Document:

Exhibit 10.2

 

	CONFIDENTIAL	LONZA

 

{***}
LICENSE

 

LICENCE AGREEMENT

 

between

 

LONZA SALES AG

 

and

 

Hemispherx
Biopharma, Inc

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	1	 

     

    

 

	CONFIDENTIAL	LONZA

 

INDEX

 

	ARTICLE	 	TITLE	 	PAGE
	 	 	 	 	 
	1.	 	Definitions and Interpretation	 	3
	2.	 	Supply of mATERIALS AND PrROCESS Know-How	 	5
	3.	 	Ownership of Property and Intellectual Property	 	6
	4.	 	Licences	 	6
	5.	 	Payments	 	7
	6.	 	Royalty Procedures	 	7
	7.	 	Liability and Warranties	 	8
	8.	 	Confidentiality	 	10
	9.	 	TERM AND TERMINaTION	 	11
	10.	 	Assignment	 	12
	11.	 	Governing Law and Dispute Resolution	 	13
	12.	 	Force Majeure	 	13
	13.	 	Illegality	 	14
	14.	 	Miscellaneous	 	14
	15.	 	Notice	 	15

 

APPENDIX

 

		1	Materials and Process Know-How

		2	Permitted Sublicensee

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	2	 

     

    

 

	CONFIDENTIAL	LONZA

 

THIS AGREEMENT is made the 13th
day of April 2016

 

BETWEEN

 

LONZA SALES AG incorporated and registered in Switzerland whose
registered office is at Muenchensteinerstrasse 38, CH-4002, Basel, Switzerland (hereinafter referred to as "Lonza"),

 

and

 

HEMISPHERX BIOPHARMA, INC of One Penn
Center, 1617 JFK Blvd., Suite 500, Philadelphia, PA 19103, USA (hereinafter referred to as "Licensee")

 

The Licensee and Lonza shall hereinafter jointly
be referred to as the “Parties” and individually as the “Party”.

 

WHEREAS

 

		A	Lonza is the licensed proprietor of the {***} and related process know-how for manufacture
of the {***} and has the right to grant certain Intellectual Property Rights in relation thereto (all as hereinafter
defined), and

 

		B.	The Licensee wishes to take a sub licence under Lonza Intellectual Property Rights to use the {***}
in its internal processes for the commercial manufacture and subsequent exploitation of Product (as hereinafter defined).

 

		C.	Lonza has agreed to grant Licensee a sub license to the {***} and the {***}
for the purpose of the commercial manufacture and sale of Product subject to the terms of this Agreement

 

NOW THEREFORE the Parties hereby agree as follows:

 

		1.	Definitions and Interpretation

 

		1.1	In this Agreement the following words and phrases shall have the following meanings:

 

		1.1.1	“Affiliate” means any company, corporation, limited liability company, partnership
or other entity which directly or indirectly controls, is controlled by or is under common control, directly or indirectly, with
the relevant Party to this Agreement. "Control" means the ownership of more than fifty percent (50%) of the issued share
capital of the party in question or the legal power to direct or cause the direction of the general management and policies of
the party in question. Such entity shall be deemed an Affiliate only so long as it satisfies the foregoing definition.

 

		1.1.2	“{***}” means {***}

 

		1.1.3	“{***}" means {***}.

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	3	 

     

    

 

	CONFIDENTIAL	LONZA

 

		1.1.4	“Confidential Information” means any Know-How and confidential information disclosed
by one Party to the other in connection with this Agreement including for the avoidance of doubt the terms of this Agreement itself.
In the case of Lonza, Confidential Information shall mean all information relating to the {***}, the {***}
and any other materials, specifications or information which is provided and/or disclosed by Lonza, its Affiliates and their respective
officers, employees, agents and advisors to the Licensee and its officers, employees, agents and advisors, whether directly or
indirectly.

 

		1.1.5	“Effective Date” means the date first above written.

 

		1.1.6	“Intellectual Property Rights” means all rights, title and interests, vested
and/or arising out of any industrial or intellectual property, whether protected at common law or under statute, which includes
(without limitation) any rights and interests in copyrights, designs, trademarks, servicemarks, trade-names, technology, business
names, logos, commercial symbols, processes, developments, licenses, trade secrets, goodwill, drawings, computer software, formulae,
technical information, research data, procedures, designs, Confidential Information and any other knowledge of any nature whatsoever
throughout the world whether in existence today or which will come into existence in the future, and including all applications
for patents, copyrights, trademarks, trade names, rights to apply and any amendments/modifications or renewals thereto; and all
other intellectual property rights.

 

		1.1.7	“Materials” means the materials relating to the {***} particulars
of which are set out in Appendix 1 hereto.

 

		1.1.8	“Know-How” means any technical and other information, whether patented or unpatented,
including, but without prejudice to the generality of the foregoing, ideas, concepts, trade secrets, know-how, inventions, discoveries,
data, formulae, specifications, processes, procedures for experiments and tests and other protocols, results of experimentation
and testing, fermentation and purification techniques and assay protocols.

 

		1.1.9	“Net Sale” {***}.

 

		1.1.10	“Permitted Sublicensee” means one or more of the third parties listed in Appendix
2 to which Licensee grants a sublicence of the rights granted to Licensee pursuant to this Agreement.

 

		1.1.11	“Product” means the therapeutic
agent of which Licensee is the proprietor manufactured utilizing Materials.

 

		1.1.12	“Process” means the process for producing the {***} from the {***}
as developed by Lonza.

 

		1.1.13	“Process Know-How” means Know-How relating directly or indirectly to the Process
known to Lonza from time to time, of which Lonza is the proprietor or licensed proprietor as set out in Appendix 1 hereto to the
extent that Lonza is able to locate and provide the same to Licensee without incurring material cost or significant consumption
of resources and labour.

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	4	 

     

    

 

	CONFIDENTIAL	LONZA

 

		1.1.13	“Territory” means world-wide.

 

		1.2	The headings of this Agreement are inserted only for convenience and shall not affect the construction
hereof.

 

		1.3	Where appropriate words denoting a singular number only shall include the plural and vice versa.

 

		1.4	References to the recitals, clauses and appendix shall be deemed to be a reference to the recitals,
clauses and appendix to this Agreement and shall form an integral part of this Agreement.

 

		1.5	References to any statute or statutory provision include a reference to the statute or statutory
provision as from time to time amended, extended or re-enacted.

 

		1.6	Reference in this Agreement to Lonza shall, unless repugnant to the subject or context thereof,
include its Affiliates, successors and assigns.

 

		2.	Supply of Materials and Process Know-How

 

		2.1	Unless previously supplied by Lonza under a separate agreement, Lonza shall, if requested by Licensee
in writing, arrange for the supply ex-works Lonza’s premises, Lonza to Licensee of the following:

 

		2.1.1	Process Know-How, including transfer of ownership of the DMF pertaining to the Product on file
with the U.S. Food and Drug Administration, solely for the purpose of obtaining and supporting approval to manufacture and sell
the Product in the Territory.

 

		2.1.2	the Materials for use by Licensee in accordance with the terms of this Agreement.

 

		2.2	In the event that Licensee requires any additional quantities of the Materials and if Lonza at
its sole discretion is willing to supply such additional Materials, such supply shall be subject to the payment of an additional
fee by Licensee to Lonza in accordance with Lonza’s prices at the time.

