Document:

Exhibit
10.14

 

LICENSE
AGREEMENT

 

Between:     THE
UNIVERSITY OF BRITISH COLUMBIA

 

and

 

ONCOGENEX TECHNOLOGIES INC.,

 

Table of Contents

 

	
  Article

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.0

  	
  DEFINITIONS

  	
  2

  
	
  2.0

  	
  PROPERTY
  RIGHTS IN & TO THE TECHNOLOGY

  	
  5

  
	
  3.0

  	
  GRANT OF
  LICENSE

  	
  6

  
	
  4.0

  	
  SUBLICENSING

  	
  6

  
	
  5.0

  	
  ROYALTIES
  & MILESTONE PAYMENTS

  	
  7

  
	
  6.0

  	
  EQUITY &
  ANNUAL LICENSE MAINTENANCE FEE

  	
  9

  
	
  7.0

  	
  PATENTS

  	
  10

  
	
  8.0

  	
  DISCLAIMER
  OF WARRANTY

  	
  11

  
	
  9.0

  	
  INDEMNITY
  & LIMITATION OF LIABILITY

  	
  13

  
	
  10.0

  	
  PUBLICATION
  & CONFIDENTIALITY

  	
  13

  
	
  11.0

  	
  PRODUCTION
  & MARKETING

  	
  15

  
	
  12.0

  	
  ACCOUNTING
  RECORDS & REPORTS

  	
  17

  
	
  13.0

  	
  INSURANCE

  	
  18

  
	
  14.0

  	
  ASSIGNMENT
  & CHANGE OF CONTROL

  	
  19

  
	
  15.0

  	
  GOVERNING
  LAW

  	
  19

  
	
  16.0

  	
  NOTICES

  	
  19

  
	
  17.0

  	
  TERM

  	
  20

  
	
  18.0

  	
  TERMINATION
  OF AGREEMENT

  	
  20

  
	
  19.0

  	
  MISCELLANEOUS
  COVENANTS OF LICENSEE

  	
  22

  
	
  20.0

  	
  MANAGEMENT
  OF CONFLICTS OF INTEREST

  	
  23

  
	
  21.0

  	
  GENERAL

  	
  23

  

 

	
   

  	
  Schedules

  
	
  “A”

  	
  Description of “Technology”

  
	
  “B”

  	
  Payment Report

  
	
  “C”

  	
  UBC License Agreement Annual Report

  
	
  “D”

  	
  Address for Notices & Payment Instructions

  

 

*Certain
information in this exhibit has been omitted as confidential, as indicated by
[***]. This information has been filed separately with the Commission.

 

 

LICENSE AGREEMENT

 

BETWEEN:

 

THE UNIVERSITY OF BRITISH
COLUMBIA, a
corporation continued under the University Act
of British Columbia with its administrative offices at 2075 Wesbrook Mall,
Vancouver, British Columbia, V6T 1W5

 

(“UBC”)

 

AND:

 

ONCOGENEX TECHNOLOGIES INC., a corporation incorporated under
the laws of Canada, # 400 – 1001 West Broadway Vancouver, British Columbia,
Canada, V6H 4B1

 

(the “Licensee”)

 

WHEREAS:

 

UBC has been engaged in
research during the course of which it has invented, developed and/or acquired
certain technology relating to Hsp27 antisense and its use in the treatment of
cancer as further described in [***] (the “Investigators”)
in the Prostate Centre at UBC;

 

It is UBC’s objective to
exploit its technology for the public benefit, and to generate further research
in a manner consistent with its status as a non-profit, tax exempt educational
institution; and

 

The Licensee and UBC have
agreed to enter into this license on the terms and conditions set out in this
agreement (the “Agreement”).

 

THE PARTIES AGREE AS
FOLLOWS:

 

1.0                          DEFINITIONS

 

1.1                           In this Agreement:

 

(a)           “Annual Maintenance Fee” is defined in
Article 6.7;

 

(b)           “Annual Report” means a report in the form
referred to in Article 12;

 

(c)           “Affiliated Company” or “Affiliated Companies” means two or more
corporations where the relationship between them is one in which one of them is
a subsidiary of the other, or both are subsidiaries of the same corporation, or
fifty percent (50%) or more of the voting shares of each of them is owned or
controlled by the same person, corporation or other legal entity;

 

(d)           “Confidential Information” means any and all
knowledge, know-how, information, and/or techniques disclosed by the one party
(referred to in this capacity as the “Provider”)
to another (referred to in this capacity as the “Recipient”), including, without limiting the generality of the
foregoing, all research, data, specifications, plans, drawings, prototypes,
models, documents, records, instructions, manuals, papers, or other materials
of any nature whatsoever, whether written or otherwise, relating to same. In
order to constitute 

 

2

 

“Confidential Information” for the purposes
of this Agreement, the Provider must clearly identify it in writing as being
confidential, or if the disclosure takes place orally or in some other
non-tangible form, the Provider must summarize it in writing and identify it as
being confidential within thirty (30) days of making the disclosure. Furthermore,
such disclosures shall not be considered “Confidential Information” for the
purposes of this Agreement if and when it:

 

(i)            is
made subject to an order by judicial or administrative process requiring the
Recipient to disclose any or all of the Confidential Information disclosed to
it by the Provider, provided however that the Recipient shall promptly notify
the Provider and allow the Provider reasonable time to oppose such process
before disclosing any of the Confidential Information disclosed to it by the
Provider;

 

(ii)           is
published or becomes available to the general public other than through a
breach of this Agreement, provided that disclosures of Confidential Information
which are specific (i.e. relating to specific products, operating conditions
and/or biological or chemical compositions) shall not fall within the forgoing
exception merely because they are embraced by general disclosures in the public
domain;

 

(iii)          is
obtained by the Recipient from a third party with a valid right to disclose it,
provided that said third party is not under a confidentiality obligation to the
Discloser;

 

(iv)          is
independently developed by employees, agents or consultants of the Recipient
who had no knowledge of or access to the Confidential Information disclosed to
it by another party to this Agreement as evidenced by the Recipient’s business
records; or

 

(v)           was
possessed by the Recipient prior to receipt from the Provider, other than
through prior disclosure by the Provider, as evidenced by the Recipient’s
business records.

 

(e)           “Cure Date” is defined in
Article 11.4;

 

(f)            “Dispute” is defined in Article 11.4;

 

(g)           “Effective Date” means April 5th, 2005;

 

(h)           “Effective Termination Date” means the date
on which this Agreement is terminated under Article 18;

 

(i)            “First Use of the Technology” means the
earlier of either:

 

(i)            the
first use of the Technology or any Improvement, or

 

(ii)           the
first sale of a Product

 

in exchange for valuable consideration;

 

(j)            “Human Clinical Trials” is defined in
Article 13.2;

 

3

 

(k)           “Improvements” means collectively the UBC
Improvements, Licensee Improvements and Joint Improvements;

 

(l)            “Joint Improvements” means improvements,
variations, updates, modifications, and enhancements made and/or acquired
jointly by UBC and the Licensee or any sublicensees or sub-sublicensees of the
Licensee relating to the Technology at any time after the Effective Date;

 

(m)          “Licensee Improvements” means improvements,
variations, updates, modifications, and enhancements made and/or acquired
solely by the Licensee or any sublicensees or sub-sublicensees of the Licensee
relating to the Technology at any time after the Effective Date;

 

(n)           “Major Market Country” means any one of the
United States, Canada, the European Community, or Japan;

 

(o)           “Manuscript” is defined in Article 10.3;

 

(p)           “Mediator” is defined in Article 11.5;

 

(q)           “Objectionable Material” is defined in
Article 10.3;

 

(r)            “Patents” mean
collectively the rights in and to any and all inventions which are disclosed in
the U.S., Canadian and foreign patents and patent applications identified in
Exhibit “A” and all:

 

(i)            counterparts,
continuations, divisionals, continuations-in-part, continuing prosecution
applications, and requests for continued examinations, extensions, term
restorations, renewals, reissues, re-examinations, or substitutions thereof;

 

(ii)           corresponding
international patent applications;

 

(iii)          corresponding
foreign patent applications, including supplementary protection certificates
and other administrative protections; and

 

(iv)          international
and foreign counterpart patents resulting therefrom,

 

all of which will be deemed added, from time to time,
to Schedule “A”.

 

(s)           “Payment Report”  means a report in the form referred to in
Article 12 setting out in detail how the amount of Revenue was determined;

 

(t)            “Phase II Clinical Studies” means a human
clinical trial that would satisfy the requirements for a Phase 2 study as
defined in U.S. FDA 21 C.F.R. 312.21(b) or similar regulations in a Major
Market Country;

 

(u)           “Phase III Clinical Studies” means a human
clinical trial that would satisfy the requirements for a Phase 3 study as
defined in U.S. FDA 21 C.F.R. 312.21(c) or similar regulations in a Major
Market Country;

 

(v)           “Product(s)” means goods or services
manufactured or provided in connection with the use of all or some of the
Technology and/or any Improvements;

 

4

 

(w)          “Remedy Plan” is defined in
Article 11.4;

 

(x)            “Revenue” 
means all revenues, receipts, money, and the fair market value of any
shares or other securities, or other consideration directly or indirectly
collected or received whether by way of cash, credit or other value received by
the Licensee, sublicensees or sub-sublicensees from the marketing,
manufacturing, licensing, sale or distribution of the Technology and any
Improvements, and/or any Products,  in
any or all parts of the world where the Licensee, sublicensees or
sub-sublicensees is permitted by law and this Agreement to market, manufacture,
license, sell or distribute the Technology and any Improvements, and/or any
Products, less the following deductions to the extent included in the amounts
invoiced and thereafter actually allowed and taken:

 

(i)            [***]

 

(ii)           [***]

 

(iii)          taxes,
duties and customs on all sales of Products,

 

(iv)          [***]

 

(v)           [***]

 

(y)           “Royalty Due Dates”  means the last day of March, June, September
and December of each year during the Term;

 

(z)            “Technology” 
means the Patents and all knowledge, know-how and/or technique or
techniques invented, developed and/or acquired, before the Effective Date by
UBC or the Licensee relating to, and including, the technology and materials
described in Schedule “A”, as
amended from time to time, including, without limitation all related research,
data, specifications, instructions, manuals, papers or other related materials
of any nature at all, whether written or otherwise, and UBC’s Confidential
Information;

 

(aa)         “Term” is defined in Article 17.1;

 

(bb)         “UBC Improvements” means improvements,
variations, updates, modifications, and enhancements made and/or acquired
solely by UBC relating to the Technology at any time after the Effective Date;

 

(cc)         “UBC Shares” is defined in Article 6.1; and

 

(dd)         “UBC Trade-marks” means any mark,
trade-mark, service mark, logo, insignia, seal, design, symbol or device used
by UBC in any manner at all.

 

2.0                          PROPERTY
RIGHTS IN & TO THE TECHNOLOGY

 

2.1                           The parties
acknowledges and agrees that:

 

(a)           UBC owns all right,
title and interest in and to the Technology, all UBC Improvements and all Joint
Improvements;

 

5

 

(b)           the Licensee [***] in
and to all Licensee Improvements.

