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                                                                    Exhibit 10.4

                          LIGHT SCIENCES ONCOLOGY, INC.

                            INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (this "AGREEMENT"), dated as of ________ __,
2006, is entered into by and between Light Sciences Oncology, Inc., a Washington
corporation (the "COMPANY"), and __________________ ("INDEMNITEE").

                                    RECITALS

     A. The Company and indemnitee recognize the litigation risks inherent in
service as a director and/or officer of a corporation, including the substantial
costs involved in defending such matters.

     B. The Company's articles of incorporation (the "ARTICLES") and bylaws (the
"BYLAWS") contain certain provisions, approved by the Company's shareholders,
for indemnification of the Company's directors and/or officers to the full
extent permitted by the Washington Business Corporation Act (the "STATUTE").

     C. The Articles, the Bylaws and the Statute specifically provide that they
are not exclusive, and contemplate that contracts may be entered into between
the Company and its directors and/or officers with respect to indemnification.

     D. The Indemnitee has indicated a desire to supplement the indemnification
provisions in the Articles and Bylaws to provide additional protections against
the risks associated with his service to the Company and further clarify his
rights with respect to indemnification in certain circumstances.

     E. To induce Indemnitee to continue his service as a director and/or
officer of the Company, the Company and the Indemnitee now agree that they
should enter into this Indemnification Agreement.

                                    AGREEMENT

1.   INDEMNIFICATION OF INDEMNITEE

     1.1  SCOPE

     Subject to Section 4.1 and all other terms and conditions of this
Agreement, the Company agrees to indemnify and hold harmless Indemnitee, to the
full extent permitted by law, whether or not specifically authorized by this
Agreement, the Articles, the Bylaws, the Statute or otherwise, for any
Indemnifiable Losses (as defined below) which the Indemnitee is or becomes
legally obligated to pay in connection with any Proceeding. In the event of any
change, after the date of this Agreement, in any applicable law, statute or rule
regarding the right of a Washington corporation to indemnify a director and/or
officer, such changes, to the extent that they would expand Indemnitee's
indemnification rights, shall be within the purview of Indemnitee's rights and
the Company's obligations under this Agreement, and, to the extent that they
would narrow Indemnitee's indemnification rights, shall not affect or limit the
scope of this Agreement; provided, however, that

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any change that is required by applicable laws, statutes or rules to be applied
to this Agreement shall be so applied regardless of whether the effect of such
change is to narrow Indemnitee's rights.

     1.2  NONEXCLUSIVITY

     The indemnification provided by this Agreement is not exclusive of any
rights to which Indemnitee may be entitled under the Articles, the Bylaws, any
other agreement, any vote of shareholders or disinterested directors, the
Statute, or otherwise, whether as to action in Indemnitee's official capacity or
otherwise.

     1.3  DEFINITION OF INDEMNIFIABLE LOSSES

     For purposes of this Agreement, the term "INDEMNIFIABLE LOSSES" shall
include (without limitation) any and all damages (compensatory, exemplary,
punitive or otherwise), judgments, fines, penalties, settlements, costs,
attorneys' fees and disbursements, costs of attachment or similar bonds,
investigations, expenses of establishing a right to indemnification under this
Agreement, and any other losses, claims, liabilities or other expenses incurred
in connection with a Proceeding, subject to the limitations set forth in Section
4.1 below.

     1.4  DEFINITION OF PROCEEDING

     For purposes of this Agreement, the term "PROCEEDING" shall include
(without limitation) any threatened, pending or completed claim, action, suit or
proceeding, whether brought by or in the right of the Company or otherwise, and
whether of a civil, criminal, administrative or investigative nature, in which
the Indemnitee may be or may have been involved as a party or otherwise
(including without limitation as a witness), (a) by reason of the fact that
Indemnitee is or was, or has agreed to become, a director and/or officer of the
Company, (b) by reason of any actual or alleged error or misstatement or
misleading statement made or suffered by the Indemnitee, (c) by reason of any
action taken by Indemnitee or of any inaction on Indemnitee's part while acting
as such director and/or officer, or (d) by reason of the fact that Indemnitee
was serving at the request of the Company as a director, trustee, officer,
employee or agent of the Company or another corporation, partnership, joint
venture, trust or other enterprise (including without limitation employee
benefit plans and administrative committees thereof) (which request will be
conclusively presumed in the case of any of the foregoing that are "affiliates"
of the Company as defined in Rule 12b-2 under the Securities Exchange Act of
1934, as amended); provided, however, that, except with respect to an action to
enforce the provisions of this Agreement, the term "Proceeding" shall not
include any action, suit, claim or proceeding instituted by or at the direction
of Indemnitee unless such action, suit, claim or proceeding is or was authorized
or ratified by the Company's Board of Directors.

