Document:

exv10w4

 

Exhibit 10.4

IOMAI CORPORATION

2005 INCENTIVE PLAN

	1.	 	DEFINED TERMS

       Exhibit A, which is incorporated by reference, defines the terms used in the Plan and sets
forth certain operational rules related to those terms.

	2.	 	PURPOSE

       The Plan has been established to advance the interests of the Company by providing for the
grant to Participants of Stock-based and other incentive Awards.

	3.	 	ADMINISTRATION

       The Administrator has discretionary authority, subject only to the express provisions of the
Plan, to interpret the Plan; determine eligibility for and grant Awards; determine, modify or waive
the terms and conditions of any Award; prescribe forms, rules and procedures; and otherwise do all
things necessary to carry out the purposes of the Plan. In the case of any Award intended to be
eligible for the performance-based compensation exception under Section 162(m), the Administrator
will exercise its discretion consistent with qualifying the Award for that exception.
Determinations of the Administrator made under the Plan will be conclusive and will bind all
parties.

	4.	 	LIMITS ON AWARDS UNDER THE PLAN

       (a)      Number of Shares. A maximum of 1,040,000 shares of Stock may be delivered in
satisfaction of Awards under the Plan.  The number of shares of Stock delivered in
satisfaction of Awards shall, for purposes of the preceding sentence, be determined net of shares
of Stock withheld by the Company in payment of the exercise price of the Award or in satisfaction
of tax withholding requirements with respect to the Award. The limit set forth in this Section
4(a) shall be construed to comply with Section 422 of the Code and regulations thereunder. To the
extent consistent with the requirements of Section 422 of the Code and regulations thereunder, and
with other applicable legal requirements (including applicable listing requirements), Stock issued
under awards of an acquired company that are converted, replaced, or adjusted in connection with
the acquisition shall not reduce the number of shares available for Awards under the Plan.

       (b)      Type of Shares. Stock delivered by the Company under the Plan may be authorized
but unissued Stock or previously issued Stock acquired by the Company. No fractional shares of
Stock will be delivered under the Plan.

       (c)      Section 162(m) Limits. The maximum number of shares of Stock for which Stock
Options may be granted to any person in any calendar year and the maximum number of shares of Stock
subject to SARs granted to any person in any calendar year will each be 780,000. The maximum
number of shares subject to other Awards granted to any person in any calendar year will be 140,000
shares. The maximum amount payable to any person in any year under

 

Cash Awards will be $2 million.
The foregoing provisions will be construed in a manner consistent with Section 162(m).

	5.	 	ELIGIBILITY AND PARTICIPATION

       The Administrator will select Participants from among those key Employees and directors of,
and consultants and advisors to, the Company or its Affiliates who, in the opinion of the
Administrator, are in a position to make a significant contribution to the success of the Company
and its Affiliates. Eligibility for ISOs is limited to employees of the Company or of a “parent
corporation” or “subsidiary corporation” of the Company as those terms are defined in Section 424
of the Code.

	6.	 	RULES APPLICABLE TO AWARDS

       (a)      All Awards

                  (1)    Award Provisions. The Administrator will determine the terms of all Awards,
subject to the limitations provided herein. By accepting any Award granted hereunder, the
Participant agrees to the terms of the Award and the Plan. Notwithstanding any provision of this
Plan to the contrary, awards of an acquired company that are converted, replaced or adjusted in
connection with the acquisition may contain terms and conditions that are inconsistent with the
terms and conditions specified herein, as determined by the Administrator.

                  (2)    Term of Plan. No Awards may be made after November 16, 2015, but previously
granted Awards may continue beyond that date in accordance with their terms.

                  (3)    Transferability. Neither ISOs nor, except as the Administrator otherwise
expressly provides, other Awards may be transferred other than by will or by the laws of descent
and distribution, and during a Participant’s lifetime. ISOs (and, except as the Administrator
otherwise expressly provides, other non-transferable Awards requiring exercise) may be exercised
only by the Participant.

                  (4)    Vesting, Etc. The Administrator may determine the time or times at which an
Award will vest or become exercisable and the terms on which an Award requiring exercise will
remain exercisable. Without limiting the foregoing, the Administrator may at any time accelerate
the vesting or exercisability of an Award, regardless of any adverse or potentially adverse tax
consequences resulting from such acceleration. Unless the Administrator expressly provides
otherwise, however, the following rules will apply: immediately upon the cessation of the
Participant’s Employment, each Award requiring exercise that is then held by the Participant or by
the Participant’s permitted transferees, if any, will cease to be exercisable and will terminate,
and all other Awards that are then held by the Participant or by the Participant’s permitted
transferees, if any, to the extent not already vested will be forfeited, except that:

                (A) subject to (B), (C) and (D) below, all Stock Options and SARs held by the
Participant or the Participant’s permitted transferees, if any, immediately prior to the

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     cessation of the Participant’s Employment, to the extent then exercisable, will remain
exercisable for the lesser of (i) a period of three months or (ii) the period ending on the
latest date on which such Stock Option or SAR could have been exercised without regard to
this Section 6(a)(4), and will thereupon terminate;