 

2.2                           The Licensee will, at
the request of UBC, sign all documents as may be required to ensure that
ownership of the Technology, UBC Improvements and any Joint Improvements remain
with UBC.

 

2.3                           During the Term, the
Licensee and UBC will each periodically provide to the other party details of
any Improvements which a party has developed and or acquired, and in the case
of the Licensee any Improvement which it has made or any Improvement of which
it becomes aware of that was developed and/or acquired by any sublicensees or
sub-sublicensees of the Licensee.

 

3.0                          GRANT OF
LICENSE

 

3.1                           Subject to Article
3.4, UBC grants to the Licensee a worldwide, exclusive license to use and
sublicense the Technology, UBC Improvements and any Joint Improvements and to
manufacture, have made, distribute, and sell the Products on the terms and
conditions set out in this Agreement.

 

3.2                           The license granted
under this Agreement is granted only to the Licensee and not to any Affiliated
Companies.

 

3.3                           The Licensee will not
cross-license the Technology or any Improvements without the prior written
consent of UBC, which consent will not be unreasonably withheld.

 

3.4                           The Licensee
acknowledges and agrees that UBC may use the Technology and any Improvements
without charge in any manner at all for research, scholarly publication,
educational and all other non-commercial uses.

 

3.5                           UBC may register a
financing statement regarding this Agreement under the Personal Property Security Act of British
Columbia and/or under similar legislation in those jurisdictions in which the
Licensee carries on business and/or has its chief place of business. The
Licensee will pay for all costs associated with such registrations.

 

3.6                           The Licensee will
give notice to UBC if it is carrying on business and/or locates its chief place
of business in a jurisdiction outside British Columbia before starting business
in that other jurisdiction. If UBC has registered a financing statement under
Article 3.5, the Licensee will file within 15 days of any change in
jurisdiction, the appropriate documents in the Personal Property Registries or
similar registries outside of British Columbia to document the change in
jurisdiction and will provide UBC a copy of the verification statement regarding
each filing within 15 days after receiving the verification statement. The
Licensee will pay for all costs associated with the registrations under this
Article 3.6.

 

4.0                          SUBLICENSING

 

4.1                           The Licensee will not
grant sublicenses of the Technology, UBC Improvements or any Joint Improvements
to Affiliated Companies or other third parties without the prior written
consent of UBC which consent will not be unreasonably withheld. After obtaining
UBC’s consent, the Licensee will provide UBC with a non-redacted
signed
copy of each sublicense granted within 30 days of it being signed by the
Licensee and sublicensee. Such sublicenses will be considered to be
Confidential Information of the Licensee, and will be subject to the
Confidentiality provisions of Article 10. The Licensee shall not be obligated
to obtain UBC’s consent to the granting of a sublicense if the proposed
sublicensee has a market capitalization 

 

6

 

in excess of CAN. $500,000,000 at the time of
the granting of the sublicense, provided always that such sublicense shall be
in full compliance with the terms of this Agreement.

 

4.2                           Any sublicense
granted by the Licensee will be granted only to the sublicensee and cannot be
assigned or further sub-sublicensed without the prior written consent of UBC
such consent not to be unreasonably withheld. All sublicenses and
sub-sublicenses must contain covenants by each sublicensee or sub-sublicensee
to observe and perform terms and conditions similar to those contained in this
Agreement and in particular the Licensee shall cause each sublicensee and
sub-sublicensee to indemnify UBC on the same terms and conditions as are
contained in Article 9.1 of this Agreement. UBC will use commercially
reasonable efforts to respond to any request for consent to a sublicense or
sub-sublicense within 30 days of UBC receiving the draft sublicense or
sub-sublicense from the Licensee, provided that Licensee delivers such notice
in accordance with Article 16, and specifically makes reference to such 30 day
limit and the provisions of this Article 4.2 in its written notice to UBC
requesting such consent. Failure by UBC to respond within such thirty (30) day
notice period will be interpreted as consent to the sublicense.

 

4.3                           Before executing a
sublicense, the Licensee will give notice to UBC of the jurisdictions in which
the sublicensee is carrying on business. If the Licensee, during the term of
the sublicense, becomes aware of the sublicensee carrying on business in
another jurisdiction, then the Licensee will give notice to UBC within five
days. If UBC has registered a financing statement under Article 3.5, the
Licensee will, immediately after executing the sublicense, register a financing
change statement under the Personal Property
Security Act of British Columbia and/or any similar legislation in
those jurisdictions in which each sublicensee carries on business and has its
chief place of business to add each sublicensee to the registration referred to
in Article 3.5, and will provide UBC with a copy of the verification statement
within 15 days after receiving the verification statement. If any sublicensee
changes the jurisdiction within which it is carrying on business and/or the
location of its chief place of business, the Licensee will file the appropriate
documents in the Personal Property Registries or similar registries within or
outside of Canada to document the changes in jurisdiction. The Licensee will
pay for all costs associated with the filings under this Article 4.3.

 

5.0                          ROYALTIES
& MILESTONE PAYMENTS

 

5.1                           In consideration of
the license granted under this Agreement, the Licensee will pay to UBC a
royalty of [***] of the Revenue. For greater clarity it is confirmed that the
royalty of [***] of Revenue will be paid by the Licensee on all Revenue whether
such Revenue is received by the Licensee, any sublicensee and/or any
sub-sublicensee, but excluding product development milestone payments which are
received by the Licensee from a sublicensee.

 

5.2                           In anticipation that
the Licensee may have to enter into additional royalty bearing technology
licenses with third parties which are essential in order to practice and
maximize the commercial success of the Technology and/or Improvements and/or
Products, UBC agrees, if required by the Licensee and if the Licensee has
entered into one or more such licenses with non-Affiliated third parties, that
the royalty on Revenues payable hereunder will be reduced in accordance with
this Article 5.2 if the combined royalty rates of the additional technology
licenses and this License Agreement exceed [***]  The royalty rate payable on Revenues
hereunder will be reduced by one half of the amount in excess of [***] but in
no event will the royalty payable to UBC hereunder ever be reduced to less than
[***] of Revenue. For example, if the additional royalty rates of the
additional technology licenses were [***] then the combined royalty rates would
be [***] and the royalty payable to UBC hereunder would be reduced by the
following amount:  [***] and the royalty
payable to UBC would therefore be reduced as follows:

 

7

 

[***] 
For greater clarity it is confirmed that if the royalties paid by the
Licensee to any third party are subsequently reduced or eliminated, that the
royalty payable to UBC shall thereafter be readjusted upwards to reflect this.

 

5.3                           The royalty is due
and payable within 30 days of each respective Royalty Due Date and is to be
calculated with respect to the Revenue in the three month period immediately
before the applicable Royalty Due Date.

 

5.4                           All royalties paid by
the Licensee to UBC under this Agreement will be in Canadian dollars without
any reduction or deduction of any nature or kind at all. If the Licensee or any
sublicensee or sub-sublicensee receives any Revenue in a currency other than
Canadian dollars, the currency will be converted to the equivalent in Canadian
dollars on the date that the Revenue is recognized by the Licensee according to
the rules of GAAP. The conversion to Canadian dollars shall be based on the
average Bank of Canada exchange rate for buying Canadian dollars with such
currency in the 30 days prior to the date that Revenue is recognized by the
Licensee. The amount of Canadian dollars resulting from the conversion is to be
included in Revenue.

 

5.5                           Products are deemed
to have been sold by the Licensee, any sublicensee or any sub-sublicensee and
included in the Revenue when invoiced, delivered, shipped, or paid for,
whichever is the first.

 

5.6                           Any transaction,
disposition, or other dealing involving all or part of the Technology or any
Improvements or Products, between the Licensee, any sublicensee or any
sub-sublicensee and another person that is not made at fair market value is
deemed to have been made at fair market value, and the fair market value of the
transaction, disposition, or other dealing will be added to and deemed part of
the Revenue and will be included in the calculation of royalties under this
Agreement.

 

5.7                           In addition to all
other payments due pursuant to this Article 5, the Licensee shall pay to UBC
the following milestone payments within thirty (30) days after achievement of
each of the applicable events for the first Product or any subsequent Products,
as the case may be, in the first Major Market Country for such Product;
provided however that no additional milestone payment shall be due or owing for
any Product that meets the same milestone in an additional country once such
milestone payment has already been paid for the first Major Market Country, as
follows:

 

	
  MILESTONE

  	
   

  	
  Milestone Payment for the 

  First Product

  	
   

  	
  Milestone Payment 

  for Each 

  Subsequent Product

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]:

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

The above milestone payments shall be due and payable
if such milestones are met or achieved by the Licensee or any sublicensee or
sub-sublicensee of the Licensee or any other party who has obtained any rights
to the Technology, Improvements or any Products through the Licensee,
sublicensee or any sub-sublicensee. For greater clarity it is confirmed that
[***].

 

8

 

6.0                          EQUITY
& ANNUAL LICENSE MAINTENANCE FEE

 

6.1                           As part of the
consideration for the rights granted by UBC to the Licensee hereunder, the
Licensee agrees to deliver to UBC within thirty (30) days following the
execution of this Agreement, and in lieu of an initial license fee, 30,000
post-consolidation (consolidation having occurred on September 23rd,
2003) voting common shares in the capital stock of the Licensee (the “UBC Shares”).

 

6.2                           The Licensee will use
commercially reasonable efforts to cause all of the UBC Shares to be issued
free from any pooling, escrow or other trading restrictions placed on such
shares by the Licensee or any regulatory authority having jurisdiction over the
Licensee. The Licensee acknowledges and agrees that UBC shall have the right to
transfer any or all of the UBC Shares to a company or society of which UBC is
the sole shareholder in the case of a company or of which UBC controls the
membership, in the case of a society and the Licensee shall take all steps or
do such acts as may be reasonably required to allow such transfer.

 

6.3                           The Licensee
acknowledges and agrees that it will comply with all applicable laws and
legislation with respect to the issuance of the UBC Shares.

 

6.4                           The UBC Shares shall
be deemed to be fully paid for by UBC as of the date of issuance and shall be
the absolute property of UBC. Neither all nor any portion of the UBC Shares
shall be refundable to the Licensee under any circumstances.

 

6.5                           Until the Licensee
becomes a reporting issuer for equity securities under the Securities Act of British Columbia, or
under the applicable securities legislation in any other jurisdiction which has
jurisdiction over the issuance of securities by the Licensee, the Licensee
shall provide to UBC:

 

(a)           Quarterly
financial statements:  Within 60 days
after the last day of each financial quarter, financial statements, including a
balance sheet and a statement of income as of the last date of each financial
quarter, a cumulative statement of income from the first day of the current
financial year to the last day of such financial quarter,

 

(b)           Annual
financial statements:  Within 160 days
after the end of each fiscal year of the Licensee, audited financial statements
of the Licensee prepared by a reputable accounting firm.

 

(c)           Budget:  Sixty (60) days following the end of each
fiscal year the Licensee, shall provide a budget for the upcoming fiscal year
which shall include quarterly financial breakdowns for such fiscal year.

