Document:

Exhibit 10.26  

         

  

CONSULTING AGREEMENT  

THIS
CONSULTING AGREEMENT ("AGREEMENT") is made effective the 1st day of July, 2006 (the "'Effective Date"). 

BETWEEN:

BIOMIRA INC.
  2011 - 94th Street

Edmonton, Alberta, Canada

T6N 1H1 

("COMPANY")

and

T.
A. McPherson Professional Corporation

10325 Villa Avenue

Edmonton, Alberta, Canada

T5N 3T8 

("CONSULTANT") 

WHEREAS: 

	A.
	COMPANY
desires to retain the consulting services of the CONSULTANT as required from time to time during the term of this AGREEMENT.

	B.
	CONSULTANT
has advised COMPANY of its willingness, ability and desire to provide consulting services to the COMPANY on a requirements, but non-exclusive basis. 

NOW
THEREFORE, in consideration of the foregoing recitals and the terms, conditions and covenants contained herein, it is hereby agreed as follows: 

	1.
	Engagement.

COMPANY
hereby engages CONSULTANT and CONSULTANT hereby agrees to hold itself available to render and to render at the request of the COMPANY, non-exclusive, independent advisory and
consulting services (Services") to the best of its ability, in compliance with all applicable laws, the COMPANY'S Articles of Incorporation and Bylaws, and the terms and conditions set forth herein. 

	2.
	Term.

The
term of this AGREEMENT shall commence on the Effective Date and shall continue for 24 (twenty four) consecutive months. 

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	3.
	Services.

CONSULTANT
agrees to hold itself available to render, and to render at the request of the COMPANY from time to time, Services to the COMPANY, which include, without limitation, providing
organizational advice related to the business of Biomira. 

CONSULTANT
further agrees to render such Services conscientiously and to devote its reasonable efforts and abilities thereto, at such time during the term hereof, and in such reasonable manner, as
COMPANY and CONSULTANT shall mutually agree, it being acknowledged that CONSULTANT's Services shall be on a non-exclusive basis and performed at such places and at such times as are
convenient to CONSULTANT. CONSULTANT further agrees to observe all policies and directives promulgated from time to time by COMPANY's Board of Directors or Officers. 

The
parties agree that the anticipated amount of time CONSULTANT shall provide Services is a maximum of ten (10) days per month. However, if CONSULTANT's actual time of provision of Services is
less than ten (10) days per month, COMPANY agrees to pay CONSULTANT the full compensation for that month as noted in clause 4 below. 

In
the event that the company, for any reason, terminates this agreement prior to its expiry date, the full amount of compensation and payment provided under this agreement shall be payable to
CONSULTANT within 30 days of the termination of the agreement by the company, as liquidated damages. 

	4.
	Compensation and Payment.

CONSULTANT
shall receive as compensation for the performance of all Services hereunder the sum of Twenty Three Thousand Eight Hundred and Seventy Five Dollars and Sixty Three
Cents
($23,875.63) Canadian per month for the duration of the Term of the Agreement (first payment shall be in December 2006) plus G.S.T. if applicable. 

The
compensation and payment provided for in this agreement shall continue to the expiry date notwithstanding the occurrence of either the death or disability of the principal of CONSULTANT,
Dr. T. Alexander McPherson. 

CONSULTANT
shall submit an invoice to COMPANY providing details of Services performed and country, if other than Canada, where Services were performed. Amounts will be paid as due. Save and except
applicable withholdings detailed in the next paragraph, such compensation shall be payable without deduction, including no deduction for income taxes, unemployment insurance, pension plan, social
security, or other benefits. 

If
applicable, CONSULTANT shall include current GST registration number on each invoice. In the event that CONSULTANT has obtained exemption from GST registration, CONSULTANT shall provide
documentation stating such exemption. 

	5.
	Expenses.

If
applicable, CONSULTANT shall be reimbursed for all reasonable business expenses incurred by CONSULTANT during the term of the AGREEMENT on behalf of the COMPANY in performance of Services
hereunder, upon compliance with the policies of the COMPANY relating to reimbursement of such expenses. CONSULTANT is required to submit itemized requests for reimbursement of such expenditures
supported by sufficient documentation of the expenditures and explanation of their purpose. 

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	6.
	Independent Contractor.