                (B) all Stock Options and SARs held by a Participant or the Participant’s permitted
transferees, if any, immediately prior to the Participant’s death, to the extent then
exercisable, will remain exercisable for the lesser of (i) the one year period ending with
the first anniversary of the Participant’s death or (ii) the period ending on the latest
date on which such Stock Option or SAR could have been exercised without regard to this
Section 6(a)(4), and will thereupon terminate;

                (C) all Stock Options and SARs held by a Participant or the Participant’s permitted
transferees, if any, immediately prior to the cessation of the Participant’s Employment will
immediately terminate upon such cessation if the Administrator in its sole discretion
determines that such cessation of Employment has resulted for reasons which cast such
discredit on the Participant as to justify immediate termination of the Award; and

                (D) all Stock Options and SARs held by a Non-Employee Director Participant or such
Participant’s permitted transferees, if any, immediately prior to the cessation of the
Participant’s Employment, to the extent then exercisable, will remain exercisable for the
lesser of (i) a period of one year or (ii) the period ending on the latest date on which
such Stock Option or SAR could have been exercised without regard to this Section 6(a)(4),
and will thereupon terminate. 

                  (5)      Taxes. The Administrator will make such provision for the withholding of taxes as
it deems necessary. The Administrator may, but need not, hold back shares of Stock from an Award
or permit a Participant to tender previously owned shares of Stock in satisfaction of tax
withholding requirements (but not in excess of the minimum withholding required by law).

                  (6)      Dividend Equivalents, Etc. The Administrator may provide for the payment of
amounts in lieu of cash dividends or other cash distributions with respect to Stock subject to an
Award.

                  (7)      Rights Limited. Nothing in the Plan will be construed as giving any person the
right to continued employment or service with the Company or its Affiliates, or any rights as a
stockholder except as to shares of Stock actually issued under the Plan. The loss of existing or
potential profit in Awards will not constitute an element of damages in the event of termination of
Employment for any reason, even if the termination is in violation of an obligation of the Company
or Affiliate to the Participant.

                  (8)      Section 162(m). This Section 6(a)(8) applies to any Performance Award intended to
qualify as performance-based for the purposes of Section 162(m) other than a Stock

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Option or SAR.
In the case of any Performance Award to which this Section 6(a)(8) applies, the Plan and such Award
will be construed to the maximum extent permitted by law in a manner consistent with qualifying the
Award for such exception. With respect to such Performance Awards, the Administrator will
preestablish, in writing, one or more specific Performance Criteria no later than 90 days after the
commencement of the period of service to which the performance relates (or at such earlier time as
is required to qualify the Award as performance-based under Section 162(m)). Prior to grant,
vesting or payment of the Performance Award, as the case may be, the Administrator will certify
whether the applicable Performance Criteria have been attained and such determination will be final
and conclusive. No Performance Award to which this Section 6(a)(8) applies may be granted after
the first meeting of the stockholders of the Company held in 2010 until the listed performance
measures set forth in the definition of “Performance Criteria” (as originally approved or as
subsequently amended) have been resubmitted to and reapproved by the stockholders of the Company in
accordance with the requirements of Section 162(m) of the Code, unless such grant is made
contingent upon such approval.

       (b)      Awards Requiring Exercise

                  (1)      Time And Manner Of Exercise. Unless the Administrator expressly provides
otherwise, an Award requiring exercise by the holder will not be deemed to have been exercised
until the Administrator receives a notice of exercise (in form acceptable to the Administrator)
signed by the appropriate person and accompanied by any payment required under the Award. If the
Award is exercised by any person other than the Participant, the Administrator may require
satisfactory evidence that the person exercising the Award has the right to do so.

                  (2)      Exercise Price. The exercise price (or the base value from which appreciation is
to be measured) of each Award requiring exercise shall be 100% (in the case of an ISO granted to a
ten-percent shareholder within the meaning of Section 422(b)(6) of the Code, 110%) of the fair
market value of the Stock subject to the Award, determined as of the date of grant, or such higher
amount as the Administrator may determine in connection with the grant. No such Award, once
granted, may be repriced other than in accordance with the applicable stockholder approval
requirements of The NASDAQ Stock Market.

                  (3)      Payment Of Exercise Price. Where the exercise of an Award is to be accompanied by
payment, the Administrator may determine the required or permitted forms of payment, subject to the
following: all payments will be by cash or check acceptable to the Administrator, or, if so
permitted by the Administrator and if legally permissible, (i) through the delivery of shares of
Stock that have been outstanding for at least six months (unless the Administrator approves a
shorter period) and that have a fair market value equal to the exercise price, (ii) by delivery to
the Company of a promissory note of the person exercising the Award, payable on such terms as are
specified by the Administrator, (iii) through a broker-assisted exercise program acceptable to the
Administrator, (iv) by other means acceptable to the Administrator, or (v) by any combination of
the foregoing permissible forms of payment. The

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delivery of shares in payment of the exercise
price under clause (a)(i) above may be accomplished either by actual delivery or by constructive
delivery through attestation of ownership, subject to such rules as the Administrator may
prescribe.