 

(d)           Minutes:                Minutes of all
meetings of the Board of Directors of the Licensee in a timely manner and in no
case later than 30 days after the approval of such Board Minutes by the Board
of Directors;

 

(e)           Litigation:             A summary of any
litigation (pending, threatened or otherwise) or other proceedings against the
Licensee before any court, tribunal or administrative agency, promptly after
the Licensee becomes aware of same;

 

(f)            Material
Adverse Effect:                     Notice of any
default, breach, acceleration, modification or cancellation of any agreement,
arrangement or other transaction 

 

9

 

or matter that may result in a material
adverse effect to the Licensee, promptly after the Licensee becomes aware of
same;

 

(g)           Merger:                  Notice of the
intention to effect a change of control, sale of assets, reorganization,
amalgamation, consolidation, merger or an agreement to amalgamate, consolidate
or merger the Licensee with any entity, promptly after the Licensee becomes
aware of same;

 

(h)           Technical
Report:                                a written report that
documents the technical developments and results of any test marketing, a copy
of which shall be delivered to UBC no later than the first anniversary of the
Effective Date of this Agreement; and

 

(i)            Business
& Marketing Plan:            and update once every year, or
as is reasonably requested by UBC, the Licensee’s business and marketing plan.
Copies of all updates of these plans will be provided to UBC in a timely
manner.

 

6.6                           [***]

 

6.7                           In further
consideration for the license granted hereunder, the Licensee shall pay to UBC,
in addition to all other amounts due under this Agreement, an annual
maintenance fee of CAN. $2,000.00 payable on or before January 2nd
of each year during which this Agreement remains in full force and effect,
starting on January 2, 2006 (the “Annual
Maintenance Fee”). Neither all nor any part of the Annual
Maintenance Fee paid shall be refundable to the Licensee under any
circumstances. The Annual Maintenance Fee is intended to cover maintenance of
this Agreement by UBC, and shall be separate and distinct from any royalties
due to UBC under this Agreement.

 

6.8                           Any information
provided to UBC under Article 6.5 will be considered Confidential Information
of the Licensee and will be subject to the Confidentiality provisions of
Article 10.

 

7.0                          PATENTS

 

7.1                           UBC will own and
manage the Patent portfolio including all Patents for UBC Improvements and
Joint Improvements. The Licensee may identify any process, use or products
arising out of the Technology and any UBC Improvements and Joint Improvements
that may be patentable and UBC will, on the request of the Licensee, take
reasonable steps to apply for a patent in the name of UBC provided that the
Licensee pays all costs of applying for, registering and maintaining the patent
in the jurisdictions in which the Licensee designates that a patent is required.
UBC will consult with the Licensee with respect to the choice of patent
counsel. The Licensee will be given an opportunity to review and provide input
regarding the scope and content of patent applications and to request countries
for foreign filings. UBC will keep the Licensee advised as to all significant
developments with respect to such applications and will make reasonable efforts
to supply the Licensee with copies of material documents received and filed in
connection with the prosecution thereof.

 

7.2                           The Licensee will own
and manage all patents for Licensee Improvements and will pay all costs of
applying for, registering and maintaining the patents filed in respect of
Licensee Improvements. The Licensee, within 30 days of filing of any new patent
application with respect to any Licensee Improvement, will provide to UBC a
copy of the application, and will thereafter make commercially reasonable
efforts to keep UBC informed of all significant developments with respect to
such application.

 

10

 

7.3                           On the issuance of a
patent obtained under Article 7.1, the Licensee becomes the licensee of the
patent on the terms and conditions set out in this Agreement.

 

7.4                           Within 30 days of
execution of this Agreement the Licensee will reimburse UBC for all patent
costs incurred by UBC with respect to the Technology and Patents prior to
execution of this Agreement, provided that such costs have not already been
reimbursed by the Licensee. Thereafter, within 30 days of presentation of
receipts and/or invoices by UBC to the Licensee, the Licensee will reimburse
UBC for the balance of all costs incurred to date regarding any Patents or
Patent applications relating to the Technology and any UBC Improvements or
Joint Improvements licensed under this Agreement.

 

7.5                           The Licensee will not
contest the validity or scope of any Patents licensed under this Agreement.

 

7.6                           The Licensee will
ensure proper patent marking for all uses of the Technology and any
Improvements licensed under this Agreement and will clearly mark, where this is
commercially reasonable and possible, the appropriate patent numbers on any
Products made using the Technology and/or Improvements.

 

8.0                          DISCLAIMER
OF WARRANTY

 

8.1                           [***]

 

(a)           [***]

 

(b)           [***]

 

8.2                           Subject to Article
8.1(a) and (b), UBC makes no representations, conditions or warranties, either
express or implied, regarding the Technology or any Improvements or the
Products. Without limitation, UBC specifically disclaims any implied warranty,
condition or representation that the Technology or any Improvements or the
Products:

 

(a)           correspond with a
particular description;

 

(b)           are of merchantable
quality;

 

(c)           are fit for a
particular purpose; or

 

(d)           are durable for a
reasonable period of time.

 

UBC is not liable for any loss, whether direct,
consequential, incidental or special, which the Licensee or other third parties
suffer arising from any defect, error or fault of the Technology or any
Improvements or Products, or their failure to perform, even if UBC is aware of
the possibility of the defect, error, fault or failure. The Licensee
acknowledges that it has been advised by UBC to undertake its own due diligence
regarding the Technology and any Improvements.

 

8.3                           Subject to Article
8.1(a) and (b), nothing in this Agreement:

 

(a)           constitutes a
warranty or representation by UBC as to title to the Technology and/or any
Improvement or that anything made, used, sold or otherwise disposed of under
the license granted in this Agreement is or will be free from infringement of
patents, copyrights, trade-marks, industrial design or other intellectual
property rights; or

 

11

 

(b)           imposes an obligation
on UBC to bring, prosecute or defend actions or suits against third parties for
infringement of patents, copyrights, trade-marks, industrial designs or other
intellectual property or contractual rights.

 

8.4                           Notwithstanding
Article 8.3, if there is an alleged infringement of the Technology, UBC
Improvement or any Joint Improvements or any right with respect to the
Technology, UBC Improvements or any Joint Improvements, the Licensee may, on
receiving the prior written consent of UBC, [***], prosecute litigation
designed to enjoin infringers of the Technology, UBC Improvements or any Joint
Improvements. Provided that it has first granted its prior written consent, UBC
agrees to reasonably co-operate to the extent of signing all necessary
documents and to vest in the Licensee the right to institute the litigation,
provided that all the direct and indirect costs and expenses of bringing and
conducting the litigation or settlement are paid by the Licensee and in this
case all recoveries are for the benefit of the Licensee.

 

8.5                           If any complaint
alleging infringement of any patent or other proprietary rights is made against
the Licensee or a sublicensee or sub-sublicensee of the Licensee regarding the
use of the Technology or any Joint Improvements or UBC Improvements or the
manufacture, use or sale of the Products, the following procedure will be
adopted:

 

(a)           the Licensee will
promptly notify UBC on receipt of the complaint and will keep UBC fully
informed of the actions and positions taken by the complainant and taken or
proposed to be taken by the Licensee on behalf of itself or a sublicensee or
sub-sublicensee;

 

(b)           except as provided in
Article 8.5(d) and 8.5 (e), all costs and expenses incurred by the Licensee or
any sublicensee or sub-sublicensee of the Licensee in investigating, resisting,
litigating and settling the complaint, including the payment of any award of
damages and/or costs to any third party, will be paid by the Licensee or any
sublicensee or sub-sublicensee of the Licensee, as the case may be;

 

(c)           no decision or action
concerning or governing any final disposition of the complaint will be taken
without full consultation with, and approval by, UBC, which approval will not
be unreasonably withheld;

 

(d)           UBC may elect to
participate as a party in any litigation involving the complaint to the extent
that the court may permit, but any additional expenses generated by such
participation will be paid by UBC (subject to the possibility of recovery of
some or all of the additional expenses from the complainant);

 

(e)           if the complainant is
willing to accept an offer of settlement and one of the parties to this
Agreement is willing to make or accept such offer and the other is not, then
the unwilling party shall conduct all further proceedings at its own expense,
and shall be responsible for the full amount of any damages, costs, accounting
of profits and settlement costs in excess of those provided in such offer, but
shall be entitled to retain unto itself the benefit of any litigated or settled
result entailing a lower payment of costs, damages, accounting of profits and
settlement costs than that provided in such offer; and

 

(f)            the Licensee will pay
all royalties and milestone payments payable under this Agreement to UBC in
trust from the date UBC receives notice of the complaint and until a resolution
of the complaint has been finalized. If the complainant is

 

12

 

successful, then the royalties and milestone
payments paid to UBC in trust under this Article 8.5(f) will be returned to the
Licensee, provided that the amount being returned to the Licensee is no more
than the amount paid by the Licensee to the complainant in the settlement or
other disposition of the complaint. If the complainant does not succeed, then
UBC retains all royalties and milestone payments paid to it under this Article
8.5(f).

 

9.0                          INDEMNITY
& LIMITATION OF LIABILITY

 

9.1                           The Licensee
indemnifies, holds harmless and defends UBC, its Board of Governors, officers,
employees, faculty, students, invitees and agents against any and all claims
(including all associated legal fees and disbursements actually incurred)
arising out of the exercise of any rights under this Agreement, including
without limitation against any damages or losses, consequential or otherwise,
arising in any manner at all from or out of the use of the Technology or any
Improvements or Products licensed under this Agreement by the Licensee or its
sublicensees, sub-sublicensees, or their customers or end-users.

 

9.2                           UBC’s total
liability, whether under the express or implied terms of this Agreement, in
tort (including negligence) or at common law, for any loss or damage suffered
by the Licensee, whether direct, indirect or special, or any other similar
damage that may arise or does arise from any breaches of this Agreement by UBC,
its Board of Governors, officers, employees, faculty, students or agents, is
limited to the amount of CAN. $2,000, which amount may (at UBC’s option) be
satisfied by UBC returning and transferring to the Licensee all of the UBC
Shares in the Licensee then owned by UBC (notwithstanding that UBC may have
previously sold or transferred some of the UBC Shares).

 

9.3                           The Licensee acknowledges
and agrees that UBC will not be liable for consequential or incidental damages
arising from any breach or breaches of this Agreement.

 

9.4                           Notwithstanding the
termination or expiration of this Agreement, the rights and obligations in
Article 9 will survive and continue to bind the Licensee and its successors and
assigns.

 

10.0                        PUBLICATION
& CONFIDENTIALITY

 

10.1                         Each party will keep
and use the other party’s Confidential Information in confidence and will not,
without the other party’s prior written consent, disclose the other party’s
Confidential Information to any person or entity, except to the party’s
directors, officers, employees, faculty, students and professional advisors who
require the Confidential Information to assist such party in performing its
obligations under this Agreement. The Licensee will maintain an appropriate
internal program limiting the distribution of UBC’s Confidential Information to
only those officers, employees and professional advisors who require such
Confidential Information in performing the Licensee’s obligations under this
Agreement and who have signed appropriate non-disclosure agreements. UBC shall
not be restricted from publishing its own Confidential Information related to
the Technology, UBC Improvements or Joint Improvements, provided that any such
publication or disclosure is made in accordance with Article 10.3 hereof, and
provided further that such publication or disclosure does not include any
Confidential Information of the Licensee, including without limitation any
information related to its business partners, without the Licensee’s express
prior written consent. All Confidential Information must be marked in writing
as Confidential at the time of disclosure or within thirty (30) days from
receipt by the receiving party.

