Document:

Issuing and Paying Agency Agreement dated as of September 29, 2007

 Exhibit 10.8 
 ISSUING AND PAYING AGENCY AGREEMENT 
 This Agreement, dated as of September 28, 2007, is by and
between Moody’s Corporation (the “Issuer”) and JPMorgan Chase Bank, National Association (“JPMorgan”). 
  

	1.	APPOINTMENT AND ACCEPTANCE 

 The Issuer hereby
appoints JPMorgan as its issuing and paying agent in connection with the issuance and payment of certain short-term promissory notes of the Issuer (the “Notes”), as further described herein, and JPMorgan agrees to act as such agent
upon the terms and conditions contained in this Agreement. 
  

	2.	COMMERCIAL PAPER PROGRAMS 

 The Issuer may
establish one or more commercial paper programs under this Agreement by delivering to JPMorgan a completed program schedule (the “Program Schedule”), with respect to each such program. JPMorgan has given the Issuer a copy of
the current form of Program Schedule and the Issuer shall complete and return its first Program Schedule to JPMorgan prior to or simultaneously with the execution of this Agreement. In the event that any of the information provided in, or attached
to, a Program Schedule shall change, the Issuer shall promptly inform JPMorgan of such change in writing. 
  

	3.	NOTES  

 All Notes issued by the Issuer under this
Agreement shall be short-term promissory notes, exempt from the registration requirements of the Securities Act of 1933, as amended, as indicated on the Program Schedules, and from applicable state securities laws. The Notes may be placed by dealers
(the “Dealers”) pursuant to Section 4 hereof. Notes shall be issued in either certificated or book-entry form. 
  

	4.	AUTHORIZED REPRESENTATIVES 

 The Issuer shall
deliver to JPMorgan a duly adopted corporate resolution from the Issuer’s Board of Directors (or other governing body) authorizing the issuance of Notes under each program established pursuant to this Agreement and a certificate of incumbency,
with specimen signatures attached, of those officers, employees and agents of the Issuer authorized to take certain actions with respect to the Notes as provided in this Agreement (each such person is hereinafter referred to as an
“Authorized Representative”). Until JPMorgan receives any subsequent incumbency certificates of the Issuer, JPMorgan shall be entitled to rely on the last incumbency certificate delivered to it for the purpose of determining the
Authorized Representatives. The Issuer represents and warrants that each Authorized Representative may appoint other officers, employees and agents of the Issuer (the “Delegates”), including without limitation any Dealers, to issue
instructions to JPMorgan under this Agreement, and take other actions on the Issuer’s behalf hereunder, provided that notice of the appointment of each Delegate is delivered to JPMorgan in writing. Each such appointment shall remain in effect
unless and until revoked by the Issuer in a written notice to JPMorgan. 
  

	5.	CERTIFICATED NOTES 

 If and when the Issuer intends
to issue certificated notes (“Certificated Notes”), the Issuer and JPMorgan shall agree upon the form of such Notes. Thereafter, the Issuer shall from time to time deliver to JPMorgan adequate supplies of Certificated Notes which
will be in bearer form, serially numbered, and shall be executed by the manual or facsimile signature of an Authorized Representative. JPMorgan will acknowledge receipt of any supply of Certificated Notes received from the Issuer, noting any
exceptions to the shipping manifest or transmittal letter (if any), and will hold the Certificated Notes in safekeeping for the Issuer in accordance with 

 
JPMorgan’s customary practices. JPMorgan shall not have any liability to the Issuer to determine by whom or by what means a facsimile signature may have
been affixed on Certificated Notes, or to determine whether any facsimile or manual signature is genuine, if such facsimile or manual signature resembles the specimen signature attached to the Issuer’s certificate of incumbency with respect to
such Authorized Representative. Any Certificated Note bearing the manual or facsimile signature of a person who is an Authorized Representative on the date such signature was affixed shall bind the Issuer after completion thereof by JPMorgan,
notwithstanding that such person shall have ceased to hold his or her office on the date such Note is countersigned or delivered by JPMorgan. 
  

	6.	BOOK-ENTRY NOTES 

 The Issuer’s book-entry
notes (“Book-Entry Notes”) shall not be issued in physical form, but their aggregate face amount shall be represented by a master note (the “Master Note”) in the form of Exhibit A executed by the Issuer pursuant to
the book-entry commercial paper program of The Depository Trust Company (“DTC”). JPMorgan shall maintain the Master Note in safekeeping, in accordance with its customary practices, on behalf of Cede & Co., the registered
owner thereof and nominee of DTC. As long as Cede & Co. is the registered owner of the Master Note, the beneficial ownership interest therein shall be shown on, and the transfer of ownership thereof shall be effected through, entries on the
books maintained by DTC and the books of its direct and indirect participants. The Master Note and the Book-Entry Notes shall be subject to DTC’s rules and procedures, as amended from time to time. JPMorgan shall not be liable or responsible
for sending transaction statements of any kind to DTC’s participants or the beneficial owners of the Book-Entry Notes, or for maintaining, supervising or reviewing the records of DTC or its participants with respect to such Notes. In connection
with DTC’s program, the Issuer understands that as one of the conditions of its participation therein, it shall be necessary for the Issuer and JPMorgan to enter into a Letter of Representations, in the form of Exhibit B hereto, and for DTC to
receive and accept such Letter of Representations. In accordance with DTC’s program, JPMorgan shall obtain from the CUSIP Service Bureau a written list of CUSIP numbers for Issuer’s Book-Entry Notes, and JPMorgan shall deliver such list to
DTC. The CUSIP Service Bureau shall bill the Issuer directly for the fee or fees payable for the list of CUSIP numbers for the Issuer’s Book-Entry Notes. 
  

	7.	ISSUANCE INSTRUCTIONS TO JPMORGAN; PURCHASE PAYMENTS 

 The Issuer understands that all instructions under this Agreement are to be directed to JPMorgan’s Commercial Paper Operations Department. JPMorgan shall provide the Issuer, or, if applicable, the Issuer’s Dealers, with access to
JPMorgan’s Money Market Issuance System or other electronic means (collectively, the “System”) in order that JPMorgan may receive electronic instructions for the issuance of Notes. Electronic instructions must be transmitted in
accordance with the procedures furnished by JPMorgan to the Issuer or its Dealers in connection with the System. These transmissions shall be the equivalent to the giving of a duly authorized written and signed instruction which JPMorgan may act
upon without liability. In the event that the System is inoperable at any time, an Authorized Representative or a Delegate may deliver written, telephone or facsimile instructions to JPMorgan, which instructions shall be verified in accordance with
any security procedures agreed upon by the parties. JPMorgan shall incur no liability to the Issuer in acting upon instructions believed by JPMorgan in good faith to have been given by an Authorized Representative or a Delegate. In the event that a
discrepancy exists between a telephonic instruction and a written confirmation, the telephonic instruction will be deemed the controlling and proper instruction. JPMorgan may electronically record any conversations made pursuant to this Agreement,
and the Issuer hereby consents to such recordings. All issuance instructions regarding the Notes must be received by 1:00 P.M. New York time in order for the Notes to be issued or delivered on the same day. 
 (a) Issuance and Purchase of Book-Entry Notes. Upon receipt of issuance instructions from the Issuer or its Dealers with respect to
Book-Entry 

  

 2 

 
Notes, JPMorgan shall transmit such instructions to DTC and direct DTC to cause appropriate entries of the Book-Entry Notes to be made in accordance with
DTC’s applicable rules, regulations and procedures for book-entry commercial paper programs. JPMorgan shall assign CUSIP numbers to the Issuer’s Book-Entry Notes to identify the Issuer’s aggregate principal amount of outstanding
Book-Entry Notes in DTC’s system, together with the aggregate unpaid interest (if any) on such Notes. Promptly following DTC’s established settlement time on each issuance date, JPMorgan shall access DTC’s system to verify whether
settlement has occurred with respect to the Issuer’s Book-Entry Notes. Prior to the close of business on such business day, JPMorgan shall deposit immediately available funds in the amount of the proceeds due the Issuer (if any) to the
Issuer’s account at JPMorgan and designated in the applicable Program Schedule (the “Account”), provided that JPMorgan has received DTC’s confirmation that the Book-Entry Notes have settled in accordance with
DTC’s applicable rules, regulations and procedures. JPMorgan shall have no liability to the Issuer whatsoever if any DTC participant purchasing a Book-Entry Note fails to settle or delays in settling its balance with DTC or if DTC or any DTC
participant fails to perform in any respect. 
 (b) Issuance and Purchase of Certificated Notes. Upon receipt of issuance
instructions with respect to Certificated Notes, JPMorgan shall: (a) complete each Certificated Note as to principal amount, date of issue, maturity date, place of payment, and rate or amount of interest (if such Note is interest bearing) in
accordance with such instructions; (b) countersign each Certificated Note; and (c) deliver each Certificated Note in accordance with the Issuer’s instructions, except as otherwise set forth below. Whenever JPMorgan is instructed to
deliver any Certificated Note by mail, JPMorgan shall strike from the Certificated Note the word “Bearer,” insert as payee the name of the person so designated by the Issuer and effect delivery by mail to such payee or to such other person
as is specified in such instructions to receive the Certificated Note. The Issuer understands that, in accordance with the custom prevailing in the commercial paper market, delivery of Certificated Notes shall be made before the actual receipt of
payment for such Notes in immediately available funds, even if the Issuer instructs JPMorgan to deliver a Certificated Note against payment. Therefore, once JPMorgan has delivered a Certificated Note to the designated recipient, the Issuer shall
bear the risk that such recipient may fail to remit payment of such Note or return such Note to JPMorgan. Delivery of Certificated Notes shall be subject to the rules of the New York Clearing House in effect at the time of such delivery. Funds
received in payment of Certificated Notes shall be credited to the Account. 
  

	8.	USE OF SALES PROCEEDS IN ADVANCE OF PAYMENT 

 JPMorgan shall not be obligated to credit the Issuer’s Account unless and until payment of the purchase price of each Note is received by JPMorgan. From time to time, JPMorgan, in its sole discretion, may permit the Issuer to have use
of funds payable with respect to a Note prior to JPMorgan’s receipt of the sales proceeds of such Note. If JPMorgan makes a deposit, payment or transfer of funds on behalf of the Issuer before JPMorgan receives payment for any Note, such
deposit, payment or transfer of funds shall represent an advance by JPMorgan to the Issuer to be repaid promptly, and in any event on the same day as it is made, from the proceeds of the sale of such Note, or by the Issuer if such proceeds are not
received by JPMorgan. 
  

 3 

	9.	PAYMENT OF MATURED NOTES 

 Notice that the Issuer
will not redeem any Note on the relative Initial Redemption Date (as defined in the applicable Extendible Commercial Note Announcement) must be received in writing by JPMorgan by 11:00 A.M. on such Initial Redemption Date. On any other day when a
Note matures or is prepaid, the Issuer shall transmit, or cause to be transmitted, to the Account, prior to 2:00 P.M. New York time on the same day, an amount of immediately available funds sufficient to pay the aggregate principal amount of such
Note and any applicable interest due. JPMorgan shall pay the interest (if any) and principal on a Book-Entry Note to DTC in immediately available funds, which payment shall be by net settlement of JPMorgan’s account at DTC. JPMorgan shall pay
Certificated Notes upon presentment. JPMorgan shall have no obligation under the Agreement to make any payment for which there is not sufficient, available and collected funds in the Account, and JPMorgan may, without liability to the Issuer, refuse
to pay any Note that would result in an overdraft to the Account. 
  

	10.	OVERDRAFTS 

 (a) Intraday overdrafts with respect to
each Account shall be subject to JPMorgan’s policies as in effect from time to time. 
 (b) An overdraft will exist in an Account if
JPMorgan, in its sole discretion, (i) permits an advance to be made pursuant to Section 8 and, notwithstanding the provisions of Section 8, such advance is not repaid in full on the same day as it is made, or (ii) pays a Note
pursuant to Section 9 in excess of the available collected balance in such Account. Overdrafts shall be subject to JPMorgan’s established banking practices, including, without limitation, the imposition of interest, funds usage charges and
administrative fees. The Issuer shall repay any such overdraft, fees and charges no later than the next business day, together with interest on the overdraft at the rate established by JPMorgan for the Account, computed from and including the date
of the overdraft to the date of repayment. 
  

