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Exhibit 10.1  

 
  ONCOTHYREON INC.    
    
    INDEMNIFICATION AGREEMENT    
    

        THIS AGREEMENT is entered into, effective as
of                        , 20    by and between Oncothyreon Inc., a Delaware corporation (the
"Company"), and                        ("Indemnitee"). 

        WHEREAS,
it is essential to the Company to retain and attract as directors and officers the most capable persons available; 

        WHEREAS,
Indemnitee is a director and/or officer of the Company; 

        WHEREAS,
both the Company and Indemnitee recognize the increased risk of litigation and other claims currently being asserted against directors and officers of corporations; 

        WHEREAS,
the Certificate of Incorporation and Bylaws of the Company require the Company to indemnify and advance expenses to its directors and officers to the fullest extent permitted
under Delaware law, and the Indemnitee has been serving and continues to serve as a director and/or officer of the Company in part in reliance on the Company's Certificate of Incorporation and Bylaws;
and 

        WHEREAS,
in recognition of Indemnitee's need for (i) substantial protection against personal liability based on Indemnitee's reliance on the aforesaid Certificate of Incorporation
and Bylaws, (ii) specific contractual assurance that the protection promised by the Certificate of Incorporation and Bylaws will be available to Indemnitee (regardless of, among other things,
any amendment to or revocation of the Certificate of Incorporation and Bylaws or any change in the composition of the Company's Board of Directors or acquisition transaction relating to the Company)
and (iii) an inducement to provide effective services to the Company as a director and/or officer, the Company wishes to provide in this Agreement for the indemnification of and the advancing
of expenses to Indemnitee to the fullest extent
(whether partial or complete) permitted under Delaware law and as set forth in this Agreement, and, to the extent insurance is maintained, to provide for the continued coverage of Indemnitee under the
Company's directors' and officers' liability insurance policies. 

        NOW,
THEREFORE, in consideration of the above premises and of Indemnitee continuing to serve the Company directly or, at its request, with another enterprise, and intending to be legally
bound hereby, the parties agree as follows: 

        1.    Certain Definitions:    

        (a)   "Board" shall mean the Board of Directors of the Company. 

        (b)   "Affiliate" shall mean any corporation or other person or entity that directly, or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with, the person specified, including, without limitation, with respect to the Company, any direct or indirect subsidiary of the
Company. 

        (c)   A
"Change in Control" shall be deemed to have occurred if (i) any "person" (as such term is used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) (other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company,
and other than any person holding shares of the Company on the date that the Company first registers under the Act or any transferee of such individual if such transferee is a spouse or lineal
descendant of the transferee or a trust for the benefit of the individual, his or her spouse or lineal descendants), is or becomes the "beneficial owner" (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company representing 30% or more of the total voting power represented by the Company's then outstanding Voting Securities,
(ii) during any period of two consecutive years, individuals who at the beginning of such period constitute the Board and any new director whose election by the Board or nomination for election
by the Company's stockholders was approved by a 

 

vote
of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election
was previously so approved, cease for any reason to constitute a majority of the Board, (iii) the stockholders of the Company approve a merger or consolidation of the Company with any other
entity, other than a merger or consolidation that would result in the Voting Securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or
by being converted into Voting Securities of the surviving entity) at least 80% of the total voting power represented by the Voting Securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation or (iv) the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the
Company (in one transaction or a series of transactions) of all or substantially all of the Company's assets. 

        (d)   "Expenses" shall mean any expense, liability or loss, including attorneys' fees, judgments, fines, ERISA excise taxes and
penalties, amounts paid or to be paid in settlement, any interest, assessments or other charges imposed thereon, any federal, state, local or foreign taxes imposed as a result of the actual or deemed
receipt of any payments under this Agreement and all other costs and obligations, paid or incurred in connection with investigating, defending, being a witness in, participating in (including on
appeal) or preparing for any of the foregoing in, any Proceeding relating to any Indemnifiable Event. 

        (e)   "Indemnifiable Event" shall mean any event or occurrence that takes place either prior to or after the execution of this
Agreement, related to the fact that Indemnitee is or was a director or officer of the Company or an Affiliate of the Company, or while a director or officer is or was serving at the request of the
Company or an Affiliate of the Company as a director, officer, employee, trustee, agent or fiduciary of another foreign or domestic corporation, partnership, joint venture, employee benefit plan,
trust or other enterprise or was a director, officer, employee or agent of a foreign or domestic corporation that was a predecessor corporation of the Company or of another enterprise at the request
of such predecessor corporation, or related to anything done or not done by Indemnitee in any such capacity, whether or not the basis of the Proceeding is alleged action in an official capacity as a
director, officer, employee or agent or in any other capacity while serving as a director, officer, employee or agent of the Company or an Affiliate of the Company, as described above. 

        (f)    "Independent Counsel" shall mean the person or body appointed in connection with Section 3. 

        (g)   "Proceeding" shall mean any threatened, pending or completed action, suit or proceeding or any alternative dispute
resolution mechanism (including an action by or in the right of the Company or an Affiliate of the Company) or any inquiry, hearing or investigation, whether formal or informal, whether conducted by
the Company or an Affiliate of the Company or any other party, that Indemnitee in good faith believes might lead to the institution of any such action, suit or proceeding, whether civil, criminal,
administrative, investigative or other. 

        (h)   "Reviewing Party" shall mean the person or body appointed in accordance with Section 3. 

        (i)    "Voting Securities" shall mean any securities of the Company that vote generally in the election of directors. 

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        2.    Agreement to Indemnify.    

        (a)    General Agreement.    In the event Indemnitee was, is or becomes a party to or witness or other participant in,
or is threatened to be made a party to or witness or other participant in, a Proceeding by reason of (or arising in part out of) an Indemnifiable Event, the Company shall indemnify Indemnitee from and
against any and all Expenses to the fullest extent permitted by law, as the same exists or may hereafter be amended or interpreted (but in the case of any such amendment or interpretation, only to the
extent that such amendment or interpretation permits the Company to provide broader indemnification rights than were permitted prior thereto). The parties hereto intend that this Agreement shall
provide for indemnification in excess of that expressly permitted by statute, including, without limitation, any indemnification provided by the Company's Certificate of Incorporation, its Bylaws,
vote of its stockholders or disinterested directors or applicable law. 

        (b)    Initiation of Proceeding.    Notwithstanding anything in this Agreement to the contrary, Indemnitee shall not
be entitled to indemnification pursuant to this Agreement in connection with any Proceeding initiated by Indemnitee against the Company or any director or officer of the Company unless (i) the
Company has joined in or the Board has consented to the initiation of such Proceeding, (ii) the Proceeding is one to enforce indemnification rights under Section 5 or (iii) the
Proceeding is instituted after a Change in Control (other than a Change in Control approved by a majority of the directors on the Board who were directors immediately prior to such Change in Control)
and Independent Counsel has approved its initiation. 

        (c)    Expense Advances.    All Expenses incurred by or on behalf of Indemnitee prior to the final disposition of a
Proceeding shall be advanced by the Company to Indemnitee within 30 days after the receipt by the Company of a written request for such advance unless and until there has been a final
determination by a court of competent jurisdiction that Indemnitee is not entitled to be indemnified for such Expenses. Notwithstanding the foregoing, to the extent the Indemnitee has been successful
on the merits or otherwise in the defense of any Proceeding, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee in connection therewith. Indemnitee
shall qualify for advances upon the execution and delivery to the Company of this Agreement which shall constitute an undertaking providing that the Indemnitee undertakes to the fullest extent
permitted by law to reimburse the advance if and to the extent that it is ultimately determined by a court of competent jurisdiction in a final judgment, not subject to appeal, that Indemnitee is not
entitled to be indemnified by the Company. No other form of undertaking shall be required other than the execution of this Agreement. Indemnitee's obligation to reimburse the Company for advances
shall be unsecured
and no interest shall be charged thereon. This Section 2(c) shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 2(b) or 2(f). 

        (d)    Mandatory Indemnification.    Notwithstanding any other provision of this Agreement, to the extent that
Indemnitee has been successful on the merits or otherwise in defense of any Proceeding relating in whole or in part to an Indemnifiable Event or in defense of any issue or matter therein, Indemnitee
shall be indemnified against all Expenses incurred in connection therewith. 

