to so comply. 
  

 Page 2 of 5 

  
 LOCK BOX CONTRACT AND
OPERATING INSTRUCTIONS (cont.) 
  

	 	B.	Customer Agrees: 

  
 I. That the Bank shall not be liable to the Customer for any acts of commission or omission hereunder while acting in good faith, except for gross
negligence or willful misconduct; and the Customer agrees to hold the Bank harmless against any claims make against the Bank by parties arising out of the performance by the Bank of its duties and obligations hereunder, including, but not limited to
reasonable attorneys fees and other costs and expenses incurred in defending any such claim. 
  
 II. To compensate the Bank for processing all remittances and other items received through said Post Office Box, for Post Office Box rental incurred by the Bank, for any delivery and postage expenses incurred due to
normal processing, for any postage charges paid by the Bank on envelopes received without sufficient postage, and for any additional miscellaneous charges, such as long distance phone charges, balance reporting calls or microfilm look-up and copy
charges in connection herewith. The fee for these services will be set by the Bank and are subject to change upon thirty (30) day notice. 
  
 III. To pay all fees assessed by the Bank for services rendered until written notification of the intent to cancel, with a termination date, has been
received by the Bank. 
  

	 	C.	Both Parties Agree: 

  
 I. That all the required, necessary and pertinent operating instructions are included in this contract. 
  
 II. That Operating Instructions may be changed or amended only by agreement
of both parties in writing. 
  
 III. That this contract will be
canceled only after receipt of a thirty (30) day written notice by either party of their intent to cancel. This notification must also state the date that the Bank can or will reassign the Customer’s Post Office Box to a different party. These
dates should be no later than six (6) months after the date of the written notice of their intent to cancel. Furthermore, all mail received for the customer on or after the day that the Customer’s Post Office Box can be reassigned to a
different party, will be delivered to the Customer. The Bank reserves the right to withhold delivery of this mail until any and all fees required or expenses incurred are paid for by the Customer. 
  
 IV. That the Bank will charge the Customer’s demand deposit account for
all lock box fees monthly or use the following alternative: 
  
 ___________________________________________________________________________________________________ 
  
 __________________________________________________________________________________________________. 
  

 Page 3 of 5 

 LOCK BOX CONTRACT AND OPERATING INSTRUCTIONS (cont.) 
  

							
	 	 	All customer’s mail should be addressed as follows:	 	 	 	 
				
	  	 	  	 	 	 	  
				
	  	 	  	 	 	 	  
				
	  	 	  	 	 	 	  
				
	  	 	  	 	 	 	  

  
 V. That notices to the
parties involved shall be addressed as indicated below: 
  

							
	 	 	 Customer

	 	 	 	 Bank

				
	  	 	  	 	 	 	 Missouri State Bank

				
	  	 	  	 	 	 	 ATTN: Lock Box Supervisor

				
	  	 	  	 	 	 	 lOl S.Hanley

				
	  	 	  	 	 	 	 St. Louis, MO 63105

  
 VI. The persons to
contact when problems arise in the day-to-day operations are: 
  

											
	 	 	 	 	 Customer

	 	 	 	 	 	 Bank

						
	 	 	 Name:
	 	 	 	 	 	Name:	 	 
						
	 	 	 Title:
	 	 	 	 	 	 Title:
	 	 
						
	 	 	 Phone:
	 	 	 	 	 	 Phone:
	 	 

  
 Or 
  

											
	 	 	 	 	 Customer

	 	 	 	 	 	 Bank

						
	 	 	 Name:
	 	 	 	 	 	Name:	 	 
						
	 	 	 Title:
	 	 	 	 	 	 Title:
	 	 
						
	 	 	 Phone:
	 	 	 	 	 	 Phone:
	 	 

  

 Page 4 of 5 

 LOCK BOX CONTRACT AND OPERATING INSTRUCTIONS (cont.) 
  
 Agreed to on this the
                     day of
                    , 20    . 
  

	
	
	 
	 Agent for Customer

	
	 
	 Agent for Bank

  

 Page 5 of 5 

 FIRST AMENDMENT TO 
 REVOLVING CREDIT AGREEMENT 
  
 THIS FIRST AMENDMENT TO REVOLVING CREDIT AGREEMENT (the “Amendment”) is dated as of 8/24, 2004, between ACCENTIA,
INC., a Florida corporation (herein called the “Borrower”), and MISSOURI STATE BANK AND TRUST COMPANY, a Missouri banking corporation
(herein called the “Lender”). 
  
 WHEREAS,
the parties hereto entered into a Revolving Credit Agreement, dated March 30, 2004 (the “Credit Agreement”), pursuant to which Borrower executed and delivered its Revolving Credit Note in the amount of Two Million Five Hundred Thousand
and no/100 Dollars ($2,500,000) (the “Revolving Credit Note”); and 
  
 WHEREAS, Borrower has asked Lender to increase the amount available for borrowing under the Credit Agreement to Three Million and no/100 Dollars ($3,000,000); and 
  
 WHEREAS, Lender has agreed to do so subject to terms and conditions
set forth herein; 
  
 NOW, THEREFORE, in consideration of
the premises and the mutual covenants and agreements hereinafter set forth, the parties hereto covenant and agree as follows: 
  
 1. Defined Terms. Terms defined in the Credit Agreement shall have the same meanings when used herein. 
  
 2. Amendment to Credit Agreement. The Credit Agreement is hereby
amended, effective as of the date hereof, as follows: 
  
 A. The first recital is hereby amended by deleting therefrom the reference to “$2,500,000” in the first line thereof and substituting in lieu thereof the following: “$3,000,000”. 
  
 B. The definition of Borrowing Base in Section I is hereby
deleted in its entirety and substituted in lieu thereof is the following: 
  
 “Borrowing Base shall mean as of the date of any determination thereof, the lesser of $3,000,000 or the sum of (a) Seventy-Five Percent (75%) of the aggregate face amount of all Eligible Accounts of Borrower and
the Subsidiaries as of the date of computation thereof which are listed (or which in accordance with GAAP should be listed on the books of Borrower and such Subsidiaries as of such date) and (b) Twenty-Five Percent (25%) of the from time to time
fair market value of the Pledged Securities.” 
  

 C. The definition of Loan in Section I is hereby deleted in its entirety and substituted
in lieu thereof is the following: 
  
 “Loan
shall mean that certain revolving credit loan up to $3,000,000 to be made by Lender to Borrower, pursuant to this Agreement.” 
  
 D. Section I is hereby amended by adding thereto a definition of “Pledged Securities”, such definition to read as follows:

  
 “Pledged Securities shall mean the
1,500,000 shares of Star Scientific, Inc. as evidenced by Certificates numbered R12649, R12650, R12651, R12652, R12653 and R12681 which are pledged as collateral security for the obligations of Guarantors under the Unlimited Guaranty.”

  
 E. Section 2.03 of the Credit Agreement is
hereby amended by deleting the reference to “$2,500,000” where it appears in the fourth line of said Section and substituting in lieu thereof the following: “$3,000,000”. 
  
 F. Exhibit A to the Credit Agreement is the form of the
Revolving Credit Note in the original principal amount of $2,500,000. Pursuant to the terms of that certain Promissory Note Modification Agreement, dated as of even date herewith, the Note shall now be in the principal amount of $3,000,000 and
Exhibit A shall be deemed amended accordingly. 
  
 3.
Conditions Precedent. The amendments provided for above shall become effective upon fulfillment of the following conditions precedent: 
  
 A. The Lender shall have received fully executed copies of each of the following: 
  

	 	1.	Two (2) counterparts of this Amendment; 

  

	 	2.	Promissory Note Modification Agreement (for the Revolving Credit Note); 

  

	 	3.	Modification of Intercompany Note Pledge Agreement; 

  

	 	4.	Amended and Restated Intercompany Promissory Note from each of The Analytica Group, TEAMM Pharmaceuticals, and Biovest International, Inc.; 

  

	 	5.	Modification to Security Agreement for each of Accentia, Inc., The Analytica Group, TEAMM Pharmaceuticals, Inc. and Biovest International, Inc.; 

  

	 	6.	Stock Pledge Agreement; and 

  

	 	7.	Reaffirmation of Guaranty from each Guarantor. 

  
 B. The Lender shall have received, in form and substance satisfactory to it, certified copies of all corporate action taken by the
Borrower to authorize the execution, delivery and performance of this Amendment. 
  
 C. No Event of Default as specified in Section V of the Credit Agreement or in any of the other documents executed in connection with the
Credit Agreement and no event 

  

 2 

 
which, with notice or lapse of time or both, would become such an Event of Default, shall have occurred and be continuing as of the date of this Amendment,
the representations and warranties contained in Section III of the Credit Agreement shall be true on and as of said date with the same force and effect as if made on and as of said date; and the President of Borrower by executing this Amendment does
so certify. 
  
 D. An updated list of all
locations at which any of the Collateral is kept. 
  
 4.
Governing Law. This Amendment shall be governed by and construed in accordance with the law of the State of Missouri. 
  
 5. Counterparts. This Amendment may be executed in any number of counterparts all of which taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Amendment by signing any such counterpart. 
  
 6. Ratification. Except as amended hereby the Credit Agreement is in all respects ratified, approved and confirmed. 
  
 7. Writing Required. ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY,
EXTEND CREDIT OR TO FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT, INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT ENFORCEABLE. TO PROTECT YOU (BORROWER) AND US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH
COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the day and year first above
written. 
  

			
	ACCENTIA, INC.
		
	BY:	 	 /s/ Francis E. O’Donnell

	 Name:
	 	 Francis E. O’Donnell, Jr.

	 Title:
	 	 President

	
	MISSOURI STATE BANK AND TRUST COMPANY
		
	BY:	 	 /s/ Kurt N. Kientzle

	 Name:
	 	 Kurt N. Kientzle

	 Title:
	 	 Senior Vice President

  

 3 

 SECOND AMENDMENT TO 
 REVOLVING CREDIT AGREEMENT 
  
 THIS SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT (the “Amendment”) is dated as of February 11, 2005, between ACCENTIA BIOPHARMACEUTICALS, INC.,
F/K/A ACCENTIA, INC., a Florida corporation (herein called the “Borrower”), and MISSOURI STATE BANK AND
TRUST COMPANY, a Missouri banking corporation (herein called the “Lender”). 
  
 WHEREAS, the parties hereto entered into a Revolving Credit Agreement, dated March 30, 2004, as from time to time amended (the “Credit
Agreement”), pursuant to which Borrower executed and delivered its Revolving Credit Note originally in the amount of Two Million Five Hundred Thousand and no/100 Dollars ($2,500,000) and now being in the amount of Three Million and no/100
Dollars ($3,000,000) (the “Revolving Credit Note”); and 
  
 WHEREAS, Borrower and Lender have agreed to amend the Credit Agreement subject to terms and conditions set forth herein; 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter set forth, the parties hereto covenant and
agree as follows: 
  
 1. Defined Terms. Terms defined in
the Credit Agreement shall have the same meanings when used herein. 
  
 2. Amendment to Credit Agreement. The Credit Agreement is hereby amended, effective as of the date hereof, as follows: 
  
 A. Borrower has changed its name to Accentia Biopharmaceuticals, Inc. All references to Accentia, Inc. in the Credit Agreement and all
Exhibits and Schedules thereto shall now read “Accentia Biopharmaceuticals, Inc.” 
  
 B. The definition of Subsidiary in Section I is hereby amended by adding thereto the following: 
  
 “Notwithstanding the foregoing, the term Subsidiary or
Subsidiaries as used in this Agreement and any of the documents executed in connection herewith shall not include BIOVEST INTERNATIONAL, Inc., a Delaware corporation (“BIOVEST”), even though the parties hereto recognize that BIOVEST is a
subsidiary of Borrower.” 
  
 C. Except as
hereby amended, the Credit Agreement remains in full force and effect. 
  

 3. Conditions Precedent. The amendments provided for above shall become effective upon fulfillment
of the following conditions precedent: 
  
 A. The
Lender shall have received fully executed copies of each of the following: 
  

	 	1.	Two (2) counterparts of this Amendment; 

  

	 	2.	Modification of Intercompany Note Pledge Agreement; and 

  

	 	3.	Modification to Security Agreement for each of Accentia, Inc., The Analytica Group and TEAMM Pharmaceuticals, Inc. 

  
 B. The Lender shall have received, in form and substance
satisfactory to it, certified copies of all corporate action taken by the Borrower to authorize the execution, delivery and performance of this Amendment. 
  
 C. No Event of Default as specified in Section V of the Credit Agreement or in any of the other documents executed in connection with the
Credit Agreement and no event which, with notice or lapse of time or both, would become such an Event of Default, shall have occurred and be continuing as of the date of this Amendment, the representations and warranties contained in Section III of
the Credit Agreement shall be true on and as of said date with the same force and effect as if made on and as of said date; and the President of Borrower by executing this Amendment does so certify. 
  
 D. An updated list of all locations at which any of the
Collateral is kept. 
  
 4. Governing Law. This Amendment
shall be governed by and construed in accordance with the law of the State of Missouri. 
  
 5. Counterparts. This Amendment may be executed in any number of counterparts all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Amendment
by signing any such counterpart. 
  
 6. Ratification.
Except as amended hereby the Credit Agreement is in all respects ratified, approved and confirmed. 
  
 7. Writing Required. ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT, INCLUDING
PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT ENFORCEABLE REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER) AND US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT,
ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT. 
  

 2 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the day and
year first above written. 
  

			
	ACCENTIA BIOPHARMACEUTICALS, INC., F/K/A ACCENTIA,
INC.
		
	 BY:
	 	 /s/ Francis E. O’Donnell

	 Name:
	 	 Francis E. O’Donnell, Jr.

	 Title:
	 	 President

	
	MISSOURI STATE BANK AND TRUST COMPANY
		
	 BY:
	 	 /s/ Kurt N. Kientzle

	 Name:
	 	 Kurt N. Kientzle

	 Title:
	 	 Executive Vice President

  

 3 

 THIRD AMENDMENT TO 
 REVOLVING CREDIT AGREEMENT 
  
 THIS THIRD AMENDMENT REVOLVING CREDIT AGREEMENT (the “Amendment” dated as of March 22, 2005, between ACCENTIA BIOPHARMACEUTICALS, INC., a Florida corporation, f/k/a Accentia, Inc.
(herein called the “Borrower”), and MISSOURI STATE BANK AND TRUST COMPANY, a Missouri banking corporation (herein called the “Lender”).

  
 WHEREAS, the parties hereto entered into a. Revolving
Credit Agreement, dated March 30, 2004, as from time to time amended (the “Credit Agreement”), pursuant to which Borrower executed and delivered its Revolving Credit Note originally in the amount of Two Million Five Hundred Thousand and
no/ 100 Dollars ($2,500,000) and now being in the amount of Three Million and no/I 00 Dollars ($3,000,000) (the “Revolving Credit Note”); and 
  
 WHEREAS, Borrower has asked Lender to increase the amount available for borrowing under the Credit Agreement to Four Million Five Hundred Thousand
and no/100 Dollars ($4,500,000); and 
  
 WHEREAS, Lender
has agreed to do so subject to terms and conditions set forth herein; 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter set forth, the patties hereto covenant and agree as follows: 
  
 1. Defined Terms. Terms defined in the Credit Agreement shall have the same meanings when used herein. 
  
 2. Amendment to Credit Agreement. The Credit Agreement is hereby
amended, effective as of the date hereof, as follows: 
  
 A. The first recital is hereby amended by deleting therefrom the reference to “$3,000,000” in the first line thereof and substituting in lieu thereof the following: “$4,500,000”. 
  
 B. The definition of Borrowing Base in Section 1 is hereby
deleted in its entirety and substituted in lieu thereof is the following: 
  
 “Borrowing Base shall mean as of the date of any determination thereof, the lesser of $4,500,000 or the sum of (a) Seventy-Five Percent (75%) of the aggregate face amount of all Eligible Accounts of Borrower and
the Subsidiaries as of the date of computation thereof which are listed (or which in accordance with GAAF should be listed on the books of Borrower and such Subsidiaries as of such date) and (b) Twenty-Five Percent (25%) of the from time to time
fair market value of the Pledged Securities.” 
  

 C. The definition of Loan in Section us hereby deleted in its entirety and substituted in
lieu thereof is the following: 
  
 “Loan
shall mean that certain revolving credit loan up to $4,500,000 to be made by Lender to Borrower, pursuant to this Agreement.” 
  
 D. The definition of Maturity Date in Section us hereby deleted in its entirety and substituted In lieu thereof is the following:
“Maturity Date shall mean May 15, 2005.” 
  
 E. Section 2.03 of the Credit Agreement is hereby amended by deleting the reference to “$3,000,000” where it appears in the fourth line of said Section and substituting in lieu thereof the following: “$4,500,000”.

  
 F. Exhibit A to the Credit Agreement is the
form of the Revolving Credit Note in the original principal amount of $3,000,000. Pursuant to the terms of that certain Promissory Note Modification Agreement, dated as of even date herewith, the Note shall now be in the principal amount of
$4,500,000 and Exhibit A shall be deemed amended accordingly. 
  
 3. Conditions Precedent. The amendments provided for above shall become effective upon fulfillment of the following conditions precedent: 
  
 A. The Lender shall have received fully executed copies of each of the following: 
  

	 	1.	Two (2) counterparts of this Amendment; 

  

	 	2.	Promissory Note Modification Agreement (for the Revolving Credit Note); 

  

	 	3.	Modification of Intercompany Note Pledge Agreement; 

  

	 	4.	Amended and Restated Intercompany Promissory Note from each of The Analytica Group and TEAMM Pharmaceuticals; 

  

	 	5.	Modification to Security Agreement for each of Accentia, Inc., The Analytica Group and TEAMM Pharmaceuticals, Inc.; and 

  

	 	6.	Reaffirmation of Guaranty from each Guarantor. 

  
 B. The Lender shall have received, in form and substance satisfactory to it, certified copies of all corporate action taken by the
Borrower to authorize the execution, delivery and performance of this Amendment. 
  
 C. No Event of Default as specified in Section V of the Credit Agreement or in any of the other documents executed in connection with the
Credit Agreement and no event which, with notice or lapse of time or both, would become such an Event of 

  

 2 

 
Default, shall have occurred and be continuing as of the date of this Amendment, the representations and warranties contained in Section Ill of the Credit
Agreement shall be true on and as of said date with the same force and effect as if made on and as of said date; and the President of Borrower by executing this Amendment does so certify. 
  
 D. An updated list of all locations at which any of the
Collateral is kept. 
  
 4. Governing Law. This Amendment
shall be governed by and construed in accordance with the law of the State of Missouri. 
  
 5. Counterparts. This Amendment may be executed in any number of counterparts all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Amendment
by signing any such counterpart. 
  
 6. Ratification.
Except as amended hereby the Credit Agreement is in all respects ratified, approved and confirmed. 
  
 7. Writing Required. ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT, INCLUDING
PROMISES TO EXTEND OR RENEW SUCH DEBT. ARE NOT ENFORCEABLE REGARDLESS OF TEE LEGAL THEORY UPON WI-UGH IT IS BASED THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER) AND US (CREDITOR) FROM MISUNDERSTANDING OR
DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT. 
  
 [Remainder of page intentionally left blank] 
  

 3 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the day and
year first above written. 
  

			
	 ACCENTIA BIOPHARMACEUTICALS, INC.,
 f/k/a Accentia, Inc.

		
	BY:	 	 /s/ Francis E. O’Donnell

	 Name:
	 	 Francis E. O’Donnell, Jr.

	 Title:
	 	 President

	
	 MISSOURI STATE BANK AND TRUST
COMPANY

		
	BY:	 	 /s/ Kurt N. Kientzle

	 Name:
	 	 Kurt N. Kientzle

	 Title:
	 	 Executive Vice President

  

 4 

 REVOLVING CREDIT NOTE MODIFICATION AGREEMENT 
  
 THIS REVOLVING CREDIT NOTE MODIFICATION AGREEMENT (the “Amendment”)
is dated as of March 22, 2005, between ACCENTIA BIOPHARMACEUTICALS, INC., a Florida corporation, f/k/a Accentia, Inc. (herein called the “Borrower”) and MISSOURI
STATE BANK AND TRUST COMPANY, a Missouri banking corporation (herein called the “Lender”). 
  
 WHEREAS, Borrower and Lender entered into a Revolving Credit Agreement dated March 30, 2004, as from time to time
amended (the “Credit Agreement”), pursuant to which Borrower executed and delivered its Revolving Credit Note originally in the amount of Two Million Five Hundred Thousand and no/100 Dollars ($2,500,000) and now being in the amount of
Three Million and no/100 Dollars ($3,000,000) (the “Revolving Credit Note”); and 
  
 WHEREAS, Borrower has asked Lender to increase the amount available for borrowing under the Credit Agreement to Four Million Five Hundred Thousand and no/100 Dollars ($4,500,000); and 
  
 WHEREAS, Lender agreed to do so subject to the terms and conditions
contained herein; 
  
 NOW, THEREFORE, in consideration of
the premises and the mutual covenants and agreements hereinafter set forth, the patties hereto covenant and agree as follows: 
  
 8. Defined Terms. Terms defined in the Credit Agreement and the Revolving Credit Note shall have the same meanings when used herein. 
  
 9. Amendment to Revolving Credit Note. 
  
 (a) The Revolving Credit Note is hereby amended, effective
as of the date hereof, to delete all references to “$3,000,000” wherever they may appear and to substitute in lieu thereof the following: “$4,500,000”. 
  
 (b) The Revolving Credit Note is hereby further amended, effective as of the date hereof, by deleting the
date “March 30, 2005” where it appears in the fifth line of the second paragraph thereof and substituting in lieu thereof the following: “May 15, 2005”. 
  
 10. Governing Law. This Amendment shall be governed by and construed in accordance with the law of the State of
Missouri. 
  
 11. Counterparts. This Amendment may be
executed in any number of counterparts all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Amendment by signing any such counterpart. 
  
 12. Ratification. Except as amended hereby the Credit Agreement is in
all, respects ratified, approved and confirmed. 
  
 13. Writing
Required. ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR FROM ENFORCING REPAYMENT OF A 

  

 5 

 
DEBT, INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT ENFORCEABLE REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED THAT IS IN ANY WAY RELATED
TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER) AND US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF TEE AGREEMENT
BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the day and year first above written. 
  

			
	 ACCENTIA BIOPHARMACEUTICALS, INC.,
 f/k/a Accentia, Inc.

		
	BY:	 	 /s/ Francis E. O’Donnell

	 Name:
	 	 Francis E. O’Donnell, Jr.

	 Title:
	 	 President

	
	MISSOURI STATE BANK AND TRUST COMPANY
		
	BY:	 	 /s/ Kurt N. Kientzle

	 Name:
	 	 Kurt N. Kientzle

	 Title:
	 	 Executive Vice President

  

 6 

 SECOND AMENDMENT TO 
 SECURITY AGREEMENT 
  
 THIS
SECOND AMENDMENT TO SECURITY AGREEMENT (the “Amendment”) is dated as of March 22, 2005, between ACCENTIA BIOPHARMACEUTICALS, INC., a Florida corporation, f/k/a Accentia, Inc. (herein called the “Borrower”), and MISSOURI STATE
BANK AND TRUST COMPANY, a Missouri banking corporation (herein called the “Lender”). 
  
 WHEREAS, the parties hereto entered into a Revolving Credit Agreement, dated March 30, 2004, as from time to tune amended (the “Credit Agreement”), pursuant to which Borrower executed and delivered its
Revolving Credit Note originally in the amount of Two Million Five Hundred Thousand and no/100 Dollars ($2,500,000) and now being in the amount of Three Million and no/i 00 Dollars ($3,000,000) (the “Revolving Credit Note”); and

  
 WHEREAS, Borrower has asked Lender to increase the amount
available for borrowing under the Credit Agreement to Four Million Five Hundred Thousand and no/100 Dollars ($4,500,000); and 
  
 WHEREAS, Lender has agreed to do so subject to terms and conditions set forth herein; 
  
 WHEREAS, as Collateral for the Obligations (as those terms are defined in the Credit Agreement), Borrower granted Lender a
security interest therein pursuant to that certain Security Agreement, dated March 30, 2004, as from time to time amended (the “Security Agreement”); 
  

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter set forth, the parties hereto covenant and agree
as follows: 
  
 1. Defined Terms. Terms defined in the
Credit Agreement and the Security Agreement shall have the same meanings when used herein. 
  
 2. Amendment to Security Agreement. The Security Agreement is hereby amended, effective as of the date hereof, as follows: The first paragraph is hereby amended by deleting therefrom the reference to
“$3,000,000” in the third line thereof and substituting in lieu thereof the following: “$4,500,000”. 
  
 3. Governing Law. This Amendment shall be governed by and construed in accordance with the law of the State of Missouri. 
  
 4. Counterparts. This Amendment may be executed in any number of
counterparts all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Amendment by signing any such counterpart. 
  
 5. Ratification. Except as amended hereby the Credit Agreement is in all respects ratified, approved and confirmed.

  
 6. Writing Required. ORAL AGREEMENTS OR COMMITMENTS TO
LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT, INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT 

  

 7 

 
ENFORCEABLE REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER) AND US
(CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO
MODIFY IT. 
  
 IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to be duly executed as of the day and year first above written. 
  

			
	 ACCENTIA BIOPHARMACEUTICALS, INC.,
 f/k/a Accentia, Inc.

		
	BY:	 	 /s/ Francis E. O’Donnell

	 Name:
	 	 Francis E. O’Donnell, Jr.

	 Title:
	 	 President

	
	MISSOURI STATE BANK AND TRUST COMPANY
		
	BY:	 	 /s/ Kurt N. Kientzle

	 Name:
	 	 Kurt N. Kientzle

	 Title:
	 	 Executive Vice President

  

 8 

 MODIFICATION OF 
 INTERCOMPANY NOTE PLEDGE AGREEMENT 
  
 THIS MODIFICATION OF INTERCOMPANY NOTE PLEDGE AGREEMENT (the “Amendment”) is dated as of March 22, 2005, between ACCENTIA BIOPHARMACEUTICALS, INC., a Florida corporation, f/k/a Accentia, Inc. (herein called
the “Borrower”), and MISSOURI STATE BANK AND TRUST COMPANY, a. Missouri banking association (herein called the “Lender”). 
  
 WHEREAS, the parties hereto entered into a Revolving Credit Agreement,
dated August 25, 2004, as from time to time amended (the “Credit Agreement”) and Borrower executed and delivered its Revolving Credit Note originally in the amount of $2,500,000 and now being in the amount of Three Million and no/100
Dollars ($3,000,000) (the “Revolving Credit Note”); and 
  
 WHEREAS, as part of the collateral for the Revolving Credit Note, Borrower pledged all of its right, title and Interest in and to those certain intercompany notes of Borrower’s subsidiaries pursuant to an Intercompany Note
Pledge Agreement, dated March 30, 2004, as from time to lime amended (the “Note Pledge Agreement”); and 
  
 WHEREAS, Borrower has requested that the borrowing availability under the Revolving Credit Note be increased to $4,500,000 and Lender has so agreed
subject to the terms arid conditions set forth below; and 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter set forth, the parties hereto covenant and agree as follows: 
  
 1. Defined Terms. Terms defined in the Credit Agreement and Note Pledge Agreement shall have the same meanings when
used herein. 
  
 2. Amendment to Note Pledge Agreement. The
Note Pledge Agreement is hereby amended, effective as of the date hereof, as follows: Schedule A is hereby deleted in its entirety and substituted in lieu thereof is Schedule A attached hereto and by this reference incorporated herein. 

 
 3. Governing Law. This Amendment shall be governed by and construed
in accordance with the law of the State of Missouri. 
  
 4.
Counterparts. This Amendment may be executed in any number of counterparts all of which taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Amendment by signing any such counterpart.

  
 5. Ratification. Except as amended hereby the Credit
Agreement is in all respects ratified, approved and continued. 
  
 6. Writing Required. ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT, INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT 

  

 9 

 
ENFORCEABLE REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER) AND US
(CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO
MODIFY IT. 
  
 IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to be duly executed as of the day and year first above written. 
  

			
	 ACCENTIA BIOPHARMACEUTICALS, INC.,
 f/k/a Accentia, Inc.

		
	BY:	 	 /s/ Francis E. O’Donnell

	 Name:
	 	 Francis E. O’Donnell, Jr.