	11.	NO PRIOR COURSE OF DEALING 

 No prior action or
course of dealing on the part of JPMorgan with respect to advances of the purchase price or payments of matured Notes shall give rise to any claim or cause of action by the Issuer against JPMorgan in the event that JPMorgan refuses to pay or settle
any Notes for which the Issuer has not timely provided funds as required by this Agreement. 
  

	12.	RETURN OF CERTIFICATED NOTES 

 JPMorgan will in due
course cancel any Certificated Note presented for payment and return such Note to the Issuer. JPMorgan shall also cancel and return to the Issuer any spoiled or voided Certificated Notes. Promptly upon written request of the Issuer or at the
termination of this Agreement, JPMorgan shall destroy all blank, unissued Certificated Notes in its possession and furnish a certificate to the Issuer certifying such actions. 
  

	13.	INFORMATION FURNISHED BY JPMORGAN 

 Upon the
reasonable request of the Issuer, JPMorgan shall promptly provide the Issuer with information with respect to any Note issued and paid hereunder, provided, that the Issuer delivers such request in writing and, to the extent applicable,
includes the serial number or note number, principal amount, payee, date of issue, maturity date, amount of interest (if any) and place of payment of such Note. 
  

 4 

	14.	REPRESENTATIONS AND WARRANTIES 

 The Issuer
represents and warrants that: (i) it has the right, capacity and authority to enter into this Agreement; and (ii) it will comply with all of its obligations and duties under this Agreement. The Issuer further represents and agrees that
each Note issued and distributed upon its instruction pursuant to this Agreement shall constitute the Issuer’s representation and warranty to JPMorgan that such Note is a legal, valid and binding obligation of the Issuer, and that such Note is
being issued in a transaction which is exempt from registration under the Securities Act of 1933, as amended, and any applicable state securities law. 
  

	15.	DISCLAIMERS 

 Neither JPMorgan nor its directors,
officers, employees or agents shall be liable for any act or omission under this Agreement except in the case of gross negligence or willful misconduct. IN NO EVENT SHALL JPMORGAN BE LIABLE FOR SPECIAL, INDIRECT OR CONSEQUENTIAL LOSS OR DAMAGE OF
ANY KIND WHATSOEVER (INCLUDING BUT NOT LIMITED TO LOST PROFITS), EVEN IF JPMORGAN HAS BEEN ADVISED OF THE LIKELIHOOD OF SUCH LOSS OR DAMAGE AND REGARDLESS OF THE FORM OF ACTION. In no event shall JPMorgan be considered negligent in consequence of
complying with DTC’s rules, regulations and procedures. The duties and obligations of JPMorgan, its directors, officers, employees or agents shall be determined by the express provisions of this Agreement and they shall not be liable except for
the performance of such duties and obligations as are specifically set forth herein and no implied covenants shall be read into this Agreement against them. Neither JPMorgan nor its directors, officers, employees or agents shall be required to
ascertain whether any issuance or sale of any Notes (or any amendment or termination of this Agreement) has been duly authorized or is in compliance with any other agreement to which the Issuer is a party (whether or not JPMorgan is also a party to
such agreement). 
  

	16.	INDEMNIFICATION 

 The Issuer agrees to indemnify,
defend and hold harmless JPMorgan, its directors, officers, employees and agents (collectively, “indemnitees”) from and against any and all liabilities, claims, losses, damages, penalties, costs and expenses (including attorneys’ fees
and disbursements) suffered or incurred by or asserted or assessed against any indemnitee arising in respect of this Agreement, except in respect of any indemnitee for any such liability, claim, loss, damage, penalty, cost or expense resulting from
the gross negligence or willful misconduct of such indemnitee. This indemnity will survive the termination of this Agreement. 
  

	17.	OPINION OF COUNSEL 

 The Issuer shall deliver to
JPMorgan all documents it may reasonably request relating to the existence of the Issuer and authority of the Issuer for this Agreement, including, without limitation, an opinion of counsel, substantially in the form of Exhibit C hereto. 

 

	18.	NOTICES 

 All notices, confirmations and other
communications hereunder shall (except to the extent otherwise expressly provided) be in writing and shall be sent by first-class mail, postage prepaid, by telecopier or by hand, addressed as follows, or to such other address as the party receiving
such notice shall have previously specified to the party sending such notice: 
  

			
	If to the Issuer:	 	7 WTC, 250 Greenwich Street, Room 15-069
	 	 	New York, NY, 10013
		 	Attention: Richard Li
		 	Telephone: (212) 553-4728
		 	Facsimile: (212) 298-7177

  

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 If to JPMorgan concerning the daily issuance and redemption of Notes: 
  

			
		 	Attention: Money Market Operations
	 	 	420 West Van Buren, 5th Floor
		 	Chicago, IL 60606
		 	Telephone: (800) 499-3176/(312) 954-0445
		 	Facsimile: (312) 954-0432

  

			
	All other:	 	Attention: Commercial Paper JPM
	 	 	4 New York Plaza 21st Floor
		 	New York NY 10004-2413
		 	Telephone: (212) 623-8220
		 	Facsimile: (212) 623-8420/21

  

	19.	COMPENSATION 

 The Issuer shall pay compensation
for services pursuant to this Agreement in accordance with the pricing schedules furnished by JPMorgan to the Issuer from time to time and upon such payment terms as the parties shall determine. The Issuer shall also reimburse JPMorgan for any fees
and charges imposed by DTC with respect to services provided in connection with the Book-Entry Notes. 
  

	20.	BENEFIT OF AGREEMENT 

 This Agreement is solely for
the benefit of the parties hereto and no other person shall acquire or have any right under or by virtue hereof. 
  

	21.	TERMINATION 

 This Agreement may be terminated at
any time by either party by written notice to the other, but such termination shall not affect the respective liabilities of the parties hereunder arising prior to such termination. 
  

	22.	FORCE MAJEURE 

 In no event shall JPMorgan be
liable for any failure or delay in the performance of its obligations hereunder because of circumstances beyond JPMorgan’s control, including, but not limited to, acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot,
strikes or work stoppages for any reason, embargo, government action, including any laws, ordinances, regulations or the like which restrict or prohibit the providing of the services contemplated by this Agreement, inability to obtain material,
equipment, or communications or computer facilities, or the failure of equipment or interruption of communications or computer facilities, and other causes beyond JPMorgan’s control whether or not of the same class or kind as specifically named
above. 
  

	23.	ENTIRE AGREEMENT 

 This Agreement, together with
the exhibits attached hereto, constitutes the entire agreement between JPMorgan and the Issuer with respect to the subject matter hereof and supersedes in all respects all prior proposals, negotiations, communications, discussions and agreements
between the parties concerning the subject matter of this Agreement. 
  

 6 

	24.	WAIVERS AND AMENDMENTS 

 No failure or delay on the
part of any party in exercising any power or right under this Agreement shall operate as a waiver, nor does any single or partial exercise of any power or right preclude any other or further exercise, or the exercise of any other power or right. Any
such waiver shall be effective only in the specific instance and for the purpose for which it is given. No amendment, modification or waiver of any provision of this Agreement shall be effective unless the same shall be in writing and signed by the
Issuer and JPMorgan. 
  

	25.	BUSINESS DAY 

 Whenever any payment to be made
hereunder shall be due on a day which is not a business day for JPMorgan, then such payment shall be made on JPMorgan’s next succeeding business day. 
  

	26.	COUNTERPARTS 

 This Agreement may be executed in
counterparts, each of which shall be deemed an original and such counterparts together shall constitute but one instrument. 
  

	27.	HEADINGS 

 The headings in this Agreement are for
purposes of reference only and shall not in any way limit or otherwise affect the meaning or interpretation of any of the terms of this Agreement. 
  

	28.	GOVERNING LAW 

 This Agreement and the Notes
shall be governed by and construed in accordance with the internal laws of the State of New York, without regard to the conflict of laws provisions thereof. 
  

	29.	JURISDICTION AND VENUE 

 Each party hereby
irrevocably and unconditionally submits to the jurisdiction of the United States District Court for the Southern District of New York and any New York State court located in the Borough of Manhattan in New York City and of any appellate court from
any thereof for the purposes of any legal suit, action or proceeding arising out of or relating to this Agreement (a “Proceeding”). Each party hereby irrevocably agrees that all claims in respect of any Proceeding may be heard and
determined in such Federal or New York State court and irrevocably waives, to the fullest extent it may effectively do so, any objection it may now or hereafter have to the laying of venue of any Proceeding in any of the aforementioned courts and
the defense of an inconvenient forum to the maintenance of any Proceeding. 
  

	30.	WAIVER OF TRIAL BY JURY 

 EACH PARTY HEREBY WAIVES
ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATING TO ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. 
  

	31.	ACCOUNT CONDITIONS 

 Each Account shall be subject
to JPMorgan’s account conditions, as in effect from time to time. 
  

 7 

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

									
	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION	 		 	Moody’s Corporation
					
	By:	 	/s/ Bill Velasquez	 		 	By:	 	/s/ Carlton Charles
	Name:	 	Bill Velasquez	 		 	Name:	 	Carlton Charles
	Title:	 	Vice President	 		 	Title:	 	Vice President and Treasurer
	Date:	 	9/28/07	 		 	Date:	 	9/28/07

  

 8 

 ADDITIONAL CLAUSES FOR NON-U.S. ISSUERS 
  

	32.	AGENT FOR SERVICE OR PROCESS 

 The Issuer, for the
benefit of JPMorgan and the holders from time to time of the Notes, hereby irrevocably appoints
                                        
                     , with offices on the date hereof located at
                                        
                                         , New
York, New York                          as its agent (the “Authorized Agent”) upon which process may be
served in any Proceeding and hereby agrees that service of process upon the Authorized Agent, by mail or delivery, shall be deemed in every respect effective service of process upon it in any such Proceeding. The Issuer agrees to take any and all
action, including, but not limited to, the execution and filing of all such documents and instruments, as may be necessary to effect and continue the appointment by it of the Authorized Agent in full force and effect so long as any of the Notes
shall be outstanding. Nothing herein contained shall, however, in any manner limit the rights of JPMorgan or the holders of the Notes to serve process in any other manner permitted by applicable law. 
  

	33.	WAIVER OF IMMUNITY 

 The Issuer irrevocably waives,
to the fullest extent permitted by applicable law, with respect to itself and its revenues and assets (irrespective of their use or intended use), all immunity on the grounds of sovereign immunity or other similar grounds from (i) suit,
(ii) jurisdiction of any court, (iii) relief by way of injunction or order for specific performance or for recovery of property, (iv) attachment of its assets (whether before or after judgment) and (v) execution or enforcement of
any judgment to which it or its revenues or assets might otherwise be entitled in any Proceeding. 
  

	34.	WITHHOLDING TAXES 

 The Issuer represents and
warrants that there is no withholding or other tax, assessment or governmental charge imposed by                         
[insert name of country] or any political subdivision thereof or taxing authority therein on account of the Notes, this Agreement, or any payments thereon or hereunder. The Issuer agrees that in the event that any tax, assessment or change shall
hereafter become applicable, it shall promptly notify JPMorgan in writing and further agrees that all amounts payable by it in respect of any Note or this Agreement shall be paid without set-off or counterclaim and free and clear of, and without
deduction or withholding for or on account of, any present or future tax, assessment or other governmental charge or any interest or penalty thereon (collectively, “Tax”) imposed, levied, collected, assessed or required to be
deducted, withheld or paid by or for the account of                          [insert name of country] or any taxing
authority or political subdivision thereof or therein. If any such Tax is required by law to be withheld or deducted from any such payment, the Issuer shall pay the full amount of such Tax and pay such additional amounts as may be necessary to
ensure that the net amount actually received by the person entitled to such payment is equal to the amount such person would have received had no such Tax been withheld from such payment, provided that the Issuer shall not be required to pay
any such additional amount on account of any Tax that would not have been so imposed but for the existence of any present or former personal or business connection between the person entitled to such payment and
                         [insert name of country] other than the mere receipt of such payment or the ownership or holding
of such Note. 
  