     1.5  DETERMINATION OF ENTITLEMENT

     In the event that a determination of Indemnitee's entitlement to
indemnification is required pursuant to Section 23B.08.550 of the Statute or its
successor or pursuant to other applicable law, the party specified therein as
the determining party shall make such determination; provided, however, (a) that
Indemnitee shall initially be presumed in all cases to be entitled to
indemnification, (b) that Indemnitee may establish a conclusive presumption of
any fact necessary to such a determination by delivering to the Company a
declaration made under penalty of perjury that such fact is true and (c) that,
unless the Company shall deliver to Indemnitee written notice of a determination
that Indemnitee is not entitled to indemnification within twenty (20) days of
the Company's receipt of

                                                                             -2-

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Indemnitee's initial written request for indemnification, such determination
shall conclusively be deemed to have been made in favor of the Company's
provision of indemnification and Company agrees not to assert otherwise.

     1.6  SURVIVAL

     The indemnification provided under this Agreement shall apply to any and
all Proceedings, notwithstanding that Indemnitee has ceased to serve in a
capacity referred to in Section 1.4(a)-(d).

2.   EXPENSE ADVANCES

     2.1  GENERALLY

     The right to indemnification for Indemnifiable Losses conferred by Section
1 shall include the right to have the Company pay Indemnitee's expenses in any
Proceeding as such expenses are incurred and in advance of such Proceeding's
final disposition (such right is referred to hereinafter as an "EXPENSE
ADVANCE"), subject to Sections 2.2, 4 and 5 and all other terms and conditions
of this Agreement.

     2.2  CONDITIONS TO EXPENSE ADVANCE

     The Company's obligation to provide an Expense Advance is subject to (a)
Indemnitee or his or her representative having first executed and delivered to
the Company an undertaking, which need not be secured and shall be accepted
without reference to Indemnitee's financial ability to make repayment, by or on
behalf of Indemnitee to repay all Expense Advances if and to the extent that it
shall ultimately be determined by a final, unappealable decision rendered by a
court having jurisdiction over the parties and the subject matter of the dispute
that Indemnitee is not entitled to be indemnified under this Agreement or
otherwise; and (b) Indemnitee furnishing, upon request by the Company and if
required under applicable law, a written affirmation of Indemnitee's good faith
belief that Indemnitee has met any applicable standards of conduct.

     2.3  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 the
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.

3.   PROCEDURES FOR ENFORCEMENT

     3.1  ENFORCEMENT

     In the event that a claim for indemnification hereunder is made and is not
paid in full within twenty days after written notice of such claim is delivered
to the Company, Indemnitee may, but need not, at any time bring suit against the
Company to recover the unpaid amount of the claim (an "ENFORCEMENT ACTION"),
subject to all other terms, conditions and limitations of this Agreement.

                                                                             -3-

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     3.2  PRESUMPTIONS IN ENFORCEMENT ACTION

     In any Enforcement Action the following presumptions (and limitation on
presumptions) shall apply:

          (a) The Company shall conclusively be presumed to have entered into
this Agreement and assumed the obligations imposed on it to induce Indemnitee to
accept the position of, or to continue as a director and/or officer of the
Company; and

          (b) Neither (i) the failure of the Company (including its Board of
Directors, independent or special legal counsel or the Company's shareholders)
to have made a determination prior to the commencement of the Enforcement Action
that indemnification of Indemnitee is proper in the circumstances nor (ii) an
actual determination by the Company, its Board of Directors, independent or
special legal counsel or the shareholders that Indemnitee is not entitled to
indemnification shall be a defense to the Enforcement Action or create a
presumption that Indemnitee is not entitled to indemnification.

