iBio, Inc. Officer Severance Benefit Plan, effective May 9, 2024

EX-10.9 2 ibio-20240331xex10d9.htm EX-10.9

Exhibit 10.9

iBio, Inc.

Officer Severance Benefit Plan

Section 1.Introduction.

This iBio, Inc. Officer Severance Benefit Plan (the “Plan”) is hereby adopted effective as of May 9, 2024 (the “Effective Date”). The purpose of the Plan is to provide for the payment of severance benefits to certain eligible executive officers of iBio, Inc. (the “Company”) and its Affiliates that have been designated by the Company on the attached Appendix A as eligible to participate in the Plan (each of the Company and any such Affiliate, a “Participating Employer” and collectively, the “Participating Employers”) in the event such persons experience a Qualifying Termination and who meet the additional criteria set forth in Section 4 of the Plan (each an “Eligible Officer” and collectively “Eligible Officers”). This Plan supplements and does not supersede any other change in control related severance benefit plan, policy or practice maintained by the Company or any Affiliate of the Company for Eligible Officers. This Plan document also is the Summary Plan Description for the Plan.

Section 2.Definitions.

For purposes of this Plan, the following capitalized terms shall have the meanings set forth below:

(a)“Affiliate” means, at the time of determination, any “parent” or “subsidiary” of the Company as such terms are defined in Rule 405 promulgated under the Securities Act.

(b)“Base Salary” shall mean the Eligible Officer’s base pay (excluding incentive pay, premium pay, commissions, overtime, bonuses and other forms of variable compensation), at the rate in effect during the last regularly scheduled payroll period immediately preceding the date of the Eligible Officer’s Qualifying Termination but without giving effect to any reduction in base pay that would permit such Eligible Officer to voluntarily resign employment for Good Reason or any reduction in base pay which occurs following a Sale Event.

(c)“Board” means the Company’s Board of Directors.

(d)“Cause” shall have the meaning ascribed to such term in any written employment or similar agreement between the employee and the Participating Employer defining such term, but in the absence of such agreement such term shall mean, with respect to an employee, the occurrence of any of the following events: (i) the employee’s conviction of any felony or any crime involving fraud or dishonesty; (ii) the employee’s participation in a fraud, act of dishonesty or other act of gross misconduct that adversely affects the Company; (iii) conduct by the employee that demonstrates the employee’s gross unfitness to serve under circumstances that materially and adversely affect the Company; (iv) the employee’s violation of any statutory or fiduciary duty, or duty of loyalty, owed to the Company; (v) the employee’s breach of any material term of any contract between such employee and the Company; and/or (vi) the employee’s serious violation of a material Company policy. The determination that a termination of employment of an employee is either for Cause or without Cause shall be made by the Plan Administrator, in its sole discretion.

(e)“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985.

(f)“Code” means the Internal Revenue Code of 1986, as amended.

(g)“Equity Plan” means the iBio’s 2023 Omnibus Incentive Plan, as amended from time to time.

(h)“Executive Officer” means an executive officer (as that term is defined in Section 16 of Securities Exchange Act of 1934, as amended, and Rule 16a-1(f) promulgated thereunder) of any Participating Employer;

(i)“Good Reason” for an Eligible Officer to resign employment shall mean the occurrence of any of the following events without the Eligible Officer’s consent:

(1)a material reduction by the Company of the employee’s Base Salary, provided, however, that if such reduction is applied proportionately in connection with a Company-wide decrease in executive team compensation prior to a Sale Event, such reduction shall not constitute Good Reason;

(2)a material breach by the Company of the employment agreement by and between the employee and the Company;

(3)the relocation of the employee’s principal place of employment, without the employee’s consent, by fifty (50) or more miles from his or her then-current principal place of employment immediately prior to such relocation; or

(4)a material reduction in the employee’s duties, authority, or responsibilities relative to the employee’s duties, authority, or responsibilities as in effect immediately prior to such reduction;

provided, however, that, any such termination by the employee shall only be deemed for Good Reason pursuant to this definition if: (1) the employee gives the Company written notice of his or her intent to terminate for Good Reason within ten (10) days following the occurrence of the condition(s) that he or she believes constitute(s) Good Reason, which notice shall describe such condition(s); (2) the Company fails to remedy such condition(s) within thirty (30) days following receipt of the written notice (the “Cure Period”); and (3) the employee voluntarily terminates his or her employment within thirty (30) days following the end of the Cure Period. A “Good Reason” condition for resignation is not triggered due to any Participating Employer initiated action to move a person’s employment with a Participating Employer to employment with another Affiliate.

