Document:

Unassociated Document

    
       

      EXHIBIT
10.27

    

    

      
        
          
            
              
                
                  	
                          AWARD/CONTRACT

                        	
                          1.

                        	
                          THIS
      CONTRACT IS A RATED ORDER
UNDER DPAS (15 CFR 350)

                        	
                          RATING

                        	
                          PAGE

                          1

                        	
                          OF
      PAGES

                          3

                        

                

              

            

          

        

      

      
        
          
            
              
                
                  
                    	
                            2.
      CONTRACT (Proc.
      Inst. Ident.) NO.

                          	
                              3.
      EFFECTIVE DATE

                          	
                              4.
      REQUISITION/PURCHASE REQUEST/PROJECT NO.

                          
	
                            HSHQDC-10-C-00034

                          	
                              01/22/2010

                          	
                              RSCB-09-00141

                          

                  

                

              

            

          

        

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    5.
      ISSUED BY

                                  	
                                    CODE  

                                  	
                                      DHS/OPO/S&T/CHEMBIO

                                  	
                                      6.
      ADMINISTERED BY (If
      other than Block 5)

                                  	
                                    CODE

                                  	
                                    DHS/OPO/S&T/CHEMBIO

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	
                                                  U.S.
      Dept. of Homeland Security

                                                  Office
      of Procurement Operations

                                                  S&
      T Acquisition Division

                                                  245
      Murray Lane, SW

                                                  Building
      410

                                                  Washington
      DC 200528

                                                	
                                                    U.S.
      Dept. of Homeland Security Office of

                                                    Procurement
      Operations S&T Acquisition Division

                                                    245
      Murray Lane, SW

                                                    Building
      410

                                                    Washington
      DC 20528

                                                
	
                                                  7. NAME AND ADDRESS
      OF CONTRACTOR (No.,
      street, city, county, State and Zip
    Code)

                                                	
                                                    8.
      DELIVERY

                                                
	
                                                  GENVEC
      INC

                                                	
                                                     o

                                                	
                                                  FOB
      ORIGIN

                                                	
                                                  x

                                                	
                                                  OTHER
      (See
      Below)

                                                
	
                                                  65
      WEST WATKINS MILL ROAD

                                                  ATTN
      HORACIO CORREA JR

                                                  GAITHERSBURG
      MD 208784021

                                                	
                                                    9.
      DISCOUNT FOR PROMPT PAYMENT

                                                  Net
      30

                                                

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	 
      	
                                                  10.
      SUBMIT INVOICES

                                              	 
      	
                                                ITEM

                                              
	 
      	
                                                  (4
      copies unless otherwise specified)

                                              	
                                                

                                              	 
      
	
                                                CODE    806729547000

                                              	
                                                FACILITY
      CODE

                                              	
                                                  TO
      THE ADDRESS SHOWN  IN

                                              	 
      	 
      
	 	 	 	 	 

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  11.
      SHIP TO/MARK FOR

                                	
                                  CODE   

                                	
                                  DHS

                                	
                                    12.
      PAYMENT WILL BE MADE BY

                                	
                                  CODE

                                	
                                  DHS-S&T-INV

                                
	
                                  Department
      of Homeland Security

                                	
                                    DHS
      ICE

                                
	
                                  245
      Murray Lane

                                	
                                    Burlington
      Finance Center

                                
	
                                  Bldg.
      410

                                	
                                    PO
      Box 1000

                                
	
                                  Washington
      DC 20528

                                	
                                    Attn:
      S&T Division Chem Bio

                                
	 
      	
                                    SAT.Invoice.Consolidation@dhs.gov

                                
	 
      	
                                    Williston
      VT 05495-1000

                                
	
                                  13.
      AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION

                                	
                                    14.
      ACCOUNTING AND APPROPRIATION DATA

                                
	
                                     o
      10 U.S.C. 2304 (c)
      (        )      o 41 U.S.C. 253 (c)
      (        )

                                	
                                  See
      Schedule

                                

                        

                      

                    

                  

                

              

            

          

        

      

      
        
          
            
              
                
                  
                    
                      
                        	
                                15A.
      ITEM NO.

                              	
                                15B.
      SUPPLIES/SERVICES

                              	
                                15C.

                                QUANTITY

                              	
                                15D.

                                UNIT

                              	
                                15E.
      UNIT PRICE

                              	
                                15F.
      AMOUNT

                              
	 
      	
                                Continued

                                 

                              	 
      	 
      	 
      	 
      

                      

                    

                  

                

              

            

          

        

      

      
        
          
            
              
                	
                        15G.
      TOTAL AMOUNT OF CONTRACT

                      	
                        

                      	
                        $3,809,122.0

                      

              

            

          

        

      

      16.  TABLE
OF CONTENTS

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            	
                                                                                    (X)

                                                                                  	
                                                                                    SEC

                                                                                  	
                                                                                      DESCRIPTION

                                                                                  	
                                                                                    PAGE(S)

                                                                                  	
                                                                                    (X)

                                                                                  	
                                                                                    SEC

                                                                                  	
                                                                                    DESCRIPTION

                                                                                  	
                                                                                    PAGE(S)

                                                                                  
	 
      	
                                                                                    PART
      I - THE SCHEDULE

                                                                                  	                     	 
      	
                                                                                    PART
      II - CONTRACT CLAUSES

                                                                                  	 
      
	
                                                                                    o

                                                                                  	
                                                                                    A

                                                                                  	
                                                                                      SOLICITATION/CONTRACT
      FORM

                                                                                  	 
      	 
      	
                                                                                    I

                                                                                  	
                                                                                      CONTRACT
      CLAUSES

                                                                                  	 
      
	
                                                                                    o

                                                                                  	
                                                                                    B

                                                                                  	
                                                                                      SUPPLIES
      OR SERVICES AND PRICES/COSTS

                                                                                  	 
      	 
      	
                                                                                    PART
      III - LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACH.

                                                                                  
	
                                                                                    o

                                                                                  	
                                                                                    C

                                                                                  	
                                                                                      DESCRIPTION/SPECS/WORK
      STATEMENT

                                                                                  	 
      	 
      	
                                                                                    J

                                                                                  	
                                                                                      LIST
      OF ATTACHMENTS

                                                                                  	 
      
	
                                                                                    o

                                                                                  	
                                                                                    D

                                                                                  	
                                                                                      PACKAGING
      AND MARKING

                                                                                  	 
      	 
      	
                                                                                    PART
      IV - REPRESENTATIONS AND INSTRUCTIONS

                                                                                  
	
                                                                                    o

                                                                                  	
                                                                                    E

                                                                                  	
                                                                                      INSPECTION
      AND ACCEPTANCE

                                                                                  	 
      	 
      	
                                                                                    K

                                                                                  	
                                                                                      REPRESENTATIONS,
      CERTIFICATIONS AND

                                                                                  	 
      
	
                                                                                    o

                                                                                  	
                                                                                    F

                                                                                  	
                                                                                      DELIVERIES
      OR PERFORMANCE

                                                                                  	 
      	 
      	 
      	
                                                                                      OTHER
      STATEMENTS OF OFFERORS

                                                                                  	 
      
	
                                                                                    o

                                                                                  	
                                                                                    G

                                                                                  	
                                                                                      CONTRACT
      ADMINISTRATION DATA

                                                                                  	 
      	 
      	
                                                                                    L

                                                                                  	
                                                                                      INSTRS.,
      CONDS., AND NOTICES TO OFFERORS

                                                                                  	 
      
	
                                                                                    o

                                                                                  	
                                                                                    H

                                                                                  	
                                                                                      SPECIAL
      CONTRACT REQUIREMENTS

                                                                                  	 
      	 
      	
                                                                                    M

                                                                                  	
                                                                                      EVALUATION
      FACTORS FOR AWARD

                                                                                  	 
      

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      CONTRACTING
OFFICER WILL COMPLETE 17 OR 18 AS APPLICABLE

      
        
          
            
              
                
                  	
                          17.
      x CONTRACTOR’S
      NEGOTIATED AGREEMENT (Contractor
      is required to sign this
      document and return       
       1        
      copies
      to issuing office.)  Contractor agrees to furnish and deliver
      all items or perform all the services set forth or otherwise identified
      above and on any continuation sheets for the consideration stated herein.
      The rights and obligations of the parties to this contract shall be
      subject to and governed by the following documents: (a) this
      award/contract, (b) the solicitation, if and, and (c) such provisions,
      representations, certifications and specifications, as are attached or
      incorporated by reference herein.  (Attachment
      are listed herein.)

                        	 	
                          18. o  AWARD
      (Contractor
      is not required to sign this document.) Your offer on Solicitation
      Number _________________________________________,

                          including
      the additions or changes made by you which additions or changes are set
      forth in full above, is hereby accepted as to the items listed above and
      on any condition sheets.  This award consummates the contract
      which consists of the following documents: (a) Government’s solicitation
      and our offer, and (b) this award/contract.

                          No
      further contractual document is
necessary.

                        

                

              

            

          

        

      

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    	
                                                            19A.
      Name and Title of Signer

                                                            Douglas
      J. Swirsky, Chief Financial Officer

                                                          	 
      	 	
                                                            20A.
      Name of Contracting Officer

                                                            Kristian
      Jovanovic

                                                          	 
      
	
                                                            19B.
      Name of Contractor

                                                            By:
      /s/ Douglas
      J. Swirsky

                                                            (signature
      of person authorized to sign)

                                                          	
                                                              19C.
      Date Signed

                                                              01/28/2010

                                                          	 	
                                                            20B.
      United States of America

                                                            By:
      /s/ Kristian
      Jovanovic

                                                            (signature
      of contracting officer

                                                          	
                                                              20C.
      Date signed

                                                              02/12/2010

                                                          

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
            
              	
                      NSN
      7541-7-152 mei

                    	
                      OPTIONAL
      FORM 336 14.86]

                    
	 
      	
                      SpOrtSored
      In GSA

                    
	 
      	
                      RAE
      (4 El CFR) 53.110

                    

            

          

        

      

      
         

        * 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.

        HSHQDC-10-C-00034

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    
 

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                CONTINUATION
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      NO OF DOCUMENT BEING CONTINUED

                              	
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                                HSHOC-10-C-00034

                              	
                                2

                              	
                                3

                              
	
                                NAME
      OF OFFEROR OR CONTRACTOR

                                GENVEC
      INC

                              

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              	
                                                                      ITEM NO

                                                                      (A)

                                                                    	 
      	
                                                                      SUPPLIES/SERVICES

                                                                      (B)

                                                                    	 
      	
                                                                      QUANTITY

                                                                      (C)

                                                                    	 
      	
                                                                      UNIT

                                                                      (D)

                                                                    	 
      	
                                                                      UNIT PRICE

                                                                      (E)

                                                                    	 
      	
                                                                      AMOUNT

                                                                      (F)

                                                                    
	 
      	 
      	
                                                                      DUNS
      Number:   806729547+0000

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      Division:   Chemical
      & Biological

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      PPA:   Chemical
      & Biological

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      Thrust:   Agriculture

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      Program:   Foreign
      Animal Diseases (FAD)

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      Project:   FAD
      Vaccines and Diagnostics

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      Performer:   GenVec

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      Appropriation
      Year:   FY09 (9X Funds)

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      Budget
      Authority:   No-Year R&D Funds

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 	 	 	 	 	 	 	 	 	 	 
	 
      	 
      	
                                                                      ALC:   70-08-1513

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      APPS:   70X0800

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 	 	 	 	 	 	 	 	 	 	 
	 
      	 
      	
                                                                      Description:
      The purpose of this Cost Plus Fixed Fee contract, which is awarded under
      the Department of Homeland Security (DHS) Long Range Broad Agency
      Announcement, is to provide support for research and development of a
      molecular Foot-and-Mouth Disease (FMD) vaccine, in accordance with the
      attached Terms and Conditions and Statement of Work.

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 	 	 	 	 	 	 	 	 	 	 
	 
      	 
      	
                                                                      Delivery:   365
      Days After Award

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      Accounting
      Info:

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      NONE000-000-9X-31-01-01-002-01-00-0000-00-00-00-00-GE-OE-25-50-000000

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      FOB:   Destination

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      Period
      of Performance:  01/22/2010 to 01/21/2012

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 	 	 	 	 	 	 	 	 	 	 
	
                                                                      0001

                                                                    	 
      	
                                                                      Base
      Year:   Foreign Animal Disease Program support.

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                                      3,809,122.00

                                                                    
	 	 	 	 	 	 	 	 	 	 	 
	 
      	 
      	
                                                                      01/22/2010
      until 01/21/2011

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 	 	 	 	 	 	 	 	 	 	 
	 
      	 
      	
                                                                      Est
      Unit Cost:   $*

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      Fixed
      Fee:   $*

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      Total
      CPFF:   $3,809,122.00

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      Obligated
      Amount:   $3,809,122.00

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 	 	 	 	 	 	 	 	 	 	 
	
                                                                      0002

                                                                    	 
      	
                                                                      Option
      Year:   Foreign Animal Disease Program support.

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	
                                                                      0.00

                                                                    
	 	 	 	 	 	 	 	 	 	 	 
	 
      	 
      	
                                                                      01/22/2011
      until 01/21/2012

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 	 	 	 	 	 	 	 	 	 	 
	 
      	 
      	
                                                                      Est
      Unit Cost:   $*

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      Fixed
      Fee:   $*

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                      Total
      CPFF:   $746,766.00

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 	 	 	 	 	 	 	 	 	 	 
	 
      	 
      	
                                                                      Amount:   $746,766.00(Option
      Line Item)

                                                                    	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 	 	 	 	 	 	 	 	 	 	 
	 
      	
                                                                        

                                                                    	
                                                                      Continued  
      ...

                                                                    	
                                                                        

                                                                    	 
      	
                                                                        

                                                                    	 
      	
                                                                        

                                                                    	 
      	
                                                                        

                                                                    	 
      

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          	
                  NSN
      7540-01-152-8067

                	
                  OPTIONAL
      FORM 336(4-86)

                
	 
      	
                  Sponsored
      by GSA

                
	 
      	
                  FAR
      (49CFR) 53.110

                

        

      

    

     

    * 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.

    
      HSHQDC-10-C-00034

       

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
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                                  HSHOC-10-C-00034

                                	
                                  3

                                	
                                  3

                                
	
                                  NAME
      OF OFFEROR OR CONTRACTOR

                                  GENVEC
      INC

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	
                                                  ITEM NO

                                                  (A)

                                                	 
      	
                                                  SUPPLIES/SERVICES

                                                  (B)

                                                	 
      	
                                                  QUANTITY

                                                  (C)

                                                	 
      	
                                                  UNIT

                                                  (D)

                                                	 
      	
                                                  UNIT PRICE

                                                  (E)

                                                	 
      	
                                                  AMOUNT

                                                  (F)

                                                
	 
      	 
      	
                                                  Product/Service
      Code:   AA34

                                                	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                  The
      total amount of award: $4,555,888.00.  The obligation for this
      award is shown in box 15G.

                                                	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                                                    

                                                	 
      	
                                                    

                                                	 
      	
                                                    

                                                	 
      	
                                                    

                                                	 
      	
                                                    

                                                	 
      

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        	
                NSN
      7540-01-152-8067

              	
                OPTIONAL
      FORM 336(4-86)

              
	 
      	
                Sponsored
      by GSA

              
	 
      	
                FAR
      (49CFR) 53.110

              

      

    

     

    * 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.

    HSHQDC-10-C-00034

    
    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

     

    Exhibit 10.27

     

    B.0 SUPPLIES/SERVICES AND
PRICES/COSTS

     

    B.1
CONTRACT TYPE AND SCHEDULE OF ITEMS

     

    This is a
Cost Plus Fixed Fee type contract.  Under this contract, GenVec will
conduct Research and Development of a molecular Foot-and-Mouth Disease vaccine
for the Department of Homeland Security, in accordance with Section C and
Section J entitled “Statement of Work” (SOW).

     

    B.2
CONTRACT LINE ITEMS

     

    1.  The
Contractor shall provide the Contract Line Items (CL1Ns) identified below on a
Cost Plus Fixed Fee (CPFF) basis.  The fixed fee for all CLINs is
listed below.  The Contractor shall consider the Estimated Costs to be
Not-To-Exceed (NTE) ceilings that can be changed only through a contract
modification.

