Document:

Exhibit
10.69

    

    August
2009 Material Evaluation Agreement with Biken

    

    Material
Evaluation Agreement

    

    This
Agreement is made by and between Hemispherx Biopharma, Inc. (hereinafter
referred to as “Hemispherx”) and The Research
Foundation for Microbial Diseases of Osaka University (hereinafter referred to
as “Biken”).

     

    RECITALS

    

    WHEREAS, Hemispherx owns
intellectual property rights relating to poly I: poly C12U, with
the trade name of Ampligen® and
possesses proprietary rights and know-how relating to the manufacture and
production of Ampligen®;
and

    

    WHEREAS, Biken is a
manufacturer of biologicals in Japan, and has been engaged for many years mainly
in the research and development and manufacture of a variety of
infection-prophylactic vaccine products for human use.  As part of the
work activities relating to a research project entitled “The Research Project on
Clinical Application of the Influenza Virus Vaccine in the Intranasal Dosage
Form for Mucosal Administration” (hereinafter referred to as the “Research Project”), which is
subsidized by the Japanese Ministry of Health, Labor and Welfare (hereinafter
referred to as the
MHLW”) and in which the National Institute of Infectious Diseases of
Japan (hereinafter referred to as the “NIID”) plays a main part and
Biken also participates as one of the researchers and during and in the course
of which, at the end of each fiscal year research results obtained thereby are
to be compiled by the NIID into an annual research report that will be submitted
to the MHLW and subsequently placed for public view,
Biken has an intention to evaluate the functional capability of Ampligen® in
serving as an adjuvant to induce mucosal immune response.  In
addition, Biken owns jointly with the NIID the intellectual property rights
relating to the “Novel Vaccine Containing Adjuvant Capable of Inducing Mucosal
Immunity”, which is the object substance of the Research Project, and possesses
the technical know-how to prepare prototypes of such adjuvanted vaccine
preparation for experimental and research purposes.

    

    NOW THEREFORE, in
consideration of the mutual covenants and agreements made herein, and for other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties agrees as follows:

    

    1.  
OBJECTIVE

    The
objective of this Agreement is to set forth the terms and conditions under
which, as described in the Evaluation Program outlined in Exhibit 1 hereof,
Biken evaluates Ampligen®
primarily from the aspects of both adjuvant-function as induction of
satisfactory mucosal immune response and its safety, in collaboration with the
Co-Researcher, by using the Prototype Vaccine Preparation as defined in
Paragraph (6) of Article 2 hereof (hereinafter referred to as the “Evaluation”), in order to
select candidates of both viral-antigens and adjuvant-auxiliaries which are
identified as the most promising substances and determine the formulations of
potential influenza virus vaccine candidates containing such viral-antigens as
the active ingredients and such adjuvant-auxiliaries as well as other base
material(s), during and in the course of the Research Project aimed at practical
use of a newly developed adjuvanted-influenza virus vaccine which is capable of
inducing a cross-protective immunity against  new influenza viruses
with new pandemic potential.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    2.   DEFINITIONS

    
      	
              (1)

            	
              “Ampligen®” shall mean poly I:
      poly C12U.

            

    

    

    
      	
              (2)

            	
              “Confidential
      Information” shall mean and include all present and future
      techniques, inventions,   practices, enforcement,
      knowledge, know-how, skill, experience, test data, analytical data,
      descriptions (including the explanation set forth in Paragraph (3) of
      Article 6 hereof), and reports (whether in electronic, documentary, eye
      readable or any other form) generated or obtained by either Party or
      obtained through agreement with a third party with regard to Ampligen®
      and/or the Evaluation to be performed by Biken in cooperation with the
      Co-Researchers or disclosed by either Party to the other Party pursuant to
      or in connection with this Agreement, and identified as being
      confidential, and including any reports prepared by either Party for the
      other, excluding, however, information
which:

            

    

    
      	
               
      

            	
              1)

            	
              is
      or comes into the public domain through no fault of the receiving
      Party;

            

    

    
      	
               
      

            	
              2)

            	
              is
      known to the receiving Party prior to the date of disclosure, as evidenced
      by written records of that Party;

            

    

    
      	
               
      

            	
              3)

            	
              is
      lawfully disclosed to the receiving Party by a third party rightfully in
      possession of it; or

            

    

    
      	
               
      

            	
              4)

            	
              is
      independently and subsequently developed by an employee or agent of the
      receiving Party who had no knowledge of the Confidential Information
      disclosed under this Agreement or of any Confidential Information derived
      by the receiving Party therefrom.

            

    

    

    
      	
              (3)

            	
              “Effective Date” means
      the date on which this Agreement is last executed by either
      Party.