 

		2.3	For the avoidance of doubt, any Materials or Process Know How supplied prior to the Effective Date
shall be deemed to be Materials and Process Know How (as applicable) hereunder and shall be treated accordingly with effect from
the Effective Date.

 

		2.4	Any transportation of the Materials by Lonza on behalf of Licensee shall be made at sole risk of
the Licensee who shall be deemed to have full knowledge of the carrier’s terms and conditions of carriage (“Carriage
Terms”). The Licensee shall, as appropriate, observe, perform, and be subject to the Carriage Terms in relation to the
transportation of the Materials and shall indemnify Lonza against all losses, expenses, demands, claims, actions, judgements, assessments,
damages, liabilities, fines, penalties, costs and fees incurred by Lonza by reason of Licensee’s failure to observe and perform
the Carriage Terms.

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	5	 

     

    

 

	CONFIDENTIAL	LONZA

 

		3.	Ownership of Property and Intellectual Property

 

		3.1	It is hereby acknowledged and agreed that as between the Parties any and all property and Intellectual
Property Rights in the {***}, the {***}, the Process and Process Know-How is vested in Lonza. Similarly
it is hereby acknowledged as between the Parties any and all Intellectual Property Rights in the Product, and the Licensee’s
manufacturing process utilizing the {***} or the {***} as part of the process for manufacturing the
Product, is vested in Licensee, or its applicable licensors and sublicensees.

 

		3.2	The provisions of this Clause 3 shall survive termination of this Agreement.

 

		4.	Licences

 

		4.1	Lonza hereby grants to Licensee and its Affiliates on the Effective Date

 

		(a)	a non-exclusive licence to use the Process Know-How to develop, manufacture, market, and sell Product
in the Territory; and

		(b)	a non-exclusive licence in the Territory to use the Materials to develop, manufacture, market and
sell Product in the Territory.

 

		4.2	The Licensee shall not use the Materials or cause or permit the Materials to be used other than
for the manufacture of Product and undertakes not to make any modifications or adaptations to the Materials.

 

		4.3	Save as provided and permitted in clauses 4.4 and 4.5 below the Licensee shall not be entitled
to grant a sublicence to the rights granted by Clause 4.1 which are otherwise deemed to be personal to Licensee and its Affiliates

 

		4.4	Notwithstanding the restriction in Clause 4.3 but subject to the requirements in Clause 4.6 Licensee
shall be entitled to sublicense the rights granted in Clause 4.1 to one or more of the Permitted Sublicensee’s listed in
Part 1 of Appendix 2 for the sole purpose of undertaking testing of the Product on behalf of Licensee. .

 

		4.5	Notwithstanding the restriction in Clause 4.3 but subject to the requirements in Clause 4.6 Licensee
shall be entitled to sublicense the rights granted in Clause 4.1 to one or more of the Permitted Sublicensees listed in Part II
of Appendix 2 for the development and/or manufacture of Product for and on behalf of Licensee.

 

		4.6	The following terms and conditions shall apply in respect of any sublicense granted by the Licensee
to a Permitted Sublicensee:

 

		(a)	Licensee shall ensure that the Permitted Sublicensee’s use of the Process Know-How and Materials
is undertaken solely for activities permitted by Clauses 4.4 and 4.5 above and only on behalf of Licensee; and

 

		(b)	The Permitted Sublicensee shall not, by virtue of this Agreement, be granted any right or licence,
either express or implied, under any patent or proprietary right vested in Lonza or otherwise, to use the Process Know-How or Materials
other than for undertaking the activities permitted by Clauses 4.4 and 4.5 above and only for or on behalf Licensee and Licensee
agrees to ensure that such Permitted Sublicensee shall not assign, transfer, further sublicense or otherwise make over the benefit
or the burden of the rights granted to it pursuant to this Agreement; and

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	6	 

     

    

 

	CONFIDENTIAL	LONZA

 

		(c)	Any sublicence granted shall be granted expressly subject to the terms of this Agreement, and it
shall be Licensee’s responsibility to ensure the strict adherence by Permitted Sublicensee hereunder to the terms and conditions
of this Agreement and Licensee shall be fully responsible to Lonza and shall indemnify Lonza for any loss, claim or expense resulting
from Permitted Sublicensee’s failure to so comply with the obligations in this Clause 4.6.

 

		4.7	No licence is granted save as expressly provided herein and no licence in addition thereto shall
be deemed to have arisen or be implied by way of estoppel or otherwise.

 

		5.	Payments

 

		5.1	Signature and Royalty and Signature Fees

 

In consideration
of the licence granted to Licensee pursuant to Clause 4.1 above, Licensee shall pay to Lonza a one-time fee of ${***}
({***}dollars) (“Signature Fee”) within 35 (thirty five) days of the Effective Date of this Agreement.

 

		5.2	In consideration of the licence granted to Licensee pursuant to Clause 4.1 above, Licensee shall
pay to Lonza in respect of Product manufactured a royalty of {***} percent ({***}%) of Net Sales of
Product.

 

		5.3	The provisions of this Clause 5 shall remain in full force and effect notwithstanding the expiry
or sooner determination of this Agreement until the settlement of all subsisting claims under this Clause 5.

 

		6.	Royalty Procedures

 

		6.1	Licensee shall, and shall ensure that its Affiliates shall, keep true and accurate records and
books of account containing all data necessary for the calculation of royalties payable to Lonza. Such records and books of account
shall, upon reasonable notice having been given by Lonza (which in no event shall be less than thirty (30) days prior notice),
be open at all reasonable times during regular business hours for inspection by independent auditors selected by Lonza and reasonably
acceptable to Licensee. Such independent auditors shall agree to maintain the confidentiality of the information and materials
disclosed during the audit. Any such audit shall be conducted in a manner that does not interfere unreasonably with the operations
of Licensee’s business. Lonza may perform an audit once each calendar year. Each audit shall begin upon the date specified
by Lonza and shall be completed as soon as reasonably practicable. Lonza shall pay the costs of the independent auditors conducting
such audit, unless the results of the audit reveal an underpayment of 5% or more by Licensee, in which case, Licensee shall pay
the reasonable costs of the independent auditors. If an audit concludes that an overpayment or underpayment has occurred during
the audited period, such payment shall be remitted by the Party responsible for such payment to the other Party within thirty (30)
days after the date such auditor’s written report identifying the overpayment or underpayment is delivered to the Party responsible
for such payment.

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	7	 

     

    

 

	CONFIDENTIAL	LONZA

 

		6.2	Licensee shall prepare a statement within 20 days after the last days of March and September in
each year for the six months ended on such date (or part thereof in the first and last year of this Agreement) showing separately
in respect of each immediately preceding period details of the sales of Product on a country by country basis and the royalty due
and payable to Lonza thereon and where sales relate to a country other than the United Kingdom the rate of exchange used by the
Licensee.

 

			Such statement shall be submitted to Lonza together with a remittance for the royalties due to
Lonza to which Lonza shall issue a receipted invoice in return.

 

		6.3	All sums due under this Agreement:

 

		6.3.1	shall (save in respect of the Signature Fee) be paid in pounds sterling to Lonza.

 

		6.3.2	are exclusive of any Value Added Tax or of any other applicable taxes, levies, imposts, duties
and fees of whatever nature imposed by or under the authority of any government or public authority, and shall be paid by Licensee
(other than taxes on Lonza’s income). The parties agree to co-operate in all respects reasonably necessary to take advantage
of such double taxation treaties as may be available.