     

    
      
        	
                CLIN

              	
                Supplies /Services

              	
                 Qty

              	
                 Unit

              	
                 Est Unit Cost

              	
                 Fixed Fee

              	
                 Total CPFF

              
	
                0001

              	
                Base Year

              	
                 1

              	
                 LOT

              	
                 $*

              	
                 $*

              	
                 $3,809,122

              
	 
      	
                *

              	 
      	 
      	 
      	 
      	 
      
	 
      	
                *

              	 
      	 
      	 
      	 
      	 
      
	 
      	
                *

              	 
      	 
      	 
      	 
      	 
      
	 
      	
                *

              	 
      	 
      	 
      	 
      	 
      
	 
      	
                *

              	 
      	 
      	 
      	 
      	 
      
	 
      	
                *

              	 
      	 
      	 
      	 
      	 
      
	
                0002

              	
                Option
      Year

              	
                 1

              	
                 LOT

              	
                 $*

              	
                 $*

              	
                 $746,766

              
	 
      	
                AdVector
      Technology Development to Improve AdFMD Vaccine Potency -  Milestone
      R1, New FMD serotype vectors

              	 
      	 
      	 
      	 
      	 
      
	 
      	
                Total
      Not-To-Exceed

              	 
      	 
      	
                 $4,031,759

              	
                 $524,129

              	
                 $4,555,888

              

      

    

     

    
      
        
          	
                  NSN
      7541-7-152 mei

                	
                  OPTIONAL
      FORM 336 14.86]

                
	 
      	
                  SpOrtSored
      In GSA

                
	 
      	
                  RAE
      (4 El CFR) 53.110

                

        

      

    

     

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    2. The
sum of funds allotted to this contract and available for payment of costs and
fee through 21 January 2011 in accordance with the clause 52.232.20 in Section I
entitled “Limitation of Cost” is $3,809.122.

     

    3. As
provided in paragraph (a)(2), the license granted in ATTACHMENT 3 entitled “TO
BE USED AS ALTERNATE II TO THE CLAUSE AT 52.227-14, RIGHTS IN DATA-GENERAL”
shall remain in effect for the term of all patents licensed hereunder without
regard to the expiration, completion, or termination of this
contract.

     

    C.0 DESCRIPTION /
SPECIFICATIONS / STATEMENT OF WORK

     

    C.1
STATEMENT OF WORK

     

    The work
and services to be performed under this contract shall conform with requirements
contained in the Statement of Work entitled Attachment 1.  See Section
J.

     

    D.0 PACKAGING AND
MARKING

     

    D.1
PACKAGING AND MARKING

     

    Deliverables
shall be electronically submitted to *, and/or provided in
accordance with the Statement of Work.

     

    E.0 INSPECTION AND
ACCEPTANCE

     

    E.1
CLAUSES INCORPORATED BY REFERENCE

     

    The
following FAR clauses are available in full text at http://farsite.hill.af.mil and
incorporated by reference into this contract:

     

    52.246-9
Inspection of Research and Development (Short Form) (APR 1984)

     

    E.2
INSPECTION AND ACCEPTANCE BY THE GOVERNMENT

     

    The
Contracting Officer’s Technical Representative (COTR) identified in Section G of
this Contract is responsible for inspection and acceptance of all services,
incoming shipments, documents, and services performed specifically for the
Contract.

     

    E.3
ACCEPTANCE CRITERIA

     

    Certification
by the Government of satisfactory services provided is contingent upon the
Contractor performing in accordance with the terms and conditions of the
contract and all modifications.

     

    * 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.

     

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

     

    F.0 DELIVERIES OR
PERFORMANCE

     

    F.1
CLAUSES INCORPORATED BY REFERENCE

     

    The
following FAR clauses are available in full text at http://farsite.hill.af.mil
and incorporated by reference into this contract:

     

    52.242-15
(Alt I) Stop Work Order (April 1989) Alternate I (April 1984) 52.247-34 F.O.B.
Destination (Nov 1991)

     

    F.2
PERIOD OF PERFORMANCE

     

    The
period of performance of this Contract is:

     

    Base
Year— 22 January 2010 until 21 January 2011

    Option
Year — 22 January 2011 until 21 January 2012

     

    F.3
PLACE OF PERFORMANCE

     

    The
services shall he performed at the contractor’s facility.

     

    F.4
DELIVERY ADDRESS

     

    All
deliverables shall be submitted electronically to the COTR identified in
Section G
of this Contract.

     

    F.5
METHOD OF DELIVERY

     

    Electronic
copies shall be delivered in Microsoft Office formatted files, unless otherwise
specified by the COTR.  Electronic submission shall he made via
e-mail,
unless otherwise directed by the COTR.

     

    F.6
DELIVERABLE/DELIVERY SCHEDULE

     

    All
deliverable schedules are contained in Section C - Statement of
Work.

     

    G.0 CONTRACT ADMINISTRATION
DATA

     

    G.1
CONTRACTING OFFICER (CO)

     

    The
Contracting Officer for this Contract is identified below:

    Name: *

    Title: Contracting
Officer

    Agency:       Department
of Homeland Security

    Science and Technology
Division

    Office of Procurement
Operations

    Address:      Washington,
D.C. 20598

    Voice: *

    Email: *

     

    * 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.

    

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

    

    G.2
CONTRACTING OFFICER’S TECHNICAL REPRESENTATIVE (COTR)

     

    The COTR
for this Contract is identified below:

    Name: *

    Title: S&T Program
Manager

    Agency:          Department
of Homeland Security

    Science and Technology
Directorate

    Chem/Bio Division

    Address:         Plum
Island. NY

    Voice: *

    Email: *

    

    G.3
CONTRACTING OFFICER’S AUTHORITY

     

    The
Contracting Officer (CO) assigned to this contract has responsibility for
ensuring  the performance of all necessary actions for effective
contracting; ensuring compliance with the terms of the contract and safeguarding
the interests of the United States in its contractual
relationships.  The CO is the only individual who has the authority to
enter into, administer, or terminate this contract and is the only person
authorized to approve changes to any of the requirements under this contract,
and notwithstanding any provision contained elsewhere in this contract, this
authority remains solely with the CO.

     

    It is the
Contractor’s responsibility to contact the CO immediately if there is even the
appearance of any technical direction that is or may be outside the scope of the
contract.  The Government will not reimburse the Contractor for any
work not authorized by the CO, including work outside the scope of the
contract.

     

    G.4
CONTRACTING OFFICER’S TECHNICAL REPRESENTATIVE (HSAR
3052.242-72) (DEC 2003)

     

    (a) The
Contracting Officer may designate Government personnel to act as the Contracting
Officer’s Technical Representative (COTR) to perform functions under the
contract such as review or inspection and acceptance of supplies, services,
including construction, and other functions of a technical
nature.  The Contracting Officer will provide a written notice of such
designation to the Contractor within five working days after contract award or
for construction, not less than five working days prior to giving the contractor
the notice to proceed.  The designation letter will set forth the
authorities and limitations of the COTR under the contract.

     

    (b) The
Contracting Officer cannot authorize the COTR or any other representative to
sign documents, such as contracts. contract modifications. etc., that require
the signature of the Contracting Officer.

     

    (End of
clause)

     

    * 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.

    

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

    

    G.5
INTERPRETATION OR MODIFICATION

     

    No oral
statement by any person, and no written statement by anyone other than the
Contracting Officer (CO), or his/her authorized representative acting within the
scope of his/her authority, shall be interpreted as modifying or otherwise
affecting the terms of this contract.  All requests for interpretation
or modification shall be made in writing to the CO.

     

    G.6
ACCOUNTING AND APPROPRIATION DATA

     

    NONE000-000-9X-31-01-01-002-01-00-0000-00-00-00-00-GE-OE-25-50-000000

     

    Amount:
$3,809.122.00

     

    G.7
INVOICING INSTRUCTIONS

     

    In order
to initiate payment. the Contractor shall submit proper invoices for payment in
the manner and format described herein:

     

    (a)
GenVec will invoice monthly for all costs incurred plus the pro rata portion of
fee.

     

    Invoices
shall be submitted electronically to:

    SAT.Invoice.ConsolidationrCsdhs.gov

     

    Invoices
can be mailed to the following address (the preferred method of invoicing
is via email):

     

    DHS
ICE

    Burlington
Finance Center

    PO Box
1000

    Williston,
Vermont 05495-1000

    Attn:
S&T Chem/Bio Division

    

    (b) Each
invoice shall include the following:

     

    (1)
Contract Number

    (2)
Contractor Name

    (3) Date
of Invoice

    (4)
Invoice/voucher Number

    (5)
Material

    (6)
Labor

    (7)
Benefits

    (8)
Overhead

    (9) Other
Direct Cost (ODCs)

    (10)
Travel

    (11)
Total Costs

    

    Backup
documents shall be available for audit/review to DCAA, upon
request.

     

    * 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.

    

    
      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

     

    G.8
TRAVEL

     

    (a)
Domestic/local travel shall take place in accordance with the Federal Travel
Regulations (FTR) and will he considered reasonable and allowable to the extent
permitted by FAR 31.205-46.  Documentation will be available upon
request to DCAA.

     

    G.9
GOVERNMENT FURNISHED EQUIPMENT/INFORMATION/MATERIALS

     

    The
government shall provide the GFE/GFI/GFM as called out in the Statement of
Work.

     

    
      H.0 SPECIAL CONTRACT
REQUIREMENTS

    

     

    H.1 RIGHTS IN DATA-GENERAL

     

    In
accordance with FAR 52.227-14. Rights in Data-General.  Alternate II
(Dec 2007), see Attachment 3 in Section J.

     

    I.0 CONTRACT
CLAUSES

     

    I.1
CLAUSES INCORPORATED BY REFERENCE (FAR 52.252-2) (FEB 1998)

     

    This
contract incorporates one or more clauses by reference, with the same force and
effect as if they were given in full text.  Upon request, the
Contracting Officer will make their full text available.  Also, the
full text of a clause may be accessed electronically at this/these
address(es):

     

    http://farsite.hill.af.mil
(FAR Clauses 52.###)

     

    http://www.dhs.gov/dhspublic/interweb/assetlibrary/DHS_HSAR_With_Notice_04-01.pdf
(HSAR Clauses 30##.###)

     

    (End of
Clause)

     

    I.2
CLAUSES INCORPORATED BY REFERENCE

     

    The
following FAR and HSAR clauses are incorporated by reference into this
contract:

     

    * 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.

     

    
      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    

     

    
      	
              52.202-1
      (Jul 2004)

            	
              Definitions

            
	
              52.203-3
      (Apr 1984)

            	
              Gratuities

            
	
              52.203-5
      (Apr 1984)

            	
              Covenant
      Against Contingent Fees

            
	
              52.203-7
      (Jul 1995)

            	
              Anti-Kickback
      Procedures

            
	
              52.203-8
      (Jan 1997)

            	
              Cancellation,
      Recession and Recovery of Funds for Illegal or Improper
      Activity

            
	
              52.203-10
      (Jan 1997)

            	
              Price
      or Fee Adjustment for Illegal or Improper Activity

            
	
              52.203-12
      (Sep 2007)

            	
              Limitation
      on Payments to Influence Certain Federal Transactions

            
	
              52.204-4
      (Aug 2000)

            	
              Printed
      or Copied Double Sided on Recycled Paper

            
	
              52.204-7
      (Jul 2006)

            	
              Central
      Contractor Registration

            
	
              52.209-6
      (Sep 2006)

            	
              Protecting
      the Government’s interest When Subcontracting with Contractors Debarred,
      Suspended, or proposed for Debarment

            
	
              52.215-2
      (Jun 1999)

            	
              Audit
      and Records – Negotiation

            
	
              52.215-8
      (Oct 1997)

            	
              Order
      of Precedence – Uniform Contract Format

            
	
              52.215-10
      (Oct 1997)

            	
              Price
      Reduction for Defective Cost or Pricing Data

            
	
              52.215-12
      (Oct 1997)

            	
              Subcontractor
      cost or Pricing

              Data

            
	
              52.215-14
      (Oct 1997)

            	
              Integrity
      of Unit Prices

            
	
              52.215-15
      (Oct 2004)

            	
              Pension
      Adjustments and Asset Reversions

            
	
              52.215-18
      (Jul 2005)

            	
              Reversion
      or Adjustment of Plans for Postretirement Benefits (PRB) Other Than
      Pensions

            
	
              52.215-21
      (Oct 1997)

            	
              Requirements
      for Cost or Pricing Data or Information Other Than Cost or Pricing Data –
      Modifications

            
	
              52.216-7
      (Dec 2002)

            	
              Allowable
      Cost and Payment

            
	
              52.216-8
      (Mar 1997)

            	
              Fixed
      Fee

            
	
              52.219-8
      (May 2004)

            	
              Utilization
      of small business concerns

            
	
              52.222-1
      (Feb 1997)

            	
              Notice
      to the Government of Labor Disputes

            
	
              52.222-2
      (Jul 1990)

            	
              Payment
      for Overtime Premiums

            
	
              52.222-3
      (Jun 2003)

            	
              Convict
      Labor

            
	
              52.222-21
      (Feb 1999)

            	
              Prohibition
      of Segregated Facilities

            
	
              52.222-26
      (Mar 2007

            	
              Equal
      Opportunity

            

    

    

    * 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.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    
      
        	
                52.222-35
      (Sep 2006)

              	
                Equal
      Opportunity for Disabled Veterans, Veterans of the Vietnam Era and Other
      Eligible Veterans

              
	
                52.222-36
      (Jun 1998)

              	
                Affirmative
      Action for Workers with Disabilities

              
	
                52.222-37
      (Sep 2006)

              	
                Employment
      Reports on Special Disables Veterans, Veterans of the Vietnam Era and
      Other Eligible Veterans

              
	
                52.223-6
      (May 2001)

              	
                Drug
      Free Workplace

              
	
                52.223-14
      (Aug 2003)

              	
                Toxic
      Chemical Release Reporting

              
	
                52.225-13
      (Feb 2006)

              	
                Restrictions
      on Certain Foreign Purchases

              

        
          	
                  52.227-1
      (Dec 2007)

                	
                  Alt
      I (Apr. 1984)

                	
                  Authorization
      and

                  Consent
      – Alternate 1

                

        

        	
                52.227-2
      (Dec 2007)

              	
                Notice
      and Assistance Regarding Patent and Copyright
  Infringement

              
	
                52.227-11
      (Dec 2007)

              	
                Patent
      Rights – Ownership by the Contractor

              
	
                52.227-14
      (Dec 2007)

              	
                Rights
      in Data – General

              
	
                SEE
      SECTION J OF CONTRACT, ATTACHMENT 3

              	
                Alt
      II (Dec 2007)

              
	 
      	
                SEE
      SECTION J OF CONTRACT

              
	
                52.227-16
      (Jun 1987)

              	
                Additional
      Data Rights

              
	
                52.228-7
      (Mar 1996)

              	
                Insurance
      – Liability to Third Persons

              
	
                52.230-2
      (Apr 1998)

              	
                Cost
      Accounting Standards

              
	
                52.230-6
      (Apr 2005)

              	
                Administration
      of Cost Accounting Standards

              
	
                52.232-9
      (Apr 1984)

              	
                Limitation
      on Withholding of Payments

              
	
                52.232-17
      (Jun 1996)

              	
                Interest

              
	
                52.232-20
      (Apr 1984)

              	
                Limitation
      of Cost

              
	
                52.232-23
      (Jan 1986)

              	
                Assignment
      of Claims

              
	
                52.232-25
      (Oct 2003)

              	
                Prompt
      payment

              
	
                52.232-33
      (Oct 2003)

              	
                Payment
      of Electronic Funds Transfer – Central Contractor
    Registration

              
	
                52.233-1
      (Jul 2002)

              	
                Disputes

              

        
          	
                  52.233-3
      (Aug 1996)

                	
                  Alt
      I (June 1985)

                  Protest After Award

                	
                  - Alternate
      I

                

        

        
          
            	
                    52.233-4
      (Oct 2004)

                  	
                    Applicable
      Law for Breach of Contract Claim

                  
	
                    52.242-1
      (Apr 1984)

                  	
                    Notice
      of Intent to Disallow Costs

                  
	
                    52.242-3
      (Mar 2001)

                  	
                    Penalties
      for Unallowable Costs

                  
	
                    52.242-4
      (Jan 1997)

                  	
                    Certification
      of Final Indirect Costs.