(j)“Involuntary Termination Without Cause” means with respect to a Eligible Officer such Eligible Officer’s dismissal or discharge by the Participating Employer for a reason other than for Cause. The termination of a Eligible Officer’s employment will not be deemed to be an “Involuntary Termination Without Cause” if such Eligible Officer’s termination occurs as a result of such Eligible Officer’s death or disability. An Involuntary Termination Without Cause does not include any Participating Employer initiated action to move a person’s employment with a Participating Employer to employment with another Affiliate.

(k)“Non-Sale Event Related Termination” with respect to an Eligible Officer means such Eligible Officer’s Qualifying Termination that does not occur during the period commencing one (1) month prior to a Sale Event and ending twelve (12) months immediately following a Sale Event.

(l)“Performance-Based Vesting Equity Awards” means stock options, restricted stock, stock units and other equity awards which vest contingent on the attainment of certain performance goals.

(m)“Plan Administrator” has the meaning set forth in Section 12(a).

(n)“Position” means the last position held by the Eligible Officer prior to the Qualifying Termination, as determined without giving effect to any reduction in position following a Sale Event or that would give rise to the Eligible Officer’s right to resign for Good Reason.

(o)“Qualified Plan” means a plan sponsored by a Participating Employer that is intended to be qualified under Section 401(a) of the Code.

(p)“Qualifying Termination” means a resignation for Good Reason or Involuntary Termination Without Cause.

(q)“Sale Event” has the meaning ascribed to such term in the Equity Plan.

(r)“Sale Event Related Termination” with respect to an Eligible Officer means such Eligible Officer’s Qualifying Termination that occurs during the period commencing one (1) month prior to a Sale Event and ending twelve (12) months immediately following a Sale Event.

(s)“Target Bonus” means with respect to an Eligible Officer, the amount of bonus payable under the annual cash bonus plan applicable to such Eligible Officer for the year in which the termination of employment occurs determined as if all the applicable performance goals for such year were attained at a level of 100%.

(t)“Time-Based Vesting Equity Awards” means stock options, restricted stock, stock units and other equity awards which vest solely contingent on the continued services of an Eligible Officer.

Section 3.Eligibility For Benefits.

(a)General Rules. Subject to the requirements set forth in this Section 3, the Company will grant severance benefits under the Plan to Eligible Officers.

(1)Definition of “Eligible Officer.” A person is eligible to participate in the Plan if (i) such person is an Executive Officer, and (ii) such person’s employment with the Participating Employer terminates due to a Qualifying Termination. A Participating Employer ceasing to qualify as an Affiliate upon or following a Sale Event will not disqualify any Executive Officer then employed by such Participating Employer from eligibility for Plan benefits. The determination of whether a person is an Eligible Officer shall be made by the Plan Administrator, in its sole discretion, and such determination shall be binding and conclusive on all persons.

(2)In order to be eligible to receive benefits under the Plan, the Executive Officer must remain on the job until his or her date of termination as scheduled by the Participating Employer.

(3)In order to be eligible to receive benefits under the Plan, the Executive Officer also must execute and deliver to the Company a general waiver and release in the form determined by the Plan Administrator (the “Release”), within the applicable time period set forth therein, but in no event more than sixty (60) days following the date of termination, and such Release must become effective in accordance with its terms. The form of required Release may be incorporated into a separation agreement or other agreement with the employee, and the form of which will be provided to the otherwise Eligible Officer by the Company no more than two (2) days following the date of Qualifying Termination.

(4)If required by the Board, as determined in its discretion, in order to be eligible to receive benefits under the Plan, the Executive Officer also must execute and deliver to the Company a form of Proprietary Information and Inventions Agreement and/or any other proprietary information, confidentiality or non-solicitation or non-competition agreement (collectively the “PIIA”) no later than sixty (60) days following the date of termination. Any form of required PIIA must be approved by the Plan Administrator and attached as an Appendix to the Plan prior to a Sale Event. If any PIIA is required to be provided by an Executive Officer in order to be eligible to receive benefits under the Plan, the Company will notify the Executive Officer and provide the form of required PIAA no more than two (2) days following the date of the Qualifying Termination. Any form of required PIIA cannot be approved or amended by the Company at any time following a Sale Event.

(b)Exceptions to Benefit Entitlement. An Executive Officer who otherwise is an Eligible Officer, will not receive benefits under the Plan (or will receive reduced benefits under the Plan) in the following circumstances, as determined by the Plan Administrator in its sole discretion:

(1)The Executive Officer has executed an individually negotiated employment contract or agreement with a Participating Employer relating to severance benefits that is in effect on his or her Qualifying Termination date, in which case such Executive Officer’s severance benefit, if any, shall be governed by the terms of such individually negotiated employment contract or agreement and shall be governed by this Plan only to the extent that the reduction pursuant to Section 4(c) below does not entirely eliminate benefits under this Plan.