It
is expressly agreed that CONSULTANT is acting as an independent contractor in performing its Services hereunder. The COMPANY shall carry no Worker's Compensation Insurance or any health or accident
insurance to cover CONSULTANT or any of its employees. The COMPANY shall not pay any
contribution to Canada Pension Plan and/or Social Security, Unemployment Insurance, nor provide any other contributions or benefits which might be expected in an employer-employee relationship. 

CONSULTANT
agrees to report and pay any contributions for taxes, Unemployment Insurance, Canada Pension Plan and/or Social Security and other benefits for itself and its own employees all in
accordance with the laws of the Government of Canada. 

	7.
	Disclosure of Information.

CONSULTANT
shall not disclose or appropriate to its own use, or to the use of any third party, at any time during or subsequent to the term of this AGREEMENT, any secret or confidential information of
the COMPANY or any of the COMPANY affiliates or subsidiaries of which CONSULTANT becomes informed during such period, whether or not developed by CONSULTANT, including, but not limited to, information
pertaining to customer lists, services, methods, processes, and operating procedures, except as required in connection with CONSULTANT's performance of the AGREEMENT or as required by a governmental
authority. Upon expiry of this AGREEMENT, CONSULTANT shall promptly deliver to the COMPANY all manuals, letters, notes, notebooks, reports and all other materials of a secret or confidential nature or
under the control of the CONSULTANT. The COMPANY shall have the right to obtain injunctive relief for violation of the terms of this section (section 7) and the terms of this section
(section 7) shall survive the term of this AGREEMENT. 

	8.
	Inventions, Discoveries.

CONSULTANT
shall disclose promptly to the COMPANY or its nominee, any and all inventions, discoveries and improvements conceived or made by CONSULTANT during the term of this AGREEMENT and related to
the business or activities of the COMPANY or any of its subsidiaries or affiliates, and hereby assigns and agrees to assign all his interest therein to the COMPANY or its nominee. Whenever requested
to do so by the COMPANY, CONSULTANT shall execute any and all applications, assignments or other instruments or any foreign country or to protect otherwise the COMPANY's interest therein. The
obligation in this section (section 8) shall be binding upon CONSULTANT's assigns, executors, administrators and other legal representatives. The COMPANY shall have the right to obtain
injunctive relief for violation of the terms of this section (section 8) and the terms of this section (section 8) shall survive the term of this AGREEMENT. 

	9.
	Assignment.

This
AGREEMENT is personal between COMPANY and CONSULTANT, and neither COMPANY nor CONSULTANT may sell, assign, transfer or hypothecate any rights or interest created under this AGREEMENT or delegate
any of their duties without the prior written consent of the other. Any such assignment or delegation of either party hereunder without such consent shall be void. Notwithstanding this section
(section 9), the COMPANY may assign this AGREEMENT to an affiliate COMPANY. 

	10.
	Indemnity.

CONSULTANT
shall defend, indemnify and hold harmless COMPANY, its officers, directors, employees, affiliates, and agents from any loss, claim, damage or liability of any kind caused by or arising out
of any negligent or willful act or omission of the CONSULTANT under this 

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AGREEMENT,
which may arise from or be connected with the provision of Services or in compliance with its covenants. 

	11.
	Debarment.

CONSULTANT
represents and warrants that: 

	(a)
	CONSULTANT
has not been debarred and is not subject to debarment under section 306 of the United States Food, Drug, and Cosmetic Act (21 USC 355a) or comparable provision of
any other applicable law, and

	(b)
	CONSULTANT
will not, in connection with this AGREEMENT, employ or contract with any natural or legal person that has been debarred or subject to debarment under section 306 of
the United States Food, Drug, and Cosmetic Act (21 USC 355a) or comparable provision of any other applicable law. 

	12.
	Further Assurances.

The
parties hereto agree to perform any further acts and to execute and deliver any further documents which may be necessary or appropriate to carry out the purposes of this AGREEMENT. 

	13.
	Severability.

If
any provision of this AGREEMENT is held to be unenforceable, invalid or illegal by any court of competent jurisdiction, such unenforceable, invalid or illegal provisions shall not affect the
remainder of this AGREEMENT. 

	14.
	Entire Agreement. 

This
instrument contains the entire agreement of the parties. It may not be changed orally but only in writing signed by both parties. Notwithstanding the above, any Confidentiality Agreement entered
into by the parties will still be in effect. 