                  
	
                    52.242-13
      (Jul 1995)

                  	
                    Bankruptcy

                  

          

        

      

    

    
      	
              52.243-2
      (Aug 1987)

            	
              Alt
      V (Apr 1984)

              Changes
      – Cost

              Reimbursement

            	
              -
      Alternate V

            

    

    
       

      * 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.

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    
      	
              52.243-7
      (Apr 1984)

            	
              Notification
      of Changes

            
	
              52.244-2
      (Jun 2007)

            	
              Alt
      I (Jun 2007)

              Subcontracts

            	
              -
      Alternate I

            
	
              52.244-5
      (Dec 1996)

            	
              Competition
      in Subcontracting

            
	
              52.244-6
      (Mar 2007)

            	
              Subcontracts
      for Commercial

              Items

            
	
              52.245-1
      (Jun 2007)

            	
              Government
      Property

              Alt
      II (Jun 2007)

            
	
              52.246-9
      (Apr 1984)

            	
              Inspection
      of Research and Development (Short Form)

            
	
              52.247-
      1 (Feb 2006)

            	
              Commercial
      Bill of Lading Notations

            
	
              52.247-63
      (Jun 2003)

            	
              Preference
      for U.S. Flag Air Carriers

            
	
              52.249-6
      (May 2004)

            	
              Termination
      (Cost Reimbursement)

            
	
              52.249-14
      (Jun 2007)

            	
              Excusable
      Delays

            
	
              52.251-1
      (Apr 1984)

            	
              Government
      Supply Sources

            
	
              52.253-1
      (Jan 1991)

            	
              Computer
      Generated Forms

            
	
              3052.204-71
      (Jun 2006

            	
              Contractor
      Employee Access

            

    

    

    1.3
NOTIFICATION OF OWNERSHIP CHANGES (FAR 52.215-19) (OCT
1997)

     

    (a) The
Contractor shall make the following notifications in writing:

    (1) When
the Contractor becomes aware that a change in its ownership has occurred, or is
certain to occur, that could result in changes in the valuation of its
capitalized assets in the accounting records, the Contractor shall notify the
Administrative Contracting Officer (ACO) within 30 days.

    (2) The
Contractor shall also notify the ACO within 30 days whenever changes to asset
valuations or any other cost changes have occurred or are certain to occur as a
result of a change in ownership.

    (b) The
Contractor shall —

    (1)
Maintain current, accurate, and complete inventory records of assets and their
costs;

    (2)
Provide the ACO or designated representative ready access to the records upon
request;

    (3)
Ensure that all individual and grouped assets, their capitalized values,
accumulated depreciation or amortization, and remaining useful lives are
identified accurately before and after each of the Contractor’s ownership
changes; and

    (4)
Retain and continue to maintain depreciation and amortization schedules based on
the asset records maintained before each Contractor ownership
change.

    (c) The
Contractor shall include the substance of this clause in all subcontracts under
this contract that meet the applicability requirement of FAR
15.408(k).

    

    * 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.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    (End of
Clause)

    

    I.4
OPTION TO EXTEND SERVICES (52.217-8) (NOV 1999)

     

    The
Government may require continued performance of any services within the limits
and at the rates specified in the contract.  These rates may be
adjusted only as a result of revisions to prevailing labor rates provided by the
Secretary of Labor.  The option provision may be exercised more than
once. but the total extension of performance hereunder shall not exceed 6
months.  The Contracting Officer may exercise the option by written
notice to the Contractor within 30 days before the end of the current period of
performance.

     

    (End of
Clause)

     

    1.5
OPTION TO EXTEND THE TERM OF THE CONTRACT (FAR
52.217-9) (MAR 2000)

     

    (a) The
Government may extend the term of this contract by written notice to the
Contractor within 29
days of the end of the current period of performance; provided that the
Government gives the Contractor a preliminary written notice of its intent to
extend at least 30
days before the contract expires.  The preliminary. notice
does not commit the Government to an extension.

     

    (b) If
the Government exercises this option, the extended contract shall be considered
to include this option clause.

     

    (c) The
total duration of this contract, including the exercise of any options under
this clause, shall not exceed 2 years.

     

    (End of
Clause)

     

    I.6
NOTIFICATION OF EMPLOYEES RIGHTS CONCERNING PAYMENT OF UNION DUES AND FEES (FAR
52.222-39) (DEC 2004)

     

    (a)
Definition.  As used in this clause-

    “United
States” means the 50 States, the District of Columbia, Puerto Rico. the Northern
Mariana Islands, American Samoa, Guam, the U.S. Virgin Islands, and Wake
Island.

     

    (b)
Except as provided in paragraph (e) of this clause, during the term of this
contract, the Contractor shall post a notice, in the form of a poster, informing
employees of their rights concerning union membership and payment of union dues
and fees, in conspicuous places in and about all its plants arid offices,
including all places where notices to employees are customarily
posted.  The notice shall include the following information (except
that the information pertaining to National Labor Relations Board shall not be
included in notices posted in the plants or offices of carriers subject to the
Railway Labor Act, as amended (45 U.S.C. 151-188)).

     

    * 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.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    Notice to
Employees

    Under
Federal law, employees cannot be required to join a union or maintain membership
in a union in order to retain their jobs.  Under certain conditions,
the law permits a union and an employer to enter into a union-security agreement
requiring employees to pay uniform periodic dues and initiation
fees.  However, employees who are not union members can object to the
use of their payments for certain purposes and can only be required to pay their
share of union costs relating to collective bargaining, contract administration,
and grievance adjustment.  If you do not want to pay that portion of
dues or fees used to support activities not related to collective bargaining,
contract administration, or grievance adjustment, you are entitled to an
appropriate reduction in your payment.  If you believe that you have
been required to pay dues or fees used in part to support activities not related
to collective bargaining, contract administration, or grievance adjustment, you
may be entitled to a refund and to an appropriate reduction in future
payments.

     

    For
further information concerning your rights, you may wish to contact the National
Labor Relations Board (NLRB) either at one of its Regional offices or at the
following address or toll free number:

     

    National
Labor Relations Board Division of Information

    1099 14th
Street, N.W. Washington. DC 20570

    1-866-667-6572

    1-866-316-6572
(TTY)

     

    To locate
the nearest NLRB office. see NLRB’s website at http://www.nlrb.gov.

     

    (c) The
Contractor shall comply with all provisions of Executive Order 13201 of February
17. 2001, and related implementing regulations at 29 CFR Part 470, and orders of
the Secretary of Labor.

     

    (d) In
the event that the Contractor does not comply with any of the requirements set
forth in paragraphs (b), (c), or (g), the Secretary may direct that this
contract be cancelled, terminated, or suspended in whole or in part, and declare
the Contractor ineligible for further Government contracts in accordance with
procedures at 29 CFR Part 470, Subpart B—Compliance Evaluations, Complaint
Investigations and Enforcement Procedures.  Such other sanctions or
remedies may be imposed as are provided by 29 CFR Part 470, which implements
Executive Order 13201, or as are otherwise provided by law.

     

    (e) The
requirement to post the employee notice in paragraph (b) does not apply
to-

     

    (1)
Contractors and subcontractors that employ fewer than 15 persons:

     

    (2)
Contractor establishments or construction work sites where no union has been
formally recognized by the Contractor or certified as the exclusive bargaining
representative of the Contractor’s employees;

     

    * 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.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    (3)
Contractor establishments or construction work sites located in a jurisdiction
named in the definition of the United States in which the law of that
jurisdiction forbids enforcement of union-security agreements;

     

    (4)
Contractor facilities where upon the written request of the Contractor, the
Department of Labor Deputy Assistant Secretary for Labor-Management Programs has
waived the posting requirements with respect to any of the Contractor’s
facilities if the Deputy Assistant Secretary finds that the Contractor has
demonstrated that-

    (i) The
facility is in all respects separate and distinct from activities of the
Contractor related to the performance of a contract; and

    (ii) Such
a waiver will not interfere with or impede the effectuation of the Executive
order; or

     

    (5) Work
outside the United States that does not involve the recruitment or employment of
workers within the United States.

     

    (f) The
Department of Labor publishes the official employee notice in two variations;
one for contractors covered by the Railway Labor Act and a second for all other
contractors.  The Contractor shall-

     

    (1)
Obtain the required employee notice poster from the Division of Interpretations
and Standards, Office of Labor-Management Standards, U.S. Department of Labor,
200 Constitution Avenue, NW, Room N-5605, Washington,’ DC 20210, or from any
field office of the Department’s Office of Labor-Management Standards or Office
of Federal Contract Compliance Programs:

     

    (2)
Download a copy of the poster from the Office of Labor-Management Standards
website at http://www.olms.dol.gov; or

     

    (3)
Reproduce and use exact duplicate copies of the Department of Labor’s official
poster.

     

    (g) The
Contractor shall include the substance of this clause in every subcontract or
purchase order that exceeds the simplified acquisition threshold, entered into
in connection with this contract, unless exempted by the Department of Labor
Deputy Assistant Secretary for Labor-Management Programs on account of special
circumstances in the national interest under authority of 29 CFR
470.3(c).  For indefinite quantity subcontracts, the Contractor shall
include the substance of this clause if the value of orders in any calendar year
of the subcontract is expected to exceed the simplified acquisition
threshold.  Pursuant to 29 CFR Part 470, Subpart B—Compliance
Evaluations, Complaint Investigations and Enforcement Procedures, the Secretary
of Labor may direct the Contractor to take such action in the enforcement of
these regulations, including the imposition of sanctions for noncompliance with
respect to any such subcontract or purchase order.  If the Contractor
becomes involved in litigation with a subcontractor or vendor, or is threatened
with such involvement, as a result of such direction, the Contractor may request
the United States, through the Secretary of Labor, to enter into such litigation
to protect the interests of the United States.

     

    * 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.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    (End of
clause)

     

    1.7
PROHIBITION ON CONTRACTS WITH CORPORATE EXPATRIATES
(HSAR 3052.209-70) (JUN 2006)

     

    (a)
Prohibitions.

    Section
835 of Public Law 107-296, prohibits the Department of Homeland Security from
entering into any contract with a foreign incorporated entity after November 25,
2002, which is treated as an inverted domestic corporation as defined in this
clause.  The Secretary shall waive the prohibition with respect to any
specific contract if the Secretary determines that the waiver is required in the
interest of homeland security, or to prevent the loss of any jobs in the United
States or prevent the Government from incurring any additional costs that
otherwise would not occur.

     

    (b)
Definitions. As used in this clause:

    “Expanded
Affiliated Group” means an affiliated group as defined in section 1504(a) of the
Internal Revenue Code of 1986 (without regard to section 1504(b) of such Code),
except that section 1504 of such Code shall be applied by substituting ‘more
than 50 percent’ for ‘at least 80 percent’ each place it
appears.  “Foreign Incorporated Entity” means any entity which is, or
but for subsection (b) of Section 835 of the Homeland Security Act, Public Law
107-296, would be, treated as a foreign corporation for purposes of the Internal
Revenue Code of 1986.

     

    “Inverted
Domestic Corporation.”  A foreign incorporated entity shall be treated
as an inverted domestic corporation if, pursuant to a plan (or a series of
related transactions)—

     

    (1) The
entity completes after November 25. 2002. the direct or indirect acquisition of
substantially all of the properties held directly or indirectly by a domestic
corporation or substantially all of the properties constituting a trade or
business of a domestic partnership;

     

    (2) After
the acquisition at least 80 percent of the stock (by vote or value) of the
entity is held-

     

    (i) In
the case of an acquisition with respect to a domestic corporation, by former
shareholders of the domestic corporation by reason of holding stock in the
domestic corporation; or

    

    (ii) In
the case of an acquisition with respect to a domestic partnership, by former
partners of the domestic partnership by reason of holding a capital or profits
interest in the domestic partnership; and

    

    (3) The
expanded affiliated group which after the acquisition includes the entity does
not have substantial business activities in the foreign country in which or
under the law of which the entity is created or organized when compared to the
total business activities of such expanded affiliated
group.  “Person”, “domestic”, and “foreign” have the meanings given
such terms by paragraphs (1), (4), and (5) of section 7701(a) of the Internal
Revenue Code of 1986, respectively.

     

    * 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.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    (c)
Special rules.  The following definitions and special rules shall
apply when determining whether a foreign incorporated entity should be treated
as an inverted domestic corporation.

     

    (1)
Certain Stock Disregarded.  For the purpose of treating a foreign
incorporated entity as an inverted domestic corporation these shall not be taken
into account in determining ownership:

    

    
      	
               
      

            	
              (i)

            	
              stock
      held by members of the expanded affiliated group which includes the
      foreign incorporated entity; or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              stock
      of such entity which is sold in a public offering related to the
      acquisition described in subsection (b)(1) of Section 835 of the Homeland
      Security Act, Public Law 107-296.

            

    

     

    (2) Plan
Deemed In Certain Cases.  If a foreign incorporated entity acquires
directly or indirectly substantially all of the properties of a domestic
corporation or partnership during the 4-year period beginning on the date which
is after the date of enactment of this Act and which is 2 years before the
ownership requirements of subsection (b)(2) are met, such actions shall be
treated as pursuant to a plan.

    

    (3)
Certain Transfers Disregarded.  The transfer of properties or
liabilities (including by contribution or distribution) shall be disregarded if
such transfers are part of a plan a principal purpose of which is to avoid the
purposes of this section.

    

    (d)
Special Rule for Related Partnerships.

    

    For
purposes of applying Section 835(b) of Public Law 107-296 to the acquisition of
a domestic partnership, except as provided in regulations, all domestic
partnerships which are under common control (within the meaning of section 482
of the Internal Revenue Code of 1986) shall be treated as a
partnership.

    

    (e)
Treatment of Certain Rights.

    

    (1)
Certain rights shall be treated as stocks to the extent necessary to reflect the
present value of all equitable interests incident to the transaction. as
follows:

    
      	
               
      

            	
              (i)
      warrants;

            

    

    
      	
               
      

            	
              (ii)
      options;

            

    

    
      	
               
      

            	
              (iii)
      contracts to acquire stock;

            

    

    
      	
               
      

            	
              (iv)
      convertible debt instruments; and

            

    

    
      	
               
      

            	
              (v)
      others similar interests.

            

    

    

    (2)
Rights labeled as stocks shall not be treated as stocks whenever it is deemed
appropriate to do so to reflect the present value of the transaction or to
disregard transactions whose recognition would defeat the purpose of Section
835.

    

    * 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.

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    

    (f)
Disclosure.

    

    By
signing and submitting its offer, an Offer under this solicitation represents
that it not a foreign incorporated entity that should he treated as an inverted
domestic corporation pursuant to the criteria of Section 835 of the Homeland
Security Act, Public Law 107-296 of November 25, 2002.

    (g) If a
waiver has been granted, a copy of the approved waiver shall be attached to the
bid or proposal.

    

    (End of
provision)

    

    I.8
INSURANCE (HSAR 3052.228-70) (DEC 2003)

     

    In
accordance with the clause entitled “Insurance — Liability to Third Persons” in
Section 1, insurance of the following kinds and minimum amounts shall be
provided and maintained during the period of performance of this
contract;

     

    (a)
Worker’s compensation and employer’s liability.  The contractor shall,
as a minimum, meet the requirements specified at (FAR) 48 CFR
28.307-2(a).

    (b)
General liability.  The contractor shall, as a minimum, meet the
requirements specified at (FAR) 48 CFR 28.307-2(b).

    (c)
Automobile liability.  The contractor shall, as a minimum, meet the
requirements specified at (FAR) 48 CFR 28.307-2(c).

     

    (End of
clause)

     

    I.9
DISSEMINATION OF CONTRACT INFORMATION (HSAR 3052.242-71)
(DEC 2003)

     

    The
Contractor shall not publish, permit to be published. or distribute for public
consumption, any information, oral or written, concerning the results or
conclusions made pursuant to the performance of this contract, without the prior
written consent of the Contracting Officer.  An electronic or printed
copy of any material proposed to be published or distributed shall be submitted
to the Contracting Officer.

     

    (End of
clause)

     

    I.10
USE OF DEPARTMENT OF HOMELAND SECURITY SEAL

     

    In
accordance with DHS Management Directive 0030, 18 U.S.C. § 701, and 28 U.S.C. §
1733(b), the usage of DHS seal shall be requested by completing DHS Form 0030-1
(4/06).  Request shall be submitted to the Contracting
Officer.  In summation:

     

    
      	
               
      

            	
              ·

            	
              Any
      use of the DHS seal must be approved by the Secretary or his/her
      designee;

            

    

     

    * 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.