       (c)       Awards Not Requiring Exercise

       Restricted Stock and Unrestricted Stock, whether delivered outright or under Awards of Stock
Units or other Awards that do not require exercise, may be made in exchange for such lawful
consideration, including services, as the Administrator determines.

	7.	 	EFFECT OF CERTAIN TRANSACTIONS

       (a)       Mergers, etc. Except as otherwise provided in an Award, the following provisions
shall apply in the event of a Covered Transaction in which the Company is not the surviving entity:

                  (1)      Assumption or Substitution. If the Covered Transaction is one in which there is
an acquiring or surviving entity, the Administrator may provide for the assumption of some or all
outstanding Awards or for the grant of new awards in substitution therefor by the acquiror or
survivor or an affiliate of the acquiror or survivor.

                  (2)      Cash-Out of Awards. If the Covered Transaction is one in which holders of Stock
will receive upon consummation a payment (whether cash, non-cash or a combination of the
foregoing), the Administrator will provide for payment (a “cash-out”), with respect to all
outstanding Awards, equal in the case of each affected Award to the excess, if any, of (A) the fair
market value of one share of Stock (as determined by the Administrator in its reasonable
discretion) times the number of shares of Stock subject to the Award, over (B) the aggregate
exercise or purchase price, if any, under the Award (in the case of an SAR, the aggregate base
price above which appreciation is measured), in each case on such payment terms (which need not be
the same as the terms of payment to holders of Stock) and other terms, and subject to such
conditions, as the Administrator determines. 

                  (3)      Other Actions. If the Covered Transaction (whether or not there is an acquiring
or surviving entity) is one in which there is no assumption, substitution or cash-out, each Award
requiring exercise will become fully exercisable, and the delivery of shares of Stock deliverable
under each outstanding Award of Stock Units (including Restricted Stock Units and Performance
Awards to the extent consisting of Stock Units) will be accelerated and such shares will be
delivered, prior to the Covered Transaction, in each case on a basis that gives the holder of the
Award a reasonable opportunity, as determined by the Administrator, following exercise of the Award
or the delivery of the shares, as the case may be, to participate as a stockholder in the Covered
Transaction.

                  (4)      Termination of Awards Upon Consummation of Covered Transaction. Each Award
(unless assumed pursuant to Section 7(a)(1) above), other than outstanding shares of Restricted
Stock (which shall be treated in the same manner as other shares of Stock, subject to

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Section
7(a)(5) below), will terminate upon consummation of the Covered Transaction.

                  (5)      Additional Limitations. Any share of Stock delivered pursuant to Section 7(a)(2)
or Section 7(a)(3) above with respect to an Award may, in the discretion of the Administrator,
contain such restrictions, if any, as the Administrator deems appropriate to reflect any
performance or other vesting conditions to which the Award was subject. In the case of Restricted
Stock, the Administrator may require that any amounts delivered, exchanged or otherwise paid in
respect of such Stock in connection with the Covered Transaction be placed in escrow or otherwise
made subject to such restrictions as the Administrator deems appropriate to carry out the intent of
the Plan.

                  (6)      Section 409A. In the case of an Award subject to and intended to comply with the
requirements of Section 409A of the Code, the payment provisions of this Section 7(a) shall be
applied in a manner consistent with the objective of continued compliance with such requirements.

       (b)       Change of Control Events. Immediately prior to the occurrence of a Change of
Control Event, each outstanding Award granted to a Non-Employee Director that requires exercise
will become fully exercisable, and the delivery of shares of Stock deliverable under each
outstanding Award of Stock Units (including Restricted Stock Units and Performance Awards to the
extend consisting of Stock Units) granted to a Non-Employee Director will be accelerated and such
shares will be delivered.

       (c)       Change in and Distributions With Respect to Stock.

                  (1)      Basic Adjustment Provisions. In the event of a stock dividend, stock split or
combination of shares (including a reverse stock split), recapitalization or other change in the
Company’s capital structure, the Administrator will make appropriate adjustments to the maximum
number of shares specified in Section 4(a) that may be delivered under the Plan and to the maximum
share limits described in Section 4(c), and will also make appropriate adjustments to the number
and kind of shares of stock or securities subject to Awards then outstanding or subsequently
granted, any exercise prices relating to Awards and any other provision of Awards affected by such
change.

                  (2)      Certain Other Adjustments. The Administrator may also make adjustments of the
type described in Section 7(c)(1) above to take into account distributions to stockholders other
than those provided for in Section 7(a) and 7(c)(1), or any other event, if the Administrator
determines that adjustments are appropriate to avoid distortion in the operation of the Plan and to
preserve the value of Awards made hereunder, having due regard for the qualification of ISOs under
Section 422 of the Code and for the performance-based compensation rules of Section 162(m), where
applicable.

                  (3)      Continuing Application of Plan Terms. References in the Plan to shares of Stock
will be construed to include any stock or securities resulting from an adjustment pursuant to this
Section 7.