 

13

 

10.2                         Any party required by
judicial or administrative process to disclose the other party’s Confidential
Information, will promptly notify the other party and allow it reasonable time
to oppose the process before disclosing the Confidential Information.

 

10.3                         With respect to the
Technology and/or any UBC Improvements or Joint Improvements only, UBC shall
not be restricted from presenting at symposia, national or regional
professional meetings, or from publishing in journals, or electronic media
including the internet, or other publications, accounts of its research,
including abstracts, provided however that:

 

(a)           UBC provides the
Licensee with copies of any proposed publication or presentation (each a “Manuscript”) at least sixty (60) days in
advance of the submission of such Manuscript to a journal, editor, or other
third party; and

 

(b)           the Licensee has not,
within thirty (30) days after receipt of said Manuscript, objected in writing to
such Manuscript in accordance with this Article 10.3.

 

The Licensee may object to a Manuscript on the grounds
that it contains material the Licensee considers objectionable (the “Objectionable Material”) and/or on the grounds that it
discloses patentable subject matter which needs protection. In the event that
the Licensee makes such objection on the former ground, the Licensee will
clearly specify what it considers Objectionable Material, and UBC will ensure
that its researchers refrain from disclosing the Manuscript for a period of up
to six (6) months after the date the Licensee received the Manuscript. During
such six (6) month period, the researchers, UBC and the Licensee shall work
together to revise the Manuscript to remove or alter the Objectionable Material
as follows: (a) if the Objectionable Material discloses Confidential
Information of the Licensee, such Objectionable Material will be removed from
any Manuscript prior to disclosure of the same unless otherwise agreed to in
writing by the Licensee; and (b) a Manuscript containing any other
Objectionable Material will be revised to remove or alter such other
Objectionable Material, on a case by case basis and in a manner acceptable to
the Licensee and UBC. The researchers and UBC shall co-operate in all
reasonable respects in making revisions to any Manuscripts considered by the
Licensee to contain Objectionable Material. Once a Manuscript has been revised
to remove or alter the Objectionable Material in a manner acceptable to the
Licensee, the Licensee shall withdraw its objection and the researchers and UBC
shall not be restricted from publishing or presenting the Manuscript, provided
that any objection based on patentable subject matter contained in such
Manuscript has also been addressed in accordance with the terms hereof. In the
event that the Licensee makes such an objection on the grounds that the
Manuscript contains patentable subject matter that constitutes Technology, a
UBC Improvement or a Joint Improvement, it shall be deemed to be a direction to
UBC to file a patent application pursuant to Article 7.1, and UBC shall ensure
that its researchers refrain from disclosing the Manuscript until UBC has filed
one or more patent applications with one or more patent offices directed to
such patentable subject matter, or until six (6) months have elapsed from date
of receipt of such written objection from the Licensee by UBC, whichever is
sooner, after which UBC and its researchers may proceed with said presentation
or publication. For greater certainty, a provisional patent application shall
be considered to be a patent application in the United States of America for
the purposes of this Agreement.

 

10.4                         The Licensee requires
of UBC, and to the extent permitted by law UBC agrees, that this Agreement, and
each part of it, is confidential and will not be disclosed to third parties, as
the Licensee claims that the disclosure would or could reveal commercial,
scientific or technical information and would significantly harm the Licensee’s
competitive position and/or interfere with the Licensee’s negotiations with
prospective sublicensees. Notwithstanding

 

14

 

anything contained in Article 10, the
Licensee acknowledges and agrees that UBC may identify the title of this
Agreement, the parties to this Agreement and the names of the inventors of the
Technology and any Improvements,
and that UBC may also disclose to the inventors of the Technology the amount of
all payments made to UBC by the Licensee under this Agreement, the manner or
method by which such payments were calculated and all Payment Reports delivered
to UBC by the Licensee in connection with such payments.

 

10.5                         Notwithstanding the
termination or expiration of this Agreement, the rights and obligations in
Article 10 survive and continue to bind the parties, their successors and
assigns.

 

11.0                        PRODUCTION
& MARKETING

 

11.1                         The Licensee will not
use the UBC Trade-marks or make reference to UBC or its name in any advertising
or publicity, without the prior written consent of UBC. Without limitation, the
Licensee will not issue a press release regarding this Agreement or the
Technology or any Improvements without first obtaining UBC’s written approval. If
the Licensee is required by law to act in breach of this Article, the Licensee
will provide UBC with sufficient prior notice to permit UBC to bring an
application or other proceeding to contest the requirement.

 

11.2                         The Licensee agrees
that it will use commercially reasonable efforts to

 

(a)           develop and commercialize
the Technology and any Improvements;

 

(b)           track and monitor on
an ongoing basis performance under the terms of each sublicense and
sub-sublicense entered into under this Agreement;

 

(c)           monitor patent
infringement in the Major Market Countries regarding any Patent and any
Improvements licensed under this Agreement; and

 

(d)           handle the Technology
and any Improvements with care and without danger to the Licensee, its
employees, agents, or the public.

 

11.3                         The Licensee will use
commercially reasonably efforts to, develop, promote, market, and sell products
incorporating the Technology. Without limiting the generality of the foregoing,
the Licensee shall:

 

(a)           use commercially
reasonable efforts to raise capital as set out in the business and marketing
plan referred to in Article 6.5 as amended from time to time and approved by
the directors of the Licensee;

 

(b)           maintain a bona fide
Board of Directors with a majority of directors who are not employees or
officers of the Licensee during the term of this Agreement;

 

(c)           undertake those
activities and take such steps as may be reasonably required to enable the
Licensee to fulfill the business and marketing plan as amended and approved
from time to time by the Board of Directors;

 

11.4                         If UBC is of the view
that the Licensee is in breach of Article 11.3, UBC may, not more than once in
any calendar year, give notice to the Licensee in accordance with Article 16.0
specifying the nature of the breach. Within 15 days of receiving UBC’s notice,
the Licensee shall provide notice to UBC of its election to:

 

(a)           proceed with
remedying the breach as described herein, or

 

15

 

(b)           dispute the breach (“Dispute”) and refer the Dispute to
mediation in accordance with Articles 11.5.

 

If the Licensee elects to proceed with
remedying the breach, Licensee shall, within 30 days of receiving the notice of
breach, provide UBC with a reasonably detailed plan (“Remedy Plan”) that describes: i)
the actions it will undertake to cure the breach and; ii) an estimate of the
date when the breach will be cured (“Cure Date”). UBC shall have
fifteen (15) days from the receipt of the Remedy Plan to review and approve
such plan. If UBC approves the Remedy Plan proposed by the Licensee and provided,
that the Licensee is employing commercially reasonable efforts to carry out the
plan, the Agreement shall remain in full force and effect until the Cure Date.
Should the Licensor be unable to remedy the breach by the Cure Date then the
Licensee will (counting from the Cure Date) have a further 30 days to remedy
the breach in accordance with Article 18.4(a). If the Licensee fails to remedy
the breach within such 30 day period then UBC may terminate this Agreement or
at UBC’s sole discretion it may enter into an agreement with the Licensee
whereby the Licensee will make annual payments of [***] to UBC to maintain this
Agreement, notwithstanding the Licensee’s breach.

 

If UBC, acting reasonably, does not agree to the
Remedy Plan, the matter shall be referred to mediation in accordance with
Article 11.5. If the Licensee fails to make an election to remedy or dispute
the breach in accordance with this Article, then the Licensee will be deemed to
have accepted the breach and UBC may terminate this Agreement.

 

11.5                         If the Licensee
elects to refer the Dispute to mediation, UBC and the Licensee will jointly
select and appoint a mediator (the “Mediator”)
within 15 days of the Licensee’s election. If the parties cannot agree on the
selection of a Mediator then a Mediator will be appointed by the British
Columbia International Commercial Arbitration Centre. On appointment of
Mediator the following rules and procedures will govern the conduct of the
parties and the Mediator before and during the mediation of a Dispute:

 

(a)           within 15 days of the
appointment of the Mediator, both Parties will provide to the Mediator a
written summary of its position and copies of all documents on which it intends
to rely.

 

(b)           after each of the
Licensee and UBC has provided its summary and documents under Article 11.5(a),
but not more than 60 days from the appointment of the Mediator, the parties
agree to meet in the presence of the Mediator with a view to resolving the
Dispute. The role of the Mediator will be to assist in negotiating a resolution
of a Dispute and the Mediator will not make a binding decision without the
parties’ prior written agreement;

 

(c)           the mediation of a
Dispute may be terminated by either party, by giving notice to the other party:

 

(i)            if
the other party fails to comply with its obligations under Article 11.5; or

 

(ii)           if the
parties cannot agree on a resolution of the Dispute within 90 days from the
appointment of the Mediator;

 

(d)           any confidential or
without prejudice information or documents disclosed by either party under this
Article 11.5 must be kept confidential and must not be used except for the
purposes of the Mediation; and

 

16

 

(e)           each party must bear
its own costs of complying with Article 11.5 and the parties must bear equally
the costs of any Mediator engaged.

 

11.6                         If the parties cannot
agree on the resolution of the Dispute within 90 days from the appointment of
the Mediator, or if the mediation of the Dispute has been terminated under
Article 11.5(c), then the Licensee will (counting from the end of the 90 day
period) have a further 30 days to remedy the breach in accordance with Article
18.4(a). If the Licensee fails to remedy the breach within such 30 day period
then UBC may terminate this Agreement or at UBC’s sole discretion it may enter
into an agreement with the Licensee whereby the Licensee will make annual
payments of [***] to UBC to maintain this Agreement, notwithstanding the
Licensee’s breach.

 

12.0                        ACCOUNTING
RECORDS & REPORTS

 

12.1                         The Licensee will
maintain at its principal place of business, or another place as may be most
convenient, separate accounts and records of all Revenues and all business done
in connection with the Technology or any Improvements. The accounts and records
will be in sufficient detail to enable proper returns to be made under this
Agreement and the Licensee will cause its sublicensees and sub-sublicensees to
keep similar accounts and records.

 

12.2                         The Licensee will
complete and deliver to UBC:

 

(a)           within 30 days of
each and every Royalty Due Date, a completed Payment Report in the form
attached as Schedule “B”, (or an
amended form as required by UBC from time to time) together with the royalty
payable under this Agreement. A separate Payment Report shall be prepared and
delivered for each sublicense and sub-sublicensee, including an accounting
statement setting out in detail how the amount of Revenue was determined and
identifying each sublicensee and sub-sublicensee and the location of the
business of each. The first Payment Report will be submitted within 30 days of
the first Royalty Due Date after the receipt of the first Revenue, and
thereafter a Payment Report shall be delivered every three months regardless of
whether any Revenue was received in the preceding period; and

 

(b)           on or before February
1st of each year during the Term, starting on February 1st,
2006, an Annual Report in the form attached as Schedule “C” (or an amended form as required by UBC
from time to time).

 

12.3                         The calculation of
royalties will be carried out in accordance with generally accepted Canadian
accounting principles, or the standards and principles adopted by the U.S.
Financial Accounting Standards Board applied on a consistent basis.