	 Title:
	 	 President

	
	MISSOURI STATE BANK AND TRUST COMPANY
		
	BY:	 	 /s/ Kurt N. Kientzle

	 Name:
	 	 Kurt N. Kientzle

	 Title:
	 	 Executive Vice President

  

 10 

 Schedule A 
  
 Pledged Instruments 
  

						
	 Date

	  	 Maker

	  	Amount

	 March 23, 2005
	  	The Analytica Group, Inc.	  	$	4,500,000
	 March 23, 2005
	  	TEAMM Pharmaceuticals, Inc.	  	$	4,500,000

  

 11 

 THIS PROMISSORY NOTE AMENDS AND RESTATES THAT CERTAIN PROMISSORY NOTE DATED AUGUST 25, 2004, IN THE
ORIGINAL PRINCIPAL AMOUNT OF $3,000,000 MADE BY THE UNDERSIGNED FOR THE BENEFIT OF ACCENTIA, INC. N/K/A ACCENTIA BIOPHARMACEUTICALS, INC. 
  
 AMENDED AND RESTATED 
 PROMISSORY
NOTE 
  

			
	 $4,500,000.00
	 	 St. Louis, Missouri
 Date: March 23, 2005

  
 The Analytica Group,
Inc., a Florida corporation (the “Maker”), for value received, HEREBY PROMISES TO PAY TO THE ORDER OF ACCENTIA BIOPHARMACEUTICALS, INC., a 
  
 Florida corporation, f/k/a Accentia, Inc., upon demand, the principal sum of Four Million Five Hundred Thousand and no/i 00 Dollars ($4,500,000.00) or
such lesser amount as maybe outstanding hereunder, and to pay interest on said principal sum from time to time outstanding hereunder, from the date hereof until this note is paid in full, at a per annum rate equal to the from time to time prime rate
of Missouri State Bank and Trust Company (the “Prime Rate”) plus one percent (1%). Upon demand if this Note is not paid in full, interest shall accrue at a per annum rate equal to the Prime Rate plus five percent (5%). 
  
 Maker reserves the right to prepay this note in whole or in part any time and
from time to time without premium or penalty and without prior notice to or the consent of the holder thereof. 
  
 Maker hereby waives all notices of every kind in connection with the making, delivery or performance of this note excepting only demand for payment. Maker
further waives presentment, protest and notice of nonpayment and dishonor. 
  
 This Note shall be governed by and construed in accordance with the substantive laws of the State of Missouri (without reference to conflict of law principles). 
  

			
	 THE ANALYTICA GROUP, INC.,
 a Florida corporation

		
	By:	 	 /s/ James McNulty

	 Name:
	 	 James A. McNulty

	 Title:
	 	 Secretary

  

 12 

 THIS PROMISSORY NOTE AMENDS AND RESTATES THAT CERTAIN PROMISSORY NOTE DATED AUGUST 25,2004, IN THE
ORIGINAL PRINCIPAL AMOUNT OF $3,000,000 MADE BY THE UNDERSIGNED FOR THE BENEFIT OF ACCENTIA,, INC. N/K/A ACCENTIA BIOPHARMACEUTICALS, INC. 
  
 AMENDED AND RESTATED 
 PROMISSORY
NOTE 
  

			
	 $4,500,000.00
	 	 St. Louis, Missouri
 Date: March 23, 2005

  
 TEAMM Pharmaceuticals,
Inc., a Florida corporation (the “Maker”), for value received, HEREBY PROMISES TO PAY TO THE ORDER OF ACCENTIA BIOPHARMACEUTICALS, INC., a Florida corporation, 17k/a Accentia, Inc., upon demand, the principal sum of Four Million Five
Hundred Thousand and no/100 Dollars ($4,500,000.00) or such lesser amount as maybe outstanding hereunder, and to pay interest on said principal sum from time to time outstanding hereunder, from the date hereof until this note is paid in full, at a
per annum rate equal to the from time to time prime rate of Missouri State Bank and Trust Company (the “Prime Rate”) plus one percent (1%). Upon demand if this Note is not paid in full, interest shall accrue at a per annum rate equal to
the Prime Rate plus five percent (5%). 
  
 Maker reserves the
right to prepay this note in whole or in part any time and from time to time without premium or penalty and without prior notice to or the consent of the holder thereof. 
  
 Maker hereby waives all notices of every kind in connection with the making, delivery or performance of this note excepting
only demand for payment. Maker further waives presentment, protest and notice of nonpayment and dishonor. 
  
 This Note shall be governed by and construed in accordance with the substantive laws of the State of Missouri (without reference to conflict of law
principles). 
  

			
	 TEAMM Pharmaceuticals, Inc.,
 a Florida corporation

		
	By:	 	 /s/ James McNulty

	 Name:
	 	 James A. McNulty

	 Title:
	 	 Secretary

  

 13 

 THIRD AMENDMENT TO INTERCOMPANY LOAN AGREEMENT 
  
 THIS THIRD AMENDMENT TO INTERCOMPANY LOAN AGREEMENT (the
“Amendment”) is dated as of March 22, 2005, between ACCENTIA BIOPHARMACEUTICALS, INC., a Florida corporation, f/k/a Accentia, Inc. (herein called the “Company”), arid the undersigned subsidiaries of the Company (the
“Subsidiaries”). 
  
 WHEREAS, the Company and Missouri
State Bank and Trust Company, a Missouri banking corporation (“Lender”) have entered into a Revolving Credit Agreement, dated March 30, 2004. as from time to time amended (the “Credit Agreement”), pursuant to which the Company
executed and delivered a Revolving Credit Note, dated March 30, 2004, in the original principal amount of $2,500,000 and now being Iii the amount of Three Million and no/100 Dollars ($3,000,000) (the “Revolving Credit Note”); and

  
 WHEREAS, the Company has asked Lender to Increase the
availability under the Credit Agreement from $3,000,000 to $4,500,000 and Lender has so agreed; and 
  
 WHEREAS, in conjunction with such increase in the credit availability to the Company, the Company has agreed to increase the credit available to the
Subsidiaries pursuant to that Intercompany Loan Agreement, dated March 30, 2004, as from lime to time amended (the “Intercompany Loan Agreement”) from $3,000,000 to $4,500,000 to be evidenced by Amended and Restated Promissory Notes of The
Analytica Group, Inc. and TEAMM Pharmaceuticals, Inc., both being Florida corporations and both being subsidiaries of the Company; 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereafter set forth, the parties hereto covenant and agree as
follows: 
  
 1. Defined Terms. Terms defined in the
Intercompany Loan Agreement shall have the same meanings when used herein. 
  
 2. Amendment to Intercompany Loan Agreement. The Intercompany Loan Agreement is hereby amended, effective as of the date hereof; by deleting the first sentence of the second paragraph of Section 2(a) in its
entirety and substituting in lieu thereof the following: 
  
 “For purpose hereof the term ‘Borrowing Base’ shall mean as of the date of any determination thereof the lesser of (a) $4,500,000 or (b) the sum of (i) 75% of the Eligible Accounts of the Subsidiaries
and Company as of the date of the computation thereof which axe listed or which in accordance with GAAP should be listed on the books of the Subsidiaries and the Company and (ii) 25% of the from time to time fair market value of those 1,500,000
shares of Star Scientific, Inc. as evidenced by Certificates numbered R12649, R12650, R12651, R12652, R12653 and R12681 which have been pledged to the Bank as collateral for loans to Lender.” 
  
 3. Amended and Restated Note. Each Subsidiary shall execute and
deliver an Amended and Restated Promissory Note substantially in the form of Exhibit A attached hereto 

  

 14 

 
and by this reference incorporated herein, This requirement shall be a condition precedent to the effectiveness of this Agreement. 
  
 4. Governing Law. This Amendment shall be governed by and construed in
accordance with the law of the State of Missouri. 
  
 5.
Counterparts. This Amendment may be executed in any number of counterparts all of winch taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Amendment by signing any such counterpart.

  
 6. Ratification. Except us amended hereby the Credit
Agreement is in all respects ratified, approved and confirmed. 
  
 7. Writing Required. ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR PROM ENFORCING REPAYMENT OF A DEBT, INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT ENFORCEABLE REGARDLESS OF THE LEGAL THEORY
UPON WHICH IT IS BASED THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT TO PROTECT YOU (COMPANY) AND US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED TN THIS WRITING, WHICH IS THE
COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT. 
  
 [Remainder of page intentionally left blank.] 
  

 15 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the day and
year first above written. 
  

			
	 ACCENTIA BIOPHARMACEUTICALS, INC.,
 f/k/a Accentia, Inc.

		
	 BY:
	 	 /s/ Francis E. O’Donnell

	 Name:
	 	 Francis E. O’Donnell, Jr.

	 Title:
	 	 President

	
	 THE ANALYTICA GROUP, INC.

		
	 By:
	 	 /s/ James McNulty

	 Name:
	 	 James A. McNulty

	 Title:
	 	 CFO/Secretary

	 Jurisdiction of Incorporation: Florida

			
	 Commitment:
	 	the lesser of $4,500,000 or Borrowing Base

			
	
	 TEAMM PHARMACEUTICALS, INC.

		
	 By:
	 	 /s/ James McNulty

	 Name:
	 	 James A. McNulty

	 Title:
	 	 CFO/Secretary

	 Jurisdiction of Incorporation: Florida

			
	 Commitment:
	 	the lesser of $4,500,000 or Borrowing Base

  

 16 

 THIRD AMENDMENT TO INTERCOMPANY 
 SECURITY AGREEMENT 
  
 THIS THIRD AMENDMENT TO INTERCOMPANY SECURITY AGREEMENT (the “Amendment”) is dated as of March 22, 2005, between TEAMM PHARMACEUTICALS, INC., a Florida corporation (herein called the “Borrower”),
and ACCENTIA BIOPHARMACEUTICALS, INC., a Florida corporation, f/k/a Accentia, Inc. (herein called the “Lender”). 
  
 WHEREAS, Lender, pursuant to that certain Intercompany Loan Agreement, dated March 30, 2004, as from time to time amended (the “Loan
Agreement”), by and among Lender and Borrower and The Analytica Group, Inc., a Florida corporation (“Analytica”), (Borrower and Analytica being sometimes hereinafter referred to as the “Subsidiaries”), agreed to make
available to the Subsidiaries revolving credit loans originally in an amount not to exceed Two Million Five Hundred Thousand Dollars and no/100 Dollars ($2,500,000) and now being in an amount not to exceed Three Million Dollars ($3,000,000), and
each Subsidiary executed and delivered its Amended and Restated Promissory Note in the amount of Three Million and no/100 Dollars ($3,000,000) (the “Note”); and 
  
 WHEREAS, Borrower and the other Subsidiaries have asked Lender to increase the amount available for borrowing under the Loan
Agreement to Four Million Five Hundred Thousand and no/I 00 Dollars ($4,500,000); and 
  
 WHEREAS, Lender has agreed to do so subject to terms and conditions set forth herein; 
  
 WHEREAS, as Collateral for the Obligations (as those terms axe defined in the Loan Agreement), Borrower granted Lender a security interest therein
pursuant to that certain Security Agreement, dated March 30, 2004, as from tune to dine amended (the “Security Agreement”); 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter set forth, the parties hereto covenant and agree as
follows: 
  
 1. Defined Terms. Terms defined in the Loan
Agreement and the Security Agreement shall have the same meanings when used herein. 
  
 2. Amendment to Security Agreement. The Security Agreement is hereby amended, effective as of the date hereof, as follows: The first paragraph is hereby amended by deleting therefrom the reference to
“$3,000,000” in the third line thereof and substituting in lieu thereof the following: “$4,500,000”. 
  
 3. Governing Law. This Amendment shall be governed by and construed in accordance with the law of the State of Missouri. 
  
 4. Counterparts. This Amendment may be executed in any number of
counterparts all of which taken together shall constitute one and the same instrument, end any of the parties hereto may execute this Amendment by signing any such counterpart. 
  

 17 

 5. Ratification. Except as amended hereby the Credit Agreement is in all respects ratified,
approved and confirmed. 
  
 6. Writing Required. ORAL
AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT, INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT ENFORCEABLE REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED THAT IS IN ANY WAY
RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER) AND US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE
AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the day and year first above written. 
  

			
	 TEAMM PHARMACEUTICALS, INC.

		
	 By:
	 	 /s/ James McNulty

	 Name:
	 	 James A. McNulty

	 Title:
	 	 Secretary

	
	 ACCENTIA BIOPHARMACEUTICALS, INC.
 f/k/a Accentia, Inc.

		
	 By:
	 	 /s/ Francis E. O’Donnell

	 Name:
	 	 Francis E. O’Donnell, Jr.

	 Title:
	 	 President

  

 18 

 THIRD AMENDMENT TO INTERCOMPANY 
 SECURITY AGREEMENT 
  
 THIS THIRD AMENDMENT TO INTERCOMPANY SECURITY AGREEMENT (the “Amendment”) is dated as of March 22, 2005, between THE ANALYTICA GROUP, INC., a Florida corporation (herein called the “Borrower”), and
ACCENTIA BIOPHARMACEUTICALS, INC., a Florida corporation, f/k/a Accentia, Inc. (herein called the “Lender”). 
  
 WHEREAS, Lender, pursuant to that certain Intercompany Loan Agreement, dated March 30, 2004, as from time to time amended (the “Loan
Agreement”), by and among Lender and Borrower and TEAMM Pharmaceuticals, Inc., a Florida corporation (“TEAMM”), (Borrower and TEAMM being sometimes hereinafter referred to as the “Subsidiaries”), agreed to make available to
the Subsidiaries revolving credit loans originally in an amount not to exceed Two Million Five Hundred Thousand Dollars and no/100 Dollars ($2,500,000) and now being in an amount not to exceed ‘Three Million Dollars ($3,000,000), and each
Subsidiary executed and delivered its Amended and Restated Promissory Note in the amount of Three Million and no/100 Dollars ($3,000,000) (the “Note”); and 
  
 WHEREAS, the Subsidiaries have asked Lender to increase the amount available for borrowing under the Loan Agreement to Four
Million Five Hundred Thousand and no/100 Dollars ($4,500,000); and 
  
 WHEREAS, Lender has agreed to do so subject to terms and conditions set forth herein; 
  
 WHEREAS, as Collateral for the Obligations (as those terms are defined in the Loan Agreement), Borrower granted Lender a security interest therein pursuant to that certain Security Agreement, dated March 30, 2004, as
from time to time amended (the “Security Agreement”); 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements hereinafter set forth, the parties hereto covenant and agree as follows: 
  
 1. Defined Terms. Terms defined in the Loan Agreement and the Security Agreement shall have the same meanings when
used herein. 
  
 2. Amendment to Security Agreement. The
Security Agreement is hereby amended, effective as of the date hereof, as follows: The first paragraph is hereby amended by deleting therefrom the reference to ‘$3,000,000” in the third line thereof and substituting in lieu thereof the
following: “$4,500,000”. 
  
 3. Governing Law.
This Amendment shall be governed by and construed in accordance with the law of the State of Missouri. 
  
 4. Counterparts. This Amendment may be executed in any number of counterparts all of which taken together shall constitute one and the Seine
instrument, and any of the parties hereto may execute this Amendment by signing any such counterpart. 
  

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 5. Ratification. Except as amended hereby the Credit Agreement is in all respects ratified,
approved and confirmed. 
  
 6. Writing Required. ORAL
AGREEMENTS OR COMMITMENT TO LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR FROM ENFORCING REPAYMENT OF A DEBT, INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT ENFORCEABLE REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED THAT IS IN ANY WAY
RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER) AND US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE
AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE N WRITING TO MODIFY IT. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the day and year first above written. 
  

			
	 THE ANALYTICA GROUP, INC.

		
	 By:
	 	 /s/ James McNulty

	 Name:
	 	 James A. McNulty

	 Title:
	 	 Secretary/Treasurer

	
	 ACCENTIA BIOPHARMACEUTICALS, INC.
 f/k/a Accentia, Inc.

		
	 By:
	 	 /s/ Francis E. O’Donnell

	 Name:
	 	 Francis E. O’Donnell, Jr.

	 Title:
	 	 President

  

 20Harbinger Loan Agreement

  
 Exhibit 10.38

  
 LOAN AGREEMENT

  
 THIS LOAN AGREEMENT (“Agreement”), dated as
of the 9th day of August, 2002, is made and entered into on the terms and conditions hereinafter set forth, by and
between TEAMM PHARMACEUTICALS, INC., a Delaware corporation (“Borrower”), and HARBINGER MEZZANINE PARTNERS, L.P., a Delaware limited partnership (“Lender”). 
  
 RECITALS: 
  
 WHEREAS, Borrower has requested that Lender make available to Borrower a term loan in the original principal amount of
55,000,000 (the “Loan”) on the terms and conditions hereinafter set forth, and for the purpose(s) hereinafter set forth; and 
  
 WHEREAS, in order to induce Lender to make the Loan to Borrower, Borrower has made certain representations to Lender; and 
  
 WHEREAS, Lender, in reliance upon the representations and inducements of
Borrower, has agreed to make the Loan upon the terms and conditions hereinafter set forth. 
  
 AGREEMENT: 
  
 NOW, THEREFORE, in consideration of the agreement of Lender to make the Loan, the mutual covenants and agreements hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Borrower and Lender hereby agree as follows: 
  
 ARTICLE 1 
 THE LOAN 
  
 1.1 Evidence of Loan Indebtedness and Repayment. Subject to the terms and conditions contained herein, the Lender shall make the Loan to
Borrower by wire transfer in immediately available funds. The Loan shall he evidenced by a Secured Promissory Note in the original principal amount of $5,000,000 dated as of the date hereof, executed by Borrower in favor of Lender, in a form
acceptable to Lender (the “Note”). The Loan shall be payable in accordance with the terms of the Note. The Note, this Agreement and any other instruments and documents executed by Borrower, any guarantor of Borrower, or any shareholder,
member, partner, subsidiary or affiliate of Borrower (“Affiliates”), now or hereafter evidencing, securing or in any way related to the indebtedness evidenced by the Note are herein individually referred to as a “Loan Document”
and collectively referred to as the “Loan Documents.” The term “Obligations” as used herein shall refer to (a) the Loan to be made concurrently or in connection with this Agreement, as evidenced by the Note, and any renewals or
extensions thereof, (b) the full and prompt payment and performance of any and all other indebtednesses and other obligations of Borrower to Lender, direct or contingent (including but not limited to obligations incurred as indorser, guarantor or
surety), however evidenced or denominated, and however and 

  

 
whenever incurred, including but not limits to indebtednesses incurred pursuant to any present or future commitment of Lender to Borrower and (c) all future
advances made by Lender for taxes, levies, insurance and preservation of the collateral securing the Loan (“Collateral”) and all attorneys’ fees, court costs and expenses of whatever kind incident to the collection of any of said
indebtedness or other obligations and the enforcement and protection of the security interest created hereby or by the other Loan Documents. 
  
 1.2 Processing Fee. Borrower shall pay Lender a processing fee of $100,000, $25,000 of which has previously been paid to Lender and
$75,000 of which shall be paid on the date the Loan is funded. 
  
 1.3 Prepayment. Borrower may prepay the indebtedness evidenced by the Note in whole or in part at any time and from time to time, without penalty or premium. 
  
 1.4 Purposes of Loan and Use of Proceeds. The purpose of the Loan shall be to provide additional working
capital to Borrower. 
  
 ARTICLE 2 
 REPRESENTATIONS AND WARRANTIES 
  
 2.1 Borrower’s Representations. Borrower hereby represents and warrants to Lender as follows: 
  
 (a) Corporate Status. Borrower is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware; and has the corporate power to own and operate its properties, to carry on its business as now conducted and to enter into and to perform its obligations under
this Agreement and the other Loan Documents to which it is a party. Borrower is duly qualified to do business and in good standing in each state in which a failure to be so qualified would have a material adverse effect on Borrower’s financial
condition or its ability to conduct its business in the manner now conducted. 
  
 (b) Subsidiaries. Borrower neither owns nor has an interest in, directly or indirectly, any other corporation, partnership, joint venture or other business organization (“Subsidiaries”). 

 
 (c) Authorization. Borrower has full legal right,
power and authority to conduct its business and affairs. Borrower has full legal right, power and authority to enter into and perform its obligations under the Loan Documents, without the consent or approval of any other person, firm, governmental
agency or other legal entity. The execution and delivery of this Agreement, the borrowing hereunder, the execution and delivery of each Loan Document to which Borrower is a party, and the performance by Borrower of its obligations thereunder are
within the corporate powers of Borrower and have been duly authorized by all necessary corporate action properly taken and Borrower has received all necessary governmental approvals, if any, that are required. The officer(s) executing this
Agreement, the Note and all of the other Loan Documents to which Borrower is a party are duly authorized to act on behalf of Borrower. 
  

 2 

 (d) Validity and Binding Effect. This Agreement and the other Loan Documents are
the legal, valid and binding obligations of Borrower, enforceable in accordance with their respective terms, subject to limitations imposed by bankruptcy, insolvency, moratorium or other similar laws affecting the rights of creditors generally or
the application of general equitable principles. 
  
 (e) Capitalization. As of the date hereof, the authorized capital stock of Borrower consists solely of: (i) 9,000,000 shares of Class A Voting Common Stock, par value $0,001 per share, of which 1,995,669 shares are issued and
outstanding (the “Voting Common Stock”); (ii) 1,000,000 shares of Class B Nonvoting Common Stock, par value $0,001 per share, of which 100,000 shares are issued and outstanding; and (iii) 10,000,000 shares of Preferred Stock, par value
$0,001 per share, of which 1,073,418 shares have been designated as Series A Convertible Preferred Stock and of which 871,106 shares are issued and outstanding (the “Series A Preferred Stock”). The Company has reserved 762,571 shares of
Voting Common Stock for issuance pursuant to the exercise of stock options under its Stock Option Plan (the “Option Plan”). As of the date hereof, there are options that are issued and outstanding under the Option Plan that are exercisable
for 510,455 shares of Voting Common Stock. As of the date hereof, there are warrants that are issued and outstanding that are exercisable for 30,000 shares of Voting Common Stock; provided that, the number of shares reserved for issuance upon the
exercise of such warrants may be increased from time to time in accordance with the terms of such warrants. 1,105,891 Shares of Voting Common Stock are reserved for issuance upon the exercise of the Stock Purchase Warrant, dated as of the date
hereof and issued to the Lender pursuant to this Agreement (the “Warrant”); provided that, the number of shares reserved for issuance upon the exercise of the Warrant may be increased from time to time in accordance with the terms of the
Warrant. Attached hereto as Schedule 2.1(e) is a table showing the capitalization of Borrower, as of the date hereof, on a fully diluted basis. As of the date hereof, Borrower does not have outstanding any stock or securities convertible or
exchangeable for any shares of its Voting Common Stock or containing any profit participation features, and does not have outstanding any rights or options to subscribe for or to purchase its Voting Common Stock or any stock appreciation rights or
phantom stock plans, except as set forth on Schedule 2.1(e) and the Warrant. Schedule 2.1(e) accurately sets forth the following with respect to all outstanding options and rights to acquire Borrower’s Voting Common Stock: (i) the total number
of shares issuable upon exercise of all outstanding options; (ii) the range of exercise prices for all such outstanding options; (iii) the number of shares issuable, the exercise price and the expiration date for each such outstanding option; and
(iv) with respect to all outstanding options, warrants and rights to acquire Borrower’s capital stock other than the Warrant, the holder, the number of shares covered, the exercise price and the expiration date. As of the date hereof, Borrower
is not subject to any obligation (contingent or otherwise) to repurchase, redeem, retire or otherwise acquire any shares of its capital stock or any warrants, options or other rights to acquire its capital stock, except as set forth in the Warrant
or on Schedule 2.1(e). As of the date hereof, all of the outstanding shares of Borrower’s capital stock are validly issued, fully paid and nonassessable. Except as set forth on Schedule 2.1(e), there are no statutory or contractual preemptive
rights, rights of first refusal, anti-dilution rights or any similar rights, held by stockholders or option holders of Borrower, with respect to the issuance of the Warrant or the issuance of the Voting Common Stock upon exercise of the Warrant and
all such rights have been effectively waived with regard to the issuance of the Warrant, the exercise of the Warrant 

  

 3 

 
and the issuance of the Voting Common Stock upon exercise of the Warrant. Borrower has not violated any applicable federal or state securities laws in
connection with the offer, sale or issuance of any of its capital stock, and the offer, sale and issuance of the Warrant hereunder do not require registration under the Securities Act of 1933, as amended, or any applicable state securities laws. To
the best of Borrower’s knowledge, there are no agreements among Borrower’s shareholders with respect to any other aspect of Borrower’s affairs, except as set forth on Schedule 2.l(e). 
  
 (f) Trademarks, Patents, Etc. Schedule 2.l(f) is an
accurate and complete list of all patents, trademarks, tradenames, trademark registrations, service names, service marks, copyrights, licenses, formulas and applications therefor owned by Borrower or used or required by Borrower in the operation of
its business, title to each of which is, except as set forth in Schedule 2. l(f) hereto, held by Borrower free and clear of all adverse claims, liens, security agreements, restrictions or other encumbrances. Except as set forth in Schedule 2.1(f),
Borrower owns or possesses adequate (and will use its best efforts to obtain as expediently as possible any additional) licenses or other rights to use all patents, trademarks, trade names, service marks, trade secrets or other intangible property
rights and know-how necessary to entitle Borrower to conduct its business as presently being conducted. There is no infringement action, lawsuit, claim or complaint which asserts that Borrower’s operations violate or infringe the rights or the
trade names, trademarks, trademark registrations, service names, service marks or copyrights of others with respect to any apparatus or method of Borrower or any adversely held trademarks, trade names, trademark registrations, service names, service
marks or copyrights, and Borrower is not in any way making use of any confidential information or trade secrets of any person, except with the consent of such person. Except as set forth in Schedule 2.1(f), Borrower has taken reasonable steps to
protect its proprietary information (except disclosure of source codes pursuant to licensing agreements) and is the lawful owner of the proprietary information free and clear of any claim of any third party. As used herein, “proprietary
information” includes without limitation, (i) any computer programming language, software, hardware, firmware or related documentation, inventions, technical and nontechnical data related thereto, and (ii) other documentation, inventions and
data related to patterns, plans, methods, techniques, drawings, finances, customer lists, suppliers, products, special pricing and cost information, designs, processes, procedures, formulas, research data owned or used by Borrower or marketing
studies conducted by Borrower, all of which Borrower considers to be commercially important and competitively sensitive and which generally has not been disclosed to third parties. 
  
 (g) No Conflicts. Consummation of the transactions contemplated hereby and the performance of the
obligations of Borrower under and by virtue of the Loan Documents do not conflict with, and will not result in any breach of, or constitute a default or trigger a lien under, any mortgage, security deed or agreement, deed of trust, lease, bank loan
or credit agreement, corporate charter or bylaws, agreement or certificate of limited partnership, partnership agreement, license, franchise or any other instrument or agreement to which Borrower is a party or by which Borrower or its respective
properties may be bound or affected or to which Borrower has not obtained an effective waiver. 
  
 (h) Litigation. There are no actions, suits, arbitrations, administrative hearings or other proceedings pending, or, to the
knowledge of Borrower threatened, against or affecting Borrower or any of Borrower’s property or involving the validity or enforceability of 

  

 4 

 
any of the Loan Documents at law or in equity, or before any governmental or administrative agency. To Borrower’s knowledge, Borrower is not subject to
any order, writ, injunction, decree or demand of any court or any governmental authority. 
  
 (i) Financial Statements. The financial statements of Borrower dated June 30, 2002, which are attached hereto as Schedule
2.1(i)(A), are true and correct in all material respects, have been prepared on the basis of generally accepted accounting principles consistently applied, and fairly present the financial condition of Borrower as of the date(s) thereof and the
statements of income and retained earnings and statements of cash flows present fairly the results of operations and cash flows of Borrower for the periods set forth therein. No material adverse change has occurred in the financial condition of
Borrower since the date(s) thereof, and no additional borrowings have been made by Borrower since the date(s) thereof other than as set forth on Schedule 2.1(i)(B). 
  
 (j) Other Agreements: No Defaults. Borrower is not a party to any indenture, loan or credit
agreement, lease or other agreement or instrument, or subject to any charter or corporate restriction, that a default or event of default thereunder could have a material adverse effect on the business, properties, assets, operations or conditions,
financial or otherwise, of Borrower, or the ability of Borrower to carry out its obligations under the Loan Documents to which it is a party. Borrower is not in default in any respect in the performance, observance or fulfillment of any of the
obligations, covenants or conditions contained in any agreement or instrument material to its business to which it is a party, including but not limited to this Agreement and the other Loan Documents, and no other default or event has occurred and
is continuing that with notice or the passage of time or both would constitute a default or event of default under any of same. 
  
