Document:

EXHIBIT 10.5

 

Option No.: _______

GENVEC, INC.

2011 OMNIBUS INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

 

GenVec,
Inc., a Delaware corporation (the “Company”), hereby grants an option to purchase shares of its common stock, par value
$.001 (the “Stock”) to the individual named below. The terms and conditions of the option are set forth in this cover
sheet and in the attachment (collectively, the “Agreement”) and in the Company’s 2011 Omnibus Incentive Plan
(the “Plan”).

 

Grant Date: June 1, 2012

 

Name of Participant: Paul H. Fischer, Ph.D.

 

Participant’s Employee Identification Number: _____-____-_____

 

Number of Shares of Stock Covered by Option: 150,000

 

Option Price per Share of Stock: U.S. $_____.___ (At least
100% of Fair Market Value)

 

Vesting Schedule: Subject to the terms of this Agreement, fifty
percent (50%) of the shares of Stock covered by this option shall vest on the six month anniversary of the Grant Date and the remainder
of the shares of Stock covered by this Option shall vest on the one-year anniversary of the Grant Date.

 

By signing this cover sheet, you agree
to all of the terms and conditions described in this Agreement and in the Plan, a copy of which is also attached. You acknowledge
that you have carefully reviewed the Plan, and agree that the Plan will control in the event any provision of this Agreement should
appear to be inconsistent with the Plan. Certain capitalized terms used in this Agreement are defined in the Plan, and have the
meaning set forth in the Plan.

 

	Participant:	 
	 	(Signature)
	 	 
	Company:	 
	 	(Signature)
	 	 
	 	Title:	 
	 	 	 
	Attachment	 	 

 

This is not a stock certificate or a
negotiable instrument

 

    	

    	 

    

 

GENVEC, INC.

2011 OMNIBUS INCENTIVE PLAN

 

NON-QUALIFIED STOCK OPTION AGREEMENT

 

	Non-qualified Stock Option	This option is not intended to be an incentive stock option under Section 422 of the Internal Revenue Code and will be interpreted accordingly. 
	 	 
	Vesting	
        This option is only exercisable before it expires and then only
        with respect to the vested portion of the option. Subject to the preceding sentence, you may exercise this option, in whole or
        in part, to purchase a whole number of vested shares, unless the number of shares purchased is the total number available for purchase
        under the option, by following the procedures set forth in the Plan and below in this Agreement.

         

Your right to purchase shares of Stock under this option vests
        as set forth in the Vesting Schedule shown on the cover sheet, provided you then continue in Service. You cannot vest in more than
        the number of shares covered by this option. No additional shares of Stock will vest after your Service has terminated for any
        reason except as set forth below.

	 	 
	Term	Your option will expire in any event at the close of business at Company headquarters on the day before the tenth anniversary of the Grant Date, as shown on the cover sheet.  Your option will expire earlier (but never later) if your Service terminates, as described below.
	 	 
	Termination for
 Cause	If your Service is terminated for Cause, then you shall immediately forfeit all rights to your option and the option shall immediately expire. 
	 	 
	
        Change in Control

         
	Notwithstanding the vesting schedule set forth above, upon the consummation of a Change in Control, this option will become 100% vested.
	 	 
	Notice of Exercise	
        When you wish to exercise this option, you must notify the Company
        by filing the proper “Notice of Exercise” form at the address given on the form. Your notice must specify how many
        shares you wish to purchase. Your notice must also specify how your shares of Stock should be registered (in your name only or
        in your and your spouse’s names as joint tenants with right of survivorship). The notice will be effective when it is received
        by the Company.

 

        If someone else wants to exercise this option after your death,
        that person must prove to the Company’s satisfaction that he or she is entitled to do so.

 

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	Form of Payment	
        When you submit your notice of exercise, you must include payment
        of the option price for the shares you are purchasing. Payment may be made in one (or a combination) of the following forms:

        ·         Cash,
        your personal check, a cashier’s check, a money order or another cash equivalent acceptable to the Company.

 

        ·         Shares
of Stock which have already been owned by you and which are surrendered to the Company. The value of the shares, determined as
of the effective date of the option exercise, will be applied to the option price.

 

        ·         By
        delivery (on a form prescribed by the Company) of an irrevocable direction to a licensed securities broker acceptable to the Company
        to sell Stock and to deliver all or part of the sale proceeds to the Company in payment of the aggregate option price and any withholding
        taxes.

