Document:

Exhibit 10.1

 

IOMAI
CORPORATION

SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement (this “Agreement”) is made and entered into as
of October 23, 2006, by and among Iomai Corporation, a Delaware corporation
(the “Company”),
and each of the purchasers listed on Exhibit A attached hereto
(collectively, the “Purchasers”
and individually, a “Purchaser”).

RECITALS

WHEREAS, the Company desires to issue and sell to the Purchasers, and
the Purchasers desire to purchase from the Company, 2,283,106 shares (the “Shares”)
of Common Stock, par value $0.01 per share, of the Company (the “Common Stock”),
on the terms and conditions set forth in this Agreement;

WHEREAS, the Company and each Purchaser are executing and delivering
this Agreement in reliance upon the exemption from securities registration
afforded by the provisions of Regulation D (“Regulation D”), as promulgated by
the United States Securities and Exchange Commission (the “SEC”) under the
Securities Act of 1933, as amended (the “Securities Act”).

NOW, THEREFORE, in consideration of the foregoing, the mutual promises
hereinafter set forth, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

1.             AGREEMENT TO PURCHASE AND SELL
STOCK.

(a)           Authorization.  The Company’s Board of Directors has
authorized the issuance and sale, pursuant to the terms and conditions of this
Agreement, of up to 2,283,106 Shares, (the “Purchased Securities”).

(b)           Agreement to Purchase and Sell
Securities.  Subject to the terms and
conditions of this Agreement, each Purchaser severally agrees to purchase, and
the Company agrees to sell and issue to each Purchaser, at the Closing (as
defined below), that number of Shares set forth opposite such Purchaser’s name
on Exhibit A attached hereto.  The
purchase price of each Share (the “Per Share Price”) shall be $4.38.

(c)           Use of Proceeds.  The Company intends to apply the net proceeds
from the sale of the Purchased Securities for working capital and general corporate purposes, including clinical trials
and regulatory activities.

(d)           Obligations Several Not Joint.  The obligations of each Purchaser under this
Agreement are several and not joint with the obligations of any other
Purchaser, and no Purchaser shall be responsible in any way for the performance
of the obligations of any other Purchaser under this Agreement.  Nothing contained herein, and no action taken
by any Purchaser pursuant hereto, shall be deemed to constitute the Purchasers
as a partnership, an association, a joint venture or any other kind of entity,
or create a presumption that the Purchasers are in any way acting in concert or
as a group with respect to such obligations or the 

 

transactions contemplated by this Agreement.  Each Purchaser shall be entitled to
independently protect and enforce its rights, including without limitation the
rights arising out of this Agreement, and it shall not be necessary for any
other Purchaser to be joined as an additional party in any proceeding for such
purpose.

2.             CLOSING.  The
purchase and sale of the Purchased Securities shall take place at the offices
of Ropes & Gray LLP, One International Place, Boston, Massachusetts
02110-2624 at 9:00 a.m., Boston, Massachusetts time, on October 25, 2006, or at
such other time and place as the Company and Purchasers representing a majority
of the Shares to be purchased, mutually agree upon (which time and place are
referred to in this Agreement as the “Closing”). 
At the Closing, the Company shall, against delivery of payment for the
Purchased Securities by wire transfer of immediately available funds in
accordance with the Company’s instructions, authorize its transfer agent to
issue to each Purchaser one or more stock certificates (the “Certificates”) registered
in the name of such Purchaser (or in such nominee name(s) as designated by such
Purchaser in the Stock Certificate Questionnaire (attached hereto as Appendix
I) (the “Stock
Certificate Questionnaire”), representing the number of
Purchased Shares set forth opposite the appropriate Purchaser’s name on Exhibit
A hereto, and bearing the legend set forth in Section 4(j) herein.  Closing documents may be delivered by
facsimile with original signature pages sent by overnight courier.  The date of the Closing is referred to herein
as the Closing Date.

3.             REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  Except as set forth in the SEC Documents (as
defined below) or the disclosure letter delivered concurrently with this
Agreement, the Company hereby represents and warrants to each Purchaser that:

(a)           Organization Good Standing and
Qualification.  The Company is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware and has all corporate power and authority required
to (i) carry on its business as presently conducted and (ii) enter into this
Agreement and the other agreements, instruments and documents contemplated
hereby, and to consummate the transactions contemplated hereby and thereby.  The Company is qualified to do business and
is in good standing in each jurisdiction in which the failure to so qualify
would have a Material Adverse Effect.  As
used in this Agreement, “Material
Adverse Effect” means a material adverse effect on, or a
material adverse change in, or a group of such effects on or changes in, the
business, operations, financial condition, results of operations, assets or
liabilities of the Company, taken as a whole.

(b)           Capitalization.  The capitalization of the Company, prior to
the issuance of the Purchased Securities, is as follows:

(i)            The authorized capital stock of the
Company consists of 200,000,000 shares of Common Stock, par value $0.01 per
share, and 25,000,000 shares of Preferred Stock, par value $0.01 per share (the
“Preferred Stock”).

(ii)           As of October 18, 2006, the issued
and outstanding capital stock of the Company consisted of (A) 16,909,989 shares
of Common Stock and (B) no shares of Preferred Stock.  The shares of issued and outstanding capital
stock of the Company have been 

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duly authorized and validly issued, are fully paid and
nonassessable and have not been issued in violation of or are not otherwise
subject to any preemptive or other similar rights.

(iii)          As of September 30, 2006, the Company
has (1) 3,150,600 shares of Common Stock reserved for issuance upon exercise of
outstanding options and (2) 19,231 shares of Common Stock reserved for issuance
upon exercise of outstanding warrants.

With the exception of the foregoing, there are no outstanding
subscriptions, options, warrants, convertible or exchangeable securities or
other rights granted to or by the Company to purchase shares of Common Stock or
other securities of the Company, and there are no commitments, plans or
arrangements to issue any shares of Common Stock or any security convertible
into or exchangeable for Common Stock.

(c)           Subsidiaries.  The Company does not have any subsidiaries
and the Company does not own any capital stock of, assets comprising the
business of, obligations of, or any other material interest (including any
equity or partnership interest) in, any person or entity.

(d)           Due Authorization.  All corporate actions on the part of the
Company necessary for the authorization, execution, delivery of, and the
performance of all obligations of the Company under this Agreement and the
authorization, issuance, reservation for issuance and delivery of all of the
Purchased Securities being sold under this Agreement have been taken, no
further consent or authorization of the Company or the Board of Directors or its
stockholders is required, and this Agreement constitutes a valid and binding
obligation of the Company, enforceable against the Company in accordance with
its terms.

(e)           Valid Issuance of Purchased
Securities.

(i)            Purchased Securities.  The Purchased Securities will be, upon
payment therefor by the Purchasers in accordance with this Agreement, duly
authorized, validly issued, fully paid and non-assessable, and free from all
taxes, liens and charges with respect to the issue thereof.

(ii)           Compliance with Securities Laws.  Subject to the accuracy of the
representations made by the Purchasers in Section 4 hereof, the Purchased
Securities (assuming no change in applicable law and no unlawful distribution
of the Purchased Securities by the Purchasers) will be issued to the Purchasers
in compliance with applicable exemptions from (A) the registration and
prospectus delivery requirements of the Securities Act and (B) the registration
and qualification requirements of all applicable securities laws of the states of
the United States.

(f)            Governmental Consents.  No consent, approval, order or authorization
of, or registration, qualification, designation, declaration or filing with, or
notice to, any federal, state or local governmental authority or self
regulatory agency on the part of the Company is required in connection with the
issuance of the Purchased Securities to the Purchasers, or the consummation of
the other transactions contemplated by this Agreement, except (i) such filings
as have been made prior to the date hereof, (ii) the filing of a notification
form with the Nasdaq Global Market (“Nasdaq”) and (iii) such additional
post-Closing filings as may be required to comply with applicable state and
federal securities laws and the listing requirements of Nasdaq.

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(g)           Non-Contravention.  Assuming the accuracy of the representations
and warranties made by the Purchasers in Section 4 hereof, the execution,
delivery and performance of this Agreement by the Company, and the consummation
by the Company of the transactions contemplated hereby (including issuance of
the Purchased Securities), do not (i) contravene or conflict with the
Certificate of Incorporation (the “Certificate of Incorporation”) or Bylaws (the
“Bylaws”)
of the Company; (ii) constitute a violation in any material respect of any
provision of any federal, state, local or foreign law, rule, regulation, order
or decree applicable to the Company; or (iii) constitute a default or require
any consent under, give rise to any right of termination, cancellation or
acceleration of, or to a loss of any material benefit to which the Company is
entitled under, or result in the creation or imposition of any lien, claim or
encumbrance on any assets of the Company under, any material contract to which
the Company is a party or any material permit, license or similar right
relating to the Company or by which the Company may be bound or affected.

(h)           Litigation.  There is no action, suit, proceeding, claim,
arbitration or investigation (“Action”) pending or, to the Company’s knowledge,
threatened in writing:  (i) against the
Company, its activities, properties or assets, or any officer, director or
employee of the Company in connection with such officer’s, director’s or
employee’s relationship with, or actions taken on behalf of, the Company, or
(ii) that seeks to prevent, enjoin, alter, challenge or delay the transactions
contemplated by this Agreement (including the issuance of the Purchased
Securities).  The Company is not a party to
or subject to the provisions of, any order, writ, injunction, judgment or
decree of any court or government agency or instrumentality.  The Company has, in all material respects,
complied with all laws, regulations and orders applicable to its business,
including Pharmaceutical Laws (as defined below), and has all material permits
and licenses required thereby.  For
purposes of this Agreement, “Pharmaceutical
Law” shall mean any federal, state, local or foreign law, statute,
rule or regulation relating to the development, commercialization and sale of
pharmaceutical and biotechnology products and devices, including all applicable
regulations of the U.S. Food and Drug Administration and comparable applicable
foreign regulatory authorities.

(i)            Compliance with Law and Charter
Documents.  The Company is not in
violation or default of any provisions of the Certificate of Incorporation or
the Bylaws.  The Company has complied and
is currently in material compliance with all applicable statutes, laws, rules,
regulations and orders of the United States of America and all states thereof,
foreign countries and other governmental bodies and agencies having
jurisdiction over the Company’s business or properties.

(j)            SEC Documents.