 9 

	35.	JUDGMENT CURRENCY 

 The obligation of the Issuer to
make payment in lawful currency of the United States of America (“Dollars”) of any and all amounts due hereunder or under the Notes shall not be discharged or satisfied by any tender or any recovery pursuant to any judgment in any
currency other than Dollars, except to the extent that such tender or recovery shall result in the actual receipt by JPMorgan in New York or the holders of the Notes of the full amount of Dollars payable hereunder or under the Notes, and shall be
enforceable as an alternative or additional cause of action for the purpose of recovering in Dollars the amount, if any, by which such actual receipt shall fall short of the full amount of Dollars so paid. 
  

 2 

 EXHIBIT A 
 (DTC Master Note) 
 AND 
 EXHIBIT B 
 (DTC Letter of Representations) 
  

 EXHIBIT C 
 [FORM OF OPINION]Note Purchase Agreement dated October 30, 2007, between Biovest International

 Exhibit 10.1 
 NOTE PURCHASE AGREEMENT 
 VALENS U.S. SPV I, LLC 
 and 
 BIOVEST INTERNATIONAL, INC.

 Dated: October 30, 2007 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page
	 1.
	  	Agreement to Sell and Purchase	  	1
			
	 2.
	  	Fees	  	1
			
	 3.
	  	Closing, Delivery and Payment	  	2
		  	 3.1
	  	Closing	  	2
		  	 3.2
	  	Delivery	  	2
			
	 4.
	  	Representations and Warranties of the Company	  	2
		  	 4.1
	  	Organization, Good Standing and Qualification	  	2
		  	 4.2
	  	Subsidiaries	  	3
		  	 4.3
	  	Capitalization; Voting Rights	  	3
		  	 4.4
	  	Authorization; Binding Obligations	  	4
		  	 4.5
	  	Liabilities	  	4
		  	 4.6
	  	Agreements; Action	  	4
		  	 4.7
	  	Obligations to Related Parties	  	6
		  	 4.8
	  	Changes	  	6
		  	 4.9
	  	Title to Properties and Assets; Liens, Etc	  	8
		  	 4.10
	  	Intellectual Property	  	8
		  	 4.11
	  	Compliance with Other Instruments	  	9
		  	 4.12
	  	Litigation	  	9
		  	 4.13
	  	Tax Returns and Payments	  	9
		  	 4.14
	  	Employees	  	10
		  	 4.15
	  	Registration Rights and Voting Rights	  	10
		  	 4.16
	  	Compliance with Laws; Permits	  	10
		  	 4.17
	  	Environmental and Safety Laws	  	11
		  	 4.18
	  	Valid Offering	  	11
		  	 4.19
	  	Full Disclosure	  	11
		  	 4.20
	  	Insurance	  	12
		  	 4.21
	  	SEC Reports	  	12
		  	 4.22
	  	Listing	  	12
		  	 4.23
	  	No Integrated Offering	  	12
		  	 4.24
	  	Stop Transfer	  	12
		  	 4.25
	  	Patriot Act	  	13
		  	 4.26
	  	ERISA	  	13
			
	 5.
	  	Representations and Warranties of the Purchaser	  	14
		  	 5.1
	  	Incorporation; No Shorting	  	14
		  	 5.2
	  	Requisite Power and Authority	  	14
		  	 5.3
	  	Investment Representations	  	14
		  	 5.4
	  	The Purchaser Bears Economic Risk	  	14
		  	 5.5
	  	Acquisition for Own Account	  	15

  

 i 

							
		  	 5.6
	  	The Purchaser Can Protect Its Interest	  	15
		  	 5.7
	  	Accredited Investor	  	15
			
	 6.
	  	Covenants of the Company	  	15
		  	 6.1
	  	Listing	  	15
		  	 6.2
	  	Market Regulations	  	15
		  	 6.3
	  	Reporting Requirements	  	15
		  	 6.4
	  	Use of Funds	  	17
		  	 6.5
	  	Access to Facilities	  	17
		  	 6.6
	  	Taxes	  	17
		  	 6.7
	  	Insurance	  	17
		  	 6.8
	  	Intellectual Property	  	18
		  	 6.9
	  	Properties	  	19
		  	 6.10
	  	Confidentiality	  	19
		  	 6.11
	  	Required Approvals	  	19
		  	 6.12
	  	Opinion	  	21
		  	 6.13
	  	Margin Stock	  	21
			
	 7.
	  	Covenants of the Purchaser	  	21
		  	 7.1
	  	Confidentiality	  	21
		  	 7.2
	  	Non-Public Information	  	22
		  	 7.3
	  	Limitation on Acquisition of Common Stock of the Company	  	22
			
	 8.
	  	Covenants of the Company and the Purchaser Regarding Indemnification	  	22
		  	 8.1
	  	Company Indemnification	  	22
		  	 8.2
	  	Purchaser’s Indemnification	  	22
			
	 9.
	  	Intentionally Omitted	  	23
		  	 9.1
	  	Intentionally Omitted	  	23
			
	 10.
	  	Intentionally Omitted	  	23
			
	 11.
	  	Miscellaneous	  	23
		  	 11.1
	  	Governing Law, Jurisdiction and Waiver of Jury Trial	  	23
		  	 11.2
	  	Severability	  	24
		  	 11.3
	  	Survival	  	24
		  	 11.4
	  	Successors	  	24
		  	 11.5
	  	Entire Agreement; Maximum Interest	  	25
		  	 11.6
	  	Amendment and Waiver	  	25
		  	 11.7
	  	Delays or Omissions	  	25
		  	 11.8
	  	Notices	  	25
		  	 11.9
	  	Attorneys’ Fees	  	26
		  	 11.10
	  	Titles and Subtitles	  	26
		  	 11.11
	  	Facsimile Signatures; Counterparts	  	27
		  	 11.12
	  	Broker’s Fees	  	27
		  	 11.13
	  	Construction	  	27

  

 ii 

 LIST OF EXHIBITS 
  

			
	 Form of Secured Promissory Note
	  	Exhibit A
	 Form of Escrow Agreement
	  	Exhibit B

 LIST OF SCHEDULES 
  

			
	 Subsidiary
	  	Schedule 4.2
	 Capital Stock of Company and Subsidiary
	  	Schedule 4.3
	 Agreements
	  	Schedule 4.6
	 Obligations to Related Parties
	  	Schedule 4.7
	 Title; liens
	  	Schedule 4.9
	 Litigation
	  	Schedule 4.12
	 Tax Returns and Payments
	  	Schedule 4.13
	 Employees
	  	Schedule 4.14
	 Registration Rights; Voting Rights
	  	Schedule 4.15
	 Environmental and Safety Laws
	  	Schedule 4.17
	 SEC Reports
	  	Schedule 4.21
	 Indebtedness
	  	Schedule 6.11(I)(e)
	 Broker’s Fees
	  	Schedule 11.12

  

 iii 

 NOTE PURCHASE AGREEMENT 
 THIS NOTE PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of October 30, 2007, by and between BIOVEST
INTERNATIONAL, INC., a Delaware corporation (the “Company”), and VALENS U.S. SPV I, LLC, a Delaware corporation (the “Purchaser”). 
 RECITALS 
 WHEREAS, the Company has authorized the sale to the Purchaser of a Secured Promissory Note
in the aggregate principal amount of Two Hundred Forty-Five Thousand and 00/100 Dollars ($245,000) in the form of Exhibit A hereto (as amended, modified and/or supplemented from time to time, the “Note”); 
 WHEREAS, the Purchaser desires to purchase the Note on the terms and conditions set forth herein; and 
 WHEREAS, the Company desires to issue and sell the Note to the Purchaser on the terms and conditions set forth herein. 
 AGREEMENT 
 NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual promises, representations, warranties and covenants hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows: 
 1. Agreement to Sell and Purchase. Pursuant to the terms and conditions set forth in this Agreement, on the
Closing Date (as defined in Section 3), the Company shall sell to the Purchaser, and the Purchaser shall purchase from the Company, the Note. The sale of the Note on the Closing Date shall be known as the “Offering.” The Note
will mature on the Maturity Date (as defined in the Note). The Note is sometimes referred to herein as the “Securities.” 
 2. Fees. On the Closing Date, the Company shall pay (i) to Valens Capital Management, LLC, the investment manager of the Purchaser (“VCM”), a non-refundable payment in an amount equal to $3675.00, plus
reasonable expenses (including legal fees and expenses) incurred in connection with the entering into of this Agreement and the Related Agreements and expenses incurred in connection with each of VCM and/or Purchaser’s due diligence review of
the Company and all other related matters; (ii) to the Purchaser, a non-refundable payment in an amount equal to $2,450.00; and (iii) to the Purchaser, an advance prepayment discount deposit equal to $2,450.00. Each of the foregoing
payments in clauses (i) and (ii) above shall be deemed fully earned on the Closing Date and shall not be subject to rebate or proration for any reason. The payments set forth in clause (i) (net of any deposits previously paid by the
Company) and clause (ii) and (iii) above, shall be paid at closing out of funds held pursuant to the Escrow Agreement (as defined below) and a disbursement letter (the “Disbursement Letter”). 

 3. Closing, Delivery and Payment. 
 3.1 Closing. Subject to the terms and conditions herein, the closing of the transactions contemplated hereby (the “Closing”),
shall take place on the date hereof, at such time or place as the Company and the Purchaser may mutually agree (such date is hereinafter referred to as the “Closing Date”). 
 3.2 Delivery. Pursuant to the Escrow Agreement, at the Closing on the Closing Date, the Company will deliver to the Purchaser, among other things,
the Note and the Purchaser will deliver to the Company, among other things, the amounts set forth in the Disbursement Letter by certified funds or wire transfer and disbursed in accordance with the terms set forth in the Note. The Company hereby
acknowledges and agrees that Purchaser’s obligation to purchase the Note from the Company on the Closing Date shall be contingent upon the satisfaction (or waiver by the Purchaser in its sole discretion) of the items and matters set forth in
the closing checklist provided by the Purchaser to the Company on or prior to the Closing Date. 
 4. Representations and Warranties of
the Company. The Company hereby represents and warrants to the Purchaser as follows 
 4.1 Organization, Good Standing and
Qualification. Each of the Company and each of its Subsidiaries is a corporation, partnership or limited liability company, as the case may be, duly organized, validly existing and in good standing under the laws of its jurisdiction of
organization. Each of the Company and each of its Subsidiaries has the corporate, limited liability company or partnership, as the case may be, power and authority to own and operate its properties and assets and, insofar as it is or shall be a
party thereto, to (1) execute and deliver (i) this Agreement, (ii) the Note, (iii) the Master Security Agreement dated as of the date hereof between the Company and its Subsidiaries and LV Administrative Services, Inc., as agent
(the “Agent”) for the Purchaser (as amended, modified and/or supplemented from time to time, the “Master Security Agreement” and together with each other security agreement, mortgage, pledge and other similar agreements
which are executed by the Company or any of its Subsidiaries in favor of the Agent and/or the Purchaser, collectively, the “Security Documents”), (iv) the Royalty Agreement dated as of the date hereof between the Company and
the Purchaser (as amended, modified and/or supplemented from time to time, the “Royalty Agreement”), (v) the Funds Escrow Agreement dated as of the date hereof among the Company, the Purchaser and the escrow agent referred to
therein, substantially in the form of Exhibit B hereto (as amended, modified and/or supplemented from time to time, the “Escrow Agreement”), and (vi) all other documents, instruments and agreements entered into in connection
with the transactions contemplated hereby and thereby (the preceding clauses (ii) through (vi), collectively, the “Related Agreements”); (2) issue and sell the Note; and (3) carry out the provisions of this Agreement
and the Related Agreements and to carry on its business as presently conducted. Each of the Company and each of its Subsidiaries is duly qualified and is authorized to do business and is in good standing as a foreign corporation, partnership or
limited liability company, as the case may be, in all jurisdictions in which the nature or location of its activities and of its properties (both owned and leased) makes such qualification necessary, except for those jurisdictions in which failure
to do so has not, or could not reasonably be expected to have, individually or in the aggregate, a material adverse effect on the business, assets, liabilities, condition (financial or otherwise), properties, operations or prospects of the Company
and its Subsidiaries, taken individually and as a whole (a “Material Adverse Effect”). 
  