	 	 
	Withholding Taxes	You will not be allowed to exercise this option unless you make acceptable arrangements to pay any withholding or other taxes that may be due as a result of the option exercise or sale of Stock acquired under this option.  In the event that the Company determines that any federal, state, local or foreign tax or withholding payment is required relating to the exercise or sale of shares arising from this grant, the Company shall have the right to require such payments from you, or withhold such amounts from other payments due to you from the Company or any Affiliate.  Subject to the prior approval of the Company, which may be withheld by the Company, in its sole discretion, you may elect to satisfy this withholding obligation, in whole or in part, by causing the Company to withhold shares of Stock otherwise issuable to you or by delivering to the Company shares of Stock.  The shares of Stock so delivered or withheld must have an aggregate fair market value equal to the withholding obligation and may not be subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements.
	 	 
	Transfer of Option	During your lifetime, only you (or, in the event of your legal incapacity or incompetency, your guardian or legal representative) may exercise the option.  You cannot transfer or assign this option.  For instance, you may not sell this option or use it as security for a loan.  If you attempt to do any of these things, this option will immediately become invalid.  You may, however, dispose of this option in your will or it may be transferred upon your death by the laws of descent and distribution.
	 	 
	 	Regardless of any marital property settlement agreement, the Company is not obligated to honor a notice of exercise from your spouse, nor is the Company obligated to recognize your spouse’s interest in your option in any other way.

 

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	Retention Rights	Neither your option nor this Agreement give you the right to be retained or employed by the Company (or any of its Affiliates) in any capacity.  The Company (and any Affiliate) reserve the right to terminate your Service at any time and for any reason.
	 	 
	Shareholder Rights	You, or your estate or heirs, have no rights as a shareholder of the Company until a certificate for your option’s shares has been issued (or an appropriate book entry has been made).  No adjustments are made for dividends or other rights if the applicable record date occurs before your stock certificate is issued (or an appropriate book entry has been made).
	 	 
	Clawback	
        This Award is subject to mandatory repayment
        by you to the Company to the extent you are or in the future become subject to any Company “clawback” or recoupment
        policy that requires the repayment by you to the Company of compensation paid by the Company to you in the event that you fail
        to comply with, or violate, the terms or requirements of such policy.

 

        If the Company is required to prepare an accounting restatement
        due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the
        securities laws, and you knowingly engaged in the misconduct, were grossly negligent in engaging in the misconduct, knowingly failed
        to prevent the misconduct or were grossly negligent in failing to prevent the misconduct, you shall reimburse the Company the amount
        of any payment in settlement of this Award earned or accrued during the 12-month period following the first public issuance or
        filing with the United States Securities and Exchange Commission (whichever first occurred) of the financial document that contained
        such material noncompliance.

	 	 
	Adjustments	In the event of a stock split, reverse stock split, stock dividend, recapitalization, combination or reclassification of shares, spin-off, or other similar change in capitalization or event, the number of shares covered by this option and the option price per share shall be adjusted (and rounded down to the nearest whole number) pursuant to the Plan.  Your option shall be subject to the terms of the agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate activity.
	 	 
	Applicable Law	This Agreement will be interpreted and enforced under the laws of Delaware other than any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction.

 

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	The Plan	The text of the Plan is incorporated in this Agreement by reference.
	 	 
	 	This Agreement and the Plan constitute the entire understanding between you and the Company regarding this grant.  Any prior agreements, commitments or negotiations concerning this grant are superseded; except that any written employment, consulting, confidentiality, non-competition, non-solicitation and/or severance agreement between you and the Company or an Affiliate, as applicable, shall supersede this Agreement with respect to its subject matter.
	 	 
	Data Privacy	
        In order to administer the Plan, the Company may process personal
        data about you. Such data includes, but is not limited to the information provided in this Agreement and any changes thereto, other
        appropriate personal and financial data about you such as home address and business addresses and other contact information, payroll
        information and any other information that might be deemed appropriate by the Company to facilitate the administration of the Plan.

 

        By accepting this option, you give explicit consent to the Company
        to process any such personal data. You also give explicit consent to the Company to transfer any such personal data outside the
        country in which you work or are employed, including, with respect to non-U.S. resident grantees, to the United States, to transferees
        who shall include the Company and other persons who are designated by the Company to administer the Plan.

	 	 
	Consent to Electronic Delivery	The Company may choose to deliver certain statutory materials relating to the Plan in electronic form. By accepting this grant you agree that the Company may deliver the Plan prospectus and the Company’s annual report to you in an electronic format. If at any time you would prefer to receive paper copies of these documents, as you are entitled to, the Company would be pleased to provide copies. Please contact the Executive Director of HR and Administration or the Chief Financial Officer to request paper copies of these documents.
	 	 
	Code Section 409A	It is intended that this Award comply with Code Section 409A or an exemption to Code Section 409A. To the extent that the Company determines that you would be subject to the additional 20% tax imposed on certain non-qualified deferred compensation plans pursuant to Code Section 409A as a result of any provision of this Agreement, such provision shall be deemed amended to the minimum extent necessary to avoid application of such additional tax. The nature of any such amendment shall be determined by the Company. For purposes of this Award, a termination of Service only occurs upon an event that would be a Separation from Service within the meaning of Code Section 409A. 