            

    

    

    
      	
              (4)

            	
              “Co-Researcher” means
      the following researchers, who are involved in the Research Project as set
      forth in Recitals Clause hereof, who will cooperate with Biken on the
      Evaluation:

            

    

    

    
      
        
          
            
              
                
                  
                    	
                            Name

                          	  	
                            Institution/Organization  to which one

                            belongs

                          	  	
                            Title

                          
	
                            Hideki Hasegawa

                          	 
      	
                            National
      Institute of Infectious Diseases.

                          	 
      	
                            Chief,
      Laboratory of Mucosal Vaccine Development, Influenza Virus Research
      Center,

                          
	
                            Masato
      Tashiro

                          	 
      	
                            National
      Institute of Infectious Diseases

                          	 
      	
                            Director,

                            Influenza
      Virus Research Center

                          
	
                            Hiroshi
      Kida

                          	
                              

                          	
                            Department
      of Disease Control,

                            Hokkaido
      University Graduate School of Veterinary Medicine

                          	
                              

                          	
                            Professor

                          

                  

                

              

            

          

        

      

    

    

    In case
of any changes in personnel composition of the aforementioned Co-Researcher,
Biken shall so notify Hemispherx in writing.

    

    
      	
              (5)

            	
              “Party” shall mean
      either Hemispherx or Biken or both, as the case may
  be.

            

    

    

    
      	
              (6)

            	
              “Prototype Vaccine Preparation”
      shall mean the prototype of influenza virus vaccine preparation in
      the form of intranasal and/or injectable dosage, containing primarily of
      candidates of influenza viral-antigens and Ampligen® as
      well as other base material(s), which is prepared by Biken for the purpose
      of performing the Evaluation as defined in Article 1
    hereof.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    
      	
              (7)

            	
              “Research Adviser” shall
      mean any of the following specialists, who dispenses expert advice as
      required from Biken and/or the Co-Researcher in a position of adviser on
      the Research Project during and in the course of which Biken performs the
      Evaluation in cooperation with the
  Co-Researchers:

            

    

    

    
      
        
          
            
              
                
                  
                    	
                            Name

                          	  	
                            Institution/Organization  to which one

                            belongs

                          	  	
                            Title

                          
	
                            Koichi Yamanishi

                          	  	
                            National Institute
      of Biomedical Innovation

                          	 
      	
                            Director
      General

                          
	
                            Takeshi
      Kurata

                          	 
      	
                            Toyama
      Institute of Health

                          	 
      	
                            Director

                          
	
                            Shinichi
      Tamura

                          	
                              

                          	
                            National
      Institute of Infectious Diseases

                          	
                              

                          	
                            Research
      Fellow

                          

                  

                

              

            

          

        

      

    

    

    3.   PROVISION OF MATERIAL AND RELATED
INFORMATION

    Provided
that Biken agrees to the following terms, Hemispherx shall provide Biken with
Ampligen® and the
Confidential Information relating to Ampligen®
including but not limited to any information regarding the safety of
Ampligen®:

    

    
      	
              (1)

            	
              During the effective term of this
      Agreement, Hemispherx grants to Biken the exclusive right to use
      Ampligen® and the Confidential Information
      relating to Ampligen® for the purpose of performing
      the Evaluation as provided in Article 1 hereof in
      Japan.

            

    

    

    
      	
              (2)

            	
              Biken
      shall use Ampligen®
      and the Confidential Information relating to Ampligen®
      solely for the purpose of performing the Evaluation in accordance with
      Paragraph (1) of this Article.

            

    

    

    
      	
              (3)

            	
              Nothing
      contained herein shall be construed to grant to Biken any rights in
      technology or license of any patent, copyright or trademark now or
      hereafter in existence except for the purposes of the
      Evaluation.

            

    

     

    
      4.  
SUPPLY
OF AMPLIGEN® AND
PAYMENT

    

    
      	
              (1)

            	
              Hemispherx
      shall supply to Biken, pursuant to Biken’s written request, and Biken
      shall purchase from Hemispherx, such volume of Ampligen® as
      will be necessary for Biken in performing the Evaluation in
      Japan.  The price of Ampligen®
      for such supply and purchase shall be $1,000/gram. Biken has indicated it
      intends to purchase 750 ml (7.5 grams) of Ampligen® at
      10 mg/ml for delivery in July,
2009.

            

    

    

    
      	
              (2)

            	
              The
      payments of the price provided in Paragraph (1) of this Article shall be
      made by Biken to Hemispherx within thirty (30) days after Biken’s receipt
      and inspection of the Ampligen® in
      the United States Dollars by means of telegraphic transfer to the
      following bank account, unless Hemispherx notifies otherwise to Biken in
      writing:

            

    

    

    
      
        
          	
                  Bank:

                	 
      	
                  Wachovia
      Bank

                
	
                  Bank Address:

                	 
      	
                  Center
      Square Branch, 15th
      and Market Streets, Philadelphia, PA 19102 Phone (215)
      985-7377

                
	
                  SWIFT No:

                	 
      	
                  International
      Swift Address: FUNB INT

                
	
                  Account Number:

                	 
      	
                  2000-009-652305  ABA
      Number 031201467

                

        

      

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    
      
        	
                Account Name:

              	
                  

              	
                Hemispherx
      Biopharma, Inc.