 2 

 4.2 Subsidiaries. Each direct and indirect Subsidiary of the Company, the direct owner of such
Subsidiary and its percentage ownership thereof, is set forth on Schedule 4.2. For the purpose of this Agreement, (x) a “Subsidiary” of any person or entity means (i) a corporation or other entity whose shares of stock or
other ownership interests having ordinary voting power (other than stock or other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the directors of such corporation, or other persons or
entities performing similar functions for such person or entity, are owned, directly or indirectly, by such person or entity or (ii) a corporation or other entity in which such person or entity owns, directly or indirectly, more than 50% of the
equity interests at such time and (y) a “Credit Party” means, the Company and each direct or indirect Subsidiary of the Company to the extent party to any Security Document required by the Purchaser to grant to the Purchaser a
first priority perfected security interest in substantially all of such Subsidiary’s assets to secure the Obligations (as defined in each Security Document). 
 4.3 Capitalization; Voting Rights. 
 (a) The authorized capital stock of the Company,
as of the date hereof consists of 350,000,000 shares, of which 300,000,000 are shares of Common Stock, par value $0.01 per share, 80,390,663 shares of which are issued and outstanding, and 50,000,000 are shares of preferred stock, par value $0.01
per share of which no shares of preferred stock are issued and outstanding. The authorized, issued and outstanding capital stock of each Subsidiary of the Company is set forth on Schedule 4.3. 
 (b) Except as disclosed on Schedule 4.3, other than: (i) the shares reserved for issuance under the Company’s stock option
plans; and (ii) shares which may be granted pursuant to this Agreement and the Related Agreements, there are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal), proxy or stockholder
agreements, or arrangements or agreements of any kind for the purchase or acquisition from the Company of any of its securities. Except as disclosed on Schedule 4.3, neither the offer, issuance or sale of the Note, nor the consummation of any
transaction contemplated hereby will result in a change in the price or number of any securities of the Company outstanding, under anti-dilution or other similar provisions contained in or affecting any such securities. 
 (c) All issued and outstanding shares of the Company’s Common Stock: (i) have been duly authorized and validly issued and are
fully paid and nonassessable; and (ii) were issued in compliance with all applicable state and federal laws concerning the issuance of securities. 
 (d) The rights, preferences, privileges and restrictions of the shares of the Common Stock are as stated in the Company’s Certificate of Incorporation (the “Charter”). When issued in compliance
with the provisions of this Agreement and the Company’s Charter, the Securities will be validly issued, fully paid and nonassessable, and will be free of any liens or encumbrances; provided, however, that the Securities may be
subject to restrictions on transfer under state and/or federal securities laws as set forth herein or as otherwise required by such laws at the time a transfer is proposed. 
  

 3 

 4.4 Authorization; Binding Obligations. All corporate, partnership or limited liability company,
as the case may be, action on the part of the Company and each of its Subsidiaries (including their respective officers and directors) necessary for the authorization of this Agreement and the Related Agreements, the performance of all obligations
of the Company and its Subsidiaries hereunder and under the other Related Agreements at the Closing and, the authorization, sale, issuance and delivery of the Note has been taken or will be taken prior to the Closing. This Agreement and the Related
Agreements, when executed and delivered and to the extent it is a party thereto, will be valid and binding obligations of each of the Company and each of its Subsidiaries, enforceable against each such person or entity in accordance with their
terms, except: 
 (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general
application affecting enforcement of creditors’ rights; and 
 (b) general principles of equity that restrict the
availability of equitable or legal remedies. 
 The sale of the Note is not and will not be subject to any preemptive rights or rights of first refusal that
have not been properly waived or complied with. 
 4.5 Liabilities. Neither the Company nor any of its Subsidiaries has any
liabilities, except current liabilities incurred in the ordinary course of business and liabilities disclosed in any of the Company’s filings under the Securities Exchange Act of 1934 (“Exchange Act”) made prior to the date of
this Agreement (collectively, the “Exchange Act Filings”), copies of which have been provided to the Purchaser. 
 4.6
Agreements; Action. Except (i) as set forth on Schedule 4.6, or (ii) as disclosed in any Exchange Act Filings: 
 (a) there are no agreements, understandings, instruments, contracts, proposed transactions, judgments, orders, writs or decrees to which the Company or any of its Subsidiaries is a party or by which it is bound which may involve:
(i) obligations (contingent or otherwise) of, or payments to, the Company or any of its Subsidiaries in excess of $50,000 (other than obligations of, or payments to, the Company or any of its Subsidiaries arising from purchase or sale
agreements entered into in the ordinary course of business); or (ii) the transfer or license of any patent, copyright, trade secret or other proprietary right to or from the Company or any of its Subsidiaries (other than licenses arising from
the purchase of “off the shelf” or other standard products); or (iii) provisions restricting the development, manufacture or distribution of the Company’s or any of its Subsidiaries products or services; or
(iv) indemnification by the Company or any of its Subsidiaries with respect to infringements of proprietary rights. 
 (b) Since June 30, 2007 (the “Balance Sheet Date”), neither the Company nor any of its Subsidiaries has, except in the ordinary course of business: (i) declared or paid 

  

 4 

 
any dividends, or authorized or made any distribution upon or with respect to any class or series of its capital stock; (ii) incurred any indebtedness
for money borrowed or any other liabilities (other than ordinary course obligations) individually in excess of $50,000 or, in the case of indebtedness and/or liabilities individually less than $50,000, in excess of $100,000 in the aggregate;
(iii) made any loans or advances to any person or entity not in excess, individually or in the aggregate, of $100,000, other than ordinary course advances for travel expenses; or (iv) sold, exchanged or otherwise disposed of any of its
assets or rights, other than the sale of its inventory in the ordinary course of business. 
 (c) For the purposes of
subsections (a) and (b) above, all indebtedness, liabilities, agreements, understandings, instruments, contracts and proposed transactions involving the same person or entity (including persons or entities the Company or any Subsidiary of
the Company has reason to believe are affiliated therewith) shall be aggregated for the purpose of meeting the individual minimum dollar amounts of such subsections. 
 (d) The Company maintains disclosure controls and procedures (“Disclosure Controls”) designed to ensure that information
required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the rules and forms of the Securities and Exchange
Commission (“SEC”). 
 (e) The Company makes and keep books, records, and accounts, that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of the Company’s assets. The Company maintains internal control over financial reporting (“Financial Reporting Controls”) designed by, or under the
supervision of, the Company’s principal executive and principal financial officers, and effected by the Company’s board of directors, management, and other personnel, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles (“GAAP”) as implemented by the SEC for reporting companies, including that: 
 (i) transactions are executed in accordance with management’s general or specific authorization; 
 (ii) unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial
statements are prevented or timely detected; 
 (iii) transactions are recorded as necessary to permit preparation of
financial statements in accordance with GAAP, and that the Company’s receipts and expenditures are being made only in accordance with authorizations of the Company’s management and board of directors; 
 (iv) transactions are recorded as necessary to maintain accountability for assets; and 
  

 5 

 (v) the recorded accountability for assets is compared with the existing assets at
reasonable intervals, and appropriate action is taken with respect to any differences. 
 (f) There is no weakness in any of
the Company’s Disclosure Controls or Financial Reporting Controls that is required to be disclosed in any of the Exchange Act Filings, except as so disclosed. 
 4.7 Obligations to Related Parties. Except as set forth on Schedule 4.7, there are no obligations of the Company or any of its Subsidiaries to officers, directors, stockholders or employees of the Company or
any of its Subsidiaries other than: 
 (a) for payment of salary for services rendered and for bonus payments; 
 (b) reimbursement for reasonable expenses incurred on behalf of the Company and its Subsidiaries; 
 (c) for other standard employee benefits made generally available to all employees (including stock option agreements outstanding under
any stock option plan approved by the Board of Directors of the Company and each Subsidiary of the Company, as applicable); and 
 (d) obligations listed in the Company’s and each of its Subsidiary’s financial statements or disclosed in any of the Company’s Exchange Act Filings. 
 Except as described above or set forth on Schedule 4.7, none of the officers, directors or, to the best of the Company’s knowledge, key employees or stockholders of the Company or any of its Subsidiaries or any
members of their immediate families, are indebted to the Company or any of its Subsidiaries, individually or in the aggregate, in excess of $50,000 or have any direct or indirect ownership interest in any firm or corporation with which the Company
or any of its Subsidiaries is affiliated or with which the Company or any of its Subsidiaries has a business relationship, or any firm or corporation which competes with the Company or any of its Subsidiaries, other than passive investments in
publicly traded companies (representing less than one percent (1%) of such company) which may compete with the Company or any of its Subsidiaries. Except as described above, no officer, director or stockholder of the Company or any of its
Subsidiaries, or any member of their immediate families, is, directly or indirectly, interested in any material contract with the Company or any of its Subsidiaries and no agreements, understandings or proposed transactions are contemplated between
the Company or any of its Subsidiaries and any such person. Except as set forth on Schedule 4.7, neither the Company nor any of its Subsidiaries is a guarantor or indemnitor of any indebtedness of any other person or entity. 
 4.8 Changes. Since the Balance Sheet Date, except as disclosed in any Exchange Act Filing or in any Schedule to this Agreement or to any of the
Related Agreements, there has not been: 
 (a) except for additional loan disbursements by Accentia Biopharmaceuticals, Inc.,
a Florida corporation (the “Parent”) to the Company under those certain demand 

  

 6 

 
notes issued by the Company to the Parent (the “Parent Disbursements”), any change in the business, assets, liabilities, condition
(financial or otherwise), properties, operations or prospects of the Company or any of its Subsidiaries, which individually or in the aggregate has had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect; 
 (b) any resignation or termination of any officer, key employee or group of employees of the Company or any of its
Subsidiaries; 
 (c) except for the Parent Disbursements, any material change, except in the ordinary course of business, in
the contingent obligations of the Company or any of its Subsidiaries by way of guaranty, endorsement, indemnity, warranty or otherwise; 
 (d) any damage, destruction or loss, whether or not covered by insurance, which has had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; 
 (e) any waiver by the Company or any of its Subsidiaries of a valuable right or of a material debt owed to it; 
 (f) any direct or indirect loans made by the Company or any of its Subsidiaries to any stockholder, employee, officer or director of the
Company or any of its Subsidiaries, other than advances made in the ordinary course of business; 
 (g) any material change in
any compensation arrangement or agreement with any employee, officer, director or stockholder of the Company or any of its Subsidiaries; 
 (h) any declaration or payment of any dividend or other distribution of the assets of the Company or any of its Subsidiaries; 
 (i) any labor organization activity related to the Company or any of its Subsidiaries; 
 (j) any debt, obligation or liability incurred, assumed or guaranteed by the Company or any of its Subsidiaries, except for (i) the
Parent Disbursements, and (ii) those immaterial amounts and for current liabilities incurred in the ordinary course of business; 
 (k) any sale, assignment or transfer of any patents, trademarks, copyrights, trade secrets or other intangible assets owned by the Company or any of its Subsidiaries; 
 (l) any change in any material agreement to which the Company or any of its Subsidiaries is a party or by which either the Company or any
of its Subsidiaries is bound which either individually or in the aggregate has had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; 
  

 7 

 (m) any other event or condition of any character that, either individually or in the
aggregate, has had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; or 
 (n) any arrangement or commitment by the Company or any of its Subsidiaries to do any of the acts described in subsection (a) through (m) above. 
 4.9 Title to Properties and Assets; Liens, Etc. Except as set forth on Schedule 4.9, each of the Company and each of its Subsidiaries has good and marketable title to its properties and assets, and good
title to its leasehold interests, in each case subject to no mortgage, pledge, lien, lease, encumbrance or charge, other than: 
 (a) those resulting from taxes which have not yet become delinquent; 
 (b) minor liens and encumbrances which do not
materially detract from the value of the property subject thereto or materially impair the operations of the Company or any of its Subsidiaries, so long as in each such case, such liens and encumbrances have no effect on the lien priority of the
Purchaser in such property; and 
 (c) those that have otherwise arisen in the ordinary course of business, so long as they
have no effect on the lien priority of the Purchaser therein. 
 All facilities, machinery, equipment, fixtures, vehicles and other properties owned, leased
or used by the Company and its Subsidiaries are in good operating condition and repair and are reasonably fit and usable for the purposes for which they are being used. Except as set forth on Schedule 4.9, the Company and its Subsidiaries are in
compliance with all material terms of each lease to which it is a party or is otherwise bound. 
 4.10 Intellectual Property.