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	8.	 	LEGAL CONDITIONS ON DELIVERY OF STOCK

       The Company will not be obligated to deliver any shares of Stock pursuant to the Plan or to
remove any restriction from shares of Stock previously delivered under the Plan until: (i) the
Company is satisfied that all legal matters in connection with the issuance and delivery of such
shares have been addressed and resolved; (ii) if the outstanding Stock is at the time of delivery
listed on any stock exchange or national market system, the shares to be delivered have been listed
or authorized to be listed on such exchange or system upon official notice of issuance; and (iii)
all conditions of the Award have been satisfied or waived. If the sale of Stock has not been
registered under the Securities Act of 1933, as amended, the Company may require, as a condition to
exercise of the Award, such representations or agreements as counsel for the Company may consider
appropriate to avoid violation of such Act. The Company may require that certificates evidencing
Stock issued under the Plan bear an appropriate legend reflecting any restriction on transfer
applicable to such Stock, and the Company may hold the certificates pending lapse of the applicable
restrictions.

	9.	 	AMENDMENT AND TERMINATION

       The Administrator may at any time or times amend the Plan or any outstanding Award for any
purpose which may at the time be permitted by law, and may at any time terminate the Plan as to any
future grants of Awards; provided, that except as otherwise expressly provided in the Plan the
Administrator may not, without the Participant’s consent, alter the terms of an Award so as to
affect adversely the Participant’s rights under the Award, unless the Administrator expressly
reserved the right to do so at the time of the Award. Any amendments to the Plan shall be
conditioned upon stockholder approval only to the extent, if any, such approval is required by law
(including the Code or applicable listing requirements), as determined by the Administrator.

	10.	 	OTHER COMPENSATION ARRANGEMENTS

       The existence of the Plan or the grant of any Award will not in any way affect the Company’s
right to Award a person bonuses or other compensation in addition to Awards under the Plan.

	11.	 	WAIVER OF JURY TRIAL

       By accepting an Award under the Plan, each Participant waives any right to a trial by jury in
any action, proceeding or counterclaim concerning any rights under the Plan and any Award, or under
any amendment, waiver, consent, instrument, document or other agreement delivered or which in the
future may be delivered in connection therewith, and agrees that any such action, proceeding or
counterclaim shall be tried before a court and not before a jury. By accepting an Award under the
Plan, each Participant certifies that no officer, representative, or attorney of the Company has
represented, expressly or otherwise, that the Company would not, in the event of any action,
proceeding or counterclaim, seek to enforce the foregoing waivers.

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EXHIBIT A

Definition of Terms

       The following terms, when used in the Plan, will have the meanings and be subject to the
provisions set forth below:

       “Administrator”: The Compensation Committee, except that the Compensation Committee may
delegate (i) to one or more of its members such of its duties, powers and responsibilities as it
may determine; (ii) to one or more officers of the Company the power to grant rights or options to
the extent permitted by Section 157(c) of the Delaware General Corporation Law; (iii) to one or
more officers of the Company the authority to allocate other Awards among such persons (other than
officers of the Company) eligible to receive Awards under the Plan as such delegated officer or
officers determine consistent with such delegation; provided, that with respect to any delegation
described in this clause (iii) the Compensation Committee (or a properly delegated member or
members of such Committee) shall have authorized the issuance of a specified number of shares of
Stock under such Awards and shall have specified the consideration, if any, to be paid therefor;
and (iv) to such Employees or other persons as it determines such ministerial tasks as it deems
appropriate. In the event of any delegation described in the preceding sentence, the term
“Administrator” shall include the person or persons so delegated to the extent of such delegation.

       “Affiliate”: Any corporation or other entity owning, directly or indirectly, 50% or more of
the outstanding Stock of the Company, or in which the Company or any such corporation or other
entity owns, directly or indirectly, 50% of the outstanding capital stock (determined by aggregate
voting rights) or other voting interests.

       “Award”: Any or a combination of the following:

	(i)	 	Stock Options.
	 
	(ii)	 	SARs.
	 
	(iii)	 	Restricted Stock.
	 
	(iv)	 	Unrestricted Stock.
	 
	(v)	 	Stock Units, including Restricted Stock Units.
	 
	(vi)	 	Performance Awards.
	 
	(vii)	 	Cash Awards.
	 
	(viii)	 	Awards (other than Awards described in (i) through (vii) above) that are
convertible into or otherwise based on Stock.

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       “Board”: The Board of Directors of the Company.

       “Cash Award”: An Award denominated in cash.