 (k) Compliance With Law. Borrower has obtained all necessary licenses, permits and approvals and authorizations necessary or
required in order to conduct its business and affairs as heretofore conducted and as hereafter intended to be conducted. Borrower is in compliance with all laws, regulations, decrees and orders applicable to it (including but not limited to laws,
regulations, decrees and orders relating to environmental, occupational and health standards and controls, antitrust, monopoly, restraint of trade or unfair competition), except to the extent that any noncompliance, in the aggregate, cannot
reasonably be expected to have a material adverse effect on its business, operations, property or financial condition and will not materially adversely affect Borrower’s ability to perform its obligations under the Loan Documents. 

 
 (l) Debt. Schedule 2.1(1) is a complete and correct
list of all credit agreements, indentures, purchase agreements, promissory notes and other evidences of indebtedness, guaranties, capital leases and other instruments, agreements and arrangements presently in effect providing for or relating to
extensions of credit (including agreements and arrangements for the issuance of letters of credit or for acceptance financing) in respect of which Borrower or any of its properties is in any manner directly or contingently obligated and the maximum
principal or face amounts of the credit in question that are outstanding and that can be outstanding are correctly stated, and all liens of any nature given or agreed to be given as security therefor are correctly described or indicated in Schedule
2.1(1). 
  

 5 

 (m) Taxes. Borrower has filed or caused to be filed all tax returns that are
required to be filed (except for returns that have been appropriately extended), and has paid, or will pay when due, all taxes shown to be due and payable on said returns and all other taxes, impositions, assessments, fees or other charges imposed
on it by any governmental authority, agency or instrumentality, prior to any delinquency with respect thereto (other than taxes, impositions, assessments, fees and charges currently being contested in good faith by appropriate proceedings, for which
appropriate amounts have been reserved in accordance with generally accepted accounting principles). No tax liens have been filed against Borrower or any of its property. 
  
 (n) Certain Transactions. Except as set forth on Schedule 2.1 (n) hereto, Borrower is not indebted,
directly or indirectly, to any of its shareholders, officers or directors or to their respective spouses or children, in any amount whatsoever, and none of said shareholders, officers or directors or any members of their immediate families, are
indebted to Borrower or have any direct or indirect ownership interest in any firm or corporation with which Borrower has a business relationship, or any firm or corporation which competes with Borrower, except that shareholders, officers and/or
directors of Borrower may own no more than 4.9% of outstanding stock of publicly traded companies which may compete with Borrower. No shareholder, officer or director or any member of their immediate families, is, directly or indirectly, interested
in any material contract with Borrower. Borrower is not a guarantor or indemnitor of any indebtedness of any other person, firm, corporation or other legal entity. 
  
 (o) Small Business Concern. Borrower, together with its “affiliates” (as that term is
defined in Title 13, Code of Federal Regulations, §121.103), is a “small business concern” within the meaning of the Small Business Investment Act of 1958, as amended, and the regulations promulgated thereunder. The information set
forth in the Small Business Administration Forms 480, 652 and Parts A and B of Form 1031 regarding Borrower upon delivery, pursuant to Section 4.1 hereof, will be accurate and complete. Borrower does not presently engage in, and it will not
hereafter engage in, any activities, and Borrower will not use directly or indirectly, the proceeds from the Loan, for any purpose for which a Small Business Investment Company is prohibited from providing funds by the Small Business Investment Act
and the regulations thereunder, including Title 13, Code of Federal Regulations §107.720. 
  
 (p) Statements Not False or Misleading. No representation or warranty given as of the date hereof by Borrower contained in this
Agreement or any schedule attached hereto or any statement in any document, certificate or other instrument furnished or to be furnished by Borrower to Lender pursuant hereto, taken as a whole, contains or will (as of the time so furnished) contain
any untrue statement of a material fact, or omits or will (as of the time so furnished) omit to state any material fact which is necessary in order to make the statements contained therein not misleading. 
  
 (q) Margin Regulations. Borrower is not engaged in
the business of extending credit for the purpose of purchasing or carrying margin stock. No proceeds received pursuant to this Agreement will be used to purchase or carry any equity security of a class which is registered pursuant to Section 12 of
the Securities Exchange Act of 1934, as amended. 
  

 6 

 (r) Significant Contracts. Schedule 2.1(r) is a complete and correct list of all
contracts, agreements and other documents pursuant to which (i) Borrower receives revenues in excess of $25,000 per fiscal year or has committed to make expenditures in excess of $25,000 per fiscal year, (if) Borrower engages any pharmaceutical
manufacturer to manufacture products to be sold by Borrower and (iii) Borrower engages any third-party to fulfill or supply products for sale by Borrower. Each such contract, agreement and other document is in full force and effect as of the date
hereof and Borrower knows of no reason why such contracts, agreements and other documents would not remain in full force and effect pursuant to the terms thereof. 
  
 (s) Environment. Borrower has duly complied with, and its business, operations, assets, equipment,
property, leaseholds or other facilities are in compliance with, the provisions of all federal, state and local environmental, health, and safety laws, codes and ordinances, and all rules and regulations promulgated thereunder. Borrower has been
issued and will maintain all required federal, state and local permits, licenses, certificates and approvals relating to (i) air emissions; (if) discharges to surface water or groundwater; (iii) noise emissions; (iv) solid or liquid waste disposal;
(v) the use, generation, storage, transportation or disposal of toxic or hazardous substances or wastes (which shall include any and all such materials listed in any federal, state or local law, code or ordinance and all rules and regulations
promulgated thereunder as hazardous or potentially hazardous); or (vi) other environmental, health or safety matters. Borrower has not received notice of, or knows of, or suspects facts which might constitute any violations of any federal, state or
local environmental, health or safety laws, codes or ordinances, and any rules or regulations promulgated thereunder with respect to its businesses, operations, assets, equipment, property, leaseholds, or other facilities. Except in accordance with
a valid governmental permit, license, certificate or approval, there has been no emission, spill, release or discharge into or upon (A) the air; (B) soils, or any improvements located thereon; (C) surface water or groundwater; or (D) the sewer,
septic system or waste treatment, storage or disposal system servicing the premises, of any toxic or hazardous substances or wastes at or from the premises; and accordingly the premises of Borrower are free of all such toxic or hazardous substances
or wastes. There has been no complaint, order, directive, claim, citation or notice by any governmental authority or any person or entity with respect to (1) air emissions; (2) spills, releases or discharges to soils or improvements located thereon,
surface water, groundwater or the sewer, septic system or waste treatment, storage or disposal systems servicing the premises; (3) noise emissions; (4) solid or liquid waste disposal; (5) the use, generation, storage, transportation or disposal of
toxic or hazardous substances or waste; or (6) other environmental, health or safety matters affecting Borrower or its business, operations, assets, equipment, property, leaseholds or other facilities. Borrower does not have any indebtedness,
obligation or liability (absolute or contingent, matured or not matured), with respect to the storage, treatment, cleanup or disposal of any solid wastes, hazardous wastes or other toxic or hazardous substances (including without limitation any such
indebtedness, obligation, or liability with respect to any current regulation, law or statute regarding such storage, treatment, cleanup or disposal). 
  
 (t) Fees/Commissions. Except as set forth on Schedule 2.1(t), Borrower has not agreed to pay any finder’s fee, commission,
origination fee (except for the processing and commitment fees due pursuant to Section 1.2 hereof) or other fee or charge to any person or entity with respect to the Loan and investment transactions contemplated hereunder. 
  

 7 

 (u) ERISA. Borrower has operated and administered each Plan (as defined below) in
compliance in all material respects with all applicable laws, including the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the Internal Revenue Code of 1986, as amended (“Code”). Neither a prohibited
transaction nor a breach of fiduciary duty has occurred with respect to any Plan. Each Plan that is intended to be a tax-qualified plan within the meaning of Section 401(a) of the Code satisfies the applicable requirements of the Code. With respect
to any Title IV Plan (as defined below), neither Borrower nor any ERISA Affiliate (as defined below) has incurred a reportable event with respect to any Title IV Plan; no notice of intent to terminate a Title IV Plan has been filed nor has any Title
IV Plan been terminated; no circumstances exist which constitute grounds for the Pension Benefit Guaranty Corporation (“PBGC”) to institute proceedings to terminate a Title IV Plan nor has the PBGC instituted any such proceedings; Borrower
and each ERISA Affiliate have met all minimum funding requirements for the Title IV Plan and the assets of such plan are not less than the present value of all benefits accrued under such plan as of the most recent valuation date determined on a
termination basis under Title IV of ERISA. Neither Borrower nor any ERISA Affiliate has completely or partially withdrawn from a multiemployer plan (as defined in ERISA) nor do they have, any withdrawal liability with respect to such multiemployer
plans. Borrower does not have any liability for post-employment healthcare or life insurance benefits, except for the continuation coverage mandated by Section 4980B of the Code. 
  
 For purposes of this Agreement (iv) “Plan” means any employee benefit plan as defined in Section 3(3) of ERISA;
(v) “Title IV Plan” means any employee pension benefit plan subject . to the provisions of Title IV of ERISA; and (vi) “ERISA Affiliate” means any person or entity that was or is required to be treated as a single employer with
Borrower under Section 414 of the Code. 
  
 (v)
Title to Properties. Borrower has good, indefeasible and insurable title to, or valid leasehold interests in, all its real properties and good title to its other assets, free and clear of all hens other than Permitted Liens (as defined in.
Section 3.15 hereof). 
  
 (w) Limited Offering
of Note and Warrant. Neither Borrower nor anyone acting on its behalf has offered the Note, the Warrant or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect
thereof, with, any person other than Lender and not more than 35 other institutional investors. Neither Borrower nor anyone acting on its behalf has taken, or will take, any action which would subject the issuance or sale of the Note and Warrant to
Section 5 of the Securities Act of 1933, as amended, or the registration or qualification provisions of the blue sky laws of any state. 
  
 (x) Registration Rights. Except as described in the Warrant and the Investor Rights Agreement dated July 31, 2002 between Borrower
and the holders of the Series A Preferred Stock of Borrower, Borrower is not under any obligation to register under the Securities Act of 1933, as amended, or the Trust Indenture Act of 1939, as amended, any of its presently outstanding securities
or any of its securities that may subsequently be issued. 
  
 (y) Employees. Borrower has no current labor problems or disputes that have resulted in or Borrower reasonably believes could be expected to have, a material adverse effect. Borrower is in compliance in all
material respects with all applicable laws respecting 

  

 8 

 
employment, employment practices, wages and hours, payment for vacation and overtime, and immigration matters. 
  
 (z) Issuance Taxes. All taxes imposed on Borrower in
connection with the issuance, sale and delivery of the Note, the Warrant and the capital stock issuable upon exercise of the Warrant have been or “will be fully paid, and all laws imposing such taxes have been or will be fully satisfied by
Borrower. 
  
 (aa) Solvency. As of the
date hereof and giving effect to the making of the Loan, Borrower (i) has capital sufficient to carry on its business and transactions and all business and transactions in which it is about to engage and is able to pay its debts as they mature, (ii)
owns property having a value, both at fair valuation and at present fair saleable value, greater than the amount required to pay its probable liabilities (including contingencies), and (iii) does not believe that it will incur debts or liabilities
beyond its ability to pay such debts or liabilities as they mature. 
  
 (ab) Location of Properties. Names. Places of Business. The only jurisdictions in which Borrower maintains any tangible personal property or carries on business are as listed in Schedule 2.l(ab) hereto. All
billings for the supply of goods and services by Borrower are made from, and require payment to be made to, the chief executive office of Borrower. The exact legal name of Borrower on its certificate of incorporation as filed with the Delaware
Secretary of State is “TEAMM Pharmaceuticals, Inc.” Borrower has not, during the five years preceding the date of this Agreement, been known as or used any other corporate, trade or fictitious name, nor acquired all or substantially all of
the assets, capital stock or operating units of any person. Borrower has not, during the five years preceding the date of this Agreement, had a business location at any address other than addresses set forth on Schedule 2.l(ab). 
  
 ARTICLE 3 
 COVENANTS AND AGREEMENTS 
  
 Borrower covenants and agrees that during the term of this Agreement: 
  
 3.1 Payment of Obligations. Borrower shall pay the indebtedness evidenced by the Note according to the terms thereof, and shall timely pay
or perform, as the case may be, all of the other obligations of Borrower to Lender, direct or contingent, however evidenced or denominated, and however and whenever incurred, including but not limited to indebtedness incurred pursuant to any present
or future commitment of Lender to Borrower, together with interest thereon, and any extensions, modifications; consolidations and/or renewals thereof and any notes given in payment thereof. 
  
 3.2 Financial Statements and Reports. Borrower shall furnish to
Lender (a) as soon as practicable and in any event within 120 days after the end of each fiscal year of Borrower, an audited balance sheet of Borrower as of the close of such fiscal year, an audited statement of operations of Borrower as of the
close of such fiscal year and an audited statement of cash flows for Borrower for such fiscal year, prepared in accordance with generally accepted accounting principles consistently applied and accompanied by an unqualified audit report prepared by
an 

  

 9 

 
independent certified public accountant acceptable to Lender showing the financial condition of Borrower at the close of such fiscal year and the results of
its operations during such fiscal year and accompanied by a certificate of the President of Borrower and a certificate by Borrower’s independent certified public accountants, stating that to the best of the knowledge of such officer and such
accountants, as applicable, Borrower has kept, observed, performed and fulfilled each covenant, term and condition of this Agreement and the other Loan Documents during the preceding fiscal year and that no Event of Default has occurred and is
continuing (or if an Event of Default has occurred and is continuing, specifying the nature of same, the period of existence of same and the action Borrower proposes to take in connection therewith), (b) within 30 days of the end of each month, a
balance sheet of Borrower as of the close of such month, a statement of operations of Borrower as of the close of such month and a statement of cash flows of Borrower as of the close of such month, all in reasonable detail, and prepared
substantially in accordance with generally accepted accounting principles consistently applied (except for the absence of footnotes and subject to year-end adjustments), (c) as soon as available and in any event within 30 days after the end of each
quarter (other than at year end) (i) an accounts receivable aging of Borrower as of the close of such quarter and (ii) a compliance certificate of the President of Borrower, stating that to the best of the knowledge of such officer, Borrower has
kept, observed, performed and fulfilled each covenant, term and condition of this Agreement and the other Loan Documents during the preceding quarter and that no Event of Default has occurred and is continuing (or if an Event of Default has occurred
and is continuing, specifying the nature of same, the period of existence of same and the action Borrower proposes to take in connection therewith), (d) within 15 days, copies of any other financial reports delivered to any third parties, and (e)
with reasonable promptness, such other financial data, including without limitation, inventory reports, as Lender may reasonably request. Without Lender’s prior written consent which shall not be unreasonably withheld, Borrower shall not modify
or change any accounting policies or procedures, including Borrower’s fiscal year, in effect on the date hereof. 
  
 3.3 Maintenance of Books and Records; Inspection. Borrower shall maintain its books, accounts and records in accordance with generally
accepted accounting principles consistently applied, and after reasonable notice from Lender permit Lender, its officers and employees and any professionals designated by Lender in writing, at Borrower’s expense, to visit and inspect any of its
properties, corporate books and financial records, and to discuss its accounts, affairs and finances with Borrower or the principal officers of Borrower during reasonable business hours, all at such times as Lender may reasonably request; provided
that no such inspection shall materially interfere with the conduct of Borrower’s business. 
  
 3.4 Insurance. Borrower shall maintain and deliver evidence to Lender of such insurance as is required by Lender, written by insurers, in
amounts and with lender’s loss payable, mortgagee, additional insured and other endorsements reasonably satisfactory to Lender. All premiums with respect to such insurance shall be paid by Borrower as and when due. Upon the written request of
Lender, accurate and complete copies of such policies shall be delivered by Borrower to Lender. If Borrower fails to comply with this Section 3.4, Lender may (but shall not be required to) procure such insurance and endorsements insuring the
Collateral. Any money received by Lender under said policies, after deducting all costs and expenses (including attorney’s fees) of collection, shall be applied, at Lender’s option, toward either (a) replacing or restoring the subject
Collateral, in a manner and on terms satisfactory to Lender, or (b) payment of the Obligations. Any proceeds applied to the payment of the Obligations shall be 

  

 10 

 
applied in such manner as Lender may elect in its sole discretion. In no event shall such application relieve Borrower from payment in full of all
installments of principal and interest under the Note. Until the Obligations have been fully satisfied and any obligations of Lender to make further advances hereunder has terminated, Lender’s security interest in the Collateral shall continue
in full force and effect. 
  
 3.5 Taxes and
Assessments. Borrower shall (a) file all tax returns and appropriate schedules thereto that are required to be filed under applicable law, prior to the date of delinquency, (b) pay and discharge all taxes, assessments and governmental
charges or levies imposed upon Borrower upon its income and profits or upon any properties belonging to it, prior to the date on which penalties attach thereto, and (c) pay all taxes, assessments and governmental charges or levies that, if unpaid,
might become a lien or charge upon any of its properties; provided, however, that Borrower in good faith may contest any such tax, assessment, governmental charge or levy described in the foregoing clauses (b) and (c) so long as appropriate reserves
in accordance with generally accepted accounting principles are maintained with respect thereto. 
  
 3.6 Corporate Existence. Borrower shall maintain its corporate existence and good standing in the state of its incorporation, and its
qualification and good standing as a foreign corporation in each jurisdiction in which such qualification is necessary pursuant to applicable law. Borrower shall not change its state of incorporation. 
  
 3.7 Compliance with Law and Other Agreements. Except where the
failure to do so would not materially adversely affect Borrower’s operations, properties, financial condition or its ability to fulfill its obligations under the Loan Documents, Borrower shall maintain its business operations and property owned
or used in connection therewith in compliance with (a) all applicable federal, state and local laws, regulations and ordinances governing such business operations and the use and ownership of such property, and (b) all agreements, licenses,
franchises, indentures and mortgages to which Borrower is a party or by which Borrower or any of its properties is bound. Without limiting the foregoing, Borrower shall pay all of its indebtedness promptly in accordance with the terms thereof.

  
 3.8 Notice of Default; Perceived Breach; Correspondence
with Other Lenders. Borrower shall give written notice to Lender of the occurrence of any default, event of default or Event of Default under this Agreement or any other Loan Document promptly upon the occurrence thereof. Borrower agrees to
give Lender prompt written notice of any action or inaction by or on behalf of Lender in connection with this Agreement or the Obligations that Borrower believes may be actionable against Lender or a defense to payment of any or all Obligations for
any reason, including, but not limited to, commission of a tort or violation of any contractual duty or duty implied by law. Borrower agrees to give Lender a copy of all written correspondence concerning an actual or potential default or event of
default under any agreements between Borrower and any other lender within 10 days of Borrower’s receipt thereof. 
  
 3.9 Notice of Litigation. Borrower shall give notice, in writing, to Lender of (a) any actions, suits or proceedings, instituted by any
persons whomsoever against Borrower or affecting any of the assets of Borrower wherein the amount at issue is in excess of $25,000.00 and (b) any dispute, not resolved within 6O days of the commencement thereof, between 

  

 11 

 
Borrower on the one hand and any governmental regulatory body on the other hand, which dispute might materially interfere with the normal operations of
Borrower. 
  
 3.10 Conduct of Business; Name.
Borrower will continue to engage in a business of the same general type and manner as conducted by it on the date of this Agreement. Without 10 days’ prior written notice to Lender, Borrower shall not change its name or location of doing
business. In the event Borrower makes a change of its name or location of doing business, Borrower shall promptly execute any and all financing statements and amendments or continuations thereof and any other documents that Lender may reasonably
request to evidence, continue, and/or perfect any security interest in or pledge of collateral securing the Loan. 
  
 3.11 Title IV Plan. If Borrower has in effect, or hereafter institutes, a Title IV Plan, then the following warranties and covenants shall
be applicable during such period as to any such Title IV Plan that shall be in effect: (a) Borrower hereby warrants that no fact that might constitute grounds for the involuntary termination of the Title IV Plan, or for the appointment by the
appropriate United States District Court of a trustee to administer the Title IV Plan, exists at the time of execution of this Agreement; (b) Borrower hereby covenants that throughout the existence of the Title TV Plan, Borrower’s contributions
under the Title IV Plan will meet the minimum funding standards required by ERISA and Borrower will not institute a distress termination of the Title TV Plan; and (c) Borrower covenants that it will send to Lender a copy of any notice of a
reportable event (as defined in ERISA) required by ERISA to be filed with respect to the Title IV Plan with the Labor Department or the Pension Benefit Guaranty Corporation, at the time that such notice is so filed. 
  
 3.12 Dividends, Distributions, Stock Rights, etc. Without the
prior written consent of Lender which shall not be unreasonably withheld, Borrower shall not declare or pay any dividend of any kind (other than stock dividends payable to all holders of any class of capital stock), in cash or in property, on any
class of the capital stock of Borrower, or purchase, redeem, retire or otherwise acquire for value any shares of such stock, nor make any distribution of any kind in cash or property in respect thereof, nor make any return of capital of
shareholders, nor make any payments in cash or property in respect of any stock options, stock bonus or similar plan nor grant any preemptive rights with respect to the capital stock of Borrower. 
  
 3.13 Guaranties; Loans; Payment of Debt. Without the prior
written consent of Lender, Borrower shall not guarantee nor be liable in any manner, whether directly or indirectly, or become contingently liable after the date of this Agreement in connection with the obligations or indebtedness of any person or
entity whatsoever, except for the endorsement of negotiable instruments payable to Borrower for deposit or collection in the ordinary course of business. Without the prior written consent of Lender, Borrower shall not (a) make any loan, advance or
extension of credit to any person other than in the normal course of its business, or (b) make any payment on any indebtedness that is expressly subordinate to the Loan. 
  
 3.14 Debt. Without the prior written consent of Lender which shall not be unreasonably withheld, Borrower
shall not create, incur, assume or suffer to exist indebtedness of any description whatsoever, excluding: 
  
 (a) the indebtedness evidenced by the Note; 
  

 12 

 (b) the endorsement of negotiable instruments payable to Borrower for deposit or
collection in the ordinary course of business; 
  
 (c) trade payables incurred in the ordinary course of business; and 
  
 (d) the indebtedness listed on Schedule 2.1(1) hereto. 
  
 3.15 No Liens. Without the prior written consent of Lender which shall not be unreasonably withheld, Borrower shall not create, incur, assume or suffer to exist any lien, security interest, security
title, mortgage, deed of trust or other encumbrance upon or with respect to any of its assets, now owned or hereafter acquired, except the following permitted liens (the “Permitted Liens”): 
  
 (a) liens in favor of Lender; 
  
 (b) liens for taxes or assessments or other governmental
charges or levies if not yet due and payable; 
  
 (c) liens on leased equipment granted in connection with the leasing of such equipment in favor of the lessor of such equipment; 
  
 (d) liens described on Schedule 2.1(1) hereto. 
  
 3.16 Mergers, Consolidations, Acquisitions and Sales. Without the prior written consent of Lender which shall not be unreasonably withheld,
Borrower shall not (a) be a party to any merger, consolidation or corporate reorganization, nor (b) purchase or otherwise acquire all or substantially all of the assets or stock of, or any partnership or joint venture, limited liability company or
other equity interest in, any other person, firm or entity, nor (c) sell, transfer, convey, or lease all or any substantial part of its assets, nor (d) create any Subsidiaries nor convey any of its assets to any Subsidiary. 
  
 3.17 Transactions with Affiliates. Borrower shall not enter
into any transaction, including, without limitation, the purchase, sale or exchange of property or the rendering of any service, with any affiliate, except in the ordinary course of and pursuant to the reasonable requirements of Borrower’s
business and upon fair and reasonable terms no less favorable to Borrower than Borrower would obtain in a comparable arm’s length transaction with a person not an affiliate. For the purposes of this Section 3.17, “affiliate” shall
mean a person, corporation, partnership or other entity controlling, controlled by or under common control with Borrower. 
  
 3.18 Employment Contracts. Without the prior written consent of Lender, Borrower shall not (a) enter into any employment agreement or other
written compensation agreement that has a term of greater than one year with any of Borrower’s executive officers or (b) increase total compensation paid to the executive officers of Borrower by more than ten percent (10%) per year. 

 
 3.19 Environment. Borrower shall be and remain in compliance
with the provisions of all federal, state and local environmental, health, and safety laws, codes and ordinances, and all rules and regulations issued thereunder; notify Lender immediately of any notice of a 

  

 13 

 
hazardous discharge or environmental complaint received from any governmental agency or any other party; notify Lender immediately of any hazardous discharge
from or affecting its premises; immediately contain and remove the same, in compliance with all applicable laws; promptly pay any fine or penalty assessed in connection therewith; permit Lender to inspect the premises, to conduct tests thereon, and
to inspect all books, correspondence, and records pertaining thereto; and at Lender’s request, and at Borrower’s expense, provide a report of a qualified environmental engineer, satisfactory in scope, form, and content to Lender, and such
other and further assurances reasonably satisfactory to Lender that the condition has been corrected. 
  
 3.20 Financial Definitions and Covenants. 
  
 (a) Definitions. For purposes of this Section 3.20, the following terms shall have the meaning set forth with respect thereto: .

  
 (i) “Corporate EBITDA”–
means with respect to any calendar quarter of Borrower, the sum, without duplication, of (A) Corporate Net Income for such period plus (B) to the extent deducted in determining such Corporate Net Income: (1) all income taxes, including but not
limited to, federal, foreign and state income taxes (including any deferred taxes); (2) Corporate Interest Expense; and (3) depreciation, amortization and similar non-cash charges, provided, that there shall be excluded therefrom
non-operating gains and non-operating losses. 
  
 (ii) “Corporate Fixed Charges”– means for any fiscal period of Borrower, the sum of (A) the aggregate principal amount of Indebtedness required to be paid during such period, plus (B) Corporate Interest Expense
required to be paid during such period. 
  
 (iii)
“Corporate Interest Expense”– means for any fiscal period of Borrower, the amount which, in conformity with GAAP, would be set forth opposite the caption “interest expense” or any like caption (excluding amortization
of deferred finance charges) on the income statement of Borrower for such period, provided, however, that in no event shall interest income be deducted therefrom in computing such amount. 
  
 (iv) “Corporate Net Income”– means for
any fiscal period of Borrower, the amount which, in conformity with GAAP, would be set forth opposite the caption “net income or loss” or any nice caption on the income statement of the Borrower for such period. 
  
 (v) “Fixed Charges Coverage Ratio”–
means for any fiscal period of Borrower the ratio of (A) the sum of Corporate EBITDA to (B) the sum of Corporate Fixed Charges 
  
 (vi) “GAAP” – means generally accepted accounting principles applied on a consistent basis. 
  
 (vii) “Indebtedness”– means any
obligation of Borrower (whether or not classified as a current liability or secured or unsecured, but excluding trade payables 

  

 14 

 
and accrued salaries, wages and other similar current liabilities for operating accruals incurred in the ordinary course of business) which, pursuant to
GAAP, should be included on Borrower’s balance sheet as a liability, including without limitation, capitalized lease obligations. 
  
 (b) Covenants. 
  
 (i) Fixed Charges Coverage Ratio. With respect to each rolling 12 month period and as measured as of the end of each calendar
quarter beginning September 30,2002, Borrower shall maintain a Fixed Charges Coverage Ratio of not less than 2 to 1. However, with regard to the calendar quarters ending September 30, 2002, December 31, 2002, and March 21, 2003, the Fixed Charges
Coverage Ratio shall be computed for a period commencing July 1, 2002 and running through the end of the relevant calendar quarter. 
  
 (ii) Corporate EBITDA. With respect to each calendar year (beginning with the calendar year ending December 31, 2003),
Borrower’s Corporate EBITDA shall be at least $1,750,000. 
  
 (iii) Cash. Borrower shall at all times maintain an aggregate cash balance of at least $1,000,000 in deposit accounts with federally insured banks or similar institutions. 
  
 ARTICLE 4 
 CONDITIONS TO CLOSING 
  
 4.1 Closing of The Loan. The obligation of Lender to fund the Loan on the date hereof (the “Closing Date”) is subject to the fulfillment, on or prior to the Closing Date, of each of the
following conditions: 
  
 (a) Borrower shall have
performed and complied in all material respects with all of the covenants, agreements, obligations and conditions required by this Agreement. 
  
 (b) Lender shall have received an opinion of Borrower’s counsel, Hutchison & Mason PLLC, dated the Closing Date, in form
and substance satisfactory to Lender’s counsel, Chambliss, Bahner & Stophel, P.C. 
  
 (c) Borrower shall have delivered to Lender a Note executed by Borrower, in form and substance satisfactory to Lender. 
  