 

		6.4	To the extent that Licensee reports Net Sales otherwise than in pounds sterling then royalty payments
due to Lonza shall be first calculated in the local currency in which Net Sales are reported and then shall be converted to a pounds
sterling value at the rate of exchange equivalent to the pound spot rate in London first published in the Financial Times on the
first business day after the relevant quarterly reporting period.

 

		6.5	Where Lonza does not receive payment of any sum by the due date, interest shall accrue thereafter
on the sum due and owing to Lonza at the rate of four percent (4%) per annum over the base rate from time to time of National Westminster
Bank plc, interest to accrue on a day-to-day basis without prejudice to Lonza’s right to receive payment on the due date.

 

		7.	Liability and Warranties

 

		7.1	Lonza gives no representation or warranty that the exercise of the rights granted to Licensee hereunder
will not infringe intellectual property rights vested in Lonza or any third party provided however that Lonza warrants that Licensee
has all necessary rights from Lonza to operate the Process as a stand-alone process meaning in isolation from the Product and other
third party know-how and intellectual property.

 

		7.2	As at the date of this Agreement, Lonza has not received notice of any claim by a third party,
(a) which affects Lonza’s ability to grant the rights specified in Clause 4.1, or (b) that the use of the Process Know How
or the Materials infringes intellectual property rights vested in any third party.

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	8	 

     

    

 

	CONFIDENTIAL	LONZA

 

		7.3	The Licensee hereby acknowledges that in order to exploit the rights granted herein the Licensee
may require licences under Lonza patent rights (other than those herein licensed) or under Third Party patent rights (including
those vested in Affiliates of Lonza) that may be infringed by the use by the Licensee of the rights licensed herein and it is hereby
agreed that it shall be the Licensee's responsibility to satisfy itself as to the need for such licences and if necessary to obtain
such licences; provided that any such patent rights vested in Lonza or its Affiliates which are necessary for Licensee and its
Affiliates to operate the Process as permitted by the terms of this Agreement shall be automatically included within the Intellectual
Property Rights licensed to Licensee hereunder.

 

		7.4	Licensee expressly acknowledges and understands that the Materials and the Process Know How are
vested in Lonza or Lonza is otherwise entitled thereto and the Materials and the Process Know How have been used by Lonza for the
purposes of operating the Process at Lonza’s premises. Licensee further acknowledges and agrees that, in order to develop
or manufacture Product at its own or its Affiliate’s premises, additional development work may be required to be undertaken
at the cost and expense of Licensee.

 

			No warranties are given by Lonza as to the suitability of the Process Know How or the Materials
for use at Licensee’s or its sublicensee’s premises or the extent of development work which may be required in order
to enable Licensee to operate the Process and no guarantees are given by Lonza that such development work will succeed in facilitating
the operation of the Process to produce Product which meets any particular technical parameters or specifications. All such development
work shall be performed at the sole risk and expense of Licensee and/or its sublicensee. Lonza’s sole responsibility hereunder
shall be to supply the Process Know How and the Materials in accordance with this Agreement.

 

		7.5	Each Party (“Indemnifying Party”) shall indemnify and hold harmless the other
Party and its Affiliates, and their respective officers, employees and agents (each an “Indemnified Party”)
at all times in respect of any and all losses, damages, costs and expenses (collectively “Losses”) suffered
or incurred as a result of any contractual, tortious or other claims or proceedings by Third Parties (collectively “Third
Party Claims”) against Indemnified Party arising out of the Indemnifying Party’s breach of this Agreement, including
breach of representations and warranties, violation of applicable law, negligence or wilful misconduct; provided that with respect
to any Third Party Claim for which each Party is entitled hereunder to seek indemnification from the other Party, each Party as
the Indemnifying Party shall indemnify the other Party for its Losses only to the extent of the Indemnifying Party’s relative
responsibility for the facts underlying the Third Party Claim .

 

		7.6	With respect to product liability claims or proceedings, the following shall apply: (a) except
to the extent provided in (b) below, Licensee shall indemnify and hold harmless Lonza, its Affiliates and their respective officers,
employees and agents at all times in respect of any and all losses, damages, costs and expenses suffered or incurred as a result
of any tortious claims or proceedings of death or bodily injury relating to the Product, and (b) Lonza shall indemnify and hold
harmless Licensee, and its Affiliates and their respective officers, employees and agents at all times in respect of any and all
losses, damages, costs and expenses suffered or incurred as a result of any tortious claims or proceedings of death or bodily injury
relating to the Product to the extent such claims or proceedings result from defects in the {***} or from Lonza’s
breach of this Agreement.

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	9	 

     

    

 

	CONFIDENTIAL	LONZA

 

		7.7	Any condition or warranty other than those relating to title which might otherwise be implied or
incorporated within this Agreement by reason of statute or common law or otherwise is hereby expressly excluded.

 

		7.8	EXCEPT FOR EITHER PARTY’S BREACH OF CLAUSE 8 HEREOF IN NO EVENT SHALL EITHER PARTY OR THEIR
RESPECTIVE AFFILIATES BE LIABLE TO THE OTHER PARTY, THEIR AFFILIATES AND THEIR RESPECTIVE OFFICERS, EMPLOYEES AND AGENTS WITH RESPECT
TO ANY SUBJECT MATTER OF THIS AGREEMENT WHETHER IN CONTRACT IN TORT IN NEGLIGENCE OR FOR BREACH OF STATUTORY DUTY OR OTHERWISE
FOR LOSS OF PROFITS, SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES. Nothing in this Agreement shall
exclude or limit the liability of either Party for fraud or for death or personal injury caused by its negligence or for any other
liability that may not be limited or excluded as a matter of law.

 

		7.9	The terms of this Clause 7 shall survive expiration or termination of this Agreement for whatever
reason.

 

		8.	Confidentiality

 

		8.1	Licensee expressly acknowledges that Confidential Information disclosed by Lonza pursuant to this
Agreement is supplied in circumstances imparting an obligation of confidence and Licensee shall keep such Confidential Information
secure, secret and confidential and undertakes to respect Lonza’s proprietary rights therein and to use the same for the
sole purpose of this Agreement and not during the period of this Agreement or at any time for any reason whatsoever to disclose,
cause or permit to be disclosed such Confidential Information to any Third Party other than its Affiliates hereunder for use in
accordance with the terms of this Agreement. Licensee shall procure that only its employees and employees of its Affiliates hereunder
shall have access to Confidential Information and then only on a need to know basis and that all such employees shall be informed
of their secret and confidential nature and shall be subject to the same obligations as Licensee and its Affiliates hereunder pursuant
to this Clause 8.1.

 

		8.2	Lonza expressly acknowledges and undertakes that any Confidential Information disclosed by the
Licensee to Lonza pursuant to this Agreement is disclosed in circumstances imparting an obligation of confidence and Lonza shall
keep such Licensee's Confidential Information secure, secret and confidential and undertakes to respect Licensee’s proprietary
rights therein and to use the same for the sole purpose of this Agreement and not during the period of this Agreement or at any
time for any reason whatsoever disclose and/or cause and/or permit to be disclosed such Licensee's Confidential Information to
any Third Party.

