EXHIBIT 10.1

Other Transactions (OT) Agreement/Modification
OTHER TRANSACTION FOR PROTOTYPE AGREEMENT
DRAFT

BETWEEN

GenVec, Inc.
65 West Watkins Mill Road
Gaithersburg, MD 20878

AND

The Department of Homeland Security
Science & Technology Directorate
Washington, DC 20528

Agreement Number:
HSHQDC-07-9-00004
Modification Number:
P00001
Concerning:
Human Adenovirus Type C, Serotype 5

Replication Deficient Foot-and-Mouth Disease (FMD) Serotype-Specific Vectored
Vaccines, and Vectored Biological Immunomodulators

Base Period:
 
Total Value of Base Period:
$5,976,726
GenVec’s Cost Share/Contribution:
$0.00
Government’s Cost Share/Contribution:
$5,976,726
Funds Obligated:
$5,976,726
   
Option 1:
 
Total Value of Option 1:
$5,613,815
GenVec’s Cost Share/Contribution:
$0.00
Government’s Cost Share/Contribution:
$5,613,815
Funds Obligated:
$5,613,815
PR Number:
RSCB-07-00200
Line of Accounting:
NONE000-000-7X-31-01-0 1-002-01-00-0000-00-00-00-0 0-GE-OE-25-11-000000
   
Option 2:
 
Total Value of Option 2:
$6,588,176
GenVec’s Cost Share/Contribution:
$0.00
Government’s Cost Share/Contribution:
$6,588,176
Funds Obligated:
$0.00
PR Number:
TBD
Line of Accounting:
TBD

* The asterisk denotes that confidential portions of this exhibit have been
omitted in reliance on Rule 24b-2 of the Securities Exchange Act of 1934. The
confidential portions have been submitted separately to the Securities and
Exchange Commission.

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Authority: Section 831 of the Homeland Security Act of 2002, Public Law 107-296
The Modification of the Agreement is entered into between the United States of
America, hereinafter called the Government, represented by The Department of
Homeland Security (DHS), and GenVec, Inc., pursuant to and under US Federal law.

FOR GenVec:
 
FOR DHS:
     
/s/ Douglas J. Swirsky
 
/s/ Timothy B. Davis
GenVec/Date
 
OT Agreements Officer/Date

* The asterisk denotes that confidential portions of this exhibit have been
omitted in reliance on Rule 24b-2 of the Securities Exchange Act of 1934. The
confidential portions have been submitted separately to the Securities and
Exchange Commission.
 

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The following articles are revised as follows:

ARTICLE II: TERM is amended to add the following:

The period of performance of Option 2 of this agreements starts on date of award
and ends on 28 February 2010.
 
ARTICLE III: STATEMENT OF OBJECTIVES is revised to incorporate the following
tasks for Option 2:

I. Background

The Department of Homeland Security (DHS) is committed to using cutting edge
technologies and scientific talent in its quest to make America safer. DHS’s
Directorate of Science & Technology (S&T) is tasked with researching and
organizing the scientific, engineering, and technological resources of the
United States and leveraging these existing resources into technological tools
to help protect the homeland. In support of this effort, the DHS S&T Plum Island
Animal Disease Center (PIADC) in Long Island, NY, is a unique research facility
and critical national asset conducting research on diseases of livestock to
protect America from terrorist threats directed against agriculture from the
intentional introduction of diseases. As defined in Homeland Security
Presidential Directive-7 (HSPD-7) and HSPD-9, the Secretary of Homeland Security
is responsible for coordinating the overall national effort to enhance the
protection of the critical infrastructure and key resources of the United
States, including the defense of agriculture and food. To fulfill these
requirements, DHS S&T supports programs at PIADC to strengthen the nation’s
ability to predict and respond to the incursion of a foreign animal disease.