(1)           Reports.  The Company has filed in a timely manner all
reports, schedules, forms, statements and other documents required to be filed
by it with the SEC pursuant to the reporting requirements of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations
promulgated thereunder.  The Company has
filed on the SEC’s EDGAR system, prior to the date hereof, its Annual Report on
Form 10-K for the fiscal year ended December 31, 2005 (the “Form 10-K”), its
quarterly reports on Form 10-Q for the fiscal quarters ended March 31, 2006 and
June 30, 2006 (the “Form
10-Qs”), its Proxy Statement for its Annual Meeting of
Stockholders held on May 16, 2006 (the “Proxy 

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Statement”), and any Current Report on
Form 8-K (“Form 8-Ks”)
required to be filed by the Company with the SEC for events occurring since February
1, 2006 and prior to the date of this Agreement (the Form 10-K, Form 10-Qs,
Proxy Statement and Form 8-Ks, together with all exhibits, schedules and other
attachments that are filed with such documents, are collectively referred to
herein as the “SEC
Documents”).  Each SEC
Document, as of its date (or, if amended or superseded by a filing prior to the
Closing Date, then on the date of such filing), did not contain any untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements made therein, in light of the circumstances under which
they were made, not misleading.  Each SEC
Document, as it may have been subsequently amended by filings made by the
Company with the SEC prior to the date hereof, complied in all material
respects with the requirements of the Exchange Act and the rules and
regulations of the SEC promulgated thereunder applicable to such SEC
Document.  As of their respective dates,
the financial statements of the Company included in the SEC Documents complied
as to form and substance in all material respects with applicable accounting
requirements and published rules and regulations of the Commission with respect
thereto. Such financial statements have been prepared in accordance with generally
accepted accounting principles, consistently applied in the United States (“GAAP”), during the periods
involved (except (i) as may be otherwise indicated in such financial statements
or the notes thereto, or (ii) in the case of unaudited interim statements, to
the extent they may exclude footnotes or may be condensed or summary
statements), correspond to the books and records of the Company and fairly
present in all material respects the financial position of the Company as of
the dates thereof and the results of operations and cash flows for the periods
then ended.  The Company is not aware of
any issues raised by the Commission with respect to any of the SEC
Documents.  The Company is not required
to file and will not be required to file any agreement, note, lease, mortgage,
deed or other instrument entered into prior to the date of this Agreement and
to which the Company is a party or by which the Company is bound which has not
been previously filed as an exhibit to the SEC Documents.  The Company has no reason to believe that its
independent auditors will withhold their consent to the inclusion of their
audit opinion concerning the Company’s financial statements that shall be
included in a Registration Statement pursuant to this Agreement.

(2)           Sarbanes-Oxley.  The Chief Executive Officer and the Chief
Financial Officer of the Company have signed, and the Company has furnished to
the SEC, all certifications required by Sections 302 and 906 of the
Sarbanes-Oxley Act of 2002.  Such
certifications contain no exceptions to the matters certified therein and have
not been modified or withdrawn; and neither the Company nor any of its officers
has received notice from any governmental entity questioning or challenging the
accuracy of such certifications.  The
Company is otherwise in compliance in all material respects with all applicable
effective provisions of the Sarbanes-Oxley Act of 2002 and the rules and
regulations issued thereunder by the SEC.

(k)           Absence of Certain Changes Since
the Balance Sheet Date.  Since June
30, 2006, the business and operations of the Company have been conducted in the
ordinary course consistent with past practice, and there has not been:

(i)            any declaration, setting aside or
payment of any dividend or other distribution of the assets of the Company with
respect to any shares of capital stock of the 

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Company or any repurchase, redemption or other
acquisition by the Company of any outstanding shares of the Company’s capital
stock;

(ii)           any damage, destruction or loss,
whether or not covered by insurance, except for such occurrences, individually
and collectively, that have not had, and would not reasonably be expected to
have, a Material Adverse Effect;

(iii)          any waiver by the Company of a
valuable right or of a material debt owed to it, except for such waivers,
individually and collectively, that have not had, and would not reasonably be
expected to have, a Material Adverse Effect;

(iv)          any material change or amendment to,
or any waiver of any material right under a material contract or arrangement by
which the Company or any of its assets or properties is bound or subject;

(v)           any change by the Company in its
accounting principles, methods or practices or in the manner in which it keeps
its accounting books and records, except any such change required by a change
in GAAP or by the SEC; or

(vi)          any other event or condition of any
character, except for such events and conditions that have not resulted, and
are not expected to result, either individually or collectively, in a Material
Adverse Effect.

(l)            Intellectual Property.  The Company owns or possesses sufficient
rights to use all patents, patent rights, inventions, trade secrets, know-how,
trademarks, service marks, trade names, copyrights or other intellectual
property (collectively, “Intellectual
Property”), which are necessary to conduct its businesses as
currently conducted, except where the failure to currently own or possess such
rights would not reasonably be expected to result, either individually or in
the aggregate, in a Material Adverse Effect. 
The Company has not received any written notice of, and has no actual
knowledge of, any infringement of or conflict with asserted rights of others
with respect to any Intellectual Property which, either individually or in the
aggregate, would reasonably be expected to have a Material Adverse Effect, and
to the Company’s knowledge, none of the patent rights owned or licensed by the
Company are unenforceable or invalid.

(m)          Registration Rights.  Except as described in Schedule 3(m),
the Company is not subject to any agreement providing any person or entity any
rights (including piggyback registration rights) to have any securities of the
Company included in the Registration Statement (as defined in Section
5(a)(ii)).

(n)           Title to Property and Assets.  The properties and assets of the Company are
owned by the Company free and clear of all mortgages, deeds of trust, liens,
charges, encumbrances and security interests except for (i) statutory liens for
the payment of current taxes that are not yet delinquent and (ii) liens,
encumbrances and security interests that arise in the ordinary course of
business and do not materially detract from the value of the properties and
assets of the Company.  With respect to
the property and assets it leases, the Company is in compliance with such
leases in all material respects.

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(o)           Taxes.  The Company has filed or has obtained
currently effective extensions with respect to all federal, state, county,
local and foreign tax returns which are required to be filed by it, such
returns are complete and accurate in all material respects and all taxes shown
thereon to be due have been timely paid with exceptions not material to the
Company.  No material controversy with
respect to taxes of any type with respect to the Company is pending or, to the
Company’s knowledge, threatened.  The Company
has withheld or collected from each payment made to its employees the amount of
all taxes required to be withheld or collected therefrom and has paid all such
amounts to the appropriate taxing authorities when due (including, but not
limited to, federal income taxes, Federal Insurance Contribution Act taxes and
Federal Unemployment Tax Act taxes).  The
Company has no knowledge of any material liability of any tax to be imposed
upon the income, properties or assets of the Company as of the Closing that is
not adequately provided for.

(p)           Insurance.  The Company maintains insurance of the types
and in the amounts that the Company reasonably believes is prudent and adequate
for its business, all of which insurance is in full force and effect in all
material respects.

(q)           Labor Relations.  No material labor dispute exists or, to the
knowledge of the Company, is imminent with respect to any of the employees of
the Company.

(r)            Internal Accounting Controls.  The Company maintains a system of internal
accounting controls sufficient to provide reasonable assurance that (i)
transactions are executed in accordance with management’s general or specific
authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain
asset accountability, (iii) access to assets is permitted only in accordance
with management’s general or specific authorization, and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

(s)           Transactions With Officers and
Directors.  None of the officers or
directors of the Company has entered into any transaction with the Company that
would be required to be disclosed pursuant to Item 404(a), (b) or (c) of
Regulation S-K of the SEC.

(t)            General Solicitation.  Neither the Company nor any other person or
entity authorized by the Company to act on its behalf has engaged in a general
solicitation or general advertising (within the meaning of Regulation D of the
Securities Act) of investors with respect to offers or sales of the Purchased
Securities.

(u)           Registration Statement Matters.  Assuming the completion and timely delivery
of the Registration Statement/Suitability Questionnaire (attached hereto as
Appendix II) (the “Registration
Statement Questionnaire”) by each Purchaser to the Company, the
Company is not aware of any facts or circumstances that would prohibit or delay
the preparation and filing of a registration statement with respect to the
Registrable Shares (as defined below).

(v)           No Integrated Offering.  Neither the Company, nor any affiliate of the
Company, nor any person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to
buy any security, under circumstances that 

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would cause this offering of the Purchased Securities
to be integrated with prior offerings by the Company for purposes of the
Securities Act, or any applicable stockholder approval provisions, including,
without limitation, under the rules and regulations of the Nasdaq, nor will the
Company take any action or steps that would cause the offering of the Purchased
Shares to be integrated with other offerings.

(w)          Nasdaq Listing Matters.  The Common Stock of the Company is quoted on
Nasdaq under the ticker symbol “IOMI.” 
The Company has not received any notice that it is not in compliance
with the listing or maintenance requirements of Nasdaq. The issuance and sale
of the Purchased Securities under this Agreement does not contravene the rules
and regulations of Nasdaq.

(x)            Investment Company.  The Company is not now, and after the sale of
the Purchased Securities under this Agreement and the application of the net
proceeds from the sale of the Purchased Securities described in Section 1(c)
herein will not be, an “investment company” within the meaning of the
Investment Company Act of 1940, as amended.

(y)           Environmental
Matters.

(i)            The Company has
complied in all material respects with all applicable Environmental Laws (as
defined below).  There is no pending or,
to the Company’s knowledge, threatened civil or criminal litigation, written
notice of violation, formal administrative proceeding, or investigation,
inquiry or information request by any Governmental Entity, relating to any
Environmental Law involving the Company. 
For purposes of this Agreement, “Environmental
Law” means any federal, state, local or foreign law, statute, rule
or regulation or the common law relating to the environment or occupational
health and safety, including any statute, regulation, administrative decision
or order pertaining to (A) treatment, storage, disposal, generation and
transportation of industrial, toxic or hazardous materials or substances or
solid or hazardous waste; (B) air, water and noise pollution; (C) groundwater
and soil contamination; (D) the release or threatened release into the
environment of industrial, toxic or hazardous materials or substances, or solid
or hazardous waste, including emissions, discharges, injections, spills,
escapes or dumping of pollutants, contaminants or chemicals; (E) the protection
of wild life, marine life and wetlands, including all endangered and threatened
species; (F) storage tanks, vessels, containers, abandoned or discarded barrels
and other closed receptacles; (G) health and safety of employees and other
persons; or (H) manufacturing, processing, using, distributing, treating,
storing, disposing, transporting or handling of materials regulated under any
law as pollutants, contaminants, toxic or hazardous materials or substances, or
oil or petroleum products or solid or hazardous waste.  As used above, the terms “release” and “environment”
shall have the meaning set forth in the federal Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended (“CERCLA”).