 

By signing the cover sheet of this
Agreement, you agree to all of the terms and

conditions described above and in the Plan.

 

    	5Borrowing
Notice and acknowledgment

 

This Borrowing Notice and Acknowledgment
(the “Borrowing Notice”), dated as of May 18, 2012, is made in accordance with Section 5.2 of that certain Notes
and Warrants Purchase Agreement (the “Agreement”), dated as of April 10, 2012, by and among ChinaCast Education Corporation,
a Delaware corporation (the “Company”), and the Purchasers named therein. All capital terms used herein that are not
otherwise defined herein shall have the meanings ascribed to them in the Agreement.

 

Whereas, the Company is need of more funds
to pursue legal options to recover the assets that it believes have been misappropriated from the Company (as disclosed in the
Company’s recent public filings), and other corporate purposes; and

 

Whereas, in consideration for the Purchasers
making available the Subsequent Advance pursuant to this Borrowing Notice, the Company has agreed to change from $4 to $1 the exercise
price for all Warrants (as defined in the Agreement) issued in connection with both (i) the Advance made on the date of the Agreement
in accordance with Section 5.1 thereof and (ii) the Subsequent Advance provided for hereof;

 

Now, therefore, in consideration of the
premises and the agreements set forth below, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties agree as set forth below:

 

		1.	Subsequent Advance Request. The Company requests a Subsequent Advance from each of the Purchasers in the principal amount
stated on the Subsequent Advance Schedule of Purchasers hereof, in accordance with Section 5.2 of the Agreement.

 

		2.	Sale and Purchase. Subject to the terms and conditions of the Agreement, the Company hereby sells, transfers and assigns
to each Purchaser the aggregate principal amount of the Note set forth opposite such Purchaser’s name in the Subsequent
Advance Schedule of Purchasers hereof and each Purchaser hereby purchases from the Company the aggregate principal amount of
the Note set opposite such Purchaser’s name in the Subsequent Advance Schedule of Purchasers hereof.

 

		3.	Purchase Price. At the Subsequent Advance Closing (as hereinafter defined), each Purchaser shall pay to the Company
the U.S. dollar amount set opposite such Purchaser’s name in the Subsequent Advance Schedule of Purchasers hereof
by wire transfer of immediately available U.S. dollar funds to the bank account designated in writing by the Company to each Purchaser
prior to the Subsequent Advance Closing.

 

		4.	Subsequent Advance Closing. The closing (the “Subsequent Advance Closing”) of the purchase and sale
of the Notes purchased pursuant to Section 2 hereof shall occur concurrently with the execution and delivery of this Borrowing
Notice. The Subsequent Advance Closing shall take place remotely via the exchange of documents and signatures or at such location
as may be mutually acceptable by the parties. Concurrently with or immediately following the Subsequent Advance Closing, each of
the Company and the Purchasers shall execute and deliver the Note(s) purchased pursuant to Section 2 hereof to which it is party.
Each of the Purchasers waives the provision under Section 5.2 of the Agreement that the Company would not deliver the Borrowing
Notice until after May 25, 2012.

 

    	 

    	 	

    
 

		5.	Warrants. As soon as practicable after the date hereof, the Company shall issue to each Purchaser the number of Warrants
stated on the Subsequent Advance Schedule of Purchasers hereof. The Company agrees that, in lieu of the exercise price terms
set forth under Section 4.2 of the Agreement, each Warrant that it issues pursuant to the Schedule of Purchasers in the
Agreement and the Subsequent Advance Schedule of Purchasers hereof shall be convertible into one share of the Company’s
Common Stock at an exercise price of $1.00 per share (which exercise price shall not be subject to any adjustment mechanism).

 

		6.	Acknowledgement of Possible Additional Purchasers. Each of the Purchasers acknowledges that the Company may:

 

		a.	issue to additional purchasers notes and warrants that have substantially the same terms as the Notes and Warrants issued pursuant
to this Borrowing Notice, subject to the provisions of Section 6 of the Notes;

 

		b.	enter into notes and warrants purchase agreements with one or more of these additional purchasers on substantially the same
terms as the Agreement; and

 

		c.	enter into registration rights agreements with one or more of these additional purchasers on substantially the same terms as
the New Piggy-Back Rights Agreement to be entered into pursuant to Section 4.3 of the Agreement, which may provide such additional
purchasers with the same piggy-back rights (but not the demand rights) as provided to Fir Tree under the New Fir Tree Registration
Rights Agreement. The registration rights agreements entered into with these new additional purchasers, the New Fir Tree Registration
Rights Agreement and the New Piggy-Back Registration Rights Agreement may be contained in one and the same document.