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              ·

            	
              Any
      permission granted by the Secretary will apply only to the specific use
      outlined on this form and should not be construed as permission for any
      other use;

            

    

     

    
      	
               
      

            	
              ·

            	
              The
      DHS Seal shall not he used in any manner that implies DHS endorsement of
      commercial products or services, the user’s policies or activities, or on
      any article that may discredit the seal or reflect unfavorably on the U.S.
      Department of Homeland Security.

            

    

     

    I.11 KICKOFF MEETING –
CONTRACTOR SHALL COMMENCE PERFORMANCE, UPON KICKOFF MEETING.

     

    J.0
ATTACHMENTS

     

    ATTACHMENT 1: STATEMENT OF
WORK

     

    ATTACHMENT 2: STATEMENT OF
WORK MILESTONES, DELIVERABLES AND HMEL/NES

     

    ATTACHMENT 3: TO BE USED AS ALTERNATE II TO
THE CLAUSE AT 52.227-14, RIGHTS IN DATA-GENERAL

    

    ATTACHMENT
1 – STATEMENT OF WORK (SOW)

     

    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-9
(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.  HSPD-9 mandates efforts, coordinated through DHS, to “create a
new biological threat awareness capacity that will enhance detection and
characterization of an attack.”  (HSPD-9, paragraph
10).  HSPD-9 also mandates that DHS accelerate and enhance the
development of countermeasures (including vaccines) for Foreign Animal Diseases
(FADs).  HSPD-9 also recognized the need for a federal stockpile and
mandated the creation of the National Veterinary Stockpile.

     

    To
fulfill these requirements, DHS S&T supports Foot-and-Mouth Disease (FMD)
vaccine R&D countermeasure programs at PIADC to strengthen the nation’s
ability to predict and respond to the incursion of a FMD.  FMD is one
of the most contagious diseases known to man.  It affects cattle,
swine, sheep and other cloven-hoofed animals such as goats and
deer.  FMD has been identified as one of the highest potential threats
to the U.S. economy and the country’s food supply, whether outbreaks were to
occur as a result of bioterrorism or by accidental introduction.  An
intentional introduction of FMD would likely involve the simultaneous infection
of susceptible animals in numerous locations, and the number of animals and
premises infected in a large multifocal outbreak would quickly overwhelm the
ability to stamp out infected and exposed animals.  In such a
scenario, it would be highly desirable to use prophylactic vaccination to reduce
the rate and size of the outbreak and increase the speed of
recovery.  Adequate doses of serotype or subtype-specific matching
vaccines available within 24 hours of FMD diagnosis will be required to bring
the outbreak under control as quickly as possible.

     

    * 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.

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    Currently,
there are no CVB licensed FMD vaccines or any foreign manufactured FMD vaccines
approved for permittee importation, sale or distribution in the
U.S.  Without FMD vaccines that can he safely manufactured in the US
and FMD vaccines that allow the differentiation of vaccinated from infected
animals (DIVA), options
for responding to an FMD outbreak in the US are limited.  An FMD
outbreak would result in the curtailment of meat and meat products for domestic
supply as well as a stoppage of meat exports leading to severe economic
consequences.  U.S. exports of cattle, sheep, hogs, and many of their
products ranges from $6 to $10 billion/annum and many of these exports would
face restrictions during an FMD outbreak.  Even if a single area of
one state was affected by FMD, trade restrictions could he imposed on the nation
as a whole, at least during the initial outbreak stage and it is estimated such
an outbreak could have more than a $100 billion impact on the U.S.
economy.

     

    The
overarching goal of the proposed DHS S&T program is to develop next
generation, molecular-based, recombinant FMD vaccines that can differentiate
infected from vaccinated animals (DIVA) for licensure approval by
CVB.  Following licensing approval, FMD vaccine lots can be produced
under procurement contracts with USDA APHIS Emergency Management for the
inclusion in the National Veterinary Stockpile.

     

    DNS
S&T requires vaccine research and development services from GenVec, Inc.
(GenVec).  GenVec is a contractor that has core competencies in patent
protected vaccine and therapeutic product technology platforms using
replication-deficient recombinant adenovirus serotype 5(rAd5)
vectors.  GenVec also has experience in rAd5 production (scale-up and
downstream processing) with an integrated QA program.

     

    GenVec
has collaborated with the U.S. Government on next generation, recombinant FMD
vaccine R&D since 2004.  Specifically, USDA .ARS and
GenVec entered into Specific Cooperative Agreements (SCAs) in 2004-2005 and
2005-2006 to use reasonable commercial efforts to construct, produce and test
rAd5 based vectors containing FMDV serotype empty capsids as part of a Plum
Island FMD vaccine 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 FMD (AdFMD) vaccine candidates
since 2005.

     

    The
outcome of this collaboration was the identification of a AdFMD vaccine
candidate for advanced development.  The lead AdFMD vaccine candidate
is the first molecular-based FMD, DIVA vaccine.  The lead vaccine
utilizes GenVec’s proprietary adenovector technology and is manufactured on a
proprietary, specialized cell line that is capable of producing protective FMDV
antigens without the use of the highly contagious FMD virus.  Because
the vaccine candidate is produced without live or killed virus materials, it can
be safely produced in the U.S.

     

    * 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.

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    DHS
executed a three-year Other Transaction Agreement with GenVec (base agreement
plus two (2) one year option periods; awarded 1 February 2007) to support the
development and manufacture of novel adenovector-based vaccines against
FMD.  GenVec was responsible for the development, production and
regulatory components and DHS was responsible for conducting animal studies at
PIADC.  During the base agreement ($5.98M), a lead vaccine candidate
for FMD was successfully identified utilizing GenVec’s proprietary adenovector
technology and a novel production cell line capable of producing FMD
antigens.

     

    Based on
the deliverables produced and milestones achieved in the base agreement. the
first 12-month option period was executed ($5.6M, 5 September
2007).  During Option Period One the development program for the lead
vaccine candidate was successfully expanded.  Based on the
deliverables produced and milestones achieved in Option Year One, the second
12-month option period was executed ($6.6M, 29 July 2008).  During
Option Period Two, the development program for the lead vaccine candidate has
significantly advanced and milestones and deliverables are currently on track
for the first AdFMD vaccine license approval by the USDA Center for Veterinary
Biologics (CVB) in November 2009.

     

    In order
to build a pipeline of next generation, molecular, recombinant DIVA FMD vaccine
candidates that can be licensed in the U.S. and manufactured through procurement
by the USDA APHIS Emergency Management National Veterinary Stockpile, additional
research is needed to identify AdFMD serotype-specific FMD vaccine
candidates.  In order to develop AdFMD vaccines that can be produced
and manufactured in the most cost effective method, additional development is
needed to improve current vaccine production and downstream processing methods
that will reduce AdFMD cost of goods.  The purpose of this agreement
is to utilize GenVec’s R&D services to achieve these research and
development goals.

     

    GenVec
has more than ten years of experience in the development of manufacturing
processes for applications in compliance with regulatory
standards.  GenVec has successfully scaled its vector manufacturing
process to the one hundred liter (100L) scale and is currently coordinating
validation of this scaled-up manufacturing process for a therapeutic
application.  GenVec has also developed a manufacturing process for
AdA24 FMD vaccine, transferring this process to a CVB-licensed facility for
manufacture of pre-license serial lots in support of a conditional
license.  GenVec process scientists have experience in the development
of unit operations using both disposable and conventional technologies. GenVec’s
process engineers have experience in conducting process development projects
such as the one described in this proposal.

     

    GenVec
also has experience with analytical testing methods in a regulated, quality
control environment.  GenVec managed the production and release of
more than 50 clinical lots of Advector covering a wide array of
applications.  GenVec developed its release assays for the AdA24 FMD
vaccine in compliance with USDA-CVB requirements.  GenVec’s assay
development scientists have the experience to conduct assay development projects
described in this proposal.

     

    II. Scope of Work -
Introduction

     

    The
overarching goals of this SOW are two-fold: (4 Identify, produce and test three
new AdFMD-serotype vaccine candidates and make Go/No Go decision for transition
into the DHS Targeted Advanced Development FMD vaccine pipeline, and (ii)
increase AdFMD vaccine potency in order to lower the USG acquisition cost for
AdFMD vaccines for the National Veterinary Stockpile.

     

    * 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.

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    The
proposed work is divided into two categories:  Research and
Manufacturing Development.  The Research portion is titled “Advector
Technology Development to Improve AdFMD Vaccine and Potency,” and the
manufacturing development portion is titled “FMD AdA24 Manufacturing
Development.”  Each of the sections below contains information for the
research and manufacturing efforts. Some sections are further divided into
milestones.

     

    A. Research

     

    The first
research goal, identified as Research Milestone 1 (RM1) *.  GenVec’s
technology is based on the use of adenovectors, in which a vector is an
adenovirus that has been modified to express certain proteins which, in this
case, generate an immune response against FMD.  GenVec will prepare
these improved vectors using our * cell line technology for these new
FMD-serotype candidate vaccines.  Candidate vaccines will be produced
with documentation sufficient to enable transition to a pathway for vaccine
development and licensing approval.

     

    The
second research goal *  These research programs are identified as
Research Milestones 2 and 3 (RM2 and RM3, respectively).  The
technical rationale for each milestone is bolstered by the fact that similar
approaches with other disease targets have yielded encouraging
results.  In RM2 and RM3, GenVec expects to produce between * vectors
to target FMD-serotypes for testing by the Department of Homeland Security
(DHS).  These vaccine candidates will be constructed based on GenVec
technology and will be reviewed by DHS, though GenVec will not produce
documentation sufficient to allow these vectors to
proceed to further development.

     

    B. Manufacturing
Development

     

    GenVec’s
manufacturing development goal is to cut costs by simplifying the current
Advector manufacturing process.  Manufacturing development work
focuses on developing an FMDV production process that can provide acceptable
virus yield and serve as the basis for future process scale-up required to
deliver material for anticipated vaccine stockpile needs.  A
simplified manufacturing process is proposed *.

     

    Under the
current DHS Other Transaction Agreement (Option Year 2), GenVec has developed a
small scale (40L) production process for manufacturing the AdFMD
vaccine.  The current 40L process involves the following
steps:

     

    
      	
               
      

            	
              1.

            	
              A*

            

    

     

    This
manufacturing process was transferred to a CVB-licensed facility (PerOs facility
operated by Benchmark BioLabs, BBL) for manufacture of Pre-License Serial Lots
(PLS) in support of Field Safety Studies.  The overarching program
goal under the current Other Transaction Agreement (Option Year 2) is contract
is to obtain a conditional license from CVB by November 2009.  Since
the priority during this contract phase was to meet this milestone timeline,
effort was not specifically focused on optimizing the process for scalability or
on reducing cost of goods.  The current proposal now focuses on
reducing the cost of goods by simplifying the manufacturing
process.

     

    * 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.

    

    
      
        
           

        

        
          22

          
            

          

        

        
           

        

      

    

     

    III. Statement of
Work

     

    RESEARCH
MILESTONES

     

    GenVec’s
Research work is divided into three milestones:

     

    
      	  	
              1.

            	
              Research
      Milestone RM1- *

            

    

     

    The chart
above illustrates the material steps in the preparation of an AdFMD vaccine, and
these steps arc outlined in detail below.  All steps in RM1 should be completed prior
to making a Go/No Go decision on moving a vector from preseed testing to
production of master seed (outside the scope of this SOW).

     

    Work Plan RMI
-

    *

     

    2.
Research Milestone RM2 - *

     

    General Approach RM2
- *

     

    
        Work Plan RM2 -
*

    

     

    3.
Research Milestone RM3 - *

     

    General Approach RM3
–*

     

    Work Plan
RM3 -
*

     

    MANUFACTURING
DEVELOPMENT MILESTONES

     

    GenVec’s
manufacturing development work is divided into three milestones:

     

    1.
Manufacturing Development Milestone DM1 - *

     

    General Approach DM1
– *.

     

    Work plan DM1
–*

     

    2.
Manufacturing Development Milestone DM2 — *

     

    General Approach DM2
- *

     

    
      	
               
      

            	
              a.

            	
              Work Plan DM2 -
      *

            

    

    

    3.
Manufacturing Development Milestone D3 – *

     

    General Approach DM3
- *

     

    * 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.

    

    
      
        
           

        

        
          23

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              Work
      Plan DM3 -
      *

            

    

     

    IV.  Deliverables.

     

    See
Attachment 11 for detailed list and description of technical data and
deliverables associated with each of the six milestones.

     

    V.  Other Contract
Details

     

    
      	
              A.

            	
              Period of
      Performance.  The period of performance for the Base Year
      is 12 month from the contract award date, which is followed by an Option
      Year of 12 months that may be exercised at the Government’s discretion and
      subject to the availability of
funds.

            

    

     

    
      	
              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.

            

    

     

    
      	
              D.

            	
              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 subcontractors where required as identified in this
      SOW.

            

    

     

    
      	
              E.

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

            

    

     

    
      	
              F.

            	
              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 Contracting Officer and as otherwise specified in this
      SOW.

            

    

     

    
      	
              G.

            	
              Publications.
      DISSEMINATION OF CONTRACT INFORMATION (HSAR 3052.242-71) (DEC
      2003)

            

    

    

    The
Contractor shall not publish, permit to be published, or distribute for public
consumption, any information, oral or written, concerning the results or
conclusions made pursuant to the performance of this contract, without the prior
written consent of the Contracting Officer.  An electronic or printed
copy of any material proposed to be published or distributed shall be submitted
to the Contracting Officer.

     

    (End of
clause)

     

    
      * 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.

    

    

    
      
        
           

        

        
          24

          
            

          

        

        
           

        

      

    

     

    
      	
              H.

            	
              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.

            

    

     

    
      	
              I.

            	
              Security
      Requirements.  All work performed under this SOW is
      unclassified unless otherwise specified by DFIS. If classified work
      is required under this SOW, DHS will provide specific guidance to the
      contractor as to Which work will he 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.

            

    

     

    
      	
              J.

            	
              Team Meetings/Communication
      Plan.  DHS/GenVec research-oriented meetings will he held
      bi-weekly by teleconference.  DHS/GenVEc R&D meetings will
      be held monthly by videoconference.  DHS/PIADC program meetings
      will be held quarterly by videoconference or site
  visits.

            

    

     

    VI. 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.

    

    
      
        
           

        

        
          25

          
            

          

        

        
           

        

      

    

    
       

      The DHS
POCs are as follows:

       

      
        	
                 
      

              	
                ·

              	
                DHS
      S&T Technical Representative -

              

      

      *

    

    Science
& Technology

    Department
of Homeland Security

    Plum
Island Animal Disease Center

    P.O. Box
848

    Greenport,
NY.

    Voice:
*

    Fax:
*

    Mobile:*

    Email:
*

     

    ·      Resource
Manager

    *

    Department
of Homeland Security

    ATTN:
Science and Technology Directorate/Office,*

    Washington,
DC 20528

    Voice:*

    Email: *

    

    * 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.

    

    
      
        
           

        

        
          26

          
            

          

        

        
           

        

      

    

    

    Thrust:
Agricultural

    Program:
FAD Vaccine & Diagnostics

    Project:
Foot-and-Mouth Disease Vaccine Candidate Research and Development

    ATTACHMENT
2 — STATEMENT OF WORK MILESTONES, DELIVERABLES

    

    AND
TIMELINES

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    	 
      	 	
                                                                            Milestone*

                                                                          	 	 	
                                                                            Deliverables

                                                                          	 	 	
                                                                            Timelines

                                                                          	 	 	
                                                                            Cost

                                                                          	 
	
                                                                            BASE

                                                                            YEAR

                                                                          	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                            RM1

                                                                          	 	 	
                                                                            *

                                                                          	 	 	 	
                                                                            2) *

                                                                          	 	 	 	
                                                                            *

                                                                          	 	 	 	
                                                                            $*

                                                                          	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                            RM2

                                                                          	 	 	
                                                                            *

                                                                          	 	 	 	
                                                                            * 

                                                                          	 	 	 	
                                                                            *

                                                                          	 	 	 	
                                                                            $*

                                                                          	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                            RM3

                                                                          	 	 	
                                                                            *

                                                                          	 	 	 	
                                                                            * 

                                                                          	 	 	 	
                                                                            *

                                                                          	 	 	 	
                                                                            $*

                                                                          	 
	  
      	 	 	  	 	 	 	
                                                                             

                                                                          	 	 	 	 	 	 	 	 	 

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    * 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.