(2)The Executive Officer voluntarily terminates employment with the Participating Employer without Good Reason. Such voluntary terminations include, but are not limited to, resignation without Good Reason, retirement or failure to return from a leave of absence on the scheduled date.

(3)The Executive Officer terminates employment due to death or disability.

(4)The Executive Officer terminates employment in order to accept employment with another entity that is wholly or partly owned (directly or indirectly) by the Company or an Affiliate.

(5)The Executive Officer is offered an identical or substantially equivalent or comparable Position with the Company or an Affiliate. For purposes of the foregoing, a “substantially equivalent or comparable Position” is one that offers the Executive Officer employment terms that would not give rise to the Executive Officer’s right to resign for Good Reason.

(6)The Executive Officer is offered immediate reemployment or continued employment by a successor to the Company or by a purchaser of its assets, as the case may be on terms that would not give rise to the Executive’s right to resign for Good Reason. For purposes of the foregoing, “immediate reemployment or continued employment” means that the Executive Officer’s employment with the successor to the Company or the purchaser of its assets, as the case may be, results in uninterrupted employment such that the Executive Officer does not incur a lapse in pay as a result of the change in ownership of the Company or the sale of its assets.

(7)The Executive Officer is rehired by the Company or an Affiliate prior to the date benefits under the Plan are scheduled to commence on terms that would not give rise to the Executive Officer’s right to resign for Good Reason.

(8)Benefits under this Plan shall terminate immediately if the Executive Officer at any time violates any provision of the Company’s or a Participating Employer’s Proprietary Information and Inventions Agreement or any other proprietary information, confidentiality or non-solicitation obligation to the Company or a Participating Employer.

Section 4.Amount Of Benefit.

(a)Severance Benefits. Severance benefits under the Plan, if any, shall be provided to Eligible Officers who are terminated in a Qualifying Termination as specified on Appendix B.

(b)Additional Benefits. The Board may, in its sole discretion, provide benefits (i) in addition to those pursuant to Section 4(a) to Eligible Officers or (ii) to employees who are not Eligible Officers (“Non-Eligible Officers”) chosen by the Board, in its sole discretion, and the provision of any such benefits to an Eligible Officer or a Non-Eligible Officer shall in no way obligate the Company or the Board to provide such benefits to any other Eligible Officer or to any other Non-Eligible Officer, even if similarly situated. If benefits under the Plan are provided to a Non-Eligible Officer, references in the Plan to “Eligible Officer” shall be deemed to refer to such Non-Eligible Officer.

(c)Certain Reductions.

(1)Mandatory Reductions. Severance benefits provided under the Plan will be reduced, in whole or in part, by other similar benefits payable to the Eligible Officer by the Company and/or the Participating Employer that become payable in connection with the Eligible Officer’s termination of employment pursuant to any change in control, severance, separation pay or similar plan or any written employment or severance agreement between the Eligible Officer and the Company or any Participating Employer.

(2)Discretionary Reductions. The Company, in its sole discretion, shall have the authority to reduce an Eligible Officer’s severance benefits, in whole or in part, by any other severance benefits, pay and benefits provided during a period following written notice of an office closing or mass layoff, pay and benefits in lieu of such notice, or other similar benefits payable to the Eligible Officer by the Company and/or a Participating Employer that become payable in connection with the Eligible Officer’s termination of employment pursuant to (i) any applicable legal requirement, including, without limitation, the Worker Adjustment and Retraining Notification Act or any other similar state law, or (ii) any Company policy or practice providing for the Eligible Officer to remain on the payroll for a limited period of time after being given notice of the termination of the Eligible Officer’s employment, and the Plan Administrator shall so construe and implement the terms of the Plan. Any such reductions that the Company determines to make pursuant to this Section 4(c) shall be made such that any benefit under the Plan shall be reduced solely by any similar type of benefit under such legal requirement, policy or practice (i.e., any cash severance benefits under the Plan shall be reduced solely by any cash payments or severance benefits under such legal requirement, policy or practice, and any continued insurance benefits under the Plan shall be reduced solely by any continued insurance benefits under such legal requirement, policy or practice). The Company’s decision to apply such reductions to the severance benefits of one Eligible Officer and the amount of such reductions shall in no way obligate the Company to apply the same reductions in the same amounts to the severance benefits of any other Eligible Officer, even if similarly situated. In the Company’s sole discretion, such reductions may be applied on a retroactive basis, with severance benefits previously paid being re-characterized as payments pursuant to the Company’s statutory obligation.