 

12.4                         The Licensee will
retain the accounts and records referred to in Article 12.1 for at least six
years from when they were made and will, upon ten (10) days written notice and
not more than once in any calendar year, permit a representative of a certified
independent accounting firm to inspect, at UBC’s expense, the accounts and
records during the Licensee’s normal business hours to
verify the accuracy of Revenue and the Licensee’s calculation of all amounts to
be paid by the Licensee to UBC under the terms of this Agreement. The Licensee will
provide to the representative all reasonable evidence necessary to verify the
accounts and records and will allow copies to be made of the accounts, records
and agreements. If an inspection of the Licensee’s records by UBC shows an
under-reporting or underpayment by the Licensee of any amount to UBC, by more
than five percent (5%) for any 12 month period, then

 

17

 

the Licensee will reimburse UBC for the cost
of the inspection as well as pay to UBC any amount found due (including any
interest) within 30 days of notice by UBC to the Licensee.

 

12.5                         Any information
provided to UBC under Article 12  will be
considered Confidential Information of the Licensee and will be subject to the
Confidentiality provisions of Article 10.

 

13.0                        INSURANCE

 

13.1                         During the Term, and
for a period of three years thereafter, the Licensee will procure and maintain
insurance (including public liability and commercial general liability
insurance), as would be acquired by a reasonable and prudent businessperson
carrying on a similar line of business.

 

13.2                         Notwithstanding
Article 13.1, one month before the earlier of:

 

(a)           the start of any
Product testing involving human subjects (“Human
Clinical Trials”); or

 

(b)           the First Use of the
Technology,

 

the Licensee will give notice to UBC of the terms and
amount of the product liability, clinical trials, public liability, and
commercial general liability insurance and such other types of insurance which
it has placed. This insurance will:

 

(c)           be placed with a
reputable and financially secure insurance carrier;

 

(d)           include UBC, its
Board of Governors, faculty, officers, employees, students and agents as
additional insureds;

 

(e)           provide coverage
regarding all activities under this agreement;

 

(f)            a severability of
interest and cross-liability clauses; and

 

(g)           provide that the
policy cannot be cancelled except on at least 30 days’ prior notice to UBC, and
will endeavour to provide UBC with notice of any material change in the
insurance coverage.

 

13.3                         UBC shall have the
right to require reasonable amendments to the terms or the amount of coverage
contained in the policy. Failing the parties agreeing on the appropriate terms
or the amount of coverage, then the matter shall be determined by arbitration. The
Licensee will provide to UBC for its approval certificates of insurance
evidencing the coverage seven days before the earlier of any Human Clinical
Trials or the First Use of the Technology. The Licensee will not:

 

(a)           start any Human
Clinical Trials,

 

(b)           allow the First Use
of the Technology, or

 

(c)           sell any Product or
allow any third party to use the Technology or any Improvements

 

at any time unless, a certificate of insurance has
been provided and approved by UBC, and the insurance outlined in Article 13.2
is in effect.

 

18

 

13.4                         The Licensee will
also require each sublicensee and sub-sublicensee to procure and maintain:

 

(a)           public liability and
commercial general liability insurance and such other types of insurance as
would be acquired by a reasonable and prudent businessperson carrying on a
similar line of business; and

 

(b)           in any event, one
month before the earlier of any Human Clinical Trials or the First Use of the
Technology by the sublicensee or sub-sublicensee, product liability, clinical
trials, public liability and commercial general liability insurance in
reasonable amounts, with a reputable and financially secure insurance carrier.

 

The Licensee will use commercially reasonable
efforts to ensure that all sublicensees’ and sub-sublicensees’ policies of
insurance contain a waiver of subrogation against UBC, its Board of Governors,
faculty, officers, employees, students and agents.

 

14.0                        ASSIGNMENT
& CHANGE OF CONTROL

 

14.1                         The Licensee will not
assign, transfer, mortgage, pledge, grant a security interest, permit a lien to
be created, charge or otherwise dispose of any or all of the rights granted to
it under this Agreement without the prior written consent of UBC, which consent
will not be unreasonably withheld.

 

14.2                         UBC will have the
right with the prior written consent of Licensee, which consent shall not be
unreasonably refused, to assign its rights, duties and obligations under this
Agreement to a company of which it is the sole shareholder, or a society which
it has incorporated or which has purposes which are consistent with the
objectives of UBC. If UBC makes such an assignment, the Licensee will release
and discharge UBC from all obligations or covenants, provided that the company
or society, as the case may be, signs a written agreement which provides that
the company or society assumes all obligations or covenants from UBC and that
the Licensee retains all rights granted to the Licensee under this Agreement.

 

15.0                        GOVERNING
LAW

 

15.1                         This Agreement is
governed by, and will be construed in accordance with, the laws of British
Columbia and the laws of Canada in force in that province, without regard to
its conflict of law rules. All parties agree that by executing this Agreement
they have attorned to the jurisdiction of the Supreme Court of British Columbia.
The parties agree that the British Columbia Supreme Court has exclusive
jurisdiction over this Agreement.

 

16.0                        NOTICES

 

16.1                         All reports and
notices or other documents that a party is required or may want to deliver to
any other party will be delivered:

 

(a)           in writing; and

 

(b)           either by personal
delivery or by registered or certified mail at the address for the receiving
party set out in Article 16.2 or as varied by any notice.

 

Any notice personally delivered is deemed to have been
received at the time of delivery. Any notice mailed in accordance with this
Article 16.1 is deemed to have been received at the end of the fifth day after
it is posted.

 

19

 

16.2                         The address for
delivery of notices and instructions for making payments to UBC are set out in
the attached Schedule “D”. The
address for delivery of notices to the Licensee is set out below:

 

	
   

  	
  OncoGenex Technologies, Inc.

  	
   

  
	
   

  	
  Attention: President and CEO

  	
   

  
	
   

  	
  # 400 – 1001 West Broadway

  	
   

  
	
   

  	
  Vancouver, British Columbia

  	
   

  
	
   

  	
  Canada, V6H 4B1

  
	
   

  	
  Telephone:

  	
  (604) 736-3678

  
	
   

  	
  Fax:

  	
  (604) 736-3687

  
	
   

  	
   

  
	
   

  	
  With a copy
  to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Doug Seppala

  	
   

  
	
   

  	
  McCullough,
  O’Conner Irwin, Solicitors

  	
   

  
	
   

  	
  1100-888
  Dunsmuir Street

  	
   

  
	
   

  	
  Vancouver,
  BC, Canada

  	
   

  
	
   

  	
  Fax:
  604-687-7099

  	
   

  
				

 

17.0                        TERM

 

17.1                         The term (the “Term”) of this Agreement starts on the
Effective Date and ends on:

 

(a)           the day that is
exactly 20  years later; or

 

(b)           the expiry of the
last patent licensed under this Agreement,

 

whichever is
last to occur, unless terminated earlier under Article 18.

 

18.0                        TERMINATION
OF AGREEMENT

 

18.1                         This Agreement
automatically and immediately terminates without notice to the Licensee if any
proceeding under the Bankruptcy and Insolvency
Act of Canada, or any other statute of similar purpose, is started
by or against the Licensee.

 

18.2                         UBC may, at its
option, immediately terminate this Agreement by giving notice to the Licensee
if one or more of the following occurs:

 

(a)           the Licensee becomes
insolvent, as evidenced, for example (without limitation) by the appointment of
a receiver, a receiver manager, or the Licensee ceasing or threatening to cease
carrying on business;

 

(b)           any execution or
other process of any court becomes enforceable against the Licensee, or if any
similar process is levied on the rights under this Agreement or on any money
due to UBC and is not released or satisfied by the Licensee within 30 days from
the process becoming enforceable or being levied;

 

(c)           any resolution is
passed or order made or other steps taken for the winding up, liquidation or
other termination of the existence of the Licensee;

 

20

 

18.3                         If any one or more of
the following events has occurred and the Licensee has not cured these events
within thirty (30) days of receiving written notice from UBC, UBC may, at its
option, terminate this Agreement:

 

(a)           if the Licensee is
more than thirty (30) days in arrears of royalties or other monies that are due
to UBC under the terms of this Agreement;

 

(b)           the Technology, UBC
Improvements or any Joint Improvements become subject to any security interest,
lien, charge or encumbrance in favour of any third party claiming through the
Licensee without the prior written consent of UBC;

 

(c)           if the Licensee
breaches any of Articles [***];

 

(d)           if any sublicensee or
sub-sublicensee of the Licensee is in breach of its sublicense or
sub-sublicense with the Licensee and the Licensee does not use commercially
reasonable efforts to cause the sublicensee or sub-sublicensee to cure the
breach within 30 days of receipt of notice from UBC; or

 

(e)           if the Licensee, or
any Affiliated Company is in material breach of any other agreement between the
Licensee or such Affiliated Company and UBC and the material breach has not
been cured within the time provided for the curing of the breach under the
terms of the other agreement.

 

18.4                         Other than as set out
in Articles 18.1, 18.2 and 18.3, either party may terminate this Agreement for
any breach which is not remedied after providing the following notice to the
party in breach:

 

(a)           30 days notice in the
case of any breach which can reasonably be remedied within 30 days of the
delivery of such notice; or

 

(b)           if the breach cannot
be remedied within 30 days and the breach is not remedied within such further
period as may be reasonably necessary, or within 90 days after receipt of
notice, whichever is sooner.

 

18.5                         If this Agreement is
terminated under Article 18.1 to 18.4, the Licensee will make all outstanding
royalty payments to UBC under Articles 5 and 6, and UBC may proceed to enforce
payment of all outstanding royalties or other monies owed to UBC and to
exercise any or all of the rights and remedies available under this Agreement or
otherwise available by law or in equity, successively or concurrently, at the
option of UBC. Within five days of the Effective Termination Date, the Licensee
will deliver to UBC all Technology, UBC Improvements and any Joint Improvements
in its possession or control and has no further right of any nature at all in
the Technology, UBC Improvements or any Joint Improvements. If the Licensee has
not delivered up the Technology, UBC Improvements and any Joint Improvements
within five days from the Effective Termination Date, UBC may immediately and
without notice enter the Licensee’s premises and take possession of the
Technology, UBC Improvements and any Joint Improvements. The Licensee will pay
all charges or expenses incurred by UBC in the enforcement of its rights or
remedies against the Licensee under this Article 18.5, including without
limitation UBC’s legal fees and disbursements on an indemnity basis.

 

18.6                         The Licensee and all
sublicensees will cease to use the Technology, UBC Improvements or any Joint
Improvements in any manner at all or to manufacture or sell the Products within
five days from the Effective Termination Date. The Licensee will then deliver
to UBC an accounting within 30 days from the Effective Termination Date. The
accounting will

 

21

 

specify, in or on such terms as UBC may in
its sole discretion require, the inventory or stock of Products manufactured
and remaining unsold on the Effective Termination Date. UBC will instruct that
the unsold Products be stored, destroyed or sold under its direction, provided
this Agreement was terminated under Article 18.2, 18.3 or 18.4. Without
limitation, if this Agreement is terminated under Article 18.1, no Products
will be sold without the prior written consent of UBC. The Licensee will
continue to make royalty payments to UBC in the same manner specified in
Articles 5 and 6 on all Products that are sold in accordance with this Article
18.6, notwithstanding anything contained in, or any exercise of rights by UBC,
under Article 18.5.