    

    
      
        
           

        

        
          27

          
            

          

        

        
           

        

      

    

    

    Thrust:
Agricultural

    Program:
FAD Vaccine & Diagnostics

    Project:
Foot-and-Mouth Disease Vaccine Candidate Research and Development

    ATTACHMENT
2 — STATEMENT OF WORK MILESTONES, DELIVERABLES

    

    AND
TIMELINES

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	
                                                      DM1

                                                    	 	 	
                                                      *

                                                    	 	 	 	
                                                      1) *

                                                    	 	 	 	
                                                      *

                                                    	 	 	 	
                                                      $* 

                                                    	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                      DM2

                                                    	 	 	
                                                      *

                                                    	 	 	 	
                                                      *

                                                    	 	 	 	
                                                      *

                                                    	 	 	 	
                                                      $*

                                                    	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                      DM3

                                                    	 	 	
                                                      *

                                                    	 	 	 	
                                                      *assays 

                                                    	 	 	 	
                                                      * 

                                                    	 	 	 	
                                                      $*

                                                    	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	
                                                      Research
      Milestones 1-3 Subtotal

                                                    	 	 	 	 	 	 	 	 	 	 	 	
                                                      $*

                                                    	 
	 
      	 	
                                                      Development
      Milestones 1-3 Subtotal

                                                    	 	 	 	 	 	 	 	 	 	 	 	
                                                      $*

                                                    	 
	
                                                      BASE

                                                      YEAR

                                                    	 	
                                                      Research
      and Development Milestone TOTAL.

                                                    	 	 	 	 	 	 	 	 	 	 	 	
                                                      $3,809,122

                                                    	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                      OPTION

                                                      YEAR

                                                    	 	 	
                                                      *

                                                    	 	 	
                                                      Deliverables
      to be spelled out before exercising Option Year.

                                                    	 	 	
                                                      To
      be determined, before exercising
      Option Year

                                                    	 	 	 	
                                                      $746,766

                                                    	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                      TOTAL

                                                    	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
                                                      $4,555,888

                                                    	 

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    * 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.

    

    
      
        
           

        

        
          28

          
            

          

        

        
           

        

      

    

    

    ATTACHMENT
3

     

    To
be used as Alternate II to the Clause at 52.227-14, Rights in
Data-General

     

    Special
License Notice

     

    (a) These
data, computer software, and Licensed Inventions are submitted with special
license rights under Government Contract No. HSHQDC-10-C-00034.  These
data, computer software, and licensed inventions may be reproduced and used by
the Government with the express limitation that they will not, without written
permission of the Contractor, be used for purposes of manufacture nor disclosed
outside the Government; except that the Government may disclose these data
outside the Government for the following purposes, if any; provided-that the
Government makes such disclosure subject to prohibition against further use and
disclosure:

     

    (1)
Purpose.

     

    This
license is to allow DHS to fulfill the Plum-Island Animal Disease Center’s
mission in perfecting an improved Foot and Mouth ‘Disease (FMD) vaccine, which
result will be accomplished by DHS’s meeting United States Department of
Agriculture (USDA) Center for Veterinary Biologics (CVB) licensing requirements
for Adenovirus-based FMD vaccine candidates and the procurement by the USDA for
inclusion in the Animal and Plant Health and Inspection Service (APHIS)
Emergency Management National Veterinary Stockpile.  This license
provides the Government with certain rights in Licensed Inventions, copyrighted
works, proprietary technical data, and computer software.

     

    (2)
Grant.

     

    Accordingly,
GenVec, Inc. hereby grants the Government a Special Purpose License, as defined
in Paragraph (a)(3) of this License, in Adenovirus-based FMD viruses in any form
or embodiment, including vaccines and vaccine virus seeds.  This
license shall remain in effect for the term of all patents licensed hereunder
without regard to the expiration, completion, or termination of Contract
HSHQDC-10-C-00034.

     

    (3)
Definitions.

     

    (i) “Special Purpose License,” for the
purposes of this contract, means: (1) a nonexclusive, irrevocable, worldwide,
paid up license to use, practice and have practiced any Licensed Inventions by
or on behalf of the Government for Government purposes and (2) a nonexclusive,
nontransferable, irrevocable, worldwide, paid up license to use, duplicate,
prepare derivative works, distribute,: or disclose copyrighted information or
Proprietary Information, listed in Attachment A to this License, and any other
Proprietary Information necessary to accomplishing the Purpose of this license,
in whole or in part and in any manner, and to have or permit others to do so,
for Government Purposes.

     

    (ii) This “Special Purpose License” is
unconditionally binding upon any successors to GenVec, Inc.’s interests and will
remain in effect regardless of (i) the reorganization, merger, or consolidation
of GenVec, Inc. into or with another entity, corporate or otherwise, or the
liquidation or dissolution of GenVec, Inc. or the sale or other disposition of
all or substantially all of the capital stock, business, or assets of GenVec,
Inc. to any other person or party, or (ii) the institution of any bankruptcy,
reorganization, insolvency, debt agreement, or receivership proceedings by or
against GenVec, Inc., or adjudication of GenVec, Inc. as a
bankrupt.

     

    * 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.

    

    
      
        
           

        

        
          29

          
            

          

        

        
           

        

      

    

     

    (iii)(A) “Government Purposes,” for the
purpose of this contract, include, but are not limited to, the right of the
Government to solicit competitively, to contract for, and to transfer GenVec,
Inc. made Adenovirus-based FMD vaccine candidates and master seed 293-ORF6 and
M2A cell lines to third parties for use in the production and manufacturing of
Adenovirus-based FMD vaccine candidate master seeds, working seeds, clinical
lots, and Pre-Licensing Serials for the purpose of obtaining USDA Conditional or
final license approval of the Adenovirus-based FMD vaccines owned by GenVec,
Inc.  Government purposes include the competitive solicitation and
procurement of services relating to the license application to and processing of
the application with USDA.  Government purposes include the right to
transfer GenVec, Inc.-made Adenovirus-based FMD vaccine candidates to third
parties to perform Adenovirus-based FMD vaccine process improvements and
Adenovirus-based FMD vaccine yield optimization services.

     

    “Government
Purposes” also include the solicitation by, purchase by, and distribution by the
Animal and Plant Health and Inspection Service (APHIS) of the manufactured FMD
vaccine and the use by distributees and recipients of the vaccine from APHIS of
the Adenovirus-based FMD USDA CVB licensed vaccines using Adenovirus-based FMD
working seeds derived from pre-master seed Adenovirus-based FMD vaccine virus
R&D stocks and master cell stocks produced from * cell line made by GenVec,
Inc. Contractor shall not charge Third Party Licensees or the US Government a
royalty as a result or the solicitation by, manufacturing for, purchase by, and
distribution by APHIS of the manufactured FMD vaccine and the use by distributees and
recipients of the vaccine from APHIS of the Adenovirus-based FMD USDA CVB
licensed vaccines using Adenovirus-based FMD working seeds derived from
pre-master seed Adenovirus-based FMD vaccine virus R&D stocks and master cell
stocks produced from * cell line made by GenVec, Inc. and shall assure that each
Third Party License prohibits a Third Party Licensee from charging any portion
of or any entire Third Party Royalty to the US Government.

     

    “Third
Party License” shall mean a license granted by GenVec to a Third Party Licensee
to practice the Licensed Inventions for the purpose of solicitation by, purchase
by, and distribution by APHIS of the manufactured FMD vaccine and the use by
distributees and recipients of the vaccine from APHIS of the Adenovirus-based
FMD USDA CVB licensed vaccines using Adenovirus-based FMD working seeds derived
from pre-master seed Adenovirus-based FMD vaccine virus R&D stocks and
master cell stocks produced from* cell line made by GenVec.

     

    (B) “Government Purposes” include the
right of the Department of Homeland Security to competitively solicit and
procure:

     

    1. Adenovirus-based FMD master seed
vaccine virus stocks derived from Adenovirus-based FMD pre-master seed vaccine
virus stocks made by GenVec, Inc.;

     

    2. Adenovirus-based FMD master seed
derived vaccine virus working seed stocks derived from pre-master seed
Adenovirus-based FMD vaccine virus research and development (R&D) stocks
made by GenVec, Inc.:

     

    3. Adenovirus-based FMD vaccine
candidate clinical lots made from Adenovirus-based FMD master seed vaccine virus
derived from pre-master seed Adenovirus-based FMD vaccine virus R&D stocks
made by GenVec, Inc.:

     

    4. Adenovirus-based FMD vaccine
candidate pre-licensing serial lots made from Adenovirus-based FMD master seed
vaccine virus derived from pre-master seed Adenovirus-based FMD vaccine virus
R&D stocks and master cell stocks produced from * or * cell line made by
GenVec, Inc.;

     

    * 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.

    

    
      
        
           

        

        
          30

          
            

          

        

        
           

        

      

    

     

    5. Animal testing of Adenovirus-based
FMD vaccine candidate clinical lots and pre-licensing serial lots made from
Adenovirus-based FMD master seed vaccine virus derived from pre-master seed
vaccine virus Adenovirus-based FMD R&D stocks and master cell stocks
produced from * or * cell line made by GenVec, Inc.;

     

    6. U.S. veterinary regulatory services
and expertise for Adenovirus-based FMD vaccine candidates seeds derived from
pre-master seed Adenovirus-based FMD vaccine virus R&D stocks made by
GenVec, Inc.;

     

    7. Adenovirus-based FMD vaccine
process improvement and vaccine yield optimization services using
Adenovirus-based FMD master seed derived working seed vaccine virus derived from
pre-master seed Adenovirus-based FMD vaccine virus R&D stocks and master
cell stocks produced from * or * cell line made by GenVec, Inc.;
and

     

    (C) Except for standard USDA regulatory
safety testing of Master and Working Cell Banks (such as, for example, testing
for sterility, mycoplasma, in vivo and in vitro adventitious virus), clinical
trials. or other processes necessary to acquire USDA approval, “Government
Purposes” do not include:

     

    1. The right of the Government or
third parties to characterize, or issue Releases or Certificates of Analysis
for, or analyze the genome of, any * or * cell, or engage in any research of *or
* cells that
concerns any safety, toxicity or tumorigenicity of * or * cells, without the
prior written agreement of GenVec, Inc., such agreement not to be unreasonably
withheld or delayed.

     

    2. The right to have or permit others
to practice a Licensed Invention or use, duplicate, prepare derivative works,
distribute or disclose copyrighted works or Proprietary Information for
commercial purposes, including but not limited to sales of products other than
to the Government for distribution in the United States.

     

    3. The right to have or permit third
parties to change, modify, or alter the molecular composition or genetic
structure of the Adenovirus-based FMD vaccine candidates.

     

    (iv) “Licensed Inventions,” for the
purposes of this contract, means U.S. Patent Nos. *, and any other invention of
which a GenVec employee is an inventor or co-inventor that would aid in
accomplishing the purpose of this license.

     

    (v) “*,” “*,” or “*,” for the purposes
of this Contract, means:

     

    (A) Cell line composed of
*cells;

     

    (B) Cells or cell lines derived from *
cells, based upon further modifications and/or alterations of the genome of the
* cells; and

     

    (4) Regulatory
Consultation.

     

    The
Department of Homeland Security agrees to use its best efforts to promptly
notify GenVec, Inc. of any and all communications to and from Regulatory
Authorities relating to the safety of * or * cells, and agrees to consult
promptly with * or* to resolve any such concerns with the CVB or such other
Regulatory Authorities.  Notwithstanding any of the foregoing, the
Department of Homeland shall not be prohibited from taking any action(s) to
comply with any requirements of the CVB or other Regulatory
Authorities.

     

    * 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.

    

    
      
        
           

        

        
          31

          
            

          

        

        
           

        

      

    

     

    (b) This
notice shall be marked on any reproduction of these data, computer software, or
Licensed Inventions, in whole or in part.

     

    (End of
notice)

     

    Attachment
A

    

    Specific
copyrighted information or Proprietary Information,

    

    All CVB
regulatory submissions associated with USDA product (unlicensed)
code

    Adt.A24.11D
including, but not limited to documents and reports associated
with:

    1. Master seed virus
(Adt.A24.11D)

    2. Master seed stock cell line
(*)

    3. Adt.A24.11D Outline of
Production

    4. Adt.A24.11D Special
Outlines

    5. Adt.A24.11D Potency test
development

    6. Adt.A24.11D In-process
procedures

    7. Adt.A24.11D Summary of Information
Format

    8. Adt.A24.11D Risk
Assessment

    9.
Adt.A24.11D protocols for studies of host animal immunogenicity/efficacy,
safety,backpassage, shed/spread, immunological interference

    10. Adt.A24.11D Field Safety
Studies

    11. Adt.A24.11D Stability
Studies

    12. Adt.A24.11D Veterinary Biologics
Production (prelicensing serials) and Test Reports

    

    GenVec
Patent Applications

    09/964065

    

    * 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.

    

    
      
        
           

        

        
          32Unassociated Document

    EXHIBIT
10.29      

     

    LICENSE
AGREEMENT

     

    This
License Agreement (“Agreement”), dated May 26, 1993, between ARCH Development
Corporation, an Illinois not-for-profit corporation (“ARCH”) and GenVec, Inc., a
Delaware corporation (“Licensee”).

     

    Purpose and
Intent

     

    A.           ARCH
(hereinafter referred to as “Licensor”) hold rights to the Licensed Patents
defined below and Licensee desires to obtain exclusive rights to such Licensed
Patents for commercialization in a certain field.

     

    B.           On
even date herewith, DFCI, ARCH and Licensee have entered into a separate License
Agreement regarding certain other patent rights owned jointly by the Dana-Farber
Cancer Institute (“DFCI”) and ARCH.

     

    Therefore,
the parties agree as follows:

     

    Agreement

     

    1.           Definitions.  The
following capitalized terms used in this Agreement shall mean:

     

    A.           “Affiliate” means as
to any person or entity, the possession of the power to direct or cause the
direction of the management and the policies of an entity whether through
ownership directly or indirectly of fifty percent (50%) or more of the stock
entitled to vote, and for non-stock organizations, the right to receive fifty
percent (50%) or more of the profits by contract or otherwise, or in countries
where control of fifty percent (50%) or more of such rights is not permitted in
the country where such entity exists, the maximum permitted in such
country.

     

    B.           “Effective Date” means
the date set forth on page 1, line 1, of this Agreement.

     

    C.           “Field” means all Gene
Therapy applications.

     

    D.           “Gene Therapy” means
the introduction of nucleic acid into a person with the purpose of modifying the
functions or behaviors of cells of the human body, either by ex vivo introduction of
nucleic acid into cells, which cells are later introduced into such person’s
body, or by in vivo introduction of nucleic
acid into the person’s body, to be incorporated into cells of such person
(nucleic acid being any composition of matter that includes two or more
covalently joined nucleotides and/or variants thereof, including, without
limitation, variants of the phosphate, ribose sugar and/or heterocyclic base
portions thereof, provided that such nucleotides and variants comprise a
substantial component of such composition of matter).

     

    *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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    E.           “Joint Agreement”
shall mean that certain License Agreement entered by DFCI, ARCH and Licensee
effective of even date herewith.

     

    F.           “Licensed Patents”
means the United States patent applications listed on Schedule A, attached
hereto; United States patents issued from the applications listed on Schedule A
and from divisionals and continuations of these applications and any reissues,
renewals, substitutions, or extensions of such United States patents or patent
applications; claims of continuation-in-part applications and patents directed
to subject matter specifically described in the patent applications listed on
Schedule A; and claims of all foreign patent applications, patents, and other
intellectual property which are directed to subject matter specifically
described in the United States patent applications listed on Schedule
A.  Licensed Patents shall not include any applications and any
patents issuing from applications filed in countries (i) that Licensee elected
not to file in pursuant to Paragraph 4.A. and (ii) where Licensee’s rights are
terminated under Paragraph 4.D.

     

    G.           “Licensed Product”
means any product within the scope of any Valid Claim, or a product made by a
process, method or technique within the scope of any Valid Claim, or a product,
the method of use of which is within the scope of any Valid Claim.