 (d) Borrower shall have delivered to Lender a Stock Purchase
Warrant executed by Borrower, in form and substance satisfactory to Lender, and the related Warrant Valuation Letter executed by Borrower. 
  
 (e) Borrower shall have delivered to Lender a Security Agreement and related UCC-1 Financing Statement(s), executed by Borrower, each of
which is in form and substance satisfactory to Lender. 
  

 15 

 (f) Borrower shall have delivered to Lender a Landlord’s Consent and Subordination
of Lien, executed by each of Borrower’s landlords, in form and substance satisfactory to Lender. 
  
 (g) Borrower shall have delivered to Lender an Intellectual Property Security Agreement executed by Borrower, in form and substance
satisfactory to Lender. 
  
 (h) Borrower shall
have delivered to Lender an Authorization Agreement for Pre-Authorized Payments (Debit) executed by Borrower, in form and substance satisfactory to Lender. 
  
 (i) Borrower shall have delivered to Lender the Small Business Administration Forms 480, 652 and 1031 (Parts A and B) completed by
Borrower. 
  
 (j) Borrower shall have delivered
to Lender the Small Business Administration Economic Impact Assessment completed by Borrower, in form and substance satisfactory to Lender. 
  
 (k) Borrower shall have delivered to Lender copies of the corporate charter and other publicly filed organizational documents of Borrower,
certified by the Secretary of State or other appropriate public official in the jurisdiction in which Borrower is incorporated. 
  
 (l) Borrower shall have delivered to Lender certified (as of the date of this Agreement) copies of all corporate action taken by Borrower,
including resolutions of its Board of Directors, authorizing the execution, delivery and performance of the Loan Documents. 
  
 (m) Borrower shall have delivered to Lender a certificate as to the legal existence and good standing of Borrower, issued by the Secretary
of State or other appropriate public official in the jurisdiction in which Borrower is incorporated. 
  
 (n) Borrower shall have delivered to Lender certificates of the Secretaries of State or other appropriate public officials as to
Borrower’s qualification to do business and good standing in each jurisdiction in which a failure to be so qualified would have a material adverse effect on its financial condition or its ability to conduct its business in the manner now
conducted and as hereafter intended to be conducted. 
  
 (o) Borrower shall have delivered to Lender a Consent and Acknowledgment of Lien and Security Interest executed by each manufacturer of products sold by Borrower, in form and substance satisfactory to Lender. 
  
 (p) Borrower shall have delivered to Lender a Consent and
Acknowledgment of Lien and Security Interest executed by each person or entity that fulfills sales by Borrower, in form and substance satisfactory to Lender. 
  

(q) Borrower shall have converted all of the indebtedness listed on Schedule 4.1 (q)(1) to Series A Preferred Stock in accordance with
the terms set forth on the term sheet attached hereto as Schedule 4.1(q)(2). 
  

 16 

  
 ARTICLE 5 

DEFAULT AND REMEDIES 
  
 5.1 Events of Default. The occurrence of any of the following shall constitute an Event of Default hereunder: 
  
 (a) Default in the payment of the principal of or interest
on the indebtedness evidenced by the Note in accordance with the terms of the Note, which default is not cured within five days; 
  
 (b) Any misrepresentation by Borrower, any guarantor of the Loan, or any Affiliate as to any material matter hereunder or under any of the
other Loan Documents, or delivery by Borrower of any schedule, statement, resolution, report, certificate, notice or writing to Lender that is untrue in any material respect on the date as of which the facts set forth therein are stated or
certified; 
  
 (c) Failure of Borrower, any
guarantor of the Loan, or any Affiliate to perform any of its obligations, covenants or agreements under this Agreement, the Note or any of the other Loan Documents; 
  
 (d) Borrower (i) shall generally not pay or shall be unable to pay its debts as such debts become due, or
(ii) shall make an assignment for the benefit of creditors or petition or apply to any tribunal for the appointment of a custodian, receiver or trustee for it or a substantial part of its assets, or (iii) shall commence any proceeding under any
bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, whether now or hereafter in effect, or (iv) shall have had any such petition or application filed or any such proceeding
commenced against it that is not dismissed within 30 days, or (v) shall indicate, by any act or intentional and purposeful omission, its consent to, approval of or acquiescence in any such petition, application, proceeding or order for relief or the
appointment of a custodian, receiver or trustee for it or a substantial part of its assets, or (vi) shall suffer any such custodianship, receivership or trusteeship to continue undischarged for a period of 60 days or more; 
  
 (e) Borrower shall be liquidated, dissolved, partitioned or
terminated, or the charter thereof shall expire or be revoked; 
  
 (f) A default or event of default shall occur under any of the other Loan Documents and, if subject to a cure right, such default or event of default shall not be cured within the applicable cure period; 

 
 (g) Borrower shall default in the timely payment or
performance of any obligation now or hereafter owed to Lender in connection with any other indebtedness of Borrower now or hereafter owed to Lender; 
  
 (h) Borrower shall have defaulted and continue to be in default in the timely payment of or performance of any covenant relating to any
other indebtedness or obligation, which in the aggregate exceeds $25,000.00 or materially adversely affects Borrower’s operations, properties or financial condition; 
  

 17 

 (i) Martin G. Baum, Gary V. Cantrell and Nicholas J. Leb shall no longer be significantly
involved in the executive staff or management of Borrower (“Management Change”); provided, however, if the Management Change is caused by the death or total disability of any of the foregoing individuals, such Management Change shall not
constitute an Event of Default if the relevant individual is replaced by a person agreed to be Lender in writing within 60 days after the occurrence of such death or total disability; or 
  
 (j) If any materially adverse change in the business, operations, property, condition (financial or
otherwise) or prospects for Borrower or any Guarantor shall occur or the occurrence of any other condition which, in Lender’s reasonable determination, constitutes an impairment of Borrower’s or any Guarantor’s ability to perform its
obligations under the Loan Documents. 
  
 With respect to any
Event of Default described above that is capable of being cured and that does not already provide its own cure procedure (a “Curable Default”), the occurrence of such Curable Default shall not constitute an Event of Default hereunder if
such Curable Default is fully cured and/or corrected within 30 days (10 days, if such Curable Default may be cured by payment of a sum of money) of notice thereof to Borrower given in accordance with the provisions hereof; provided, however, that
this provision shall not require notice to Borrower and an opportunity to cure any Curable Default of which Borrower has had knowledge for the requisite number of days set forth. A violation of any of the covenants set forth in Section 3.20 hereof
shall not be a Curable Default. 
  
 5.2 Acceleration of
Maturity; Remedies. Upon the occurrence of any Event of Default described in subsection 5.1(d), the indebtedness evidenced by the Note as well as any and all other indebtedness of Borrower to Lender shall be immediately due and payable in
full; and upon the occurrence of any other Event of Default described above, Lender at any time thereafter may at its option accelerate the maturity of the indebtedness evidenced by the Note as well as any and all other indebtedness of Borrower to
Lender; all without notice of any kind. Upon the occurrence of any such Event of Default and the acceleration of the maturity of the indebtedness evidenced by the Note: 
  
 (a) Lender shall be immediately entitled to exercise any and all rights and remedies possessed by Lender
pursuant to the terms of the Note and all of the other Loan Documents; and 
  
 (b) Lender shall have any and all other rights and remedies that Lender may now or hereafter possess at law, in equity or by statute 
  
 5.3 Remedies Cumulative; No Waiver. No right, power or remedy conferred upon or reserved to Lender by this
Agreement or any of the other Loan Documents is intended to be exclusive of any other right, power or remedy, but each and every such right, power and remedy shall be cumulative and concurrent and shall be in addition to any other right, power and
remedy given hereunder, under any of the other Loan Documents or now or hereafter existing at law, in equity or by statute. No delay or omission by Lender to exercise any right, power or remedy accruing upon the occurrence of any Event of Default
shall exhaust or impair any such right, power or remedy or shall be construed to be a waiver of any such Event of Default or an 

  

 18 

 
acquiescence therein, and every right, power and remedy given by this Agreement and the other Loan Documents to Lender may be exercised from time to time and
as often as may be deemed expedient by Lender. 
  
 5.4
Proceeds of Remedies. Any or all proceeds resulting from the exercise of any or all of the foregoing remedies shall be applied as set forth in the Loan Document(s) providing the remedy or remedies exercised, if none is specified, or if
the remedy is provided by this Agreement, then as follows: 
  
 First, to the costs and expenses, including without limitation reasonable attorneys’ fees and disbursements, incurred by Lender in connection with the exercise of its remedies; 
  
 Second, to the expenses of curing the default that
has occurred, in the event that Lender elects, in its sole discretion, to cure the default that has occurred; 
  
 Third, to the payment of the Obligations of Borrower, including but not limited to the payment of the principal of and interest on
the indebtedness evidenced by the Note, in such order of priority as Lender shall determine in its sole discretion; and 
  
 Fourth, the remainder, if any, to Borrower or to any other person lawfully thereunto entitled. 
  
 ARTICLE 6 
 TERMINATION 
  
 6.1 Termination of This Agreement. This Agreement shall remain in full force and effect until the payment in full by Borrower of the Obligations, at which time Lender shall cancel the Note and deliver it to Borrower; provided,
however, that the indemnities provided in Section 7.16 shall survive the termination of this Agreement 
  
 ARTICLE 7 
 MISCELLANEOUS 
  
 7.1 Performance by Lender.
If Borrower shall default in the payment, performance or observance of any covenant, term or condition of this Agreement, which, default is not cured within the applicable cure period, then Lender may, at its option, pay, perform or observe the
same, and all payments made or costs or expenses incurred by Lender in connection therewith (including but not limited to reasonable attorneys’ fees), with interest thereon at the highest default rate provided in the Note, shall be immediately
repaid to Lender by Borrower and shall constitute a part of the Obligations. Lender shall be the sole judge of the necessity for any such actions and of the amounts to be paid. 
  

 19 

 7.2 Successors and Assigns Included in Parties. Whenever in this Agreement one of the
parties hereto is named or referred to, the heirs, legal representatives, successors, successors-in-title and assigns of such parties shall be included in such name or reference, and all covenants and agreements contained in this Agreement by or on
behalf of Borrower or by or on behalf of Lender shall bind and inure to the benefit of their respective heirs, legal representatives, successors-in-title and assigns, whether so expressed or not. 
  
 7.3 Costs and Expenses. Borrower agrees to pay all reasonable
costs and expenses incurred by Lender in connection with the making of the Loan, including but not limited to filing fees, recording taxes and reasonable attorneys’ fees, promptly upon demand of Lender. Borrower further agrees to pay all
premiums for insurance required to be maintained by Borrower pursuant to the terms of the Loan Documents and all of the out-of-pocket costs and expenses incurred by Lender in connection with the collection of the Loan, amendment to the Loan
Documents, or prepayment of the Loan, including but not limited to reasonable attorneys’ fees, promptly upon demand of Lender. 
  
 7.4 Assignment. The Note, this Agreement and the other Loan Documents may be endorsed, assigned and/or transferred in whole or in part by
Lender, and any such holder and/or assignee of the same shall succeed to and be possessed of the rights and powers of Lender under all of the same to the extent transferred and assigned. Lender may grant participations in all or any portion of its
interest in the indebtedness evidenced by the Note, and in such event Borrower shall continue to make payments due under the Loan Documents to Lender and Lender shall have the sole responsibility of allocating and forwarding such payments in the
appropriate manner and amounts. Borrower shall not assign any of its rights nor delegate any of its duties hereunder or under any of the other Loan Documents without the prior written consent of Lender. 
  
 7.5 Time of The Essence. Time is of the essence with respect to
each and every covenant, agreement and obligation of Borrower hereunder and under all of the other Loan Documents. 
  
 7.6 Severability. If any provision(s) of this Agreement or the application thereof to any person or circumstance shall be invalid or
unenforceable to any extent, the remainder of this Agreement and the application of such provisions to other persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 
  
 7.7 Interest and Loan Charges Not to Exceed Maximum Allowed by
Law. Anything in this Agreement, the Note or any of the other Loan Documents to the contrary notwithstanding, in no event whatsoever, whether by reason of advancement of proceeds of the Loan, acceleration of the maturity of the unpaid
balance of the Loan or otherwise, shall the interest and other charges agreed to be paid to Lender for the use of the money advanced or to be advanced hereunder exceed the maximum amounts collectible under applicable laws in effect from time to
time. It is understood and agreed by the parties that, if for any reason whatsoever the interest or loan charges paid or contracted to be paid by Borrower in respect of the indebtedness evidenced by the Note shall exceed the maximum amounts
collectible under applicable laws in effect from time to time, then ipso facto, the obligation to pay such interest and/or loan charges shall be reduced to the maximum amounts collectible under applicable laws 

  

 20 

 
in effect from time to time, and any amounts collected by Lender that exceed such maximum amounts shall be applied to the reduction of the principal balance
of the indebtedness evidenced by the Note and/or refunded to Borrower so that at no time shall the interest or loan charges paid or payable in respect of the indebtedness evidenced by the Note exceed the maximum amounts permitted from time to time
by applicable law. 
  
 7.8 Article and Section
Headings: Defined Terms. Numbered and titled article and section headings and defined terms are for convenience only and shall not be construed as amplifying or limiting any of the provisions of this Agreement. “When used herein,
the singular shall include the plural, and vice versa, and the use of any gender shall include all other genders, as appropriate. 
  
 7.9 Notices. Any and all notices, elections or demands permitted or required to be made under this Agreement shall be in writing, signed by
the party giving such notice, election or demand and shall be delivered personally, telecopied, or sent by certified mail or overnight via nationally recognized courier service (such as Federal Express), to the other party at the address set forth
below, or at such other address as may be supplied in writing and of which receipt has been acknowledged in writing. The date of personal delivery or telecopy or two business days after the date of mailing (or the next business day after delivery to
such courier service), as the case may be, shall be the date of such notice, election or demand. For the purposes of this Agreement: 
  

			
	 The address of Lender is:
	  	 Harbinger Mezzanine Partners, L.P.
 One Riverchase Parkway South
 Birmingham, Alabama 35244
 Attention: Mr. David A. Boutwell
 Telecopy No.: 205/987-5599

		
	 with a copy to:
	  	 Harbinger Mezzanine Partners, L.P.
 618 Church Street, Suite 500
 Nashville, Tennessee 37219
 Attention: Mr. John C. Harrison
 Telecopy No.: 615/301-6401

		
	 	  	 and

		
	 	  	 Chambliss, Bahner & Stophel, P.C.
 1000 Tallan
Building, Two Union Square
 Chattanooga, Tennessee 37402-2500
 Attention: Mr. J. Patrick Murphy
 Telecopy No.: 423/265-9574

		
	 The Address of Borrower is:
	  	 TEAMM Pharmaceuticals, Inc.
 3000 Aerial Center Parkway, Suite 110
 Morrisville, North Carolina 27560
 Attention: Mr. Martin G. Baum
 Telecopy No.: 919/481-9311

  

 21 

			
	 with a copy to:
	  	Hutchison & Mason, PLLC
	 	  	            3110 Edwards Mill Road, Suite 100
	 	  	    Raleigh, North Carolina 27612
	 	  	  Attention: J. Robert Tyler, III
	 	  	Telecopy No.: 919/829-9696

  
 7.10 Public
Disclosure. The parties hereto may make a public statement or release concerning this Agreement and the transaction contemplated hereby after the Closing Date. 
  
 7.11 Entire Agreement. This Agreement and the other written agreements between Borrower and Lender represent
the entire agreement between the parties concerning the subject matter hereof, and all oral discussions and prior agreements are merged herein; provided, if there is a conflict between this Agreement and any other document executed contemporaneously
herewith with respect to the Obligations, the provision of this Agreement shall control. The execution and delivery of this Agreement and the other Loan Documents by Borrower were not based upon any fact or material provided by Lender, nor was
Borrower induced or influenced to enter into this Agreement or the other Loan Documents by any representation, statement, analysis or promise by Lender. 
  
 7.12 Governing Law and Amendments. This Agreement shall be construed and enforced under the laws of the State of Tennessee applicable to
contracts to be wholly performed in such State. No amendment or modification hereof shall be effective except in a writing executed by each of the parties hereto. 
  
 7.13 Survival of Representations and Warranties. All representations and warranties contained herein or in any
of the Loan Documents or made by or furnished on behalf of Borrower in connection herewith or in any Loan Documents shall survive the execution and delivery of this Agreement and the other Loan Documents. 
  
 7.14 Counterparts. This Agreement may be executed in any number
of counterparts and by different parties to this Agreement in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same Agreement. 
  
 7.15 Construction and Interpretation. Should any provision of
this Agreement require judicial interpretation, the parties hereto agree that the court interpreting or construing the same shall not apply a presumption that the terms hereof shall be more strictly construed against one party by reason of the rule
of construction that a document is to be more strictly construed against the party that itself or through its agent prepared the same, it being agreed that Borrower, Lender and their respective agents have participated in the preparation hereof.

  
 7.16 General Indemnification. Borrower agrees to
indemnify Lender, its officers, directors, employees, partners and agents (individually, an “Indemnified Party” and collectively, the “Indemnified Parties”) and each of them and agrees to hold each of them harmless from and
against any and all losses, liabilities, damages, costs, expenses and claims of any and every kind whatsoever (except those arising solely by reason of the gross negligence or willful misconduct of an Indemnified Party) which may be imposed on,
incurred by, or asserted against the 

  

 22 

 
Indemnified Parties or any of them arising by reason of any action or inaction or omission to any act legally required of Borrower (including as required
pursuant hereto or pursuant to any other Loan Document). 
  
 7.17 Standard of Care; Limitation of Damages. Lender shall be liable to Borrower only for matters arising from this Agreement or otherwise related to the Obligations resulting from Lender’s gross negligence or willful
misconduct, and liability for all other matters is hereby waived. Lender shall not in any event be liable to Borrower for special or consequential damages arising from this Agreement or otherwise related to the Obligations. 
  
 7.18 Consent to Jurisdiction; Exclusive Venue. Borrower hereby
irrevocably consents to the jurisdiction of the United States District Court for the Middle District of Tennessee and of all Tennessee state courts sitting in Davidson County, Tennessee, for the purpose of any litigation to which Lender may be a
party and which concerns this Agreement or the Obligations. It is further agreed that venue for any such action shall lie exclusively with courts sitting in Davidson County, Tennessee, unless Lender agrees to the contrary in writing. 
  
 7.19 Waiver of Trial by Jury. LENDER AND
BORROWER HEREBY KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COUNSEL WAIVE TRIAL BY JURY IN ANY ACTIONS, PROCEEDINGS, CLAIMS OR COUNTER-CLAIMS, WHETHER IN CONTRACT OR TORT OR OTHERWISE, AT LAW OR IN EQUITY, ARISING OUT OF OR IN ANY
WAY RELATING TO THIS AGREEMENT OR THE LOAN DOCUMENTS. 
  

 23 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement, or have caused this Agreement to be
executed by their duly authorized officers, as of the day and year first above written. 
  

			
	LENDER:
	
	HARBINGER MEZZANINE PARTNERS,
L.P., a Delaware limited partnership

					
		
	By:	 	 Harbinger Mezzanine GP, LLC, its
 General
Partner

			
	 	 	 By:
	 	 Harbinger Mezzanine Manager, Inc.,
 its
Manager

					
			
	 	 	 By:
	 	 /s/ John C. Harrison

	 	 	 Title:
	 	 Director

  

			
	BORROWER:
	
	TEAMM PHARMACEUTICALS, INC.,
a Delaware corporation
		
	By:	 	 /s/ Martin G. Baum

	 	 	 Martin G. Baum

	 	 	 President and Chief Executive Officer

  

 24 

  
 INDEX
OF SCHEDULES 
  
 Schedule 2.1(e) -
Capitalization Table 
 Schedule 2.1(f) - Intellectual Property 
 Schedule 2.1(i)(A) and (B) - Financial Statements 
 Schedule 2.1(1) - Debt and Liens 
 Schedule 2.1(n) - Shareholder Loans 
 Schedule 2.1(r) - Significant Contracts 
 Schedule 2.l(t) - Commissions 
 Schedule 2.l(ab) - Location of Properties,
Names, Places of Business 
 Schedule 4.1(q)(l) - List of Indebtedness 
 Schedule 4.1 (q)(2) - Term sheet for Converting Indebtedness to Series A Preferred Stock 
  

  
 Schedule of Exceptions to

 Loan Agreement 
 by
and between 
 TEAMM Pharmaceuticals, Inc. and Harbinger Mezzanine Partners, L.P. 
 Dated August 9, 2002 
  
 In connection with that certain Loan Agreement, dated as of August 9, 2002 (the “Agreement”), by and between TEAMM Pharmaceuticals, Inc.,
a Delaware corporation (the “Borrower”), and Harbinger Mezzanine Partners, L.P., a Delaware limited partnership (the “Lender”), the Borrower hereby delivers this Schedule of Exceptions to the Borrower’s
representatives and warranties given in the Agreement. This Schedule of Exceptions is qualified entirely by reference to the provisions of the Agreement and does not constitute a representation or warranty of Buyer except as expressly provided in
the Agreement. 
  
 This Schedule of Exceptions may include items
that do not meet materiality thresholds set forth in the Agreement and any such inclusion shall not be deemed an admission that the item is material, nor shall any item so included be used to construe materiality thresholds set forth in the
Agreement. 
  
 Headings have been inserted in the Schedule of
Exceptions for reference only and do not amend the descriptions of the disclosed items set forth in the Agreement. 
  
 Capitalized terms not otherwise defined herein have the meanings assigned to such terms in the Agreement. 
  

  
 Schedule of Exceptions to

 Loan Agreement 
 by
and between 
 TEAMM Pharmaceuticals, Inc. and Harbinger Mezzanine Partners, L.P. 
 Dated August 9,2002 
  
 Section 2.1(e) Capitalization 
  
 See the attached Stock Option Ledger. 
  
 See the attached Warrant Ledger. 
  
 Stock Restriction Agreement, dated December 22, 2000, between the Company and Martin G. Baum (“Baum”). 
  
 Executive Employment Agreement, dated August 1, 2002, between the Company and
Baum. 
  
 Stock Restriction Agreement, dated December 22, 2000
between the Company and Nicholas J. Leb (“Leb”). 
  
 Executive Employment Agreement, dated August 1, 2001, between the Company and Leb. 
  
 Stock Restriction Agreement, dated December 22, 2000 between the Company and Jon T. Stone (“Stone”). 
  
 Executive Employment Agreement, dated August 1, 2001, between the Company and Stone. 
  
 Stock Restriction Agreement, dated December 22, 2000 between the Company and William J. Thomas II
(“Thomas”). 
  
 Executive Employment Agreement,
dated August 1, 2001, between the Company and Thomas. 
  
 Stock
Restriction Agreement, dated October 5,2001, between the Company and Gary V. Cantrell (“Cantrell”), 
  
 Executive Employment Agreement, dated August 1, 2001, between the Company and Cantrell. 
  
 The Bylaws of the Company, as amended, contain restrictions on the transfer of shares of the Company’s capital stock
and a right of first refusal in favor of the Company to purchase shares of the Company’s capital stock. 
  
 Pursuant to the Company’s Stock Option Plan, shares of the Company’s Class A Voting Stock that are issued upon the exercise of stock options are
subject to the restrictions on transfer and right of first refusal contained in the Company’s Bylaws. 
  

  
 Schedule of Exceptions to

 Loan Agreement 
 by
and between 
 TEAMM Pharmaceuticals, Inc. and Harbinger Mezzanine Partners, L.P. 
 Dated August 9, 2002 
  
 Section 2.1(f) Trademarks, Patents, etc. 
  
 Service Mark application serial number 76/190942, for a Class 35 Goods and Services Use Mark “TEAMM Pharmaceuticals. 
  
 The Borrower entered into a Trademark Assignment Agreement, dated June 28,
2002, with Andrx Laboratories, Inc. transferring certain common law trademarks to the Borrower. 
  
 Section 2.1(i)(A) Financial Statements 
  
 See the attached Financial Statements. 
  
 Section 2.1(i)(B) Financial Statements 
  

						
	 Lender

	  	Date of
Investment

	  	Amount Invested

	 Ernest Mario
	  	6/27/02	  	$	100,000.00
	 Clifford H. Disbrow
	  	6/28/02	  	$	25,000.00
	 M. Ross Johnson
	  	6/28/02	  	$	50,000.00
	 Gary V. Cantrell
	  	7/2/02	  	$	25,000.00
	 Martin G. Baum
	  	7/18/02	  	$	15,775.00
	 Carroll M. McLeod, M.D.
	  	7/18/02	  	$	50,000.00
	 The Hopkins Capital Group, LLC
	  	5/8/02	  	$	100,000.00
	 The Hopkins Capital Group, LLC
	  	6/14/02	  	$	50,000.00
	 The Hopkins Capital Group, LLC
	  	6/21/02	  	$	50,000.00
	 The Hopkins Capital Group, LLC
	  	7/18/02	  	$	100,000.00
	 	  	 	  	
	

	 Total:
	  	 	  	$	565,775.00

  

  
 Schedule of Exceptions to

 Loan Agreement 
 by
and between 
 TEAMM Pharmaceuticals, Inc. and Harbinger Mezzanine Partners, L.P. 
 Dated August 9, 2002 
  
 Section 2.1(1) Debt 
  

						
	 Lender Name

	  	Date of Investment

	  	Amount of
Indebtedness

	 Clifford Disbrow
	  	6/22/01	  	$	25,000
	 Jack H. Hughes, Jr.
	  	6/22/01	  	$	50,000
	 Chris T. Koenemann
	  	6/27/01	  	$	25,000
	 M. Ross Johnson
	  	7/3/01	  	$	100,000
	 James M. Indermill
	  	7/2/01	  	$	5,000
	 B. L. “Chip” Radford
	  	7/2/01	  	$	25,000
	 Jay H. Ferguson
	  	7/2/01	  	$	50,000
	 Samuel W. Dawson
	  	7/2/01	  	$	35,000
	 Kenneth R. Tyma and Patrice D. Tyma, JT TEN
	  	7/2/01	  	$	25,000
	 Peter J. Wise
	  	7/2/01	  	$	30,000
	 C. Stephen Doan
	  	7/2/01	  	$	10,000
	 Charles Darsie & Sandra Cook, JT TUN
	  	7/6/01	  	$	25,000
	 S. Wayne Smith
	  	7/6/01	  	$	25,000
	 Jeremy K. Mario
	  	7/10/01	  	$	100,000
	 Christopher B. Mario
	  	7/10/01	  	$	25,000
	 Delmar A. & Dianne L. Nordstrom
	  	7/17/01	  	$	50,000
	 Gregory G. Mario
	  	7/20/01	  	$	25,000
	 James & Donna Deppe
	  	7/20/01	  	$	25,000
	 Mentor Capital Angel Fund I, LP
	  	7/31/01	  	$	50,000
	 Mentor Capital Angel Fund I, LP
	  	9/25/01	  	$	50,000
	 Andrew J. Butler
	  	10/02/01	  	$	50,000
	 The Hopkins Capital Group, LLC
	  	1/8/02	  	$	50,000
	 The Hopkins Capital Group, LLC
	  	1/9/02	  	$	50,000
	 The Hopkins Capital Group, LLC
	  	1/18/02	  	$	50,000
	 The Hopkins Capital Group, LLC
	  	2/7/02	  	$	100,000
	 The Hopkins Capital Group, LLC
	  	2/15/02	  	$	100,000
	 The Hopkins Capital Group, LLC
	  	2/28/02	  	$	50,000
	 The Hopkins Capital Group, LLC
	  	3/1/02	  	$	150,000
	 The Hopkins Capital Group, LLC
	  	3/28/02	  	$	80,000
	 The Hopkins Capital Group, LLC
	  	4/2/02	  	$	120,000
	 The Hopkins Capital Group, LLC
	  	4/24/02	  	$	80,000
	 The Hopkins Capital Group, LLC
	  	5/8/02	  	$	20,000
	 The Hopkins Capital Group, LLC
	  	5/8/02	  	$	100,000
	 The Hopkins Capital Group, LLC
	  	6/14/02	  	$	50,000
	 The Hopkins Capital Group, LLC
	  	6/21/02	  	$	50,000

  

  
 Schedule of Exceptions to

 Loan Agreement 
 by
and between 
 TEAMM Pharmaceuticals, Inc. and Harbinger Mezzanine Partners, L.P. 
 Dated August 9, 2002 
  
 The provisions of Section 2.1(i)(B) of this Schedule of Exceptions are incorporated herein by reference. 
  
 Section 2.1(n) Certain Transactions 
  
 The provisions of Section 2.1(1) of this Schedule of Exceptions are
incorporated herein by reference. 
  