 (a) Each of the Company and each of its Subsidiaries owns or possesses sufficient legal rights to all patents, trademarks,
service marks, trade names, copyrights, trade secrets, licenses, information and other proprietary rights and processes necessary for its business as now conducted and, to the Company’s knowledge, as presently proposed to be conducted (the
“Intellectual Property”), without any known infringement of the rights of others. There are no outstanding options, licenses or agreements of any kind relating to the foregoing proprietary rights, nor is the Company or any of its
Subsidiaries bound by or a party to any options, licenses or agreements of any kind with respect to the patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses, information and other proprietary rights and processes of
any other person or entity other than such licenses or agreements arising from the purchase of “off the shelf” or standard products. 
 (b) Neither the Company nor any of its Subsidiaries has received any communications alleging that the Company or any of its Subsidiaries has violated any of the patents, trademarks, service marks, trade names,
copyrights or trade secrets or other proprietary rights of any other person or entity, nor is the Company or any of its Subsidiaries aware of any basis therefor. 
  

 8 

 (c) The Company does not believe it is or will be necessary to utilize any inventions,
trade secrets or proprietary information of any of its employees made prior to their employment by the Company or any of its Subsidiaries, except for inventions, trade secrets or proprietary information that have been rightfully assigned to the
Company or any of its Subsidiaries. 
 4.11 Compliance with Other Instruments. Neither the Company nor any of its Subsidiaries is in
violation or default of (x) any term of its Charter or Bylaws, or (y) any provision of any indebtedness, mortgage, indenture, contract, agreement or instrument to which it is party or by which it is bound or of any judgment, decree, order
or writ, which violation or default, in the case of this clause (y), has had, or could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. The execution, delivery and performance of and compliance with
this Agreement and the Related Agreements to which it is a party, and the issuance and sale of the Note by the Company and the other Securities, if any, by the Company each pursuant hereto and thereto, will not, with or without the passage of time
or giving of notice, result in any such material violation, or be in conflict with or constitute a default under any such term or provision, or result in the creation of any mortgage, pledge, lien, encumbrance or charge upon any of the properties or
assets of the Company or any of its Subsidiaries or the suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to the Company, its business or operations or any of its assets or
properties. 
 4.12 Litigation. Except as set forth on Schedule 4.12 hereto, there is no action, suit, proceeding or investigation
pending or, to the Company’s knowledge, currently threatened against the Company or any of its Subsidiaries that prevents the Company or any of its Subsidiaries from entering into this Agreement or the other Related Agreements, or from
consummating the transactions contemplated hereby or thereby, or which has had, or could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect or any change in the current equity ownership of the Company
or any of its Subsidiaries, nor is the Company aware that there is any basis to assert any of the foregoing. Neither the Company nor any of its Subsidiaries is a party to or subject to the provisions of any order, writ, injunction, judgment or
decree of any court or government agency or instrumentality. There is no action, suit, proceeding or investigation by the Company or any of its Subsidiaries currently pending or which the Company or any of its Subsidiaries intends to initiate.

 4.13 Tax Returns and Payments. Each of the Company and each of its Subsidiaries has timely filed all tax returns (federal, state
and local) required to be filed by it. All taxes shown to be due and payable on such returns, any assessments imposed, and all other taxes due and payable by the Company or any of its Subsidiaries on or before the Closing, have been paid or will be
paid prior to the time they become delinquent. Except as set forth on Schedule 4.13, neither the Company nor any of its Subsidiaries has been advised: 
 (a) that any of its returns, federal, state or other, have been or are being audited as of the date hereof; or 
 (b) of any adjustment, deficiency, assessment or court decision in respect of its federal, state or other taxes. 
  

 9 

 The Company has no knowledge of any liability for any tax to be imposed upon its properties or assets as of the date of
this Agreement that is not adequately provided for. 
 4.14 Employees. Except as set forth on Schedule 4.14, neither the Company nor
any of its Subsidiaries has any collective bargaining agreements with any of its employees. There is no labor union organizing activity pending or, to the Company’s knowledge, threatened with respect to the Company or any of its Subsidiaries.
Except as disclosed in the Exchange Act Filings or on Schedule 4.14, neither the Company nor any of its Subsidiaries is a party to or bound by any currently effective employment contract, deferred compensation arrangement, bonus plan, incentive
plan, profit sharing plan, retirement agreement or other employee compensation plan or agreement. To the Company’s knowledge, no employee of the Company or any of its Subsidiaries, nor any consultant with whom the Company or any of its
Subsidiaries has contracted, is in violation of any term of any employment contract, proprietary information agreement or any other agreement relating to the right of any such individual to be employed by, or to contract with, the Company or any of
its Subsidiaries because of the nature of the business to be conducted by the Company or any of its Subsidiaries; and to the Company’s knowledge the continued employment by the Company and its Subsidiaries of their present employees, and the
performance of the Company’s and its Subsidiaries’ contracts with its independent contractors, will not result in any such violation. Neither the Company nor any of its Subsidiaries is aware that any of its employees is obligated under any
contract (including licenses, covenants or commitments of any nature) or other agreement, or subject to any judgment, decree or order of any court or administrative agency that would interfere with their duties to the Company or any of its
Subsidiaries. Neither the Company nor any of its Subsidiaries has received any notice alleging that any such violation has occurred. Except for employees who have a current effective employment agreement with the Company or any of its Subsidiaries,
no employee of the Company or any of its Subsidiaries has been granted the right to continued employment by the Company or any of its Subsidiaries or to any material compensation following termination of employment with the Company or any of its
Subsidiaries. Except as set forth on Schedule 4.14, the Company is not aware that any officer, key employee or group of employees intends to terminate his, her or their employment with the Company or any of its Subsidiaries, nor does the Company or
any of its Subsidiaries have a present intention to terminate the employment of any officer, key employee or group of employees. 
 4.15
Registration Rights and Voting Rights. Except as set forth on Schedule 4.15 and except as disclosed in Exchange Act Filings, neither the Company nor any of its Subsidiaries is presently under any obligation, and neither the Company nor
any of its Subsidiaries has granted any rights, to register any of the Company’s or its Subsidiaries’ presently outstanding securities or any of its securities that may hereafter be issued. Except as set forth on Schedule 4.15 and except
as disclosed in Exchange Act Filings, to the Company’s knowledge, no stockholder of the Company or any of its Subsidiaries has entered into any agreement with respect to the voting of equity securities of the Company or any of its Subsidiaries.

 4.16 Compliance with Laws; Permits. Neither the Company nor any of its Subsidiaries is in violation of any provision of the
Sarbanes-Oxley Act of 2002 or any SEC related regulation or rule or any rule of the Principal Market (as hereafter defined) promulgated thereunder or any other applicable statute, rule, regulation, order or restriction of any domestic or 

  

 10 

 
foreign government or any instrumentality or agency thereof in respect of the conduct of its business or the ownership of its properties which has had, or
could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. No governmental orders, permissions, consents, approvals or authorizations are required to be obtained and no registrations or declarations are
required to be filed in connection with the execution and delivery of this Agreement or any other Related Agreement and the issuance of any of the Securities, except such as have been duly and validly obtained or filed, or with respect to any
filings that must be made after the Closing, as will be filed in a timely manner. Each of the Company and its Subsidiaries has all material franchises, permits, licenses and any similar authority necessary for the conduct of its business as now
being conducted by it, the lack of which could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 4.17 Environmental and Safety Laws. Neither the Company nor any of its Subsidiaries is in violation of any applicable statute, law or regulation relating to the environment or occupational health and safety, and to its knowledge, no
material expenditures are or will be required in order to comply with any such existing statute, law or regulation. Except as set forth on Schedule 4.17, no Hazardous Materials (as defined below) are used or have been used, stored, or disposed of by
the Company or any of its Subsidiaries or, to the Company’s knowledge, by any other person or entity on any property owned, leased or used by the Company or any of its Subsidiaries. For the purposes of the preceding sentence, “Hazardous
Materials” shall mean: 
 (a) materials which are listed or otherwise defined as “hazardous” or
“toxic” under any applicable local, state, federal and/or foreign laws and regulations that govern the existence and/or remedy of contamination on property, the protection of the environment from contamination, the control of hazardous
wastes, or other activities involving hazardous substances, including building materials; or 
 (b) any petroleum products or
nuclear materials. 
 4.18 Valid Offering. Assuming the accuracy of the representations and warranties of the Purchaser contained in
this Agreement, the offer, sale and issuance of the Securities will be exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), and will have been registered or qualified (or are
exempt from registration and qualification) under the registration, permit or qualification requirements of all applicable state securities laws. 
 4.19 Full Disclosure. Each of the Company and each of its Subsidiaries has provided the Purchaser with all publicly available information requested by the Purchaser in connection with its decision to purchase the Note, including all
information the Company and its Subsidiaries believe is reasonably necessary to make such investment decision. Neither this Agreement, the Related Agreements, the exhibits and schedules hereto and thereto nor any other document delivered by the
Company or any of its Subsidiaries to Purchaser or its attorneys or agents in connection herewith or therewith or with the transactions contemplated hereby or thereby, contain any untrue statement of a material fact nor omit to state a material fact
necessary in order to make the statements contained herein or therein, in light of the circumstances in which they are made, not misleading. Any financial projections and other estimates provided to 

  

 11 

 
the Purchaser by the Company or any of its Subsidiaries were based on the Company’s and its Subsidiaries’ experience in the industry and on
assumptions of fact and opinion as to future events which the Company or any of its Subsidiaries, at the date of the issuance of such projections or estimates, believed to be reasonable. 
 4.20 Insurance. Each of the Company and each of its Subsidiaries has general commercial, product liability, fire and casualty insurance policies
with coverages which the Company believes are customary for companies similarly situated to the Company and its Subsidiaries in the same or similar business. 
 4.21 SEC Reports. Except as set forth on Schedule 4.21, the Company has filed all proxy statements, reports and other documents required to be filed by it under the Securities Exchange Act 1934, as amended (the
“Exchange Act”). The Company has furnished the Purchaser copies of: (i) its Annual Reports on Form 10-KSB for its fiscal year ended September 30, 2006; and (ii) its Quarterly Reports on Form 10-QSB for its fiscal
quarters ended December 31, 2006, March 31, 2007 and June 30, 2007, and the Form 8-K filings which it has made during the fiscal year 2007 to date (collectively, the “SEC Reports”). Except as set forth on
Schedule 4.21, each SEC Report was, at the time of its filing, in substantial compliance with the requirements of its respective form and none of the SEC Reports, nor the financial statements (and the notes thereto) included in the SEC Reports, as
of their respective filing dates, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were
made, not misleading. 
 4.22 Listing. The Company’s Common Stock is listed or quoted, as applicable, on a Principal Market (as
hereafter defined) and satisfies and at all times hereafter will satisfy, all requirements for the continuation of such listing or quotation, as applicable. The Company has not received any notice that its Common Stock will be delisted from, or no
longer quoted on, as applicable, the Principal Market or that its Common Stock does not meet all requirements for such listing or quotation, as applicable. For purposes hereof, the term “Principal Market” means the NASD Over The
Counter Bulletin Board, NASDAQ Capital Market, NASDAQ National Markets System, American Stock Exchange or New York Stock Exchange (whichever of the foregoing is at the time the principal trading exchange or market for the Common Stock). 

4.23 No Integrated Offering. Neither the Company, nor any of its Subsidiaries or affiliates, nor any person acting on its or their behalf, has
directly or indirectly made any offers or sales of any security or solicited any offers to buy any security under circumstances that would cause the offering of the Securities pursuant to this Agreement or any of the Related Agreements to be
integrated with prior offerings by the Company for purposes of the Securities Act which would prevent the Company from selling the Securities pursuant to Rule 506 under the Securities Act, or any applicable exchange-related stockholder approval
provisions, nor will the Company or any of its affiliates or Subsidiaries take any action or steps that would cause the offering of the Securities to be integrated with other offerings. 
 4.24 Stop Transfer. The Securities are restricted securities as of the date of this Agreement. Neither the Company nor any of its Subsidiaries
will issue any stop transfer order or other order impeding the sale and delivery of any of the Securities at such time as the Securities are registered for public sale or an exemption from registration is available, except as required by state and
federal securities laws. 
  