 

		8.3	Each Party will restrict the disclosure of Confidential Information to such officers, employees,
professional advisers, finance-providers, and consultants of itself and its Affiliates (“Representatives”) who
have been informed of the confidential nature of the Confidential Information and who have a need to know such Confidential Information
for the purpose of this Agreement. Prior to disclosure to such persons, the Party in receipt of the Confidential Information shall
bind its and its Affiliates’ Representatives to confidentiality and non-use obligations no less stringent than those set
forth herein. The receiving Party shall notify the disclosing Party as promptly as practicable of any unauthorized use or disclosure
of the Confidential Information.

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	10	 

     

    

 

	CONFIDENTIAL	LONZA

 

		8.4	The obligations of confidence referred to in this Clause 8 shall not extend to any information
which the receiving Party demonstrates:

 

		8.4.1	is or shall become generally available to the public otherwise than by reason of a breach by the
recipient Party of such information of the provisions of this Clause 8;

 

		8.4.2	is known to the recipient Party of such information and is at its free disposal prior to its receipt
from the other;

 

		8.4.3	is subsequently disclosed to the recipient Party without obligations of confidence by a Third Party
owing no such obligation of confidentiality to the disclosing Party; or

 

		8.4.4	can be demonstrated by competent written evidence as having been independently developed by the
recipient of the information in question without access to or use or knowledge of the information of the disclosing Party.

 

		8.5	Notwithstanding the foregoing it is acknowledged between the Parties that Lonza or Licensee may
be required to disclose Confidential Information to a government agency for the purpose of any statutory, regulatory or similar
legislative requirement applicable to the production of Product, or to a court of law or to meet the requirements of any Stock
Exchange to which the Parties may be subject. In such circumstances the disclosing Party will inform the other Party prior to disclosure
being made as to the nature of the required disclosure, shall only make the disclosure to the extent legally required and shall
seek to impose obligations of secrecy wherever possible.

 

		8.6	Each Party hereto expressly agrees that any breach or threatened breach of the undertakings of
confidentiality provided hereunder by a Party may cause irreparable harm to the other Party (“Non-Breaching Party”)
and that money damages may not provide a sufficient remedy to the Non-Breaching Party for any breach or threatened breach.
In the event of any breach and/or threatened breach, then in addition to all other remedies available at law or in equity, the
Non-Breaching Party shall be entitled to seek injunctive relief and any other relief deemed appropriate by the Non-Breaching Party.

 

		8.7	The obligations of both Parties under this Clause 8 shall survive the expiration or termination
of this Agreement for whatever reason.

 

		9.	Term and Termination

 

		9.1	Unless terminated earlier in accordance with the provisions of this Clause 9 or Clause 12, this
Agreement shall continue in force in each country of the world, until the earlier of (i) date on which the Licensee decides to
terminate the sale of Product and confirms the same to Lonza and (ii) the date on which Lonza notifies the Licensee that its licensed
rights to the Materials and the Know-How have ceased and/or been determined.

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	11	 

     

    

 

	CONFIDENTIAL	LONZA

 

		9.2	Licensee may terminate this Agreement by giving sixty (60) days’ notice in writing to Lonza.

 

		9.3	Either Lonza or Licensee may terminate this Agreement forthwith by notice in writing to the other
upon the occurrence of any of the following events:

 

		9.3.1	if the other (which in respect of the Licensee shall include a breach by a Permitted Sublicensee)
commits a breach of this Agreement which in the case of a breach capable of remedy shall not have been remedied within thirty (30)
days of the receipt by the other of a notice identifying the breach and requiring its remedy

 

		9.3.2	if the other is unable to pay its debts or enters into compulsory or voluntary liquidation (other
than for the purpose of effecting a reconstruction or amalgamation in such manner that the company resulting from such reconstruction
or amalgamation if a different legal entity shall agree to be bound by and assume the obligations of the relevant Party under this
Agreement) or compounds with or convenes a meeting of its creditors or has a receiver or administrator appointed over all or any
part of its assets or takes or suffers any similar action in consequence of a debt, or ceases for any reason to carry on business.

 

		9.4	If this Agreement expires or is terminated for any reason any and all licences granted hereunder
shall terminate with effect from the date of termination and Licensee shall destroy all Materials and all Confidential Information
which is provided by Lonza (including all Process Know-How) forthwith and shall certify such destruction immediately thereafter
in writing to Lonza provided however that the Licensee and its Affiliates shall have the right to sell or otherwise dispose of
all Product then on hand, subject to the payment of royalties and the other terms of this Agreement.

 

		9.5	Termination for whatever reason or expiration of this Agreement shall not affect the accrued rights
of the Parties arising in any way out of this Agreement as at the date of termination. The right to recover damages against the
other and all provisions which are expressed to survive this Agreement shall remain in full force and effect.

 

		10.	Assignment

 

		10.1	The Licensee shall not be entitled to assign, transfer, charge or in any way make over the benefit
and/or the burden of this Agreement. Lonza shall not be entitled to assign, transfer, charge or in any way make over the benefit
and/or the burden of this Agreement without the prior written consent of the Licensee which consent shall not be unreasonably withheld
or delayed, save that Lonza shall be entitled without the prior written consent of the Licensee to assign, transfer, charge, sub-contract,
deal with or in any other manner make over the benefit and/or burden of this Agreement (i) to an Affiliate or (ii) to any joint
venture company of which Lonza is the beneficial owner of at least fifty percent (50%) of the issued share capital thereof or (iii)
to any company with which Lonza may merge or (iv) to any company to which Lonza may transfer its assets and undertaking.

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	12	 

     

    

 

	CONFIDENTIAL	LONZA

 

		10.2	This Agreement shall be binding upon the successors and assigns of the parties and the name of
a Party appearing herein shall be deemed to include the names of its successors and assigns provided always that nothing herein
shall permit any assignment by either Party except as expressly provided herein.

 

		11.	Governing Law and Dispute Resolution

 

		11.1	The validity, construction and performance of this Agreement shall be governed by English law to
which the Parties submit.

 

		11.2	Subject to Clause 11.3, the Courts of England and Wales shall have exclusive jurisdiction in relation
to this Agreement provided that the Parties shall have the right to proceed to a suitable jurisdiction for the purpose of enforcing
a judgment, award, or order (including without limitation seeking specific performance) and injunctive reliefs.

 

		11.3	Any dispute arising between the Parties under this Agreement may upon the mutual agreement of the
Parties be referred to and finally settled by arbitration under the Rules of Arbitration of the International Chamber of Commerce
by a single arbitrator knowledgeable in biopharmaceutical research and development related matters and familiar with the biopharmaceutical
industry, appointed in accordance with the said Rules. The place of arbitration shall be London, England and the arbitration shall
be conducted in the English language. The arbitrator’s award shall be final and binding. The Parties covenant and agree that
they will participate in the arbitration in good faith and that they will share equally the costs of the arbitration, except as
otherwise provided herein. Any Party refusing to comply with an order of the arbitrator will be liable for costs and expenses,
including attorney’s fees, incurred by the other Party in enforcing an award.