 

18.7                         Notwithstanding the
termination or expiration of this Agreement, Article 12 remains in full force
and effect until six years after:

 

(a)           all payments of
royalty required to be made by the Licensee to UBC under this Agreement have
been made by the Licensee to UBC; and

 

(b)           any other claim or
claims of any nature or kind at all of UBC against the Licensee has been
settled.

 

18.8                         [***]

 

(a)           [***]

 

(b)           [***]

 

(c)           [***]

 

[***]

 

19.0                        MISCELLANEOUS
COVENANTS OF LICENSEE

 

19.1                         The Licensee
represents and warrants to UBC that the Licensee is a corporation duly
organized, existing and in good standing under the laws of Canada and has the
power, authority and capacity to enter into this Agreement and to carry out the
transactions contemplated by this Agreement, all of which have been duly and
validly authorized by all requisite corporate proceedings.

 

19.2                         The Licensee will
comply with all laws, regulations and ordinances, whether Federal, State,
Provincial, County, Municipal or otherwise, with respect to the Technology and
any Improvements and this Agreement.

 

19.3                         The Licensee will pay
all reasonable legal expenses and costs incurred by UBC in negotiating and
drafting this Agreement [***]. In addition the Licensee will reimburse UBC for
any reasonable legal costs incurred by UBC in connection with any consents and
approvals required from UBC, including without limitation expenses and costs
regarding UBC’s review of any sublicenses or sub-sublicenses to be granted by
the Licensee.

 

19.4                         The Licensee will pay
all taxes and any related interest or penalty designated in any manner at all
and imposed as a result of the existence or operation of this Agreement,
including without limitation tax which the Licensee is required to withhold or deduct
from payments to UBC. The Licensee will provide to UBC evidence as may be
required by Canadian authorities to establish that the tax has been paid. The
royalties specified in this Agreement are exclusive of taxes. If UBC is
required to collect a tax to be paid by the Licensee or any of its sublicensees
or sub-sublicensees, the Licensee will pay the tax to UBC on demand.

 

22

 

19.5                         The obligation of the
Licensee to make all payments under this Agreement is absolute and
unconditional and is not, except as expressly set out in this Agreement,
affected by any circumstance, including without limitation any set-off,
compensation, counterclaim, recoupment, defence or other right which the
Licensee may have against UBC, or anyone else for any reason at all.

 

19.6                         The Licensee will pay
interest on all amounts due and owing to UBC under this Agreement but not paid
by the Licensee on the due date, at the rate of [***] per annum, calculated
annually not in advance. The interest accrues on the balance of unpaid amounts
from time to time outstanding, from the date on which portions of the amounts
become due and owing until payment in full.

 

20.0                        MANAGEMENT
OF CONFLICTS OF INTEREST

 

20.1                         The Licensee
acknowledges that it is aware of UBC’s Conflict of Interest Policy #97, Patent
and Licensing Policy #88 and Research Policy #87 (http://www.policy.ubc.ca/),
and that UBC may amend these policies or introduce new policies from time to
time.

 

20.2                         Subject to Article
20.3 the Licensee and UBC agree, that:

 

(a)           the facilities and
research programs of the Licensee will be conducted independently of all UBC
facilities, faculty, students or staff, and in particular, independently of and
from the Investigators and the laboratory facilities made available to the
Investigators by reason of the Investigators’ employment at UBC;

 

(b)           no students,
post-doctoral fellows or other UBC staff will participate or be involved in
research or projects for or in collaboration with the Licensee that utilize UBC’s
facilities or resources; and

 

(c)           the Licensee will use
commercially reasonable efforts to forward to UBC any disclosures of
inventions, manuscripts and/or abstracts made by the Investigators to the
Licensee.

 

20.3                         The Licensee and UBC
may, from time to time, enter into written agreements to permit activities
which would otherwise be prohibited by Article 20.2.

 

21.0                        GENERAL

 

21.1                         Upon 48 hours advance
notice, and at UBC’s sole risk and expenses, the Licensee shall permit any duly
authorized representative of the UBC that has signed an appropriate
non-disclosure agreement with the Licensee to enter upon and into any premises
of the Licensee during normal business hours for the purpose of inspecting the
Products and the manner of their manufacture and generally of ascertaining
whether or not the provisions of this Agreement have been, are being, or will
be complied with by the Licensee.

 

21.2                         Nothing contained in
this Agreement is to be deemed or construed to create between the parties a
partnership or joint venture. No party has the authority to act on behalf of
any other party, or to commit any other party in any manner at all or cause any
other party’s name to be used in any way not specifically authorized by this
Agreement.

 

21.3                         Subject to the limitations
in this Agreement, this Agreement operates for the benefit of and is binding on
the parties and their respective successors and permitted assigns.

 

23

 

21.4                         No condoning,
excusing or overlooking by any party of any default, breach or non-observance
by any other party at any time or times regarding any terms of this Agreement
operates as a waiver of that party’s rights under this Agreement. A waiver of
any term , or right under, this Agreement will be in writing signed by the
party entitled to the benefit of that term or right, and is effective only to
the extent set out in the written waiver.

 

21.5                         No exercise of a
specific right or remedy by any party precludes it from or prejudices it in
exercising another right or pursuing another remedy or maintaining an action to
which it may otherwise be entitled either at law or in equity.

 

21.6                         All terms which
require performance by the parties after the expiry or termination of this
Agreement, will remain in force despite this Agreement’s expiry or termination
for any reason.

 

21.7                         Part or all of any
Article that is indefinite, invalid, illegal or otherwise voidable or
unenforceable may be severed and the balance of this Agreement will continue in
full force and effect.

 

21.8                         The Licensee
acknowledges that the law firm of Richards Buell Sutton has acted solely for
UBC in connection with this Agreement and that all other parties have been
advised to seek independent legal advice.

 

21.9                         This Agreement sets
out the entire understanding between the parties and no changes are binding
unless signed in writing by the parties to this Agreement.

 

21.10                       Time is of the
essence of this Agreement.

 

24

 

21.11                       Unless the contrary
intention appears, the singular includes the plural and vice versa and words
importing a gender include other genders.

 

SIGNED BY THE PARTIES AS
AN AGREEMENT on the 25 day of April, 2005
but effective as of the Effective Date.

 

	
  SIGNED FOR AND ON BEHALF of

  THE UNIVERSITY OF BRITISH COLUMBIA

  by its authorized signatories:

  	
   

  	
   

  
	
  /s/ J.P. Heale

  	
   

  	
  J.P. Heale, PhD, MBA

  Associate Director

  University-Industry Liaison Office

  
	
  Authorized Signatory

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Authorized Signatory

  	
   

  	
   

  

 

 

	
  SIGNED
  FOR AND ON BEHALF of ONCOGENEX 

  TECHNOLOGIES INC.

  by its authorized signatories:

  
	
   

  	
   

  
	
  /s/
  Scott Cormack

  	
   

  
	
  Authorized
  Signatory

  	
   

  
	
   

  	
   

  
	
  Scott
  Cormack, President & CEO

  	
   

  
	
  Please
  print Name and Title of Signatory

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorized
  Signatory

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Please
  print Name and Title of Signatory

  	
   

  
			

 

25

 

SCHEDULE “A”

 

DESCRIPTION OF
“TECHNOLOGY”

 

	
  UBC File
  #

  	
   

  	
  Inventor(s)

  	
   

  	
  Description

  	
   

  	
  Patent #

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

 

SCHEDULE “B”

 

Payment Report for the Period dd/mm/yy to
dd/mm/yy

 

Instructions
for Completing this Report

 

Please fill
out each section in full, identifying in the Royalty Summary Table the unit
sales and geographical sales areas. If the licence with UBC involves several
product lines, please prepare a separate Summary Table for each product line. For
licences involving sublicensing or sub-sublicensing revenue, please prepare an
additional report for each sublicense or sub-sublicense.

 

PLEASE
NOTE:  An interest rate of [***] per annum, calculated annually not in advance
will be assessed against all payments in arrears.

 

	
  Licensee

  	
   

  	
  Agreement #

  	
   

  	
  UBC ID #

  	
   

  	
   

  
	
  (or
  sublicensee)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UBC
  Technology

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Report Type
  (check one and complete as appropriate)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Single
  Product Line

  	
  o

  	
  Product Line
  Trade Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Multiple
  Products

  	
  o

  	
  Page

  	
   

  	
   

  	
  Of

  	
   

  	
    Product
  Line Trade Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sublicense
  Report

  	
  o

  	
  Page

  	
   

  	
   

  	
  Of

  	
   

  	
   

  
															

 

Payments
this Quarter (please complete separate tables for multiple product lines)
Royalties on Product Sales

	
   

  	
   

  	
  Units

  	
   

  	
  Unit Price 

  (domestic

  	
   

  	
  Gross

  	
   

  	
  Less

  	
   

  	
  Net

  	
   

  	
  Royalty

  	
   

  	
  Conversion 

  Rate (to

  	
   

  	
  Period Royalty Amount

  (Canadian $ )

  	
   

  
	
  Country

  	
   

  	
  Sold

  	
   

  	
  currency)

  	
   

  	
  sales

  	
   

  	
  Allowances*

  	
   

  	
  Sales

  	
   

  	
  Rate

  	
   

  	
  Canadian $ )

  	
   

  	
  This yr

  	
   

  	
  Last yr

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Canada

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  US

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Europe

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (specify
  countries)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total Product Royalties

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional
  Payments (complete all that apply)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minimum
  Royalty Fee

  	
   

  	
  o

  	
   

  	
   

  	
   

  	
   

  	
  Amount

  	
   

  	
   

  	
   

  	
   

  
	
  Milestone
  Payment

  	
   

  	
  o

  	
   

  	
   

  	
   

  	
   

  	
  Amount

  	
   

  	
   

  	
   

  	
   

  
	
  Annual
  Licence Maintenance Fee

  	
   

  	
  o

  	
   

  	
   

  	
   

  	
   

  	
  Amount

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  This
  Year

  	
   

  	
  Last
  Year

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total
  Payments for Period

  	
   

  	
   

  
																								

 

*Please
indicate the reasons for returns or other allowances, if significant. Please
note any unusual occurrences that affected royalty amounts during the period.

 

	
  Prepared
  by 

  	
   

  	
   

  	
  Date

  	
  Dd/mm/yy

  	
   

  	
  Phone

  	
   

  

 

	
  I

  	
   

  	
  (print
  name),

  	
   

  	
  (title)
  hereby certify the foregoing information as true and correct.

  

 

	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Date Signed

  

 

 

SCHEDULE “C”

 

UBC
License Agreement Annual Report

 

The
information to be completed below shall constitute the annual report required
pursuant to the UBC License Agreement. Any information or documents provided by
the Licensee in this report shall not be interpreted as affecting the express
rights and obligations of the Licensee contained in the License Agreement. This
report is in addition to the Payment Report to accompany each royalty payment.