DHS S&T requires scientific, vaccine development and regulatory services from
GenVec, Inc. (GenVec). GenVec is a non-traditional contractor that has core
competencies in patent protected technology platforms for replication-defective
recombinant adenovirus serotype 5(rAd5) based-vaccines and therapeutic product
candidates. GenVec’s technology has been successfully applied to discovery,
pre-clinical, and clinical (Phase I-II) trials for human vaccines. GenVec also
has experience in Ad5 production (scale-up and downstream processing) with an
integrated QA program.
 
GenVec has held a historical contractual scientific relationship with the USDA
ARS on a Foot-and-Mouth Disease Virus (FMDV) countermeasure R&D program.
Specifically, USDA and GenVec entered into Specific Cooperative Agreements
(SCAs) in 2004-2005 and 2005-2006 to use reasonable commercial efforts to
construct, produce and test a rAd5 based vector containing FMDV serotype empty
capsids as part of a Plum Island FMD vaccine and immunomodulator program. These
SCAs were funded through DHS-USDA interagency agreements and DHS S&T scientists
have been involved in the testing and evaluation of several rAd5 based vaccine
vectors since 2005. In addition, USDA and GenVec have been interacting through a
Collaborative Research and Development Agreement (CRADA) since 2004. The
objective of the CRADA is to jointly construct and test GenVec Advectors
expressing FMD genes and livestock cytokines, and to identify Advectors and
complementing cell lines that have the potential to serve as a viral-vectored
platform for a new generation of FMD vaccines. DHS S&T scientists have
participated in the USDA-GenVec CRADA since 2004 through a DHS-USDA ARS
interagency agreement on the joint research and development of FMD
countermeasures, such as FMD vaccines and biological immunomodulators.

* The asterisk denotes that confidential portions of this exhibit have been
omitted in reliance on Rule 24b-2 of the Securities Exchange Act of 1934. The
confidential portions have been submitted separately to the Securities and
Exchange Commission.
 

--------------------------------------------------------------------------------

Based on the successful technical outcome to date of the base year contract
agreement (awarded 1 February 2007) and the initiation and acceleration of
pre-product development activities at GenVec (originally targeted for option
year 1) that has resulted in the acceleration of lead FMD vaccine material for
testing, DHS would like to move forward with GenVec and exercise option year 2
to allow uninterrupted continuation and development of the lead FMD vaccine
candidate for eventual conditional product licensing * by USDA Center for
Veterinary Biologics. These products would be made available for potential
manufacture and procurement by the USDA National Center for Animal Health
Emergency Management National Veterinary Stockpile to help accomplish critical
mission objectives with regard to live FMDV and vaccine countermeasures against
high consequence Foreign Animal Diseases such as those caused by FMDV.
 
II. Scope of Work
 
For option year 2, no further work activities for milestone 1,*

For option year 2, work activities for milestone 2, *

For option year 2, work activities for milestone 3, *

For option year 2, no further work activities for milestone 4, *

For option year 2, milestone 5, *
 
For option year 2, milestone 6 *

For option year 2, work activities for milestones 7 *

For option year 2, work activities for 8 from the original SOW *

For option year 2, milestone 9 *

For option year 2, milestone 10 *

* The asterisk denotes that confidential portions of this exhibit have been
omitted in reliance on Rule 24b-2 of the Securities Exchange Act of 1934. The
confidential portions have been submitted separately to the Securities and
Exchange Commission.
 

--------------------------------------------------------------------------------

 
For option year 2, a new milestone 11 has been added with the following work
activities:

 
1.
*

 
2.
*

 
3.
*

III. Deliverables.

See Attachment II for detailed list and description of technical data and
physical deliverables associated with each of the four revised milestones
(milestones 6, 7, 9, and 10) and the new milestone (milestones 11).
 
IV. Other Contract Details

A.
Period of Performance. The period of performance for this revised SOW is a base
period from the contract year one option award date to February 28, 2010..  DHS
may give subsequent extension notices to GenVec, Inc. in writing for further
performance in accordance with the terms of this SOW.