        (e)    Partial Indemnification.    If Indemnitee is entitled under any provision of this Agreement to indemnification
by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is
entitled. 

3

 

        (f)    Prohibited Indemnification.    No indemnification pursuant to this Agreement shall be paid by the Company on
account of any Proceeding in which a final judgment is rendered against Indemnitee or Indemnitee enters into a settlement, in each case (i) for an accounting of profits made from the purchase
or sale by Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Exchange Act or similar provisions of any federal, state or local laws; (ii) for
which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance
policy or other indemnity provision; or (iii) for which payment is prohibited by law. Notwithstanding anything to the contrary stated or implied in this Section 2(f), indemnification
pursuant to this Agreement relating to any Proceeding against Indemnitee for an accounting of profits made from the purchase or sale by Indemnitee of securities of the Company pursuant to the
provisions of Section 16(b) of the Exchange Act or similar provisions of any federal, state or local laws shall not be prohibited if Indemnitee ultimately establishes in any Proceeding that no
recovery of such profits from Indemnitee is permitted under Section 16(b) of the Exchange Act or similar provisions of any federal, state or local laws. 

        3.    Reviewing Party.    Prior to any Change in Control, the Reviewing Party shall be any appropriate person or body
consisting of a member or members of the Board or any other person or body appointed by the Board who is not a party to the particular Proceeding with respect to which Indemnitee is seeking
indemnification; provided that if all members of the Board are parties to the particular Proceeding with respect to which Indemnitee is seeking indemnification, the Independent Counsel referred to
below shall become the Reviewing Party; after a Change in Control, the Independent Counsel referred to below shall become the Reviewing Party. With respect to all matters arising before a Change in
Control for which Independent Counsel shall be the Reviewing Party and all matters arising after a Change in Control, in each case concerning the rights of Indemnitee to indemnity payments and Expense
Advances under this Agreement or any other agreement or under applicable law or the Company's Certificate of Incorporation or Bylaws now or hereafter in effect relating to indemnification for
Indemnifiable Events, the Company shall seek legal advice only from Independent Counsel selected by Indemnitee and approved by the Company (which approval shall not be unreasonably withheld or
delayed), and who has not otherwise performed services for the Company or the Indemnitee (other than in connection with indemnification matters) within the last five years. The Independent Counsel
shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an
action to determine Indemnitee's rights under this Agreement. Such counsel, among other things, shall render its written opinion to the Company and Indemnitee as to whether and to what extent the
Indemnitee should be permitted to be indemnified under applicable law. The Company agrees to pay the reasonable fees of the Independent Counsel and to indemnify fully such counsel against any and all
expenses (including attorneys' fees), claims, liabilities, loss and damages arising out of or relating to this Agreement or the engagement of Independent Counsel pursuant hereto. 

        4.    Indemnification Process and Appeal.    

        (a)    Indemnification Payment.    Indemnitee shall be entitled to indemnification of Expenses, and shall receive
payment thereof, from the Company in accordance with this Agreement as soon as practicable after Indemnitee has made written demand on the Company for indemnification, but in no event later than
thirty (30) days after demand, unless the Reviewing Party has given a written opinion to the Company that Indemnitee is not entitled to indemnification under applicable law. Indemnitee shall
cooperate with the Reviewing Party making a determination with respect to Indemnitee's entitlement to indemnification, including providing to the Reviewing Party upon reasonable advance request 

4

 

any
documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. In the
event the Reviewing Party has failed to make such determination within thirty (30) days after the Company's receipt of Indemnitee's written demand for indemnification, the requisite
determination that Indemnitee is entitled to indemnification shall be deemed to have been made. 

        (b)    Suit to Enforce Rights.    Regardless of any action by the Reviewing Party, if Indemnitee has not received full
indemnification within thirty (30) days after making a demand in accordance with Section 4(a), Indemnitee shall have the right to enforce its indemnification rights under this Agreement
by commencing litigation in any court in the State of California or the State of Delaware having subject matter jurisdiction thereof seeking an initial determination by the court or challenging any
determination by the Reviewing Party or any aspect thereof. The Company hereby consents to service of process and to appear in any such proceeding. The Company shall be precluded from asserting in any
such proceeding that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of
this Agreement. The remedy provided for in this Section 4 shall be in addition to any other remedies available to Indemnitee at law or in equity. 

        (c)    Defense to Indemnification, Burden of Proof, and Presumptions.    It shall be a defense to any action brought
by Indemnitee against the Company to enforce this Agreement that it is not permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed. In connection with any such
action or any determination by the Reviewing Party or otherwise as to whether Indemnitee is entitled to be indemnified hereunder, the burden of proving such a defense or determination shall be on the
Company. Neither the failure of the Reviewing Party or the Company (including its Board, independent legal counsel or its stockholders) to have made a determination prior to the commencement of such
action by Indemnitee that indemnification of the claimant is proper under the circumstances because Indemnitee has met the standard of conduct set forth in applicable law, nor an actual determination
by the Reviewing Party or Company (including its Board, independent legal counsel or its stockholders) that the Indemnitee had not met such applicable standard of conduct, shall be a defense to the
action or create a presumption that the Indemnitee has not met the applicable standard of conduct. For purposes of this Agreement, the termination of any claim, action, suit or proceeding, by
judgment, order, settlement (whether with or without court approval), conviction or upon a plea of nolo contendere or its equivalent, shall not create a presumption that Indemnitee did not meet any
particular standard of conduct or have any particular belief or that a court has determined that indemnification is not permitted by applicable law. For purposes of any determination of good faith
under any applicable standard of conduct, Indemnitee shall be deemed to have acted in good faith if Indemnitee's action is based on the records or books of account of the Company, including financial
statements, or on information supplied to Indemnitee by the officers of the Company in the course of their duties, or on the advice of legal counsel for the Company or the Board or counsel selected by
any committee of the Board or on information or records given or reports made to the Company by an independent certified public accountant or by an appraiser, investment banker, compensation
consultant, or other expert selected with reasonable care by the Company or the Board or any committee of the Board. The provisions of the preceding sentence shall not be deemed to be exclusive or to
limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct. The knowledge and/or actions, or failure to act, or any director,
officer, agent or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. 

5

 

        5.    Indemnification for Expenses Incurred in Enforcing Rights.    The Company shall indemnify Indemnitee against any
and all Expenses that are incurred by Indemnitee in connection with any action brought by Indemnitee for 

	(i)
	indemnification
or advance payment of Expenses by the Company under this Agreement or any other agreement or under applicable law or the Company's Certificate of
Incorporation or Bylaws now or hereafter in effect relating to indemnification for Indemnifiable Events, regardless of whether Indemnitee is ultimately successful in such action, unless as a part of
such action a court of competent jurisdiction over such action determines that each of the material assertions made by Indemnitee as a basis for such action was not made in good faith or was
frivolous, and/or

	(ii)
	recovery
under directors' and officers' liability insurance policies maintained by the Company; but only in the event that Indemnitee ultimately is determined to be
entitled to such indemnification or insurance recovery, as the case may be. In addition, the Company shall, if so requested by Indemnitee, advance the foregoing Expenses to Indemnitee, subject to and
in accordance with Section 2(c). 

        6.    Notification and Defense of Proceeding.    

        (a)    Notice.    Promptly after receipt by Indemnitee of notice of the commencement of any Proceeding, Indemnitee
shall, if a claim in respect thereof is to be made against the Company under this Agreement, notify the Company of the commencement thereof; but the omission so to notify the Company will not relieve
the Company from any liability that it may have to Indemnitee, except as provided in Section 6(c). 

        (b)    Defense.    With respect to any Proceeding as to which Indemnitee notifies the Company of the commencement
thereof, the Company will be entitled to participate in the Proceeding at its own expense and except as otherwise provided below, to the extent the Company so wishes, it may assume the defense thereof
with counsel reasonably satisfactory to Indemnitee. After notice from the Company to Indemnitee of its election to assume the defense of any Proceeding, the Company shall not be liable to Indemnitee
under this Agreement or otherwise for any Expenses subsequently incurred by Indemnitee in connection with the defense of such Proceeding other than reasonable costs of investigation or as otherwise
provided below. Indemnitee shall have the right to employ legal counsel in such Proceeding, but all Expenses related thereto incurred after notice from the Company of its assumption of the defense
shall be at Indemnitee's expense unless: (i) the employment of legal counsel by Indemnitee has been authorized by the Company, (ii) Indemnitee has reasonably determined that there may be
a conflict of interest between Indemnitee and the Company in the defense of the Proceeding, (iii) after a Change in Control, the employment of counsel by Indemnitee has been approved by the
Independent Counsel or (iv) the Company shall not in fact have employed counsel to assume the defense of such Proceeding, in each of which cases all Expenses of the Proceeding shall be borne by
the Company. The Company shall not be entitled to assume the defense of any Proceeding brought by or on behalf of the Company, or as to which Indemnitee shall have made the determination provided for
in (ii) above or under the circumstances provided for in (iii) and (iv) above. 