(d)Continued Group Health Plan Benefits. Each Eligible Officer who is enrolled in a health, dental, or vision plan sponsored by the Participating Employer may be eligible to continue

coverage under such health, dental, or vision plan (or to convert to an individual policy), at the time of the Eligible Officer’s termination of employment, under COBRA. The Company will notify the Eligible Officer of any such right to continue such coverage at the time of termination pursuant to COBRA. No provision of this Plan will affect the continuation coverage rules under COBRA, except that the Company’s payment, if any, of applicable insurance premiums will be credited, as payment by the Eligible Officer for purposes of the Eligible Officer’s payment required under COBRA. Therefore, the period during which an Eligible Officer may elect to continue the Company’s or its affiliate’s health, dental, or vision plan coverage at his or her own expense under COBRA, the length of time during which COBRA coverage will be made available to the Eligible Officer, and all other rights and obligations of the Eligible Officer under COBRA (except the obligation to pay insurance premiums) will be applied in the same manner that such rules would apply in the absence of this Plan.

(e)Non-Duplication of Benefits. No Eligible Officer is eligible to receive benefits under this Plan more than one time.

Section 5.Return of Company Property.

An Eligible Officer will not be entitled to any severance benefit under the Plan unless and until the Eligible Officer returns all Company Property. For this purpose, “Company Property” means all Company and Affiliate documents (and all copies thereof) and other Company and Affiliate property which the Eligible Officer had in his or her possession at any time, including, but not limited to, Company and Participating Employer files, notes, drawings, records, plans, forecasts, reports, studies, analyses, proposals, agreements, financial information, research and development information, sales and marketing information, operational and personnel information, specifications, code, software, databases, computer-recorded information, tangible property and equipment (including, but not limited to, computers, facsimile machines, mobile telephones, servers), credit cards, entry cards, identification badges and keys; and any materials of any kind which contain or embody any proprietary or confidential information of the Company or any Affiliate (and all reproductions thereof in whole or in part).

Section 6.Time Of Payment And Form Of Benefit.

The timing of payment of severance benefits will be as set forth on Appendix B subject to the provisions of this Section 6. All severance benefits provided under the Plan are intended to satisfy the requirements for an exemption from application of Section 409A of the Code and any ambiguities herein shall be interpreted accordingly.

Notwithstanding anything to the contrary set forth herein or on Appendix B, any payments and benefits provided under the Plan that constitute “deferred compensation” within the meaning of Section 409A of the Code and the regulations and other guidance thereunder and any state law of similar effect (collectively “Section 409A”) shall not commence in connection with an Eligible Officer’s termination of employment unless and until the Eligible Officer has also incurred a “separation from service,” as such term is defined in Treasury Regulations Section 1.409A-1(h) (“Separation from Service”), unless the Company reasonably determines that such amounts may be provided to the Eligible Officer without causing the Eligible Officer to incur the adverse personal tax consequences under Section 409A.

It is intended that (i) each installment of any benefits payable under the Plan to an Eligible Officer be regarded as a separate “payment” for purposes of Treasury Regulations Section 1.409A-2(b)(2)(i), (ii) all payments of any such benefits under the Plan satisfy, to the greatest extent possible, the exemptions from the application of Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9)(iii), and (iii) any such benefits consisting of COBRA premiums also satisfy, to the greatest extent possible, the exemption from the application of Section 409A provided

under Treasury Regulations Section 1.409A-1(b)(9)(v). However, if the Company determines that any such benefits payable under the Plan constitute “deferred compensation” under Section 409A and the Eligible Officer is a “specified employee” of the Company, as such term is defined in Section 409A(a)(2)(B)(i), then, solely to the extent necessary to avoid the imposition of the adverse personal tax consequences under Section 409A, (A) the timing of such benefit payments shall be delayed until the earlier of (1) the date that is six (6) months and one (1) day after the Eligible Officer’s Separation from Service and (2) the date of the Eligible Officer’s death (such applicable date, the “Delayed Initial Payment Date”), and (B) the Company shall (1) pay the Eligible Officer a lump sum amount equal to the sum of the benefit payments that the Eligible Officer would otherwise have received through the Delayed Initial Payment Date if the commencement of the payment of the benefits had not been delayed pursuant to this paragraph and (2) commence paying the balance, if any, of the benefits in accordance with the applicable payment schedule.