 

		12.	Force Majeure

 

Neither Party shall
be in breach of this Agreement if there is any total or partial failure of performance by it of its duties and obligations under
this Agreement occasioned by any act of God (including without limitation, fire), act of government or state, war, civil commotion,
insurrection, embargo, epidemic, terrorism or earthquake, prevention from or hindrance in obtaining any raw materials, energy or
other supplies, labour disputes of whatever nature and any other reason beyond the control of either Party. If either Party is
unable to perform its duties and obligations under this Agreement as a direct result of the effect of one of the reasons set out
in this Clause 12 such Party shall give written notice to the other of such inability stating the reason in question. The operation
of this Agreement shall be suspended during the period (and only during the period) in which the reason continues. Forthwith upon
the reason ceasing to exist the Party relying upon it shall give written notice to the other of this fact. If the reason continues
for a period of more than ninety (90) days and substantially affects the commercial basis of this Agreement the Party not claiming
under this Clause 12 shall have the right to terminate this Agreement by giving written notice of such termination to the other
Party.

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	13	 

     

    

 

	CONFIDENTIAL	LONZA

 

		13.	Illegality

 

		13.1	If any provision or term of this Agreement or any part thereof shall become or be declared illegal,
invalid or unenforceable for any reason whatsoever including but without limitation by reason of the provisions of any legislation
or other provisions having the force of law or by reason of any decision of any Court or other body or authority having jurisdiction
over the parties hereto or this Agreement including the EC Commission or the European Court of Justice:

 

		(i)	such provision shall, so far as it is illegal, invalid or unenforceable, be given no effect by
the Parties and shall be deemed not to be included in this Agreement;

 

		(ii)	the other provisions of this Agreement shall be binding on the Parties as if such provision was
not included therein; and

 

		(iii)	the Parties agree to negotiate in good faith to amend such provision to the extent possible for
incorporation herein in such reasonable manner as most closely achieves the intention of the Parties without rendering such provision
invalid or unenforceable.

 

		14.	Miscellaneous

 

		14.1	This Agreement embodies and sets forth the entire agreement and understanding of the parties and
supersedes all prior oral and written agreements, representations, misrepresentations (where innocently or negligently made), understandings
or arrangements relating to the subject matter of this Agreement (“Understandings”). Neither Party shall be
entitled to rely on any Understandings which are not expressly set forth in this Agreement.

 

		14.2	This Agreement shall not be amended, modified, varied or supplemented except in writing signed
by duly authorised representatives of the Parties.

 

		14.3	No failure or delay on the part of either Party hereto to exercise any right or remedy under this
Agreement shall be construed or operated as a waiver thereof nor shall any single or partial exercise of any right or remedy under
this Agreement preclude the exercise of any other right or remedy or preclude the further exercise of such right or remedy as the
case may be. The rights and remedies provided in this Agreement are cumulative and are not exclusive of any rights or remedies
provided by law.

 

		14.4	Except as required by law, the text of any press release or other communication to be published
by or in the media whether of a scientific nature or otherwise and concerning this Agreement shall require the prior written approval
of Lonza and Licensee.

 

		14.5	Each of the Parties shall be responsible for its respective legal and other costs incurred in relation
to the preparation of this Agreement.

 

		14.6	The Parties do not intend that any term hereof should be enforceable by virtue of the Contracts
(Rights of Third Parties) Act 1999, or by any other statute or common-law principle, by any person who is not a party to this Agreement.

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	14	 

     

    

 

	CONFIDENTIAL	LONZA

 

		15.	Notice

 

		15.1	Any notice or other document to be given under this Agreement shall be in writing and shall be
deemed to have been duly given if left at or sent by registered post or by a reputable overnight courier to a Party or delivered
in person to a Party at the address set out below for such Party or such other address as the Party may from time to time designate
by written notice to the other(s):

 

Address of Lonza

LONZA SALES AG, Muenchensteinerstrasse
38 CH-4402, Basel, Switzerland

 

	 	With a copy to:	Lonza Biologics Plc 
	 	 	228 Bath Road, Slough, Berkshire SL1 4DX
	 	 	Facsimile: 01753 777001
	 	 	For the attention of the Head of Legal Services

 

Address of Licensee

HEMISPHERX BIOPHARMA,
INC of One Penn Center, 1617 JFK Blvd., Suite 500, Philadelphia, PA 19103, USA Facsimile: (215) 988-1739

For the attention
of: Wayne Springate

 

		15.2	All such notices and documents shall be in the English language. Any such notice or other document
shall be deemed to have been received by the addressee seven (7) working days following the date of dispatch of the notice or other
document by post or, where the notice or other document is sent by hand, at the time of such delivery. To prove the giving of a
notice or other document it shall be sufficient to show that it was dispatched.

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	15	 

     

    

 

	CONFIDENTIAL	LONZA

 

AS WITNESS the hands of the duly authorised representatives
of the parties hereto

 

	Signed for and on behalf of	 	s/JG	 
	LONZA SALES AG	 	 	 
	 	 	Julien Gender, 	 
	 	 	Senior Legal Counsel	TITLE
	 	 	 	 
	Signed for and on behalf of	 	s/CA	 
	LONZA SALES AG	 	 	 
	 	 	 Cordula Alterkruger, 	 
	 	 	Senior Legal Counsel	TITLE
	 	 	 	 
	Signed for and on behalf of	 	s/WS	 
	HEMISPHERX BIOPHARMA, INC	 	 	 
	 	 	Wayne Springate	 
	 	 	Senior Vice President of Operations	 

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	16	 

     

    

 

	CONFIDENTIAL	LONZA

 

APPENDIX 1

 

MATERIALS AND PROCESS KNOW-HOW

 

		1.	Materials

 

{***}

 

		2.	Process Know-How

 

The following Process Know-How will
be made available to Licensee for use in accordance with the terms of the Agreement: {***}

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	17	 

     

    

 

	CONFIDENTIAL	LONZA

 

APPENDIX 2

 

PERMITTED SUBLICENSEE

 

PART I

(TESTING LABORATORIES)

 

{***}

 

PART II

(THIRD PARY CONTRACT MANUFACTURERS)

 

{***} Confidential portions of this exhibit
have been redacted and filed separately with the Commission pursuant to a confidential treatment request in accordance with Rule
24b-2 of the Securities Exchange Act of 1934, as amended.

 

    	 	18Exhibit 10.1

 

CARDINAL FINANCIAL CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AGREEMENT

 

This SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AGREEMENT (this “Agreement”) is entered into as of August 26, 2016 by and between Cardinal Financial Corporation, a Virginia corporation (“Cardinal”), and Christopher W. Bergstrom, an executive of Cardinal (the “Executive”).

 

WHEREAS, the Executive has contributed substantially to Cardinal’s success and Cardinal desires that the Executive continue in its employ,

 

WHEREAS, to encourage the Executive to remain a Bank employee, Cardinal is willing to provide to the Executive salary continuation benefits payable from Cardinal’s general assets,

 

WHEREAS, as of the date of this Agreement none of the conditions or events included in the definition of the term “golden parachute payment” that is set forth in section 18(k)(4)(A)(ii) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)(4)(A)(ii)] and in Federal Deposit Insurance Corporation Rule 359.1(f)(1)(ii) [12 C.F.R. 359.1(f)(1)(ii)] exists or, to the best knowledge of Cardinal, is contemplated insofar as Cardinal or its subsidiary bank is concerned, and

 

WHEREAS, the parties hereto intend this Agreement to be an unfunded arrangement maintained primarily to provide supplemental retirement benefits for the Executive (who is a key employee and member of a select group of management), and to be considered a top hat plan for purposes of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).  The Executive is fully advised of Cardinal’s financial status.

 

NOW THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Executive and Cardinal agree as follows.