        (c)    Settlement of Claims.    The Company shall not be liable to indemnify Indemnitee under this Agreement or
otherwise for any amounts paid in settlement of any Proceeding effected without the Company's written consent, such consent not to be unreasonably withheld; provided, however, that if a Change in
Control has occurred, the Company shall be liable for indemnification of Indemnitee for amounts paid in settlement if the Independent Counsel has approved the settlement. The Company shall not settle
any Proceeding in any manner that would impose any penalty or limitation on Indemnitee without Indemnitee's 

6

 

written
consent. The Company shall not be liable to indemnify the Indemnitee under this Agreement with regard to any judicial award if the Company was not given a reasonable and timely opportunity as
a result of Indemnitees' failure to provide notice, at its expense, to participate in the defense of such action, and the lack of such notice materially prejudiced the Company's ability to participate
in defense of such action. The Company's liability hereunder shall not be excused if participation in the Proceeding by the Company was barred by this Agreement. 

        7.    Establishment of Trust.    In the event of a Change in Control, the Company shall, upon written request by
Indemnitee, create a Trust for the benefit of the Indemnitee and from time to time upon written request of Indemnitee shall fund the Trust in an amount sufficient to satisfy any and all Expenses
reasonably anticipated at the time of each such request to be incurred in connection with investigating, preparing for, participating in, and/or defending any Proceeding relating to an Indemnifiable
Event. The amount or amounts to be deposited in the Trust pursuant to the foregoing funding obligation shall be determined by the Independent Counsel. The terms of the Trust shall provide that
(i) the Trust shall not be revoked or the principal thereof invaded without the written consent of the Indemnitee, (ii) the Trustee shall advance, within thirty (30) days of a
request by the Indemnitee, any and all Expenses to the Indemnitee (and the Indemnitee hereby agrees to reimburse the Trust under the same circumstances for which the Indemnitee would be required to
reimburse the Company under Section 2(c) of this Agreement), (iii) the Trust shall continue to be funded by the Company in accordance with the funding obligation set forth above,
(iv) the Trustee shall promptly pay to the Indemnitee all amounts for which the Indemnitee shall be entitled to indemnification pursuant to this Agreement or otherwise no later than thirty
(30) days after notice pursuant to Section 4(a) and (v) all unexpended funds in the Trust shall revert to the Company upon a final determination by the Independent Counsel or a
court of competent jurisdiction, as the case may be, that the Indemnitee has been fully indemnified under the terms of this Agreement. The Trustee shall be chosen by the Indemnitee. Nothing in this
Section 7 shall relieve the Company of any of its obligations under this Agreement. All income earned on the assets held in the Trust shall be reported as income by the Company for federal,
state, local and foreign tax purposes. The Company shall pay all costs of establishing and maintaining the Trust and shall indemnify the Trustee against any and all expenses (including attorneys'
fees), claims, liabilities, loss and damages arising out of or relating to this Agreement or the establishment and maintenance of the Trust. 

        8.    Non-Exclusivity.    The rights of Indemnitee hereunder shall be in addition to any other rights
Indemnitee may have under the Company's Certificate of Incorporation, Bylaws, applicable law or otherwise; provided, however, that this Agreement shall supersede any prior indemnification agreement
between the Company and the Indemnitee. To the extent that a change in applicable law (whether by statute or judicial decision) permits greater indemnification than would be afforded currently under
the Company's Certificate of Incorporation, Bylaws, applicable law or this Agreement,
it is the intent of the parties that Indemnitee enjoy by this Agreement the greater benefits so afforded by such change. 

        9.    Liability Insurance.    For the duration of Indemnitee's service as a director and/or officer of the Company,
and thereafter for so long as Indemnitee shall be subject to any pending or possible Proceeding by reason of (or arising in part out of) an Indemnifiable Event, the Company shall use commercially
reasonable efforts (taking into account the scope and amount of coverage available relative to the cost thereof) to cause to be maintained in effect policies of directors' and officers' liability
insurance providing coverage for directors and/or officers of the Company that is at least substantially comparable in scope and amount to that provided by the Company's current policies of directors'
and officers' liability insurance. Notwithstanding the foregoing, the Company shall not be required to maintain said policies of directors' and officers' liability insurance during 

7

 

any
time period in which such insurance is not reasonably available or if it is determined in good faith by the then directors of the Company either that: (a) the premium cost of such insurance
is substantially disproportionate to the amount of coverage provided thereunder, or (b) the protection provided by such insurance is so limited by exclusions, deductions or otherwise that there
is insufficient benefit to warrant the cost of maintaining such insurance. 

        The
Company shall provide Indemnitee with a copy of all directors' and officers' liability insurance applications, binders, policies, declarations, endorsements and other related
materials, and shall provide Indemnitee with a reasonable opportunity to review and comment on the same. 

        10.    Amendment of this Agreement.    No supplement, modification or amendment of this Agreement shall be binding
unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be binding unless in the form of a writing signed by the party against whom
enforcement of the waiver is sought, and no such waiver shall operate as a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. Except
as specifically provided herein, no failure to exercise or any delay in exercising any right or remedy hereunder shall constitute a waiver thereof. 

        11.    Subrogation.    In the event of payment under this Agreement, the Company shall be subrogated to the extent of
such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such
documents necessary to enable the Company effectively to bring suit to enforce such rights. 

        12.    No Duplication of Payments.    The Company shall not be liable under this Agreement to make any payment in
connection with any claim made against Indemnitee to the extent Indemnitee has otherwise received payment (under any insurance policy, Bylaw or otherwise) of the amounts otherwise indemnifiable
hereunder. 

        13.    Duration of Agreement.    All agreements and obligations of the Company contained herein shall continue during
the period Indemnitee is a director, officer, employee or other agent of the Company (or is or was serving at the request of the Company as a director, officer, employee or other agent of another
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise) and shall continue thereafter so long as Indemnitee shall be subject to any possible claim or threatened,
pending or completed action, suit or proceeding, whether civil or criminal, arbitrational, administrative or investigative, by reason of the fact that Indemnitee was serving in the capacity referred
to herein. 

        14.    Binding Effect.    This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of
the Company), assigns, spouses, heirs and personal and legal representatives. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or
otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and
agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. The indemnification provided under this
Agreement shall continue as to Indemnitee for any action taken or not taken while serving in an indemnified capacity pertaining to an Indemnifiable Event even though Indemnitee may have ceased to
serve in such capacity at the time of any Proceeding. 

        15.    Severability.    If any provision (or portion thereof) of this Agreement shall be held by a court of competent
jurisdiction to be invalid, void or otherwise unenforceable, (a) the remaining 

8

 

provisions
shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to
give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of this
Agreement containing any provision held to be invalid, void or otherwise unenforceable, that is not itself invalid, void or unenforceable) shall be construed so as to give effect to the intent
manifested by the provision held invalid, void or unenforceable. 

        16.    Contribution.    To the fullest extent permissible under applicable law, whether or not the indemnification
provided for in this Agreement is available to Indemnitee for any reason whatsoever, the Company shall pay all or a portion of the amount that would otherwise be incurred by Indemnitee for Expenses in
connection with any claim relating to an Indemnifiable Event, as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative
benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Company (and its
directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s). 

        17.    Governing Law.    This Agreement shall be governed by and construed and enforced in accordance with the laws of
the State of Delaware applicable to contracts made and to be performed in such State without giving effect to its principles of conflicts of laws. The Company and Indemnitee hereby irrevocably and
unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement may be brought in the Delaware Court of Chancery, (ii) consent to submit to
the jurisdiction of the Delaware Court of Chancery for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue
of any such action or proceeding in the Delaware Court of Chancery, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court
of Chancery has been brought in an improper or inconvenient forum. 