       “Change of Control Event”: Any or all of the following events:

       (i)       The acquisition by a Person (defined as an individual, entity or group, including a group
within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 40% or more of either (A)
the then outstanding shares of Stock (the “Outstanding Company Stock”) or (B) the combined voting
power of the then outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); provided, that the following
will not constitute a Change of Control Event: (1) any acquisition directly from the Company; (2)
any acquisition by the Company; or (3) any acquisition by an employee benefit plan (or related
trust) sponsored or maintained by the Company or its direct or indirect subsidiaries;

       (ii)       The individuals who, as of November 17, 2005, constituted the Board (the “Incumbent
Directors”) cease for any reason to constitute at least a majority of the Board; provided, that any
individual who becomes a member of the Board subsequent to November 17, 2005 and whose election or
nomination for election was approved by a vote of at least a majority of the Incumbent Directors,
or a committee of the Board delegated the authority to elect or nominate directors by a vote of at
least a majority of the Incumbent Directors, shall be treated as an Incumbent Director unless he or
she assumed office as a result of an actual or threatened election contest with respect to the
election or removal of directors; or

       (iii)       The consummation of a Merger, unless following such Merger (A) the Persons who were the
beneficial owners, respectively, of the Outstanding Company Stock and of the combined voting power
of the Outstanding Company Voting Securities immediately prior to the Merger beneficially own,
directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock
of the entity resulting from or surviving in such Merger and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of directors of the entity
resulting from or surviving in such Merger, (B) no Person (excluding any entity resulting from or
surviving in such Merger or an employee benefit plan (or related trust) of the entity resulting
from or surviving in the Merger) beneficially owns, directly or indirectly, 40% or more of,
respectively, the then outstanding shares of common stock of the entity resulting from or surviving
in such Merger or the combined voting power of the then outstanding voting securities of such
entity entitled to vote generally in the election of directors, except to the extent that such
ownership existed prior to the Merger and (C) at least a majority of the members of the board of
directors of the entity resulting from or surviving in such Merger were Incumbent Directors at the
time of the execution of the initial agreement, or of the action of the Board, providing for such
Merger;

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       (iv)       The stockholders of the Company approve the complete liquidation or dissolution of the
Company; or

       (v)       The consummation of a sale or transfer of all or substantially all of the Company’s
assets.

       “Code”: The U.S. Internal Revenue Code of 1986 as from time to time amended and in effect, or
any successor statute as from time to time in effect.

       “Compensation Committee”: The Compensation Committee of the Board.

       “Company”: Iomai Corporation

       “Covered Transaction”: Any of (i) a Merger, (ii) a sale or transfer of all or substantially
all the Company’s assets, or (iii) a dissolution or liquidation of the Company.

       “Employee”: Any person who is employed by the Company or an Affiliate.

       “Employment”: A Participant’s employment or other service relationship with the Company and
its Affiliates. Employment will be deemed to continue, unless the Administrator expressly provides
otherwise, so long as the Participant is employed by, or otherwise is providing services in a
capacity described in Section 5 to the Company or its Affiliates. If a Participant’s employment or
other service relationship is with an Affiliate and that entity ceases to be an Affiliate, the
Participant’s Employment will be deemed to have terminated when the entity ceases to be an
Affiliate unless the Participant transfers Employment to the Company or its remaining Affiliates.

       “Exchange Act”: The Securities Exchange Act of 1934, as amended.

       “ISO”: A Stock Option intended to be an “incentive stock option” within the meaning of
Section 422 of the Code. Each option granted pursuant to the Plan will be treated as providing by
its terms that it is to be a non-incentive stock option unless, as of the date of grant, it is
expressly designated as an ISO.

       “Merger”: A consolidation, merger or similar transaction or series of related transactions by
the Company.

       “Non-Employee Director”: Any director of the Company who is not an employee of the Company.

       “Participant”: A person who is granted an Award under the Plan.

       “Performance Award”: An Award subject to Performance Criteria. The Compensation Committee in
its discretion may grant Performance Awards that are intended to qualify for the

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performance-based
compensation exception under Section 162(m) and Performance Awards that are not intended so to
qualify.

       “Performance Criteria”: Specified criteria, other than the mere continuation of Employment or
the mere passage of time, the satisfaction of which is a condition for the grant, exercisability,
vesting or full enjoyment of an Award. For purposes of Awards that are intended to qualify for the
performance-based compensation exception under Section 162(m), a Performance Criterion will mean an
objectively determinable measure of performance relating to any or any combination of the following
(measured either absolutely or by reference to an index or indices and determined either on a
consolidated basis or, as the context permits, on a project or program basis or in combinations
thereof): sales; revenues; assets; expenses; earnings before or after deduction for all or any
portion of interest, taxes, depreciation, or amortization, whether or not on a continuing
operations or an aggregate or per share basis; return on equity, investment, capital or assets; one
or more operating ratios; market share; capital expenditures; cash flow; stock price; stockholder
return; sales of particular products or services; acquisitions and divestitures (in whole or in
part); joint ventures, license agreements and strategic alliances; spin-offs, split-ups and the
like; reorganizations; regulatory filings or approvals; clinical trial milestones; reimbursement
approvals; manufacturing milestones; or recapitalizations, restructurings, financings (issuance of
debt or equity) or refinancings. A Performance Criterion and any targets with respect thereto
determined by the Administrator need not be based upon an increase, a positive or improved result
or avoidance of loss. To the extent consistent with the requirements for satisfying the
performance-based compensation exception under Section 162(m), the Administrator may provide in the
case of any Award intended to qualify for such exception that one or more of the Performance
Criteria applicable to such Award will be adjusted in an objectively determinable manner to reflect
events (for example, but without limitation, acquisitions or dispositions) occurring during the
performance period that affect the applicable Performance Criterion or Criteria.