(ii)           The Company does
not have any material liabilities or material obligations arising from the
release of any Materials of Environmental Concern (as defined below) into the
environment.  For purposes of this
Agreement, “Materials of Environmental
Concern” shall mean any chemicals, pollutants or contaminants,
hazardous substances (as such term is defined under CERCLA), solid wastes and
hazardous wastes (as such terms are defined 

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under the Resource
Conservation and Recovery Act), toxic materials, oil or petroleum and petroleum
products or any other material subject to regulation under any Environmental
Law.

(iii)          The Company is not
a party to or bound by any court order, administrative order, consent order or
other agreement between the Company and any Governmental Entity entered into in
connection with any legal obligation or liability arising under any
Environmental Law.

(iv)          The Company is not
aware of any material environmental liability of any solid or hazardous waste
transporter or treatment, storage or disposal facility that has been used by
the Company.

(z)            United States Real Property Holding
Company.

(i)            The Company is not now and has never
been a “United States real property holding corporation,” as defined in
§897(c)(2) of the Internal Revenue Code of 1986, as amended (the “Code”), and Treasury
Regulation §1.897-2(b), and the Company has filed with the Internal Revenue
Service all statements, if any, with its United States income tax returns,
which are required under Treasury Regulation §1.897-2(h).

(ii)           The Company hereby agrees to provide
prompt notice to each Purchaser following any “determination date” (as defined
in Treasury Regulation Section 1.897-2(c)(1)) on which the Company becomes a
United States real property holding corporation.  In addition, upon a written request by a
Purchaser, the Company shall provide such Purchaser with a written statement
informing the Purchaser whether the Purchaser’s interest in the Company
constitutes a United States real property interest.  The Company’s determination shall comply with
the requirements of Treasury Regulation Section 1.897-2(h)(1) or any successor
regulation, and the Company shall provide timely notice to the Internal Revenue
Service, in accordance with and to the extent required by Treasury Regulation
Section 1.897-2(h)(2) or any successor regulation, that such statement has been
made.  The Company’s written statement to
the Purchaser shall be delivered to the Purchaser within ten (10) business days
of the Purchaser’s written request therefor.

(aa)         Benefit Plans.  Neither the Company nor any Plan Affiliate
(as defined below) has maintained, sponsored, adopted, made contributions to or
obligated itself to make contributions to or to pay any benefits or grant
rights under or with respect to any material Employee Benefit Plan (as defined
below), whether written, oral, voluntary or pursuant to a collective bargaining
agreement or law, under which the Company has a material unfunded liability,
nor has the Company otherwise failed to meet any of its material obligations
under any employee benefit plan.  As used
herein, “Plan Affiliate” means any
person or entity with which the Company constitutes all or part of a controlled
group of corporations, a group of trades or businesses under common control or
an affiliated service group, as each of those terms are defined in Section 414
of the Code.  As used herein, “Employee Benefit Plan” means, collectively,
each bonus, deferred compensation, incentive compensation, stock purchase,
stock option, severance or termination pay, health or other medical, life,
disability or other insurance, supplemental unemployment benefit, profit
sharing, pension, retirement, supplemental retirement or other employee benefit
plan, program, agreement or arrangement, whether written or 

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unwritten, formal or informal, maintained or
contributed to or required to be contributed to by any person for the benefit
of any employee or former employee of the Company or its affiliates or their
dependants or beneficiaries, as well as the compensation practices and policies
regarding vacations, sick leaves, leaves of absence and all perquisites of
employment other than those mandated by any legal requirement and shall include
to the extent applicable to the Company, without limitation, “Employee Pension Benefit Plans” (as defined in
Section 3(2) of ERISA (as defined below), “Employee Welfare Benefit Plan” (as
defined in Section 3(1) of ERISA) and “Multi-employer Plan” (as defined in
section 3(37) of ERISA)), but shall exclude any such arrangements or
perquisites that do not exceed, individually or in the aggregate, $300 per
month per any particular person.  As used
herein, “ERISA” means the Employee
Retirement Income Security Act of 1974 and any law of any foreign jurisdiction
of similar import.  The Company has made
all “matching” contributions required pursuant to the terms of the Company’s
401(k) plan or otherwise promised to employees (in writing or orally).

(bb)         Foreign Corrupt Practices Act; Etc.  The Company and its respective officers,
directors, employees and agents are in compliance with and have not violated
the Foreign Corrupt Practices Act of 1977, as amended, or any rules and
regulations thereunder, or any similar laws of any foreign jurisdiction.  To the Company’s knowledge, no governmental
or political official in any country is or has been employed by, or acted as a
consultant to or held any material beneficial ownership interest in the
Company.  The Company and its respective
officers, directors, employees and agents are in compliance with and have not
violated the U.S. money laundering laws or regulations, the U.S. Bank Secrecy
Act, as amended by the USA Patriot Act of 2001 (including any recordkeeping or
reporting requirements thereunder), or the anti-money laundering laws or
regulations of any jurisdiction.

(cc)         Brokers.  The Company has not engaged any brokers,
finders or agents, or incurred, or will incur, directly or indirectly, any
liability for brokerage or finder’s fees or agents’ commissions or any similar
charges in connection with this Agreement and the transactions contemplated
hereby.

(dd)         Internal Accounting Controls.
The Company maintains a system of accounting controls sufficient to provide
reasonable assurances that: (i) transactions are executed in accordance with
management’s general or specific authorization; (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles as applied in the United States and to
maintain accountability for assets; (iii) access to assets is permitted only in
accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.

4.             REPRESENTATIONS, WARRANTIES AND CERTAIN AGREEMENTS OF THE PURCHASERS.  Each Purchaser hereby represents and warrants
to the Company, severally and not jointly, and agrees that:

(a)           Organization Good Standing and
Qualification.  The Purchaser has all
corporate, membership or partnership power and authority required to enter into
this Agreement and the other agreements, instruments and documents contemplated
hereby, and to consummate the transactions contemplated hereby and thereby.

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(b)           Authorization.  The execution of this Agreement has been duly
authorized by all necessary corporate, membership or partnership action on the
part of the Purchaser.  This Agreement
constitutes the Purchaser’s legal, valid and binding obligation, enforceable in
accordance with its terms, except (i) as may be limited by (A) applicable
bankruptcy, insolvency, reorganization or other laws of general application
relating to or affecting the enforcement of creditors’ rights generally and (B)
the effect of rules of law governing the availability of equitable remedies and
(ii) as rights to indemnity or contribution may be limited under federal or
state securities laws or by principles of public policy thereunder.

(c)           Litigation.  There is no action pending, or to its
knowledge threatened, to which such Purchaser is a party that is reasonably
likely to prevent, enjoin, alter or delay the transactions contemplated by this
Agreement.

(d)           Purchase for Own Account.  The Purchased Securities are being acquired
for investment for the Purchaser’s own account, not as a nominee or agent, and
not with a view to the public resale or distribution thereof within the meaning
of the Securities Act, without prejudice, however, to such Purchaser’s right at
all times to sell or otherwise dispose of all or any part of such securities in
compliance with applicable federal and state securities laws and as otherwise
contemplated by this Agreement.  The
Purchaser also represents that it has not been formed for the specific purpose
of acquiring the Purchased Securities.

(e)           Investment Experience.  The Purchaser understands that the purchase
of the Purchased Securities involves substantial risk.  The Purchaser has experience as an investor
in securities of companies and acknowledges that it can bear the economic risk
of its investment in the Purchased Securities and has such knowledge and
experience in financial or business matters that it is capable of evaluating
the merits and risks of this investment in the Purchased Securities and
protecting its own interests in connection with this investment.

(f)            Accredited Investor Status.  The Purchaser is an “accredited investor”
within the meaning of Regulation D promulgated under the Securities Act.

(g)           Reliance Upon Purchaser’s
Representations.  The Purchaser
understands that the issuance and sale of the Purchased Securities to it will
not be registered under the Securities Act on the ground that such issuance and
sale will be exempt from registration under the Securities Act pursuant to
Section 4(2) thereof, and that the Company’s reliance on such exemption is
based on each Purchaser’s representations set forth herein.

(h)           Receipt of Information.  The Purchaser has had an opportunity to ask
questions and receive answers from the Company regarding the terms and
conditions of the issuance and sale of the Purchased Securities and the
business, properties, prospects and financial condition of the Company and to
obtain any additional information requested and has received and considered all
information it deems relevant to make an informed decision to purchase the
Purchased Securities.  Neither such
inquiries nor any other investigation conducted by or on behalf of such
Purchaser or its representatives or counsel shall modify, amend or affect such
Purchaser’s right to rely on the truth, accuracy and completeness of such
information and the Company’s representations and warranties contained in this
Agreement.

 11
 

 

(i)            Restricted Securities.  The Purchaser understands that the Purchased
Securities have not been registered under the Securities Act and will not sell,
offer to sell, assign, pledge, hypothecate or otherwise transfer any of the
Purchased Securities unless (i) pursuant to an effective registration statement
under the Securities Act, (ii) such holder provides the Company with evidence
reasonably satisfactory to the Company, in form and substance reasonably
acceptable to the Company and its counsel, to the effect that a sale,
assignment or transfer of the Purchased Securities may be made without
registration under the Securities Act and the transferee agrees to be bound by
the terms and conditions of this Agreement, or (iii) such holder provides the
Company with reasonable assurances (in the form of seller and broker
representation letters) that the Purchased Shares can be sold pursuant to Rule
144 promulgated under the Securities Act (“Rule 144”).  Upon satisfaction of the foregoing, the
Purchaser may transfer the Purchased Securities in accordance with the Plan of
Distribution attached as Exhibit B hereto.

(j)            Legends.  The Purchaser agrees that the Certificates
for the Purchased Securities shall bear the following legend:

“THESE SECURITIES
HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS AS EVIDENCED BY EVIDENCE REASONABLY ACCEPTABLE TO THE COMPANY TO SUCH
EFFECT, THE FORM AND SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.”

The Company shall cause its counsel to issue a legal opinion to the
Company’s transfer agent promptly after the date on which the Registration
Statement is declared effective (the “Effective Date”), if required by the Company’s
transfer agent, to effect the removal of the legend hereunder upon receipt of a
letter from the transferor that it has complied with the prospectus delivery
requirements under the Securities Act.

Each Purchaser, severally and not jointly with the other Purchasers,
agrees that the removal of the restrictive legend from certificates
representing securities as set forth in this Section 4(j) is predicated upon
the Purchaser’s warranty that the Purchaser will sell any securities pursuant
to the registration requirements of the Securities Act, including any
applicable prospectus delivery requirements.

In addition, the Purchaser agrees that the Company may place stop
transfer orders with its transfer agent with respect to such Certificates in
order to implement the restrictions on transfer 

 12
 

 

set forth in this Agreement.  The appropriate portion of the legend and the
stop transfer orders will be removed promptly upon delivery to the Company of
such satisfactory evidence as reasonably may be required by the Company that
such legend or stop orders are not required to ensure compliance with the
Securities Act.