        18.    Notices.    All notices, demands and other communications required or permitted hereunder shall be made in
writing and shall be deemed to have been duly given if delivered by hand, against receipt or mailed, postage prepaid, certified or registered mail, return receipt requested and addressed to the
Company at: 

Oncothyreon Inc.

110-110th Avenue NE

Bellevue, WA 98004

Attention: Chief Executive Officer 

and
to Indemnitee at the address set forth below Indemnitee's signature hereto. Notice of change of address shall be effective only when given in accordance with this Section. All notices complying
with this Section shall be deemed to have been received on the date of hand delivery or on the third business day after mailing. 

        19.    Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 

*
* * * * 

9

        IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Indemnification Agreement as of the day specified above. 

	 	 	ONCOTHYREON INC.
 a Delaware corporation
	

 	
 	

By:	

    
 Print Name:

Title:
	

 	
 	
INDEMNITEE,
 an individual
	

 	
 	

    
 Indemnitee
	

Address:	
 	

    
    
    

[Signature page to Oncothyreon Inc. Indemnification Agreement]  

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Exhibit 10.9  

 
 

EXCLUSIVE LICENSE AGREEMENT    
    
    between    
    
    THE UNIVERSITY OF ARIZONA    
    
    and    
    
    ProlX PHARMACEUTICALS, INC.    
    
    Agreement Number 97-0268    
    

        This Exclusive License Agreement (the "Agreement") is made effective the date of the last signature date below (the "Effective Date") between The Arizona Board of
Regents on behalf of The University of Arizona, with its principal offices in Tucson, Arizona 85721 (the "UNIVERSITY"), and ProlX Pharmaceuticals, Inc., a Pennsylvania corporation, with its
principal place of business at P.O. Box 10146, Pittsburgh, Pennsylvania 15232 (the "LICENSEE"). 

        WHEREAS,
an invention, entitled "Thioredoxin as a Target for Cancer Chemotherapeutic and Cancer Preventive Drugs" UA1596 (the
"Technology"), useful for an anticancer drug, as a screening tool to identify new cancer drugs, and/or as a mitogenic tissue-culture reagent, was developed at UNIVERSITY by  Garth Powis (the
"Inventor") and is claimed in Patent Rights, as defined below; 

        WHEREAS,
Inventor was an employee of UNIVERSITY when Technology was developed, and Inventor assigned to UNIVERSITY all of the right, title, and interest in Technology; 

        WHEREAS,
LICENSEE is interested in obtaining rights to make, have made, use, offer for sale and sell products from Technology and can provide useful management for production and
distribution of Licensed Products, and UNIVERSITY is willing to grant such rights so that the Technology may be developed and the benefits enjoyed by the public; and 

        WHEREAS,
LICENSEE has executed a letter of intent with UNIVERSITY effective December 5, 1977, under which UNIVERSITY agreed to negotiate an exclusive world-wide
license to Technology in return for Licensee paying all patent costs for protecting this Technology during the term of that letter of intent. 

        The
parties hereto, intending to be legally bound, hereby agree as follows: 

 
 

ARTICLE 1    
    
    Definitions    
    

        1.1   "Licensed
Method" shall mean any method that is covered by Patent Rights, the use of which would constitute, but for the license granted to the LICENSEE under this
Agreement, an infringement of any issued, valid and enforceable claim of Patent Rights. 

        1.2   "Licensed
Product" shall mean any product that is either covered by Patent Rights or that is produced by the Licensed Method, to the extent that the production, use,
offer for sale or sale of such product would infringe an issued, valid and enforceable claim of Patent Rights, but for the license granted to LICENSEE under this Agreement. 

        1.3   "Net
Sales" shall mean the total of the gross invoice prices from the sale of Licensed Product or the performance of Licensed Method by LICENSEE or a sublicensee to any
third parties for cash or other forms of consideration, in accordance with generally accepted accounting principles. LICENSEE 

[+]
DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED FOR CONFIDENTIALITY PURPOSES 

 

may
make the following deductions, at rates customary within the industry (if not already deducted from the gross invoice price), when calculating the total gross invoice prices: 

	1.3.1
	allowances
(actually paid and limited to rejections, returns, and prompt payment and volume discounts granted to customers of LICENSEE, or a sublicensee, whether in cash or other
consideration in lieu of cash); and

	1.3.2
	freight,
transportation, packing, and/or insurance charges associated with transportation; and

	1.3.3
	taxes
based on sales when included in gross sales, but not taxes assessed on income derived from such sales.

	1.3.4
	license
fees required to be paid by LICENSEE to any third party in order to practice Patent Rights. 

Where
LICENSEE distributes Licensed Products for end use to itself or a sublicensee, then such distribution will be considered a sale at the list price normally charged to independent third parties,
and UNIVERSITY will be entitled to collect royalty on such a sale in accordance with Article 3 (Fees and Royalties). 

        1.5   "Patent
Rights" shall mean issued U.S. and foreign patents having valid and enforceable claims assigned to UNIVERSITY by Inventor, including any reissues, continuations,
divisional, and extensions, and any continuation-in-part applications to the extent that claims of the original application are continued, based on the subject matter claimed
in or covered by the following: 

	[+]
	

        1.6   "Territory"
shall mean those countries in which LICENSEE is supporting or maintaining patents or patent applications under the provisions of Paragraph 3.3 below. 

 
 

ARTICLE 2    
    
    Grant    
    

        2.1   UNIVERSITY
grants to LICENSEE an exclusive license to make, have made, use, market, offer for sale, sell, have sold, import and distribute Licensed Product and practice
Licensed Method in the Territory. These rights are subject to the terms and conditions set forth herein. This grant does not relinquish UNIVERSITY ownership in or rights to Patent Rights and does not
grant, by implication or otherwise, any other rights to LICENSEE of any other technologies owned, invented, or discovered by UNIVERSITY, whether past, present, or future. If LICENSEE or UNIVERSITY
identifies any use or application within the Patent Rights other than use of Technology as an anticancer drug, as a screening tool to identify new cancer drugs and/or as a mitogenic tissue culture
reagent, LICENSEE shall use reasonable efforts to commercialize such other use or application; otherwise, LICENSEE shall license such other use or application back to UNIVERSITY. 

        2.2   UNIVERSITY
grants LICENSEE the right to issue sublicenses to third parties to make, have made, use, market, offer for sale, sell, have sold, import and distribute
Licensed Product and practice Licensed Method as long as LICENSEE possesses an exclusive license under this Agreement. Any and all sublicense agreements granted by LICENSEE shall include all of the
rights and obligations due UNIVERSITY, and, if applicable, the United States government, contained in this Agreement. Such rights and obligations due UNIVERSITY in all such sublicense agreements
include, but are not limited to, the right of UNIVERSITY to receive all royalties and fees under Paragraphs 3.1 (other than 3.1.3), 3.2 and 3.9, if not otherwise paid to UNIVERSITY by LICENSEE.
LICENSEE shall notify the 

[+]
DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED FOR CONFIDENTIALITY PURPOSES 

2

 

UNIVERSITY
of each sublicense granted hereunder and provide UNIVERSITY with a copy of each sublicense. LICENSEE shall collect and pay all fees and royalties due UNIVERSITY and guarantee all such
payments due from sublicensees. LICENSEE shall require sublicensees to provide payments with royalty reports, and LICENSEE shall collect and summarize for UNIVERSITY all such reports due from
sublicensees. LICENSEE shall monitor sublicensees and assure license terms are met and product quality is equal to or greater than that required by this Agreement. Upon termination of this Agreement
for any reason, UNIVERSITY, at its sole discretion, shall determine whether any or all sublicenses shall be canceled or assigned to UNIVERSITY. 

	[+]
	

        2.3   The
development of Technology was sponsored in part by the National Institutes of Health, under grant numbers CA48725 and CA17094, and as a consequence, this license is
subject to overriding obligations to the Federal Government under 35 U.S.C. §200-212 and applicable implementating regulations, as well as the royalty-free
provisions of paragraph 3.11 below. 