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 4.25 Patriot Act. The Company certifies that, to the best of Company’s knowledge, neither the
Company nor any of its Subsidiaries has been designated, nor is or shall be owned or controlled, by a “suspected terrorist” as defined in Executive Order 13224. The Company hereby acknowledges that the Purchaser seeks to comply with all
applicable laws concerning money laundering and related activities. In furtherance of those efforts, the Company hereby represents, warrants and covenants that: (i) none of the cash or property that the Company or any of its Subsidiaries will
pay or will contribute to the Purchaser has been or shall be derived from, or related to, any activity that is deemed criminal under United States law; and (ii) no contribution or payment by the Company or any of its Subsidiaries to the
Purchaser, to the extent that they are within the Company’s and/or its Subsidiaries’ control shall cause the Purchaser to be in violation of the United States Bank Secrecy Act, the United States International Money Laundering Control Act
of 1986 or the United States International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001. The Company shall promptly notify the Purchaser if any of these representations, warranties or covenants ceases to be true and accurate
regarding the Company or any of its Subsidiaries. The Company shall provide the Purchaser all additional information regarding the Company or any of its Subsidiaries that the Purchaser deems necessary or convenient to ensure compliance with all
applicable laws concerning money laundering and similar activities. The Company understands and agrees that if at any time it is discovered that any of the foregoing representations, warranties or covenants are incorrect, or if otherwise required by
applicable law or regulation related to money laundering or similar activities, the Purchaser may undertake appropriate actions to ensure compliance with applicable law or regulation, including but not limited to segregation and/or redemption of the
Purchaser’s investment in the Company. The Company further understands that the Purchaser may release confidential information about the Company and its Subsidiaries and, if applicable, any underlying beneficial owners, to proper authorities if
the Purchaser, in its sole discretion, determines that it is in the best interests of the Purchaser in light of relevant rules and regulations under the laws set forth in subsection (ii) above. 
 4.26 ERISA. Based upon the Employee Retirement Income Security Act of 1974 (“ERISA”), and the regulations and published
interpretations thereunder: (i) neither the Company nor any of its Subsidiaries has engaged in any Prohibited Transactions (as defined in Section 406 of ERISA and Section 4975 of the Internal Revenue Code of 1986, as amended (the
“Code”)); (ii) each of the Company and each of its Subsidiaries has met all applicable minimum funding requirements under Section 302 of ERISA in respect of its plans; (iii) neither the Company nor any of its
Subsidiaries has any knowledge of any event or occurrence which would cause the Pension Benefit Guaranty Corporation to institute proceedings under Title IV of ERISA to terminate any employee benefit plan(s); (iv) neither the Company nor any of
its Subsidiaries has any fiduciary responsibility for investments with respect to any plan existing for the benefit of persons other than the Company’s or such Subsidiary’s employees; and (v) neither the Company nor any of its
Subsidiaries has withdrawn, completely or partially, from any multi-employer pension plan so as to incur liability under the Multiemployer Pension Plan Amendments Act of 1980. 
  

 13 

 5. Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants
to the Company as follows (such representations and warranties do not lessen or obviate the representations and warranties of the Company set forth in this Agreement): 
 5.1 Incorporation; No Shorting. The Purchaser is a company validly existing and in good standing under the laws of the State of Delaware. The Purchaser or any of its affiliates and investment partners has not,
will not and will not cause any person or entity, to directly engage in “short sales” of the Company’s Common Stock as long as the Note shall be outstanding. 
 5.2 Requisite Power and Authority. The Purchaser has all necessary power and authority under all applicable provisions of law to execute and
deliver this Agreement and the Related Agreements and to carry out their provisions. All corporate action on the Purchaser’s part required for the lawful execution and delivery of this Agreement and the Related Agreements have been or will be
effectively taken prior to the Closing. Upon their execution and delivery, this Agreement and the Related Agreements will be valid and binding obligations of the Purchaser, enforceable in accordance with their terms, except: 
 (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement
of creditors’ rights; and 
 (b) as limited by general principles of equity that restrict the availability of equitable
and legal remedies. 
 5.3 Investment Representations. The Purchaser understands that the Securities are being offered and sold
pursuant to an exemption from registration contained in the Securities Act based in part upon the Purchaser’s representations contained in this Agreement, including, without limitation, that the Purchaser is an “accredited investor”
within the meaning of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”). The Purchaser confirms that it has received or has had full access to all the information it considers necessary or appropriate
to make an informed investment decision with respect to the Note to be purchased by it under this Agreement. The Purchaser further confirms that it has had an opportunity to ask questions and receive answers from the Company regarding the
Company’s and its Subsidiaries’ business, management and financial affairs and the terms and conditions of the Offering, the Note and to obtain additional information (to the extent the Company possessed such information or could acquire
it without unreasonable effort or expense) necessary to verify any information furnished to the Purchaser or to which the Purchaser had access. 
 5.4 The Purchaser Bears Economic Risk. The Purchaser has substantial experience in evaluating and investing in private placement transactions of securities in companies similar to the Company so that it is capable of evaluating the
merits and risks of its investment in the Company and has the capacity to protect its own interests. The Purchaser must bear the economic risk of this investment until the Securities are sold pursuant to: (i) an effective registration statement
under the Securities Act; or (ii) an exemption from registration is available with respect to such sale. 
  

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 5.5 Acquisition for Own Account. The Purchaser is acquiring the Note for the Purchaser’s own
account for investment only, and not as a nominee or agent and not with a view towards or for resale in connection with their distribution. 
 5.6 The Purchaser Can Protect Its Interest. The Purchaser represents that by reason of its, or of its management’s, business and financial experience, the Purchaser has the capacity to evaluate the merits and risks of its
investment in the Note and to protect its own interests in connection with the transactions contemplated in this Agreement and the Related Agreements. Further, the Purchaser is aware of no publication of any advertisement in connection with the
transactions contemplated in the Agreement or the Related Agreements. 
 5.7 Accredited Investor. The Purchaser represents that it is
an accredited investor within the meaning of Regulation D under the Securities Act. 
 6. Covenants of the Company. The Company
covenants and agrees with the Purchaser as follows: 
 6.1 Listing. The Company shall maintain the listing or quotation, as applicable,
of its Common Stock on the Principal Market, and shall comply in all material respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the National Association of Securities Dealers (“NASD”) and
such exchanges, as applicable. 
 6.2 Market Regulations. The Company shall notify the SEC, NASD and applicable state authorities, in
accordance with their requirements, of the transactions contemplated by this Agreement, and shall take all other necessary action and proceedings as may be required and permitted by applicable law, rule and regulation, for the legal and valid
issuance of the Securities to the Purchaser and promptly provide copies thereof to the Purchaser. 
 6.3 Reporting Requirements. The
Company will deliver, or cause to be delivered, to the Purchaser each of the following, which shall be in form and detail acceptable to the Purchaser: 
 (a) As soon as available, and in any event within ninety (90) days after the end of each fiscal year of the Company, each of the Company’s and each of its Subsidiaries’ audited financial statements with
a report of independent certified public accountants of recognized standing selected by the Company (the “Accountants”), which annual financial statements shall be without qualification and shall include each of the Company’s
and each of its Subsidiaries’ balance sheet as at the end of such fiscal year and the related statements of each of the Company’s and each of its Subsidiaries’ income, retained earnings and cash flows for the fiscal year then ended,
prepared on a consolidating and consolidated basis to include the Company, each Subsidiary of the Company and each of their respective affiliates, all in reasonable detail and prepared in accordance with GAAP, together with (i) if and when
available, copies of any management letters prepared by the Accountants; and (ii) a certificate of the Company’s President, Chief Executive Officer or Chief Financial Officer stating that such financial statements have been prepared in
accordance with GAAP and whether or not such officer has knowledge of the occurrence of any Event of Default (as defined in the Note) and, if so, stating in reasonable detail the facts with respect thereto; 
  

 15 

 (b) As soon as available and in any event within forty five (45) days after the end
of each fiscal quarter of the Company, an unaudited/internal balance sheet and statements of income, retained earnings and cash flows of the Company and each of its Subsidiaries as at the end of and for such quarter and for the year to date period
then ended, prepared on a consolidating and consolidated basis to include all the Company, each Subsidiary of the Company and each of their respective affiliates, in reasonable detail and stating in comparative form the figures for the corresponding
date and periods in the previous year, all prepared in accordance with GAAP, subject to year-end adjustments and accompanied by a certificate of the Company’s President, Chief Executive Officer or Chief Financial Officer, stating (i) that
such financial statements have been prepared in accordance with GAAP, subject to year-end audit adjustments, and (ii) whether or not such officer has knowledge of the occurrence of any Event of Default (as defined in the Note) not theretofore
reported and remedied and, if so, stating in reasonable detail the facts with respect thereto; 
 (c) As soon as available and
in any event within fifteen (15) days after the end of each calendar month, an unaudited/internal balance sheet and statements of income, retained earnings and cash flows of each of the Company and its Subsidiaries as at the end of and for such
month and for the year to date period then ended, prepared on a consolidating and consolidated basis to include the Company, each Subsidiary of the Company and each of their respective affiliates, in reasonable detail and stating in comparative form
the figures for the corresponding date and periods in the previous year, all prepared in accordance with GAAP, subject to year-end adjustments and accompanied by a certificate of the Company’s President, Chief Executive Officer or Chief
Financial Officer, stating (i) that such financial statements have been prepared in accordance with GAAP, subject to year-end audit adjustments, and (ii) whether or not such officer has knowledge of the occurrence of any Event of Default
(as defined in the Note) not theretofore reported and remedied and, if so, stating in reasonable detail the facts with respect thereto; 
 (d) The Company shall timely file with the SEC all reports required to be filed pursuant to the Exchange Act and refrain from terminating its status as an issuer required by the Exchange Act to file reports thereunder
even if the Exchange Act or the rules or regulations thereunder would permit such termination. Promptly after (i) the filing thereof, copies of the Company’s most recent registration statements and annual, quarterly, monthly or other
regular reports which the Company files with the Securities and Exchange Commission (the “SEC”), and (ii) the issuance thereof, copies of such financial statements, reports and proxy statements as the Company shall send to its
stockholders; and 
 (e) The Company shall deliver, or cause the applicable Subsidiary of the Company to deliver, such other
information as the Purchaser shall reasonably request. 
  