(k)           Questionnaires.  The Purchaser has completed or caused to be
completed the Stock Certificate Questionnaire and the Registration Statement
Questionnaire for use in preparation of the Registration Statement (as defined
in Section 5(a)(ii) below), and the answers to such questionnaires are true and
correct as of the date of this Agreement in all material respects; provided, that the Purchasers shall be
entitled to update such information by providing written notice thereof to the
Company at least 48 hours before the effective date of the Registration
Statement.

(l)            Restrictions on Short Sales.  The Purchaser represents, warrants and
covenants that Purchaser has not and will not, directly or indirectly, during
the period beginning on the date on which the Company first contacted such
Purchaser regarding the transactions contemplated by this Agreement (and
involving the Company) and ending on the Closing Date, engage in (i) any “short
sales” (as such term is defined in Rule 3b-3 promulgated under the Exchange
Act) of the Common Stock, including, without limitation, the maintaining of any
short position with respect to, establishing or maintaining a “put equivalent
position” (within the meaning of Rule 16a-1(h) under the Exchange Act)
with respect to, entering into any swap, derivative transaction or other
similar arrangement (whether any such transaction is to be settled by delivery
of Common Stock, other securities, cash or other consideration) that transfers
to another, in whole or in part, any economic consequences or ownership, or
otherwise disposes of, any of the Purchased Securities by the Purchaser or (ii)
any hedging transaction which establishes a net short position with respect to
the Purchased Securities (clauses (i) and (ii) together, a “Short Sale”); except
for (1) Short Sales by the Purchaser which were, prior to the date on which
such Purchaser was first contacted by the Company regarding the transactions
contemplated by this Agreement, a market maker for the Common Stock, provided
that such Short Sales are in the ordinary course of business of such Purchaser
and are in compliance with the Securities Act, the rules and regulations of the
Securities Act and such other securities laws as may be applicable, (2) Short
Sales by the Purchaser which by virtue of the procedures of such Purchaser are
made without knowledge of the transactions contemplated by this Agreement or
(3) Short Sales by the Purchaser to the extent that such Purchaser is acting in
the capacity of a broker-dealer executing unsolicited third-party transactions.

5.             FORM D FILING; REGISTRATION;
COMPLIANCE WITH THE SECURITIES ACT.

(a)           Form D Filing; Registration of the
Purchased Securities.  The Company
hereby agrees that it shall:

(i)            file in a timely manner a Form D
relating to the sale of the Purchased Securities under this Agreement, pursuant
to Regulation D promulgated under the Securities Act;

 13

 

 

(ii)           prepare and file with the SEC as soon
as practicable and in no event later than thirty-five (35) days following the
Closing, a registration statement (the “Registration Statement”), to enable the
resale of the Purchased Securities (together with any shares of Common Stock
issued as a dividend or other distribution with respect to, or in exchange for,
or in replacement of, the Purchased Securities, the “Registrable Shares”)
by the Purchasers from time to time and use commercially reasonable efforts to cause
such Registration Statement to be declared effective, within ninety (90) days
following the Closing Date or, in the event of a review of the Registration
Statement by the SEC, within one hundred twenty (120) days following the
Closing Date, and, subject to exceptions provided herein, to remain
continuously effective until the earlier of (A) the fourth anniversary of the
effective date of the Registration Statement, (B) the date on which all
Registrable Shares purchased by the Purchasers pursuant to this Agreement have
been sold thereunder, or (C) the date on which the Registrable Shares can be
sold pursuant to Rule 144(k) promulgated under the Securities Act (the “Registration Period”).  In the event that the Company does not meet
the requirements for the use of Form S-3, the Company shall use such other form
as is available for such a registration, and shall convert such other form to
Form S-3, or file a replacement registration statement on Form S-3, promptly
after the first date on which it meets such requirements;

(iii)          prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to the
Registration Statement and the Prospectus (as defined below) used in connection
therewith as may be necessary to keep the Registration Statement effective at
all times until the end of the Registration Period;

(iv)          furnish to each Purchaser with respect
to the Registrable Shares registered under the Registration Statement
sufficient copies of each final Prospectus (as defined below, and including any
supplement or amendment thereto) in which such Purchaser is listed as a selling
securityholder in order to facilitate the public sale or other disposition of
all or any of the Registrable Shares by the Purchasers;

(v)           promptly notify each Purchaser named
as a selling securityholder when the Registration Statement has been declared
effective;

(vi)          promptly notify the Purchasers in
writing of the existence of any fact or the happening of any event, during the
Registration Period (but not as to the substance of any such fact or event),
that makes any statement of a material fact made in the Registration Statement,
the Prospectus, any amendment or supplement thereto, or any document
incorporated by reference therein untrue, or that requires the making of any
additions to or changes in the Registration Statement or the Prospectus in
order to make the statements therein not misleading (provided, however, that no notice by the Company shall be
required pursuant to this subsection (vi) in the event that the Company either
contemporaneously files a prospectus supplement to update the Prospectus or a
Form 8-K or other appropriate Exchange Act report that is incorporated by
reference into the Registration Statement, which, in either case, contains the
requisite information with respect to such material event that results in such
Registration Statement no longer containing any such untrue or misleading
statements);

 14
 

 

 

(vii)         furnish to each Purchaser from the date
of this Agreement until the end of the Registration Period, copies of its
periodic reports filed with the SEC pursuant to the Exchange Act and the rules
and regulations promulgated thereunder;

(viii)        bear all expenses in connection with the
procedures described in paragraphs (i) through (viii) of this Section 5(a) and
the registration of the Registrable Shares pursuant to the Registration
Statement other than fees and expenses, if any, of legal counsel or other
advisers to the Purchasers (other than Legal Counsel (as defined below), in
which case such fees and expenses shall be limited to $15,000 in the aggregate
in connection with any registration which is not a Demand Registration (as
defined below)) or underwriting discounts, brokerage fees and commissions
incurred by the Purchasers, if any.

(b)           It shall be a condition
precedent to the obligations of the Company to take any action pursuant to this
Section 5(a) with respect to Registrable Shares held by a Purchaser that such
Purchaser shall timely furnish to the Company a completed Registration Statement
Questionnaire on or before the Closing Date and such other written information
regarding itself, the Registrable Shares to be sold by such Purchaser, and the
intended method of disposition of the Registrable Shares as shall be required
to effect the registration of the Registrable Shares.  The Purchasers shall update such information
as and when necessary by written notice to the Company.

(c)           If for any reason prior to the
expiration of the Registration Period a Registration Statement required to be
filed pursuant to this Section 5(a) ceases to be effective or fails to cover
all of the Purchased Shares required to be covered by such Registration
Statement, any Purchasers may subsequently demand registration pursuant to the
terms of and within the time frames set forth in Section 5(a)(ii) above by
providing written demand registration notice to the Company (including a
registration on Form S-1 to the extent the Company is not eligible to use any
short form registration in connection with such demand, a “Demand Registration”).  Upon receipt of such demand registration
notice, the Company shall comply with its registration obligations as defined
in Sections 5(a)(ii)-(viii) above.  The
filing deadline and effectiveness deadline with respect to any Demand Registration
will be those dates which are forty-five (45) days and one hundred thirty five
(135) days after the date that the Demand Registration notice is delivered to
the Company.

(d)           Liquidated Damages.

(i)            Delay in Filing or Effectiveness
of Registration Statement.  In the
event that the Registration Statement is not (A) filed with the SEC within thirty-five (35) days following the
Closing Date or (B) declared effective within ninety (90) days following the Closing Date or, in the
event of a review of the Registration Statement by the SEC, within one hundred
twenty (120) days following the
Closing Date (a “Registration
Delay”), the Company shall pay to each Purchaser who has
provided the documents contemplated by Section 4(k) liquidated damages at a rate
equal to (i) 0.5% of the total purchase price of the Purchased Securities
purchased by such Purchaser pursuant to this Agreement for the first fourteen
(14) days a Registration Delay has occurred, (ii) 1.0% of the total purchase
price of the Purchased Securities purchased by such Purchaser pursuant to this
Agreement for the second fourteen (14) days a Registration Delay has occurred,
and (iii) 2.5% of the total purchase price of the

 15
 

 

 

Purchased Securities purchased by such Purchaser
pursuant to this Agreement for every successive thirty (30) day period that
occurs thereafter.  Notwithstanding the
foregoing provisions, in no event shall the Company be obligated to pay such
liquidated damages (a) to more than one Purchaser in respect of the same
Purchased Securities for the same period of time or (b) for each of the first
two (2) years following the Closing Date, in an annual aggregate amount that
exceeds 18% of the purchase price paid by the Purchaser for the Shares provided
that the penalty in the second year shall reset at the one (1) year anniversary
of the date the Registration Delay occurred. 
Such liquidated damages shall be payable within ten (10) days of the end
of each one (1) month anniversary of the applicable filing or effectiveness
deadline set forth in this section 5(d)(i). 
Such liquidated damages shall be the Purchaser’s sole monetary remedy
for such delay (unless such liquidated damages are disallowed, reduced or not
permitted by applicable law).  Nothing
shall preclude a Purchaser from pursuing or obtaining specific performance or
other equitable relief with respect to this Agreement in accordance with
applicable law.  The parties agree that the liquidated damages provided for above constitute
a reasonable estimate of the damages that may be incurred by holders of
Purchased Shares by reason of the failure of the Registration Statement to be
filed or declared effective or available for effecting resales of Purchased
Shares in accordance with the provisions hereof.