     3.3  ATTORNEYS' FEES AND EXPENSES FOR ENFORCEMENT ACTION

     The Company shall indemnify and hold harmless Indemnitee against all of
Indemnitee's reasonable fees and expenses in bringing and pursuing any
Enforcement Action (including reasonable attorneys' fees at any stage, including
on appeal); provided, however, that the Company shall not be required to provide
such indemnity (a) if a court of competent jurisdiction determines that all the
material assertions made by Indemnitee in such Enforcement Action were not made
in good faith or were frivolous or (b) to the extent limited under Section 4.1
below.

4.   LIMITATIONS

     4.1  LIMITATION ON INDEMNITY

     Notwithstanding any other provision of this Agreement, the Company shall
not be obligated to provide indemnification pursuant to this Agreement:

          (a) on account of any suit in which a final, unappealable decision is
rendered by a court having jurisdiction over the parties and the subject matter
of the dispute for an accounting of profits made from the purchase or sale by
Indemnitee of securities of the Company in violation of the provisions of
Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto;

          (b) for Indemnifiable Losses that have been paid directly to
Indemnitee by an insurance carrier under a policy of insurance maintained by the
Company;

          (c) on account of Indemnitee's conduct which is finally adjudged with
no further right of appeal to have been intentional misconduct, a knowing
violation of law, a violation of RCW 23B.08.310 or any successor provision of
the Statute, or a transaction from which Indemnitee derived personal benefit in
money, property or services to which Indemnitee was not legally entitled;

          (d) to the extent that the Indemnitee is indemnified and actually paid
otherwise than pursuant to this Agreement;

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          (e) if a final, unappealable decision is rendered by a court having
jurisdiction over the parties and the subject matter of the dispute finding that
paying such indemnification is prohibited by applicable law;

          (f) to the extent that attorneys' fees, costs and disbursements, or
similar expenses, that otherwise would constitute Indemnifiable Losses hereunder
are determined to be unreasonable by a final, unappealable decision rendered by
a court having jurisdiction over the parties and the subject matter of the
dispute, provided that the burden of proof that any Indemnifiable Losses are
unreasonable shall be on the Company; or

          (g) to the extent such Indemnifiable Losses have been incurred by
Indemnitee in violation of the terms of Section 5 below.

     4.2  PARTIAL INDEMNIFICATION

     If Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for some or a portion of any Indemnifiable Losses
in connection with a Proceeding, but not, however, for the total amount thereof,
the Company shall nevertheless indemnify Indemnitee for the portion of such
Indemnifiable Losses to which Indemnitee is entitled.

     4.3  MUTUAL ACKNOWLEDGMENT

     The Company and Indemnitee acknowledge that, in certain instances, federal
law or public policy may override applicable state law and prohibit the Company
from indemnifying Indemnitee under this Agreement or otherwise. For example, the
Company and Indemnitee acknowledge that the Securities and Exchange Commission
has taken the position that indemnification is not permissible for liabilities
arising under certain federal securities laws, and federal legislation prohibits
indemnification for certain ERISA violations. Furthermore, Indemnitee
understands and acknowledges that the Company has undertaken or may be required
in the future to undertake with the Securities and Exchange Commission to submit
the question of indemnification to a court in certain circumstances for a
determination of the Company's right under public policy to indemnify
Indemnitee.

5.   NOTIFICATION AND DEFENSE OF CLAIM

     5.1  NOTIFICATION

     Promptly after receipt by Indemnitee of notice of the commencement of any
Proceeding, Indemnitee will, if a claim is to be made against the Company under
this Agreement, notify an officer of the Company in writing of the nature and
status of the Proceeding; provided, however, that the omission so to notify an
officer of the Company will not relieve the Company from any obligation which it
may have to Indemnitee under this Agreement or otherwise unless and only to the
extent that such omission can be shown to have prejudiced the Company.

     If, at the time of the receipt of a notice of a claim pursuant to this
Section 5.1, the Company has director and officer liability insurance in effect,
the Company shall give prompt notice of the commencement of such Proceeding to
the insurers in accordance with the procedures set forth in the respective
policies (unless the Indemnitee's involvement in such Proceeding is solely as a
witness or there is otherwise no basis for asserting coverage). The Company
shall take all necessary action to

                                                                             -5-

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cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as
a result of such Proceeding in accordance with the terms of such policies.