        2.4   UNIVERSITY
shall reserve an irrevocable right to produce and use Licensed Product and to practice Licensed Method only for research and educational purposes and for
purposes not covered by this Agreement. Nothing in this Agreement shall be deemed to limit the right of UNIVERSITY to publish any and all technical data resulting from any research performed by
UNIVERSITY, including, but not limited to, research relating to the Licensed Products, Licensed Method, or Technology. 

        2.5   The
production, use, offer for sale, sale, and distribution of Licensed Products and the practice of Licensed Method shall be subject to applicable county, state,
federal or foreign laws, rules, and regulations governing the production, use, marketing, sale, and distribution of Licensed Products or the practice of Licensed Method in or between any county,
state, federal, or foreign jurisdiction. 

        2.6   LICENSEE
acknowledges that Licensed Products will not be produced, used, marketed, offered for sale, sold, distributed, and/or sublicensed outside the Territory and that
Licensed Method will not be practiced outside the Territory. 

 
 

ARTICLE 3    
    
    Fees and Royalties    
    

        3.1    Fees.    In consideration, in part, for the rights granted herein, LICENSEE shall pay the following fees: 

	3.1.1
	LICENSEE
shall pay UNIVERSITY a license-issue fee of [+] as a one-time, non-refundable, non-cancelable,
non-creditable fee. This fee shall be paid as follows:

	•
	[+]
shall be paid within fifteen working-days after the Effective Date of this Agreement; and 

[+]
DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED FOR CONFIDENTIALITY PURPOSES 

3

 

	•
	[+]
shall be paid within fifteen working-days of the receipt of a Notice of Allowance from the U. S. Patent and Trademark Office of valid
and enforceable claims covering Licensed Product and/or Licensed Method.

	3.1.2
	Beginning
on January 1, 2000, and continuing on each January 1 thereafter for the term of this Agreement, LICENSEE shall pay UNIVERSITY a nonrefundable annual license
maintenance fee. This fee shall be paid as follows:

	•
	[+]
non-creditable fee on each January 1 that a U. S. Patent has not issued with valid and enforceable claims covering Licensed
Product and/or Licensed Method, or

	•
	[+]
fee on each January 1 that a U. S. Patent has issued with valid and enforceable claims covering Licensed Product and/or Licensed Method,
said fee being fully creditable against certain patent preparation and prosecution costs as set forth under Paragraph 3.3 below after a total of [+] in patent
preparation and prosecution fees has been paid by Licensee.

	3.1.3
	LICENSEE
shall pay UNIVERSITY a one-time milestone payment of [+] upon issuance of a U. S. Patent with valid and enforceable claims covering
Licensed Product or Licensed Method. 

        3.2    Royalties.    In consideration, in part, for the rights granted herein, including the exclusive worldwide
license granted to LICENSEE, LICENSEE shall pay the following royalties: 

	3.2.1
	LICENSEE
shall pay to UNIVERSITY an earned royalty of [+] of Net Sales of Licensed Products or performance of Licensed Method in each country in the
Territory in which Patent Rights exist, with certain patent preparation and prosecution costs as set forth in Paragraph 3.3 below being [+] creditable after a total of
[+] in patent preparation and prosecution fees has been paid by LICENSEE. If no patent with valid and enforceable claims covering Licensed Product or Licensed Method has issued
within [+] of the Effective Date in any country in which Patent Rights are pending, the earned royalty shall be reduced to [+], but shall revert to
[+] upon issuance of Patent Rights in any such country;

	3.2.2
	LICENSEE
shall pay to UNIVERSITY a minimum royalty of [+] per year for the life of UNIVERSITY'S Patent Rights, beginning after (a) issuance of a U.S.
patent with valid and enforceable claims covering Licensed Product or Licensed Method, and (b) commercialization by LICENSEE or a sublicensee of a product identified by screening using the
Licensed Method, said payment being fully creditable against certain patent preparation and prosecution costs as set forth in Paragraph 3.3 below after a total of [+] in
patent preparation and prosecution fees has been paid by LICENSEE;

	3.2.3
	LICENSEE
shall pay to UNIVERSITY a royalty of [+] of all fees LICENSEE receives from third parties for work performed under the grant of this Agreement, such
as "fee-for-service" activities wherein LICENSEE practices Licensed Method for such third party; and

	3.2.4
	Under
no circumstances shall the earned royalties to be paid to UNIVERSITY by LICENSEE be reduced by more than [+] in any reporting period by the credit
provided in Paragraph 3.2.1, although any unused credit may be carried over from one reporting period to subsequent reporting periods. 

[+]
DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED FOR CONFIDENTIALITY PURPOSES 

4

 

        3.3    Patent Costs.    LICENSEE shall pay all documented costs, past, present and future, incurred by UNIVERSITY in
obtaining and perfecting Patent Rights, except that any costs of patent preparation and prosecution in excess of [+] shall be creditable by LICENSEE against license maintenance
fees of Paragraph 3.1.2 and earned royalties of Paragraph 3.2.1 above. The credit against license maintenance fees shall not apply to patent preparation and prosecution fees relating to
reissue, reexamination and interference proceedings. It is understood that UNIVERSITY has already filed a PCT patent application naming all PCT countries including the U. S. 

        3.4   Payments
hereunder shall be made in U.S. dollars in the United States. If Licensed Products are sold or Licensed Method is performed for monies other than United States
dollars, LICENSEE shall first determine the earned royalty in the currency of the country in which Licensed Products were sold or Licensed Method was practiced and then convert the amount into
equivalent United States funds, using the exchange rate quoted in the Wall Street Journal on the last business day of the reporting period. 

        3.5   Royalties
earned on sales occurring in any country outside the United States may not be reduced by any taxes, fees, or other charges imposed by the government of such
country on the payment of royalty income, The LICENSEE is responsible for all bank transfer charges. Notwithstanding this, all payments made by LICENSEE in fulfillment of UNIVERSITY'S own tax
liability in any particular country will be credited against earned royalties or fees due UNIVERSITY for that country. 

        3.6   If
at any time, legal restrictions prevent the prompt remittance of royalties by the LICENSEE from any country where Licensed Products are sold or Licensed Method is
practiced, the LICENSEE shall convert the amount owed to UNIVERSITY into United States funds and shall pay UNIVERSITY directly from its U.S. source of funds for so long as the legal restrictions
apply. 

        3.7   Royalties
accruing to UNIVERSITY shall be payable by LICENSEE to UNIVERSITY when Licensed Products are invoiced, or if not invoiced, when delivered to a third party. 

        3.8   LICENSEE
shall pay all royalties under paragraph 3.2 semiannually and within 30 days of December 31 and June 30 of each calendar year. Each
such payment shall be for the most recently completed calendar half year. 

        3.9   In
the event that royalty payments are not received when due, the LICENSEE shall pay additional interest charges at an annual rate of [+].
Interest shall be calculated from the date payment was due and until actually received by UNIVERSITY. 

        3.10 If
any patent or patent claim within Patent Rights is held invalid in a final decision by a court of competent jurisdiction and last resort from which no appeal has or
can be taken, all obligation to pay royalties based on that patent or claim or any claim patentably indistinct therefrom will cease as of the date of final decision. LICENSEE shall not, however, be
relieved from paying any royalties that accrued before the final decision, or that are based on another patent or claim not involved in the final decision. 

        3.11 No
royalties may be collected or paid on Licensed Products sold to or Licensed Method performed for the U.S. Government or any agency thereof, as provided for in the
license to the government. 

 
 

ARTICLE 4    
    
    Reports and Inspections    
    

        4.1   LICENSEE
shall maintain accurate books and records, and, upon reasonable advance notice by UNIVERSITY, LICENSEE'S records, inventory, and Licensed Product production or
Licensed Method practice facilities shall be open for inspection by UNIVERSITY for the purpose of verifying 

[+]
DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED FOR CONFIDENTIALITY PURPOSES 

5

 

the
accuracy of reports. The LICENSEE shall keep, and cause sublicensee(s) to keep, accurate records and books showing the maintenance, production, inventory, sale, distribution or sublicensing of
Licensed Product and the performance of Licensed Method and shall permit duly authorized agents of UNIVERSITY, during regular business hours, to inspect upon reasonable notice facilities and records
of LICENSEE for the purpose of verifying quality control and royalty payments due UNIVERSITY. In the event payment is in error by [+] or more, LICENSEE shall pay all reasonable
documented, third party audit expenses. 