 

	
  Date of
  Report:

  	
   

  	
   

  	
  Person
  Preparing This Report:

  	
   

  	
   

  
	
  Name of
  Licensee:

  	
   

  	
   

  	
  UBC File
  Number:

  	
   

  	
   

  
	
  Jurisdiction
  of Corporation:

  	
   

  	
   

  	
  Head Office 

  Address:

  	
   

  	
   

  
	
  Contact
  Person for Company

  	
   

  
	
  Licensed
  Technology:

  	
   

  
	
  Telephone
  Number:

  	
   

  	
   

  	
  E-mail
  Address:

  	
   

  
																	

 

1.     Please provide a brief report on the status of development of the
UBC Technology, progress on creating a commercial Product or subsequent
marketing of the Product as appropriate.

 

	
   

   

  

 

2.     Has the Licensee filed any patent applications for modifications or
improvements relating to the original UBC Technology?  Please provide details, and attach copies of
all relevant documents.

 

	
   

   

  

 

3.     Has the Licensee become aware of any potential 3rd party
infringing on the UBC patents or related intellectual property?  If so please provide details and outline what
the Licensee is doing about this.

 

	
   

   

  

 

4.     Has the Licensee met any milestone or performance objectives in the
past year as set forth in the license agreement?  Please outline the past year’s
accomplishments.

 

	
   

   

  

 

5.     Does the Licensee expect to meet any milestone or performance
objective in the coming year as set forth in the license agreement?  If so please provide details.

 

	
   

   

  

 

6.     If applicable, has the Licensee granted sublicenses or
sub-sublicenses to 3rd parties and if so have copies of the
sublicense or sub-sublicenses agreement been provided to the Technology Manager
at UBC?  If not, please enclose a copy of
each sublicense or sub-sublicense agreement.

 

	
   

   

  

 

 

7.     Has the licensee made any sales in the last 12 months?  Yes o No  o

If so please
submit a completed Royalty Payment Report.

 

 

a)  Date of sales of Products utilizing the
Technology;

 

b)  Date of any clinical trials.

 

	
   

   

  

 

8.     Does your company have public liability insurance?  If so, please attach a copy of the insurance
policy naming UBC as insured as required by the License Agreement.

 

	
   

   

  

 

9.     Please provide the Licensee’s estimate or projection of gross sales
revenue for products based on the UBC Technology for the next 12 months by
licensee and any sub-licensee or sub-sublicensee.

 

	
   

   

  

 

10.   Is there any other information relating to this License that you
think we should be aware of? Please summarize them below or contact us
directly.

 

	
   

   

  

 

	
  Prepared
  by 

  	
   

  	
   

  	
  Date

  	
  Dd/mm/yy

  	
   

  	
  Phone

  	
   

  

 

I                                 
(print name), of                                         (title)
hereby certify the foregoing information as true and correct.

 

	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Date Signed

  

 

Once completed, please submit this report to:

 

Managing
Director c/o Licensing Compliance Officer

University
– Industry Liaison Office

#103
– 6190 Agronomy Road,

Vancouver, BC

V6T 1Z3

 

2

 

SCHEDULE “D”

 

ADDRESS FOR
NOTICES & PAYMENT INSTRUCTIONS

 

1.                             The
address for delivery of notices to UBC is:

 

	
  The Director

  	
   

  
	
  University – Industry Liaison Office

  	
   

  
	
  University of British Columbia

  	
   

  
	
  #103 – 6190 Agronomy Road

  	
   

  
	
  Vancouver, British Columbia

  	
   

  
	
  V6T 1Z3

  
	
  Telephone:

  	
  (604) 822-8580

  
	
  Fax:

  	
  (604) 822-8589

  
			

 

2.                             Payment
of all amounts due to UBC under the terms of this license may be made as
follows:

 

a)             by
cheque made payable to “The University of British Columbia” delivered to UBC at
the above address; or

 

b)            by
wire transfer in accordance with the instructions set out below:

 

Note: Please
ensure ALL of the information is provided
for efficient receipt of wire payments:

 

	
  For CAD $Deposits via wire

  	
   

  	
   

  	
   

  
	
  (General):

  	
   

  	
  For USD Deposits via wire:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
  [***]

  	
   

  

 

3

 

AMENDING
AGREEMENT

 

This Agreement
is made as of August 30, 2006 (the “Effective
Date”).

 

Between:

 

THE
UNIVERSITY OF BRITISH COLUMBIA, a
corporation continued under the University Act
of British Columbia and having its Industry Liaison offices at #103 – 6190 Agronomy
Road, Vancouver, British Columbia, V6T 1Z3

 

(the “University”)

 

- and -

 

ONCOGENEX
TECHNOLOGIES INC. a corporation incorporated
under the laws of Canada, and having offices at Suite 400, 1001 West Broadway,
Vancouver, British Columbia, V6H 4B1

 

(the “Licensee”)

 

WHEREAS:

 

A.            The University and the Licensee entered into a license agreement
with an Effective Date of April 5, 2005 with respect to Hsp27 (“Hsp27 License Agreement”) pursuant to which
the University granted the Licensee an exclusive worldwide license to the
Technology, as defined in the Hsp27 License Agreement;

 

B.            The University and the Licensee now wish to amend the Hsp27 License
Agreement as set out below.

 

Now therefore,
in consideration of the premises and the mutual covenants contained in this
Amending Agreement, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto covenant and
agree with each other as follows:

 

1.                             Article 6.6 is hereby amended by adding the following to the end of
it:

 

“The
University consents to the termination of any shareholders agreements to which
the University and the Licensee may be party, upon the Licensee becoming a
reporting issuer under the Securities Act of British Columbia.”

 

2.                             Article 7.1 is hereby deleted and the following substituted
therefore:

 

“7.1         The
Licensee shall have the right to identify any process, use or products arising
out of the Technology and any University Improvements that may be patentable
and may seek patent protection with respect thereto, in which case the Licensee
shall take all reasonable steps to apply for a patent in the name of the
University provided that the Licensee pays all costs of applying for,

 

 

registering
and maintaining the patent in those jurisdictions in which the Licensee might
designate that a patent is required. The choice of patent counsel will be
mutually agreed upon between the University and the Licensee. The University
shall remain the client of such patent counsel, however, the Licensee will
provide direct instructions to the patent counsel on all patent matters
relating to the Technology including filing, prosecution, management,
maintenance, including renewals and term extensions thereof, and the scope and
content of patent applications and to request countries for foreign filings.
The Licensee will pay patent counsel for all costs incurred with respect to any
and all patents relating to the Technology. The Licensee will supply or
instruct the patent counsel to supply the University with copies of all
documents and correspondence received and filed in connection with the
prosecution of patents. The Licensee will keep the University advised as to all
material developments with respect to such applications with sufficient time
for the University to review and respond, and generally not less than 30 days
prior to an applicable patent deadline, unless circumstances reasonably require
the Licensee to act sooner to protect the patents, in which case the Licensee
may act sooner.   The University shall,
as required and at the Licensee’s cost for the University’s reasonable
out-of-pocket expenses, reasonably cooperate with the Licensee, its lawyers and
agents in the filing, prosecution, management and maintenance of the patents.”.

 

3.                             The following is added as Article 10.6:

 

“10.6       Notwithstanding
anything contained in this Article, the parties acknowledge and agree that the
Licensee may disclose Confidential Information to the extent that may be
required by applicable securities laws in connection with the public offering
of the Licensee’s securities and thereafter to comply with its disclosure
obligations as a public company. If required to make such disclosure by any
applicable securities laws, the Licensee shall inform the University in writing
by giving notice and will consider any reasonable comments the University may
have. Such notice shall be generally not less than 48 hours prior to public
disclosure unless a delay of 48 hours would violate applicable securities laws,
in which case notice shall be as soon as practicable.”

 

4.                             Article 11.1 is hereby deleted and the following substituted
therefore:

 

“11.1       The
Licensee will not use the UBC Trade-marks or make reference to UBC or its name
in any advertising or publicity, without the prior written consent of UBC. If
the Licensee is required by law to act in breach of this Article, the Licensee
will provide UBC with sufficient prior notice to permit UBC to bring an
application or other proceeding to contest the requirement.”.

 

5.                             The contact information for delivery of notices in Article 16.2 is
amended as follows:

 

2

 

With a copy
to:

 

Doug Seppala

DuMoulin Black
LLP

Barristers & Solicitors

10th Floor - 595 Howe Street

Vancouver, British Columbia

V6C 2T5

Fax:                         (604) 687-3635

 

6.                             Except as modified herein, the University and the Licensee confirm
that the Hsp27 License Agreement remains unmodified and in full force and
effect.

 

7.                             The Hsp27 License Agreement as modified by this Agreement
constitutes the entire agreement between the parties relating to the subject
matter hereof.

 

This Agreement
may be executed by the parties in separate counterparts and by facsimile, each
of which such counterparts when so executed and delivered shall be deemed to
constitute one and the same instrument.

 

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

 

SIGNED FOR AND
ON BEHALF OF

THE UNIVERSITY OF BRITISH
COLUMBIA

by its duly
authorized officers:

 

	
  /s/ J.P.
  Heale 

  	
   

  	
  J.P. Heale,
  PhD, MBA 

  Associate Director 

  University-Industry Liaison Office

  
	
  Authorized
  Signatory

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Authorized
  Signatory

  	
   

  	
   

  

 

SIGNED FOR AND
ON BEHALF OF

ONCOGENEX TECHNOLOGIES
INC.

By its duly
authorized officer:

 

	
  /s/ Scott
  Cormack

  	
   

  
	
  Authorized
  Signatory

  	
   

  

 

3Exhibit 10.15

 

LICENSE AGREEMENT

 

BETWEEN:

 

THE UNIVERSITY OF BRITISH COLUMBIA, a corporation continued under the University Act of British Columbia and having its
administrative offices at 2075 Wesbrook Mall, in the City of Vancouver, in the
Province of British Columbia, V6T 1W5

 

(the “University”)

 

AND:

 

ONCOGENEX TECHNOLOGIES INC., a corporation incorporated under
the laws of Canada, and having offices at Suite 400, 609 -14th Street N.W., in
the City of Calgary, in the Province of Alberta, T2N 2A1

 

(the “Licensee”)

 

WHEREAS:

 

A.                            The University has been engaged in
research during the course of which it has invented, developed and/or acquired
certain technology relating to antisense oligonucleotide therapy for the
treatment of prostate cancer and other cancers, which research was undertaken
by [***] in the Prostate Centre at the University;

 

B.                            Dr. Martin Gleave has agreed to
waive any entitlement to receive any consideration pursuant to the University’s
Patent and Licensing Policy in connection with the Technology and any
University Improvements;

 

C.                            The University is desirous of
entering into this agreement (the “Agreement”)
with the objective of furthering society’s use of its advanced technology, and
to generate further research in a manner consistent with its status as a
non-profit, tax exempt educational institution; and

 

D.                            The Licensee is desirous of the
University granting an exclusive worldwide license to the Licensee to use or
cause to be used such technology to manufacture, distribute, market, sell
and/or license or sublicense products derived or developed from such technology
and to sell the same to the general public during the term of this Agreement.

 

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the
premises and of the mutual covenants herein set forth, the parties hereto have
covenanted and agreed as follows:

 

1.0                          DEFINITIONS:

 

1.1                           In this
Agreement, unless a contrary intention appears, the following words and phrases
shall mean:

 

(a)           “Accounting”:  an accounting statement setting out in detail
how the amount of Revenue was determined;

 

*Certain information in this exhibit has been omitted
as confidential, as indicated by [***]. This information has been filed
separately with the Commission.