In no event shall payment of any benefits under the Plan be made prior to an Eligible Officer’s termination date or prior to the effective date of the Release. Additionally, if the Company determines that any payments or benefits provided under the Plan constitute “deferred compensation” under Section 409A, and the Eligible Officer’s Separation from Service occurs at a time during the calendar year when the Release could become effective in the calendar year following the calendar year in which the Eligible Officer’s Separation from Service occurs, then regardless of when the Release is returned to the Company and becomes effective, the Release will not be deemed effective any earlier than the latest permitted effective date for purposes of determining the timing of payment of severance benefits.

All severance payments under the Plan shall be subject to applicable withholding for federal, state and local taxes. If an Eligible Officer is indebted to the Company at his or her termination date, the Company reserves the right to offset any severance payments under the Plan by the amount of such indebtedness.

Section 7.Application of Internal Revenue Code Section 280G.

(a)If any payment or benefit an Eligible Officer would receive under the Plan from the Company pursuant to a Sale Event or otherwise (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in the Eligible Officer’s receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in a Payment is required pursuant to the preceding sentence and the Reduced Amount is determined pursuant to clause (x) of the preceding sentence, the reduction shall occur in the manner (the “Reduction Method”) that results in the greatest economic benefit for the Eligible Officer. If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”).

(b)Notwithstanding any provision of paragraph (a) to the contrary, if the Reduction Method or the Pro Rata Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A of the Code that would not otherwise be subject to taxes pursuant to Section 409A of the Code, then the Reduction Method and/or the Pro Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A of the Code as follows: (A) as a first priority, the modification shall preserve to the greatest extent possible, the greatest economic benefit for the Eligible Officer as determined on an after-tax basis; (B) as a second priority, Payments that

are contingent on future events (e.g., being terminated without cause), shall be reduced (or eliminated) before Payments that are not contingent on future events; and (C) as a third priority, Payments that are “deferred compensation” within the meaning of Section 409A of the Code shall be reduced (or eliminated) before Payments that are not deferred compensation within the meaning of Section 409A of the Code.

(c)In the event it is subsequently determined by the Internal Revenue Service that some portion of the Reduced Amount as determined pursuant to clause (x) in paragraph (a) is subject to the Excise Tax, the Eligible Officer agrees to promptly return to the Company a sufficient amount of the Payment so that no portion of the Reduced Amount is subject to the Excise Tax. For the avoidance of doubt, if the Reduced Amount is determined pursuant to clause (y) in paragraph (a), the Eligible Officer will have no obligation to return any portion of the Payment pursuant to the preceding sentence.

(d)The accounting firm engaged by the Company for general tax compliance purposes as of the day prior to the effective date of the Sale Event shall perform the foregoing calculations unless otherwise determined by the Company. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the Sale Event, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder.

(e)The Company shall use commercially reasonable efforts to cause the accounting firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, within fifteen (15) calendar days after the date on which the Eligible Officer’s right to a Payment is triggered or such other time as requested by the Company.

Section 8.Reemployment.

In the event of an Eligible Officer’s reemployment by the Company or an Affiliate during the period of time in respect of which severance benefits provided under the Plan have been paid, the Company, in its sole and absolute discretion, may cease payment of future severance benefits under the Plan as a condition of reemployment.

Section 9.Right To Interpret Plan; Amendment and Termination.

(a)Exclusive Discretion. The Plan Administrator shall have the exclusive discretion and authority to establish rules, forms, and procedures for the administration of the Plan and to construe and interpret the Plan and to decide any and all questions of fact, interpretation, definition, computation or administration arising in connection with the operation of the Plan, including, but not limited to, the eligibility to participate in the Plan and amount of benefits paid under the Plan. The rules, interpretations, computations and other actions of the Plan Administrator shall be binding and conclusive on all persons.

(b)Amendment or Termination. The Company reserves the right to amend or terminate this Plan (including Appendix A and Appendix B and any form of required PIIA) or the benefits to be provided hereunder at any time prior to a Sale Event; provided, however, that no such amendment or termination shall adversely affect the rights of any Executive Officer who has experienced a Qualifying Termination prior to the date of such Plan amendment or Plan termination. Any action amending or terminating the Plan or adopting or amending any required form of PIIA shall be approved by the Board prior to a Sale Event. The Plan may not be amended or terminated following a Sale Event and any required form of PIIA may not be adopted or amended following a Sale Event.

Section 10.No Implied Employment Contract.

The Plan shall not be deemed (i) to give any Executive Officer or other person any right to be retained in the employ of the Company or a Participating Employer or (ii) to interfere with the right of a Participating Employer to discharge any employee or other person at any time, with or without cause, which right is hereby reserved.