     

    H.           “Net Sales”
means:

     

    (1)           the
gross amounts received by Licensee and its Affiliates and Sublicensees for
Licensed Products, less the following amounts directly chargeable to such
Licensed Products:  (a) customary trade, quantity or cash discounts
and rebates, actually allowed and taken; (b) amounts repaid or credited to
customers on account of rejections; (c) freight and other transportation
costs, including insurance charges, and duties, tariffs, sales and excise taxes
and other governmental charges based directly on sales, turnover or delivery of
such Licensed Products and actually paid or allowed by Licensee and its
Affiliates or any Sublicensee; and (d) amounts allowed or credited due to
returns or uncollectible amounts.  If Licensee or a Sublicensee or the
Affiliates of either of them do not sell Licensed Products but use Licensed
Products as part of selling a service or other means of deriving commercial
benefit from a Licensed Product, the parties agree to negotiate in good faith to
determine a method of calculating a running royalty equivalent to the running
royalty set out in this Agreement on Net Sales.  Net Sales shall be
calculated on sales to independent third parties and not on sales between
Licensee and its Affiliates or Sublicenses unless such a purchaser is the
end-user of the Licensed Product.  For Licensed Products consumed by
Licensee, its Affiliates or any Sublicensee, the price used to calculate Net
Sales shall be equal to the average of the sales price of the same or
substantially similar Licensed Products, whichever is relevant, sold to its
three largest customers during the same time period.

     

    (2)           with
respect to any Licensed Product sold in combination with one or more active
therapeutic ingredient(s), or devices) for the administration of the Licensed
Product, in each case, which are not Licensed Products, Net Sales for such
combination products shall be calculated by multiplying the Net Sales calculated
pursuant to Paragraph H(1) above by the fraction A/(A + B), where A is the gross
selling price of the Licensed Product sold separately and B is the gross selling
price of the other product(s) or active therapeutic ingredient(s) or agent(s)
sold separately.  In the event that no such separate sales are made by
Licensee, Net Sales for royalty determination shall be as reasonably allocated
by Licensee and ARCH, as agreed by the parties, between such Licensed Product
and such other product(s), ingredient(s) and/or agent(s) based upon their
relative importance and proprietary protection.

     

    *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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    I.           “Royalties” means all
amounts payable under Paragraph 3. B. of this Agreement.

     

    J.           “Sublicensee” means
any person, company or other entity granted a sublicense by Licensee under
Paragraph 2. B. below, including Affiliates of the Sublicensee.

     

    K.           “Sublicense” means the
license agreement entered into by Licensee with a Sublicensee under Paragraph 2.
B. below.

     

    L.           “Territory” means
worldwide.

     

    M.           “University” means the
University of Chicago.

     

    N.           “Valid Claim” means an
issued claim of any unexpired patent or a claim of any pending patent
application within the Licensed Patents which has not been held unenforceable,
unpatentable or invalid by a decision of a court or governmental body of
competent jurisdiction, in a ruling that is unappealable or unappealed within
the time allowed for appeal which has not been rendered unenforceable through
disclaimer or otherwise, and which has not been lost through an interference
proceeding.  Notwithstanding the foregoing, a claim of a pending
patent application shall cease to be a Valid Claim if no patent has issued
on such claim on or prior to the seventh anniversary of the date of filing of
the corresponding parent patent application, provided that such claim shall once
again become a Valid Claim on the issue date of a patent that subsequently
issues and contains such claim.

     

    2.           GRANT OF LICENSE AND
RESERVATION OF RESEARCH RIGHTS

     

    A.           Grant.  Licensor
hereby grants to Licensee and its Affiliates an exclusive, worldwide license
under the Licensed Patents to make, have made, use, import, have imported, offer
to sell and sell Licensed Products within the Field and within the
Territory.

     

    B.           Sublicense.

     

    (1)           Licensee
shall have the exclusive right to grant sublicenses to third parties to the
rights granted Licensee under Paragraph 2.A on terms not in conflict with the
terms of this Agreement.  ARCH shall be informed by written notice of
the identity of any prospective Sublicensee and shall have the right to approve
of said Sublicensee, which approval shall not be unreasonably
withheld.  If ARCH does not object in writing within forty-five (45)
days of said written notice, approval shall be presumed conclusively to have
been given.  Notwithstanding the foregoing GenVec may grant a
sublicense to any of the top 100 pharmaceutical and/or biopharmaceutical
companies as reported by Scrip, without the
prior approval of ARCH.

     

    *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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (2)           GenVec
agrees that any sublicenses granted by it or its Sublicensees shall provide that
the obligations to ARCH contained in this Agreement to the extent applicable
shall be binding upon the Sublicensee.  GenVec further agrees to
provide a copy of this Agreement (which may be redacted to remove financial and
other competitive information) to each Sublicensee.

     

    (3)           GenVec
agrees to forward to ARCH a copy of any and all fully executed sublicense
agreements with financial terms redacted, and further agrees to forward to ARCH
annually a copy of such reports received by GenVec from its Sublicensee during
the preceding twelve (12) month period under the sublicenses as shall be
pertinent to a royalty accounting under said sublicense agreements.

     

    (4)           All
sublicenses shall provide that the Sublicensee may not grant further sublicenses
to third parties, without the written consent of ARCH, which consent shall not
be unreasonably withheld; provided, that Sublicensees may grant further
sublicenses without the prior consent of ARCH (i) to their Affiliates, and (ii)
in connection with the development and/or commercialization of Licensed
Products.

     

    (5)           GenVec
hereby agrees that every sublicensing agreement to which it is a party and which
relates to the rights, privileges and license granted hereunder shall contain a
statement setting forth the date upon which GenVec’s exclusive rights,
privileges and license hereunder shall terminate.

     

    C.           Reservation of
Rights.  ARCH reserves for itself and for the University the
non-transferable right to practice at the University the inventions claimed in
the Licensed Patents to make, have made, and use Licensed Products within the
Field for all educational and non-commercial research purposes it may choose, in
its own discretion, and without any payment therefore.  The inventions
claimed in the Licensed Patents were made with the use of funds from the United
States government and the Howard Hughes Medical
Institute (“HHMI”).  Therefore, to the extent required by United
States law, there is reserved from the rights granted hereunder the worldwide,
non-exclusive right of the United States government to use and to practice or
have practiced the inventions claimed in the Licensed Patents.  ARCH
and/or the University, has granted, or will grant, HEM a paid-up, non-exclusive,
irrevocable license to use the Licensed Products for its non-commercial
purposes, but with no right to sublicense.

     

    D.           U.S.
Laws.  The inventions claimed in the Licensed Patents were
developed with the use of United States government funds.  Therefore,
any right granted in this Agreement greater than that permitted under Public Law
96-517 or Public Law 98-620 shall be subject to modification as may be required
to conform to the provisions of those laws.

     

    E.           Supercession.  This
Agreement supersedes the Agreement effective May 26, 1993 by and between
ARCH and Licensee, which is hereby terminated and of no further force or
effect.

     

    *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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.           Royalties and Other
Payments

     

    A.           License
Payment.

     

    (1)           Subject
to reduction pursuant to subsection 3.A (2) below, Licensee agrees to make the
following payments to ARCH within forty-five (45) days after the occurrence of
each of the following events:

     

    (1)           $*
at the time of the filing in the United States by Licensee or any Sublicensee of
an IND for the first Licensed Product (such payment referred to as an “IND
Fee”); and

     

    (2)           $*
at the time of filing in the United States by Licensee or any Sublicensee of an
NDA on a Licensed Product (such payment referred to as an “NDA
Fee”).

     

    Each
payment pursuant to this Paragraph 3.A.(1) may be credited against any Royalties
due under Paragraph 3.B. on the sale of the Licensed Product with respect to
which such payment is made (or if the development of a particular Licensed
Product is terminated, a successor Licensed Product thereto) in amounts not to
exceed * of the Royalties otherwise due each calendar quarter.  Any
such amount not credited against Royalties in any quarter may be carried forward
until the credit is fully applied.  It is understood and agreed that
any amounts paid under Section 3.A(1) of the Joint Agreement shall be fully
creditable against any amounts due to ARCH pursuant to this Section
3.A(1).

     

    (2)           If
in Licensee’s judgment, based on reasonable legal or commercial considerations,
it is desirable for Licensee or any Affiliate or Sublicensee to enter
into a licensing agreement (each, a “Third Party Licensing Agreement”) pursuant
to which Licensee or the applicable Affiliate or Sublicensee must also pay to
the third party licensor an IND Fee and/or an NDA Fee in connection with a
Licensed Product, then, at such time as an IND Fee or NDA Fee shall become
payable, Licensee shall allocate the IND Fee or NDA Fee (as the case may be)
payable under this Agreement equally among ARCH and any third party
licensors (up to a maximum of two additional third party
licensors).

     

    B.           Royalties.

     

    (1)           Subject
to reduction pursuant to subsection 3.B(2), and subject to subsections 3.B(3),
(4) and (5) below, Licensee shall pay a royalty to ARCH during the term of this
Agreement equal to * of Net Sales by Licensee or any Affiliate or Sublicensee of
Licensed Products within the scope of a Valid Claim in the country of
manufacture or sale.

     

    (2)           In
the event that Licensee enters into a license agreement with any third party
with respect to intellectual property rights which are necessary or useful for
Licensee’s practice of the Licensed Patents or the manufacture, use, import
and/or sale of any Licensed Product, Licensee may offset any payments made in
accordance with such license agreements against any amounts owed Licensor
pursuant to Paragraph 3B herein, on a country-by-country basis, up to a maximum
of * of the amounts due under Paragraph 3B.  Any such amounts which
are not offset in any quarter may be carried forward until applied.

     

    *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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (3)           No
Royalties shall be due on Licensed Products distributed for use at cost or less
in research and/or development, in clinical trials or as promotional
samples.

     

    (4)           No
more than one Royalty payment shall be due with respect to a sale of a
particular Licensed Product.  No multiple Royalties shall be payable
because any Licensed Product, or its manufacture, sale or use is covered by more
than one Valid Claim.  It is understood and agreed that Licensee’s
total Royalty obligation under this Agreement and the Joint Agreement shall not
exceed a cumulative total of * of Net Sales (as defined in such Agreements), and
that any Royalties paid under the Joint Agreement shall be fully creditable
against any royalties due to ARCH under this Agreement.

     

    (5)           Royalties
due under this Paragraph 3.B shall be payable on a country-by-country and
Licensed Product-by-Licensed Product basis until the expiration of the
last-to-expire issued Valid Claim covering such Licensed Product in such
country, or if no such patent has issued in a country, until there are no
remaining pending Valid Claims covering such Licensed Product in such
country.

     

    C.           Appointment of
Agent.  Licensor hereby represents to Licensee that pursuant to
a patent management agreement between ARCH and DFCI dated as of December 1, 1990
(the “Management Agreement”), DFCI appointed ARCH as the agent of DFCI to
collect and account for all Royalties and other amounts paid to Licensor
pursuant to licensing agreement(s) for the Licensed
Patents.  Therefore, Licensor hereby directs Licensee, and Licensee
hereby agrees, that all payments to be made by Licensee to Licensor under this
Agreement and the Joint Agreement shall be paid to ARCH on behalf of the
Licensor (and/or DFCI) at ARCH’s principal place of business, or at such other
place and in such other way as ARCH may designate, without deduction of
exchange, collection or other charges.  ARCH agrees to notify Licensee
in writing within thirty (30) days of the termination of the Management
Agreement if such termination occurs during the term of this
Agreement.

     

    D.           Calculation of
Royalties.  Royalties shall be payable in U.S. currency within
* days after the end of each calendar quarter for the term specified in
Paragraph 9. A. below, beginning with the calendar quarter in which
the first commercial sale of a Licensed Product occurs.  Each payment
shall be accompanied by a statement showing Net Sales for each country in the
Territory and calculation of the Royalties due.  All such statements
shall be deemed to be Confidential Information of Licensee.  There
shall be deducted from all such payments taxes required to be withheld by any
governmental authority and Licensee shall provide copies of receipts for
such taxes to ARCH along with each royalty payment.  Any
necessary conversion of currency into United States dollars shall be at the
applicable rate of exchange for buying U.S. dollars of Citibank, N.A., in New
York, New York, on the last day of the calendar quarter in which such
transaction occurred.  If at any time legal restrictions prevent the
prompt remittance of any Royalties owed on Net Sales in any jurisdiction,
Licensee may notify Licensor and make such payments by depositing the amount
thereof in local currency in a bank account or other depository in such country
in the name of Licensor, and Licensee shall have no further obligations under
this Agreement with respect thereto.

     

    *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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    E.           Records.  Licensee
shall keep, and shall cause its Affiliates and Sublicensees of either, to keep,
full and accurate books and records in sufficient detail so that sums due
Licensor hereunder can be properly calculated.  Such books and records
shall be maintained for at least three (3) years after the Royalty reporting
period(s) to which they relate.  During the term hereof and for three
(3) calendar years thereafter, Licensee shall permit, and shall cause its
Affiliates to permit, and use reasonable efforts to have its Sublicensees permit
certified independent accountants designated by ARCH, to whom Licensee has no
reasonable objection, to examine its books and records solely for the purpose of
verifying the accuracy of the written statements submitted by Licensee and sums
paid or payable.  ARCH may conduct such examination no more than once
in any calendar year and conduct no more than one audit of any
period.  After completion of any such examination, ARCH shall promptly
notify Licensee in writing of any proposed modification to Licensee’s statement
of sums due and payable.  If Licensee accepts such modification,
or if the parties agree on other modifications, one party shall promptly pay or
credit the other in accordance with such resolution.  Such examination
shall be made at the expense of ARCH, except that if such examination discloses
a discrepancy of ten percent (10%) or more in the amount of Royalties and other
payments due ARCH, then Licensee shall reimburse ARCH for the cost of such
examination.

     

    F.           Overdue
Payments.  Payments due to ARCH under this Agreement shall, if
not paid when due under the terms of this Agreement, bear simple interest at the
lower of the prime rate of interest (as published by Citibank, N.A. on the date
such payment is due) plus * or the highest rate permitted by law, calculated on
the basis of a 360 day year for the number of days actually elapsed, beginning
on the due date and ending on the day prior to the day on which payment is made
in full.  Interest accruing under this Paragraph shall be due to
Licensor on demand or upon payment of past due amounts, whichever is
sooner.  The accrual or receipt by ARCH of interest under this
Paragraph shall not constitute a waiver by Licensor of any right it may
otherwise have to declare a default under this Agreement or to terminate this
Agreement.

     

    4.           Prosecution and Maintenance
of Patents; Patent Costs.

     

    A.           Prosecution and
Maintenance.

     

    (1)           ARCH
shall be responsible, using any of the following patent counsel, that are
acceptable to Licensee:  Arnold, White & Durkee; Dressler, Rocky,
Milnamow & Katz, Ltd.; Marshall, O’Toole, Gerstein, Murray, & Borum; or
Foley & Lardner for the filing, preparation, registration, prosecution and
maintenance of the Licensed Patents.  Licensee shall select patent
counsel from the above list, or such other counsel as the parties agree, as
patent counsel for maintenance of all patent applications and patents within the
Licensed Patents.

     

    (2)           ARCH
shall cause such patent counsel to provide Licensee with a list of the countries
in which ARCH has filed and/or intends to file applications.  Such
list shall be provided to Licensee at least ninety (90) days prior to the
expiration of the corresponding United States priority date to allow Licensee to
suggest that additional countries be added to the list or that one or more
countries be deleted from the list.  ARCH agrees to timely file
applications in each of the countries requested by Licensee unless it otherwise
notifies Licensee under Paragraph 4.B below.

     

    *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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (3)           Licensee
agrees to cooperate, and agrees to cause its Sublicensees and Affiliates of
either to cooperate, with ARCH in the preparation, filing, prosecution and
maintenance of the Licensed Patents by disclosing such information as may be
necessary for the same and by promptly executing such documents as ARCH may
reasonably request in connection therewith.  Licensee and its
Sublicensees and Affiliates of either shall bear their own costs in connection
with their cooperation with ARCH under this Paragraph.

     

    (4)           ARCH
will provide Licensee copies of all material documents received or prepared by
ARCH in the prosecution and maintenance of the Licensed
Patents.  Licensee shall have reasonable opportunities to advise ARCH
concerning, and ARCH shall cooperate with Licensee with respect to, filing,
registration, prosecution and maintenance of all patents and patent applications
within the Licensed Patents.  “Reasonable opportunities” shall mean
that Licensee shall receive from ARCH or its patent counsel copies of all
documents and materials relating to filing, registration, prosecution and
maintenance of patent applications and patents within the Licensed Patents as
soon as is reasonably practical after ARCH has received such documents and
materials, and at least forty-five (45) days or the maximum time provided by the
Patent Office before any date imposed upon ARCH for action or response with
respect to such patent applications and patents.  ARCH agrees to use
its best efforts to incorporate into the final version of such documents and
materials any reasonable change(s) and/or claims (s) requested by Licensee
thereof prior to submission to the applicable government agencies or other
parties.  In addition, to avoid any prejudice and added unnecessary
costs to Licensee, ARCH shall adhere to the applicable deadlines, and Licensee
shall not be responsible for the costs of any time extensions for reasons
that are not approved in advance by Licensee.