        4.2   After
the first commercial sale of Licensed Products or performance of Licensed Method, LICENSEE shall provide UNIVERSITY with a semiannual written report within
30 days after December 31 and June 30 of each year indicating: 

	4.2.1
	Quantity
of Licensed Product produced or Licensed Method performed in each location, relevant information on maintaining Licensed Products quality, and supplies of Licensed Products
held by LICENSEE and sublicensee(s); and

	4.2.2
	Summary
of Licensed Product and Licensed Method gross sales and Net Sales for both LICENSEE and sublicensee(s); and

	4.2.3
	The
royalties due, including the method used to calculate royalties, as well as the exchange rates used, if applicable; and

	4.2.3
	An
accounting of the quantity of Licensed Product sold and Licensed Method performed by LICENSEE and each sublicensee, including a summary of domestic and international distribution
on which royalties are payable. 

        4.3   Beginning
six months after the Effective Date and continuing semi-annually thereafter, LICENSEE shall submit to UNIVERSITY a progress report covering
LICENSEE'S activities related to the development and testing of all Licensed Products and Licensed Methods and, if applicable, activities related to the obtaining of the governmental approvals
necessary for marketing and distribution. Progress reports are required for each Licensed Product and Licensed Method until the first commercial sale of that Licensed Product occurs in the United
States and shall again be required if commercial sales of such Licensed Product or performance of Licensed Method are suspended or discontinued. 

        4.4   Progress
reports submitted under section 4.3 shall include, but are not limited to, the following topics: 

	•
	summary
of work completed

	•
	key
scientific discoveries

	•
	summary
of work in progress

	•
	market
plans for introduction of Licensed Products and Licensed Methods

	•
	current
schedule of anticipated events or milestones, and

	•
	a
summary of resources (dollar value) spent in the reporting period 

 
 

ARTICLE 5    
    
    Infringement    
    

        5.1   LICENSEE
and sublicensee(s) shall mark all shipping and other containers of Licensed Product with the appropriate markings to reflect that unauthorized production, use,
sale, and distribution are prohibited and that a U.S. Patent is either applied for or has been granted. 

[+]
DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED FOR CONFIDENTIALITY PURPOSES 

6

 

        5.2   Nothing
contained in this Agreement confers any right to use in advertising, publicity, or other promotional activities any name, trade name, trademark, or other
designation of either party hereto to the other party (including contraction, abbreviation, or simulation of any of the foregoing). Unless required by law, the use by LICENSEE of the name "The
University of Arizona" is prohibited. 

        5.3   The
LICENSEE shall notify UNIVERSITY promptly of any known production, sale, marketing, distribution, or use of Licensed Product or the performance of Licensed Method by
persons that are not authorized to produce, use, or sell Licensed Product. Such notification shall include reasonable details that should enable UNIVERSITY to investigate and terminate such
unauthorized activity, and UNIVERSITY retains the right to terminate such activity. 

        5.4   Pursuant
to this Agreement, LICENSEE is empowered: 

	5.4.1
	to
bring suit in its own name, at its own expense, and on its own behalf for infringement of presumably valid claims in Patent Rights, and

	5.4.2
	in
any such suit, to enjoin infringement and to collect for its use, damages, profits, and awards of whatever nature recoverable for such infringement, and

	5.4.3
	in
any such suit, with the prior written permission of UNIVERSITY, such permission not to be unreasonably withheld, to settle any claim or suit for infringement of Patent Rights, 

for
Patent Rights for which LICENSEE has exclusive rights under this Agreement, provided that LICENSEE shall notify UNIVERSITY of LICENSEE'S intention to file suit at least fourteen (14) days
prior to filing thereof. In the event that LICENSEE exercises its rights under this paragraph, unless UNIVERSITY then notifies LICENSEE in writing, within seven (7) days after UNIVERSITY'S
receipt of LICENSEE'S notice, that UNIVERSITY agrees to bear one-half of the expense of prosecuting such suit, all recoveries had or obtained in such suit shall belong solely to LICENSEE,
with the exception of any earned royalties payable to UNIVERSITY as set forth in this Agreement. In any suit brought by LICENSEE under this Paragraph in which UNIVERSITY has not agreed to bear
one-half of the expenses of such suit as detailed in Paragraph 5.5, UNIVERSITY shall have the right to be represented at trial of any such suit by counsel of UNIVERSITY'S choice at
LICENSEE'S expense if such suit involves, or causes to become involved, actual or potential rights, obligations, and/or properties of UNIVERSITY. LICENSEE agrees to keep UNIVERSITY reasonably apprised
of the status and progress of any such litigation. 

        5.5   If
UNIVERSITY notifies LICENSEE that UNIVERSITY agrees to bear one-half of expenses as specified in paragraph 5.4, and if UNIVERSITY pays LICENSEE
from time to time (but not less than once per calendar quarter) as expenses are incurred, then LICENSEE and UNIVERSITY may agree on counsel to represent them jointly and all recoveries had or obtained
in such suit (after deduction of all expenses and fees incurred in prosecuting such suit) shall be divided equally between LICENSEE and UNIVERSITY. 

        5.6   In
the event that suit is brought by LICENSEE under this Article, UNIVERSITY agrees that LICENSEE may, if necessary, join UNIVERSITY as a party plaintiff in any such
suit. 

[+]
DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED FOR CONFIDENTIALITY PURPOSES 

7

  

        5.7   In any infringement action commenced under this Article, in which UNIVERSITY fails to notify LICENSEE, as provided in paragraph 5.4, that UNIVERSITY agrees to
bear one-half of the expense of prosecuting such suit, the expenses in such action, including, but not limited to, costs, fees, attorney fees, and disbursements, shall be paid solely by
LICENSEE. 

        5.8   UNIVERSITY
shall cooperate fully with LICENSEE in connection with any infringement action initiated by LICENSEE under this Article, and UNIVERSITY agrees to use
reasonable efforts to promptly provide reasonable access to all necessary documents, faculty and employees of UNIVERSITY and to render reasonable assistance in response to a written request by
LICENSEE. 

        5.9   In
the event that a declaratory judgment action alleging invalidity or non-infringement of any of the patents included in Patent Rights shall be brought
against LICENSEE alone or raised by way of counterclaim or affirmative defense in an infringement suit brought by LICENSEE under this Article, LICENSEE is empowered: 

	5.9.1
	to
defend the suit in its own name, at its own expense, and on its own behalf, for presumably valid claims in such patents; and

	5.9.2
	in
any such suit, to enjoin infringement and to collect for its use, damages, profits, and awards of whatever nature recoverable for such infringement; and

	5.9.3
	in
any such suit, with the prior written permission of UNIVERSITY, such permission not to be unreasonably withheld, to settle any claim or suit for declaratory judgment involving
Patent Rights. 

Nothing
in this Paragraph 5.9 shall be construed as limiting any rights granted to or retained by either UNIVERSITY or LICENSEE under this Article. 

        5.10 In
the event that LICENSEE recovers damages (excluding those set for willful infringement) in any action brought under this Article, LICENSEE shall pay to UNIVERSITY an
earned royalty on such recovery (excluding recovery for willful infringement and after deducting all expenses and fees incurred by LICENSEE in prosecuting or defending such suit), the amount of such
royalty to be equal to that specified in section 3.2.2 and to be payable as specified under paragraph 3.8. 

        5.11 Nothing
contained within this Article or this Agreement shall be construed to obligate UNIVERSITY or LICENSEE to bring any suit or to enforce any rights under this
Agreement. Additionally, nothing contained within this Article or this Agreement shall be construed to limit the ability of UNIVERSITY or LICENSEE to bring any suit or to enforce any rights under this
Agreement. 

 
 

ARTICLE 6    
    
    Term and Termination    
    

        6.1   This
Agreement shall be in effect when fully executed by the parties. This Agreement shall have the term of ten years from the Effective Date hereof or until the
expiration of the last-to-expire patent licensed under this Agreement, whichever comes later in time. 

        6.2   LICENSEE
may terminate this Agreement or grant of rights hereunder, at any time, upon ninety (90) days prior written notice to UNIVERSITY. 