Section 11.Legal Construction.

This Plan is intended to be governed by and shall be construed in accordance with the Employee Retirement Income Security Act of 1974 (“ERISA”) and, to the extent not preempted by ERISA, the laws of the State of North Carolina.

Section 12.Claims, Inquiries And Appeals.

(a)Applications for Benefits and Inquiries. Any application for benefits, inquiries about the Plan or inquiries about present or future rights under the Plan must be submitted to the Plan Administrator in writing by an applicant (or his or her authorized representative). The Plan Administrator is:

iBio, Inc.

11750 Sorrento Valley Road

Suite 200

San Diego, CA 92121

(b)Denial of Claims. In the event that any application for benefits is denied in whole or in part, the Plan Administrator must provide the applicant with written or electronic notice of the denial of the application, and of the applicant’s right to review the denial. Any electronic notice will comply with the regulations of the U.S. Department of Labor. The notice of denial will be set forth in a manner designed to be understood by the applicant and will include the following:

(1)the specific reason or reasons for the denial;

(2)references to the specific Plan provisions upon which the denial is based;

(3)a description of any additional information or material that the Plan Administrator needs to complete the review and an explanation of why such information or material is necessary; and

(4)an explanation of the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the applicant’s right to bring a civil action under Section 502(a) of ERISA following a denial on review of the claim, as described in Section 10(d) below.

This notice of denial will be given to the applicant within ninety (90) days after the Plan Administrator receives the application, unless special circumstances require an extension of time, in which case, the Plan Administrator has up to an additional ninety (90) days for processing the application. If an extension of time for processing is required, written notice of the extension will be furnished to the applicant before the end of the initial ninety (90) day period.

This notice of extension will describe the special circumstances necessitating the additional time and the date by which the Plan Administrator is to render its decision on the application.

(c)Request for a Review. Any person (or that person’s authorized representative) for whom an application for benefits is denied, in whole or in part, may appeal the denial by submitting a request for a review to the Plan Administrator within sixty (60) days after the application is denied. A request for a review shall be in writing and shall be addressed to:

iBio, Inc.

11750 Sorrento Valley Road

Suite 200

San Diego, CA 92121

A request for review must set forth all of the grounds on which it is based, all facts in support of the request and any other matters that the applicant feels are pertinent. The applicant (or his or her representative) shall have the opportunity to submit (or the Plan Administrator may require the applicant to submit) written comments, documents, records, and other information relating to his or her claim. The applicant (or his or her representative) shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to his or her claim. The review shall take into account all comments, documents, records and other information submitted by the applicant (or his or her representative) relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

(d)Decision on Review. The Plan Administrator will act on each request for review within sixty (60) days after receipt of the request, unless special circumstances require an extension of time (not to exceed an additional sixty (60) days), for processing the request for a review. If an extension for review is required, written notice of the extension will be furnished to the applicant within the initial sixty (60) day period. This notice of extension will describe the special circumstances necessitating the additional time and the date by which the Plan Administrator is to render its decision on the review. The Plan Administrator will give prompt, written or electronic notice of its decision to the applicant. Any electronic notice will comply with the regulations of the U.S. Department of Labor. In the event that the Plan Administrator confirms the denial of the application for benefits in whole or in part, the notice will set forth, in a manner calculated to be understood by the applicant, the following:

(1)the specific reason or reasons for the denial;

(2)references to the specific Plan provisions upon which the denial is based;

(3)a statement that the applicant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to his or her claim; and

(4)a statement of the applicant’s right to bring a civil action under Section 502(a) of ERISA.

(e)Rules and Procedures. The Plan Administrator will establish rules and procedures, consistent with the Plan and with ERISA, as necessary and appropriate in carrying out its responsibilities in reviewing benefit claims. The Plan Administrator may require an applicant who wishes to submit additional information in connection with an appeal from the denial of benefits to do so at the applicant’s own expense.

(f)Exhaustion of Remedies. No legal action for benefits under the Plan may be brought until the applicant (i) has submitted a written application for benefits in accordance with the procedures described by Section 12(a) above, (ii) has been notified by the Plan Administrator that the

10.

application is denied, (iii) has filed a written request for a review of the application in accordance with the appeal procedure described in Section 12(c) above, and (iv) has been notified that the Plan Administrator has denied the appeal. Notwithstanding the foregoing, if the Plan Administrator does not respond to a Participant’s claim or appeal within the relevant time limits specified in this Section 12, the Participant may bring legal action for benefits under the Plan pursuant to Section 502(a) of ERISA.