(ii)           Lapse in Effectiveness of Registration
Statement.  In the event that the
Registration Statement is filed and declared effective but, during the
Registration Period, shall thereafter cease to be effective or useable or the
prospectus included in the Registration Statement (the “Prospectus”, as
amended or supplemented by any prospectus supplement and by all other
amendments thereto and all material incorporated by reference in such
Prospectus), other than as permitted hereby, ceases to be usable, in either
case, in connection with resales of Registrable Shares, without such lapse
being cured within ten (10) days (the “Cure Period”) by a post-effective amendment
to the Registration Statement, a supplement to the Prospectus, a report filed
with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act
that cures such lapse, or by such other lawful means as may be available to the
Company, then the Company shall pay to each Purchaser then listed as a selling
stockholder in the Prospectus, liquidated damages, for the period from and
including the first day following the expiration of the Cure Period until, but
excluding, the earlier of (1) the date on which such failure is cured and (2)
the date on which the Registration Period expires, at a rate equal to 2.5% per
month (pro rata on a thirty (30) day basis) of the total purchase price of the
Purchased Shares purchased by such Purchaser pursuant to this Agreement that
are immediately prior to such lapse covered by the Registration Statement.  Notwithstanding the foregoing provisions, in
no event shall the Company be obligated to pay such liquidated damages (a) to
more than one Purchaser in respect of the same Purchased Securities for the
same period of time or (b) for each of the first two (2) years following the
Closing Date, in an annual aggregate amount that exceeds 18% of the purchase
price paid by the Purchaser for the Shares provided that the penalty in the
second year shall reset at the one (1) year anniversary of the date the
Registration Delay occurred.  Such
liquidated damages shall be payable within ten (10) days of the end of each one
(1) month anniversary of the expiration of the Cure Period.  Such liquidated damages shall be the
Purchaser’s sole monetary remedy for such lapse (unless such liquidated damages
are disallowed, reduced or not permitted by applicable law).  Nothing shall preclude a Purchaser from
pursuing or obtaining specific performance or other equitable relief with
respect to this Agreement in accordance with applicable law.  The parties
agree that the liquidated damages provided for above constitute a reasonable
estimate of the damages that may be incurred by

 16
 

 

 

holders of Purchased Shares in the
circumstances set forth above in accordance with the provisions hereof.

(e)           Transfer of Registrable Shares After
Registration; Suspension.

(i)            Each Purchaser agrees that it will
not offer to sell or make any sale, assignment, pledge, hypothecation or other
transfer with respect to the Registrable Shares that would constitute a sale
within the meaning of the Securities Act except pursuant to (1) the
Registration Statement, (2) Rule 144 of the Securities Act or (3) another
exemption from registration under the Securities Act, and that it will promptly
notify the Company of any changes in the information set forth in the
Registration Statement after it is prepared regarding the Purchaser or its plan
of distribution to the extent required by applicable law.

(ii)           In the event of:  (A) any request by the SEC or any other
federal or state governmental authority during the period of effectiveness of
the Registration Statement for amendments or supplements to a Registration
Statement or related Prospectus or for additional information, (B) the issuance
by the SEC or any other federal or state governmental authority of any stop
order suspending the effectiveness of a Registration Statement or the
initiation of any proceedings for that purpose, (C) the receipt by the Company
of any notification with respect to the suspension of the qualification or
exemption from qualification of any of the Registrable Shares for sale in any
jurisdiction or the initiation of any proceeding for such purpose, or (D) any
event or circumstance which necessitates the making of any changes in the
Registration Statement or Prospectus, or any document incorporated or deemed to
be incorporated therein by reference, so that, in the case of the Registration
Statement, it will not contain any untrue statement of a material fact or any
omission to state a material fact required to be stated therein or necessary to
make the statements therein not misleading, and that in the case of the
Prospectus, it will not contain any untrue statement of a material fact or any
omission to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading, then the Company shall deliver a certificate in
writing to the Purchasers (the “Suspension Notice”) to the effect of the foregoing
(which notice will not disclose the content of any material non-public
information and will indicate the date of the beginning and end of the intended
period of suspension, if known), and, upon receipt of such Suspension Notice,
the Purchasers will discontinue disposition of Registrable Shares covered by
the Registration Statement or Prospectus (a “Suspension”) until the Purchasers’
receipt of copies of a supplemented or amended Prospectus prepared and filed by
the Company, or until the Purchasers are advised in writing by the Company that
the current Prospectus may be used, and have received copies of any additional
or supplemental filings that are incorporated or deemed incorporated by
reference in any such prospectus.  In the
event of any Suspension, the Company will use its commercially reasonable best
efforts to cause the use of the Prospectus so suspended to be resumed as soon
as possible after delivery of a Suspension Notice to the Purchasers.

(iii)          The Company will cooperate to
facilitate the timely preparation and delivery of certificates (unless
otherwise required by applicable law) representing Registrable Shares sold.

 17
 

 

 

(f)            Indemnification.  For the purpose of this Section 5(f), the
term “Registration
Statement” shall include any preliminary or final Prospectus,
exhibit, supplement or amendment included in or relating to the Registration
Statement referred to in Section 5(a).

(i)            Indemnification by the
Company.  To the fullest extent permitted by law, the Company will, and hereby does,
indemnify, hold harmless and defend each Purchaser, the directors, officers,
partners, employees, agents, representatives of, and each Person, if any, who
controls any Purchaser within the meaning of the Securities Act or the Exchange
Act (each, an “Purchaser Indemnified Person”),
against any losses, claims, damages, liabilities, judgments, fines, penalties,
charges, costs, reasonable attorneys’ fees, amounts paid in settlement or
reasonable expenses, joint or several, (collectively, “Claims”) incurred in investigating, preparing or
defending any action, claim, suit, inquiry, proceeding, investigation or appeal
taken from the foregoing by or before any court or governmental, administrative
or other regulatory agency, body or the SEC, whether pending or threatened,
whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”), to
which any of them may become subject insofar as such Claims (or actions or
proceedings, whether commenced or threatened, in respect thereof) arise out of
or are based upon:

(1)           any untrue statement or alleged
untrue statement of a material fact in a Registration Statement or any
post-effective amendment thereto or in any filing made in connection with the
qualification of the offering under the securities or other “blue sky” laws of
any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the
omission or alleged omission to state a material fact required to be stated
therein or necessary to make the statements therein not misleading;

(2)           any untrue statement or alleged
untrue statement of a material fact contained in any preliminary prospectus if
used prior to the effective date of such Registration Statement, or contained
in the final prospectus (as amended or supplemented, if the Company files any
amendment thereof or supplement thereto with the SEC) or the omission or
alleged omission to state therein any material fact necessary to make the
statements made therein, in light of the circumstances under which the
statements therein were made, not misleading;

(3)           any violation or alleged violation by
the Company of the Securities Act, the Exchange Act, any other securities law,
including, without limitation, any state securities law, or any rule or
regulation thereunder relating to the offer or sale of the Purchased Shares
pursuant to a Registration Statement (the
matters in the foregoing clauses (1) through (3) being, collectively, “Violations”).

Subject to subsection (d)(iii) below, the Company
shall reimburse the Purchasers and each such controlling person, promptly as
such reasonable expenses are incurred and are due and payable, for any legal
fees or disbursements or other reasonable expenses incurred by them in
connection with investigating or defending any such Claim.  Notwithstanding anything to the contrary
contained herein, the indemnification agreement contained in this subsection
(d)(i): (A) shall not apply to a Claim by a Purchaser Indemnified Person
arising out of or based upon a Violation which occurs in reliance upon and in
conformity with information furnished in writing to the Company by such
Purchaser Indemnified Person expressly for use in connection with the
preparation of the Registration Statement or any such amendment thereof or
supplement thereto,

 18
 

 

 

if such prospectus was timely made
available by the Company pursuant to this Agreement; (ii) shall not be
available to the extent such Claim is based on a failure of the Purchaser to
deliver or to cause to be delivered the prospectus made available by the
Company, (1) if such prospectus was timely made available by the Company
pursuant to this Agreement, and (2) from and after the effectiveness of the
Registration Statement, the Company had notified the Purchaser that such
prospectus was required to be delivered by the Purchaser as a result of the
Company’s failure to comply with the conditions of Rule 172(c) under the
Securities Act; and (iii) shall not apply to amounts paid in settlement of any
Claim,  if such settlement is effected
without the prior written consent of the Company, which consent shall not be
unreasonably withheld.  Such indemnity
shall remain in full force and effect regardless of any investigation made by
or on behalf of the Purchaser Indemnified Person and shall survive the transfer
of the Registrable Securities by the Purchasers in accordance with this
Agreement.

(ii)           Indemnification by the Purchaser.    In connection with any Registration
Statement in which a Purchaser is participating, each such Purchaser agrees to
severally and not jointly indemnify, hold harmless and defend, to the same
extent and in the same manner as is set forth in subsection subsection (d)(i)
above, the Company, each of its directors, each of its officers who signs the
Registration Statement, each of the Company’s agents or representatives, and
each Person, if any, who controls the Company within the meaning of the
Securities Act or the Exchange Act (each an “Company Indemnified Party”), against any Claim or
Indemnified Damages to which any of them may become subject, under the
Securities Act, the Exchange Act or otherwise, insofar as such Claim or
Indemnified Damages arise out of or are based upon any Violation, in each case
to the extent, and only to the extent, that such Violation occurs in reliance
upon and in conformity with written information furnished to the Company by
such Purchaser specifically for use in connection with such Registration
Statement; and, subject to subsection (d)(iv) below, such Purchaser will
reimburse any legal or other reasonable expenses incurred by them in connection
with investigating or defending any such Claim; provided, however, that the
indemnity agreement contained in this subsection (d)(ii) and the agreement with
respect to contribution set forth below shall not apply to amounts paid in
settlement of any Claim if such settlement is effected without the prior
written consent of such Purchaser, which consent shall not be unreasonably
withheld; provided, further, however, that the Purchaser shall be liable under
this subsection (d)(ii) for only that amount of a Claim or Indemnified Damages
as does not exceed the net proceeds to such Investor as a result of the sale of
the Purchased Shares pursuant to the Registration Statement giving rise to such
liability.  Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf
of such Company Indemnified Party and shall survive the transfer of the
Registrable Securities by the Investors pursuant to this Agreement.  Notwithstanding anything to the contrary
contained herein, the indemnification agreement contained in this subsection
(d)(ii) with respect to any prospectus shall not inure to the benefit of any
Company Indemnified Party if the untrue statement or omission of material fact
contained in the prospectus was corrected on a timely basis in the prospectus,
as then amended or supplemented.