              

      

    

    

    
      	
              (3)

            	
              If
      Biken detects that the Ampligen®
      provided by Hemispherx has any defect, Biken shall notify Hemispherx of
      it, and Hemispherx shall recall such defective items and provide
      non-defective Ampligen® at
      its cost within thirty (30) days at the latest after the receipt of said
      notice from Biken.  In this case, the period of the payment set
      forth in the above paragraph shall be thirty (30) days after Biken’s
      receipt and inspection of the replacement Ampligen®.

            

    

    

    5.   CONFIDENTIALITY  

    
      	
              (1)

            	
              Except
      as provided elsewhere herein, each Party shall keep in strict confidence
      and shall not disclose to any third party any Confidential Information
      (including the Ampligen® as
      owned by Hemispherx) provided or disclosed by the other Party hereunder
      during the effective period hereof without first obtaining the written
      consent of said other Party.

            

    

    

    
      	
              (2)

            	
              Notwithstanding
      the provisions of the preceding Paragraph hereof, Biken may disclose
      the  Confidential Information (including the Ampligen® as
      owned by Hemispherx) provided or disclosed by Hemispherx hereunder during
      the effective period hereof to the Co-Researcher and/or the Research
      Adviser, as defined in Paragraphs (4) and (7) of Article 2 of this
      Agreement, respectively, provided both are then bound and agree to all
      provisions of this Agreement relating to the confidentiality of
      Ampligen®
      and Confidential Information.

            

    

    

    
      	
              (3)

            	
              Each
      Party shall exercise the same degree of care and safeguards with respect
      to the Confidential Information (including Ampligen® as
      owned by Hemispherx) as used to maintain the confidentiality of its own
      information of the similar nature; provided, however, the degree of the
      care and safeguard shall not at any time be less than the reasonable
      degree.

            

    

    

    
      	
               (4)

            	
              If
      Biken wishes to publish research papers relating to the use of
      Ampligen®
      and the Confidential Information relating to Ampligen®
      provided by Hemispherx pursuant to or in connection with this Agreement
      for the purpose of the Evaluation, or to publicly disclose any information
      relating to or resulting from such use, together with the Co-Researchers,
      Biken shall make reasonable efforts to provide Hemispherx with a copy of
      the proposed research papers for Hemispherx’s review and comment upon
      knowing such planned publication.  As for the research results
      to be compiled into annual research reports to be submitted to the MHLW
      and subsequently placed for public view in connection with the Research
      Project referred to in the Recitals hereof, it is deemed that by virtue of
      the execution of this Agreement by the Parties hereto that Hemispherx has
      consented thereto provided Biken shall provide Hemispherx a copy of the
      published annual research reports for Hemispherx’s review and comment
      after such reports have been placed  for public
      view.

            

    

     

    
      	
              (5)

            	
              If
      either Party is required by any governmental agency, court or other
      quasi-judicial or regulatory authorities to provide any of the
      Confidential Information (including Ampligen® as
      owned by Hemispherx) provided or disclosed by the other Party hereunder
      during the effective period hereof, the Party shall, if possible, promptly
      notify the other Party in writing prior to any such disclosure so that
      said other Party may seek an appropriate remedy and/or waive compliance
      with the provisions of this
Agreement.

            

    

    

    
      	
              (6)

            	
              The
      provisions in this Article shall remain in force for five (5) years from
      the Effective Date notwithstanding termination or cancellation of this
      Agreement; it being understood and agreed that the foregoing provisions of
      this Article shall not be construed as permitting either Party to
      voluntarily disclose any Confidential Information (including Ampligen® as
      owned by Hemispherx) provided or disclosed by the other Party to it
      hereunder during the effective period hereof to any third party subsequent
      to the expiration of the aforesaid period of
    confidentiality.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    6.  
EVALUATION AND TERM OF AGREEMENT

    
      	
              (1)

            	
              Biken
      may, by giving prior written notice to Hemispherx, commission a part of
      the evaluation tests which are necessitated by the Evaluation Program
      outlined in Exhibit 1 hereof, to external specialized testing
      institutions; provided, however, that in such a case, Biken shall require
      said external specialized testing institutions be bound by and agree to
      all provision of this Agreement relating to the Intellectual Property, the
      confidentiality of Ampligen®
      and Confidential Information..

            

    

    

    
      	
              (2)

            	
              This
      Agreement shall come into force and effect on the Effective Date, and
      shall continue to be in force and effect until terminated upon the earlier
      of:

            

    

    
      	
               
      

            	
              (a)

            	
              One
      year following the Effective Date or the date of receipt of Ampligen® by
      Biken, whichever is later

            

    

    
      	
               
      

            	
              (b)

            	
              Completion
      of the Evaluation Program

            

    

    

    
      	
              (3)

            	
              Upon
      termination of this Agreement unless otherwise agreed, Biken shall return
      to Hemispherx or destroy, as instructed by Hemispherx, all documents and
      data, whatever the type or media thereof may be, concerning Ampligen®
      and the Confidential Information relating to Ampligen®
      provided and disclosed by Hemispherx to Biken pursuant to or in connection
      with this Agreement.