     5.2  DEFENSE OF CLAIM

     With respect to any such Proceeding as to which Indemnitee notifies the
Company of the commencement thereof or otherwise seeks indemnification
hereunder:

          (a) The Company may participate at its own expense in such Proceeding;

          (b) The Company, jointly with any other indemnifying party similarly
notified, may assume the defense of the Proceeding with counsel reasonably
satisfactory to Indemnitee. After notice from the Company to Indemnitee of its
election to assume the defense, the Company shall not be liable to Indemnitee
under this Agreement or otherwise for any legal or other expenses of counsel
(other than reasonable costs of investigation) subsequently incurred by
Indemnitee in connection with the defense of such Proceeding, unless (i) the
employment of counsel by Indemnitee has been authorized in advance by the
Company in writing, (ii) Indemnitee shall have reasonably concluded that there
may be a conflict of interest between the Company and Indemnitee in the conduct
of the defense of such action and notified the Company in writing to that effect
in advance of the expense, (iii) the Company shall not in fact have employed
counsel to assume the defense of such action, or (iv) the Company is not
financially or legally able to perform its indemnification obligations, in each
of which cases the fees and expenses of counsel shall be at the expense of the
Company. The Company shall not be entitled to assume the defense of any action,
suit or proceeding brought by or on behalf of the Company or as to which
Indemnitee shall have made the conclusion provided for in (ii) or (iv) above;

          (c) The Company shall not settle any action or claim in any manner
which would impose any penalty or limitation on Indemnitee that would not be an
Indemnifiable Loss hereunder for which indemnification would be provided by the
Company without Indemnitee's written consent.

6.   MISCELLANEOUS

     6.1  ENTIRE AGREEMENT

     This Agreement is the entire agreement of the parties regarding its subject
matter and supersedes all prior written or oral communications or agreements.

     6.2  SEVERABILITY

     Nothing in this Agreement is intended to require or shall be construed as
requiring the Company to do or fail to do any act in violation of applicable
law. The Company's inability, pursuant to court order, to perform its
obligations under this Agreement shall not constitute a breach of this
Agreement. The provisions of this Agreement shall be severable. If this
Agreement or any portion shall be invalidated on any ground by any court of
competent jurisdiction, then the Company shall nevertheless indemnify Indemnitee
to the full extent permitted by any portion of this Agreement not invalidated,
and the balance of this Agreement shall be enforceable in accordance with its
terms.

                                                                             -6-

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     6.3  NOTICES

     Notices given pursuant to this Agreement shall be deemed duly given on the
date of personal delivery, on the date sent by fax or three days after mailing
if mailed by certified or registered mail, return receipt requested, postage
prepaid, to the party at its address below or such other address of which the
addressee may subsequently notify the other parties in writing.

     6.4  GOVERNING LAW

     This Agreement and the rights and obligations of the parties shall be
governed by and construed in accordance with the laws of the state of
Washington, without giving effect to principles of conflicts of law.

     6.5  COUNTERPARTS

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

     6.6  AMENDMENTS; WAIVERS

     Neither this Agreement nor any provision may be amended except by written
agreement signed by the parties. No waiver of any breach or default shall be
considered valid unless in writing, and no such waiver shall be deemed a waiver
of any subsequent breach or default.

     6.7  SUCCESSORS AND ASSIGNS

     This Agreement shall be binding upon the Company and its successors and
assigns, and inure to the benefit of Indemnitee and Indemnitee's heirs, legal
representatives and assigns.

                            (Signature page follows)

                                                                             -7-

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

                                        COMPANY:

                                        LIGHT SCIENCES ONCOLOGY, INC.

                                        By:
                                            ------------------------------------
                                        Its
                                            ------------------------------------

                                        Address:
                                                 -------------------------------

                                                 -------------------------------

                                                 -------------------------------

                                        INDEMNITEE:

                                        ----------------------------------------
                                        Name:
                                              ----------------------------------

                                        Address:
                                                 -------------------------------

                                                 -------------------------------

                                                 -------------------------------

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                                                                    Exhibit 10.5

Light Sciences Oncology, Inc.

                       (LIGHT SCIENCES ONCOLOGY(TM) LOGO)

        34931 SE Douglas Street, Suite 200, Snoqualmie, Washington 98065

                            CONFIDENTIAL INFORMATION

October 7, 2005

Dear Llew,

I am very pleased to confirm our offer of employment with Light Sciences
Oncology, Inc. ("LSO"), commencing upon the first business day following the
closing of LSO's preferred stock financing. This letter sets forth the terms of
your employment.