(iii)          Indemnification Procedure.  Promptly after receipt by a Purchaser
Indemnified Person or Company Indemnified Party under this subsection (d) of
notice of the commencement of any action or proceeding (including any
governmental action or proceeding) involving a Claim, such Purchaser
Indemnified Person or Company Indemnified Party shall, if a Claim in respect
thereof is to be made against any indemnifying party under this subsection (d),

 19
 

 

 

deliver to the indemnifying party a
written notice of the commencement thereof, and the indemnifying party shall
have the right to participate in, and, to the extent the indemnifying party so
desires, jointly with any other indemnifying party similarly noticed, to assume
control of the defense thereof with counsel mutually satisfactory to the
indemnifying party and the Purchaser Indemnified Person or the Company
Indemnified Party, as the case may be; provided, however, that a Purchaser
Indemnified Person or Company Indemnified Party shall have the right to retain
its own counsel with the fees and expenses of not more than one counsel for
such Purchaser Indemnified Person or Company Indemnified Party to be paid by
the indemnifying party, if, in the reasonable opinion of counsel retained by
the indemnifying party, the representation by such counsel of the Purchaser
Indemnified Person or Company Indemnified Party and the indemnifying party
would be inappropriate due to actual or potential conflicting interests between
such Purchaser Indemnified Person or Company Indemnified Party and any other
party represented by such counsel in such proceeding.  In the case of a Purchaser Indemnified
Person, legal counsel referred to in the immediately preceding sentence (the “Purchaser Legal Counsel”)
shall be selected by the Purchasers holding a majority in interest of the
Purchased Shares included in the Registration Statement to which the Claim
relates.  The Purchaser Legal Counsel
shall not represent any Purchaser Indemnified Person that sends such counsel
written notice that such Purchaser Indemnified Person does not wish such
counsel to represent it in connection with the matters discussed in this
subsection.  The Purchaser Indemnified
Persons, other than any Purchaser Indemnified Person that delivers the notice
discussed in the preceding sentence, hereby waive any conflict of interest or
potential conflict of interest that may arise as a result of the representation
of such Purchaser Indemnified Persons by the Purchaser Legal Counsel in
connection with the subject matter of the Claim.  The Company Indemnified Party or Purchaser
Indemnified Person shall cooperate with the indemnifying party in connection
with any negotiation or defense of any such action or claim by the indemnifying
party and shall furnish to the indemnifying party all information reasonably
available to the Company Indemnified Party or Purchaser Indemnified Person
which relates to such action or claim. 
The indemnifying party shall keep the Company Indemnified Party or
Purchaser Indemnified Person apprised as to the status of the defense or any
settlement negotiations with respect thereto. 
No indemnifying party shall be liable for any settlement of any action,
claim or proceeding effected without its prior written consent, which consent
shall not be unreasonably withheld.  No
indemnifying party shall, without the prior written consent of the Company
Indemnified Party or Purchaser Indemnified Person, consent to entry of any
judgment or enter into any settlement or other compromise which (i) does not
include as an unconditional term thereof the giving by the claimant or
plaintiff to such Company Indemnified Party or Purchaser Indemnified Person of
a release from all liability in respect of such claim or litigation, (ii)
requires any admission of wrongdoing by the Company Indemnified Party or
Purchaser Indemnified Party or (iii) obligates or requires a Company
Indemnified Party or Purchaser Indemnified Party to take, or refrain from
taking, any action.  Following indemnification
as provided for hereunder, the indemnifying party shall be subrogated to all
rights of the Company Indemnified Party or Purchaser Indemnified Person with
respect to all third parties, firms or corporations relating to the matter for
which indemnification has been made.  The
failure to deliver written notice to the indemnifying party within a reasonable
time of the commencement of any such action shall not relieve such indemnifying
party of any liability to the Purchaser Indemnified Person or Company
Indemnified Party under this subsection (d), except to the extent that the
indemnifying party is materially prejudiced in its ability to defend such
action.

 20

 

 

(iv)          Payments.  The indemnification required by this
subsection (d) shall be made by periodic payments of the amount thereof during
the course of the investigation or defense, as and when bills are received or
Indemnified Damages are incurred.  The
indemnity agreements contained herein shall be in addition to (a) any cause of
action or similar right of the Company Indemnified Party or Purchaser
Indemnified Person against the indemnifying party or others, and (b) any
liabilities the indemnifying party may be subject to pursuant to the law.

(v)           Contribution.  If for any
reason the indemnification provided for in this subsection (d) is unavailable
to a Company Indemnified Party or a Purchaser Indemnified Party or insufficient
to hold it harmless, other than as expressly specified therein, then the
indemnifying party shall contribute to the amount paid or payable by the
Company Indemnified Party or the Purchaser Indemnified Party, as applicable, as
a result of Claims in such proportion as is appropriate to reflect the relative
fault of the indemnified party and the indemnifying party, as well as any other
relevant equitable considerations.  No
person guilty of fraudulent misrepresentation within the meaning of Section
11(f) of the Securities Act shall be entitled to contribution from any person
not guilty of such fraudulent misrepresentation.  In no event shall the contribution obligation
of a holder of Purchased Shares be greater in amount than the dollar amount of
the proceeds (net of all expenses paid by such holder in connection with any
claim relating to this subsection (d)(v) and the amount of any damages such
holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission) received by it upon the sale
of the Purchased Shares giving rise to such contribution obligation.  The Purchasers’ obligation to contribute
pursuant to this subsection (d)(v) are several and not joint.

(g)           Rule 144 Information.  For so long as the Registration Period
continues, the Company shall file in a timely manner all reports required to be
filed by it under the Securities Act and the Exchange Act and the rules and
regulations promulgated thereunder and shall take such further action to the
extent required to enable the Purchasers to sell the Purchased Shares pursuant
to Rule 144 under the Securities Act (as such rule may be amended from time to
time).

(h)           Legal Counsel.  Subject to Section 5(g) below, the Purchasers
holding at least a majority of the Registrable Securities shall have the right
to select one legal counsel to review and comment upon any registration
pursuant to this Agreement (“Legal Counsel”), which shall be
Bell, Boyd & Lloyd LLC or such other counsel as is thereafter designated by
the holders of a majority of Purchased Shares and of which the Company and its
counsel have been given prior notice. The Legal Counsel shall not represent any
Purchaser that sends such counsel written notice that such Investor does not
wish such counsel to represent it in connection with the matters discussed in
this Section 5(h).  The Purchasers, other
than any Purchaser that delivers the notice discussed in the preceding
sentence, hereby waive any conflict of interest or potential conflict of
interest that may arise as a result of the representation of such Purchasers by
the Legal Counsel in connection with the subject matter of this Agreement.  These provisions will not prohibit any other
counsel to a Purchasers from reviewing and commenting on any registration filed
pursuant to this Agreement at no cost to the Company.  The Company shall reasonably cooperate with
Legal Counsel in performing the Company’s obligations under this Agreement.

 21
 

 

 

6.             CONDITIONS TO THE PURCHASER’S OBLIGATIONS AT CLOSING.  The obligations of the Purchasers under
Section 1(b) of this Agreement are subject to the fulfillment or waiver, on or
before the Closing, of each of the following conditions:

(a)           Representations and Warranties
True.  Each of the representations
and warranties of the Company contained in Section 3 shall be true and correct
in all material respects on and as of the date hereof (provided, however, that such qualification
shall only apply to representations or warranties not otherwise qualified by
materiality) and on and as of the date of the Closing with the same effect as
though such representations and warranties had been made as of the Closing
(except for representations and warranties that speak as of a specific date).

(b)           Performance.  The Company shall have performed and complied
in all material respects with all agreements, obligations and conditions
contained in this Agreement that are required to be performed or complied with
by it on or before the Closing and shall have obtained all approvals, consents
and qualifications necessary to complete the purchase and sale described
herein; provided, however, that
the Company may furnish to each Purchaser a facsimile copy of the stock
certificate representing the Purchased Securities, with the original warrant
and original stock certificate held in trust by counsel for the Company until
delivery thereof on the next business day.

(c)           Compliance Certificate.  The Company will have delivered to the
Purchasers a certificate signed on its behalf by its Chief Executive Officer or
Chief Financial Officer certifying that the conditions specified in Sections
6(a) and 6(b) hereof have been fulfilled.

(d)           Agreement.  The Company shall have executed and delivered
to the Purchasers this Agreement.

(e)           Securities Exemptions.  The offer and sale of the Purchased
Securities to the Purchasers pursuant to this Agreement shall be exempt from
the registration requirements of the Securities Act and the registration and/or
qualification requirements of all applicable state securities laws.

(f)            No Suspension of Trading or
Listing of Common Stock.  The Common
Stock of the Company (i) shall be listed on Nasdaq and (ii) shall not have been
suspended from trading on Nasdaq.

(g)           Good Standing Certificates.  The Company shall have delivered to the
Purchasers certificates from the Secretaries of State of the State of Delaware
and the State of Maryland, dated as of a date within five days of the date of
the Closing, with respect to the good standing of the Company.

(h)           Secretary’s Certificate.  The Company shall have delivered to the
Purchasers, a copy of a certificate of the Company executed by the Company’s
Secretary attaching and certifying to the truth and correctness of (A) the
Certificate of Incorporation, (B) the Bylaws and (C) the resolutions adopted by
the Company’s Board of Directors in connection with the transactions
contemplated by this Agreement.

 22
 

 

 

(i)            Opinion of Company Counsel.  The Purchasers will have received an opinion
on behalf of the Company, dated as of the date of the Closing, from Ropes &
Gray LLP, counsel to the Company, in the form attached as Exhibit C.

(j)            No Statute or Rule Challenging
Transaction.  No statute, rule,
regulation, executive order, decree, ruling, injunction, action, proceeding or
interpretation shall have been enacted, entered, promulgated, endorsed or
adopted by any court or governmental authority of competent jurisdiction or any
self-regulatory organization or the staff of any of the foregoing, having
authority over the matters contemplated hereby which questions the validity of,
or challenges or prohibits the consummation of, any of the transactions
contemplated by this Agreement.

(k)           Amount Invested.  The Purchasers under this Agreement shall
have tendered at closing no less than $10 million in the aggregate for the
Purchased Securities.

(l)            Other Actions.  The Company shall have executed such
certificates, agreements, instruments and other documents, and taken such other
actions as shall be customary or reasonably requested by the Purchasers in
connection with the transactions contemplated hereby.

(m)          Closing.  The Closing shall occur by no later than
November 15, 2006.

7.             CONDITIONS TO THE COMPANY’S OBLIGATIONS AT CLOSING.  The obligations of the Company to the
Purchasers under this Agreement are subject to the fulfillment or waiver, on or
before the Closing, of each of the following conditions:

(a)           Representations and Warranties
True.  The representations and
warranties of the Purchasers contained in Section 4 shall be true and correct
in all material respects on and as of the date hereof (provided, however, that such qualification
shall only apply to representations and warranties not otherwise qualified by
materiality) and on and as of the date of the Closing with the same effect as
though such representations and warranties had been made as of the Closing.

(b)           Performance.  The Purchasers shall have performed and
complied in all material respects with all agreements, obligations and
conditions contained in this Agreement that are required to be performed or
complied with by it on or before the Closing and shall have obtained all
approvals, consents and qualifications necessary to complete the purchase and
sale described herein.

(c)           Agreement.  The Purchasers shall have executed and
delivered to the Company this Agreement (and Appendix I and II hereto).

(d)           Securities Exemptions.  The offer and sale of the Purchased
Securities to the Purchasers pursuant to this Agreement shall be exempt from
the registration requirements of the Securities Act and the registration and/or
qualification requirements of all applicable state securities laws.