            

    

    

    
      	
              (4)

            	
              Notwithstanding
      Paragraphs (3) of this Article, subject to compliance with this Agreement,
      Biken may keep one (1) copy or sample of the Confidential Information for
      archival purposes.

            

    

    

    7.  
INTELLECTUAL PROPERTY

    Each
party acknowledges and agrees in relation to all trademarks, patents and other
intellectual property rights in all inventions, discoveries and other
intellectual property which are or were made, conceived, reduced to practice,
generated or arise out of the Research Project and the Evaluation (all herein
“Intellectual Property”) that Hemispherx shall have and retain complete
ownership of and title to all Intellectual Property relating
to  Ampligen® and
Biken shall have and retain complete ownership of and title to all Intellectual
Property relating to the nasal delivery technology and the “Novel Vaccine
Containing Adjuvant Capable of Inducing Mucosal Immunity”. Hemispherx
acknowledges and agrees that, pursuant to this Agreement, the Research Project
and the Evaluation, it will not obtain any rights in and to  the nasal
delivery technology and the “Novel Vaccine Containing Adjuvant Capable of
Inducing Mucosal Immunity” as owned jointly by Biken and NIID, and Biken
acknowledges and agrees that, pursuant to this Agreement, the Research Project
and the Evaluation, it will not obtain any rights in and to
Ampligen®.  The provisions of this Article 7 shall survive any
termination or expiry of this Agreement.

    

    8.  
PATENT INFRINGEMENT

    In the
event that a third party files claims or suits against either Party, to whom the
other Party has provided and/or disclosed its own Confidential Information
(including Ampligen® as owned
by Hemispherx) pursuant to this Agreement during the effective period hereof, on
the basis of the alleged infringement of any patent or other intellectual
property right of said third party in connection with such information, the
disclosing Party shall, at its sole cost and responsibility, deal with, dispose
of and settle such claims or suits brought by said third party and shall pay and
bear any and all costs, damages and liabilities incurred in connection
therewith.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    9.  
FORCE MAJEUR

    
      	
              (1)

            	
              Force
      Majeur shall be deemed to have prevented, restricted or interfered with
      the performance by a  Party hereto of any of its obligations
      hereunder if such event occurs by reason of flood, fire, explosion,
      strike, war, revolution, civic commotions, political riot, acts of public
      enemies, blockage or embargo or sanctions or any law, interdict, order
      proclamation, regulation, ordinance, demand or requirements of any
      government.

            

    

    

    
      	
              (2)

            	
              Neither
      Party shall be held responsible for damages caused by any delay or default
      due to force  majeur.

            

    

    

    10. SUCCESSORS AND
ASSIGNS 

    This
Agreement and all rights and obligations arising hereunder shall not be assigned
or otherwise transferred by either Party, whether by operation of law or
otherwise, unless the other Party has given its written consent thereto, and any
such purported assignment or transfer without such written consent shall be null
and void.

    

    11. HEADINGS

    The
headings of the clauses of this Agreement have been inserted only to facilitate
reference and shall not be taken as being of any significance whatsoever in the
construction and interpretation of this Agreement.

    

    12. GENERAL

    
      	
              (1)

            	
              No
      waiver by either Party of a provision hereof or default hereunder shall be
      deemed as a waiver of any other provisions or
  default.

            

    

    

    
      	
              (2)

            	
              Any
      notices or communications to or from the respective Parties required or
      permitted to be given hereunder shall be deemed to have been
      received:

            

    

    

    
      	
            	
              1)

            	
              if
      mailed by registered prepaid airmail to the recipient at the address as
      set forth in Article 14 hereof and the date of receipt shall be deemed to
      be fourteen (14) working days after date of mailing unless the contrary
      can be proved;

            

    

    
      	
            	
              2)

            	
              if
      sent by telefax to the recipient at the number given herein and evidence
      exists of receipt of thereof on the next business day of the recipient
      after sending unless the contrary can be proved and provided that such
      telefax message is confirmed by registered prepaid
  post.

            

    

    

    
      	
              (3)

            	
              This
      Agreement including the attached Exhibit hereto constitutes the entire
      agreement between the Parties hereof with respect to the subject matter
      hereof.  This Agreement may only be changed or amended by
      writing executed by the authorized representatives of the Parties which
      refers to this Agreement and contains a copy thereof as an attached
      document.

            

    

    

    
      	
              (4)

            	
              If
      any provision of this Agreement is found by any court of competent
      jurisdiction to be invalid or unenforceable for any reason whatsoever,
      this shall not in itself be deemed to affect the other provisions thereof
      and such invalid or unenforceable clause shall be severable from the
      remaining terms of this
Agreement.