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 6.4 Use of Funds. The Company shall use the proceeds of the sale of the Note for general working
capital purposes only. 
 6.5 Access to Facilities. Each of the Company and each of its Subsidiaries will permit any representatives
designated by the Purchaser (or any successor of the Purchaser), upon reasonable notice and during normal business hours, at such person’s expense and accompanied by a representative of the Company or any Subsidiary (provided that no such prior
notice shall be required to be given and no such representative of the Company or any Subsidiary shall be required to accompany the Purchaser in the event the Purchaser believes such access is necessary to preserve or protect the Collateral (as
defined in each Security Document) or following the occurrence and during the continuance of an Event of Default (as defined in the Note)), to: 
 (a) visit and inspect any of the properties of the Company or any of its Subsidiaries; 
 (b)
examine the corporate and financial records of the Company or any of its Subsidiaries (unless such examination is not permitted by federal, state or local law or by contract) and make copies thereof or extracts therefrom; and 
 (c) discuss the affairs, finances and accounts of the Company or any of its Subsidiaries with the directors, officers and independent
accountants of the Company or any of its Subsidiaries. 
 Notwithstanding the foregoing, neither the Company nor any of its Subsidiaries will provide any
material, non-public information to the Purchaser unless the Purchaser signs a confidentiality agreement and otherwise complies with Regulation FD, under the federal securities laws. 
 6.6 Taxes. Each of the Company and each of its Subsidiaries will promptly pay and discharge, or cause to be paid and discharged, when due and
payable, all taxes, assessments and governmental charges or levies imposed upon the income, profits, property or business of the Company and its Subsidiaries; provided, however, that any such tax, assessment, charge or levy need not be paid
currently if (i) the validity thereof shall currently and diligently be contested in good faith by appropriate proceedings, (ii) such tax, assessment, charge or levy shall have no effect on the lien priority of the Purchaser in any
property of the Company or any of its Subsidiaries and (iii) if the Company and/or such Subsidiary shall have set aside on its books adequate reserves with respect thereto in accordance with GAAP; and provided, further, that the
Company and its Subsidiaries will pay all such taxes, assessments, charges or levies forthwith upon the commencement of proceedings to foreclose any lien which may have attached as security therefor. 
 6.7 Insurance. Each of the Company and its Subsidiaries will keep its assets which are of an insurable character insured by financially sound and
reputable insurers against loss or damage by fire, explosion and other risks customarily insured against by companies in similar business similarly situated as the Company and its Subsidiaries; and the Company and its Subsidiaries will maintain,
with financially sound and reputable insurers, insurance against other hazards and risks and liability to persons and property to the extent and in the manner which the 

  

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Company reasonably believes is customary for companies in similar business similarly situated as the Company and its Subsidiaries and to the extent available
on commercially reasonable terms. The Company, and each of its Subsidiaries, will jointly and severally bear the full risk of loss from any loss of any nature whatsoever with respect to the assets pledged to the Purchaser as security for their
respective obligations hereunder and under the Related Agreements. At the Company’s and each of its Subsidiaries’ joint and several cost and expense in amounts and with carriers reasonably acceptable to the Purchaser, each of the Company
and each of its Subsidiaries shall (i) keep all its insurable properties and properties in which it has an interest insured against the hazards of fire, flood, sprinkler leakage, those hazards covered by extended coverage insurance and such
other hazards, and for such amounts, as is customary in the case of companies engaged in businesses similar to the Company’s or the respective Subsidiary’s including business interruption insurance; (ii) maintain a bond in such
amounts as is customary in the case of companies engaged in businesses similar to the Company’s or the respective Subsidiary’s insuring against larceny, embezzlement or other criminal misappropriation of insured’s officers and
employees who may either singly or jointly with others at any time have access to the assets or funds of the Company or any of its Subsidiaries either directly or through governmental authority to draw upon such funds or to direct generally the
disposition of such assets; (iii) maintain public and product liability insurance against claims for personal injury, death or property damage suffered by others; (iv) maintain all such worker’s compensation or similar insurance as
may be required under the laws of any state or jurisdiction in which the Company or the respective Subsidiary is engaged in business; and (v) furnish the Purchaser with (x) copies of all policies and evidence of the maintenance of such
policies at least thirty (30) days before any expiration date, (y) excepting the Company’s workers’ compensation policy, endorsements to such policies naming the Purchaser as “co-insured” or “additional
insured” and appropriate loss payable endorsements in form and substance satisfactory to the Purchaser, naming the Purchaser as loss payee, and (z) evidence that as to the Purchaser the insurance coverage shall not be impaired or
invalidated by any act or neglect of the Company or any Subsidiary and the insurer will provide the Purchaser with at least thirty (30) days notice prior to cancellation. The Company and each Subsidiary shall instruct the insurance carriers
that in the event of any loss thereunder, the carriers shall make payment for such loss to the Company and/or the Subsidiary and the Purchaser jointly. In the event that as of the date of receipt of each loss recovery upon any such insurance, the
Purchaser has not declared an event of default with respect to this Agreement or any of the Related Agreements, then the Company and/or such Subsidiary shall be permitted to direct the application of such loss recovery proceeds toward investment in
property, plant and equipment that would comprise “Collateral” secured by the Purchaser’s security interest pursuant to any Security Document, with any surplus funds to be applied toward payment of the obligations of the Company to
the Purchaser. In the event that the Purchaser has properly declared an event of default with respect to this Agreement or any of the Related Agreements, then all loss recoveries received by the Purchaser upon any such insurance thereafter may be
applied to the obligations of the Company hereunder and under the Related Agreements, in such order as the Purchaser may determine. Any surplus (following satisfaction of all Company obligations to the Purchaser) shall be paid by the Purchaser to
the Company or applied as may be otherwise required by law. Any deficiency thereon shall be paid by the Company or the Subsidiary, as applicable, to the Purchaser, on demand. 
 6.8 Intellectual Property. Each of the Company and each of its Subsidiaries shall maintain in full force and effect its existence, rights and
franchises and all licenses and other rights to use Intellectual Property owned or possessed by it and reasonably deemed to be necessary to the conduct of its business. 
  

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 6.9 Properties. Each of the Company and each of its Subsidiaries will keep its properties in good
repair, working order and condition, reasonable wear and tear excepted, and from time to time make all needful and proper repairs, renewals, replacements, additions and improvements thereto; and each of the Company and each of its Subsidiaries will
at all times comply with each provision of all leases to which it is a party or under which it occupies property if the breach of such provision could, either individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect. 
 6.10 Confidentiality. The Company will not, and will not permit any of its Subsidiaries to, disclose, and will not include
in any public announcement, the name of the Purchaser, unless expressly agreed to by the Purchaser or unless and until such disclosure is required by law or applicable regulation, and then only to the extent of such requirement. Notwithstanding the
foregoing, the Company may disclose the Purchaser’s identity and the terms of this Agreement to its current and prospective debt and equity financing sources. 
 6.11 Required Approvals. (I) The Company, without the prior written consent of the Purchaser, shall not, and shall not permit any of its Subsidiaries to: 
 (a) (i) directly or indirectly declare or pay any dividends, other than dividends paid to the Company or any other Credit Party,
(ii) issue any preferred stock that is manditorily redeemable prior to the earlier to occur of (x) the six month anniversary of the Maturity Date (as defined in the Note) and (y) the date upon which all Obligations (as defined in each
Security Document) of the Company and its Subsidiaries arising under this Agreement and/or the Related Agreements shall have been indefeasibly satisfied in full or (iii) redeem any of its preferred stock or other equity interests; 

(b) liquidate, dissolve or effect a material reorganization (it being understood that in no event shall the Company or any of its
Subsidiaries dissolve, liquidate or merge with any other person or entity (unless, in the case of such a merger, the Company or, in the case of merger not involving the Company, such other Credit Party or, if no Credit Party is involved, such
Subsidiary, as applicable, is the surviving entity); 
 (c) become subject to (including, without limitation, by way of
amendment to or modification of) any agreement or instrument which by its terms would (under any circumstances) restrict the Company’s or any of its Subsidiaries, right to perform the provisions of this Agreement, any Related Agreement or any
of the agreements contemplated hereby or thereby; 
 (d) materially alter or change the nature of the business of the Company
and its Subsidiaries taken as a whole away from the biotechnology industry as reasonably determined by the Purchaser; or 
 (e) (i) create, incur, assume or suffer to exist any indebtedness (exclusive of trade debt and debt incurred to finance the purchase of equipment (not in excess of five percent (5%) of the fair market value of the Company’s and
its Subsidiaries’ assets)) 

  

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whether secured or unsecured other than (x) the Company’s obligations owed to the Purchaser, (y) indebtedness set forth on Schedule 6.11(I)(e)
attached hereto and made a part hereof and any refinancings or replacements thereof on terms no less favorable to the Purchaser than the indebtedness being refinanced or replaced, and (z) any indebtedness incurred in connection with the
purchase of assets (other than equipment) in the ordinary course of business, or any refinancings or replacements thereof on terms no less favorable to the Purchaser than the indebtedness being refinanced or replaced, so long as any lien relating
thereto shall only encumber the fixed assets so purchased and no other assets of the Company or any of its Subsidiaries; (ii) cancel any indebtedness owing to it in excess of $50,000 in the aggregate during any 12 month period;
(iii) assume, guarantee, endorse or otherwise become directly or contingently liable in connection with any obligations of any other person or entity, except the endorsement of negotiable instruments by the Company or any Credit Party for
deposit or collection or similar transactions in the ordinary course of business or guarantees of indebtedness otherwise permitted to be outstanding pursuant to this clause (e); 
 (f) purchase or hold beneficially any Stock or other securities or evidences of indebtedness of, make or permit to exist any loans or
advances to, or make any investment or acquire any interest whatsoever in, any other Person, including any partnership or joint venture, except (x) travel advances, (y) loans to its and its Subsidiaries’ officers and employees not
exceeding at any one time an aggregate of $10,000, and (z) loans or advances to any Credit Parties (as used herein, “Stock” means all certificated and uncertificated shares, options, warrants, membership interests, general or
limited partnership interests, participation or other equivalents (regardless of how designated) of or in a corporation, partnership, limited liability company or equivalent entity whether voting or nonvoting, including common stock, preferred
stock, or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under the Securities Exchange Act of 1934)); 
 (g) except for the commercialization agreement between the Company and the Parent as in effect on the date hereof enter into any
transaction with any employee, director or Affiliate, except in the ordinary course on arms-length terms (as used herein (x) “Affiliate” means, with respect to any Person, (a) any other Person (other than a Subsidiary)
which, directly or indirectly, is in control of, is controlled by, or is under common control with such Person or (b) any other Person who is a director or officer (i) of such Person, (ii) of any Subsidiary of such Person or
(iii) of any Person described in clause (a) above. For the purposes of this definition, control of a Person shall mean the power (direct or indirect) to direct or cause the direction of the management and policies of such Person whether by
contract or otherwise and (y) “Person” means any individual, sole proprietorship, partnership, limited liability partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability
company, institution, public benefit corporation, entity or government (whether federal, state, county, city, municipal or otherwise, including any instrumentality, division, agency, body or department thereof), and shall include such Person’s
successors and assigns); and 
 (h) sell, lease, transfer or otherwise dispose of any of its properties or assets, or any of
the properties or assets of its Subsidiaries, except for (1) sales, leases, transfer 

  

 20 

 
or dispositions by any Credit Party to any other Credit Party, (2) the sale of Inventory (as defined in the Master Security Agreement) in the ordinary
course of business and (3) the disposition or transfer in the ordinary course of business during any fiscal year of obsolete and worn-out Equipment (as defined in the Master Security Agreement) and only to the extent that (x) the proceeds
of any such disposition are used to acquire replacement Equipment which is subject to the Purchaser’s first priority security interest or are used to repay the Purchaser or to pay general corporate expenses, or (y) following the occurrence
of an Event of Default (as defined in the Note) which continues to exist, the proceeds of which are remitted to the Purchaser to be held as cash collateral for the Obligations (as defined in each Security Document). 
 (II) The Company, without the prior written consent of the Purchaser, shall not, and shall not permit any of its Subsidiaries to, create or acquire any
Subsidiary after the date hereof unless (i) such Subsidiary is a wholly-owned Subsidiary of the Company or an international Subsidiary (which may have shareholders) and (ii) except for international Subsidiaries referenced in
(i) above, each such Subsidiary becomes a party to each Security Document, (either by executing a counterpart thereof or an assumption or joinder agreement in respect thereof) and enters into a stock pledge agreement and a subsidiary guaranty,
each in form and substance satisfactory to the Purchaser, and, to the extent required by the Purchaser, satisfies each condition of this Agreement and the Related Agreements as if such Subsidiary were a Subsidiary on the Closing Date. It is agreed
and understood that to the extent that any international Subsidiary that is created or acquired after the date hereof is a non-Credit Party (each, a “New Non-Credit Party Subsidiary”), the capitalization of such New Non-Credit Party
Subsidiary shall come from sources other than the Company or any of its other Subsidiaries. Furthermore, the Company and its Subsidiaries (other than the New Non-Credit Party Subsidiaries) shall otherwise be prohibited from investing in, lending to,
contributing and/or transferring any assets to and/or providing any form of financial assistance to, whether directly or indirectly, such New Non-Credit Party Subsidiary; provided that this prohibition does not limit the Company or a New Non-Credit
Party Subsidiary from entering into a license agreement (to be negotiated on an arm’s length basis) to sell its instrumentation internationally on a cost plus basis. 
 6.12 Opinion. On the Closing Date, the Company will deliver to the Purchaser an opinion acceptable to the Purchaser from the Company’s in-house legal counsel. 
 6.13 Margin Stock. The Company will not permit any of the proceeds of the Note to be used directly or indirectly to “purchase” or
“carry” “margin stock” or to repay indebtedness incurred to “purchase” or “carry” “margin stock” within the respective meanings of each of the quoted terms under Regulation U of the Board of
Governors of the Federal Reserve System as now and from time to time hereafter in effect. 
 6.14 Intentionally Omitted. 
 (a) Intentionally Omitted. 
 7. Covenants of the Purchaser. The Purchaser covenants and agrees with the Company as follows: 
 7.1 Confidentiality.
The Purchaser will not disclose, and will not include in any public announcement, the name of the Company, unless expressly agreed to by the Company or unless and until such disclosure is required by law or applicable regulation, and then only to
the extent of such requirement. 
  