B.
Travel. All travel must be approved by the DHS Technical Representative. All
foreign travel must be approved in advance by the ORD Program Manager, DHS
Programs, Plans and Budgets (PPB), and the DHS S&T Special Assistant for
International Policy.

C.
DHS-Furnished Information.

 
i.
DHS will provide certain DHS information, materials, and forms unique to DHS to
GenVec, Inc. to support certain tasks under this SOW. Delays in the supply of
DHS information, materials to GenVec could result in delays to the completion of
certain deliverables.

 
ii.
The DHS S&T Technical Representative identified in this SOW will be the point of
contact (POC) for identification of any required information to be supplied by
DHS.

 
iii.
GenVec, Inc. will prepare any documentation according to the guidelines provided
by DHS.

E.
Place of Performance. GenVec, Inc. will perform the work under this SOW at their
place of R&D business, located in Gaithersburg, MD and through the use of
sub-contractors where required as identified in this SOW.

F.
DHS-Furnished Property. DHS property will not be provided to GenVec, Inc. unless
otherwise agreed to by the parties of the agreement.

G.
Deliverables. GenVec, Inc. will provide all deliverables identified in this SOW
directly to the DHS S&T Technical Representative with a copy of the transmittal
letter to the Other Transaction Contracting Officer and as otherwise specified
in this SOW.

* The asterisk denotes that confidential portions of this exhibit have been
omitted in reliance on Rule 24b-2 of the Securities Exchange Act of 1934. The
confidential portions have been submitted separately to the Securities and
Exchange Commission.
 

--------------------------------------------------------------------------------

H.
Publications. All manuscripts must be approved prior to submission by the DHS
S&T Technical Representative at PIADC and by the GenVec Technical Representative
with approval not to be unreasonably withheld by either party.

I.
Program Status Report. GenVec, Inc. will deliver a quarterly program status
reports to the DHS S&T Technical Representative and DHS S&T Resource Manager
containing the following metrics: (1) monthly scientific reports will be
delivered to the DHS S&T Technical Representative according to mutually agreed
upon format and content requirements; and (2) a monthly report, including
financial, schedule, and scope information, risk information and an assessment
of performance will be delivered to the DHS S&T Technical Representative and the
DHS S&T Resource Manager. Financial data should include monthly expenditures for
labor, travel and equipment.

J.
Security Requirements. All work performed under this SOW is unclassified unless
otherwise specified by DHS. If classified work is required under this SOW, DHS
will provide specific guidance to the contractor as to which work will be
conducted in a classified manner and at which classification level. GenVec,
Inc. participants will also adhere to applicable government orders, guides, and
directives while performing the work hereunder.

V. Points of Contact

GenVec, Inc. Points of Contact (POCs) are as follows:

 
·
Technical POC(s) –

*
65 West Watkins Road
Gaithersburg, MD 20878
Phone : *

 
·
Financial POC(s) –

*
65 West Watkins Road
Gaithersburg, MD 20878
Phone: *

* The asterisk denotes that confidential portions of this exhibit have been
omitted in reliance on Rule 24b-2 of the Securities Exchange Act of 1934. The
confidential portions have been submitted separately to the Securities and
Exchange Commission.

--------------------------------------------------------------------------------

The DHS POCs are as follows:

 
·
DHS S&T Technical Representative –

*
Branch Chief for Agricultural Security
Director for Joint Agro Defense Office (JADO)
Science & Technology
Department of Homeland Security
Washington, DC 20528
Voice: *
Fax: *
Mobile: *
Email: *
 

 
·
Resource Manager

*
Department of Homeland Security
ATTN: Science and Technology Directorate/Office, *
Washington, DC 20528
*
*
 
Either party may change its representatives named in this Statement of Work by
written notification to the other Party. The Government will effect the change
as stated in subparagraph C.4 of Article IV of the Other Transaction Agreement.
 
* The asterisk denotes that confidential portions of this exhibit have been
omitted in reliance on Rule 24b-2 of the Securities Exchange Act of 1934. The
confidential portions have been submitted separately to the Securities and
Exchange Commission.
 