Section 13.Basis Of Payments To And From Plan.

The Plan shall be unfunded, and all cash payments under the Plan shall be paid only from the general assets of the Company.

Section 14.Other Plan Information.

(a)Employer and Plan Identification Numbers. The Employer Identification Number assigned to iBio, Inc. (which is the “Plan Sponsor” as that term is used in ERISA) by the Internal Revenue Service is 26-27997813. The Plan Number assigned to the Plan by the Plan Sponsor pursuant to the instructions of the Internal Revenue Service is 501.

(b)Ending Date for Plan’s Fiscal Year. The date of the end of the fiscal year for the purpose of maintaining the Plan’s records is June 30.

(c)Agent for the Service of Legal Process. The agent for the service of legal process with respect to the Plan is:

Corporate Secretary

iBio, Inc.

11750 Sorrento Valley Road

Suite 200

San Diego, CA 92121

In addition, service of legal process may be made upon the Plan Administrator.

(d)Plan Sponsor and Administrator. The “Plan Sponsor” and the “Plan Administrator” of the Plan is:

iBio, Inc.

11750 Sorrento Valley Road

Suite 200

San Diego, CA 92121

The Plan Sponsor’s and Plan Administrator’s telephone number is ###-###-####. The Plan Administrator is the named fiduciary charged with the responsibility for administering the Plan.

Section 15.Statement Of ERISA Rights.

Participants in this Plan (which is a welfare benefit plan sponsored by [Company]) are entitled to certain rights and protections under ERISA. If you are an Eligible Officer, you are considered a participant in the Plan and, under ERISA, you are entitled to:

(a)Receive Information About Your Plan and Benefits

11.

(1)Examine, without charge, at the Plan Administrator’s office and at other specified locations, such as worksites, all documents governing the Plan and a copy of the latest annual report (Form 5500 Series), if applicable, filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration;

(2)Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan and copies of the latest annual report (Form 5500 Series), if applicable, and an updated (as necessary) Summary Plan Description. The Administrator may make a reasonable charge for the copies; and

(3)Receive a summary of the Plan’s annual financial report, if applicable. The Plan Administrator is required by law to furnish each participant with a copy of this summary annual report.

(b)Prudent Actions by Plan Fiduciaries. In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate the Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employer, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a Plan benefit or exercising your rights under ERISA.

(c)Enforce Your Rights. If your claim for a Plan benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of Plan documents or the latest annual report from the Plan, if applicable, and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator.

If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court.

If you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

(d)Assistance with Your Questions. If you have any questions about the Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.

12.

Appendix A

iBio

Officer Severance Benefit Plan

The Participating Employer entities in the Officer Severance Benefit Plan are as follows:

iBio, Inc., a Delaware corporation

All majority-owned subsidiaries of the Company that are incorporated in the United States and which were not acquired by the Company in exchange for consideration in a share purchase, merger, or similar corporate transaction

The foregoing list of Participating Employers is subject to such change as the Company, pursuant to Section 9 of the Plan, may determine in its sole and absolute discretion at any time prior to a Sale Event. Any such change to the Participating Employers shall be set forth in a revised version of this Appendix A approved by the Board. This Appendix A may not be amended at any time following a Sale Event.

Appendix B

iBio

Officer Severance Benefit Plan

Capitalized terms used herein have the definitions set forth in the Plan. Subject to the exceptions set forth in Section 3(b) of the Plan, each Executive Officer who is terminated in a Qualifying Termination and meets all the requirements set forth in Sections 3(a) and 5 of the Plan, including, without limitation, timely provision of an effective Release and any required PIIA, and who therefore is an Eligible Officer shall receive severance benefits as set forth in this Appendix B.

Qualifying Termination Benefits

1.	Cash Severance Benefits.

Base Salary. A cash severance benefit equal to the number of months of the Eligible Officer’s Base Salary as determined based on the Eligible Officer’s Position with the Company, as set forth below. Such cash severance benefit will be paid in equal installments in accordance with the Participating Employer’s regular payroll procedures over the monthly period following the date of the Qualifying Termination as indicated in the table below (the “Severance Period”), subject to any delay in payment required by Section 6 of the Plan including any delay necessary so that no payments are made prior to the effectiveness of the Release or provision of any required PIIA; provided, however, that to the extent such cash severance benefits are exempt from Section 409A, the Company retains the right to elect to instead pay such amounts in a single lump sum within the 30 day period following the later of effectiveness of the Release or provision of any required PIIA to the extent approved by the Plan Administrator.