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    13.    
RESOLUTION OF DISPUTE

    
      	
              (1)

            	
              Any
      dispute at any time between the Parties hereto arising out of or pursuant
      to this Agreement or its interpretation, rectification, breach or
      termination shall, if not resolved through negotiations between the
      Parties, be finally settled by arbitration.  Arbitration shall
      be conducted in Switzerland pursuant to the rules of the Swiss Arbitration
      Association.

            

    

    
      	
              (2)

            	
              The
      decision of the arbitrator shall be final and binding and shall be capable
      of being made an order of any court having jurisdiction over any of the
      Parties.

            

    

    

    
      	
              (3)

            	
              This
      Agreement shall be governed by and construed in accordance with the laws
      of Japan.

            

    

    

    14     
COUNTERPARTS OF AGREEMENT

    This
Agreement is prepared and made in the English language in
duplicate.

    

    15.     DOMICILIA

    The
Parties hereto choose domicilia citandi et
executandi for all purposes in terms of this Agreement as
follows:

    

    
      	
              (1)

            	
              Hemispherx
      Biopharma, Inc.

            

    

    One Penn
Center

    1617 JFK
Blvd.

    Philadelphia,
PA 19103

    
      	  	
              Telephone:

            	
              215-988-0080

            

    

    
      	 	
              Telefax
      :

            	
              215-988-0739

            

    

    

    
      	
              (2)

            	
              The
      Research Foundation for Microbial Diseases of Osaka University
      (Biken)

            

    

    3-1,
Yamada-Oka, Suita

    Osaka,
565-0871, Japan

    
      	
                

            	
              Telephone:

            	
              +81-6-6877-4804

            

    

    
      	 	
              Telefax:

            	
              +81-6-6876-1984

            

    

     

    Either
Party shall be entitled to change the domicilia
citandi et executandi chosen by it giving the other Party thirty (30)
days notice of such change of address.

    

    IN WITNESS WHEROF, the Parties
have caused this Agreement to be executed by their duly authorized
representatives as of the day and year set forth below.

    

    
      
        
          
            
              
                	
                        HEMISPHERX
      BIOPHARMA, INC.

                      	 
      	
                        THE
      RESEARCH FOUNDATION FOR

                      
	 
      	 
      	
                        MICROBIAL
      DISEASES OF OSAKA UNIVERSITY

                      
	 
      	 
      	 
      
	
                        /s/
      William A. Carter

                      	 
      	
                        /s/
      Yoshinobu Okuno

                      
	
                        Represented
      by:

                      	 
      	
                        Represented
      by:

                      
	 
      	 
      	 
      
	
                        Name:

                      	
                        William
      Carter, MD

                      	 
      	
                        Name:

                      	
                        Yoshinoub
      Okuno

                      
	
                        Title:

                      	
                        Chairman
      and CEO

                      	 
      	
                        Title:

                      	
                        Director

                      
	
                        Date:

                      	
                        August
      13, 2009

                      	 
      	
                        Date:

                      	
                        August
      19,
2009

                      

              

            

          

        

      

    
 

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    Exhibit
1

     

    2008
Evaluation Program

    

    The
Outline of the Evaluation Program on the Ampligen® as a
candidate for Adjuvant incorporated into Potential Influenza Virus Vaccines in
the form of Intranasal Mucosal Administration

    
      	
              1.

            	
              Evaluation
      of the Efficacy and Stability of Prototype Vaccines (one-year
      study)

            

    

    Evaluate
the immunogenicity of intranasal prototype vaccines containing antigens from 3
sub-type influenza viruses, namely, H1N1, H3N2 and B.

    
      	
            	
              (1)

            	
              Evaluation
      of immunogenicity of prototype vaccines in mouse
  models

            

    

    
      
        	
              	
                1)

              	
                Step-1

              

      

    

    Investigate
the immunogenicity of prototype vaccines containing different-concentrated
antigens in combination with the Ampligen® of
varying concentration levels.

    the
needed volume of the Ampligen®: around
140 mg

    
      
        	
              	
                2)

              	
                Step-2

              

      

    

    Evaluate
antigens prepared with different culture methods for selection of candidate
vaccine strain.

    the
needed volume of the Ampligen®: around
100 mg

    
      
        	
              	
                3)

              	
                Step-3

              

      

    

    Assess
the efficacy of prototype vaccines on challenge experiment.

    the
needed volume of the Ampligen®: around
100 mg

    
      	
            	
              (2)

            	
              Evaluation
      of immunogenicity of prototype vaccines in animal models other than
      mice

            

    

    the
needed volume of the Ampligen®: around
500 mg

    
      	
            	
              (3)

            	
              Evaluation
      of stability of prototype vaccines for formulation of candidate vaccines
      (preliminary tests)   the needed volume of the Ampligen®:
      around 750 mg

            

    

    

    The total
volume of Ampligen® as
required for the above-mentioned Safety and Stability Evaluation Studies: around
1600 mg

    

    
      	
              2.