 Section 2.1(r) Significant Contracts

  
 The provisions of Section 2.1(e) of this Schedule of
Exceptions are incorporated herein by reference. 
  
 The
provisions of Section 2.1(t) of this Schedule of Exceptions are incorporated herein by reference. 
  
 The Company entered into a Distribution Services Agreement, dated July 24, 2002, with DDN/Obergfel, LLC. 
  
 The Company entered into an Asset Purchase Agreement, Escrow Agreement,
Warehouse, Management, and Distribution Agreement, Assignment and Assumption Agreement, Trademark Assignment Agreement, and Bill of Sale, dated June 28, 2002, with Andrx Laboratories, Inc. 
  
 The Company entered into an agreement, dated July 18, 2001, with Hi-Tech
Pharmacal Co., Inc., as amended on September 1, 2001. 
  
 The
Company entered into a Co-promotion Agreement, dated April 1, 2001, with Amarin Pharmaceutials, Inc. 
  
 Section 2.1(t) Fees/Commissions 
  
 The Company entered into a non-exclusive financial advisory services agreement, dated May 24, 2001, with Dragonfly Capital, LLC, as amended on October 8, 2001, November 19, 2001 and July 18, 2002. 
  

  
 Schedule of Exceptions to

 Loan Agreement 
 by
and between 
 TEAMM Pharmaceuticals, Inc. and Harbinger Mezzanine Partners, L.P. 
 Dated August 9, 2002 
  
 Section 2.1(ab) Location of Properties, Names, Places of Business 
  
 TEAMM Pharmaceuticals, Inc. 
 3000 Aerial Center Parkway, Suite 110 
 Morrisville, NC 27560 
  
 DDN/Obergfel LLC 
 4880 Mendenhall Road 
 Memphis, TN 38141 
  

  
 TEAMM Pharmaceuticals,
Inc. 
 Balance Sheet 
 As of June 30, 2002 
  

			
	 	  	Jun 30, ’02

	 ASSETS
	  	 
	 Current Assets
	  	 
	 Checking/Savings
	  	 
	 1000 - Cash and cash equivalents
	  	 
	 1010 - First Citizens Bank-checking
	  	64,573.52
	 1050 - Petty Cash
	  	6.00
	 	  	

	 Total 1000 - Cash and cash equivalents
	  	64,579.52
	 	  	

	 Total Checking/Savings
	  	64,579.52
	 Accounts Receivable
	  	 
	 1100 - Accounts Receivable
	  	 
	 1110 - Trade Receivables
	  	319,940.97
	 	  	

	 Total 1100 - Accounts Receivable
	  	319,940.97
	 	  	

	 Total Accounts Receivable
	  	319,940.97
	 Other Currant Assets
	  	 
	 1300 - Inventory
	  	 
	 1310 - Inventory Asset
	  	1,512,278.61
	 1320 - Collateral Materials
	  	81,284.89
	 	  	

	 Total 1300 - Inventory
	  	1,593,563.50
	 1400 - Prepaids & Other Currant Assets
	  	 
	 1420 - Deposits
	  	6,200.00
	 1430 - Prepaid Misc. Expenses
	  	46,645.56
	 	  	

	 Total 1400 - Prepaids & Other Current Assets
	  	54,845.56
	 	  	

	 Total Other Current Assets
	  	1,648,408.16
	 	  	

	 Total Current Assets
	  	2,032,929.65
	 Fixed Assets
	  	 
	 1500 - Fixed Assets
	  	 
	 1510 - Furniture &. Fixtures
	  	5,000.00
	 1520 - Computer Equipment
	  	69,956.50
	 1610 - Accum. Deprec.-Furniture & Fix.
	  	-1,583.31
	 1620 - Accum. Deprec.-Computer Equip.
	  	-21,195.95
	 	  	

	 Total 1500 - Fixed Assets
	  	52,177.24
	 	  	

	 Total Fixed Assets
	  	52,177.24
	 Other Assets
	  	 
	 1700 - Other Assets
	  	 
	 1720 - Trademarks
	  	2,483.75
	 1730 - Acquired Product Rights
	  	800,000.00
	 1740 - Restricted Cash
	  	2,000,000.00
	 	  	

	 Total 1700 - Other Assets
	  	2,802,483.75
	 1900 - Deferred Tax Asset
	  	2,800.00
	 	  	

	 Total Other Assets
	  	2,805,283.75
	 	  	

	 TOTAL ASSETS
	  	4,890,380.64
	 	  	

	 LIABILITIES & EQUITY
	  	 
	 Liabilities
	  	 
	 Current Liabilities
	  	 
	 Accounts Payable
	  	 
	 2110 - Trade Payables
	  	550,857.83
	 2120 - Accured Accounts Payable
	  	2,895.30
	 	  	

	 Total Accounts Payable
	  	553,753.13

  

  
 TEAMM Pharmaceuticals,
Inc. 
 Balance Sheet 
 As of June 30, 2002 
  

			
	 	  	Jun 30, ’02

	 Other Current Liabilities
	  	 
	 2200 - Other Current Liabilities
	  	 
	 2205 - Customer Advances
	  	3,400,000.00
	 2210 - Accrued Salary & Compensation
	  	98,885.92
	 2211 - Federal W/H
	  	466.78
	 2219 - 401 (k) W/H
	  	13,598.48
	 2220 - 401 (k) Match
	  	3,857.20
	 2225 - Provision for Returned Goods
	  	20,290.00
	 2235 - Note Payable - Andrx Labs
	  	375,000.00
	 	  	

	 Total 2200 - Other Current Liabilities
	  	3,912,096.38
	 2240 - Convertible Promissory Notes
	  	1,612,755.28
	 	  	

	 Total Other Current Liabilities
	  	5,524,851.66
	 	  	

	 Total Current Liabilities
	  	8,078,604.79
	 Long Term Liabilities
	  	 
	 2241- Promissory Notes
	  	300,000.00
	 2245 - Discount of Convertible Notes
	  	-60,832.00
	 3600 - Deferred Tax Liability
	  	2,800.00
	 3610 - Deferred Revenue
	  	501,843.09
	 	  	

	 Total Long Term Liabilities
	  	743,811.08
	 	  	

	 Total Liabilities
	  	6,822,415.88
	 Equity
	  	 
	 Opening Bal Equity
	  	107.74
	 3000 - Shareholders’ Equity
	  	 
	 3110 - Common Stock
	  	2,124.57
	 3130 - Additional Paid-in Capital
	  	629,829.61
	 	  	

	 Total 3000 - Shareholders’ Equity
	  	631,954.18
	 3150 - Deferred Compensation
	  	-78,910.00
	 3900 - Retained Earnings
	  	-1,310,411.74
	 Net Income
	  	-1,174,765,42
	 	  	

	 Total Equity
	  	-1,932,025.24
	 	  	

	 TOTAL LIABILITIES & EQUITY
	  	4,890,390.64
	 	  	

  

  
 TEAMM Pharmaceuticals,
Inc. 
 Profit & Loss 
 January through June 2002 
  

			
	 	  	Jan -Jun ’02

	 Ordinary Income/Expense
	  	 
	 Income
	  	 
	 4000 - Revenue
	  	 
	 4020 - Co-Promotion Revenues
	  	303,526.95
	 4060 - Rebates/Chargebacks
	  	-405.60
	 	  	

	 Total 4000 - Revenue
	  	303,121.35
	 	  	

	 Total Income
	  	303,121.35
	 	  	

	 Gross Profit
	  	303,121.35
	 Expense
	  	 
	 6000 - Personnel Costs
	  	 
	 6001 - Salaries and wages
	  	931,327.23
	 6002 - F.I.C.A.
	  	55,109.55
	 6003 - Medicare
	  	12,887.34
	 6004 - F.U.T.A.
	  	1,498.28
	 6005 - S.U.T.A.
	  	5633.12
	 6006 - Medical Insurance
	  	60,052.99
	 6009 - Life & LTD Insurance
	  	4,749.93
	 6020 - Temporary Services
	  	150.00
	 	  	

	 Total 6000 - Personnel Costs
	  	1,071,418.44
	 7000 - Travel & Entertainment
	  	 
	 7001 - Airfare
	  	25,533.49
	 7002 - Lodging
	  	8,083.48
	 7003 - Meals & Entertainment
	  	25,739.33
	 7004 - Auto Rental
	  	1,932.24
	 7005 - Taxi, train, shuttle, etc.
	  	372.85
	 7006 - Parking & Tolls
	  	2,625.35
	 7007 - Auto Reimbursement
	  	27,212.92
	 	  	

	 Total 7000 - Travel & Entertainment
	  	91,499.66
	 8000 - General & Administrative
	  	 
	 8001 - Bank Service Charges
	  	1,207.02
	 8002 - Rent - Building
	  	38,677.02
	 8003 - Rent - Equipment
	  	13,453.57
	 8004 - Security
	  	209.70
	 8005 - Water
	  	153.39
	 8006 - Insurance - Liability
	  	2,228.77
	 8008 - Dues and Subscriptions
	  	1,035.80
	 8009 - Legal Fees
	  	19,584.56
	 8010 - Accounting
	  	24,661.14
	 8011 - Postage and Delivery
	  	4,864.70
	 8012 - Licenses, and Permits
	  	-500.00
	 8013 - Printing and Reproduction
	  	2,658.22
	 8016 - Telephone
	  	21,439.70
	 8018 - Supplies - Office
	  	4,133.80
	 8019 - Depreciation Expense
	  	12,159.42
	 8022 - Consulting Services
	  	1,067.29
	 8023 - Meetings & Seminars
	  	400.00
	 8025 - Promotional Materials
	  	25,882.07
	 8026 - Sales Training
	  	-5,000.00
	 8027 - Marketing Data
	  	31,688.61
	 8039 - Miscellaneous
	  	2,032.41
	 8042 - Franchise Tax
	  	1,468.75
	 8045 - Training
	  	1,797.00
	 8046 - Sample Expense
	  	13,929.76
	 8047 - Recruiting
	  	10,278.00
	 8050 - Uncategorized Expenses
	  	0.00
	 	  	

	 Total 8000 - General & Administrative
	  	229,510.70
	 	  	

	 Total Expense
	  	1,392,428.80
	 	  	

	 Net Ordinary Income
	  	-1,089,307.45

  
  

 TEAMM Pharmaceuticals, Inc. 
 Profit & Loss 
 January through June 2002 
  

			
	 	  	Jan - Jun ’02

	 Other Income/Expense
	  	 
	 Other Income
	  	 
	 9001 Interest Income
	  	385.03
	 	  	

	 Total Other Income
	  	385.03
	 Other Expense
	  	 
	 9002 Interest Expense
	  	85,843.00
	 	  	

	 Total Other Expense
	  	85,843.00
	 	  	

	 Net Other Income
	  	-85,457.97
	 	  	

		
	 Net Income
	  	-1,174,755.42
	 	  	

  

 TEAMM Pharmaceuticals, Inc. 
 Statement of Cash Flows 
 For the Six Months Ending June 30, 2002 
  

					
	 Cash flows from operating activities
	  	 	 	 
		
	 Net loss
	  	$	(1,174,765	)
	 Adjustments to reconcile net loss to net cash provided (used) by operating activities:
	  	 	 	 
	 Depreciation and amortization
	  	 	12,159	 
	 Accrued interest expense
	  	 	85,843	 
	 Changes in operating assets and liabilities:
	  	 	 	 
	 Accounts receivable
	  	 	(78,957	)
	 Inventories
	  	 	(1,508,913	)
	 Prepaid expenses and other current liabilities
	  	 	(47,346	)
	 Accounts payable and other accrued expenses
	  	 	57,629	 
	 Accrued compensation and employee benefits
	  	 	5,366	 
	 	  	
	
	

		
	 Net cash provided (used) by operating activities
	  	 	(2,648,984	)
	 	  	
	
	

		
	 Cash flows from investing activities
	  	 	 	 
		
	 Purchase of product rights
	  	 	(800,000	)
	 Write-up of purchased inventory
	  	 	501,843	 
	 Increase in note to Andrx Laboratories
	  	 	375,000	 
	 Customer advance
	  	 	3,400,000	 
	 Establishment of escrow account
	  	 	(2,000,000	)
	 	  	
	
	

		
	 Net cash provided by (used in) investing activities
	  	 	1,476,843	 
	 	  	
	
	

		
	 Cash flows from financing activities
	  	 	 	 
		
	 Net proceeds from issuance of convertible promissory notes
	  	 	1,138,951	 
	 	  	
	
	

		
	 Net cash provided by financing activities
	  	 	1,138,951	 
	 	  	
	
	

		
	 Net increase in cash and cash equivalents
	  	 	(33,190	)
		
	 Cash and cash equivalents as of beginning of period
	  	 	97,770	 
	 	  	
	
	

		
	 Cash and cash equivalents as of end of period
	  	$	 64,580	 
	 	  	
	
	

  

 Section 4.1 (q)(1) Debt 
 Debt to be Converted 
  

						
	 Lender Name

	  	Date of Investment

	  	Amount of
Indebtedness

	 Clifford Disbrow
	  	6/22/01	  	$	25,000
	 Jack H. Hughes, Jr.
	  	6/22/01	  	$	50,000
	 Chris T. Koenemann
	  	6/27/01	  	$	25,000
	 M. Ross Johnson
	  	7/3/01	  	$	100,000
	 James M. Indermill
	  	7/2/01	  	$	5,000
	 B.L. “Chip” Radford
	  	7/2/01	  	$	25,000
	 Jay H. Ferguson
	  	7/2/01	  	$	50,000
	 Samuel W. Dawson
	  	7/2/01	  	$	35,000
	 Kenneth R. Tyma and Patrice D. Tyma, JT TEN
	  	7/2/01	  	$	25,000
	 Peter J. Wise
	  	7/2/01	  	$	30,000
	 C. Stephen Doan
	  	7/2/01	  	$	10,000
	 Charles Darsie & Sandra Cook, JT TEN
	  	7/6/01	  	$	25,000
	 S. Wayne Smith
	  	7/6/01	  	$	25,000
	 Jeremy K. Mario
	  	7/10/01	  	$	100,000
	 Christopher B. Mario
	  	7/10/01	  	$	25,000
	 Delmar A. & Dianne L. Nordstrom
	  	7/17/01	  	$	50,000
	 Gregory G. Mario
	  	7/20/01	  	$	25,000
	 James & Donna Deppe
	  	7/20/01	  	$	25,000
	 Mentor Capital Angel Fund I, LP
	  	7/31/01	  	$	50,000
	 Mentor Capital Angel Fund I, LP
	  	9/25/01	  	$	50,000
	 Andrew J. Butler
	  	10/02/01	  	$	50,000
	 The Hopkins Capital Group, LLC
	  	1/8/02	  	$	50,000
	 The Hopkins Capital Group, LLC
	  	1/9/02	  	$	50,000
	 The Hopkins Capital Group, LLC
	  	1/18/02	  	$	50,000
	 The Hopkins Capital Group, LLC
	  	2/7/02	  	$	100,000
	 The Hopkins Capital Group, LLC
	  	2/15/02	  	$	100,000
	 The Hopkins Capital Group, LLC
	  	2/28/02	  	$	50,000
	 The Hopkins Capital Group, LLC
	  	3/1/02	  	$	150,000
	 The Hopkins Capital Group, LLC
	  	3/28/02	  	$	80,000
	 The Hopkins Capital Group, LLC
	  	4/2/02	  	$	120,000
	 The Hopkins Capital Group, LLC
	  	4/24/02	  	$	80,000
	 The Hopkins Capital Group, LLC
	  	5/8/02	  	$	20,000
	 The Hopkins Capital Group, LLC
	  	5/8/02	  	$	100,000
	 The Hopkins Capital Group, LLC
	  	6/14/02	  	$	50,000
	 The Hopkins Capital Group, LLC
	  	6/21/02	  	$	50,000

  

  
 SCHEDULE 4.1(q) (2)

  
 Term Sheet 
  
 This Term Sheet describes the terms of the newly created equity security of TEAMM
Pharmaceuticals, Inc., a Delaware corporation (“TEAMM”). These securities will be issued to the current holders of the Company’s Convertible Promissory Notes and certain other creditors of the Company. 
  

			
	Form of Security:	  	Series A Convertible Preferred Stock (the “Preferred Stock”).
		
	Conversion Date of Convertible Promissory Notes and Certain Other Indebtedness:	  	Anticipated to occur on or before July 31, 2002 in conjunction with the closing of the Company’s line of credit from Harbinger Mezzanine Partners, L.P.
		
	Dividend Rate:	  	6% of the Liquidation Preference (as described below) per annum, to be paid upon conversion of the Preferred Stock or upon any liquidation of the Company. Each quarter, accrued dividends on
the Preferred Stock will, at the election of the Company, be paid in cash or be added to the Liquidation Preference.
		
	Rights, Preferences, Privileges and Restrictions of Preferred:	  	(1) Ranking; Liquidation Preference: The Preferred Stock will rank senior to all classes of common stock, of the Company. In the event of liquidation, sale, merger,
consolidation or winding up of the Company, the holders of the Preferred Stock will be entitled to receive in preference to holders of all other preferred stock and common stock an amount equal to $2.01064 per share, plus all accrued and unpaid
dividends (the “Liquidation Preference”).
		
	 	  	(2) Conversion Price: The initial conversion price will provide for a one-for-one conversion ratio, subject to adjustment as provided in paragraphs (4) and (5) below.
		
	 	  	(3) Mandatory Conversion: Upon the election of the holders of a majority of the Preferred Stock or the closing of an Initial Public Offering of shares of the common stock of the
Company at a public offering price that is not less than three times the conversion price per share, with net proceeds to the Company of at least $30 million, the Preferred Stock holders will automatically convert into shares of common stock at the
then applicable conversion price.
		
	 	  	(4) Price Protection: Subject to customary exceptions, if the Company issues additional shares at a purchase price less than the applicable conversion price of the Preferred Stock the
conversion price will be reduced on a customary weighted average basis.

  

 Page 1 of 2 

			
	 	  	(5) Anti-Dilution: The conversion price of the shares of Preferred Stock will be proportionally adjusted in the event of a stock split or stock dividend with respect to the shares of
common stock. The conversion rights will likewise be subject to adjustment in the event of a reclassification or other recapitalization of the common stock, or any merger or disposition of all or substantially all of the Company’s assets, so
that the holders of the shares of Preferred Stock will be entitled to receive upon conversion what they would have received if the shares of Preferred Stock had been converted to common stock prior to such an event.
		
	 	  	(6) Voting Rights: The Preferred Stock will vote together with the common stock on an as converted basis.
		
	Information Rights:	  	So long as any of the Preferred Stock is outstanding and until the closing of an Initial Public Offering, the Company will deliver to each holder audited annual and unaudited quarterly and
monthly financial statements, annual budgets and other information reasonably requested by any holder of Preferred Stock.
		
	Registration Rights:	  	(1) Piggy-Back Registration: The Investors will be entitled to unlimited “piggy-back” registration rights on registrations of the Company, subject to customary
underwriter’s cutback.
		
	 	  	(2) Registration Expenses: The Registration expenses (exclusive of underwriting discounts and commissions but including the fees of one counsel of the selling shareholders) of each of
the registrations under paragraph (1) above will be paid by the Company.

  

 Page 2 of 2 

  
 SECURED
PROMISSORY NOTE 
  

			
	$5,000,000	 	August 9, 2002

  
 FOR VALUE RECEIVED,
the undersigned, TEAMM PHARMACEUTICALS, INC., a Delaware corporation (“Maker”), promises to pay to the order of HARBINGER MEZZANINE PARTNERS, L.P., a Delaware limited partnership (“Payee”; Payee and any subsequent holder[s]
hereof are hereinafter referred to collectively as “Holder”), at the office of Payee at Harbinger Mezzanine Partners, L.P., One Riverchase Parkway South, Birmingham, Alabama 35244, or at such other place as Holder may designate to Maker in
writing from time to time, the principal sum of FIVE MILLION AND NO/100THS DOLLARS ($5,000,000.00), together with interest on the outstanding principal balance hereof from the date hereof at the rate of thirteen and one-half percent (13.5%) per
annum (computed on the basis of a 360-day year). 
  
 Interest only
on the outstanding principal balance hereof shall be due and payable monthly, in arrears, with the first installment being payable on the first (1st) day of September, 2002, and subsequent installments being payable on the first (1st) day of each
succeeding month thereafter until August 8 , 2007 (the “Maturity Date”), at which time the entire outstanding principal balance, together with all accrued and unpaid interest, shall be immediately due and payable in full. 
  
 The indebtedness evidenced hereby may be prepaid in whole or in part, at any
time and from time to time, without premium or penalty. Any such prepayments shall be credited first to any accrued and unpaid interest and then to the outstanding principal balance hereof. 
  
 Time is of the essence of this Note. It is hereby expressly agreed that in
the event that any Event of Default shall occur under and as defined in that certain Loan Agreement of even date herewith, between Maker and Payee (together with any amendments thereto, the “Loan Agreement”), which Event of Default is not
cured following the giving of any applicable notice and within any applicable cure period set forth in the Loan Agreement, then, and in such event, the entire outstanding principal balance of the indebtedness evidenced hereby, together with any
other sums advanced hereunder, under the Loan Agreement and/or under any other instrument or document now or hereafter evidencing, securing or in any way relating to the indebtedness evidenced hereby, together with all unpaid interest accrued
thereon, shall, at the option of Holder and without notice to Maker, at once become due and payable and may be collected forthwith, regardless of the stipulated date of maturity. Upon the occurrence of any Event of Default as set forth herein, at
the option of Holder and without notice to Maker, all accrued and unpaid interest, if any, shall be added to the outstanding principal balance hereof, and the entire outstanding principal balance, as so adjusted, shall bear interest thereafter until
paid at an annual rate (the “Default Rate”) equal to the lesser of (i) the rate that is seven percentage points (7.0%) in excess of the above-specified interest rate, or (ii) the maximum rate of interest allowed to be charged under
applicable law (the “Maximum Rate”), regardless of whether or not there has been an acceleration of the payment of principal as set forth herein. All such interest shall be paid at the time of and as a condition precedent to the curing of
any such Event of Default. 
  

 In the event this Note is placed in the hands of an attorney for collection, or if Holder incurs any
costs incident to the collection of the indebtedness evidenced hereby, Maker and any endorsers hereof agree to pay to Holder an amount equal to all such costs, including without limitation all reasonable attorneys’ fees and all court costs.

  
 Presentment for payment, demand, protest and notice of demand,
protest and nonpayment are hereby waived by Maker and all other parties hereto. No failure to accelerate the indebtedness evidenced hereby by reason of an Event of Default hereunder, acceptance of a past-due installment or other indulgences granted
from time to time, shall be construed as a novation of this Note or as a waiver of such right of acceleration or of the right of Holder thereafter to insist upon strict compliance with the terms of this Note or to prevent the exercise of such right
of acceleration or any other right granted hereunder or by applicable law. No extension of the time for payment of the indebtedness evidenced hereby or any installment due hereunder, made by agreement with any person now or hereafter liable for
payment of the indebtedness evidenced hereby, shall operate to release, discharge, modify, change or affect the original liability of Maker hereunder or that of any other person now or hereafter liable for payment of the indebtedness evidenced
hereby, either in whole or in part, unless Holder agrees otherwise in writing. This Note may not be changed orally, but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification or discharge is
sought. 
  
 The indebtedness and other obligations evidenced by
this Note are further evidenced by (i) the Loan Agreement and (ii) certain other instruments and documents, as may be required to protect and preserve the rights of Maker and Payee, as more specifically described in the Loan Agreement. 

 
 All agreements herein made are expressly limited so that in no event
whatsoever, whether by reason of advancement of proceeds hereof, acceleration of maturity of the unpaid balance hereof or otherwise, shall the amount paid or agreed to be paid to Holder for the use of the money advanced or to be advanced hereunder
exceed the Maximum Rate. If, from any circumstances whatsoever, the fulfillment of any provision of this Note or any other agreement or instrument now or hereafter evidencing, securing or in any way relating to the indebtedness evidenced hereby
shall involve the payment of interest in excess of the Maximum Rate, then, ipso facto, the obligation to pay interest hereunder shall be reduced to the Maximum Rate; and if from any circumstance whatsoever, Holder shall ever receive
interest, the amount of which would exceed the amount collectible at the Maximum Rate, such amount as would be excessive interest shall be applied to the reduction of the principal balance remaining unpaid hereunder and not to the payment of
interest. This provision shall control every other provision in any and all other agreements and instruments existing or hereafter arising between Maker and Holder with respect to the indebtedness evidenced hereby. 
  
 This Note is intended as a contract under and shall be construed and
enforceable in accordance with the laws of the State of Tennessee, except to the extent that federal law may be applicable to the determination of the Maximum Rate. 
  
 Maker hereby irrevocably consents to the jurisdiction of the United States District Court for the Middle District of
Tennessee and of all Tennessee state courts sitting in Davidson County, Tennessee, for the purpose of any litigation to which Lender may be a party and which 

  

 2 

 
concerns this Note or the indebtedness evidenced hereby. It is further agreed that venue for any such action shall he exclusively with courts sitting in
Davidson County, Tennessee, unless Holder agrees to the contrary in writing. 
  
 HOLDER AND MAKER HEREBY KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COUNSEL WAIVE TRIAL BY JURY IN ANY ACTIONS, PROCEEDINGS, CLAIMS OR COUNTER-CLAIMS, WHETHER IN CONTRACT OR TORT OR OTHERWISE, AT LAW OR IN EQUITY,
ARISING OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT OR THE LOAN DOCUMENTS. 
  
 As used herein, the terms “Maker” and “Holder” shall be deemed to include their respective successors, legal representatives and assigns, whether by voluntary action of the parties or by operation
of law. 
  

			
	MAKER:
	
	 TEAMM PHARMACEUTICALS, INC., a

	 Delaware corporation

		
	 By:
	 	 /s/ Martin G. Baum

	 	 	 Martin G. Baum

	 	 	 President and Chief Executive Officer

  

 3 

  
 STOCK
PURCHASE WARRANT 
  
 This
STOCK PURCHASE WARRANT (“Warrant”) is issued this 9th day of August, 2002, by TEAMM PHARMACEUTICALS, INC., a Delaware corporation (the “Company”), to HARBINGER MEZZANINE PARTNERS, L.P., a Delaware limited partnership (Harbinger
Mezzanine Partners, L.P. and any subsequent assignee or transferee hereof are hereinafter referred to collectively as “Holder” or “Holders”). 
  
 AGREEMENT: 
  
 1. Issuance of Warrant; Term. 
  
 (a) For and in consideration of Harbinger Mezzanine Partners, L.P. making a loan to the Company in an amount
of $5,000,000 (the “Loan”) pursuant to the terms of a secured promissory note of even date herewith (the “Note”) and related loan agreement of even date herewith (the “Loan Agreement”), and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company hereby grants to Holder the right to purchase 663,414 shares (“Base Amount”) of the Company’s Class A common stock (the “Common
Stock”), which the Company represents to equal 15% of the shares of capital stock outstanding on the date hereof, calculated on a fully diluted basis and assuming exercise of this Warrant, provided that in the event that any portion of the
indebtedness evidenced by the Note is outstanding on the following dates, the Base Amount shall be increased to the corresponding number set forth below: 
  

			
	 DATE

	 	 BASE AMOUNT

	 August 9, 2003
	 	 825,222 shares, which the Company represents to equal 18% of the shares of the Company’s capital stock outstanding on the date hereof calculated on a fully
diluted basis after exercise of this Warrant

		
	 August 9, 2004
	 	 999,320 shares, which the Company represents to equal 21% of the shares of the Company’s capital stock outstanding on the date hereof calculated on a fully
diluted basis after exercise of this Warrant

  

			
	 August 9, 2005
	  	 1,187,162 shares, which the Company represents to equal 24% of the shares of the Company’s capital stock outstanding on the date hereof calculated on a
fully diluted basis after exercise of this Warrant

		
	 August 9, 2006
	  	 1,253,115 shares, which the Company represents to equal 25% of the shares of the Company’s capital stock outstanding on the date hereof calculated on a
fully diluted basis after exercise of this Warrant

  
 (b) As
used in this Warrant, “fully diluted basis” means the shares of Common Stock outstanding on the effective date of this Warrant, together with all shares of Common Stock that would be outstanding on such date assuming the issuance of all
shares of Common Stock issuable upon the exercise, exchange or conversion of (i) this Warrant, (ii) any securities outstanding as of such date and convertible into or exchangeable for Common Stock (whether or not the rights to exchange or convert
thereunder are immediately exercisable) (such convertible or exchangeable securities being herein called “Convertible Securities”), (iii) any rights outstanding as of such date to subscribe for or to purchase, or any warrants or options
outstanding as of such date for the purchase of, Common Stock or Convertible Securities (whether or not immediately exercisable) (such rights, warrants or options being herein called “Option Securities”), and (iv) any such Convertible
Securities issuable upon the exercise of such Option Securities. 
  