1. Position and Reporting Relationships. Your job title will be President and
CEO. During your employment, you will devote your full working time and
attention to the business of LSO to the exclusion of all other business
activities and will not be employed (e.g., as an employee or independent
contractor) by any other business, without the prior approval of LSO.

2. Compensation

     (a) You will receive an annual base salary of $400,000.00, subject to
     payroll withholding and deductions. The salary will be payable twice per
     month in accordance with LSO's standard payroll practices. Your base salary
     will be reviewed annually by the appropriate management of LSO.

     (b) LSO's management intends to recommend to the Board of Directors that it
     approve a performance bonus plan and a stock option plan. The details of
     the adopted plans as well as the eligibility and specifics of any awards to
     you will be communicated to you after action by the Board of Directors.

3. Benefits. You will be eligible to participate in LSO employee benefit
programs made available to all employees, subject to and in accordance with the
eligibility and other terms and conditions of the applicable programs. These
programs are currently expected to include health care coverage
(medical/dental/vision/prescription), short term and long term disability, group
life and accidental death benefit, travel insurance, flexible spending accounts
for health and dependent care expenses, Employee Assistance Program (EAP) and a
401(k) retirement savings plan. All benefits generally are effective upon your
date of hire with the exception of health coverage, which will be effective on
the first of the month following your date of hire and the flexible spending
account which requires enrollment. Your Light Sciences Corporation ("LSC")
health coverage will continue until the last day of the month in which your
employment with LSC terminates. The details of all these plans will be discussed
in our

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Orientation Program. Should you have any questions please call Julie Lester at
(425) 369-2887.

4. Vacation and Sick Leave. You will be entitled to vacation and sick leave in
accordance with LSO's normal policy as in effect from time to time. Currently,
employees with less than five years of service receive three weeks of vacation
per year, and employees with five years or more of service receive four weeks.
You will receive service credit from your hire date with LSC. Employees
currently earn two weeks of sick leave per year.

5. Confidential Disclosure/Non-Competition Agreement. This offer and your
employment with LSO are contingent upon your execution of LSO's Invention,
Proprietary Information and Noncompetition Agreement prior to or on your start
date, a copy of which will be provided to you. Please review the agreement
carefully and, if appropriate, have your attorney review it as well.

6. At Will Employment. If you accept LSO's offer of employment, you will be an
employee-at-will, meaning that either you or LSO may terminate your employment
at any time for any reason, with or without cause. Any statements to the
contrary that have been made to you, or that may be made to you, by LSO or its
agents or representatives are superseded by this offer letter.

7. Employment Policies. You agree that you will comply with all policies and
procedures of LSO regarding nondiscrimination, harassment, and other
employee-related matters, as updated from time to time. You acknowledge that LSO
may adopt new policies in the future and may change existing policies, and that
your employment is contingent on your compliance with such policies.

8. Immigration. For purposes of federal immigration law, you will be required to
provide to LSO documentary evidence of your identity and eligibility for
employment in the United States. Such documentation must be provided to us with
three (3) business days for your date of hire, or our employment relationship
may be terminated.

9. LSC Separation and Release Agreement. You will be required to complete all
new employee paperwork. If you are a current LSC employee, you will be required
to sign a "Separation Agreement and Release from Claims" in the form provided to
you.

10. Release of Employment Records. By accepting this offer of employment, you
consent to the release of your LSC employment file and records to LSO.

Llew, we are very excited that you will be joining our team. Please take time to
consider this offer and its terms. However, this offer will terminate if we do
not receive your written acceptance on or before 9/28/2005. In addition, this
offer of employment is contingent upon the closing of the preferred stock
financing of LSO. I am confident that you will make a significant contribution
to the challenging work that we are committed to at LSO. I personally look
forward to working with you. If you have any questions regarding the offer,
please call Rick Baldacci at 303-456-2777.

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Please indicate your acceptance of our offer of employment on the terms set
forth in this letter by signing below and returning it to Human Resources, c/o
Julie Lester, at LSO.

Sincerely,

LIGHT SCIENCES ONCOLOGY, INC.

By: /s/ Jay Winship
    ---------------------------------

ACCEPTANCE:

/s/ Llew Keltner
-------------------------------------   ----------------------------------------
Print: Llew Keltner                     Date

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