       “Plan”: The Iomai Corporation 2005 Incentive Plan as from time to time amended and in effect.

       “Restricted Stock”: Stock subject to restrictions requiring that it be redelivered or offered
for sale to the Company if specified conditions are not satisfied.

       “Restricted Stock Unit”: A Stock Unit that is, or as to which the delivery of Stock or cash
in lieu of Stock is, subject to the satisfaction of specified performance or other vesting
conditions.

       “Section 162(m)”: Section 162(m) of the Code.

       “SAR”: A right entitling the holder upon exercise to receive an amount (payable in shares of
Stock of equivalent value) equal to the excess of the fair market value of the shares of Stock
subject to the right over the fair market value of such shares at the date of grant.

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       “Stock”: Common Stock of the Company, par value $0.01 per share.

       “Stock Option”: An option entitling the holder to acquire shares of Stock upon payment of the
exercise price.

       “Stock Unit”: An unfunded and unsecured promise, denominated in shares of Stock, to deliver
Stock or cash measured by the value of Stock in the future.

       “Unrestricted Stock”: Stock not subject to any restrictions under the terms of the Award.

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Exhibit 10.5

IOMAI CORPORATION

2006 EMPLOYEE STOCK PURCHASE PLAN

Section 1.       Purpose of Plan

     The Iomai Corporation 2006 Employee Stock Purchase Plan (the “Plan”) is intended to enable
eligible employees of Iomai Corporation (“Iomai”) and such of its Subsidiaries as the Board of
Directors of Iomai (the “Board”) may from time to time designate (Iomai and such Subsidiaries being
hereinafter referred to as the “Company”) to use payroll deductions to purchase shares of common
stock, $.01 par value of Iomai (such common stock being hereafter referred to as “Stock”), and
thereby acquire an interest in the future of Iomai. For purposes of the Plan, a “Subsidiary” is any
corporation that would be treated as a subsidiary of Iomai under §424(f) of the Internal Revenue
Code of 1986, as amended (the “Code”). The Plan is intended to qualify under Code §423 and to be
exempt from the application and requirements of Code §409A, and is to be construed accordingly.

Section 2.       Options to Purchase Stock

     Subject to adjustment pursuant to Section 16 of this Plan, the maximum aggregate number of
shares of Stock available for sale pursuant to the exercise of options (“Options”) granted under
the Plan to employees of the Company (“Employees”) who meet the eligibility requirements set forth
in Section 3 hereof (“Eligible Employees”) is 80,000 shares. The Stock to be delivered upon
exercise of Options under the Plan may be either shares of authorized but unissued Stock or shares
of reacquired Stock, as the Board may determine. If any Option granted under the Plan shall expire
or terminate for any reason without having been exercised in full or shall cease for any reason to
be exercisable in whole or in part, the unpurchased Stock subject to such Option shall again be
available for sale pursuant to the exercise of Options under the Plan.

Section 3.       Eligible Employees

     Subject to the exceptions and limitations set forth below, each Employee will be eligible to
participate in the Plan.

	 	 	      (a)   Any Employee who immediately after the grant of an Option would own (or pursuant to
Code §423(b)(3) would be deemed to own) stock possessing 5% or more of the total combined
voting power or value of all classes of stock of the employer corporation or of its parent
or subsidiary corporation, as defined in Code §424, will not be eligible to receive an
Option to purchase Stock pursuant to the Plan.
	 
	 	 	      (b)   No Employee will be granted an Option under the Plan that would permit his or her
rights to purchase shares of stock under all employee stock purchase plans of Iomai and its
parent and subsidiary corporations (as determined under Code §424) to accrue at a rate which
exceeds $25,000 in fair market value of such stock (determined at the time the Option is
granted) for each calendar year during which any such Option granted to such Employee is
outstanding at any time, as provided in Code §423.

 

Section 4.       Method of Participation

     The “Option Periods” shall be consecutive periods of approximately six months ending on the
third Saturday in February and August of each year, respectively, with the next Option Period
beginning on the Sunday immediately following the last day of the Option Period just ended. The
first such Option Period to begin after the effective date hereof shall begin on February 19, 2006
and ends on August 19, 2006. Except as provided in Section 11, each person who will be an Eligible
Employee on the first day of any Option Period may elect to participate in the Plan for such Option
Period by executing and delivering, by such deadline prior to such first day as the Board may
specify (the “Enrollment Deadline”), a payroll deduction authorization in accordance with Section
5. Such Employee will thereby become a participant (“Participant”) on the first day of such Option
Period and will remain a Participant until his or her participation is terminated as provided in
the Plan.