     

    B.           Licensee’s Rights to Prosecute and
Maintain Patents.  ARCH shall notify Licensee in writing of any
country(ies) where it either previously declared its intention to file under
Paragraph 4.A. and subsequently decided not to file in such country(ies) or
previously filed and decided to abandon the patent application or issued
patent.  Such notice shall be given so as to allow Licensee a
reasonable time, but not less than ninety (90) days, within which to file in
countries where ARCH does not intend to file a patent application or is not
going to continue the prosecution or maintenance of the application or patent,
whichever is relevant.  In all cases where Licensee elects to file,
Licensee shall file, prosecute and maintain the applications and patents in
ARCH’s name and at Licensee’s expense.  Such applications and patents
shall be included in the definition of Licensed Patents for all purposes of this
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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    C.           Patent
Costs.  Licensee agrees to pay all necessary and reasonable
third party fees and out-of-pocket expenses incurred by ARCH in obtaining and
maintaining the Licensed Patents, including those incurred by ARCH pursuant to
the terms of the Agreement effective May 26, 1993 by and between ARCH, DFCI and
Licensee.  Payment for fees and expenses incurred after the date of
this Agreement shall be invoiced to Licensee on a monthly basis and Licensee
agrees to pay such invoices within thirty (30) days of receipt.  Licensee
also agrees upon reasonable request by ARCH to make timely reasonable estimated
advanced payments for the filing of national applications in countries selected
by Licensee; provided, that Licensor provides Licensee with invoices for such
amounts at least thirty (30) days prior to the date payment must be made by ARCH
to a third party.  Documentation received from the third party vendors
to support the amounts invoiced, in a form reasonably acceptable to Licensee,
shall be included with each invoice.  Licensee shall raise any
objections to such amounts invoiced within the thirty (30) day time period for
payment.  Invoices for advanced payments shall be reconciled with the
advance payments made by Licensee every six (6) months.  Any excess
payment by Licensee shall be credited to future patent costs specified in
this Paragraph 4.C.

     

    D.           Failure to Pay Patent
Costs.  If Licensee declines or fails to make advance payments
or pay or reimburse ARCH for any material portion of any reasonable patent fees
and expenses (including maintenance fees) as required by Paragraph 4.C. for any
application or patent, Licensee’s rights with respect to the applicable
applications and patents shall terminate effective sixty (60) days after written
notice from ARCH requesting such payment, unless payment in full is made
within such time; provided, if Licensee disputes that any portion of such fees
are reasonable, it may provide notice to ARCH that it wishes to have such
dispute settled by arbitration pursuant to Paragraph 10, and in such event ARCH
may not terminate Licensee’s rights with respect to the applicable applications
and patents until and unless the arbitrator determines that such fees and
expenses were reasonable, in which case Licensee shall pay the unpaid fees and
expenses (with interest from the date due) in full within ten days from the date
of the arbitrator’s final written determination that such fees and expenses were
reasonable and also pay the arbitrators fees incurred in connection with the
arbitration.  Such notice can be sent by ARCH at any time after the
expiration of the thirty (30) days provided in Paragraph 4.C. for payment of
invoices or in the case of advance payments, any time after the date five (5)
business days before payment must be made by ARCH to a third party.

     

    5.           Due Diligence and
Milestones.

     

    A.           Diligence and Development
Expenditures.  Licensee or its Sublicensees shall use
commercially reasonable diligent efforts to develop and commercialize Licensed
Products.  Through September 30, 2000, “commercially reasonable
diligent efforts” shall automatically be deemed to have been met if Licensee
achieves the following milestones:

     

    
      	
              Event

            	 
      	
              Date

            
	
              Obtain
      rights to TNFalpha or alternative therapeutic gene designated by Licensee
      for use in conjunction with one or more of the Licensed Patents
      (“Milestone 1”).

            	 
      	
              3/31/99

            
	 
      	 
      	 
      
	
              File
      IND for a Licensed Product (“Milestone 2”).

            	 
      	
              Within
      24 months of the Effective Date; provided, however, Licensee need not
      accomplish Milestone 2 if it has expended at least $* on the development
      of Licensed Product(s) as of 24 months after the Effective
      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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
foregoing milestones may be satisfied by Licensee and/or its Affiliates or
Sublicensees.

     

    B.           Progress
Report.  Within thirty (30) days of the end of each June 30 and
January 31 during the term of this Agreement, Licensee shall make a written
report to ARCH, in such detail as ARCH may reasonably request, covering the
preceding six months and describing the progress of Licensee toward achieving
the development and commercialization of Licensed Products.  Licensee
agrees to immediately notify ARCH in writing when commercial products are first
sold and when Licensee’s obligation to begin making running Royalty payments
begins.  When Licensee begins making running Royalty payments, the six
month reports required by this Paragraph shall be reduced to a yearly report due
by January 31 of each year, covering the preceding year’s commercialization
efforts.

     

    6.           Warranties; Disclaimer,
Indemnification, Insurance.

     

    A.           ARCH.  ARCH
represents and warrants that:  (i) it is the sole and exclusive owner
of all right, title and interest in the Licensed Patents; (ii) it has the right
to grant the rights and licenses granted herein, and the Licensed Patents are
free and clear of any lien, encumbrance, security interest or restriction on
license; (iii) it has not previously granted, and will not grant during the term
of this Agreement (with the exception of the Regulon Option of March 15, 1993,
which has since expired), any right, license or interest in and to the Licensed
Patents, or any portion thereof, inconsistent with the license granted to
Licensee herein; and (iv) there are no threatened or pending actions,
suits, investigations, claims or proceedings in any way relating to the Licensed
Patents.

     

    B.           Disclaimer of
Warranties.  Except as expressly provided above, Licensor make
no representations or warranties of any kind, express or implied, with respect
to the invention(s) claimed in the Licensed Patents or with respect to the
Licensed Patents themselves, including but not limited to, any representations
or warranties about (i) the validity, scope or enforceability of any of the
Licensed Patents; (ii) the accuracy, safety or usefulness for any purpose of any
information provided by Licensor to Licensee, its Sublicensees or Affiliates of
either, with respect to the invention(s) claimed in the Licensed Patents or with
respect to the Licensed Patents themselves and any products developed from or
covered by them; (iii) whether the practice of any claim contained in any of the
Licensed Patents will or might infringe a patent or other intellectual property
right owned or licensed by a third party; (iv) the patentability of any
invention claimed in the Licensed Patents; or (v) the accuracy, safety, or
usefulness for any purpose of any product or process made or carried out in
accordance with or through the use of the Licensed Patents.

     

    *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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    C.           Indemnification.  Licensee
agrees, and agrees to cause its Sublicensees and Affiliates of either, to
indemnify, defend and hold harmless Licensor, its Affiliates and all trustees,
directors, officers, employees, fellows and agents of any of the foregoing
(including Licensor and its Affiliates, each an “Indemnified Person”) from and
against any and all third party claims, demands, loss, damage, penalty, cost or
expense (including attorneys’ and witnesses’ fees and costs) of any kind or
nature, arising from the development, production, use, sale or other disposition
of Licensed Products and all activities associated therewith by Licensee, its
Sublicensees or Affiliates of either, or any use by Licensee and its Sublicensee
or Affiliates of information provided by Licensor to
Licensee.  Licensee agrees and agrees to use reasonable efforts to
cause each of its Sublicensees and Affiliates of either to agree not to sue
any Indemnified Person in connection with the development, production, use, sale
or other disposition of Licensed Product and all activities associated
therewith, except if the Indemnified Person has breached this Agreement.
 Licensor shall be entitled to participate, at its option and expense,
through counsel of its own selection, and may join in any legal actions related
to any such third party claims, demands, losses, damages, costs, expenses and
penalties.  Licensee, its Sublicensees and Affiliates of either, shall
not enter into any settlement affecting any rights or obligations of any
Indemnified Person or which includes an express or implied admission of
liability, negligence or wrongdoing by any Indemnified Person, without the prior
written consent of such Indemnified Person, which consent shall not be
unreasonably withheld.

     

    Licensee
agrees, and agrees to cause its Sublicensees and Affiliates of either to
indemnify, defend by counsel acceptable to HH1VII, and hold harmless the Howard
Hughes Medical Institute, and its trustees, officers, employees, and agents
(collectively, “HHMI Indemnified Persons”), from and against any claim,
liability, cost, expense, damage, deficiency, loss, or obligation, of any kind
or nature (including, without limitation, reasonable attorney’s fees and other
costs and expenses of defense) (collectively, “Claims”), based upon, arising out
of, or otherwise relating to this License Agreement, including without
limitation, any cause of action relating to product liability.  The
previous sentence will not apply to any Claim that is determined with finality
by a court of competent jurisdiction to result solely from the gross negligence
or willful misconduct of an HHMI Indemnified Person.  In addition,
Licensee and its Sublicensees and Affiliates agree not to settle any Claim
against an HHMI Indemnified Person without HHMI’s written consent, where (a)
such settlement would include any admission of liability on the part of any HHMI
Indemnified Person, (b) such settlement would impose any restriction on any HHMI
Indemnified Person’s conduct of any of its activities, or (c) such settlement
would not include an unconditional release of all HHMI Indemnified Persons from
all liability for claims that are the subject matter of the settled
Claim.

     

    D.           Assumption of
Risk.  The entire risk as to the performance, safety and
efficacy of any invention claimed in the Licensed Patents practiced by Licensee
or its Affiliates or Sublicensees or of any Licensed Product made by Licensee or
its Affiliates or Sublicensees is assumed by Licensee, its Sublicensees and
Affiliates of either, provided that such assumption of the risk shall not apply
to the intentional misconduct or gross negligence by Indemnified
Persons.  Indemnified Persons shall not, except for their intentional
misconduct or gross negligence, be responsible or liable for any injury, loss,
or damage of any kind, including but not limited to direct, indirect, special,
incidental or consequential damages or lost profits to Licensee, any
Sublicensee, Affiliates of either or customers or any of the foregoing, or for
any such injury, loss or damage to any other individual or entity, regardless of
legal theory based on the development, manufacture, use, sale or other
disposition of Licensed Products and all activities associated
therewith.  The above limitations on liability apply even though the
Indemnified Person may have been advised of the possibility of such injury, loss
or damage.  Licensee shall not, and shall require all Sublicensees and
Affiliates of either to not, make any agreements, statements, representations or
warranties or accept any liabilities or responsibilities whatsoever with regard
to any person or entity which are inconsistent with this Paragraph.

     

    *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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    E.           Insurance.  At
such time as any product, process or service relating to, or developed pursuant
to this Agreement is being commercially distributed or sold (other than for the
purpose of obtaining regulatory approvals) by Licensee or by a Sublicensee or
agent of Licensee, Licensee shall, at its sole cost and expense, procure and
maintain policies of comprehensive general liability insurance in amounts not
less than $2,000,000 per incident and $2,000,000 annual aggregate and naming the
Indemnified Persons, including HHMI Indemnified Persons, as additional
insureds.  Such comprehensive general liability insurance shall
provide (a) product liability coverage, and (b) broad form contractual
liability coverage for Licensee’s indemnification under Paragraph 6.C. of this
Agreement.  If Licensee elects to self-insure all or part of the
limits described above (including deductibles or retentions which are in excess
of $250,000 annual aggregate), such self-insurance program must be reasonably
acceptable to the Licensor and DFCI’s associated Risk Management
Foundation.  The minimum amounts of insurance coverage required under
these provisions shall not be construed to create a limit of Licensee’s
liability with respect to its indemnification obligation under Paragraph 6.C. of
this Agreement.  Licensee shall provide Licensor with written evidence
of such insurance upon written request.  Licensee shall provide the
Licensor with written notice at least fifteen (15) days prior to the
cancellation, non-renewal or material reduction in the extent of such insurance;
if Licensee does not obtain replacement insurance providing comparable coverage
within such fifteen (15) day period, Licensors shall have the right to terminate
this Agreement effective at the end of such fifteen (15) day period without
any notice or additional waiting periods.  Licensee shall maintain
such comprehensive general liability insurance beyond the expiration or
termination of this Agreement during (i) the period that any product, process,
or service, relating to, or developed pursuant to, this Agreement is being
commercially distributed or sold (other than for the purpose of obtaining
regulatory approvals) by Licensee or by a Sublicensee or agent of Licensee, and
(ii) a reasonable period after the period referred to in (i) above which in no
event shall be less than fifteen (15) years.

     

    7.           Confidentiality.

     

    A.           Confidentiality,
Publications and Data Access.  All information submitted by one
party to the other concerning the invention(s) claimed in the Licensed Patents
and Licensed Products identified as confidential at the time of disclosure shall
be considered as confidential (“Confidential Information”) and shall be utilized
only pursuant to the licenses granted hereunder.  Subject to Paragraph
7(d) below, during the term of this Agreement and for a period of ten (10) years
thereafter, neither party shall disclose to any third party any Confidential
Information received from the other party without the specific written consent
of such party.  The foregoing shall not apply where such Information
a) was or becomes public through no fault of the receiving party, b) was, at the
time of receipt, already in the possession of receiving party as evidenced by
its prior written records, c) was obtained from a third party legally entitled
to use and disclose the same, d) is independently developed by the receiving
party without use of any Confidential Information of the disclosing party, or e)
is required by law to be disclosed to a court or governmental
agency.

     

    *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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    B.           Permitted Use and
Disclosures.  Notwithstanding Paragraph 7.A above, each party
hereto may use or disclose information disclosed to it by the other party to the
extent such use or disclosure is reasonably necessary in filing or prosecuting
patent applications, prosecuting or defending litigation, complying with
applicable governmental regulations or otherwise submitting information to tax
or other governmental authorities, conducting clinical trials, or making a
permitted sublicense or otherwise exercising its rights hereunder, provided that
if a party is required to make any such disclosure of another party’s
confidential information, other than pursuant to a confidentiality agreement, it
will give reasonable advance notice to the latter party of such disclosure and,
save to the extent inappropriate in the case of patent applications, will use
its best efforts to secure confidential treatment of such information prior to
its disclosure (whether through protective orders or otherwise).

     

    C.           Confidential
Terms.  Except as expressly provided herein, each party agrees
not to disclose any terms of this Agreement to any third party without the
consent of the other parry; provided, disclosures may be made as required by
securities or other applicable laws, or to actual or prospective investors or
corporate partners, or to a party’s accountants, attorneys and other
professional advisors.

     

    D.           Publications.  Licensor
shall provide to Licensee copies of any proposed written publication by Licensor
containing any Confidential Information and, to the extent Licensor is aware of
them, proposed publications containing any information relating to the Licensed
Patents.  Licensee agrees to use reasonable efforts to provide copies
of any proposed written publication containing any information relating to the
Licensed Patents of Licensee, its Sublicensees and Affiliates of either of them
to Licensor.  The parties shall provide copies of such proposed
written publications at least thirty(30) days in advance of
publication.  In addition, the topic and contents of any proposed oral
disclosures regarding the Licensed Patents which will be made to third persons
by Licensor shall be disclosed in writing to Licensee at least thirty (30) days
prior to any proposed oral presentation.  The receiving party
may object to such proposed publication or disclosure within thirty (30)
days of receipt of the publication or disclosure on the grounds that (i) it
contains patentable subject matter that needs patent protection or (ii) that the
publication contains Confidential Information of the objecting
party.  At the request of the objecting party, Confidential
Information of such party shall be deleted from the publication or oral
disclosure.  If the objecting party decides to seek patent protection,
the proposed publication or disclosure shall be delayed for up to a period of
thirty (30) additional days to permit the preparation and filing of appropriate
patent applications.

     

    8.           Infringement.  In
the event of an infringement of a Licensed Patent the following shall
apply:

     

    A.           Notice.  Each
party shall give the others written notice if one of them becomes aware of any
infringement by a third party of any Licensed Patent.  Upon notice of
any such infringement, the parties shall promptly consult with one another with
a view toward reaching agreement on a course of action to be
pursued.