 (c) The shares of Common Stock issuable upon exercise of this Warrant are hereinafter referred to as the “Shares.” This Warrant shall be exercisable at any time and from time to time from the date hereof
until August 9, 2012 (the “Expiration Date”). 
  
 2.
Exercise Price. The exercise price (the “Exercise Price”) per share for which all or any of the Shares may be purchased pursuant to the terms of this Warrant shall be One Cent ($.01). 
  
 3. Exercise. This Warrant may be exercised by the Holder hereof
(but only on the conditions hereinafter set forth) in whole or in part, upon delivery of written notice of intent to exercise to the Company in the manner at the address of the Company set forth in Section 16 hereof, together with this Warrant and
payment to the Company of the aggregate Exercise Price of the Shares so purchased. The Exercise Price shall be payable, at the option of the Holder, (a) by certified or bank check, (b) by the surrender of the Note or portion thereof having an
outstanding principal balance equal to the aggregate Exercise Price or (c) by the surrender of a portion of this Warrant where the Shares subject to the portion of this Warrant that is surrendered have a fair market value equal to the aggregate
Exercise Price. In the absence of an established public market for the Common Stock, fair market value shall be established by the Company’s board of directors in a commercially reasonable manner. Upon exercise of this Warrant as aforesaid, the
Company shall as promptly as practicable, and in any event within 15 days 

  

 2 

 
thereafter, execute and deliver to the Holder of this Warrant a certificate or certificates for the total number of whole Shares for which this Warrant is
being exercised in such names and denominations as are requested by such Holder. If this Warrant shall be exercised with respect to less than all of the Shares, the Holder shall be entitled to receive a new Warrant covering the number of Shares in
respect of which this Warrant shall not have been exercised, which new Warrant shall in all other respects be identical to this Warrant. The Company covenants and agrees that it will pay when due any and all state and federal issue taxes which may
be payable in respect of the issuance of this Warrant or the issuance of any Shares upon exercise of this Warrant. 
  
 4. Covenants and Conditions. The above provisions are subject to the following: 
  
 (a) Neither this Warrant nor the Shares have been registered
under the Securities Act of 1933, as amended (“Securities Act”), or any state securities laws (“Blue Sky Laws”). This Warrant has been acquired for investment purposes and not with a view to distribution or resale and may not be
sold or otherwise transferred without (i) an effective registration statement for such Warrant under the Securities Act and such applicable Blue Sky Laws, or (ii) an opinion of counsel, which opinion and counsel shall be reasonably satisfactory to
the Company and its counsel, that registration is not required under the Securities Act or under any applicable Blue Sky Laws (the Company hereby acknowledges that Chambliss, Banner & Stophel, P.C. is acceptable counsel). Transfer of the Shares
shall be restricted in the same manner and to the same extent as the Warrant and the certificates representing such Shares shall bear substantially the following legend: 
  
 THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY APPLICABLE STATE SECURITIES LAW AND MAY NOT BE TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE ACT AND SUCH
APPLICABLE STATE SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE WITH REGARD THERETO, OR (ii) IN THE OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY, REGISTRATION UNDER SUCH SECURITIES ACTS AND SUCH APPLICABLE STATE SECURITIES LAWS IS NOT
REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER. 
  
 The
Holder hereof and the Company agree to execute such other documents and instruments as counsel for the Company reasonably deems necessary to effect the compliance of the issuance of this Warrant and any shares of Common Stock issued upon exercise
hereof with applicable federal and state securities laws. 
  
 (b) The Company covenants and agrees that all Shares which may be issued upon exercise of this Warrant will, upon issuance and payment therefor, be legally and validly issued and outstanding, fully paid and
nonassessable, free from all taxes, liens, charges and preemptive rights, if any, with respect thereto or to the issuance thereof. The Company shall at all times reserve and keep available for issuance upon the exercise of this Warrant such number

  

 3 

 
of authorized but unissued shares of Common Stock as will be sufficient to permit the exercise in full of this Warrant. 
  
 (c) The Company covenants and agrees that it shall not sell
any shares of the Company’s capital stock at a price per share below the fair market value of such shares, without the prior written consent of the Holder hereof. In the event that the Company sells shares of Common Stock at a price per share
below the fair market value of such shares (a “Below Market Transaction”), without the prior written consent of the Holder hereof, the Company covenants and agrees that the number of shares issuable upon exercise of this Warrant shall be
equal to the product obtained by multiplying the number of shares issuable pursuant to this Warrant prior to the Below Market Transaction by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately
prior to consummation of the Below Market Transaction plus the number of shares of Common Stock issued in the Below Market Transaction, and the denominator of which shall be the number of shares of Common Stock outstanding immediately prior to the
Below Market Transaction plus the number of shares of Common Stock that the aggregate consideration received by the Company in the Below Market Transaction would purchase at fair market value. For purposes of this subsection, Common Stock shall be
deemed to include that number of shares of Common Stock that would be obtained assuming (i) the conversion of any securities of the Company which, by their terms, are convertible into or exchangeable for Common Stock, and (ii) the exercise of all
options to purchase or rights to subscribe for Common Stock or securities which, by their terms, are convertible into or exchangeable for Common Stock. In the absence of an established public market for the securities sold by the Company hi a Below
Market Transaction, fair market value shall be established by the Company’s board of directors in a commercially reasonable manner. Notwithstanding the foregoing to the contrary, the Company may issue shares of Common Stock or options for
shares of Common Stock for up to 762,571 shares out of the shares available for issuance under the Company’s stock option plan as reflected on the capitalization table attached to the Loan Agreement as Schedule 2.1 (e). 
  
 (d) The Company covenants and agrees that if the computation
of the Shares is understated because any capital stock of the Company, Convertible Securities and/or Option Securities outstanding on the date hereof were excluded from said computation, then the Shares shall be correspondingly increased to take
such shares, securities and/or options into account on a proportionate basis. 
  
 5. Transfer of Warrant. Prior to an Event of Default (as defined in the Loan Agreement), this Warrant may not be transferred without the prior written consent of the Company, except that subject to the
provisions of Section 4 hereof, this Warrant may be transferred, in whole or in part, to any affiliate of Holder or affiliate of the general partner of Holder, by presentation of the Warrant to the Company with written instructions for such
transfer. Upon such presentation for transfer, the Company shall promptly execute and deliver a new Warrant or Warrants in the form hereof in the name of the assignee or assignees and in the denominations specified in such instructions. The Company
shall pay all expenses incurred by it in connection with the preparation, issuance and delivery of Warrants under this Section. 
  
 6. Warrant Holder Not Shareholder: Rights Offering; Preemptive Rights; Preference Rights. Except as otherwise provided herein, this
Warrant does not confer upon the 

  

 4 

 
Holder, as such, any right whatsoever as a shareholder of the Company. Notwithstanding the foregoing, if the Company should offer to all of the
Company’s shareholders the right to purchase any securities of the Company, then all shares of Common Stock that are subject to this Warrant shall be deemed to be outstanding and owned by the Holder and the Holder shall be entitled to
participate in such rights offering. The Holder shall have preemptive rights. The Company shall not issue any securities which entitle the holder thereof to obtain any preference over holders of Common Stock upon the dissolution, liquidation,
winding-up, sale, merger, or reorganization of the Company without the prior written consent of the Holder. 
  
 7. Observation Rights. The Holder of this Warrant shall receive notice of and be entitled to attend or may send a
representative to attend all meetings of the Company’s Board of Directors in a non-voting observation capacity and shall receive a copy of all correspondence and information delivered to the Company’s Board of Directors, from the date
hereof until such time as the indebtedness evidenced by the Note has been paid in full; provided that such representative shall execute such confidentiality agreement in favor of the Company as the Company may reasonably request. 
  
 8. Financial Statements and
Reports. Unless the Company is otherwise furnishing such information to the Holder hereof, from the date hereof, the Company shall deliver to the Holder the following financial information: 
  
 (a) as soon as available and in any event within 120 days
after the end of each fiscal year of the Company, (i) a consolidated balance sheet of the Company and its Subsidiaries as of the end of such fiscal year and the related consolidated statements of income, shareholders’ equity and cash flows of
the Company and its subsidiaries for such fiscal year, audited and reported upon, without qualification, by an independent public accounting firm acceptable to Holder and the Company, accompanied by an unaudited consolidating balance sheet of the
Company and its subsidiaries as of the end of such fiscal year and an unaudited consolidating statement of income of the Company and its subsidiaries for such fiscal year, certified by the Company’s president, chief executive officer or chief
financial officer and (ii) a written discussion and analysis by the management of the Company of the financial statements furnished in respect of such fiscal year; 
  
 (b) as soon as available and in any event within 30 days after the end of each month, (i) an unaudited
consolidated and consolidating balance sheet of the Company and its subsidiaries as of the end of such month, the related consolidated and consolidating statement of income of the Company and its subsidiaries for the period commencing at the
beginning of the current fiscal year and ending with the end of such month and the related consolidated statements of shareholders’ equity and cash flows of the Company and its subsidiaries for such period, certified by the Company’s
president, chief executive officer or chief financial officer and (ii) a written discussion and analysis by the management of the Company of the financial statements furnished in respect of such period, in a form consistent with the discussion and
analysis currently prepared internally by the Company for use by its management; 
  
 (c) within 30 days prior to the beginning of each fiscal year of the Company, a budget of the Company and its subsidiaries for such fiscal
year setting forth, in reasonable 

  

 5 

 
detail, a balance sheet and statements of income, shareholders’ equity and cash flows for such fiscal year; and 
  
 (d) with reasonable promptness, such other financial data as
the Holder may reasonably request. 
  
 9. Adjustment
Upon Changes in Stock. 
  
 (a) If all or
any portion of this Warrant shall be exercised subsequent to any stock split, stock dividend, recapitalization, combination of shares of the Company, or other similar event, occurring after the date hereof, then the Holder exercising this Warrant
shall receive, for the aggregate Exercise Price, the aggregate number and class of shares which such Holder would have received if this Warrant had been exercised immediately prior to such stock split, stock dividend, recapitalization, combination
of shares, or other similar event. If any adjustment under this Section 9(a), would create a fractional share of Common Stock or a right to acquire a fractional share of Common Stock, such fractional share shall be disregarded and the number of
shares subject to this Warrant shall be the next higher number of shares, rounding all fractions upward. Whenever there shall be an adjustment pursuant to this Section 9(a), the Company shall forthwith notify the Holder or Holders of this Warrant of
such adjustment, setting forth in reasonable detail the event requiring the adjustment and the method by which such adjustment was calculated. 
  
 (b) If all or any portion of this Warrant shall be exercised subsequent to any merger, consolidation, exchange of shares, separation,
reorganization or liquidation of the Company, or other similar event, occurring after the date hereof, as a result of which shares of Common Stock shall be changed into the same or a different number of shares of the same or another class or classes
of securities of the Company or another entity, or the holders of Common Stock are entitled to receive cash or other property, then the Holder exercising this Warrant shall receive, for the aggregate Exercise Price, the aggregate number and class of
shares, cash or other property which such Holder would have received if this Warrant had been exercised immediately prior to such merger, consolidation, exchange of shares, separation, reorganization or liquidation, or other similar event. If any
adjustment under this Section 9(b) would create a fractional share of Common Stock or a right to acquire a fractional share of Common Stock, such fractional share shall be disregarded and the number of shares subject to this Warrant shall be the
next higher number of shares, rounding all fractions upward. Whenever there shall be an adjustment pursuant to this Section 9(b), the Company shall forthwith notify the Holder or Holders of this Warrant of such adjustment, setting forth in
reasonable detail the event requiring the adjustment and the method by which such adjustment was calculated. 
  
 10. Put Agreement. 
  
 (a) The Company hereby irrevocably grants and issues to Holder the right and option to sell to the Company (the “Put”) during
the Put Period (as hereinafter defined), at a purchase price (the “Put Price”) equal to the Fair Market Value (as determined under subsection (c) below) of the shares of Common Stock issuable to Holder upon exercise of this Warrant less
the Exercise Price. Capitalized terms not otherwise defined in this Section shall have the meaning ascribed to them in the Loan Agreement. 
  

 6 

 “Put Period” means the period commencing on the earliest of (i) the Maturity
Date (as defined in the Note), or (ii) the occurrence of a Significant Event (as hereinafter defined), and terminating on the Expiration Date. 
  
 “Significant Event” means any of the following events: (i) any change of management or control of the Company whether by merger,
sale, consolidation or otherwise, (ii) any public offering by the, Company of capital stock, (iii) any filing by the Company for protection under the Bankruptcy Code, or (iv) any material breach under the Loan Agreement. For purposes of the
definition of Significant Event, “change of control of the Company” shall mean (A) with regard to a merger or consolidation, the Company or a wholly-owned subsidiary of the Company is not the party into whom the Company is merged or
consolidated, (B) with respect to a sale of substantially all of the assets of the Company, substantially all of the assets of the Company have been sold to a third party that is not a wholly-owned subsidiary of the Company and (C) with respect to
the sale or disposition of the capital stock of the Company, more than 50% of the . outstanding stock of the Company is sold. 
  
 (b) Holder may exercise the Put by delivery of written notice (the “Put Notice”) of such exercise to the Company in the manner
and at the address of the Company set forth in Section 16 hereof. The Company shall pay to Holder, in cash or by wire transfer of immediately available funds, the Put Price within 30 days of the receipt of the Put Notice. 
  
 (c) For purposes of this Section 10, the Fair Market Value
of the shares of Common Stock of the Company issuable pursuant to this Warrant shall be determined by mutual agreement between the Company and Holder or, if no agreement is reached, as follows: 
  
 (i) The Company and the Holder shall each appoint an
independent, experienced appraiser who is a member of a recognized professional association of business appraisers. The two appraisers shall determine the value of the shares of Common Stock which would be issued upon the exercise of the Warrant,
assuming that the sale would be between a willing buyer and a willing seller, both of whom have full knowledge of the financial and other affairs of the Company, and neither of whom is under any compulsion to sell or to buy, and without taking into
consideration that (A) such shares would constitute a minority interest and (B) would lack liquidity. 
  
 (ii) If the higher of the two appraisals is not 10% greater than the lower of the appraisals, the Fair Market Value shall be the average
of the two appraisals. If the higher of the two appraisals is equal to or greater than 10% more than the lower of the two appraisals, then a third appraiser shall be appointed by the two appraisers, and if they cannot agree on a third appraiser, the
American Arbitration Association shall appoint the third appraiser. The third appraiser, regardless of who appoints him or her, shall have the same qualifications as the first two appraisers. 
  

 7 

 (iii) The Fair Market Value after the appointment of the third appraiser shall be the
mean of the three appraisals. 
  
 (iv) The fees
and expenses of the appraisers shall be paid one-half by the Company and one-half by the Holder. 
  
 11. Registration. 
  
 (a) The Company and the Holder of the Warrant and the Shares agree that if at any time after the date hereof the Company shall propose to
file a registration statement with respect to any of its Common Stock on a form suitable for a secondary offering (including its initial public offering), it will give notice in writing to such effect to the Holder(s) at least 30 days prior to such
filing, and, at the written request of any such registered holder, made within 10 days after the receipt of such notice, will include therein at the Company’s cost and expense (including the fees and expenses of counsel to such Holder(s), but
excluding underwriting discounts, commissions and firing fees attributable to the Shares included therein) such of the Shares as such Holder(s) shall request; provided, however, that if the offering being registered by the Company is underwritten
and if the representative of the underwriters certifies in writing that the inclusion therein of the Shares would materially and adversely affect the sale of the securities to be sold by the Company thereunder, then the Company shall be required to
include in the offering only that number of securities, including the Shares, which the underwriters determine in their sole discretion will not jeopardize the success of the offering (the securities so included to be apportioned pro rata among all
selling shareholders according to the total amount of securities entitled to be included therein owned by each selling shareholder, but in no event shall the total amount of Shares included in the offering be less than the number of securities
included in the offering by any other single selling shareholder unless all of the Shares are included in the offering). 
  
 (b) Whenever the Company undertakes to effect the registration of any of the Shares, the Company shall, as expeditiously as reasonably
possible: 
  
 (i) Prepare and file with the
Securities and Exchange Commission (the “Commission”) a registration statement covering such Shares and use its best efforts to cause such registration statement to be declared effective by the Commission as expeditiously as possible and
to keep such registration effective until the earlier of (A) the date when all Shares covered by the registration statement have been sold or (B) 180 days from the effective date of the registration statement; provided, that before filing a
registration statement or prospectus or any amendment or supplements thereto, the Company will furnish to each Holder of Shares covered by such registration statement and the underwriters, if any, copies of all such documents proposed to be filed
(excluding exhibits, unless any such person shall specifically request exhibits), which documents will be subject to the review of such Holders and underwriters, and the Company will not file such registration statement or any amendment thereto or
any prospectus or any supplement thereto (including any documents incorporated by reference therein) with the Commission if (1) the underwriters, if any, shall reasonably object to such filing or (2) if information in such registration statement

  

 8 

 
or prospectus concerning a particular selling Holder has changed and such Holder or the underwriters, if any, shall reasonably object. 
  
 (ii) Prepare and file with the Commission such amendments
and post-effective amendments to such registration statement as may be necessary to keep such registration statement effective during the period referred to in Section 11(b)(i) and to comply with the provisions of the Securities Act with respect to
the disposition of all securities covered by such registration statement, and cause the prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be filed with the Commission pursuant to Rule 424 under the
Securities Act. 
  
 (iii) Furnish to the selling
Holder(s) such numbers of copies of such registration statement, each amendment thereto, the prospectus included in such registration statement (including each preliminary prospectus), each supplement thereto and such other documents as they may
reasonably request in order to facilitate the disposition of the Shares owned by them. 
  
 (iv) Use its best efforts to register and qualify under such other securities laws of such jurisdictions as shall be reasonably requested
by any selling Holder and do any and all other acts and things which may be reasonably necessary or advisable to enable such selling Holder to consummate the disposition of the Shares owned by such Holder, in such jurisdictions; provided, however,
that the Company shall not be required in connection therewith or as a condition thereto to qualify to transact business or to file a general consent to service of process in any such states or jurisdictions. 
  
 (v) Promptly notify each selling Holder of the happening of
any event as a result of which the prospectus included in such registration statement contains an untrue statement of a material fact or omits any fact necessary to make the statements therein not misleading and, at the request of any such Holder,
the Company will prepare a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such Shares, such prospectus will not contain an untrue statement of a material fact or omit to state any fact necessary to
make the statements therein not misleading. 
  
 (vi) Provide a transfer agent and registrar for all such Shares not later than the effective date of such registration statement. 
  
 (vii) Enter into such customary agreements (including underwriting agreements in customary form for a primary offering) and take all such
other actions as the underwriters, if any, reasonably request in order to expedite or facilitate the disposition of such Shares (including, without limitation, effecting a stock split or a combination of shares). 
  
 (viii) Make available for inspection by any selling Holder
or any underwriter participating in any disposition pursuant to such registration 

  

 9 

 
statement and any attorney, accountant or other agent retained by any such selling Holder or underwriter, all financial and other records, pertinent
corporate documents and properties of the Company, and cause the officers, directors, employees and independent accountants of the Company to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent
in connection with such registration statement. 
  
 (ix) Promptly notify the selling Holder(s) and the underwriters, if any, of the following events and (if requested by any such person) confirm such notification in writing: (A) the filing of the prospectus or any prospectus supplement and
the registration statement and any amendment or post-effective amendment thereto and, with respect to the registration statement or any post-effective amendment thereto, the declaration of the effectiveness of such, documents, (B) any requests by
the Commission for amendments or supplements to the registration statement or the prospectus or for additional information, (C) the issuance or threat of issuance by the Commission of any stop order suspending the effectiveness of the registration
statement or the initiation of any proceedings for that purpose and (D) the receipt by the Company of any notification with respect to the suspension of the qualification of the Shares for sale in any jurisdiction or the initiation or threat of
initiation of any proceeding for such purposes. 
  
 (x) Make every reasonable effort to prevent the entry of any order suspending the effectiveness of the registration statement and obtain at the earliest possible moment the withdrawal of any such order, if entered. 
  
 (xi) Cooperate with the selling Holder(s) and the
underwriters, if any, to facilitate the timely preparation and delivery of certificates representing the Shares to be sold and not bearing any restrictive legends, and enable such Shares to be in such lots and registered in such names as the
underwriters may request at least two business days prior to any delivery of the Shares to the underwriters. 
  
 (xii) Provide a CUSIP number for all the Shares not later than the effective date of the registration statement. 
  
 (xiii) Prior to the effectiveness of the registration
statement and any post-effective amendment thereto and at each closing of an underwritten offering, (A) make such representations and warranties to the selling Holder(s) and the underwriters, if any, with respect to the Shares and the registration
statement as are customarily made by issuers in primary underwritten offerings; (B) use its best efforts to obtain “cold comfort” letters and updates thereof from the Company’s independent certified public accountants addressed to the
selling Holders and the underwriters, if any, such letters to be in customary form and covering matters of the type customarily covered in “cold comfort” letters by underwriters in connection with primary underwritten offerings; (C)
deliver such documents and certificates as may be reasonably requested (1) by the holders of a 

  

 10 

 
majority of the Shares being sold, and (2) by the underwriters, if any, to evidence compliance with clause (A) above and with any customary conditions
contained in the underwriting agreement or other agreement entered into by the Company; and (D) obtain opinions of counsel to the Company and updates thereof (which counsel and which opinions shall be reasonably satisfactory to the underwriters, if
any), covering the matters customarily covered in opinions requested in underwritten offerings and such other matters as may be reasonably requested by the selling Holders and underwriters or their counsel. Such counsel shall also state that no
facts have come to the attention of such counsel which cause them to believe that such registration statement, the prospectus contained therein, or any amendment or supplement thereto, as of their respective effective or issue dates, contains any
untrue statement of any material fact or omits to state any material fact necessary to make the statements therein not misleading (except that no statement need be made with respect to any financial statements, notes thereto or other financial
‘data or other expertized material contained therein). If for any reason the Company’s counsel is unable to give such opinion, the Company shall so notify the Holders of the Shares and shall use its best efforts to remove expeditiously all
impediments to the rendering of such opinion. 
  
 (xiv) Otherwise use its best efforts to comply with all applicable rules and regulations of the Commission, and make generally available to its security holders earnings statements satisfying the provisions of Section 11(a) of the
Securities Act, no later than 45 days after the end of any 12-month period (or 90 days, if such period is a fiscal year) (A) commencing at the end of any fiscal quarter in which the Shares are sold to underwriters in a firm or best efforts
underwritten offering, or (B) if not sold to underwriters in such an offering, beginning with the first month of the first fiscal quarter of the Company commencing after the effective date of the registration statement, which statements shall cover
such 12-month periods. 
  
 (c) After the date
hereof, the Company shall not grant to any holder of securities of the Company any registration rights which have a priority greater than or equal to those granted to Holders pursuant to this Warrant without the prior written consent of the
Holder(s). 
  
 (d) The Company’s obligations
under Section 11(a) above with respect to each Holder of Shares are expressly conditioned upon such Holder’s furnishing to the Company in writing such information concerning such holder and the terms of such holder’s proposed offering as
the Company shall reasonably request for inclusion in the registration statement. If any registration statement including any of the Shares is filed, then the Company shall indemnify each Holder thereof (and each underwriter for such holder and each
person, if any, who controls such underwriter within the meaning of the Securities Act) from any loss, claim, damage or liability arising out of, based upon or in any way relating to any untrue statement of a material fact contained in such
registration statement or any omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, except for any such statement or omission based on information furnished in writing by
such Holder of the Shares expressly for use in connection with such registration statement; and such Holder 

  

 11 

 
shall indemnify the Company (and each of its officers and directors who has signed such registration statement, each director, each person, if any, who
controls the Company within the meaning of the Securities Act, each underwriter for the Company and each person, if any, who controls, such underwriter within the meaning of the Securities Act) and each other such holder against any loss, claim,
damage or liability arising from any such statement or omission which was made in reliance upon information furnished in writing to the Company by such holder of the Shares expressly for use in connection with such registration statement.

  
 (e) For purposes of this Section 11, all of
the Shares shall be deemed to be issued and outstanding. 
  
 12. Certain Notices. In case at any time the Company shall propose to: 
  
 (a) declare any cash dividend upon its Common Stock, except as expressly . permitted under the Loan Agreement; 
  
 (b) declare any dividend upon its Common Stock payable in
stock or make any special dividend or other distribution to the holders of its Common Stock; 
  
 (c) offer for subscription to the holders of any of its Common Stock any additional shares of stock in any class or other rights;

  
 (d) reorganize, or reclassify the capital
stock of the Company, or consolidate, merge or otherwise combine with, or sell of all or substantially all of its assets to, another corporation; 
  
 (e) voluntarily or involuntarily dissolve, liquidate or wind up of the affairs of the Company; or 
  
 (f) redeem or purchase any shares of its capital stock or
securities convertible into its capital stock; 
  
 then, in any one or more of
said cases, the Company shall give to the Holder of the Warrant, by certified or registered mail, (i) at least 20 days’ prior written notice of the date on which the books of the Company shall close or a record shall be taken for such dividend,
distribution or subscription rights or for determining rights to vote in respect of any such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding up, and (ii) in the case of such reorganization,
reclassification, consolidation, merger, sale, dissolution, liquidation or winding up, at least 20 days’ prior written notice of the date when the same shall take place. Any notice required by clause (i) shall also specify, in the case of any
such dividend, distribution or subscription rights, the date on which the holders of Common Stock shall be entitled thereto, and any notice required by clause (ii) shall specify the date on which the holders of Common Stock shall be entitled to
exchange their Common Stock for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or winding up, as the case may be. 
  

 12 

 13. Rights of Co-Sale. 
  
 (a) None of the shareholders of the Company listed on the signature page hereof (the
“Shareholders”) shall enter into any transaction that would result in the sale by it of any capital common stock of the Company now or hereafter owned by it, unless prior to such sale such Shareholder shall give written notice (the
“Co-Sale Notice”) to Holder addressed and delivered as set forth in Section 16 hereof, of its intention to effect such sale in order that Holder may exercise its rights under this Section 13 as hereinafter described. Such notice shall set
forth (i) the number of shares to be sold by such Shareholder, (ii) the principal terms of the sale, including the price at which the shares are intended to be sold, and (iii) an offer by such Shareholder to cause to be included with the shares to
be sold by it in the sale, on a share-by- share basis and on the same terms and conditions, the Shares issuable or issued to Holder pursuant this Warrant. 
  
 (b) If Holder has not accepted such offer in writing within a period of 10 days from the date of receipt of the Co-Sale Notice, then such
Shareholder shall thereafter be free for a period of 90 days to sell the number of shares specified in the Co-Sale Notice, at a price no greater than the price set forth in the Co-Sale Notice and on otherwise no more favorable terms to such
Shareholder than as set forth in the Co-Sale Notice, without any further obligation to Holder in connection with such sale. In the event that such Shareholder fails to consummate such sale within such 90-day period, the shares specified in the
Co-Sale Notice shall continue to be subject to this Section 13. 
  
 (c) If Holder accepts such offer in writing within the 10-day period, then such acceptance shall be irrevocable unless such Shareholder shall be unable to cause to be included in the sale the number of Shares of stock
held by Holder and set forth in the written acceptance. In that event, such Shareholder and Holder shall participate in the sale equally, with such Shareholder and Holder each selling half the total number of such shares to be sold in the sale.

  
 14. Remedies. If the Company or any Shareholder
violates, breaches or defaults under this Warrant, the Holder may proceed to protect and enforce its rights by any action at law, suit in equity or other appropriate proceeding, whether for specific performance of any agreement contained in
this Warrant, or for an injunction against a violation of any of the terms hereof, or in and of the exercise of any power granted hereby or by law. In case of any violation, breach or default under this Warrant, the Company or any Shareholder, as
applicable, shall pay. to the Holder on demand all costs and expenses of enforcing the Holder’s rights under this Warrant, including, without limitation, reasonably attorneys’ fees and legal expenses. 
  
 15. Article and Section Headings; Defined Terms. Numbered and
titled article and section headings are for convenience only and shall not be construed as amplifying or limiting any of the provisions of this Warrant. When used herein, the singular shall include the plural, and vice versa, and the use of any
gender shall include all other genders, as appropriate. 
  