	15.
	Laws. 

The
validity of this AGREEMENT and the interpretation and performance of all of its terms shall be governed by the substantive laws of the Province of Alberta. 

	16.
	Waiver. 

Failure
of either party hereto to insist upon strict compliance with any of the terms, covenants and conditions hereof shall not be deemed a waiver or relinquishment of any similar right or power
hereunder at any subsequent time or of any other provision hereof. 

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	17.
	Notices. 

Any
notice required or permitted to be given under this AGREEMENT shall be sufficient if in writing and if sent by personal delivery or by certified mail, return receipt requested, to the parry to
whom notice should be given at the address set forth below: 

	COMPANY:	 	Biomira Inc.

2011 - 94th Street

Edmonton, Alberta, Canada

T6N 1H1
	

 	
 	

Attention:	
 	

Robert L. Kirkman, MD

President & CEO
	

CONSULTANT:	
 	

T. Alexander McPherson Professional Corporation

10325 Villa Avenue

Edmonton, Alberta

T5N 3T8

Notice
shall be deemed effective upon receipt, if made by personal delivery, or upon deposit in mail. 

	18.
	Attorney's Fees. 

If
any legal action or any arbitration or other proceeding is brought for the enforcement of this AGREEMENT, or because of an alleged dispute, breach or default in connection with any of the
provisions of this AGREEMENT, the successful or prevailing party shall be entitled to recover reasonable attorney's fees incurred in this action or proceeding in addition to any other relief to which
he or it may be entitled. 

IN
WITNESS WHEREOF, the COMPANY has caused this AGREEMENT to be signed by its corporate officer thereunto duly authorized, and the CONSULTANT has signed this AGREEMENT, all as of the date first above
written. 

	BIOMIRA INC.	 	 
	

By:	
 	
Christopher S. Henney, PhD
 Christopher S. Henney, PhD

Chairman	
 	

    
 Date
	

By:	
 	
Robert L. Kirkman
	
 	

12/6/06

	 	 	Robert L. Kirkman

President & CEO	 	Date
	
CONSULTANT	
 	

 
	
Dr. T. A. McPherson
	
 	

December 8, 2006

	Dr. T. A. McPherson	 	Date

5Exhibit 10.27  

         

  

Personal & Confidential

Without Prejudice

Delivered by E-Mail  

August 29, 2006 

Robert
Kirkman 

Dear
Bob: 

I
am pleased to offer you the full-time Edmonton based position of President & Chief Executive Officer at Biomira Inc. 

The
following confirms our offer: 

	1.
	Salary: Your salary will be US$ 320,000 per annum and will be reviewed annually.
Salaries are paid twice a month, by direct deposit, on the 15th and the second last banking day of each month.

	2.
	Variable Pay: You will be eligible for variable pay at the 50% (fifty percent) Target
level. The Variable Pay plan is governed by the "Biomira Inc. (Canada) Employee Incentive Program" document and the terms of this document will govern. Goals for the plan are established at the
beginning of the year, and payment is made following the close of the year.

	3.
	Signing Bonus: Biomira will pay a signing bonus of US$ 100,000. If you resign within one
year of receiving the bonus, the entire amount is repayable. If you resign within two years of receiving the bonus one-half of the amount will be repayable to the company.

	4.
	Stock Options: You are eligible to participate in Biomira's non-qualified
Stock Option Plan. The plan is governed by the "Biomira Inc. Amended and Restated Share Option Plan (the "Option Plan") and the terms of this document will govern. A total of 2,700,000 optioned
shares of the Company (the "Option") were granted at the Board of Directors meeting on August 28, 2006 contingent upon you signing this offer letter. The Grant Date (as such term is defined in
the Option Plan) of the Option shall be the date upon which you sign this offer letter, in accordance with the resolution passed at the Board of Directors meeting. This grant is subject to compliance
with any regulatory authorities and requirements.

	

	The
options will vest 1/3 per year over 3 years, and will expire 8 years after issue. 

BIOMIRA INC. 2011 - 94 St. Edmonton, AB, Canada T6N 1H1 Tel: (780) 450-3761 Fax:
(780) 463-08971

http://www.biomira.com 

 

	

	During
your first year of employment if more shares of the Company are issued for financing or expanding the business purposes, you will be granted an
option to purchase a number of shares equal to 3% of the amount issued in the form of optioned shares. This is subject to compliance with any regulatory authorities and requirements.