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 7.2 Non-Public Information. The Purchaser will not effect any sales in the shares of the
Company’s Common Stock while in possession of material, non-public information regarding the Company if such sales would violate applicable securities law. 
 7.3 Limitation on Acquisition of Common Stock of the Company. Notwithstanding anything to the contrary contained in this Agreement, any Related Agreement or any document, instrument or agreement entered into in
connection with any other transactions between the Purchaser and the Company, the Purchaser may not acquire stock in the Company (including, without limitation, pursuant to a contract to purchase, by exercising an option or warrant, by converting
any other security or instrument, by acquiring or exercising any other right to acquire, shares of stock or other security convertible into shares of stock in the Company, or otherwise, and such contracts, options, warrants, conversion or other
rights shall not be enforceable or exercisable) to the extent such stock acquisition would cause any interest payable by the Company to the Purchaser not to qualify as “portfolio interest” within the meaning of Section 881(c)(2) of
the Code, by reason of Section 881(c)(3) of the Code, taking into account the constructive ownership rules under Section 871(h)(3)(C) of the Code (the “Stock Acquisition Limitation”). The Stock Acquisition Limitation shall
automatically become null and void without any notice to the Company upon the earlier to occur of either (a) the Company’s delivery to the Purchaser of a Notice of Prepayment (as defined in the Note) or (b) the existence of an Event
of Default (as defined in the Note) at a time when the average closing price of the Company’s common stock as reported by Bloomberg, L.P. on the Principal Market for the immediately preceding five trading days is greater than or equal to $1.65.

 8. Covenants of the Company and the Purchaser Regarding Indemnification. 
 8.1 Company Indemnification. The Company agrees to indemnify, hold harmless, reimburse and defend the Purchaser, each of the Purchaser’s
officers, directors, agents, affiliates, control persons, and principal shareholders, against all claims, costs, expenses, liabilities, obligations, losses or damages (including reasonable legal fees) of any nature, incurred by or imposed upon the
Purchaser which result, arise out of or are based upon: (i) any misrepresentation by the Company or any of its Subsidiaries or breach of any warranty by the Company or any of its Subsidiaries in this Agreement, any other Related Agreement or in
any exhibits or schedules attached hereto or thereto; or (ii) any breach or default in performance by Company or any of its Subsidiaries of any covenant or undertaking to be performed by Company or any of its Subsidiaries hereunder, under any
other Related Agreement or any other agreement entered into by the Company and/or any of its Subsidiaries and the Purchaser relating hereto or thereto. 
 8.2 Purchaser’s Indemnification. The Purchaser agrees to indemnify, hold harmless, reimburse and defend the Company and each of the Company’s officers, directors, agents, affiliates, control persons
and principal shareholders, at all times against any claims, costs, expenses, liabilities, obligations, losses or damages (including reasonable legal fees) of 

  

 22 

 
any nature, incurred by or imposed upon the Company which result, arise out of or are based upon: (i) any misrepresentation by the Purchaser or breach
of any warranty by the Purchaser in this Agreement or in any exhibits or schedules attached hereto or any Related Agreement; or (ii) any breach or default in performance by the Purchaser of any covenant or undertaking to be performed by the
Purchaser hereunder, or any other agreement entered into by the Company and the Purchaser relating hereto. 
 9. Intentionally
Omitted. 
 9.1 Intentionally Omitted. 
 10. Intentionally Omitted. 
 10.1 Intentionally Omitted. 
 10.2 Intentionally Omitted. 
 11.
Miscellaneous. 
 11.1 Governing Law, Jurisdiction and Waiver of Jury Trial. 
 (a) THIS AGREEMENT AND THE OTHER RELATED AGREEMENTS SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. 
 (b) THE PARTIES HEREBY CONSENT AND AGREE THAT THE STATE OR FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE COMPANY, ON THE ONE
HAND, AND THE PURCHASER, ON THE OTHER HAND, PERTAINING TO THIS AGREEMENT OR ANY OF THE RELATED AGREEMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY OF THE OTHER RELATED AGREEMENTS; PROVIDED, THAT THE PURCHASER AND
THE COMPANY ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF NEW YORK; AND FURTHER PROVIDED, THAT, NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR
OPERATE TO PRECLUDE THE PURCHASER FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL (AS DEFINED IN EACH SECURITY DOCUMENT) OR ANY OTHER SECURITY FOR THE OBLIGATIONS (AS
DEFINED IN EACH SECURITY DOCUMENT), OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE PURCHASER. THE COMPANY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND THE
COMPANY HEREBY WAIVES ANY OBJECTION THAT IT MAY HAVE 

  

 23 

 
BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS. THE COMPANY HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT
AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO THE COMPANY AT THE ADDRESS SET FORTH IN SECTION 11.9 AND THAT SERVICE
SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE COMPANY’S ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE PREPAID. 
 (c) THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST
COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN
THE PURCHASER AND/OR THE COMPANY ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT, ANY OTHER RELATED AGREEMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO.

 11.2 Severability. Wherever possible each provision of this Agreement and the Related Agreements shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision of this Agreement or any Related Agreement shall be prohibited by or invalid or illegal under applicable law such provision shall be ineffective to the extent of such
prohibition or invalidity or illegality, without invalidating the remainder of such provision or the remaining provisions thereof which shall not in any way be affected or impaired thereby. 
 11.3 Survival. The representations, warranties, covenants and agreements made herein shall survive any investigation made by the Purchaser and the
closing of the transactions contemplated hereby to the extent provided therein. All statements as to factual matters contained in any certificate or other instrument delivered by or on behalf of the Company pursuant hereto in connection with the
transactions contemplated hereby shall be deemed to be representations and warranties by the Company hereunder solely as of the date of such certificate or instrument. All indemnities set forth herein and all rights to payment set forth in the
Royalty Agreement shall survive the execution, delivery and termination of this Agreement and the Note and the making and repayment of the obligations arising hereunder, under the Note and under the other Related Agreements. 
 11.4 Successors. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the
successors, heirs, executors and administrators of the parties hereto and shall inure to the benefit of and be enforceable by each person or entity which shall be a holder of the Securities from time to time, other than the holders of Common Stock
which has been sold by the Purchaser pursuant to Rule 144 or an 

  

 24 

 
effective registration statement. The Purchaser shall not be permitted to assign its rights hereunder or under any Related Agreement to a competitor of the
Company unless an Event of Default (as defined in the Note) has occurred and is continuing. 
 11.5 Entire Agreement; Maximum
Interest. This Agreement, the Related Agreements, the exhibits and schedules hereto and thereto and the other documents delivered pursuant hereto constitute the full and entire understanding and agreement between the parties with regard to the
subjects hereof and no party shall be liable or bound to any other in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein and therein. Nothing contained in this Agreement, any Related
Agreement or in any document referred to herein or delivered in connection herewith shall be deemed to establish or require the payment of a rate of interest or other charges in excess of the maximum rate permitted by applicable law. In the event
that the rate of interest or dividends required to be paid or other charges hereunder exceed the maximum rate permitted by such law, any payments in excess of such maximum shall be credited against amounts owed by the Company to the Purchaser and
thus refunded to the Company. 
 11.6 Amendment and Waiver. 
 (a) This Agreement may be amended or modified only upon the written consent of the Company and the Purchaser. 
 (b) The obligations of the Company and the rights of the Purchaser under this Agreement may be waived only with the written consent of the
Purchaser. 
 (c) The obligations of the Purchaser and the rights of the Company under this Agreement may be waived only with
the written consent of the Company. 
 11.7 Delays or Omissions. It is agreed that no delay or omission to exercise any right, power
or remedy accruing to any party, upon any breach, default or noncompliance by another party under this Agreement or the Related Agreements, shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach,
default or noncompliance, or any acquiescence therein, or of or in any similar breach, default or noncompliance thereafter occurring. All remedies, either under this Agreement or the Related Agreements, by law or otherwise afforded to any party,
shall be cumulative and not alternative. 
 11.8 Notices. All notices required or permitted hereunder shall be in writing and shall be
deemed effectively given: 
 (a) upon personal delivery to the party to be notified; 
 (b) when sent by confirmed facsimile if sent during normal business hours of the recipient, if not, then on the next business day;

 (c) three (3) business days after having been sent by registered or certified mail, return receipt requested, postage
prepaid; or 
  

 25 

 (d) one (1) day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt. 
 All communications shall be sent as follows: 
  

			
	If to the Company, to:	  	 Biovest International, Inc.
 377 Plantation Street

 Worcester, MA 01605
 Attention: Chief Financial
Officer
 Facsimile: 813-258-6912

		
		  	with a copy to:
		
		  	 Nixon Peabody LLP
 401 Ninth Street, N.W., Suite 900

 Washington, DC 20004
 Attention: Herbert F. Stevens,
Esq.
 Facsimile: 202-585-8080

		
	If to the Purchaser, to:	  	 Valens U.S. SPV I, LLC
 c/o Valens Capital Management
LLC
 335 Madison Avenue
 10th Floor
 New York, New York 10017
 Attention: Portfolio Services
 Facsimile: 212-581-5037

		
		  	With a copy to:
		
		  	 Scott J. Giordano, Esq.
 Loeb & Loeb
LLP
 345 Park Avenue
 New York, New York 10154
 Facsimile: 212-407-4990

 or at such other address as the Company or the Purchaser may designate by written notice to the other parties
hereto given in accordance herewith. 
 11.9 Attorneys’ Fees. In the event that any suit or action is instituted to enforce any
provision in this Agreement or any Related Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any right of such prevailing party under or with respect to this
Agreement and/or such Related Agreement, including, without limitation, such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of appeals. 
 11.10 Titles and Subtitles. The titles of the sections and subsections of this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement. 
  

 26 

 11.11 Facsimile Signatures; Counterparts. This Agreement may be executed by facsimile signatures
and in any number of counterparts, each of which shall be an original, but all of which together shall constitute one agreement. 
 11.12
Broker’s Fees. Except as set forth on Schedule 11.12 hereof, each party hereto represents and warrants that no agent, broker, investment banker, person or firm acting on behalf of or under the authority of such party hereto is or will be
entitled to any broker’s or finder’s fee or any other commission directly or indirectly in connection with the transactions contemplated herein. Each party hereto further agrees to indemnify each other party for any claims, losses or
expenses incurred by such other party as a result of the representation in this Section 11.12 being untrue. 
 11.13
Construction. Each party acknowledges that its legal counsel participated in the preparation of this Agreement and the Related Agreements and, therefore, stipulates that the rule of construction that ambiguities are to be resolved against the
drafting party shall not be applied in the interpretation of this Agreement or any Related Agreement to favor any party against the other. 
 [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 
  

 27 

 IN WITNESS WHEREOF, the parties hereto have executed the NOTE PURCHASE AGREEMENT as of the date set forth in the first
paragraph hereof. 
  

									
	COMPANY:	 		 	PURCHASER:
			
	BIOVEST INTERNATIONAL, INC.	 		 	VALENS U.S. SPV I, LLC
					
	By:	 	 /s/ Steven Arikian
	 		 	By:	 	Valens Capital Management, LLC, its investment manager
	Name:	 	/s/ Steven Arikian, M.D.	 		 	Name:	 	/s/ Patrick Regan
	Title:	 	Chairman & CEO	 		 	Title:	 	Authorized Signatory

  

 28 

 EXHIBIT A 
 FORM OF SECURED PROMISSORY NOTE 

 EXHIBIT B 
 FORM OF ESCROW AGREEMENT

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