Notice of Exercise of Option to Terminate Services under Royalty Stream Purchase Agreement – Accentia Biopharmaceuticals, Inc. and Pharmaco Investments, Inc.

Summary

Accentia Biopharmaceuticals, Inc. notifies Pharmaco Investments, Inc. and Pharmaceutical Product Development, Inc. that it is exercising its option to terminate their services, effective December 28, 2006, as allowed under an amended Royalty Stream Purchase Agreement. Pharmaco is requested to provide an invoice for costs incurred up to the termination date. Upon payment, the royalty stream rate will be reduced to 7%, as specified in the agreement.

EX-10.160 17 dex10160.htm NOTICE OF EXERCISE Notice of Exercise

EXHIBIT 10.161

December 15, 2006

Pharmaco Investments, Inc.

Pharmaceutical Product Development, Inc.

3151 S. 17^th Street

Wilmington NC 28412

Attn: Fred Eshelman, CEO

Sent via Electronic Mail and Federal Express

Re:

Amendment No. 1 to the First Amended and Restated Royalty Stream Purchase Agreement;

Notice of Exercise of Option to Terminate Services

Dear Mr. Eshelman:

Pursuant to paragraph 5 of Amendment No. 1 to the First Amended and Restated Royalty Stream Purchase Agreement dated as of September 26, 2006 (the “Amendment”), notice is hereby given that Accentia Biopharmaceuticals, Inc. elects to exercise its option to terminate the services of Pharmaco Investments, Inc. (“PPD”) and Pharmaceutical Products Development, Inc. (“PPDI”), effective as of the close of business on December 28, 2006 (the “Termination Date”).

Please forward your invoice for the Fully-Loaded Cost incurred by PPD through the Termination Date, as defined in the Amendment. As provided by the terms of the Amendment, upon payment of that invoice the amount of the Royalty Stream as defined in the applicable agreements shall be reduced to seven percent (7%).

If you should have any questions with regard to this matter, please don’t hesitate to contact me.

Very truly yours,

/s/ Frank O’Donnell

Frank O’Donnell, M.D.

Chairman & CEO

Cc:

Sam Duffey, Esq.

Alan Pearce

324 S. Hyde Park Avenue

Suite 350

Tampa, FL 33606

PH: (813) ###-###-#### FAX: (813) ###-###-####