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ATTACHMENT I – STATEMENT OF WORK EXECUTION (Option Year 2 Funded Milestones)

Milestone 2: *

General Approach

*
 
Milestone 3: *

General Approach

*
Milestone 6: *

General Approach

*

Milestone 7: *

General Approach

*

Milestone 9: *

General Approach

*

Milestone 11: *

General Approach

*

* The asterisk denotes that confidential portions of this exhibit have been
omitted in reliance on Rule 24b-2 of the Securities Exchange Act of 1934. The
confidential portions have been submitted separately to the Securities and
Exchange Commission.
 

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LIST OF TECHNICAL DELIVERABLES
(BASE AGEEMENT, OPTION YEAR ONE, AND OPTION YEAR TWO)
 
Milestone
 
Deliverables
 
*
 
*
 
*
 
Timeline
Milestone 1 
 
*
 
*
 
*
 
*
 
*
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*
 
*
 
*
 
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*
 
*

* The asterisk denotes that confidential portions of this exhibit have been
omitted in reliance on Rule 24b-2 of the Securities Exchange Act of 1934. The
confidential portions have been submitted separately to the Securities and
Exchange Commission.
 

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Milestone 1 - continued
 
*
 
*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*
   
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*
Milestone 2
 
*
 
*
 
*
 
*
 
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*
 
*
   
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*
 
*
 
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*
 
*
Milestone 3
 
*
 
*
 
*
 
*
 
*
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*
 
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*
 
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*
   
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*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*

* The asterisk denotes that confidential portions of this exhibit have been
omitted in reliance on Rule 24b-2 of the Securities Exchange Act of 1934. The
confidential portions have been submitted separately to the Securities and
Exchange Commission.
 

--------------------------------------------------------------------------------

 
Milestone 4
 
*
 
*
 
*
 
*
 
*
* 
 
*
 
*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*
Milestone 5
 
*
 
*
 
*
 
*
 
*
* 
 
*
 
*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*
Milestone 6
 
*
 
*
 
*
 
*
 
*
* 
 
*
 
*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*
Milestone 7
 
*
 
*
 
*
 
*
 
*
* 
 
*
 
*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*
Milestone 8
 
*
 
*
 
*
 
*
 
*
* 
 
*
 
*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*
Milestone 9
*
 
*
 
*
 
*
 
*
 
*

* The asterisk denotes that confidential portions of this exhibit have been
omitted in reliance on Rule 24b-2 of the Securities Exchange Act of 1934. The
confidential portions have been submitted separately to the Securities and
Exchange Commission.

--------------------------------------------------------------------------------

 
Milestone 10
 
*
 
*
 
*
 
*
 
*
* 
 
*
 
*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*
Milestone 11
 
*
 
*
 
*
 
*
 
*
* 
 
*
 
*
 
*
 
*
 
*
   
*
 
*
 
*
 
*
 
*

* The asterisk denotes that confidential portions of this exhibit have been
omitted in reliance on Rule 24b-2 of the Securities Exchange Act of 1934. The
confidential portions have been submitted separately to the Securities and
Exchange Commission.

--------------------------------------------------------------------------------

OPTION YEAR 2 – MILESTONE DELIVERABLES, BUDGET and PAYMENT SCHEDULE

Milestone
 
Budget
 
Payment Schedule
 
2- *
   

*
   

*
 
3- *
   
*
   
*
 
6- *
   

*
   

*
 
7- *
   
*
   
*
 
8- *
   
*
   
*
 
9- *
   

*
   
*
 
10- *
   

*
   

*
 
11- *
   
*
   
*
 
TOTAL OPTION YEAR 2
   
6,588,176
   
6,588,176
 

* The asterisk denotes that confidential portions of this exhibit have been
omitted in reliance on Rule 24b-2 of the Securities Exchange Act of 1934. The
confidential portions have been submitted separately to the Securities and
Exchange Commission.

--------------------------------------------------------------------------------