 23
 

 

 

(e)           Payment of Purchase Price.  The Purchasers shall have delivered to the
Company, by wire transfer of immediately available funds, full payment of the
purchase price for the Purchased Securities as specified in Section 1(b).

(f)            Other Actions.  The Purchasers shall have executed such
certificates, agreements, instruments and other documents, and taken such other
actions, as shall be customary or reasonably requested by the Company in
connection with the transactions contemplated hereby.

(g)           No Statute or Rule Challenging
Transaction.  No statute, rule,
regulation, executive order, decree, ruling, injunction, action, proceeding or
interpretation shall have been enacted, entered, promulgated, endorsed or adopted
by any court or governmental authority of competent jurisdiction or any
self-regulatory organization or the staff of any of the foregoing, having
authority over the matters contemplated hereby which questions the validity of,
or challenges or prohibits the consummation of, any of the transactions
contemplated by this Agreement.

8.             MISCELLANEOUS.

(a)           Successors and Assigns.  The terms and conditions of this Agreement
will inure to the benefit of and be binding upon the respective successors and
permitted assigns of the parties.  The
Company shall not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Purchasers holding at least a majority
of the total aggregate number of Purchased Securities then outstanding
(excluding any shares sold to the public pursuant to Rule 144 or
otherwise).  Any Purchaser may assign its
rights under this Agreement to any person to whom the Purchaser assigns or
transfers any Purchased Securities, provided that such transferee agrees in
writing to be bound by the terms and provisions of this Agreement, and such
transfer is in compliance with the terms and provisions of this Agreement and
permitted by federal and state securities laws.

(b)           Governing Law.  This Agreement will be governed by and
construed and enforced under the internal laws of the State of Delaware,
without reference to principles of conflict of laws or choice of laws.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS
AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

(c)           Survival.  The representations and warranties of the
Company and the Purchasers contained in Sections 3 and 4 of this Agreement
shall survive until the second (2nd) anniversary of the Closing Date.

(d)           Counterparts.  This Agreement may be executed in two or more
counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

(e)           Headings.  The headings and captions used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement. All

 24
 

 

 

references in this Agreement to sections, paragraphs,
exhibits and schedules will, unless otherwise provided, refer to sections and
paragraphs hereof and exhibits and schedules attached hereto, all of which
exhibits and schedules are incorporated herein by reference.

(f)            Notices.  Any notices and other communications required
or permitted under this Agreement shall be in writing and shall be delivered
(i) personally by hand or by courier, (ii) mailed by United States first-class
mail, postage prepaid or (iii) sent by facsimile directed (1) if to the Purchaser,
at the Purchaser’s address or facsimile number set forth on Exhibit A to this
Agreement, or at such address or facsimile number as the Purchaser may
designate by giving at least ten (10) days’ advance written notice to the
Company or (2) if to the Company, to its address or facsimile number set forth
below, or at such other address or facsimile number as the Company may
designate by giving at least ten (10) days’ advance written notice to the
Purchaser.  All such notices and other
communications shall be deemed given upon (i) receipt or refusal of receipt, if
delivered personally, (ii) three days after being placed in the mail, if
mailed, or (iii) confirmation of facsimile transfer, if faxed.

The address of the Company for the purpose of this Section 9(f) is as
follows:

Iomai Corporation

20 Firstfield Road, Suite 250

Gaithersburg, MD 20878

Tel: (301) 556-4537

Fax: (301) 556-4501

Attention: Russell P. Wilson, Chief Financial Officer

with a copy to:

Ropes & Gray LLP

One International Place

Boston, Massachusetts 02110

Tel: 617.951.7000

Fax: 617.951.7050

Attention: Paul Kinsella

(g)           Amendments and Waivers. This
Agreement may be amended and the observance of any term of this Agreement may
be waived only with the written consent of the Company and the Purchasers holding
at least a majority of the total aggregate number of Purchased Securities then
held by the Purchasers; provided that any provision for the sole benefit of the
Company may be waived by the Company. 
Any amendment effected in accordance with this Section 8(g) will be
binding upon the Purchasers, the Company and their respective successors and
permitted assigns.

(h)           Severability.  If any provision of this Agreement is held to
be unenforceable under applicable law, such provision will be excluded from this
Agreement and the balance of the Agreement will be interpreted as if such
provision were so excluded and will be enforceable in accordance with its
terms.

 25
 

 

 

(i)            Entire Agreement.  This Agreement, together with all exhibits
and schedules hereto and thereto constitutes the entire agreement and
understanding of the parties with respect to the subject matter hereof and
supersedes any and all prior negotiations, correspondence, agreements,
understandings, duties or obligations between the parties with respect to the
subject matter hereof.

(j)            Meaning of Include and Including.  Whenever in this Agreement the word “include”
or “including” is used, it shall be deemed to mean “include, without limitation”
or “including, without limitation,” as the case may be, and the language
following “include” or “including” shall not be deemed to set forth an
exhaustive list.

(k)           Fees, Costs and Expenses.  Except as otherwise provided for in this
Agreement, all fees, costs and expenses (including attorneys’ fees and
expenses) incurred by any party hereto in connection with the preparation,
negotiation and execution of this Agreement and the exhibits and schedules
hereto and the consummation of the transactions contemplated hereby and thereby
(including the costs associated with any filings with, or compliance with any
of the requirements of any governmental authorities), shall be the sole and
exclusive responsibility of such party; provided, that upon the Closing, the
Company shall pay up to $30,000 of the fees and disbursements of the Purchasers
and their counsel in connection with the due diligence, negotiation, drafting
of, and closing of the transactions contemplated by, this Agreement.  In addition, after the Closing the Company
will pay the reasonable fees and disbursements (a) of a single counsel for the
Purchasers in connection with any subsequent amendment, waiver or consent of or
under this Agreement or any related document or agreement initiated by the
Company up to $10,000, and (b) of any Purchaser’s counsel in connection with
wholly successful on the merits enforcement of this Agreement or any related
document or agreement.

(l)            8-K Filing and Publicity.  As soon as practicable following the
execution of this Agreement but in no event later than 9:30 a.m. EST on the day
following the execution of this Agreement, the Company shall file a Current
Report on Form 8-K with the SEC describing the transaction contemplated by this
Agreement (which shall include a copy of this Agreement) as an exhibit to such
filing (the “8-K Filing”
including all attachments).  Neither the
Company nor any Purchaser shall issue any press releases or any other public
statements with respect to the transaction contemplated by this Agreement; provided, however, that (i) the Company
shall be entitled, without the prior approval of any Purchaser, to issue any
press release or make any other public disclosure (including a press release
pursuant to Rule 135(c) under the Securities Act) (i) in substantial conformity
with the   8-K Filing or (ii) as is required
by applicable law, regulations, and Nasdaq rules.  Notwithstanding the foregoing, after the 8-K
Filing has been made, each Purchaser may at any time post a notice on its
website that includes information about the Company and/or the financing that
was contained in such press release.

(m)          Stock Splits, Dividends and other
Similar Events.  The provisions of
this Agreement shall be appropriately adjusted to reflect any stock split,
stock dividend, reorganization or other similar event that may occur with respect
to the Company after the date hereof and prior to the Closing Date.

(n)           Remedies.  In addition to being entitled to exercise all
rights provided herein, each Purchaser and the Company will be entitled to
specific performance under this

 26
 

 

 

Agreement.  The
parties agree that monetary damages may not be adequate compensation for any
loss incurred by reason of any breach of obligations described in the foregoing
sentence and hereby agrees to waive in any action for specific performance of
any such obligation the defense that a remedy at law would be adequate.

[Remainder of page intentionally left blank.]

* * *

 27

 

IN WITNESS WHEREOF, the
parties hereto have executed this Securities Purchase Agreement as of the date
and year first above written.

	
  

  	
  IOMAI CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Russell P. Wilson

  
	
   

  	
   

  	
  Name:

  	
  Russell P. Wilson

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President, Chief Financial

  Officer and General Counsel

  
					

 

[Purchaser signature pages to follow.]

 28
 

 

 

SIGNATURE
PAGE TO

SECURITIES PURCHASE AGREEMENT

DATED AS OF OCTOBER    , 2006

BY AND AMONG

IOMAI CORPORATION

AND EACH PURCHASER NAMED THEREIN

The undersigned hereby
executes and delivers to Iomai Corporation the Purchase Agreement (the “Agreement”) to which
this signature page is attached effective as of the date of the Agreement,
which Agreement and signature page, together with all counterparts of such
Agreement and signature pages of the other Purchasers named in such Agreement,
shall constitute one and the same document in accordance with the terms of such
Agreement.

	
  

  	
  Number of Shares:                   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Essex Woodlands Health Ventures V, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Essex Woodlands Health Ventures V, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeff Himawan

  
	
   

  	
   

  	
  Jeff Himawan, a duly authorized signatory

  

 

 29
 

 

 

SIGNATURE
PAGE TO

SECURITIES PURCHASE AGREEMENT

DATED AS OF OCTOBER__, 2006

BY AND AMONG

IOMAI CORPORATION

AND EACH PURCHASER NAMED THEREIN

The undersigned hereby executes and delivers to Iomai
Corporation the Purchase Agreement (the “Agreement”)
to which this signature page is attached effective as of the date of the
Agreement, which Agreement and signature page, together with all counterparts
of such Agreement and signature pages of the other Purchasers named in such
Agreement, shall constitute one and the same document in accordance with the
terms of such Agreement.

	
  

  	
  Number of Shares:                   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  New Enterprise Associates 10, Limited
  Partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NEA Partners 10, Limited Partnership, its general
  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles W. Newhall III

  

 

 30

 

EXHIBIT
A

SCHEDULE OF PURCHASERS

	
  Name and Address

  	
   

  	
  Number of Shares

  	
   

  	
  Purchase Price

  
	
  New Enterprise Associates 10,

  Limited Partnership

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Notice to:

  Eugene A. Trainor, III

  c/o New Enterprise Associates

  1119 St. Paul Street

  Baltimore, MD 21202

  	
   

  	
  1,141,553

  	
   

  	
  $4.38 per share

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Essex Woodlands Health

  Ventures V, L.P. 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Notice to:

  Essex Woodlands Health

  Ventures V, L.P.