Position

Sale Event Related Termination

Months of Base Salary

Non-Sale Event Related Termination

Months of Base Salary

Chief Executive Officer

Other Executive Officers

Bonus. A cash severance benefit equal to the applicable percentage of the Eligible Officer’s Target Bonus as determined based on the Eligible Officer’s Position with the Company, as set forth below. Such cash severance benefit will be paid in a single lump sum cash payment on the first payroll date following the date of the Qualifying Termination, subject to any delay in payment required by Section 6 of the Plan including any delay necessary so that no payments are made prior to the effectiveness of the Release.

Position

Sale Event Related Termination

Target Bonus Percentage

Non-Sale Event Related Termination

Target Bonus Percentage

Chief Executive Officer

150%

100%

Pro-Rata during Fiscal Year of the Qualifying Termination

Other Executive Officers

100%

Pro-Rata during Fiscal Year of the Qualifying Termination

COBRA Premium Benefit. If the Eligible Officer timely elects continued coverage under COBRA, the Participating Employer shall pay the full amount of the Eligible Officer’s COBRA premiums, or shall provide coverage under any self-funded plan, on behalf of the Eligible Officer for the Eligible Officer’s continued coverage under the Participating Employer’s group health plans, including coverage for the Eligible Officer’s eligible dependents, for the period commencing with the first calendar month following the Qualifying Termination and continuing through the end of the calendar month that includes the last day of the Severance Period (the “COBRA Payment Period”); provided, however, that no such premium payments shall be made, and no coverage shall be provided under any group health plan, following the Eligible Officer’s death or the effective date of the Eligible Officer’s coverage by a group health plan of a subsequent employer. Each Eligible Officer shall be required to notify the Participating Employer immediately if the Eligible Officer becomes covered by a group health plan of a subsequent employer. Upon the conclusion of such period of insurance premium payments made by the Participating Employer, the Eligible Officer will be responsible for the entire payment of premiums required under COBRA for the remainder of the COBRA period, if any.

Notwithstanding the foregoing, if the Participating Employer determines, in its sole discretion, that the Participating Employer cannot provide the COBRA premium benefits without potentially incurring financial costs or penalties under applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Participating Employer shall in lieu thereof pay the Eligible Officer a taxable cash amount, which payment shall be made regardless of whether the Eligible Officer or his or her eligible dependents elect health care continuation coverage (the “Health Care Benefit Payment”). The Health Care Benefit Payment shall be paid in monthly or bi-weekly installments on the same schedule that the COBRA premiums would otherwise have been paid to the insurer. The Health Care Benefit Payment shall be equal to the amount that the Participating Employer otherwise would have paid for COBRA insurance premiums (which amount shall be calculated based on the premium for the first month of coverage), and shall be paid until the earlier of (i) the expiration of the COBRA Payment Period, or (ii) the effective date of the Eligible Officer’s coverage by a group health plan of a subsequent employer.

For purposes of this Section 2, (i) references to COBRA shall be deemed to refer also to analogous provisions of state law and (ii) any applicable insurance premiums that are paid by the Participating Employer shall not include any amounts payable by the Eligible Officer under an Internal Revenue Code Section 125 health care reimbursement plan, which amounts, if any, are the sole responsibility of the Eligible Officer.

Sale Event Related Termination Equity Vesting Benefits. (i) The vesting and exercisability of all outstanding Time-Based Vesting Equity Awards and Performance-Based Vesting Equity Awards (together, “the “Equity Awards”) that are held by the Eligible Officer on such date shall be accelerated in full as of the date of such Sale Event Related Termination, (ii) any reacquisition or repurchase rights held by the Company in respect of common stock issued pursuant to any other Equity Awards granted to the Eligible Officer by the Company shall lapse in full as of the date of such Sale Event Related Termination, and (iii) the vesting of any other Equity Awards granted to the Eligible Officer by the Company, and any issuance of shares triggered by the vesting of such Equity Awards, shall be accelerated in full as of the date of such Sale Event Related Termination. For purposes of determining the number of shares that will vest pursuant to this provision with respect to any Performance-Based Vesting Equity Awards for which the performance period has not ended and that has multiple vesting levels depending upon the level of performance, vesting acceleration with respect to any ongoing performance period(s) shall occur with respect to the number of shares subject to the award as if the applicable performance criteria had been attained at a 100% level or, if greater, based on actual performance as of the Sale Event Related Termination. Notwithstanding the foregoing, this Section 3 shall not apply to common stock issued under or held in any Qualified Plan.

4.	Reductions Pursuant to Section 4(c) of the Plan. The severance benefits set forth in this Appendix B are subject to certain reductions under Section 4(c) of the Plan.