        6.3   Upon
termination of this Agreement under Sections 6.5, 6.6 or 6.7, LICENSEE shall immediately cease use of the rights granted herein, and all Licensed Product under the
control of LICENSEE and/or sublicensee(s) shall be fully and completely destroyed by LICENSEE using appropriate chemical and/or mechanical methods, excepting Licensed Product stock held by
sublicensee(s) that remains in compliance with the terms and conditions of this Agreement. 

[+]
DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED FOR CONFIDENTIALITY PURPOSES 

8

 

        6.4   Termination
of the Agreement granted hereunder for any reason by either party shall not relieve the parties of any obligation accruing prior to such termination. 

        6.5   If
LICENSEE should fail to perform or should violate any term of this Agreement [+] then UNIVERSITY may give written notice of the default and,
if LICENSEE fails to correct the default and implement action to cure such default within ninety (90) days, then UNIVERSITY shall have the right to cancel or terminate this Agreement. 

        6.6   This
Agreement, or any exclusive sublicense agreement hereunder, will terminate automatically if LICENSEE or any exclusive sublicensee: 

	6.6.1
	terminates
its incorporation, except as provided in Article 9; or

	6.6.2
	ceases
the commercial sale of Licensed Products or performance of Licensed Method; or

	6.6.3
	liquidates
a substantial portion of its assets relating to the sale of Licensed Products or the performance of Licensed Method except as provided in Article 9; or

	6.6.4
	becomes
insolvent; or

	6.6.5
	makes
an assignment of any rights under this Agreement (other than a security interest) for the benefit of creditors. 

        6.7   UNIVERSITY
shall have the right, at its sole discretion, to terminate this Agreement or any sublicense agreements hereunder if, during the term of this Agreement,
LICENSEE or an exclusive sublicensee: 

	6.7.1
	files
a petition of bankruptcy; or

	6.7.2
	notifies
UNIVERSITY of its intention to file a petition of bankruptcy; or

	6.7.3
	notifies
UNIVERSITY of its intention to have a petition of bankruptcy filed against it; or

	6.7.4
	notifies
UNIVERSITY that a third party has filed or intends to file an involuntary petition of bankruptcy against it. 

Notice
of termination under this section shall be given by UNIVERSITY to LICENSEE in writing. Termination of this Agreement under this section is effective upon LICENSEE'S receipt of the written
notice from UNIVERSITY. 

 
 

ARTICLE 7    
    
    Due Diligence    
    

        7.1   LICENSEE,
upon execution of this Agreement, shall use reasonable and prudent business standards to diligently proceed to produce Licensed Products and to perform
Licensed Method and shall use reasonable and prudent business standards to earnestly and diligently endeavor to sell and offer for sale Licensed Products or to perform Licensed Method. LICENSEE shall
use reasonable and prudent business standards to diligently endeavor to fill the market demands for Licensed Products and Licensed Method within the Field of Use and in the Territory after LICENSEE
has begun commercial sales of Licensed Product. 

        7.2   LICENSEE
shall use reasonable and prudent business standards to diligently endeavor to obtain all necessary governmental approvals for the manufacture, use, marketing,
sale, and distribution of Licensed Products and/or performance of Licensed Method. 

[+]
DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED FOR CONFIDENTIALITY PURPOSES 

9

 

        7.3   LICENSEE
shall: 

	7.3.1
	spend
an aggregate of not less than [+] for the development of Licensed Products and Licensed Method during the first [+] from the
Effective Date of this Agreement;

	7.3.2(a)
	[+]

	(b)
	[+]

	7.3.3(a)
	[+]

	(b)
	[+]

	7.3.4
	[+]

If
LICENSEE is unable or unwilling to perform any of the provisions of this Paragraph 7.3, then UNIVERSITY has the right and option to terminate this Agreement upon ninety (90) days
written notice to LICENSEE. This right, if exercised by UNIVERSITY, supercedes the rights granted to LICENSEE in Article 2. 

 
 

ARTICLE 8    
    
    Notices    
    

        Any royalty or fee payment, notice, or other communication required or permitted to be made or to be given to either party under this Agreement shall be
sufficiently made or given on the date of receipt if sent to such party by certified first class U.S. mail, postage prepaid, return receipt requested, addressed to that party at its address set
forth below. 

        If
to UNIVERSITY: 

Rita
C. Manak, Ph.D., Director

Office of Technology Transfer

The University of Arizona

Main Gate 515

888 N. Euclid Avenue

Tucson, Arizona 85721-0158 

        If
to LICENSEE: 

John
S. Lazo

Chief Executive Officer

ProlX Pharmaceuticals, Inc.

P.O. Box 10146

Pittsburgh, PA 15232 

[+]
DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED FOR CONFIDENTIALITY PURPOSES 

10

 
 
 

ARTICLE 9    
    
    Assignment    
    

        This Agreement may be assigned by UNIVERSITY. This Agreement shall not be assigned by LICENSEE except (a) with the prior written consent of UNIVERSITY,
which consent shall not be unreasonably withheld; or (b) as part of a sale or transfer of substantially the entire business of LICENSEE relating to operations which concern this Agreement. 

 
 

ARTICLE 10    
    
    No Warranties    
    

        10.1 EXCEPT
AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, UNIVERSITY MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED,
INCLUDING, BUT NOT LIMITED TO, WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND VALIDITY OF PATENTED RIGHTS CLAIMS, ISSUED OR PENDING. IT IS AGREED THAT LICENSEE ACCEPTS LICENSED
PRODUCTS AND LICENSED METHODS ON AN "AS IS" BASIS. 

        10.2 NOTHING
IN THIS AGREEMENT, EITHER EXPRESS OR IMPLIED, OBLIGATES UNIVERSITY EITHER TO BRING OR TO PROSECUTE ACTIONS OR SUITS AGAINST THIRD PARTIES FOR PATENT
INFRINGEMENT OR TO FURNISH ANY KNOW-HOW OR TRADE SECRETS NOT PROVIDED AS PART OF UNIVERSITY'S PATENT RIGHTS. 

        10.3 IN
NO EVENT SHALL UNIVERSITY BE LIABLE FOR ANY INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES RESULTING FROM THE EXERCISE OF THIS LICENSE OR THE USE OF THE TECHNOLOGY OR
LICENSED PRODUCTS. 

        10.4 NO
WARRANTY OR REPRESENTATION IS MADE THAT ANYTHING MADE, USED, OR SOLD UNDER THE TERMS OF THIS AGREEMENT WILL BE FREE FROM INFRINGEMENT OF ANY THIRD PARTY PATENTS. 

        10.5 THIS
AGREEMENT DOES NOT CONFER BY IMPLICATION, ESTOPPEL, OR OTHERWISE ANY LICENSE OR RIGHTS TO ANY OTHER PATENT OF UNIVERSITY OTHER THAN PATENT RIGHTS AS EXPRESSLY
STATED HEREIN, REGARDLESS OF WHETHER SUCH PATENTS ARE DOMINANT OR SUBORDINATE TO PATENT RIGHTS. UNIVERSITY REPRESENTS THAT AS OF THE EFFECTIVE DATE, IT IS NEITHER THE OWNER NOR THE ASSIGNEE OF ANY
PATENT(S) OR PATENT APPLICATION(S) WHICH INCLUDES CLAIMS WHICH ARE DOMINANT TO PATENT RIGHTS. UNIVERSITY FURTHER REPRESENTS THAT, AS OF THE EFFECTIVE DATE, IT IS THE OWNER OF THE PATENT RIGHTS AND, AS
OF THE EFFECTIVE DATE OF THIS AGREEMENT, IS AWARE OF NO PRIOR ART OR ACTIVITY THAT WOULD RENDER INVALID OR UNENFORCEABLE ANY PATENT ISSUING ON THE PATENT RIGHTS. 

 
 

ARTICLE 11    
    
    Indemnification    
    

        11.1 LICENSEE
shall indemnify, hold harmless and defend UNIVERSITY, its officers, employees, and agents, the sponsors of the research that led to Technology, and the
inventors of the Technology leading to patents and patent applications in Patent Rights and their employers, against any and all claims, suits, losses, damage, costs, fees, and expenses resulting from
or arising out of the exercise of this Agreement or any sublicense. This indemnification includes, but is not limited to, any product liability. Further, such indemnification by LICENSEE shall exclude
claims, losses, damage costs, fees and expenses arising from the gross negligence or willful misconduct of UNIVERSITY, its officers, 

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DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED FOR CONFIDENTIALITY PURPOSES 

11

 

employees,
agents, the sponsors of the research that led to the Technology and the Inventor of the Technology leading to the patents and patent applications in Patent Rights, and their employees. 