  450 Tasso Street, Suite 305

  Palo Alto, CA 94301

  	
   

  	
  1,141,553

  	
   

  	
  $4.38 per share

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attn: Jeff Himawan

  Email: jhimawan@ewhv.com

  Phone: (650) 543-1504

  Fax: (650) 543-1504

  	
   

  	
   

  	
   

  	
   

  

 

 31

 

 

EXHIBIT
B

PLAN
OF DISTRIBUTION

The selling stockholders, which as used herein includes donees,
pledgees, transferees or other successors-in-interest selling shares of common
stock or interests in shares of common stock received after the date of this
prospectus from a selling stockholder as a gift, pledge, partnership
distribution or other transfer, may, from time to time, sell, transfer or
otherwise dispose of any or all of their shares of common stock or interests in
shares of common stock on any stock exchange, market or trading facility on
which the shares are traded or in private transactions.  These dispositions may be at fixed prices, at
prevailing market prices at the time of sale, at prices related to the prevailing
market price, at varying prices determined at the time of sale, or at
negotiated prices.

The selling stockholders may use any one or more of the following
methods when disposing of shares or interests therein:

·
ordinary brokerage transactions and transactions in which the broker-dealer solicits
purchasers;

·
block trades in which the broker-dealer will attempt to sell the shares as
agent, but may position and resell a portion of the block as principal to
facilitate the transaction;

·
purchases by a broker-dealer as principal and resale by the broker-dealer for
its account;

·
an exchange distribution in accordance with the rules of the applicable
exchange;

·
privately negotiated transactions;

·
short sales effected after the effective date of the registration statement of
which this prospectus is a part;

·
through the writing or settlement of options or other hedging transactions,
whether through an options exchange or otherwise;

·
broker-dealers may agree with the selling stockholders to sell a specified
number of such shares at a stipulated price per share; and

·
a combination of any such methods of sale.

The selling stockholders may, from time to time, pledge or grant a
security interest in some or all of the shares of common stock owned by them
and, if they default in the performance of their secured obligations, the
pledgees or secured parties may offer and sell the shares of common stock, from
time to time, under this prospectus, or under an amendment to this prospectus
under Rule 424(b)(3) or other applicable provision of the Securities Act
amending the list of selling stockholders to include the pledgee, transferee or
other successors in interest as selling stockholders under this
prospectus.  The selling stockholders
also may transfer the shares

 32
 

 

 

of common stock in other circumstances, in which case
the transferees, pledgees or other successors in interest will be the selling
beneficial owners for purposes of this prospectus.

In connection with the sale of our common stock or interests therein,
the selling stockholders may enter into hedging transactions with
broker-dealers or other financial institutions, which may in turn engage in
short sales of the common stock in the course of hedging the positions they
assume.  The selling stockholders may also
sell shares of our common stock short and deliver these securities to close out
their short positions, or loan or pledge the common stock to broker-dealers
that in turn may sell these securities. 
The selling stockholders may also enter into option or other
transactions with broker-dealers or other financial institutions or the
creation of one or more derivative securities which require the delivery to
such broker-dealer or other financial institution of shares offered by this
prospectus, which shares such broker-dealer or other financial institution may
resell pursuant to this prospectus (as supplemented or amended to reflect such
transaction).

The aggregate proceeds to the selling stockholders from the sale of the
common stock offered by them will be the purchase price of the common stock less
discounts or commissions, if any.  Each
of the selling stockholders reserves the right to accept and, together with
their agents from time to time, to reject, in whole or in part, any proposed
purchase of common stock to be made directly or through agents.  We will not receive any of the proceeds from
this offering. Upon any exercise of the warrants by payment of cash, however,
we will receive the exercise price of the warrants.

The selling stockholders also may resell all or a portion of the shares
in open market transactions in reliance upon Rule 144 under the Securities Act
of 1933, provided that they meet the criteria and conform to the requirements
of that rule.

The selling stockholders and any underwriters, broker-dealers or agents
that participate in the sale of the common stock or interests therein may be “underwriters”
within the meaning of Section 2(11) of the Securities Act.  Any discounts, commissions, concessions or
profit they earn on any resale of the shares may be underwriting discounts and
commissions under the Securities Act. 
Selling stockholders who are “underwriters” within the meaning of
Section 2(11) of the Securities Act will be subject to the prospectus delivery
requirements of the Securities Act.

To the extent required, the shares of our common stock to be sold, the
names of the selling stockholders, the respective purchase prices and public
offering prices, the names of any agents, dealer or underwriter, any applicable
commissions or discounts with respect to a particular offer will be set forth
in an accompanying prospectus supplement or, if appropriate, a post-effective
amendment to the registration statement that includes this prospectus.

In order to comply with the securities laws of some states, if
applicable, the common stock may be sold in these jurisdictions only through
registered or licensed brokers or dealers. 
In addition, in some states the common stock may not be sold unless it
has been registered or qualified for sale or an exemption from registration or
qualification requirements is available and is complied with.

 33
 

 

 

We have advised the selling stockholders that the anti-manipulation
rules of Regulation M under the Exchange Act may apply to sales of shares in
the market and to the activities of the selling stockholders and their
affiliates.  In addition, we will make
copies of this prospectus (as it may be supplemented or amended from time to
time) available to the selling stockholders for the purpose of satisfying the
prospectus delivery requirements of the Securities Act.  The selling stockholders may indemnify any
broker-dealer that participates in transactions involving the sale of the
shares against certain liabilities, including liabilities arising under the
Securities Act.

We have agreed to indemnify the selling stockholders against
liabilities, including liabilities under the Securities Act and state
securities laws, relating to the registration of the shares offered by this
prospectus.

We have agreed with the selling stockholders to keep the registration
statement of which this prospectus constitutes a part effective until the
earlier of (1) such time as all of the shares covered by this prospectus have
been disposed of pursuant to and in accordance with the registration statement
or (2) the date on which the shares may be sold pursuant to Rule 144(k) of the
Securities Act.

 34

 

EXHIBIT
C

[FORM
OF R&G OPINION]

 35

 

APPENDIX
I

[STOCK CERTIFICATE
QUESTIONNAIRE]

 36

 

APPENDIX
II

[REGISTRATION
STATEMENT/SUITABILITY QUESTIONNAIRE]

 37Exhibit 10.1

STOCK
OPTION AGREEMENT

FOR
INCENTIVE STOCK OPTIONS UNDER SECTION 422

OF
THE INTERNAL REVENUE CODE

PURSUANT
TO THE

EAGLE
BANCORP, INC.

2006
STOCK PLAN

STOCK OPTION for a total of
30,000 shares of Common Stock, par value $.01 per share, of Eagle Bancorp, Inc.
(the “Company”), which Option is intended to qualify as an incentive stock
option under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”),
is hereby granted to Ronald D. Paul (the “Optionee”) at the price set forth herein,
and in all respects subject to the terms, definitions and provisions of the
2006 Stock Plan (the “Plan”) which was adopted by the Company and which is
incorporated by reference herein, receipt of which is hereby acknowledged.

1.             Option Price.         The
Option Price is $18.715 for each share, being 100% of the Market Value, as
determined in accordance with the provisions of the Plan, of the Common Stock
on the date of grant of this Option.

2.             Exercise of Option. This Option shall be
exercisable in accordance with provisions of the Plan as follows:

(i) Schedule of rights to
exercise.

	
  Number of Shares

  	
   

  	
  Date Exercisable

  	
   

  
	
  849

  	
   

  	
  1/1/2007

  	
   

  
	
  5,343

  	
   

  	
  1/1/2008

  	
   

  
	
  5,343

  	
   

  	
  1/1/2009

  	
   

  
	
  5,343

  	
   

  	
  1/1/2010

  	
   

  
	
  5,343

  	
   

  	
  1/1/2011

  	
   

  
	
  5,343

  	
   

  	
  1/1/2012

  	
   

  
	
  2,436

  	
   

  	
  1/1/2013

  	
   

  

(ii) Method of Exercise.  This Option shall be exercisable by a written
notice by the Optionee, which shall:

(a)           State the election to exercise the Option, the number of
shares with respect to which it is being exercised, the person in whose name
the stock certificate or certificates for such shares of Common Stock is to be
registered, his or her address and Social Security Number (or if more than one,
the names, addresses and Social Security Numbers of such persons);

(b)           Contain such representations and agreements as to the
holder’s investment intent with respect to such shares of Common Stock as may
be satisfactory to the Committee;

(c)           Be signed by the person or persons entitled to exercise
the Option and, if the Option is being exercised by any person or persons other
than the Optionee, be accompanied by proof, satisfactory to counsel for the
Company, of the right of such person or persons to exercise the Option; and

(d)           Be in writing and delivered in person or by registered or
certified mail to the Treasurer of the Company.

 1
 

 

Payment of the purchase price of
any shares with respect to which the Option is being exercised shall be by
cash, Common Stock, or such combination of cash and Common Stock as the
Optionee elects.  The certificate or
certificates for shares of Common Stock as to which the Option shall be
exercised shall be registered in the name of the person or persons exercising
the Option.

(iii)          Restrictions on Exercise.  This Option may not be exercised if the
issuance of the shares upon such exercise would constitute a violation of any
applicable federal or state securities or other law or valid regulation.  As a condition to the Optionee’s exercise of
this Option, the Company may require the person exercising this Option to make
any representation and warranty to the Company as may be required by any
applicable law or regulation.

(iv)          Acceleration of Vesting. Notwithstanding the above
schedule of rights to exercise, this Option shall be immediately and fully
exercisable upon the events specified in the Plan.

3.             Withholding. 
The Optionee hereby agrees that the exercise of the Option or any
installment thereof will not be effective, and no shares will become
transferable to the Optionee, until the Optionee makes appropriate arrangements
with the Company for such tax withholding as may be required of the Company
under federal, state, or local law on account of such exercise.

4.             Non-transferability of Option.  This Option may not be transferred in any
manner otherwise than by will or the laws of descent or distribution, or
pursuant to a “qualified domestic relations order” (within the meaning of
Section 414(p) of the Code and the regulations and rulings thereunder).  The terms of this Option shall be binding
upon the executors, administrators, heirs, successors, and assigns of the
Optionee.

5.             Term of Option. 
This Option may not be exercised more than 10 years from the date of
grant of this Option, as stated below, and may be exercised during such term
only in accordance with the Plan and the terms of this Option.

6.             No Employment Right. Nothing
in this Agreement or the Plan shall be construed as creating any contract of
employment or as conferring on Participant any legal or equitable right to
continue employment or other service with the Company or any Affiliate, or any
level of compensation.

	
   

  	
  EAGLE BANCORP, INC.

  
	
   

  	
  BY: THE 2006 STOCK PLAN COMMITTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title

  
	
   

  	
   

  
	
  October 18, 2006

  	
   

  	
   

  
	
  Date of Grant

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  October 17, 2016

  	
   

  	
   

  
	
  Expiration Date (Subject to earlier termination)

  	
   

  
	
   

  	
   

  
	
  Accepted:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Optionee

  	
   

  
						

 

 2

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