 

		7.	Representations and Warranties. The Company represents and warrants that as of the date of this Borrowing Notice,

 

		a.	no Default (as defined under the Notes) has occurred and is continuing; and

 

		b.	each of the representations and warranties contained in Section 5 of the Notes is true and correct.

 

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		8.	Notice. Henceforth, any notice to be provided to the Company in accordance with Section 6.2(b) of the Agreement should
be delivered to the following address:

 

ChinaCast Education Corporation

Room 701A, Building A, Golden Eagle Mansion

80 Hanxiao Road, Pudong

Shanghai 200437 China

Attention: Doug Woodrum

Fax: +(86) 21 6105 3354*8004

 

		9.	Miscellaneous. This Borrowing Notice is governed by the laws of the State of New York. This Borrowing Notice and the
various rights and obligations arising hereunder shall inure to the benefit of and be binding upon the parties hereto and their
successors and assigns. This Borrowing Notice may be executed in multiple counterparts, and on separate counterparts, each of which
shall be deemed an original, but all of which taken together shall constitute one and the same instrument. Any counterpart or other
signature hereupon delivered by facsimile shall be deemed for all purposes as constituting good and valid execution and delivery
of this Borrowing Notice by such party.

 

[Signature pages next]

 

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	 	Executed and agreed to on the date first written above by:
	 	 
	 	ChinaCast Education Corporation
	 	 
	 	 
	 	By:  /s/ Doug Woodrum                                                             
	 	Name: Doug Woodrum
	 	Title: Chief Financial Officer

 

 

 

Acknowledged and agreed to by the Purchasers
on the date first written above by:

 

Fir Tree Value Master Fund, L.P.

 

By: /s/ Brian Meyer                                              

Name: Brian Meyer                                               

Title: General Counsel                                          

 

Fir Tree Capital Opportunity Master Fund, L.P.

 

By: /s/ Brian Meyer                                              

Name: Brian Meyer                                               

Title: General Counsel                                          

 

Lake Union Capital Fund, LP

 

By: /s/ Michael Self                                              

Name: Michael Self                                               

Title: Managing Member of the General Partner

 

Lake Union Capital TE Fund, LP

 

By: /s/ Michael Self

Name: Michael Self

Title: Managing Member of the General Partner

 

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MRMP Managers LLC

 

By: /s/ Ned L. Sherwood                                     

Name: Ned L. Sherwood                                      

Title: Investment Manager                                  

 

Harkness Trust

 

By: /s/ Theodore H. Ashford                              

Name: Theodore H. Ashford                              

Title: Trustee                                                         

 

Ashford Capital Management, Inc. w/ discretion f.b.o.
Ashford Capital Partners, L.P.

 

By: /s/ Theodore H. Ashford III                         

Name: Theodore H. Ashford III                          

Title: C.E.O, President
& CIO, Ashford Capital Management, Inc. 

 

Ashford Capital Management, Inc. w/ discretion f.b.o.
Anvil Investment Associates, L.P.

 

By: /s/ Theodore H. Ashford III                         

Name: Theodore H. Ashford III                          

Title: C.E.O, President
& CIO, Ashford Capital Management, Inc. 

 

Columbia Pacific Opportunity Fund, L.P.

 

By: /s/ Alex Washburn                                        

Name: Alex Washburn                                         

Title: Managing Partner                                       

 

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subsequent
advance SCHEDULE OF PURCHASERS

 

	Purchaser	 	 	Principal

Amount of Note	 	 	 	Purchase Price	 	 	 	Number of Warrants	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fir Tree Value Master Fund, L.P.	 	$	406,668.00	 	 	$	406,668.00	 	 	 	203,334	 
	Fir Tree Capital Opportunity Master Fund, L.P.	 	$	77,263.50	 	 	$	77,263.50	 	 	 	38,632	 
	Lake Union Capital Fund, LP	 	$	141,026.00	 	 	$	141,026.00	 	 	 	70,513	 
	Lake Union Capital TE Fund, LP	 	$	8,974.00	 	 	$	8,974.00	 	 	 	4,487	 
	MRMP Managers LLC	 	$	60,000.00	 	 	$	60,000.00	 	 	 	30,000	 
	Harkness Trust	 	$	8,750.00	 	 	$	8,750.00	 	 	 	4,375	 
	Ashford Capital Partners, L.P.	 	$	188,500.00	 	 	$	188,500.00	 	 	 	94,250	 
	Anvil Investment Associates, L.P.	 	$	80,000.00	 	 	$	80,000.00	 	 	 	40,000	 
	Columbia Pacific Opportunity Fund, L.P.	 	$	125,000.00	 	 	$	125,000.00	 	 	 	62,500	 
	Total:	 	$	1,096,181.50	 	 	$	1,096,181.50	 	 	 	548,091	 

 

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