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Secured Promissory Note

 

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Title:

Secured Promissory Note

Entities:

Accentia, Inc.; Biovest International Inc

Date:

2003

Size:

Preview shows 5KB of 21KB total

Price:

$41

ID:

#1263750

 

 

► Loans ► Promissory Notes ► Secured Promissory Notes

 

 

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                             SECURED PROMISSORY NOTE


THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE

SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAW OF ANY STATE

AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT

PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND

APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE

EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH

LAWS.


$460,000.00 June 16, 2003

New York, NY

FOR VALUE RECEIVED, the receipt of which is hereby acknowledged, BIOVEST

INTERNATIONAL, INC., a Delaware corporation having its corporate office at 8500

Evergreen Blvd., Minneapolis MN 55433 (the "Company"), hereby promises to pay to

the order of Peter J. Pappas, Sr. having an address at c/o PJ Mechanical, 135 W.

18th Street, Second Floor, New York, N.Y. 10011 ("Holder"), or such other

address as Holder may notify the Company, the principal sum of $460,000.00 (the

"Principal"), together with interest thereon, as follows:



<PAGE>

1. Predecessor Notes. Reference is made to those certain Promissory Notes

dated January 13, 2003 and February 26, 2003 issued by the Company in favor

of Holder in principal amount equal to the Principal (the "Predecessor

Notes"). Holder agrees that by Holder's acceptance of this Note, Holder

hereby confirms its agreement to modification and extension of the

Predecessor Notes to the terms of this Note and agrees that the Company

shall have no further obligations under and/or with respect to the

Predecessor Notes which Holder has delivered to the Company for

modification concurrently with the issuance of this Note, except that any

Warrants issued in conjunction with the Predecessor Notes shall remain

outstanding. In connection with this Note, 200,000 Warrants currently

priced at $0.50 per share shall be repriced to $0.25 per share.


2. Accrual of Interest. Interest shall accrue on the outstanding balance of

Principal from the date of the Predecessor Notes and from time to time at

the rate of seven percent (7%) per annum. No payment of interest shall be

due until maturity.

3. Maturity. The Principal amount due under this Note shall become immediately

due and payable to Holder automatically and without further action or

notice on the part of Holder, on the date that is the third (3rd) annual

anniversary of the date of the Closing of the Investment Agreement between

Accentia and BioVest (the "Maturity Date").

4. Prepayment. All payments due under this Note shall be made by check payable

to HOLDER. The Company, at its option, may prepay this Note at any time

upon thirty

2
<PAGE>

(30) days notice in whole or in part without premium or penalty, subject to

HOLDER's right to convert the sums due hereunder to equity as set forth in

paragraph (6) herein.

5. Collateral. (a) In order to secure (i) the due and punctual payment of all

monetary obligations hereunder of the Company to Holder and any reasonable

costs and expenses (including, but not limited to, all legal fees and

expenses) of collection or enforcement of any such obligations and (ii) the

due and punctual payment of any costs and expenses incurred in connection

with the realization of the security of which this Note provides and any

reasonable costs and expenses (including, but not limited to, all legal

fees and expenses) incurred in connection with any proceedings to which

this Note may give rise (collectively referred to herein as "Liabilities"),

the Company hereby transfers, assigns, grants, bestows, sells, conveys and


 

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