     Notwithstanding the foregoing, the following special rules will apply for the first Option
Period: (i) Except as provided in Section 11, each person who is an Eligible Employee for such
Option Period will automatically be deemed a Participant, and (ii) no payroll deduction
authorizations will be solicited or accepted prior to the first Option Period. A Participant who
wishes to exercise his or her Option for such Option Period may pay the exercise price by check
acceptable to the Board; provided, that after the filing of a Form S-8 registration statement
during the first Option Period, each Participant, by entering into a payroll deduction
authorization (as described at Section 5 below) with respect to the remainder of the Option Period,
may instead elect to pay the exercise price with the payroll deductions accumulated by such means,
or with a combination of such payroll deductions and check.

Section 5.       Payroll Deduction

     Each payroll deduction authorization will request withholding at a whole percentage, not less
than 2% nor more than 20%, of Compensation per payroll period. Withholding will be accomplished by
means of payroll deductions from payroll dates occurring in the Option Period. For purposes of the
Plan, “Compensation” means all compensation paid to the Participant by the Company and currently
includible in his or her income, including bonuses, commissions and other amounts includible in the
definition of compensation provided in Code §415 and the Treasury Regulations promulgated
thereunder, but not including payments under stock option plans and other employee benefit plans or
any other amounts excluded from the definition of compensation provided in Code §415 and the
Treasury Regulations promulgated thereunder. A payroll deduction authorization will remain in
effect for subsequent Option Periods until it is changed or revoked in accordance with this Section
5 or Section 11, as the case may be. A Participant may change his or her withholding rate for
subsequent Option Periods by filing a new payroll deduction authorization with the Company on or
before the Enrollment Deadline for the Option Period for which the change is to be effective. All
amounts withheld in accordance with a Participant’s payroll deduction authorization will be
credited to a withholding account maintained in the Participant’s name on the books of the Company.
Amounts credited to the withholding account will not be required to be set aside in trust or
otherwise segregated from the Company’s general assets.

-2-

 

Section 6.       Grant of Options

     Each person who is a Participant on the first day of an Option Period will be granted, as of
such day and for such Period, an Option entitling the Participant to acquire shares of Stock equal
in number to the lesser of (a) or (b), where:

	 	 	      (a)   is the lesser of (i) the whole number (disregarding any fractional share amount)
determined by dividing $12,500 by the fair market value of one share of Stock on the first
day of the Option Period and (ii) the whole number (disregarding any fractional share
amount) determined by dividing (A) the balance credited to the Participant’s withholding
account on the last day of the Option Period, by (B) the purchase price per share of the
Stock determined under Section 7; and
	 
	 	 	      (b)   is 2,000.

     The Board will reduce, on a substantially proportionate basis, the number of shares of Stock
purchasable by each Participant upon exercise of his or her Option for an Option Period in the
event that the number of shares then available under the Plan is insufficient. Option grants under
this Section 6 will be automatic.

Section 7.       Purchase Price

     The purchase price of Stock issued pursuant to the exercise of an Option will be 85% of the
lesser of (i) the fair market value of the Stock on the date on which the Option is deemed
exercised pursuant to Section 8 or (ii) the fair market value of the Stock on the date on which the
Option was granted pursuant to Section 6. If the shares of Stock are traded on a national exchange
or trading system (including the Nasdaq National Market), the fair market value for any day will
mean the reported closing price of the Stock for such day; provided, that if such day is not a
trading day, fair market value will mean the reported closing price of the Stock for the next
preceding day which is a trading day. If the shares of Stock are not traded on an exchange or
trading system, the fair market value of such Stock on such date will be established in a manner
determined in good faith by the Board.

Section 8.       Exercise of Options

     If any Employee is a Participant in the Plan on the last day of an Option Period, he or she
will be deemed to have exercised the Option granted to him or her for that Period. Upon such
exercise, the Company will apply the balance of the Participant’s withholding account to the
purchase of the number of whole shares of Stock determined under Section 6 and as soon as
practicable thereafter will evidence the transfer of shares or will deliver the shares to the
Participant and will return to him or her the balance, if any, of his or her withholding account in
excess of the total purchase price of the shares so issued; provided, that if the balance left in
the account consists solely of an amount equal to the value of a fractional share it will be
retained in the Account and carried over to the next Period.

     Notwithstanding anything herein to the contrary, the Company’s obligation to issue and deliver
shares of Stock under the Plan will be subject to the approval required of any governmental
authority in connection with the authorization, issuance, sale or transfer of said

-3-

 

     shares, to any
requirements of any national securities exchange applicable thereto, and to compliance by Iomai
with other applicable legal requirements in effect from time to time.

Section 9.       Interest

     No interest will be payable on withholding accounts.

Section 10.       Taxes

     Payroll deductions are made on an after-tax basis. If the Company determines that the exercise
of an Option or the disposition of shares following the exercise of an Option could result in
employment tax liability, the Company will, as a condition of exercise, make such provision as it
deems necessary to provide for the remittance by the Participant of employment taxes required to be
paid in connection with such exercise or disposition of shares.