 16.
Notice. Any and all notices, elections or demands permitted or required to be made under this Warrant shall be in writing, signed by the party giving such notice, election or demand and shall be delivered personally, telecopied, or sent
by certified mail or overnight via nationally recognized courier service (such as Federal Express), to the other party at the address 

  

 13 

 
set forth below, or at such other address as may be supplied in writing and of which receipt has been acknowledged in writing. The date of personal delivery
or telecopy or two business days after the date of mailing (or the next business day after delivery to such courier service), as the case may be, shall be the date of such notice, election or demand. For the purposes of this Warrant: 
  

			
	The address of Lender is:	  	Harbinger Mezzanine Partners, L.P.
	 	  	One Riverchase Parkway South
	 	  	Birmingham, Alabama 35244
	 	  	Attention: Mr. David A. Boutwell
	 	  	Telecopy No.: 205/987-5599
		
	with a copy to:	  	Harbinger Mezzanine Partners, L.P.
	 	  	618 Church Street, Suite 500
	 	  	Nashville, Tennessee 37219
	 	  	Attention: Mr. John C. Harrison
	 	  	Telecopy No.: 615/301-6401
		
	 	  	and
		
	 	  	Chambliss, Banner & Stophel, P.C.
	 	  	1000 Tallan Building
	 	  	Two Union Square
	 	  	Chattanooga, Tennessee 37402
	 	  	Attention: Mr. J. Patrick Murphy
	 	  	Telecopy No.: 423/265-9574
		
	The Address of Borrower is:	  	TEAMM Pharmaceuticals, Inc.
	 	  	3000 Aerial Center Parkway, Suite 110
	 	  	Morrisville, North Carolina 27560
	 	  	Attention: Mr. Martin G. Baum
	 	  	Telecopy No.: 919/481-9311
		
	with a copy to:	  	Hutchison & Mason, PLLC
	 	  	3110 Edwards Mill Road, Suite 100
	 	  	Raleigh, North Carolina 27612
	 	  	Attention: J. Robert Tyler, III
	 	  	Telecopy No.: 919/829-9696

  
 17.
Severability. If any provisions(s) of this Warrant or the application thereof to any person or circumstances shall be invalid or unenforceable to any extent, the remainder of this Warrant and the application of such provisions to other
persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 
  
 18. Entire Agreement. This Warrant between the Company and Holder represents the entire agreement between the parties concerning the subject
matter hereof, and all oral discussions and prior agreement are merged herein. 
  

 14 

 19. Governing Law and Amendments. This Warrant shall be construed and enforced under the
laws of the State of Tennessee applicable to contracts to be wholly performed in such State. No amendment or modification hereof shall be effective except in a writing executed by each of the parties hereto. 
  
 20. Counterparts. This Warrant may be executed in any number of
counterparts and be different parties to this Warrant in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same Warrant. 
  
 21. Consent to Jurisdiction: Exclusive Venue. The Company
hereby irrevocably consents to the jurisdiction of the United States District Court for the Middle District of Tennessee and of all Tennessee state courts sitting in Davidson County, Tennessee, for the purpose of any litigation to which Holder may
be a party and which concerns this Warrant. It is further agreed that venue for any such action shall lie exclusively with courts sitting in Davidson County, Tennessee, unless Holder agrees to the contrary in writing. 
  
 22. Waiver of Trial by Jury. HOLDER AND THE
COMPANY HEREBY KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COUNSEL WAIVE TRIAL BY JURY IN ANY ACTIONS, PROCEEDINGS, CLAIMS OR COUNTER-CLAIMS, WHETHER IN CONTRACT OR TORT OR OTHERWISE, AT LAW OR IN EQUITY, ARISING OUT OF OR IN ANY
WAY RELATING TO THIS WARRANT. 
  

 15 

 IN “WITNESS WHEREOF, the parties hereto have set their hands as of the date first above written.

  

					
	COMPANY:
	
	TEAMM Pharmaceuticals, Inc., a Delaware corporation
		
	By:	 	 /s/ Martin G. Baum

	 	 	 Martin G. Baum

	 	 	 President and Chief Executive Officer

	
	HOLDER:
	
	HARBINGER MEZZANINE PARTNERS, L.P., a Delaware limited partnership
		
	By:	 	 Harbinger Mezzanine GP, LLC, its General Partner

	 	 	 	 	 
			
	 	 	By:	 	 Harbinger Mezzanine Manager, Inc., its Manager

			
	 	 	By:	 	/s/ John C. Harrison
	 	 	 Title:
	 	Director

  

 16 

 For and in consideration of the Holder making the Loan to the Company pursuant to the Loan Agreement, the
undersigned have executed or caused this Warrant to be executed as of the date first above written for the purposes of agreeing to the terms and conditions of Sections 13 and 14 hereof and agreeing to refrain from taking any action inconsistent with
the terms hereof. 
  

	
	 SHAREHOLDERS:

	
	 /s/ Martin G. Baum

	 Martin G. Baum

  

	
	
	 /s/ Gary V. Cantrell

	 Gary V. Cantrell

  

	
	
	 /s/ Nicholas J. Leb

	 Nicholas J. Leb

  

 17 

  
 SECURITY
AGREEMENT 
  
 THIS SECURITY AGREEMENT
(“Agreement”) is made as of the 9th day of August, 2002, by and between TEAMM PHARMACEUTICALS, INC., a
Delaware corporation (“Borrower”), and HARBINGER MEZZANINE PARTNERS, L.P., a Delaware limited partnership (“Lender”). 
  
 RECITALS: 
  
 WHEREAS, Lender is making a loan (the “Loan”) in the amount of $5,000,000 to Borrower, pursuant to that certain Loan Agreement of even date
herewith by and between Borrower and Lender, as it may be amended, modified or extended from time to time (the “Loan Agreement”); and 
  
 WHEREAS, in connection with the making of the Loan, Lender desires to obtain from Borrower and Borrower desires to grant to Lender a security interest in
certain collateral more particularly described below. 
  
 AGREEMENT: 
  
 NOW,
THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 1. Grant of Security Interest. Borrower hereby grants to Lender
a security interest in the following described property (collectively, the “Collateral”): 
  
 (a) presently existing and hereafter arising accounts, contract rights, and all other forms of obligations owing to Borrower arising out
of the sale or lease of goods or the rendition of services by Borrower, whether or not earned by performance, and any and all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower
and Borrower’s Books relating to any of the foregoing (collectively, “Accounts”); 
  
 (b) present and future general intangibles and other personal property (including choses or things in action, goodwill, patents, trade
names, trademarks, servicemarks, copyrights, blueprints, drawings, purchase orders, customer lists, monies due or recoverable from pension funds, route lists, monies due under any royalty or licensing agreements, infringement claims, computer
programs, computer discs, computer tapes, literature, reports, catalogs deposit accounts, insurance premium rebates, tax refunds, and tax refund claims) other than goods and Accounts, and Borrower’s Books relating to any of the foregoing
(collectively, “General Intangibles”); 
  

 (c) present and future letters of credit, notes, drafts, instruments, certificated and
uncertificated securities, documents, leases, and chattel paper, and Borrower’s Books relating to any of the foregoing (collectively, “Negotiable Collateral”); 
  
 (d) present and future inventory in which Borrower has any interest, including goods held for sale or lease
or to be furnished under a contract of service and all of Borrower’s present and future raw materials, work in process, finished goods, and packing and shipping materials, wherever located, and any documents of title representing any of the
above, and Borrower’s Books relating to any of the foregoing (collectively, “Inventory”); 
  
 (e) present and hereafter acquired machinery, machine tools, motors, equipment, furniture, furnishings, fixtures, vehicles (including
motor vehicles and trailers), tools, parts, dies, jigs, goods (other than consumer goods or farm products), and any interest in any of the foregoing, and all attachments, accessories, accessions, replacements, substitutions, additions, and
improvements to any of the foregoing, wherever located (collectively, “Equipment”); 
  
 (f) present and hereafter acquired books and records including: ledgers; records indicating, summarizing, or evidencing Borrower’s
assets or liabilities, or the collateral; all information relating to Borrower’s business operations or financial condition; and all computer programs, disc or tape files, printouts, funds or other computer prepared information, and the
equipment containing such information (collectively, “Borrower’s Books”); 
  
 (g) present and hereafter acquired securities (whether certificated or uncertificated), securities accounts, commodity contracts and
accounts, securities entitlements and other investment property (collectively “Investment Property”); 
  
 (h) substitutions, replacements, additions, accessions, proceeds, products to or of any of the foregoing, including, but not limited to,
proceeds of insurance covering any of the foregoing, or any portion thereof, and any and all Accounts, General Intangibles, Negotiable Collateral, Inventory, Equipment, money, deposits, accounts, or other tangible or intangible property resulting
from the sale or other disposition of the accounts, general Intangibles, Negotiable Collateral, Inventory, Equipment, or any portion thereof or interest therein and the proceeds thereof. 
  
 2. Revised Article 9. Borrower acknowledges and agrees to the following provisions with respect to the
application of revised Article 9 of the Uniform Commercial Code, in the form or substantially in the form approved by the American Law Institute and the National Conference of Commissioners on Uniform State Laws, as contained in Appendix XVI of the
1999 edition of the Uniform Commercial Code Official Text (as adopted in the applicable jurisdiction, “Revised Article 9”): 
  
 (a) Attachment. In applying the law of any jurisdiction in which Revised Article 9 is in effect, the Collateral is all assets of
Borrower secured by this Agreement, whether or not within the scope of Revised Article 9. The Collateral shall include, without limitation, the following categories of assets as defined in Revised Article 9: instruments (including promissory notes),
accounts, chattel paper (whether tangible or electronic), deposit accounts, letter-of-credit 

  

 2 

 
rights (whether or not the letter of credit is evidenced by a writing), commercial tort claims, securities and all other investment property, general
intangibles (including payment intangibles and software), supporting obligations and any and all proceeds thereof, wherever located, whether now owned or hereafter acquired. 
  
 (b) Perfection by Filing. Borrower hereby specifically authorizes Lender at any time and from time to
time to file financing statements, continuation statements and amendments thereto that describe the Collateral and contain any other information required by Part 5 of Revised Article 9 for the sufficiency or filing office acceptance of any financing
statement, continuation statement or amendment, including whether Borrower is an organization, the type of organization and any organization identification number issued to Borrower. Borrower agrees to furnish any such information to the Lender
promptly upon request. Any such financing statements, continuation statements or amendments may be signed by Lender on behalf of Borrower and may be filed at any time in any jurisdiction whether or not Revised Article 9 is then in effect in such
jurisdiction. Borrower hereby irrevocably constitutes and appoints Lender and any officer or agent thereof, with full power of substitution, as its true and lawful attomey-in-fact with full irrevocable power and authority in the place and stead of
Borrower and in the name of Borrower or in its own name, from time to time in Lender’s discretion, for the limited purpose of carrying out the terms of this subsection regarding perfection by filing. Borrower hereby ratifies all that said
attorneys shall lawfully do or cause to be done by virtue hereof. All powers, authorizations and agencies contained in this subsection are coupled with an interest and are irrevocable until all of the Obligations (as defined in the Loan Documents)
have been paid and satisfied in full. 
  
 (c)
Other Perfection, etc. At any time and from time to time, Borrower shall, whether or not Revised Article 9 is in effect in any applicable jurisdiction, take such steps as the Lender may reasonably request for Borrower (i) to obtain an
acknowledgment, in form and substance reasonably satisfactory to Lender, of any bailee having possession of any of the Collateral, that such bailee holds such Collateral for the Lender, (ii) to obtain control of any investment property, deposit
accounts, letter-of-credit rights or electronic chattel paper (as such terms are defined in Revised Article 9) as set forth in Revised Article 9, and, where control is established by written agreement, such agreement shall be in form and substance
reasonably satisfactory to Lender, and (iii) otherwise to insure the continued perfection and priority of Lender’s security interest in any of the Collateral and of the preservation of its rights therein, whether in anticipation of or following
the effectiveness of Revised Article 9 in any applicable jurisdiction. 
  
 (d) Savings Clause. Nothing contained in this Section 2 shall be construed to narrow the scope of Lender’s security interest in any of the Collateral or the perfection or priority thereof or to impair or
otherwise limit any of the rights, powers, privileges or remedies of Lender, except (and then only to the extent) as mandated by Revised Article 9, if applicable in a particular jurisdiction. 
  
 3. Secured Indebtedness. The security interest granted hereby
shall secure the prompt payment of the Obligations (as defined in the Loan Agreement) and the prompt performance of each of the covenants and duties under the Loan Documents (as defined in the Loan Agreement). 
  

 3 

 4. Representations and Warranties of Borrower. Borrower represents, warrants and agrees as
follows: 
  
 (a) Except as set forth on Schedule
4(a) hereto (the “Permitted Encumbrances”), Borrower is the owner of the Collateral free and clear of any liens and security interests. Borrower will defend the Collateral against the claims and demands of all persons other than the
holders of the Permitted Encumbrances. 
  
 (b)
The address set forth on Schedule 4(b) hereto is Borrower’s principal place(s) of business and the location of all tangible Collateral and the place where the records concerning all intangible Collateral are kept and/or maintained. 

 
 (c) Borrower will pay all costs of filing of financing,
continuation and termination statements with respect to the security interests created hereby, and Lender is authorized to do all things that it deems necessary to perfect and continue perfection of the security interests created hereby and to
protect the Collateral. 
  
 5. Agreements With Respect to
the Collateral. Borrower covenants and agrees with Lender as follows: 
  
 (a) Borrower will not permit any of the Collateral to be removed from the location specified herein, except for temporary periods in the normal and customary use thereof, without the prior written consent of Lender.
Notwithstanding the foregoing, so long as an Event of Default has not occurred, Borrower shall have the right to process and sell Borrower’s Inventory in the regular course of business. 
  
 (b) Borrower shall notify Lender in writing of any change in
the location of Borrower’s principal place of business or the location of any tangible Collateral or the place(s) where the records concerning all intangible Collateral are kept or maintained. 
  
 (c) Borrower will keep the Collateral in good condition and
repair and will pay and discharge all taxes, levies and other impositions levied thereon as well as the cost of repairs to or maintenance of same, and will not permit anything to be done that may impair the value of any of the Collateral. If
Borrower fails to pay such sums, Lender may do so for Borrower’s account and add the amount thereof to the Obligations. 
  
 (d) Until the occurrence of an Event of Default, Borrower shall be entitled to possession of the Collateral and to use the same in any
lawful manner, provided that such use does not cause excessive wear and tear to the Collateral, cause it to decline in value at an excessive rate, or violate the terms of any policy of insurance thereon. 
  
 (e) Borrower will not sell, exchange, lease or otherwise
dispose of any of the Collateral or any interest therein without the prior written consent of Lender. Notwithstanding the foregoing, so long as an Event of Default has not occurred, Borrower shall have the right to process and sell Borrower’s
Inventory in the regular course of business. Lender’s security interest hereunder shall attach to all proceeds of all sales or other dispositions of the Collateral. If at any time any such proceeds shall be represented by any instruments,
chattel paper or documents of title, then such instruments, chattel paper or documents of title shall be promptly 

  

 4 

 
delivered to Lender and subject to the security interest granted hereby. If at any time any of Borrower’s inventory is represented by any document of
title, such document of title will be delivered promptly to Lender and subject to the security interest granted hereby. 
  
 (f) Borrower will not allow the Collateral to be attached to real estate in such manner as to become a fixture or a part of any real
estate. 
  
 (g) Borrower will at all times keep
the Collateral insured against all insurable hazards in amounts equal to the full cash value of the Collateral. Such insurance shall be in such companies as may be acceptable to Lender, with provisions satisfactory to Lender for payment of all
losses thereunder to Lender as its interests may appear. If required by Lender, Borrower shall deposit the policies with Lender. Any money received by Lender under said policies may be applied to the payment of the Obligations, whether or not due
and payable, or at Lender’s option may be delivered by Lender to Borrower for the purpose of repairing or restoring the Collateral. Borrower assigns to Lender all right to receive proceeds of insurance not exceeding the amounts secured hereby,
directs any insurer to pay .all proceeds directly to Lender, and appoints Lender Borrower’s attomey-in-fact to endorse any draft or check made payable to Borrower in order to collect the benefits of such insurance. If Borrower fails to keep the
Collateral insured as required by Lender, Lender shall have the right to obtain such insurance at Borrower’s expense and add the cost thereof to the Obligations. 
  
 (h) Borrower will not permit any liens or security interests other than those created by this Agreement and
the Permitted Encumbrances to attach to any of the Collateral, nor permit any of the Collateral to be levied upon under any legal process, nor permit anything to be done that may impair the security intended to be afforded by this Agreement, nor
permit any tangible Collateral to become attached to or commingled with other goods without the prior written consent of Lender. 
  
 6. Remedies Upon Default. Upon an Event of Default under and as defined in the Loan Agreement, Lender may pursue any or all of the following
remedies, without any notice to Borrower except as required below: 
  
 (a) Lender may give written notice of default to Borrower, following which Borrower shall not dispose of, conceal, transfer, sell or encumber any of the Collateral (including, but not limited to, cash proceeds)
without Lender’s prior written consent, even if such disposition is otherwise permitted hereunder in the ordinary course of business. Any such disposition, concealment, transfer or sale after the giving of such notice shall constitute a
wrongful conversion of the Collateral. Lender may obtain a temporary restraining order or other equitable relief to enforce Borrower’s obligation to refrain from so impairing Lender’s Collateral. 
  
 (b) Lender may take possession of any or all of the
Collateral. Borrower hereby consents to Lender’s entry into any of Borrower’s premises to repossess Collateral, and specifically consents to Lender’s forcible entry thereto as long as Lender causes no significant damage to the
premises in the process of entry (drilling of locks, cutting of chains and the like do not in themselves cause “significant” damage for the purposes hereof) and provided that Lender accomplishes such entry without a breach of the peace.

  

 5 

 (c) Lender may dispose of the Collateral at private or public sale. Any required notice
of sale shall be deemed commercially reasonable if given at least five days prior to sale. Lender may adjourn any public or private sale to a different time or place without notice or publication of such adjournment, and may adjourn any sale either
before or after offers are received. The Collateral may be sold in such lots as Lender may elect, in its sole discretion. Lender may take such action as it may deem necessary to repair, protect, or maintain the Collateral pending its disposition.

  
 (d) Lender may recover any or all proceeds of
accounts from any bank or other custodian who may have possession thereof. Borrower hereby authorizes and directs all custodians of Borrower’s assets to comply with any demand for payment made by Lender pursuant to this Agreement, without the
need of confirmation from Borrower and without . making any inquiry as to the existence of an Event of Default or any other matter. Lender may engage a collection agent to collect accounts for a reasonable percentage commission or for any other
reasonable compensation arrangement. 
  
 (e)
Lender may notify any or all account debtors that subsequent payments must be made directly to Lender or its designated agent. Such notice may be made over Lender’s signature or over Borrower’s name with no signature or both, in
Lender’s discretion. Borrower hereby authorizes and directs all existing or future account debtors to comply with any such notice given by Lender, without the need of confirmation from Borrower and without making any inquiry as to the existence
of an Event of Default or as to any other matter. 
  
 (f) Lender may, but shall not be obligated to, take such measures as Lender may deem necessary in order to collect any or all of the accounts. Without limiting the foregoing, Lender may institute any administrative or judicial action that
it may deem necessary in the course of collecting and enforcing any or all of the accounts. Any administrative or judicial action or other action taken by Lender in the course of collecting the accounts may be taken by Lender in its own name or in
Borrower’s name. Lender may compromise any disputed claims and may otherwise enter into settlements with account debtors or obligors under the accounts, which compromises or settlements shall be binding upon Borrower. Lender shall have no duty
to pursue collection of any account, and may abandon efforts to collect any account after such efforts are initiated. 
  
 (g) Lender may, with respect to any account involving uncompleted performance by Borrower, and with respect to any general intangible or
other Collateral whose value may be preserved by additional performance on Borrower’s part, take such action as Lender may deem appropriate including, but not limited, to performing or causing the performance of any obligation of Borrower
thereunder, the making of payments to prevent defaults thereunder, and the granting of adequate assurances to other parties thereto with respect to future performance. Lender’s action with respect to any such accounts or general intangibles
shall not render Lender liable for further performance thereunder unless Lender so agrees in writing. 
  
 (h) Lender may exercise its hen upon and right of setoff against any monies, items, credits, deposits or instruments that Lender may have
in its possession and that belong to Borrower or to any other person or entity liable for the payment of any or all of the Obligations. 
  

 6 

 (i) Lender may exercise any right that it may have under any other document evidencing or
securing the Obligations or otherwise available to Lender at law or equity. 
  
 7. Audits and Examinations. Lender shall have the right, at any time, by its own auditors, accountants or other agents, to examine or audit any of the books and records of Borrower, or the Collateral,
all of which will be made available upon request. Such accountants or other representatives of Lender will be permitted to make any verification of the existence of the Collateral or accuracy of the records that Lender deems necessary or proper. Any
reasonable expenses incurred by Lender in making such examination, inspection, verification or audit shall be paid by Borrower promptly on demand and shall constitute part of the Obligations. 
  
 8. Termination Statement. Following the payment in full of the
Obligations and termination of any commitment of Lender to make any future advances to Borrower, Lender shall send a termination statement with respect to any financing statement filed to perfect Lender’s security interests in any of the
Collateral to Borrower or cause such termination statement to be filed with the appropriate filing officer(s). 
  
 9. Power of Attorney. Borrower hereby constitutes Lender or its designee, as Borrower’s attomey-in-fact with power, upon the occurrence
and during the continuance of an Event of Default, to endorse Borrower’s name upon any notes, acceptances, checks, drafts, money orders, or other evidences of payment or Collateral that may come into either its or Lender’s possession; to
sign the name of Borrower on any invoice or bill of lading relating to any of the accounts receivable, drafts against customers, assignments and verifications of accounts receivable and notices to customers; to send verifications of accounts
receivable; to notify the Post Office authorities to change the address for delivery of mail addressed to Borrower to such address as Lender may designate; to execute any of the documents referred to in Section 4(c) hereof in order to perfect and/or
maintain the security interests and liens granted herein by Borrower to Lender; to do all other acts and things necessary to carry out the purposes of and remedies provided under this Agreement. All acts of said attorney or designee are hereby
ratified and approved, and said attorney or designee shall not be liable for any acts of commission or omission (other than acts of gross negligence or willful misconduct), nor for any error of judgment or mistake of fact or law. This power, being
coupled with an interest is irrevocable until all of the Obligations are paid in full and any and all promissory notes executed in connection therewith are terminated and satisfied. 
  
 10. Binding Effect. This Agreement shall inure to the benefit of Lender’s successors and assigns and
shall bind Borrower’s heirs, representatives, successors and assigns. 
  
 11. Severability. If any provision of this Agreement is held invalid, such invalidity shall not affect the validity or enforceability of the remaining provisions of this Agreement. 
  
 12. Governing Law and Amendments. This Agreement shall be
construed and enforced under the laws of the State of Tennessee applicable to contracts to be wholly performed in such State. No amendment or modification hereof shall be effective except in a writing executed by each of the parties hereto.

  

 7 

 13. Survival of Representations and Warranties. All representations and warranties
contained herein or made by or furnished on behalf of Borrower in connection herewith shall survive the execution and delivery of this Agreement. 
  
 14. Counterparts. This Agreement may be executed in any number of counterparts and by different parties to this Agreement in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same Agreement. 
  
 15. Construction and Interpretation. Should any provision of this Agreement require judicial interpretation, the parties hereto agree that
the court interpreting or construing the same shall not apply a presumption that the terms hereof shall be more strictly construed against one party by reason of the rule of construction that a document is to be more strictly construed against the
party that itself or through its agent prepared the same, it being agreed that Borrower, Lender and their respective agents have participated in the preparation hereof. 
  
 16. Consent to Jurisdiction; Exclusive Venue. Borrower hereby irrevocably consents to the Jurisdiction of the
United States District Court for the Middle District of Tennessee and of all Tennessee state courts sitting in Davidson County, Tennessee, for the purpose of any litigation to which Lender may be a party and which concerns this Agreement or the
Obligations. It is further agreed that venue for any such action shall lie exclusively with courts sitting in Davidson County, Tennessee, unless Lender agrees to the contrary in writing. 
  
 17. Waiver of Trial by Jury. LENDER AND BORROWER
HEREBY KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COUNSEL WAIVE TRIAL
BY JURY IN ANY ACTIONS, PROCEEDINGS, CLAIMS OR COUNTER-CLAIMS, WHETHER
IN CONTRACT OR TORT OR OTHERWISE, AT LAW OR IN EQUITY, ARISING
OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT OR THE
LOAN DOCUMENTS. 
  
 18.
Notice. Any notice under this Agreement shall be made in accordance with the terms of the Loan Agreement. 
  

 8 

 IN WITNESS WHEREOF, Borrower and Lender have executed this Agreement, or have caused this Agreement to be
executed as of the date first above written. 
  

			
	BORROWER:
	
	 TEAMM PHARMACEUTICALS, INC., a
 Delaware
corporation

		
	By:	 	 /s/ Martin G. Baum

	 	 	 Martin G. Baum

	 	 	 President and Chief Executive Officer

			
	
	LENDER:
	
	 HARBINGER MEZZANINE PARTNERS,
 L.P., a
Delaware limited partnership

			
		
	By:	 	Harbinger Mezzanine GP, LLC, its
General Partner

  

					
			
	 	 	 By:
	 	Harbinger Mezzanine Manager, Inc.,
its Manager

							
			
	 	 	 By:
	 	 /s/ John C. Harrison

	 	 	 Title:
	 	 Director

  

 9 

  
 SCHEDULE
3(a) 
  
 PERMITTED
ENCUMBRANCES 
  
 None. 
  

  
 SCHEDULE
3(b) 
  
 PRINCIPAL
PLACE(S) OF BUSINESS 
 AND
LOCATION(S) OF COLLATERAL 
  
 TEAMM Pharmaceuticals, Inc. 
 3000 Aerial Center Parkway, Suite 110 
 Morrisville, NC 27560 
  
 DDN/Obergfel LLC 
 4880 Mendenhall Road 
 Memphis, TN 38141 
  

 FIRST AMENDMENT TO LOAN
AGREEMENT 
 AND LOAN DOCUMENTS 
  
 THIS FIRST AMENDMENT TO LOAN AGREEMENT AND LOAN DOCUMENTS
(“Amendment”) dated as of 24th day of March, 2005, is made and entered into on the terms and conditions
hereinafter set forth, by and between TEAMM PHARMACEUTICALS, INC., a Florida corporation and successor by merger to TEAMM Pharmaceuticals, Inc., Delaware corporation (“Borrower”) and HARBINGER MEZZANINE PARTNERS, L.P., a Delaware limited
partnership (“Lender”). 
  
 RECITALS: 
  
 WHEREAS, on August 9, 2002 Lender made a term loan (the “Loan”) in the principal amount of $5,000,000 to TEAMM Pharmaceuticals, Inc., a Delaware corporation (“Delaware TEAMM”) pursuant to that certain Loan Agreement
dated August 9, 2002 by and between Delaware TEAMM and Lender, as it may be amended, modified or extended from time to time (the “Loan Agreement”); and 
  
 WHEREAS, pursuant to an Agreement of Merger and Plan of Reorganization dated January 8, 2003, by and among Accentia
Biopharmaceuticals, Inc. (“Accentia”), Delaware TEAMM, and certain others, Delaware TEAMM and Borrower merged; 
  
 WHEREAS, pursuant to the terms of the Loan Agreement Borrower is required to maintain and satisfy certain financial covenants; 
  
 WHEREAS, Borrower has requested and Lender has agreed to waive compliance
with certain financial covenants under the Loan Agreement until the calendar quarter ending September 30, 2005 as set forth in this Amendment; 
  
 WHEREAS, Borrower has offered to buy and Lender has agreed to sell that certain Stock Purchase Warrant dated August 9, 2002 issued by Borrower in favor of
Lender (the “Warrant”) for $2,000,000 with the purchase price being paid by adding such amount to the outstanding principal balance of the Note which shall be amended and restated on the date hereof pursuant to a promissory note in the
form attached hereto as Exhibit A (as amended and restated, the “New Note”); 
  
 WHEREAS, Borrower has requested and Lender has agreed to modify the payment terms of the Note as evidenced by the New Note; and 
  

WHEREAS, this Amendment shall amend the Loan Documents. 
  

 AGREEMENT: 
  
 NOW, THEREFORE, in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower and Lender hereby agree as follows: 
  
 1. Capitalized terms used herein but not otherwise defined shall have the meanings ascribed thereto in the Loan Agreement. 
  
 2. Borrower shall pay to Lender all expenses of Lender incurred in connection
with this Amendment, including legal fees and expenses. 
  