 

ARTICLE 1

DEFINITIONS

 

1.1          “Accrual Balance” means the liability that should be accrued by Cardinal under generally accepted accounting principles (“GAAP”) for Cardinal’s obligation to the Executive under this Agreement, applying Financial Accounting Standards Board ASC 710-10-30 (formerly Accounting Principles Board Opinion No. 12, as amended by Statement of Financial Accounting Standards No. 106), and the calculation method and discount rate specified hereinafter.  The Accrual Balance will be calculated such that when it is credited with interest each month the Accrual Balance at Normal Retirement Age equals the present value of the normal retirement benefit.  The discount rate means the rate used by the Plan Administrator for determining the Accrual Balance.  In its sole discretion, the Plan Administrator may adjust the discount rate to maintain the rate within reasonable standards according to GAAP.

 

1.2          “Beneficiary” means each designated person, or the estate of the deceased Executive, entitled to benefits, if any, upon the death of the Executive determined according to Article 4.

 

1.3          “Beneficiary Designation Form” means the form established from time to time by the Plan Administrator that the Executive completes, signs, and returns to the Plan Administrator to designate one or more Beneficiaries.

 

1

 

1.4          “Change in Control” means a change in control as defined in Internal Revenue Code section 409A and rules, regulations, and guidance of general application thereunder issued by the Department of the Treasury, applying the percentage threshold specified in each of paragraphs (a) through (c) of this section 1.4 or the related percentage threshold specified in section 409A and rules, regulations, and guidance of general application thereunder, whichever is greater –

 

(a)           Change in ownership: a change in ownership occurs on the date any one person or group accumulates ownership of Cardinal stock constituting more than 50% of the total fair market value or total voting power of Cardinal stock,

 

(b)           Change in effective control: (1) any one person, or more than one person acting as a group, acquires within a 12-month period ownership of Cardinal stock possessing 30% or more of the total voting power of Cardinal stock, or (2) a majority of Cardinal’s board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed in advance by a majority of Cardinal’s board of directors, or

 

(c)           Change in ownership of a substantial portion of assets: a change in the ownership of a substantial portion of Cardinal’s assets occurs if in a 12-month period any one person, or more than one person acting as a group, acquires from Cardinal assets having a total gross fair market value equal to or exceeding 40% of the total gross fair market value of all of the assets of Cardinal immediately before the acquisition or acquisitions.  For this purpose, gross fair market value means the value of Cardinal’s assets, or the value of the assets being disposed of, determined without regard to any liabilities associated with the assets.

 

1.5          “Code” means the Internal Revenue Code of 1986, as amended, and rules, regulations, and guidance of general application issued thereunder by the Department of the Treasury.

 

1.6          “Effective Date” means August 26, 2016.

 

1.7          “Intentional” for purposes of this Agreement, no act or failure to act on the Executive’s part will be considered intentional if it was due primarily to an error in judgment or negligence.  An act or failure to act on the Executive’s part is intentional if it is not in good faith and if it is without a reasonable belief that the action or failure to act is in Cardinal’s best interests.  Any act or failure to act based upon authority granted by resolutions duly adopted by the board of directors or based upon the advice of counsel for Cardinal is conclusively presumed to be in good faith and in Cardinal’s best interests.

 

1.8          “Normal Retirement Age” means age 60.

 

1.9          “Plan Administrator” means the plan administrator described in Article 8.

 

1.10        “Plan Year” means a twelve-month period commencing on January 1 and ending on December 31 of each year, provided that the initial Plan Year will commence on the Effective Date of this Agreement and end on December 31 of the year in which the Effective Date occurs.

 

1.11        “Separation from Service” means separation from service as defined in Internal Revenue Code section 409A and rules, regulations, and guidance of general application thereunder issued by the Department of the Treasury, including termination for any reason of the Executive’s service as an executive and independent contractor to Cardinal and any member of a controlled group,

 

2

 

as defined in Code section 414, other than because of a leave of absence approved by Cardinal or the Executive’s death.

 

1.12        “Termination with Cause” and “Cause” have the same definition specified in any effective severance or employment agreement existing on the date hereof or hereafter entered into between the Executive and Cardinal.

 

ARTICLE 2

LIFETIME BENEFITS

 

2.1          Normal Retirement.  When the Executive attains Normal Retirement Age Cardinal will pay to the Executive the benefit described in this section 2.1 instead of any other benefit under this Agreement.  If the Executive’s Separation from Service before or after attaining Normal Retirement Age is a Termination with Cause or if this Agreement terminates under Article 5, no benefits will be paid.

 

2.1.1       Amount of benefit.  The annual benefit under this section 2.1 is $90,000.

 

2.1.2       Payment of benefit.  Beginning with the month immediately after the month in which the Executive attains Normal Retirement Age, Cardinal will pay the annual benefit to the Executive in equal monthly installments on the first day of each month.  The benefit is payable for 180 months.

 

2.2          Change in Control.  When both of the following conditions to completion of a Change in Control are satisfied, Cardinal will irrevocably deposit with an independent bank trustee cash in an amount sufficient to accrue the benefit payment obligations under section 2.1 in accordance with the principles set forth in section 1.1: (1) all federal and state bank regulatory authorities whose approval of the Change in Control is necessary grant approval and (2) if approval of Cardinal stockholders is necessary for the Change in Control, Cardinal’s stockholders approve the Change in Control at a regular or special meeting held for that purpose.  Whether the conditions are satisfied before or after the Executive’s Separation from Service or before or after benefit payments under section 2.1 begin, when the two specified conditions are satisfied Cardinal will under this section 2.2 make the irrevocable deposit with an independent bank trustee.  Until all payments required to be made to the Executive under section 2.1 or Beneficiary under Article 3 are made, the independent bank trustee will hold, invest, reinvest, and manage trust assets in accordance with a Rabbi Trust Agreement in substantially the form attached to this Agreement as Exhibit A.

 

2.3          Annual Benefit Statement.  As promptly as practical after the end of each Plan Year the Plan Administrator will provide or cause to be provided to the Executive an annual benefit statement showing benefits payable or potentially payable to the Executive under this Agreement.  Each annual benefit statement supersedes the previous year’s annual benefit statement.  If there is a contradiction between this Agreement and the annual benefit statement concerning the amount of a particular benefit payable or potentially payable, the amount of the benefit determined under this Agreement controls.

 

2.4          Savings Clause Relating to Compliance with Code Section 409A.  The Agreement is intended to comply with Code section 409A and official guidance issued thereunder.  Notwithstanding anything to the contrary, this Agreement shall be interpreted, operated and administered in a manner consistent with this intention.  If any provision of this Agreement would subject the Executive to additional tax or interest under section 409A, Cardinal will reform the

 

3

 

provision.  However, Cardinal will maintain to the maximum extent practicable the original intent of the applicable provision without subjecting the Executive to additional tax or interest, and Cardinal is not required to incur any additional compensation expense as a result of the reformed provision.

 

2.5          One Benefit Only.  Despite anything to the contrary in this Agreement, the Executive and Beneficiary are entitled to one benefit only under this Agreement, which will be determined by the first event to occur that is dealt with by this Agreement.