Section 11.       Cancellation and Withdrawal

     A Participant who holds an Option under the Plan may at any time prior to exercise thereof
under Section 8 cancel all (but not less than all) of his or her Option by written notice delivered
to the Company. Upon such cancellation, the balance in the Participant’s withholding account will
be returned to the Participant.

     A Participant may terminate his or her payroll deduction authorization as of any date by
written notice delivered to the Company and will thereby cease to be a Participant as of such date.
Any Participant who voluntarily terminates his or her payroll deduction authorization prior to the
last day of an Option Period will be deemed to have canceled his or her Option.

     A Participant who makes a hardship withdrawal from a Company savings plan qualifying under
Code §401(k) (a “401(k) Plan”) will be deemed to have terminated his or her payroll deduction
authorization as of the date of such hardship withdrawal, will cease to be a Participant as of such
date, and will be deemed to have canceled his or her Option. An Employee who has made a hardship
withdrawal from a 401(k) Plan will not be permitted to participate in the Plan until the first
Option Period that begins at least six months after the date of his or her hardship withdrawal.

Section 12.       Termination of Employment; Death of Participant

     Upon the termination of a Participant’s employment with the Company for any reason or the
death of a Participant during an Option Period, the Participant will cease to be a Participant, any
Option held by him or her under the Plan will be deemed canceled, the balance of his or her
withholding account will be returned to the Participant (or his or her estate or designated
beneficiary in the event of the Participant’s death), and he or she will have no further rights
under the Plan.

Section 13.       Equal Rights; Participant’s Rights Not Transferable

     All Participants granted Options under the Plan with respect to any Option Period will have
the same rights and privileges. Each Participant’s rights and privileges under any Option

-4-

 

granted
under the Plan will be exercisable during the Participant’s lifetime only by him or her and except
as provided in Section 12 above may not be sold, pledged, assigned, or transferred in any manner.
In the event any Participant violates or attempts to violate the terms of this Section, any Options
held by him or her may be terminated by the Company and, upon return to the Participant of the
balance of his or her withholding account, all of the Participant’s rights under the Plan will
terminate.

Section 14.       Employment Rights

     Nothing contained in the provisions of the Plan will be construed as giving to any Employee
the right to be retained in the employ of the Company or as interfering with the right of the
Company to discharge any Employee at any time.

Section 15.       Change in Capitalization, Merger

     In the event of any change in the outstanding Stock of Iomai by reason of a stock dividend,
split-up, recapitalization, merger, consolidation, reorganization, or other capital change, the
aggregate number and type of shares available under the Plan, the number and type of shares under
Options granted but not exercised, the maximum number and type of shares purchasable under an
Option, and the Option price will be appropriately adjusted.

     In the event of a sale of all or substantially all of the Stock or a sale of all or
substantially all of the assets of Iomai, or a merger or similar transaction in which the Iomai is
not the surviving corporation or which results in the acquisition of Iomai by another person, the
Board will (a) if Iomai is merged with or acquired by another corporation, provide that each
outstanding Option will be assumed or a substitute Option granted by the acquiror or successor
corporation or a parent or subsidiary of the acquiror or successor corporation, (b) cancel each
Option and return the balances in Participants’ withholding accounts to the Participants, or (c)
pursuant to Section 18, end the Option Period on or before the date of the proposed sale or merger.

Section 16.       Administration of Plan

     The Plan will be administered by the Board, which will have the right to determine any
questions which may arise regarding the interpretation and application of the provisions of the
Plan and to make, administer, and interpret such rules and regulations as it will deem necessary or
advisable. References in the Plan to the Board will include any committee of the Board assigned
responsibility for administering the Plan and any delegates of the Board or such Board committee to
the extent of any delegation by the Board or such committee to such delegates of administrative
responsibilities hereunder.

     The Board may specify the manner in which employees are to provide notices and payroll
deduction authorizations. Notwithstanding any requirement of “written notice” herein, the Board may
permit employees to provide notices and payroll deduction authorizations electronically.

Section 17.       Amendment and Termination of Plan

     Iomai reserves the right at any time or times to amend the Plan to any extent and in any
manner it may deem advisable, by vote of the Board; provided, that any amendment that would

-5-

 

be
treated as the adoption of a new plan for purposes of Code §423 and the regulations thereunder will
have no force or effect unless approved by the shareholders of Iomai within twelve months before or
after its adoption.

     The Plan may be suspended or terminated at any time by the Board. In connection therewith, the
Board may provide that outstanding Options will be exercisable either at the end of the applicable
Option Period as determined under Section 4 above or on such earlier date as the Board may specify
(in which case such earlier date will be treated as the last day of the applicable Option Period).

Section 18.       Approval of Shareholders

     The Plan was approved by the shareholders of Iomai on [November ___], 2005, which was within
twelve months after the date the Plan was adopted by the Board.

Section 19.       Information Regarding Disqualifying Dispositions

     By electing to participate in the Plan, each Participant agrees to provide any information
about any transfer of Stock acquired under the Plan that occurs within two years after the first
business day of the Option Period in which such Stock was acquired as may be requested by the
Company or any subsidiary corporation in order to assist it in complying with the tax laws.

-6-

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