 3.
Lender hereby waives Borrower’s compliance with the financial covenants set forth in Section 3.20 of the Loan Agreement until the calendar quarter ending September 30, 2005. 
  
 4. Lender acknowledges and agrees that (a) upon the execution and delivery of this Amendment, to its knowledge, the Loan
Agreement is current and in good standing and (b) Lender will execute and deliver to Accentia the Agreement and Waiver attached hereto as Exhibit B. 
  
 5. The waiver by Lender as set forth in Section 3 hereof is subject to Borrower’s delivery to Lender of the Closing Documents as provided in Section
12 hereof. 
  
 6. Borrower warrants and represents that (a) the
Loan Documents are valid, binding and enforceable against Borrower and Accentia, as applicable according to their terms, subject to principles of equity and laws applicable to the rights of creditors generally, including bankruptcy laws, (b)
following the execution and delivery of this Amendment, no default or Event of Default presently exists under the Loan Documents and (c) following the execution and delivery of this Amendment, to the knowledge of Borrower no condition presently
exists which, with the giving of notice, the passing of time, or both, would cause such a default or Event of Default. Borrower further acknowledges that Borrower’s obligations evidenced by the Loan Documents are not subject to any
counterclaim, defense or right of setoff. 
  
 7. The terms
“Loan Document” and “Loan Documents” as defined in the Loan Agreement are amended to include this Amendment and the term “Note” as defined in the Loan Agreement is amended to include the New Note. 
  
 8. Borrower acknowledges and agrees that the New Note is secured and further
evidenced by the Loan Documents. 
  
 9. This Amendment may be
executed in any number of counterparts and by different parties to this Amendment in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same Amendment.

  
 10. Borrower and Lender hereby amend the Warrant as follows:
(a) the term “Put Period” shall be amended to commence on the date of this Amendment; (b) the term “Put Price” 

  

 - 2 - 

 
shall be amended to mean $2,000,000; and (c) to specify that the Put Price shall be paid by adding the Put Price to the outstanding principal amount due
under the Note. 
  
 11. Lender hereby puts and sells the Warrant
to Borrower and Borrower hereby agrees to redeem and purchase the Warrant and pay the Put Price by the execution and delivery of the New Note. Upon the execution and delivery of this Amendment and the delivery of the fully executed Closing
Documents, the Warrant shall be terminated and Lender shall have no continuing rights there under including, without limitation, Lender shall have no (a) right to purchase (including but not limited to any first right of refusal or preemptive right)
any capital stock of Accentia or Borrower and (b) right to participate (or require or demand participation) in any registration statement filed by Accentia or Borrower with the SEC or any state securities department. In exercising the put under the
Warrant, Lender has relied upon its right of inspection of the books and records of Accentia and Borrower including the right to ask all questions of the officers and directors of Accentia and Borrower. Further Lender has been advised of and has had
full right of inquiry regarding the registration statement and underwriting proposed by Accentia. 
  
 12. This Amendment shall close on March 24, 2005, at the offices of Lender (the “Closing”). At the Closing of this Amendment the following
documents shall be delivered (the “Closing Documents”). 
  
 (a) Borrower and Accentia shall deliver. 
  
 (i) An opinion of Borrower’s and Accentia’s general counsel, Samuel Duffey, dated the date of the Amendment, in form and substance satisfactory to Lender’s counsel, Miller & Martin PLLC. 

 
 (ii) A Guaranty Agreement in the form of Exhibit C
executed by Accentia, in form and substance satisfactory to Lender. 
  
 (iii) Copies of the corporate charter or articles of incorporation and other publicly filed organizational documents of Borrower and Accentia, certified by the Secretary of State or other appropriate public official
in the jurisdiction in which Borrower and Accentia are incorporated. 
  
 (iv) Certified (as of the date of this Agreement) copies of all corporate action taken by Borrower and Accentia, including resolutions of their Boards of Directors, authorizing the execution, delivery and performance
of this Amendment, the New Note and the Guaranty. 
  
 (v) The New Note. 
  
 (vi) Such other
documents and instruments as Lender may reasonably request. 
  

 - 3 - 

 (b) At the Closing Lender shall deliver the following documents to Accentia and Borrower.

  
 (i) The original Warrant marked
“Cancelled,” together with an Assignment document for the Warrant. 
  
 (ii) A fully executed Agreement and Waiver in the form of Exhibit B. 
  
 13. Except as modified and amended hereby, the Loan Documents shall remain in full force and effect. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 - 4 - 

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment, or have caused this Amendment to be
executed by their duly authorized officers, as of the day and year first above written. 
  

			
	BORROWER:
	
	 TEAMM PHARMACEUTICALS, INC.

		
	By:	 	 /s/ James McNulty

	 Title:
	 	 Asst. Secretary

  

					
	LENDER:
	
	 HARBINGER MEZZANINE PARTNERS,
 L.P., a
Delaware limited partnership

		
	By:	 	 Harbinger Mezzanine GP, LLC, its
 General
Partner

			
	 	 	 By:
	 	 Harbinger Mezzanine Manager, Inc.,
 its Manager

			
	 	 	 By:
	 	 /s/ John C. Harrison

	 	 	 Title:
	 	 Director

  

			
	ACKNOWLEDGED AND AGREED TO:
	
	 ACCENTIA BIOPHARMACEUTICALS, INC.

		
	By:	 	 /s/ Francis E. O’Donnell

	 Title:
	 	 Chairman & CEO

  

					
	 	 	 Signature Page
	 	 First Amendment to Loan Agreement
 and Loan Documents

 EXHIBIT A 
  
 FORM OF PROMISSORY NOTE 
  

 AMENDED AND RESTATED 
 SECURED PROMISSORY NOTE 
  

			
	$7,000,000	 	March 24, 2005

  
 FOR VALUE RECEIVED,
the undersigned, TEAMM PHARMACEUTICALS, INC., a Delaware corporation (“Maker”), promises to pay to the order of HARBINGER MEZZANINE PARTNERS, L.P., a Delaware limited partnership (“Payee”; Payee and any subsequent holder[s]
hereof are hereinafter referred to collectively as “Holder”), at the office of Payee at Harbinger Mezzanine Partners, L.P., One Riverchase Parkway South, Birmingham, Alabama 35244, or at such other place as Holder may designate to Maker in
writing from time to time, the principal sum of SEVEN MILLION AND NO/100THS DOLLARS ($7,000,000.00), together with interest on the outstanding principal balance hereof from the date hereof at the rate of thirteen and one-half percent (13.5%) per
annum (computed on the basis of a 360-day year). This Note amends and restates and increases the principal amount that certain Secured Promissory Note dated August 9, 2002 in the original principal amount of $5,000,000 (the “Original
Note”). The increase of the principal amount of the Original Note by $2,000,000 represents the purchase price of that certain Stock Purchase Warrant dated August 9, 2002 issued by Maker in favor of Holder, which Maker is redeeming and
purchasing from Holder on the date hereof. This Note does not constitute a novation of the Original Note. 
  
 Interest only on the outstanding principal balance hereof shall be due and payable monthly, in arrears, with the first installment being payable on the
first (1st) day of April, 2005, and subsequent installments being payable on the first (1st) day of each succeeding month thereafter until June 30, 2006 (the “Maturity Date”), at which time the entire outstanding principal balance,
together with all accrued and unpaid interest, shall be immediately due and payable in full. In the event Maker successfully completes an initial public offering of its capital stock (“IPO”) on or before the date that is 30 days prior to
the Maturity Date, a principal payment in the amount of TWO MILLION AND NO/100THS DOLLARS ($2,000,000.00) shall be due and payable on the date that is 30 days after the IPO. 
  
 The indebtedness evidenced hereby may be prepaid in whole or in part, at any time and from time to time, without premium or
penalty. Any such prepayments shall be credited first to any accrued and unpaid interest and then to the outstanding principal balance hereof. 
  
 Time is of the essence of this Note. It is hereby expressly agreed that in the event that any Event of Default shall occur under and as defined in that
certain Loan Agreement of even date herewith, between Maker and Payee (together with any amendments thereto, the “Loan Agreement”), which Event of Default is not cured following the giving of any applicable notice and within any applicable
cure period set forth in the Loan Agreement, then, and in such event, the entire outstanding principal balance of the indebtedness evidenced hereby, together with any other sums advanced hereunder, under the Loan Agreement and/or under any other
instrument or document now or hereafter evidencing, securing or in any way relating to the indebtedness evidenced hereby, together with all unpaid interest accrued thereon, shall, at the option of Holder and without notice to Maker, at once become
due and payable and may be collected forthwith, regardless of the stipulated date of maturity. Upon the occurrence of any Event of Default as set 

  

 
forth herein, at the option of Holder and without notice to Maker, all accrued and unpaid interest, if any, shall be added to the outstanding principal
balance hereof, and the entire outstanding principal balance, as so adjusted, shall bear interest thereafter until paid at an annual rate (the “Default Rate”) equal to the lesser of (i) the rate that is seven percentage points (7.0%) in
excess of the above-specified interest rate, or (ii) the maximum rate of interest allowed to be charged under applicable law (the “Maximum Rate”), regardless of whether or not there has been an acceleration of the payment of principal as
set forth herein. All such interest shall be paid at the time of and as a condition precedent to the curing of any such Event of Default. 
  
 In the event this Note is placed in the hands of an attorney for collection, or if Holder incurs any costs incident to the collection of the indebtedness
evidenced hereby, Maker and any endorsers hereof agree to pay to Holder an amount equal to all such costs, including without limitation all reasonable attorneys’ fees and all court costs. 
  
 Presentment for payment, demand, protest and notice of demand, protest and
nonpayment are hereby waived by Maker and all other parties hereto. No failure to accelerate the indebtedness evidenced hereby by reason of an Event of Default hereunder, acceptance of a past-due installment or other indulgences granted from time to
time, shall be construed as a novation of this Note or as a waiver of such right of acceleration or of the right of Holder thereafter to insist upon strict compliance with the terms of this Note or to prevent the exercise of such right of
acceleration or any other right granted hereunder or by applicable law. No extension of the time for payment of the indebtedness evidenced hereby or any installment due hereunder, made by agreement with any person now or hereafter liable for payment
of the indebtedness evidenced hereby, shall operate to release, discharge, modify, change or affect the original liability of Maker hereunder or that of any other person now or hereafter liable for payment of the indebtedness evidenced hereby,
either in whole or in part, unless Holder agrees otherwise in writing. This Note may not be changed orally, but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification or discharge is sought.

  
 The indebtedness and other obligations evidenced by this Note
are further evidenced by (i) the Loan Agreement and (ii) certain other instruments and documents, as may be required to protect and preserve the rights of Maker and Payee, as more specifically described in the Loan Agreement. 
  
 All agreements herein made are expressly limited so that in no event
whatsoever, whether by reason of advancement of proceeds hereof, acceleration of maturity of the unpaid balance hereof or otherwise, shall the amount paid or agreed to be paid to Holder for the use of the money advanced or to be advanced hereunder
exceed the Maximum Rate. If, from any circumstances whatsoever, the fulfillment of any provision of this Note or any other agreement or instrument now or hereafter evidencing, securing or in any way relating to the indebtedness evidenced hereby
shall involve the payment of interest in excess of the Maximum Rate, then, ipso facto, the obligation to pay interest hereunder shall be reduced to the Maximum Rate; and if from any circumstance whatsoever, Holder shall ever receive
interest, the amount of which would exceed the amount collectible at the Maximum Rate, such amount as would be excessive interest shall be applied to the reduction of the principal balance remaining unpaid hereunder and not to the payment of
interest. This provision shall control every other provision in any and all other agreements and instruments existing or hereafter arising between Maker and Holder with respect to the indebtedness evidenced hereby. 
  

 - 2 - 

 This Note is intended as a contract under and shall be construed and enforceable in accordance with the
laws of the State of Tennessee, except to the extent that federal law maybe applicable to the determination of the Maximum Rate. 
  
 Maker hereby irrevocably consents to the jurisdiction of the United States District Court for the Middle District of Tennessee and of all Tennessee state
courts sitting in Davidson County, Tennessee, for the purpose of any litigation to which Lender may be a party and which concerns this Note or the indebtedness evidenced hereby. It is further agreed that venue for any such action shall lie
exclusively with courts sitting in Davidson County, Tennessee, unless Holder agrees to the contrary in writing. 
  
 HOLDER AND MAKER HEREBY KNOWINGLY AND VOLUNTARILY
WITH THE BENEFIT OF COUNSEL WAIVE TRIAL BY JURY IN ANY ACTIONS,
PROCEEDINGS, CLAIMS OR COUNTER-CLAIMS, WHETHER IN CONTRACT OR TORT OR
OTHERWISE, AT LAW OR IN EQUITY, ARISING OUT OF OR IN ANY
WAY RELATING TO THIS AGREEMENT OR THE LOAN DOCUMENTS. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 - 3 - 

 As used herein, the terms “Maker” and “Holder” shall be deemed to include their
respective successors, legal representatives and assigns, whether by voluntary action of the parties or by operation of law. 
  

			
	MAKER:
	
	TEAMM PHARMACEUTICALS, INC., a Delaware corporation
		
	By:	 	 /s/ Martin G. Baum

	 	 	 Martin G. Baum

	 	 	 President and Chief Executive Officer

  

					
	 	 	 Signature Page
	 	 Amended and Restated Secured Promissory
 Note–TEAMM Pharmaceuticals, Inc.

 EXHIBIT B 
  
 AGREEMENT AND WAIVER 
  

 AGREEMENT AND WAIVER 
  
 THIS AGREEMENT AND WAIVER (this “Agreement”) is entered into as of
March 24th, 005, by and between HARBINGER MEZZANINE PARTNERS, L.P., a Delaware limited partnership
(“Harbinger”), and ACCENTIA BIOPHARMACEUTICALS, INC., a Florida corporation (the “Company”). 
  
 WHEREAS, the Company is proposing to undertake an initial public offering of its common stock, par value $.01 per share (the “Offering”).

  
 WHEREAS, Harbinger holds a warrant to purchase shares of
Series D Convertible Preferred Stock of the Company. 
  
 WHEREAS,
in connection with the Offering, the Company and Harbinger desire to enter into certain waivers and agreements, as set forth herein. 
  
 WHEREAS, Harbinger, the Company and TEAMM Pharmaceuticals, Inc. have entered into the First Amendment To Loan Agreement and Loan Documents dated on the
date hereof (the “Amendment”). 
  
 NOW, THEREFORE, for
good and valuable consideration, including the pursuit of the Offering by the Company, the Company and Harbinger hereby agree as follows: 
  
 1. Exercise of Put Rights. Reference is hereby made to that certain Stock Purchase Warrant, dated August 9, 2002, originally entered into
between Harbinger and TEAMM Pharmaceuticals, Inc. (the “Warrant”). On the date hereof Harbinger exercised its Put rights under the Warrant and as a result thereof has no rights in, to or under the Warrant. Further, Harbinger has no other
right or entitlement (including but not limited any warrant, option, conversion right, preemptive right or other agreement) to purchase any shares of the Company or TEAMM capital stock (including but not limited to shares of Series D Preferred stock
and shares of common stock). 
  
 2. Estoppel.
Immediately prior to the closing of the Amendment, the outstanding principal and interest owing to Harbinger under that certain secured promissory note, dated August 9, 2002, was (a) principal amount of $5,000,000 and (b) accrued interest of
$                    . 
  
 3. Waiver of Rights Granted by Warrant. Upon the closing of the Amendment, Harbinger hereby irrevocably waives any registration rights it
may have had under the Warrant, and irrevocably and permanently waives any right that it may have had under the Warrant to require the Company to purchase any securities including shares issuable pursuant to the Warrant. Upon the closing of the
Amendment, the provisions of the Warrant shall be deemed to be terminated. 
  

 4. Acknowledgment of PPD Rights. Harbinger hereby acknowledges that the Company and
Pharmaceutical Product Development, Inc. (“PPD”) have entered into a Amended and Restated Investors’ Rights Agreement, dated January 7, 2005 (the “Amended PPD Agreement”), pursuant to which the Company has granted to
PPD certain additional registration rights with respect to the shares of Company common stock issuable upon the conversion of 5 million shares of Series E Convertible Preferred Stock of the Company held by PPD as of January 7, 2005 (the “PPD
Shares”). Specifically, Harbinger acknowledges that the Amended PPD Agreement will permit PPD to include the PPD Shares in the Company’s registration statement for the Offering and resell the PPD Shares as a part of the Offering up to
maximum aggregate gross proceeds of $12,000,000. Upon the closing of the Amendment, Harbinger hereby waives the applicability of Section 11(c) of the Warrant to the extent that the provisions of the Amended PPD Agreement would require the consent of
Harbinger under said Section 11(c), and Harbinger hereby consents to the grant of the additional registration rights included in the Amended PPD Agreement. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 - 2 - 

 IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the date first above written.

  

					
	 HARBINGER MEZZANINE PARTNERS,
 L.P., a
Delaware limited partnership

		
	By:	 	Harbinger Mezzanine GP, LLC, its General Partner
			
	 	 	By:	 	Harbinger Mezzanine Manager, Inc., its Manager
			
	 	 	By:	 	 /s/ John C. Harrison

	 	 	 Title:
	 	 Director

  

					
	 	 	Signature Page	 	Agreement and Waiver

 ASSIGNMENT 
  
 For and in consideration of the issuance of the Amended and Revised Secured Promissory Note in payment of $2,000,000, the
undersigned hereby assigns to TEAMM Pharmaceuticals, Inc., a Florida corporation and successor by merger to TEAMM Pharmaceuticals, Inc., Delaware corporation, that certain Stock Purchase Warrant dated August 9, 2002 issued by TEAMM Pharmaceuticals,
Inc., a Delaware corporation, in favor of Harbinger Mezzanine Partners, L.P. and agrees that Teamm Pharmaceuticals, Inc. and its parent corporation, Accentia Biopharmaceuticals, Inc. may cancel that certain Stock Purchase Warrant. 
  

					
	 HARBINGER MEZZANINE PARTNERS,
 L.P., a
Delaware limited partnership

		
	By:	 	Harbinger Mezzanine GP, LLC, its General Partner
			
	 	 	By:	 	Harbinger Mezzanine Manager, Inc., its Manager
			
	 	 	By:	 	 /s/ John C. Harrison

	 	 	 Title:
	 	 Director

  
 Dated: March
      , 2005 
  

 EXHIBIT C 
  
 FORM OF GUARANTY AGREEMENT 
  

 GUARANTY AGREEMENT 
  
 THIS GUARANTY AGREEMENT (“Guaranty”), dated March 24, 2005, is made
and entered into upon the terms hereinafter set forth, by ACCENTIA BIOPHARMACEUTICALS, INC., a Florida corporation (“Guarantor”), in favor of HARBINGER MEZZANINE PARTNERS, L.P., a Delaware limited partnership with principal offices in
Nashville, Tennessee (“Lender”). 
  
 RECITALS: 
  
 WHEREAS, pursuant to a Loan Agreement dated August 9, 2002 by and between TEAMM Pharmaceuticals, Inc., a Florida corporation and successor by merger to TEAMM Pharmaceuticals, Inc., a Delaware corporation (“Borrower”), and Lender
(the “Loan Agreement”), Lender made a term loan to Borrower in the original principal amount of $5,000,000 (the “Loan”). The Loan is evidenced by Secured Promissory Notes of even date therewith, in the Loan amount, made and
executed by Borrower, payable to the order of Lender, (together with any extensions, modifications, renewals and/or replacements thereof, as the “Note”); 
  
 WHEREAS, Borrower has requested that Lender amend certain covenants in the Loan Agreement and Lender has agreed to make such
amendments; 
  
 WHEREAS, it is a condition of Lender’s
agreement to amend the Loan Agreement as evidenced by that certain First Amendment to Loan Agreement and Loan Documents of even date herewith by and between Borrower and Lender that Guarantor execute and deliver this Guaranty to Lender; and

  
 WHEREAS, Guarantor desires to execute and deliver this
Guaranty to Lender in order to induce Lender to amend the Loan Agreement, which will be to the direct interest, advantage and benefit of Guarantor. 
  
 AGREEMENT: 
  
 NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
and to induce Lender to make loans and other extensions of credit to Borrower pursuant to the Loan Agreement, Guarantor hereby agrees as follows: 
  
 1. Guarantor hereby guarantees to Lender the full and prompt payment and performance of (a) the indebtedness evidenced by the Note and any and all
interest accrued or to accrue thereon and (b) the obligations of Borrower to Lender pursuant to the Note, the Loan Agreement and any and all other instruments, documents and/or agreements now or hereafter further evidencing, securing or otherwise
related to the indebtedness evidenced by the Note (collectively the “Loan Documents”) (the aforesaid indebtedness and other obligations are sometimes herein collectively referred to as the “Guaranteed Obligations”). Guarantor
hereby 

  

 
agrees that if the Guaranteed Obligations are not timely paid and/or performed, as the case may be, in accordance with the terms thereof, Guarantor shall be
liable to immediately pay and/or perform such Guaranteed Obligations. If for any reason any payment or obligation in respect of the Guaranteed Obligations shall be determined at any time to be a voidable preference or otherwise shall be set aside or
required to be returned or repaid, this Guaranty nevertheless shall remain in full force and effect and shall be fully enforceable against Guarantor for the payment or obligation set aside, returned or repaid, as well as any other Guaranteed
Obligations still outstanding, notwithstanding the fact that this Guaranty may have been cancelled, released and/or returned to Guarantor by Lender. 
  
 2. In addition to the obligations of Guarantor to Lender pursuant to Section 1 hereof, Guarantor further agrees to pay any and all expenses
(including without limitation attorneys’ fees and expenses) reasonably incurred by Lender in endeavoring to collect and/or enforce the obligations of Guarantor under this Guaranty. 
  
 3. Guarantor hereby waives notice of any breach or default by Borrower, and hereby further waives presentment, demand,
notice of dishonor and protest with respect to any instrument now or hereafter evidencing any of the Guaranteed Obligations. 
  
 4. Any act of Lender consisting of a waiver of any of the terms, covenants or conditions of the Guaranteed Obligations, or the giving of any consent to
any matter or thing relating to the Guaranteed Obligations, or the granting of any indulgences or extensions of time to Borrower, may be done without notice to Guarantor and without releasing the obligations of Guarantor hereunder. 
  
 5. The obligations of Guarantor hereunder shall not be released by
Lender’s receipt, application or release of any security given for the payment, performance and observance of any of the Guaranteed Obligations. Similarly, the obligations of Guarantor hereunder shall not be released by any modification of any
of the terms of the Guaranteed Obligations made by Lender and Borrower, but in the case of any such modification, the liability of Guarantor shall be deemed modified in accordance with the terms of any such modification. 
  
 6. The liability of Guarantor hereunder shall in no way be affected by (a)
the release or discharge of Borrower in any creditors’ receivership, bankruptcy or other proceedings, (b) the impairment, limitation or modification of the liability of Borrower or the estate of Borrower in bankruptcy, or of any remedy for the
enforcement of any of the Guaranteed Obligations resulting from the operation of any present or future provision of the Federal bankruptcy law or any other statute or the decision of any court, (c) the rejection or disaffirmance of any instrument,
document or agreement evidencing any of the Guaranteed Obligations in any such proceedings, (d) the assignment or transfer of any of the Guaranteed Obligations by Lender, or (e) the cessation from any cause whatsoever of the liability of Borrower
with respect to the Guaranteed Obligations. 
  
 7. Until all of
the covenants, terms and conditions of Borrower with respect to the Guaranteed Obligations are fully paid, performed, kept and/or observed, Guarantor, (a) shall have no rights of reimbursement or subrogation against Borrower or any of its property
by reason of any payment or acts of performance by any Guarantor in compliance with the obligations of Guarantor hereunder, (b) waive any right to enforce any remedy that Guarantor 

  

 - 2 - 

 
now or hereafter shall have against Borrower by reason of any one or more payments or acts of performance in compliance with the obligations of Guarantor
hereunder, and (c) subordinate any liability or indebtedness of Borrower now or hereafter held by Guarantor to the obligations of Borrower to Lender under the Guaranteed Obligations. 
  
 8. This is a guaranty of payment and performance and not of collection. The liability of Guarantor hereunder shall be direct
and immediate and not conditional or contingent upon the pursuit of any remedies against Borrower or any other person, nor against any collateral available to Lender. Guarantor hereby waives any right to require that an action be brought against
Borrower or any other person or to require that resort be had to any collateral in favor of Lender prior to discharging its obligations hereunder. 
  
 9. Guarantor hereby consents and agrees that all payments and credits received from Borrower or Guarantor or realized from any collateral may be applied
by Lender to the Guaranteed Obligations in such priority as Lender in its sole judgment shall see fit. 
  
 10. In the event that Guarantor consists of more than one person or entity, the obligations of such Guarantor hereunder shall be joint and several, and
all references herein to “Guarantor” shall refer to each of said persons or entities jointly and severally. This Guaranty is assignable by Lender, and any assignment of the Guaranteed Obligations or any portion thereof by Lender shall
operate to vest in the assignee the rights and powers of Lender hereunder to the extent of such assignment. This Guaranty shall be binding upon Guarantor and Guarantor’s successors, successors-in-title and assigns, and shall inure to the
benefit of Lender, its successors, successors-in-title and assigns. 
  
 11. This Guaranty shall be construed in accordance with and governed by the laws of the State of Tennessee applicable to contracts to be performed within said State. No amendment or modification hereof shall be effective unless evidenced by
a writing signed by Guarantor and Lender. When used herein, the singular shall include the plural, and vice versa, and the use of any gender shall include all other genders, as appropriate. 
  
 12. Guarantor hereby waives notice of acceptance of this Guaranty by Lender.

  
 13. Guarantor hereby jointly and severally represents and
warrants to Lender that (a) this Guaranty constitutes the legal, valid and binding obligation of Guarantor enforceable against Guarantor in accordance with the terms hereof, subject to the limitations imposed by bankruptcy, insolvency, moratorium or
other similar laws affecting the rights of creditors generally or the application of general equitable principles; (b) the execution and delivery of this Guaranty and the performance by Guarantor of its obligations hereunder are within the
respective corporate or company power of Guarantor and have been duly-authorized by all necessary corporate or company action; (c) the execution and delivery of this Guaranty by Guarantor and the performance by Guarantor of its obligations hereunder
do not and will not violate, breach or constitute a default under any agreement binding on Guarantor or require the consent of any third party; and (d) Guarantor is duly-organized, validly existing and in good standing under the laws of its state of
incorporation or organization. 
  
 14. This Guaranty may be
executed in any number of counterparts and by different parties to this Guaranty in separate counterparts, each of which when so executed shall be 

  

 - 3 - 

 
deemed to be an original and all of which taken together shall constitute one and the same Guaranty. 
  
 15. Guarantor hereby irrevocably consents to the jurisdiction of the United
States District Court for the Middle District of Tennessee and of all Tennessee state courts sitting in Davidson County, Tennessee, for the purpose of any litigation to which Lender or Guarantor may be a party and which concerns this Guaranty
Agreement. It is further agreed that venue for any such action shall lie exclusively with courts sitting in Davidson County, Tennessee, unless Lender agrees to the contrary in writing. 
  
 16. LENDER AND GUARANTOR HEREBY KNOWINGLY
AND VOLUNTARILY, WITH THE BENEFIT OF COUNSEL, WAIVE TRIAL BY JURY IN
ANY ACTIONS, PROCEEDINGS, CLAIMS OR COUNTER-CLAIMS, WHETHER IN CONTRACT OR
TORT OR OTHERWISE, AT LAW OR IN EQUITY, ARISING OUT OF OR
IN ANY WAY RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS.

  
 [REMAINDER OF
PAGE INTENTIONALLY LEFT BLANK] 
  

 - 4 - 

 IN WITNESS WHEREOF, the undersigned Guarantor has executed this Guaranty, or have caused this Guaranty to
be executed by its duly authorized representative, as of the date first above written. 
  

			
	GUARANTOR:
	
	 ACCENTIA BIOPHARMACEUTICALS, INC.

		
	By:	 	 /s/ Francis E. O’Donnell

	 Title:
	 	 Chairman & CEO

  

					
	 AGREED AND ACCEPTED
 as of the day and year first above written.

	
	HARBINGER MEZZANINE PARTNERS, L.P., a Delaware limited partnership
		
	By:	 	Harbinger Mezzanine GP, LLC, its General Partner
			
	 	 	By:	 	Harbinger Mezzanine Manager, Inc., its Manager
			
	 	 	By:	 	 /s/ John C. Harrison

	 	 	 Title:
	 	 Director

  

					
	 	 	Signature Page	 	Guaranty Agreement

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