            	
              Evaluation of the Safety
      Profile of the Ampligen® (one-year
      study)

            

    

    Perform
the following testing items through procuring external GLP (Good Laboratory
Practice) study-related services from contract research
organizations:

    
      	 	
              (1)

            	
              Single
      dose toxicity study (FD (fatal dose) in rat
  models)

            

    

    the
needed volume of the Ampligen®: around
160 mg

    
      	
            	
              (2)

            	
              Single
      dose toxicity study (Setting test for probable maximum repeat-dose in dog
      models)

            

    

    the
needed volume of the Ampligen®: around
160 mg

    
      	
            	
              (3)

            	
              Repeated
      dose toxicity study (Toxicity study in rat
  models)

            

    

    the
needed volume of the Ampligen®: around
5 mg

     

    The total
volume of Ampligen® as
required for the above-mentioned Safety Evaluation Studies: around 325
mg.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    2009
Evaluation Program

    

    Preliminary
Evaluation of the Immunogenicity of and Long-term Stability Test with an
Inactivated Whole-virion Form of Pre-pandemic Influenza (A/H5N1) Experimental
Vaccine Combined with Adjuvant Ampligen® (The Study Plan for the 2009 Fiscal
Year)

    

    Study
1.  Pharmacological study to investigate the feasibility of
approaches for optimal dosage level and dosing schedule of an intranasal
whole-virion pre-pandemic influenza (H5N1) experimental vaccine combined with
Ampligen® as an
adjuvant in mice model.

    

    [Objective]

    Our
previous preliminary studies conducted in the 2008 Fiscal Year (FY) demonstrated
the potential of using Ampligen® as an
adjuvant when combined with experimental intranasal whole-virion pre-pandemic
influenza vaccines (A/H5N1) for enhancing immunogenicity for induction of immune
responses in animal models.  The objective of this pharmacological
study is to identify an approach for the optimal dosage level of viral antigen
and dosing schedule of an intranasal whole-virion pre-pandemic influenza
experimental vaccine combined with Ampligen® using
mice model.

    

    [Method]

    We will
prepare intranasal whole-inactivated A/H5N1 influenza vaccine (attenuated
PR8-IBCDC-RG2 strain, as derived from A/Indo/5/2005(H5N1) strain) combined with
Ampligen® as an
adjuvant with the addition of CVP base (at a final concentration of 0.55% CVP,
1.2% L-arginine and 1% glycerol) as a viscosity improver.  BALB/c mice
will be immunized intranasally either one, two, three, or four times at 2-week
intervals with such experimental vaccines.  Serum and nasal wash of
immunized mice will be respectively collected for antibody determination 2 weeks
after the final immunization. We will determine the levels of HI titers
(hemagglutination inhibition titers), NT titers (neutralization titers), serum
IgG-ELISA antibody titers in immunized mouse serum, and mucosal IgA-ELISA
antibodies in each nasal wash sample.

    

    Study
2.  Pharmacological study of an experimental vaccine combined
with Ampligen® as an
adjuvant in Cynomolgus
monkey models

    

    [Objective]

    Pharmacological
studies will be performed to evaluate an approach as identified based on the
results from Study 1 for the optimal dosage level of viral antigen and dosing
schedule of an intranasal whole-virion pre-pandemic influenza vaccines (A/H5N1)
vaccine combined with Ampligen® in
Cynomolgus monkey (Macaca
fascicularis) models.

    

    [Method]

    We will
prepare an inactivated whole-virion form of pre-pandemic influenza (A/H5N1)
experimental vaccine combined with Ampligen® as an
adjuvant with the addition of CVP base as a viscosity improver. Cynomolgus
monkey will be immunized intranasally with an experimental vaccine at 2-week
intervals using such approach as identified based on the results from Study 1
for the optimal dosage level of viral antigen and dosing schedule
thereof.  Serum, nasal wash, and saliva of immunized mice will be
respectively collected from each monkey for antibody determination 2 weeks after
the final immunization We will determine the levels of HI titers
(hemagglutination inhibition titers), NT titers (neutralization titers), serum
IgG-ELISA antibody titers in immunized mouse serum, and mucosal IgA-ELISA
antibodies in each nasal wash or salivary sample.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    Study 3.  Long-term
stability and accelerated tests with inactivated whole-virion of pre-pandemic
influenza (A/H5N1) experimental vaccines combined with Ampligen®

    

    [Objective]

    The
long-term stability and accelerated tests will be conducted on inactivated
whole-virion form of pre-pandemic influenza (A/H5N1) experimental vaccines
combined with Ampligen®

    

    [Method]

    On the
basis of the results from Study 2, we will determine the optimal formulation of
a candidate for evaluation as an inactivated whole-virion form of pre-pandemic
influenza (A/H5N1) experimental vaccine combined with Ampligen® in human
subjects.  Such optimal candidate vaccine formulation will be put
through the following tests which assess the stability thereof after being
stored for a specified period of time at an ambient temperature of 10±2 degrees
Celsius (for long-term stability study) or 25±2 degrees Celsius with relative
humidity at 60±5% (for accelerated test).