     

    *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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    B.           Licensee’s Right to Bring
Infringement Action.

     

    (1)           If
a third party infringes any patent included in the Licensed Patents within the
Field, Licensee shall have the first right, but not the obligation, to institute
and prosecute an action or proceeding to abate such infringement and to resolve
such matter by settlement or otherwise.  Licensee agrees to notify
ARCH of its intention to bring an action or proceeding prior to filing the same
(or responding to any declaratory judgment action) and in sufficient time to
allow ARCH the opportunity to discuss with Licensee the choice of counsel for
such matter.  Licensee agrees to hire counsel reasonably acceptable to
ARCH.  Licensee shall keep ARCH timely informed of material
developments in the prosecution or settlement of such action or
proceeding.  Licensee shall be responsible for all costs and expenses
of any action or proceeding against infringers which Licensee
initiates.  Licensor shall cooperate fully in such action,
including without limitation, by joining as a party plaintiff if required to do
so by law to maintain such action or proceeding, and by executing and making
available such documents as Licensee may reasonably request.  Licensee
agrees to promptly reimburse Licensor for its reasonable third party
out-of-pocket fees and expenses incurred in joining an action or proceeding or
cooperating with Licensee.  Licensor may be represented by counsel in
any such legal proceedings, at Licensor’s own expense, acting in an advisory but
not controlling capacity.

     

    (2)           The
prosecution, settlement, or abandonment of any action or proceeding under
Paragraph 8.B.(1) shall be at Licensee’s reasonable discretion provided that
Licensee shall not have any right to surrender any of Licensor’s rights to the
Licensed Patents.

     

    (3)           Except
as provided herein, all amounts of every kind and nature recovered from an
action or proceeding of infringement by Licensee shall belong to
Licensee.  After deduction of the fees and expenses of both parties to
this Agreement, any remaining amounts recovered shall be considered Net Sales
under this Agreement and subject to Royalty payments in accordance with
Paragraph 3.B.

     

    C.           Licensor’s Right to Bring
Infringement Action.  If a third party infringes any patent
included in the Licensed Patents within the Field, and Licensor wish to initiate
a legal proceeding against such infringement, Licensor shall first notify
Licensee in writing and may request that Licensee bring an action or proceeding
against the infringing third party; provided, within sixty (60) days of
receiving such notice Licensee’s patent counsel shall notify ARCH of Licensee’s
plans for abating such infringement.  If Licensee declines or fails to
bring such an action or proceeding within one hundred and eighty (180) days of
receipt of the notice, Licensor shall have the right, at its discretion, to
institute and prosecute an action or proceeding to abate such infringement and
to resolve such matter by settlement or otherwise.  Licensee shall
cooperate fully by joining as a party plaintiff if required to do so by law to
maintain such action and by executing and making available such documents as
Licensor may reasonably request.  Except as specifically provided in
this Paragraph, Licensor shall have the right to retain all amounts recovered of
every kind and nature.  Amounts recovered by Licensor shall not be
considered Net Sales under this Agreement and shall not give rise to royalty
payments under Paragraph 3.

     

    *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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    9.           Termination.

     

    A.           Term.  Unless
terminated earlier, this Agreement shall expire on the expiration date of the
last to expire of the Licensed Patents.  The term of this Agreement
shall commence on the Effective Date, and unless earlier terminated as provided
herein, shall continue in full force and effect on a country-by-country and
Licensed Product-by-Licensed Product basis until there are no remaining royalty
payment obligations in a country, at which time the Agreement shall expire in
its entirety in such country.

     

    B.           ARCH’s Right to
Terminate.  ARCH shall have the right to terminate this
Agreement as follows, in addition to all other available remedies:

     

    (1)           Subject
to Paragraph 9.C, if Licensee fails to make any royalty or other payment when
due, this Agreement shall terminate effective thirty (30) days after ARCH’s
written notice to Licensee to such effect, unless Licensee makes such payment
within such thirty (30) days.

     

    (2)           Subject
to Paragraph 9.C, if Licensee fails to observe any other material obligation of
this Agreement, this Agreement shall terminate effective ninety (90) days after
ARCH’s written notice to Licensee describing such failure, unless Licensee cures
such failure within such ninety (90) days.

     

    (3)           If
Licensee shall have filed by or against it a petition under any bankruptcy or
insolvency law and such petition is not dismissed within sixty (60) days of its
filing, or if Licensee makes an assignment of all or substantially all of its
assets for the benefit of its creditors Licensor may terminate this Agreement by
written notice effective as of the (i) date of filing by Licensee of any such
petition, (ii) date of any such assignment to creditors, or (iii) end of
the sixty (60) days if a petition is filed against it and not dismissed by such
time, whichever is applicable.

     

    (4)           If
Licensee shall be dissolved, liquidated or otherwise ceases to exist due to
insolvency, other than for reasons specified in Paragraph 9. B( 3) above, this
Agreement shall automatically terminate as of (i) the date articles of
dissolution or a similar document is filed on behalf of Licensee with the
appropriate government authority, or (ii) the date of establishment of a
liquidating trust or other arrangement for the winding up of the affairs of
Licensee.

     

    C.           Termination for
Cause.  If any party materially breaches this Agreement, the
Licensee, if Licensor is the breaching party, or ARCH, if Licensee is the
breaching party, may elect to give the breaching party written notice describing
the alleged breach.  If the breaching party has not cured such breach
within sixty (60) days after receipt of such notice, the notifying party will be
entitled, in addition to any other rights it may have under this Agreement, to
terminate this Agreement effective immediately; provided, however, if either
party receives notification from the other of a material breach and if the party
alleged to be in default notifies the other party in writing within thirty (30)
days of receipt of such default notice that it disputes the asserted default,
the matter will be submitted to arbitration as provided in Article 10 of this
Agreement.  In such event, the nonbreaching party shall not have the
right to terminate this Agreement until it has been determined in such
arbitration proceeding that the other party materially breached this Agreement,
and the breaching party fails to cure such breach within ninety (90) days after
the conclusion of such arbitration proceeding, including any appeal subject to
Section 10.B.

     

    *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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    D.           Licensee’s Right to
Terminate.  Licensee may terminate this Agreement as to any of
the patent applications and/or patents within the Licensed Patents and/or any
country at any time by giving ARCH ninety (90) days prior written
notice.

     

    E.           Effect of
Termination.

     

    (1)           Accrued Rights and
Obligations.  Termination of this Agreement for any reason
shall not release any party hereto from any liability which, at the time of such
termination, has already accrued to the other parry or which is attributable to
a period prior to such termination, nor preclude either party from pursuing any
rights and remedies it may have hereunder or at law or in equity which accrued
or are based upon any event occurring prior to such termination.

     

    (2)           Stock on
Hand.  In the event this Agreement is terminated for any
reason, Licensee and its Affiliates and Sublicensees shall have the right to
sell or otherwise dispose of the stock of any Licensed Product subject to this
Agreement then on hand, subject to Article 3.

     

    (3)           Sublicensees.  Upon
termination of this Agreement for any reason, any sublicense not then in default
shall continue in force and effect and shall be assigned by Licensee to
Licensors; provided, the financial obligations of each Sublicensee to Licensors
shall be limited to the amounts Licensee shall be obligated to pay to Licensors
for the activities of such Sublicensee pursuant to this Agreement.

     

    F.           Survival.  The
provisions of (i) Licensee’s obligation to pay Royalties and Patent Costs
accrued prior to the date of termination and which were not paid or payable
before termination, along with the report of Net Sales and record keeping
required by Paragraphs 3.D and E, and (ii) Paragraphs 6, 7, 9.E, 9.F, 10 and 11
shall survive termination of this Agreement for any reason.

     

    10.          Arbitration.  If
the parties cannot satisfactorily settle any claim, disagreement or controversy
arising out of or related to this Agreement or its interpretation, performance,
nonperformance, breach or their respective rights and obligations hereunder,
such disagreement shall, at the request of either party, be settled by
arbitration as follows:

     

    *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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    A.           Panel.  All
such disputes shall be referred to an arbitration panel comprised of three
persons, one to be selected by each party hereto and the third selected by the
first two.  The arbitrators shall be persons involved in and familiar
with the licensing and technology transfer field.  Each party shall
select an arbitrator within twenty (20) days of request for arbitration by
either party.  The first two arbitrators shall select the third member
of the panel within fifteen (15) days after their selection.  The
arbitration shall be held as soon as is reasonably possible after selection of
the arbitration panel.  The proceedings shall be held in an informal
manner as reasonably determined by the arbitrators.  Except for
the right of appeal as set forth in Section 10.B below, the parties shall
be bound by a decision of the arbitration panel with respect to the matter in
dispute.  All proceedings of the arbitration panel shall be held in
Chicago, Illinois.  The panel’s costs and fees shall be borne by the
losing party if the arbitrators designate one party as the losing
party.

     

    B.           Appeals.  There
shall be no appeal from an arbitration panel’s unanimous decision.  In
the event of a majority decision by the arbitration panel, a dissatisfied party
may appeal the panel’s decision to the American Arbitration Association (AAA)
for an independent, final, binding decision.  All appeals shall be
heard in Chicago, Illinois.  The dissatisfied party must make such an
appeal within thirty (30) days after receipt of the arbitration panel’s decision
and if it loses the appeal must bear the parties’ expenses and costs for such
appeal.  The AAA is hereby authorized to make arrangements for such
appeal, to be held under the procedures provided by its arbitration
rules.  Judgment upon any award rendered by all or a majority of the
appeal arbitrators or a unanimous judgment of the initial panel, may be entered
in any court of competent jurisdiction, after any and all applicable appeal
periods have passed.

     

    C.           Not Applicable to
HIM.  This Paragraph 10 does not apply to any such claims,
disagreements, or controversies involving HHMI.

     

    11.           Miscellaneous.

     

    A.           Marking.  Licensee
shall and agrees to cause its Sublicensees and Affiliates of either, to place in
a conspicuous location on Licensed Product (or its packaging where marking the
Product is physically impossible) sold to third parties, a patent notice in
accordance with the laws concerning the marking of patented articles in the
country in which such articles are sold.

     

    B.           United States
Manufacture.  Licensee agrees that, to the extent required by
35 United States Code Section 204, any Licensed Products sold in the United
States will be manufactured substantially in the United States of
America.

     

    C.           Export Regulations.  To
the extent that the United States Export Control Regulations are applicable,
neither Licensee nor Licensor shall, without having first fully complied with
such regulations, (i) knowingly transfer, directly or indirectly, any
unpublished technical data obtained or to be obtained from the other party
hereto to a destination outside the United States, or (ii) knowingly ship,
directly or indirectly, any product produced using such unpublished technical
data to any destination outside the United States.

     

    D.           Entire Agreement, Amendment,
Waiver.  This Agreement together with the Schedules attached
hereto constitutes the entire agreement between the parties regarding the
subject matter hereof, and supersedes all prior written or oral agreements or
understandings (express or implied) between them concerning the same subject
matter.  This Agreement may not be amended or modified except in a
writing signed by duly authorized representatives of each party.  No
waiver of any default hereunder by any party or any failure to enforce any
rights hereunder shall be deemed to constitute a waiver of any subsequent
default with respect to the same or any other provision hereof

     

    *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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    E.           Notice.  Any
notice required or otherwise made pursuant to this Agreement shall be in
writing, sent by registered or certified mail properly addressed, or by
facsimile with confirmed answer-back, to the other party at the address set
forth below or at such other address as may be designated by written notice to
the other parties.  Notice shall be deemed effective three (3)
business days following the date of sending such notice if by mail, on the day
following deposit with an overnight courier, if sent by overnight courier, or
upon confirmed answer-back if by facsimile.

     

    If to
ARCH:

     

    ARCH
Development Corporation

    1101 East
58th Street

    Chicago,
Illinois 60637

    Attention:  President

     

    If to
Licensee:

     

    GenVec,
Inc.

    12111
Parklawn Drive

    Rockville,
MD 20852

    Attention:  President

    With a
copy to:  Vice President, Corporate Development

     

    F.           Assignment.  This
Agreement shall be binding on the parties hereto and upon their respective
successors and assigns.  ARCH may assign this Agreement at any time to
a third party that performs a similar role as ARCH for the University on written
notice to Licensee and to any other party with the written approval of
Licensee, said approval not to be unreasonably withheld.  This
Agreement shall not be assignable by Licensee without prior written consent from
ARCH, which consent shall not to be unreasonably withheld; provided, however,
that Licensee may assign this Agreement without such consent in connection with
a transfer of all or substantially all of its assets, whether by sale, merger,
operation of law or otherwise.  In the event of any permitted
assignment, the assignee shall be substituted for the assigning party as a parry
hereto, and the assigning party shall no longer be bound hereby by the other
parties.

     

    G.           Governing
Law.  The interpretation and performance of this Agreement
shall be governed by the laws of the State of Illinois applicable to contracts
made and to be fully performed in that state.

     

    H.           The
University.  This Agreement is entered into by ARCH in its own
private capacity and not on behalf of the University, nor as its contractor or
agent.  It is understood and agreed that the University is not a party
to this Agreement and is not liable for nor assumes any responsibility or
obligation under this Agreement, and is not liable for any action or lack
thereof by ARCH.

    

    *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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    I. 
          Advertising.  Each
party agrees not to use the name of the other party in any commercial activity,
marketing, advertising or sales brochures except with the prior written consent
of the other party, which consent may be granted or withheld in such party’s
sole discretion.  Licensee agrees not to use, and shall prohibit its
Sublicensees and the Affiliates of either from using, the name of HHMI, the
University or any of the inventor(s) in any commercial activity, marketing,
advertising or sales brochures, except to the extent required by
law.

     

    J.  
         Independent
Contractors.  The relationship of the parties hereto is that of
independent contractors.  The parties hereto are not deemed to be
agents, partners or joint venturers of the others for any purpose as a result of
this Agreement or the transactions contemplated thereby.

     

    K.           Right to Develop
Independently.  Nothing in this Agreement will impair
Licensee’s right to independently acquire, license, develop for itself, or have
others develop for it, intellectual property and technology performing similar
functions as the Licensed Patents or to market and distribute Licensed Products
or other products based on such other intellectual property and
technology.

     

    L. 
          Force
Majeure.  Neither party shall lose any rights hereunder or be
liable to the other party for damages or losses (except for payment obligations)
on account of failure of performance by the defaulting party if the failure is
occasioned by war, strike, fire, Act of God, earthquake, flood, lockout,
embargo, governmental acts or orders or restrictions, failure of suppliers, or
any other reason where failure to perform is beyond the reasonable control and
not caused by the negligence, intentional conduct or misconduct of the
nonperforming party and the non-performing party has exerted all reasonable
efforts to avoid or remedy such force majeure; provided, however, that in
no event shall a party be required to settle any labor dispute or
disturbance.

     

    M.          LIMITATION OF
LIABILITY.  NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY
SPECIAL, CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES ARISING OUT OF THIS
AGREEMENT, HOWEVER CAUSED, UNDER ANY THEORY OF LIABILITY.

     

    N.           Severability.  In
the event that any provisions of this Agreement are determined to be invalid or
unenforceable by a court of competent jurisdiction, the remainder of the
Agreement shall remain in full force and effect without said
provision.  The parties shall in good faith negotiate a substitute
clause for any provision declared invalid or unenforceable, which shall most
nearly approximate the intent of the parties in entering this
Agreement.

     

    O.           Counterparts.  This
Agreement may be executed in two counterparts, each of which shall be deemed an
original and which together shall constitute one instrument.

    

    *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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    P.           HHMI.  HHMI
is not a party to this License Agreement and has no liability to any licensee,
Sublicensee, or user of any technology covered by this License Agreement, but
HHMI is an intended third-party beneficiary of this License Agreement and
certain of its provisions are for the benefit of HHMI and are enforceable
by HHMI in its own name.

     

    IN
WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by
their respective duly authorized officers or representatives on the date first
above written.

     

    
      
        
          
            
              	
                      ARCH
      DEVELOPMENT CORPORATION

                    	
                      GENVEC,
      INC.

                    
	 
      	 
      	 
      
	
                      By:

                    	 
      	 
      	
                      By:

                    	 
      
	 
      	
                      Its:
      CEO

                    	 
      	 
      	
                      Its:
      Vice President/Corporate
Development

                    

            

          

        

      

    

    

    *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

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Schedule
A

     

    
      *

    

    

    *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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