        11.2 At
least thirty (30) days prior to the earlier of commercialization by LICENSEE of a Licensed Product or Licensed Method or clinical testing of a Licensed
Product or Licensed Method (where insurance coverage is not being provided to LICENSEE and UNIVERSITY by a governmental body or other entity), LICENSEE, at its sole cost and expense, shall insure its
activities in connection with the work under this Agreement and obtain, keep in force, and maintain insurance as follows, or an equivalent program of self insurance: 

	11.2.1
	Comprehensive
or commercial general liability insurance (contractual liability included) with its minimum limits as follows:

	•
	Each
Occurrence $1,000,000

	•
	Products/Completed
Operations Aggregate $5,000,000

	•
	Personal
and Advertising Injury $1,000,000

	•
	General
Aggregate (commercial form only) $5,000,000

	11.2.2
	The
coverage and limits specified above do not in any way limit the liability of the LICENSEE under this Agreement. The LICENSEE shall furnish UNIVERSITY with certificates of
insurance showing compliance with all requirements. Such certificates must:

	•
	Provide
for thirty (30) day advance written notice to UNIVERSITY of any modification.

	•
	Indicate
that UNIVERSITY has been endorsed as an additional Insured under the coverage specified above.

	•
	Include
a provision that the coverage will be primary and will not relate to nor will be excess over any valid and collectable insurance or program of
self-insurance carried or maintained by UNIVERSITY. 

        11.3 UNIVERSITY
shall notify LICENSEE in writing of any claim or suit brought against UNIVERSITY in respect of which UNIVERSITY intends to invoke the provisions of this
Article. LICENSEE shall keep UNIVERSITY informed on a current basis of its defense of any claims under this Article. 

 
 

ARTICLE 12    
    
    Confidentiality    
    

        12.1 LICENSEE
and UNIVERSITY each agree to safeguard confidential data supplied to it by the other party and relating to UNIVERSITY'S Patent Rights against disclosure to
others with the same degree of care as it exercises with its own data of a similar nature. LICENSEE shall not use such data, except to perform its obligations under this Agreement, and shall not
disclose such data to others (except to its employees, agents, or consultants who are bound to LICENSEE by a like obligation of confidentiality) without the express written permission of UNIVERSITY,
except that the LICENSEE is not prevented from using or disclosing any of the data that: 

	12.1.1
	LICENSEE
can demonstrate by written records was previously known to it; or

	12.1.2
	is
now or becomes in the future public knowledge other than through acts or omissions of the LICENSEE; or

	12.1.3
	is
lawfully obtained by LICENSEE from sources independent of UNIVERSITY; or 

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DESIGNATES PORTIONS OF THIS DOCUMENT THAT HAVE BEEN OMITTED FOR CONFIDENTIALITY PURPOSES 

12

 

	12.1.4
	is
independently developed by LICENSEE as shown by written documentation. 

The
secrecy obligations of LICENSEE under these terms shall remain in effect for five (5) years after the termination date of this Agreement. 

	12.2
	The
obligations of confidentiality and limited use hereunder apply to any confidential information of UNIVERSITY provided to LICENSEE relating to the subject matter of this
Agreement, whether supplied under this Agreement or previously. 

 
 

ARTICLE 13    
    
    Miscellaneous    
    

        13.1 This
Agreement is subject to and shall be construed and enforced in accordance with the laws of the State of Arizona, but the scope and validity of any patent or patent
application shall be governed by the applicable laws of the country where the patent or patent application is filed. 

        13.2 This
Agreement embodies the entire understanding of the parties, and there are no other agreements or understandings, either express or implied, between the parties
relating to the subject matter hereof. No amendment or modification of this Agreement shall be valid or binding upon the parties unless made in writing and signed on behalf of each of the parties by
their respective duly authorized officers or agents. The letter of intent dated December 1, 1997 and fully executed on December 5, 1997 is hereby terminated. 

        13.3 The
headings of the several Articles are inserted for convenience of reference only and are not intended to be a part of or affect the meaning or interpretation of this
Agreement. 

        13.4 LICENSEE
shall ensure that any products or services sold in the United States will be manufactured substantially within the United States. 

        13.5 LICENSEE
shall notify UNIVERSITY if LICENSEE becomes aware that this Agreement is subject to any U.S. or foreign government reporting or approval requirement, LICENSEE
shall make all necessary filings and pay all costs including, but not limited to, fees, penalties, and all other out-of-pocket costs associated with such reporting or approval
process. 

        13.6 LICENSEE
shall observe all applicable United States and foreign laws with respect to the transfer of Licensed Products or Licensed Method and related technical data to
foreign countries, including, without limitation, the Export Administration Regulations. 

        13.7 In
case any of the provisions contained in this Agreement is held to be invalid, illegal, or unenforceable in any respect, that invalidity, illegality, or
unenforceability will not affect any other provisions of this Agreement, and this Agreement will be construed as if the invalid, illegal, or unenforceable provisions had never been contained in it. 

        13.8 The
parties agree to be bound by applicable state and federal rules governing equal employment opportunity and nondiscrimination. 

        13.9 The
parties agree that should a dispute arise between them, in any manner, concerning this Agreement, and said dispute involves the sum of Thirty Thousand Dollars
($30,000) or less in money damages only, exclusive of interest or cost of attorney's fees, the parties will submit the matter to binding arbitration pursuant to the Arizona Supreme Court Rules for
Compulsory Arbitration and the decision of the arbitrator(s) shall be final and binding upon the parties. 

        13.10 The
parties recognize that the performance by the UNIVERSITY may be dependent upon the appropriation of funds by the State Legislature of Arizona. Should the
Legislature fail to appropriate the necessary funds, the UNIVERSITY may cancel this agreement without further duty or 

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13

 

obligation.
The UNIVERSITY agrees to notify LICENSEE as soon as reasonably possible after the unavailability of said funds comes to the UNIVERSITY'S attention. 

        13.11 This
Agreement is subject to the provisions of A.R.S. § 38-511. The UNIVERSITY may cancel this Agreement by written notice to the parties if
any person substantially involved in obtaining, drafting, or procuring this Agreement for or on behalf of the UNIVERSITY becomes an employee or consultant in any.capacity of LICENSEE. 

        13.12 The
failure of any party hereto at any time or times to require performance of any provisions of this Agreement shall in no manner affect its right to enforce such
provision at a later time. 

IN
WITNESS WHEREOF, each party hereto has executed this Agreement in duplicate originals by their respective and duly authorized officers on the day and year below written. 

	ARIZONA BOARD OF REGENTS	 	ProlX PHARMACEUTICALS, INC.
	                    on behalf of	 	 	 
	THE UNIVERSITY OF ARIZONA	 	(LICENSEE)
	

By	
 	
/s/ Richard Powell
	
 	

By	

/s/ John S. Lazo

	 	 	(Signature)	 	 	(Signature)
	

Name	
 	

 	
 	

Name	

John S. Lazo
	 	 	
 (Printed)	 	 	
 (Printed)
	

Title:	
 	

Vice President for Research
	
 	

Title	

CEO

	

Date:	
 	

6/3/99
	
 	

Date	

May 27, 1999

	

I have read this Agreement and accept and will abide by the terms and conditions of this Agreement	
 	

 	

 
	

/s/ Garth Powis
	
 	

 	

 
	Garth Powis	 	 	 
	

June 2nd 1999
	
 	

 	

 
	Date	 	 	 	 	 

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14

QuickLinks

EXCLUSIVE LICENSE AGREEMENT between THE UNIVERSITY OF ARIZONA and ProlX PHARMACEUTICALS, INC. Agreement Number 97-0268

ARTICLE 1 Definitions

ARTICLE 2 Grant

ARTICLE 3 Fees and Royalties

ARTICLE 4 Reports and Inspections

ARTICLE 5 Infringement

ARTICLE 6 Term and Termination

ARTICLE 7 Due Diligence

ARTICLE 8 Notices

ARTICLE 9 Assignment

ARTICLE 10 No Warranties

ARTICLE 11 Indemnification

ARTICLE 12 Confidentiality

ARTICLE 13 Miscellaneous

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