    
      	
              Ø

            	
              Sterility
      test

            

    

    
      	
              Ø

            	
              Pyrogen
      test

            

    

    
      	
              Ø

            	
              Test
      for leukopenic toxicity (mice)

            

    

    
      	
              Ø

            	
              Test
      for protein content

            

    

    
      	
              Ø

            	
              Test
      for freedom from abnormal toxicity

            

    

    
      	
              Ø

            	
              Potency
      tests (Single radial immunodiffusion test and Immunogenicity
      test)

            

    

    
      	
              Ø

            	
              RNA
      quantification test

            

    

    
      
         

      

      
        10Exhibit 10.1
    

    

    

    
      AMENDMENT NO. 5 TO SECOND AMENDED AND
      RESTATED
NOTE
      PURCHASE AGREEMENT
    

    

    

    
      This AMENDMENT NO. 5 TO SECOND AMENDED AND
      RESTATED NOTE PURCHASE AGREEMENT (this “Amendment”),
      dated as of March 12, 2010, is made among CONN FUNDING II, L.P. (the “Issuer”),
      CONN APPLIANCES, INC. (“Conn
      Appliances”), THREE PILLARS
      FUNDING LLC (f/k/a Three Pillars Funding Corporation), JPMORGAN CHASE
      BANK, N.A., PARK AVENUE RECEIVABLES COMPANY, LLC and SUNTRUST ROBINSON
      HUMPHREY, INC.  Capitalized terms used and not otherwise defined in this
      Amendment are used as defined in that certain Base Indenture, dated as
      of September 1, 2002, as amended from time to time, between the Issuer
      and the Wells Fargo Bank, National Association (as successor to Wells
      Fargo Bank Minnesota, National Association), as Trustee (the “Trustee”)
      or, if not defined therein, in that certain Amended and Restated Series
      2002-A Supplement, dated as of September 10, 2007, as amended from time
      to time, between the Issuer and the Trustee.
    

    
      Background
    

    
      A.   The parties hereto have entered into
      the Second Amended and Restated Note Purchase Agreement, dated as of
      August 14, 2008, among the parties hereto (as amended from time to time,
      the “Note Purchase
      Agreement”) to finance the
      purchase of Receivables by the Issuer from Conn Appliances, Inc.
    

    
      B.   The parties hereto wish to amend the
      Note Purchase Agreement.
    

    
      C.   The parties hereto are willing to
      agree to such an amendment, all as set out in this Amendment.
    

    
      Agreement
    

    
      1.   Amendments
      to the Note Purchase Agreement.  The
      Note Purchase Agreement is hereby amended by replacing the words “March
      12, 2010” in each and every place where such words appear in Section
      7.6(c) with the words “March 19, 2010”.                     
    

    
      2.   Representations
      and Warranties; No Default.  
    

    
      (a)     Each of the Issuer and Conn
      Appliances, as Seller and as Servicer, hereby represents and warrants as
      of the effectiveness of this Amendment that:
    

    
      (i)       as of the date of this
      Amendment, no event or condition has occurred and is continuing which
      would constitute a Event of Default, Pay Out Event, Servicer Default or
      Block Event; and
    

    
      (ii)      its representations and
      warranties set forth in the Note Purchase Agreement (as amended hereby)
      and the other Transaction Documents are true and correct as of the date
      this Amendment is executed, as though made on and as of such date
      (except to the extent such representations and warranties relate solely
      to an earlier date and then as of such earlier date), and such
      representations and warranties shall continue to be true and correct (to
      such extent) after giving effect to the transactions contemplated hereby.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    

    

    
      (b)     The Administrator, on behalf of
      Three Pillars, and the Funding Agent, on behalf of PARCO and the
      Committed Purchaser, hereby represent and warrant that together that
      they own 100% of the Notes.
    

    
      3.   Effectiveness;
      Binding Effect; Ratification.
    

    
      (a)     This Amendment shall become
      effective as of the Effective Date and binding on the parties hereto and
      their respective successors and assigns upon receipt by the
      Administrator and the Funding Agent of (i) executed counterparts hereof
      from each of the parties hereto and (ii) the fees and reasonable
      expenses of the Administrator and the Funding Agent (including fees of
      counsel) incurred in connection with the negotiation, execution and
      delivery of this Amendment.
    