 

ARTICLE 3

DEATH BENEFITS

 

If the Executive dies after attaining Normal Retirement Age but before receiving all 180 monthly benefit payments to which the Executive is entitled under section 2.1, the Executive’s Beneficiary is entitled to the unpaid benefits, payable at the same time and in the same form the benefits would have been paid to the Executive had the Executive survived.  If the Executive dies before Normal Retirement Age entitled to benefits under section 2.1, the Executive’s Beneficiary is entitled to the 180 monthly benefit payments the Executive would have received under section 2.1 had the Executive survived to Normal Retirement Age, payable for 15 years in 180 equal monthly installments on the first day of each month, with the first payment in the month immediately after the earlier of (x) the date that is 90 days after the date of the Executive’s death or (y) the month in which the Executive would have attained Normal Retirement Age.

 

ARTICLE 4

BENEFICIARIES

 

4.1          Beneficiary Designations.  The Executive may designate a Beneficiary to receive benefits payable under this Agreement at the Executive’s death.  The Beneficiary designated under this Agreement may be the same as or different from the beneficiary designation under any other benefit plan of Cardinal in which the Executive participates.

 

4.2          Beneficiary Designation: Change.  The Executive designates a Beneficiary by completing and signing the Beneficiary Designation Form and delivering it to the Plan Administrator or its designated agent.  The Executive’s Beneficiary designation is automatically revoked if the Beneficiary predeceases the Executive or if the Executive names a spouse as Beneficiary and the marriage is subsequently dissolved.  The Executive may change a Beneficiary by completing, signing, and otherwise complying with the terms of the Beneficiary Designation Form and the Plan Administrator’s rules and procedures, as in effect from time to time.  Upon the Plan Administrator’s acceptance of a new Beneficiary Designation Form, all Beneficiary designations previously filed are cancelled.  The Plan Administrator is entitled to rely on the last Beneficiary Designation Form filed by the Executive and accepted by the Plan Administrator before the Executive’s death.

 

4.3          Acknowledgment.  No designation or change in designation of a Beneficiary is effective until received, accepted, and acknowledged in writing by the Plan Administrator or its designated agent.

 

4.4          No Beneficiary Designation.  If the Executive dies without a valid beneficiary designation or if all designated Beneficiaries predecease the Executive, the Executive’s spouse is the designated Beneficiary.  If the Executive has no surviving spouse benefit payments will be made to the Executive’s estate.

 

4

 

4.5          Facility of Payment.  If a benefit is payable to a minor, to a person declared incapacitated, or to a person incapable of handling the disposition of his or her property, Cardinal may pay the benefit to the guardian, legal representative, or person having the care or custody of the minor, incapacitated person, or incapable person.  Cardinal may require proof of incapacity, minority, or guardianship as it may deem appropriate before distribution of the benefit.  Distribution completely discharges Cardinal from all liability for the benefit.

 

ARTICLE 5

GENERAL LIMITATIONS

 

5.1          Termination with Cause.  Despite any contrary provision of this Agreement, Cardinal will not pay any benefit under this Agreement and this Agreement terminates automatically if the Executive’s Separation from Service is a Termination with Cause.

 

ARTICLE 6

CLAIMS AND REVIEW PROCEDURES

 

6.1          Claims Procedure.  Cardinal will notify any person or entity that makes a claim for benefits under this Agreement (the “Claimant”) in writing, within 90 days after receiving Claimant’s written application for benefits, of his or her eligibility or noneligibility for benefits under the Agreement.  If the Plan Administrator determines that the Claimant is not eligible for benefits or full benefits, the notice will set forth (w) the specific reasons for denial, (x) a specific reference to the provisions of the Agreement on which denial is based, (y) a description of any additional information or material necessary for the Claimant to perfect his or her claim, and a description of why it is needed, and (z) an explanation of the Agreement’s claims review procedure and other appropriate information as to the steps to be taken if the Claimant wishes to have the claim reviewed.  If the Plan Administrator determines that there are special circumstances requiring additional time to make a decision, Cardinal will notify the Claimant of the special circumstances and the date by which a decision is expected to be made, and may extend the time for up to an additional 90 days.

 

6.2          Review Procedure.  If the Claimant is determined by the Plan Administrator not to be eligible for benefits, or if the Claimant believes that he or she is entitled to greater or different benefits, the Claimant will have the opportunity to have the claim reviewed by Cardinal by filing a petition for review with Cardinal within 60 days after receipt of the notice issued by Cardinal.  The petition must state the specific reasons the Claimant believes entitle him or her to benefits or to greater or different benefits.  Within 60 days after receipt by Cardinal of the petition, the Plan Administrator will give the Claimant (and counsel, if any) an opportunity to present his or her position verbally or in writing, and the Claimant (or counsel) will have the right to review the pertinent documents.  The Plan Administrator will notify the Claimant of the Plan Administrator’s decision in writing within the 60-day period, stating specifically the basis of its decision, written in a manner to be understood by the Claimant, and the specific provisions of the Agreement on which the decision is based.  If, because of the need for a hearing, the 60-day period is not sufficient, the decision may be deferred for up to another 60 days at the election of the Plan Administrator, but notice of this deferral will be given to the Claimant.

 

5

 

ARTICLE 7

MISCELLANEOUS

 

7.1          Amendments and Termination.  This Agreement may be amended solely by a written agreement signed by Cardinal and by the Executive.  This Agreement may be terminated by Cardinal without the Executive’s consent.  Unless Article 5 provides that the Executive is not entitled to payment, Cardinal will pay the gross retirement benefit in a single lump sum to the Executive if Cardinal terminates this Agreement, but only if the termination and payment are carried out consistent with the terms of the section 409A plan-termination exception to the prohibition against accelerated payment [Rule 1.409A-3(j)(4)(ix)].  The gross retirement benefit is determined by the number of $7,500 monthly payments that the Executive and his Beneficiary have not received as of the section 409A plan-termination date for purposes of Rule 1.409A-3(j)(4)(ix).  Consistent with Code section 409A, the lump-sum termination payment will be made to the Executive on the first day of the thirteenth month after the month in which Cardinal terminates this Agreement.

 

7.2          Binding Effect.  This Agreement binds the Executive, Cardinal, and their beneficiaries, survivors, executors, successors, administrators, and transferees.

 

7.3          No Guarantee of Employment.  This Agreement is not an employment policy or contract.  It does not give the Executive the right to remain an employee of Cardinal or interfere with Cardinal’s right to discharge the Executive.  It also does not require the Executive to remain an employee or interfere with the Executive’s right to terminate employment at any time.

 

7.4          Non-Transferability.  Benefits under this Agreement may not be sold, transferred, assigned, pledged, attached, or encumbered.

 

7.5          Successors; Binding Agreement.  By an assumption agreement in form and substance satisfactory to the Executive, Cardinal will require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business or assets of Cardinal to expressly assume and agree to perform this Agreement in the same manner and to the same extent Cardinal would be required to perform this Agreement had no succession occurred.

 

7.6          Tax Withholding.  Cardinal will withhold any taxes that are required to be withheld from the benefits provided under this Agreement.

 

7.7          Applicable Law.  This Agreement and all rights hereunder are governed by the laws of the State of Virginia, except to the extent preempted by the laws of the United States of America.

 

7.8          Unfunded Arrangement.  The Executive and Beneficiary are general unsecured creditors of Cardinal for the payment of benefits under this Agreement.  The benefits represent the mere promise by Cardinal to pay benefits.  Rights to benefits are not subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors.  Any insurance on the Executive’s life is a general asset of Cardinal to which the Executive and Beneficiary have no preferred or secured claim.  If Cardinal establishes a rabbi trust or purchases a policy insuring the life of the Executive to recover the cost of providing benefits under this Agreement, the Executive and the Beneficiary will have no rights whatsoever in the assets of the rabbi trust or in the policy or the proceeds of the policy.