	

	In
the event of a change of control, the following will apply with respect to options:

	•
	If
the change of control happens prior to September 1st, 2007, any unvested options up to 1/2 of the initial grant will vest immediately;

	•
	If
the change of control happens after September 1st, 2007, any unvested options will vest immediately.

 

	5.
	Severance: In the event your employment is terminated for reasons other than "cause" as
the term is interpreted according to the laws of the Province where you were based immediately prior to your termination severance will apply.

	

	"Cause"
for the purpose of this agreement shall include but not be limited to (i) willful engaging in illegal conduct or gross misconduct which is
injurious to the Company or an affiliated company, (ii) being convicted of, or entering a plea of nolo contendere or guilty to, a felony or a
crime of moral turpitude; (iii) engaging in fraud, misappropriation, embezzlement or any other act or acts of dishonesty resulting or intended to result directly or indirectly in a gain or
personal enrichment to you at the expense of the Company or an affiliated company, (iv) material breach of any written policies of the Company or an affiliated company, or (v) willful
and continual failure substantially to perform your duties with the Company, which failure has continued for a period of at least 30 days after written notice by the Company.

	

	In
the event of severance or if there is a "change of control" as defined in "Exhibit A" of the Option Plan, the following will apply:

	i)
	Lump sum payment of one year's base salary, less required withholding,

	ii)
	Lump sum payment equivalent of variable pay at target for one year following termination, less required withholding, and,

	iii)
	Stock options will follow the schedule detailed in item 4.

 

	6.
	Temporary Accommodations: Biomira will provide a studio apartment for a period of
2 years and pay out of pocket travel costs between Seattle and Edmonton. This 2 year period covers the period where you are commuting to work in Edmonton as CEO of our Company.

	7.
	Vacation: We will provide an annual vacation of 4 (four) weeks.

	8.
	Employee Benefit Plan: You will become eligible for our US benefit plan. The plan
provides extended health care, dental, life insurance, accidental death & dismemberment, and long-term disability coverage. These plans are governed by various plan documents which
are provided by the Company's benefits carrier.

	9.
	Retirement Savings Plan: You will become eligible for Biomira matching contributions
into the company's 401(k) plan. Biomira will match your contributions into the plan, up to a maximum of 3% of your monthly gross salary (subject to maximums as deemed by law). Contributions to this
plan are made through payroll deductions. This plan is governed by plan documents provided by our carrier for this benefit.

	10.
	Confidentiality Agreement: To protect the company's proprietary interests, all of
Biomira's employees are required to sign a Confidentiality Agreement as a condition of employment. 

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	11.
	Health and Safety: Biomira is vitally interested in the health and safety of all
workers and is conducting its business in an environmentally responsible manner. Protection of employees from injury at the workplace and occupational disease, while ensuring that business is
conducted in an environmentally responsible manner are continuing objectives. As part of our policy promoting the safety of our staff and the products they manufacture, as a condition of our
employment and continued employment, you will be required to comply with all health assessment and medical testing relevant to your position.

	12.
	Debarment: As a condition of employment and to protect the company's interests, you
hereby certify that you have not been debarred and are not subject to debarment under section 306 of the United State Food, Drug, and Cosmetic Act (21 USC 355a) or comparable provision of any
other applicable law.

	13.
	Working Visa: This offer is subject you being able to obtain a visa to work in Canada.
The Company will aid you in obtaining a work visa.

	14.
	Tax Minimization: Subject to tax advice, Biomira will structure your total compensation
to minimize the tax effect of residing in the U.S. while working full-time in Canada.

	15.
	Other Terms & Conditions: This offer letter fully conveys the details of our
offer. All other terms and conditions of employment not mentioned herein are consistent with Biomira Inc.'s corporate policies.

	16.
	Commencement Date: For your duties in conjunction with this offer of employment, the
commencement date for this position is September 5th, 2006. 

        We
look forward to you joining our team at Biomira. To confirm acceptance, please sign below, retain a copy for your records, and return the original to me. If you have any questions,
please do not hesitate to contact me. 

Sincerely,

	/s/ Eric E. Baker
 Eric E. Baker

Chairman of the Board	 	 
	

Accepted this 29th day of August, 2006
	

/s/ Robert Kirkman
 Robert Kirkman	
 	

 

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