    
      (b)     On and after the execution and
      delivery hereof, this Amendment shall be a part of the Note Purchase
      Agreement as of the Effective Date and each reference in the Note
      Purchase Agreement to “this Note Purchase Agreement” or “hereof”,
      “hereunder” or words of like import, and each reference in any other
      Transaction Document to the Note Purchase Agreement shall mean and be a
      reference to such Note Purchase Agreement as amended hereby.
    

    
      (c)     Except as expressly amended
      hereby, the Note Purchase Agreement shall remain in full force and
      effect and is hereby ratified and confirmed by the parties hereto.
    

    
      4.   Miscellaneous.
      (a) THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
      STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS,
      AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL
      BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.  EACH OF THE PARTIES TO THIS
      AMENDMENT AGREES TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES
      DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND ANY APPELLATE
      COURT HAVING JURISDICTION TO REVIEW THE JUDGMENTS THEREOF.  EACH OF THE
      PARTIES HERETO HEREBY WAIVES ANY OBJECTION BASED ON FORUM
      NON CONVENIENS AND ANY
      OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE
      AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR
      EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.
    

    
      (b)     All reasonable costs and expenses
      incurred by the Conduit Purchasers, the Administrator, the Funding Agent
      and the Committed Purchaser in connection with this Amendment (including
      reasonable attorneys’ costs) shall be paid by the Issuer.
    

    
      (c)     Headings used herein are for
      convenience of reference only and shall not affect the meaning of this
      Amendment.
    

    
      (d)     This Amendment may be executed in
      any number of counterparts, and by the parties hereto on separate
      counterparts, each of which shall be an original and all of which taken
      together shall constitute one and the same agreement.
    

    
      
        

        

      

      
        
          2
        

        
          

        

      

      
        

        

      

    

    
      (e)     In case any provision in this
      Amendment shall be held by a court of competent jurisdiction to be
      invalid, illegal or unenforceable, this Amendment shall be and shall be
      deemed to be void ab initio
      and unenforceable in its entirety.
    

    

    

    
      [Signature
      Page Follows]
    

    

    

    

    

    
      
        

        

      

      
        
          3
        

        
          

        

      

      
        

        

      

    

    
      IN WITNESS WHEREOF, the parties have
      caused this Amendment to be executed by their respective officers
      thereunto duly authorized this 12th day of March, 2010.
    

    

    

    
    	
           
        	
          CONN FUNDING II, L.P., as Issuer
        
	

        	
           
        
	

        	
          By: Conn Funding II GP, L.L.C., its general partner
        
	

        	

        	

        	
           
        
	

        	

        	

        	
           
        
	

        	

        	
          By:
        	
          /s/ David R. Atnip
        
	

        	

        	
          Name:
        	
          David R. Atnip
        
	

        	

        	
          Title:
        	
          Treasurer
        
	

        	

        	

        	
           
        
	

        	

        	

        	
           
        
	

        	

        	

        	
           
        
	

        	
          CONN APPLIANCES, INC.
        
	

        	

        	

        	
           
        
	

        	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            /s/ Michael J. Poppe
          

        
	

        	

        	
          Name:
        	
          Michael J. Poppe
        
	

        	

        	
          Title:
        	
          Chief Financial Officer
        

    

    

    

    
      
        

        

      

      
        
          S-1
        

        
          

        

      

      
        

        

      

    

    

    

    
    	
           
        	
          THREE PILLARS FUNDING LLC,
        
	

        	
          as a Conduit Purchaser
        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	
          By:
        	
          
            /s/ Doris J. Hearn
          

        
	

        	
          Name:
        	
          
            Doris J. Hearn
          

        
	

        	
          Title:
        	
          
            Vice President
          

        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	
          SUNTRUST ROBINSON HUMPHREY, INC.,
        
	

        	
          as Administrator
        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	
          By:
        	
          
            /s/ Joseph R. Franke
          

        
	

        	
          Name:
        	
          
            Joseph R. Franke
          

        
	

        	
          Title:
        	
          
            Director
          

        

    

    

    

    
      
        

        

      

      
        
          S-2
        

        
          

        

      

      
        

        

      

    

    

    

    
    	
           
        	
          
            JPMORGAN CHASE BANK, N.A.,
          

        
	

        	
          
            as Committed Purchaser and Funding Agent
          

        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            /s/ Scott Cornelis
          

        
	

        	
          
            Name:
          

        	
          
            Scott Cornelis
          

        
	

        	
          
            Title:
          

        	
          
            Vice President
          

        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	
          
            PARK AVENUE RECEIVABLES COMPANY LLC,
          

        
	

        	
          
            as a Conduit Purchaser
          

        
	

        	

        	
           
        
	

        	
          By: JPMorgan Chase Bank, N.A.,
        
	

        	
          
            its attorney-in-fact
          

        
	

        	

        	
           
        
	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            /s/ Scott Cornelis
          

        
	

        	
          
            Name:
          

        	
          
            Scott Cornelis
          

        
	

        	
          
            Title:
          

        	
          
            Vice President
          

        

    

    

    

    
      S-3

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