 

6

 

7.9          Entire Agreement.  This Agreement constitutes the entire agreement between Cardinal and the Executive concerning the subject matter.  No rights are granted to the Executive under this Agreement other than those specifically set forth.

 

7.10        Severability.  If any provision of this Agreement is held invalid, invalidity does not affect any other provision of this Agreement not held invalid, and each such other provision continues in full force and effect to the full extent consistent with law.  If any provision of this Agreement is held invalid in part, invalidity does not affect the remainder of the provision not held invalid, and the remainder of the provision together with all other provisions of this Agreement continue in full force and effect to the full extent consistent with law.

 

7.11        Headings.  Caption headings and subheadings herein are included solely for convenience of reference and do not affect the meaning or interpretation of any provision of this Agreement.

 

7.12        Notices.  All notices, requests, demands, and other communications hereunder will be in writing and will be deemed to have been duly given if delivered by hand or mailed, certified or registered mail, return receipt requested, with postage prepaid, to the following addresses or to such other address as either party may designate by like notice.  Unless otherwise changed by notice, notice is properly addressed to the Executive if addressed to the address of the Executive on the books and records of Cardinal at the time of the delivery of such notice, and properly addressed to Cardinal if addressed to the Board of Directors, Cardinal Bank, 8270 Greensboro Drive, Suite 500, McLean, Virginia 22102.

 

7.13        Payment of Legal Fees after a Change in Control.  Cardinal is aware that after a Change in Control management could cause or attempt to cause Cardinal to refuse to comply with the obligations under this Agreement, or could institute or cause or attempt to cause Cardinal to institute litigation seeking to have this Agreement declared unenforceable, or could take or attempt to take other action to deny the Executive the benefits intended under this Agreement.  In these circumstances the purpose of this Agreement would be frustrated.  Cardinal desires that the Executive not be required to incur expenses associated with enforcement of rights under this Agreement, whether by litigation or other legal action, because the costs and expenses would substantially detract from the benefits intended to be granted to the Executive hereunder.  Cardinal desires that the Executive not be forced to negotiate settlement of rights under this Agreement under threat of incurring expenses.  Accordingly, if after a Change in Control it appears to the Executive that (x) Cardinal has failed to comply with any of its obligations under this Agreement, or (y) Cardinal or any other person has taken any action to declare this Agreement void or unenforceable or instituted any litigation or other legal action designed to deny, diminish, or recover from the Executive the benefits intended to be provided to the Executive hereunder, Cardinal irrevocably authorizes the Executive to retain counsel of the Executive’s choice, at Cardinal’s expense as provided in this section 7.13, to represent the Executive in the initiation or defense of any litigation or other legal action, whether by or against Cardinal or any director, officer, stockholder, or other person affiliated with Cardinal, in any jurisdiction.  Regardless of any existing or previous attorney-client relationship between Cardinal and any counsel chosen by the Executive under this section 7.13, Cardinal irrevocably consents to the Executive entering into an attorney-client relationship with that counsel and Cardinal and the Executive agree that a confidential relationship exists between the Executive and that counsel.  The fees and expenses of counsel selected by the Executive will be paid or reimbursed to the Executive by Cardinal on a regular, periodic basis upon presentation by the Executive of a statement or statements prepared by counsel in accordance with counsel’s customary practices, regardless of whether suit is brought and regardless of whether incurred in trial, bankruptcy, or appellate proceedings, but

 

7

 

Cardinal’s payment or reimbursement of the Executive’s counsel’s fees and expenses must occur on or before the last day of the Executive’s tax year immediately after the Executive’s tax year in which the expense is incurred.  Cardinal’s obligation under this section 7.13 to pay the Executive’s legal fees operates separately from and in addition to any legal fee reimbursement obligation Cardinal may have with the Executive under a separate severance, employment, salary continuation, or other agreement.  Despite any contrary provision in this Agreement however, Cardinal is not required to pay or reimburse the Executive’s legal expenses if doing so would violate section 18(k) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)] and Rule 359.3 of the Federal Deposit Insurance Corporation [12 CFR 359.3].

 

ARTICLE 8

ADMINISTRATION OF AGREEMENT

 

8.1          Plan Administrator Duties.  This Agreement will be administered by a Plan Administrator consisting of the board or such committee or person as the board appoints.  The Executive may not be a member of the Plan Administrator.  The Plan Administrator has the discretion and authority to (x) make, amend, interpret, and enforce all appropriate rules and regulations for the administration of this Agreement and (y) decide or resolve any and all questions that may arise, including interpretations of this Agreement.

 

8.2          Agents.  In the administration of this Agreement the Plan Administrator may employ agents and delegate to them such administrative duties as the Plan Administrator sees fit (including acting through a duly appointed representative) and may from time to time consult with counsel, who may be counsel to Cardinal.

 

8.3          Binding Effect of Decisions.  The decision or action of the Plan Administrator concerning any question arising out of the administration, interpretation, and application of the Agreement and the rules and regulations promulgated hereunder is final and conclusive and binding upon all persons having any interest in the Agreement.  No Executive or Beneficiary has any right, vested or nonvested, regarding the continued use of any previously adopted assumptions, including but not limited to the discount rate and calculation method described in section 1.1.

 

8.4          Indemnity of Plan Administrator.  Cardinal will indemnify and hold harmless the members of the Plan Administrator against any and all claims, losses, damages, expenses, or liabilities arising from any action or failure to act with respect to this Agreement, except in the case of willful misconduct by the Plan Administrator or any of its members.

 

8.5          Information.  To enable the Plan Administrator to perform its functions, Cardinal will supply full and timely information to the Plan Administrator on all matters relating to the date and circumstances of the retirement, Disability, death, or Separation from Service of the Executive and such other pertinent information as the Plan Administrator may reasonably require.

 

8

 

IN WITNESS WHEREOF, the Executive and a duly authorized officer of Cardinal have executed this Supplemental Executive Retirement Plan Agreement as of the date first written above.

 

	
EXECUTIVE:
    	
 
    	
CARDINAL:
    
	
 
    	
 
    	
Cardinal Financial   Corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Christopher W.   Bergstrom
    	
 
    	
By:
    	
/s/ Bernard H.   Clineburg
    
	
Christopher W.   Bergstrom
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Its:
    	
Executive Chairman
    

 

9

 

BENEFICIARY DESIGNATION

CARDINAL FINANCIAL CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN AGREEMENT

 

I, Christopher W. Bergstrom, designate the following as beneficiary of any death benefits under this Supplemental Executive Retirement Plan Agreement —

 

Primary:

.

 

Contingent:

.

 

Note:  To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement.

 

I understand that I may change these beneficiary designations by filing a new written designation with Cardinal.  I further understand that the designations are automatically revoked if the beneficiary predeceases me or if I name my spouse as beneficiary and our marriage is subsequently dissolved.

 

	
Signature:
    	
 
    	
 
    
	
 
    	
Christopher W.   Bergstrom
    	
 
    

 

Date:                                                     , 20

 

 

Accepted by Cardinal this              day of                                    , 20

 

	
By:
    	
 
    	
 
    
	
 
    	
 
    
	
Print Name:
    	
 
    	
 
    
	
 
    	
 
    
	
Title:
    	
 
    	
 
    
					

 

1

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