 

BPF-5 (UILO No. 99-041)

 

 

(b)           “Affiliated
Company” or “Affiliated Companies”:  two or more corporations where the
relationship between them is one in which one of them is a subsidiary of the
other, or both are subsidiaries of the same corporation, or fifty percent (50%)
or more of the voting shares of each of them is owned or controlled by the same
person, corporation or other legal entity;

 

(c)           “Confidential
Information”: any part of the Information which is designated by
either party (the “Disclosing Party”) as
confidential, whether orally or in writing but excluding any part of the
Information:

 

(i)            possessed
by the receiving party prior to receipt from the Disclosing Party , other than
through prior disclosure by the Disclosing Party, as evidenced by the receiving
party’s business records;

 

(ii)           published
or available to the general public otherwise than through a breach of this
Agreement;

 

(iii)          obtained
by the receiving party from a third party with a valid right to disclose it,
provided that said third party is not under a confidentiality obligation to the
Disclosing Party; or

 

(iv)          independently
developed by employees, agents or consultants of the receiving party who had no
knowledge of or access to the Disclosing Party’s Information as evidenced by
the receiving party’s business records;

 

(d)           “Date
of Commencement” or “Commencement Date”:  this Agreement will be deemed to have come
into force on the Date of Commencement which shall be the 1st day of November,
2001, and shall be read and construed accordingly;

 

(e)           “Effective
Date of Termination”:  the
date on which this Agreement is terminated pursuant to Article 18;

 

(f)            “Improvements”:  collectively Licensee Improvements and
University Improvements;

 

(g)           “Information”:  any and all Technology and any and all
University Improvements, the terms and conditions of this Agreement and any and
all oral, written, electronic or other communications and other information
disclosed or provided by the parties including any and all analyses or
conclusions drawn or derived therefrom regarding this Agreement and information
developed or disclosed hereunder, or any party’s raw materials, processes,
formulations, analytical procedures, methodologies, products, samples and
specimens or functions;

 

(h)           “Licensee
Improvements”: 
improvements, variations, updates, modifications, and enhancements made
solely by the Licensee or any sublicensee of the Licensee relating to the
Technology at any time after the Commencement Date;

 

(i)            “Product(s)”:  goods manufactured in connection with the use
of all or some of the Technology and/or any Improvements;

 

(j)            “Revenue”:  all revenues, receipts, monies, and the fair
market value of all other consideration directly or indirectly collected or
received whether by way of cash or credit or any barter, benefit, advantage, or
concession received by the Licensee, sublicensees or sub-sublicensees from the
marketing, manufacturing, licensing, sale

 

2

 

or
distribution of the Technology and any University Improvements or Licensee
Improvements, and/or any Products in any or all parts of the world where the
Licensee is permitted by law and this Agreement to market, manufacture,
license, sell or distribute the Technology and any University Improvements or
Licensee Improvements, and/or any Products, less the following deductions to
the extent included in the amounts invoiced and thereafter actually allowed and
taken:

 

(i)            [***]

 

(ii)           [***]

 

(iii)          taxes,
duties and customs on all sales of Products,

 

(iv)          [***]

 

(v)           [***]

 

Where any Revenue
is derived from a country other than Canada it shall be converted to the
equivalent in Canadian dollars on the date the Licensee is deemed to have
received such Revenue pursuant to the terms hereof at the rate of exchange set
by the Bank of Montreal for buying such currency. The amount of Canadian
dollars pursuant to such conversion shall be included in the Revenue;

 

(k)           “Royalty
Due Dates”:  the last
working day of June and December of each and every year during which this
Agreement remains in full force and effect;

 

(l)            “Technology”:  any and all knowledge, know-how and/or
technique or techniques invented, developed and/or acquired, prior to the Date
of Commencement by the University or the Licensee relating to, and including
the technology described in Schedule “A” hereto,
as amended from time to time, including, without limitation, all research,
data, specifications, instructions, manuals, papers or other materials of any
nature whatsoever, whether written or otherwise, relating to same;

 

(m)          “UBC
Trade-marks”:  any mark,
trade-mark, service mark, logo, insignia, seal, design, symbol or device used
by the University in any manner whatsoever; 
and

 

(n)           “University
Improvements”: 
improvements, variations, updates, modifications, and enhancements made
solely by the University relating to the Technology after the Commencement
Date;

 

2.0                          PROPERTY RIGHTS IN AND TO THE TECHNOLOGY:

 

2.1                           The parties
hereto hereby acknowledge and agree that the University owns any and all right,
title and interest in and to the Technology, as well as any and all University
Improvements. The parties also hereby acknowledge and agree that the Licensee
[***] in and to the Licensee Improvements.

 

2.2                           The
Licensee shall, at the request of the University, enter into such further agreements
and execute any and all documents as may be required to ensure that ownership
of the Technology and any University Improvements remains with the University.

 

2.3                           On the last
working day of June and December of each and every year during which this Agreement
remains in full force and effect, the Licensee shall deliver in writing to the
University 

 

3

 

the
details of any and all Improvements which the Licensee and any sublicensees of
the Licensee have developed and/or acquired during the previous six month
period.

 

3.0                          GRANT OF LICENSE:

 

3.1                           In
consideration of the equity in the Licensee, the royalty payments reserved
herein, and the covenants on the part of the Licensee contained herein, the
University hereby:

 

(a)           grants to the Licensee an
exclusive worldwide license to use and sublicense the Technology, any
University Improvements and Confidential Information on the terms and
conditions hereinafter set forth during the term of this Agreement;  and

 

(b)           grants to the Licensee an
exclusive worldwide license to use and sublicense to manufacture, distribute,
have distributed, sell and have sold, Products on the terms and conditions
hereinafter set forth during the term of this Agreement.

 

3.2                           The license
granted herein is personal to the Licensee and is not granted to any Affiliated
Company or Affiliated Companies.

 

3.3                           The
Licensee shall not cross-license the Technology or any University Improvements
without the prior written consent of the University, such consent not to be
unreasonably withheld.

 

3.4                           Notwithstanding
Article 3.1 herein, the parties acknowledge and agree that the University may
use the Technology and any Improvements without charge in any manner whatsoever
for research, scholarly publication, educational or other non-commercial uses.

 

3.5                           Upon
execution of this Agreement, the University may register a financing statement
with respect to this Agreement under the provisions of the Personal
Property Security Act of British Columbia and/or under the
provisions of similar legislation in those jurisdictions in which the Licensee
carries on business and/or has its chief place of business. All costs
associated with the registrations contemplated by this Article 3.5 shall be
paid for by the Licensee.

 

3.6                           The
Licensee shall give written notice to the University if it is carrying on
business and/or locates its chief place of business in a jurisdiction outside
British Columbia prior to beginning business in that other jurisdiction.

 

3.7                           If the
University has registered one or more financing statements as set forth in
Article 3.5, the Licensee shall give written notice to the University of any
and all changes of jurisdiction within or outside of Canada in which it is
carrying on business and/or any and all changes in jurisdiction of its chief
place of business within or outside of Canada and shall file the appropriate
documents in the various provincial Personal Property Registries or similar
registries within or outside of Canada to document such changes in jurisdiction
and furnish the University with a copy of the verification with respect to each
such filing within 15 days after receipt of same. All costs associated with the
registrations contemplated by this Article 3.7 shall be paid for by the
Licensee.

 

4.0                          SUBLICENSING:

 

4.1                           The
Licensee shall have the right to grant sublicenses to Affiliated Companies and
other third parties with respect to the Technology and any University
Improvements with the prior written consent of the University, which consent
shall not be unreasonably refused. The Licensee shall not be obligated to
obtain the University’s consent to the granting of a sublicense if the proposed
sublicensee has a market capitalization in excess of CAN. $500,000,000 at the
time of the

 

4

 

granting of the sublicense, provided always that such
sublicense shall be in full compliance with the terms of this Agreement. The
Licensee will furnish the University with a copy of each sublicense granted
within 30 days after execution. Such sublicenses will be considered to be
Confidential Information of the Licensee, and will be subject to the
Confidentiality provisions of Article10.

 

4.2                           Any
sublicense granted by the Licensee shall be personal to the sublicensee and shall
not be assignable without the prior written consent of the University, such
consent not to be unreasonably withheld. Such sublicenses shall contain
covenants by the sublicensee to observe and perform similar terms and
conditions to those contained in this Agreement and in particular the Licensee
shall cause each sublicensee to indemnify the University on the same terms and
conditions as are contained in Article 9.1 of this Agreement.

 

4.3                           Prior to
the beginning of a sublicense agreement, the Licensee shall give written notice
to the University as to which jurisdictions the applicable sublicensee is
carrying on business in. Within five days of being aware of the same, the
Licensee shall provide written notice to the University if any sublicensee is
carrying on business in a jurisdiction outside of British Columbia.

 

4.4                           If the
University has registered one or more financing statements as set forth in
Article 3.5, the Licensee shall, if requested by the University, register a
financing change statement under the provisions of the Personal
Property Security Act of British Columbia and/or under the
provisions of similar legislation in those jurisdictions in which each
sublicensee carries on business or has its chief place of business in order to
add each sublicensee as an additional debtor to the registration referred to in
Article 3.5 forthwith upon execution of each sublicense, and shall furnish the
University with a copy of the verification statement with respect to each such
filing within 15 days after receipt of same. All costs associated with the
filings contemplated by this Article 4.4 shall be paid for by the Licensee. The
Licensee shall give written notice to the University of any and all changes of
jurisdiction within or outside of Canada in which each sublicensee is carrying
on business and/or any and all changes in jurisdiction of each sublicensee’s
chief place of business and shall file the appropriate documents in the various
provincial Personal Property Registries or similar registries within or outside
of Canada to document such changes in jurisdiction.

 

5.0                          ROYALTIES:

 

5.1                           In
consideration of the license granted hereunder, the Licensee shall pay to the
University a royalty comprised of [***] of the Revenue.

 

5.2                           The royalty
shall become due and payable within 30 days of each respective Royalty Due Date
and shall be calculated with respect to the Revenue in the three month period
immediately preceding the applicable Royalty Due Date.

 

5.3                           All
payments of royalties made by the Licensee to the University hereunder shall be
made in Canadian dollars without any reduction or deduction of any nature or
kind whatsoever, except as may be prescribed by Canadian law.

 

5.4                           Products
shall be deemed to have been sold by the Licensee, a sublicensee or a sub-sublicensee
and included in the Revenue when invoiced, or if not invoiced, then when
delivered, shipped, or paid for, whichever is the first.

 

5.5                           Any
transaction, disposition, or other dealing involving the Technology or any part
thereof between the Licensee and another person that is not made at fair market
value shall be deemed to have been made at fair market value, and the fair
market value of that transaction, disposition, or other dealing shall be added
to and deemed part of the Revenue and shall be included in the calculation of
royalties under this Agreement.

 

5

 

6.0                          EQUITY AND ANNUAL LICENSE MAINTENANCE FEE

 

6.1                           As part of
the consideration for the rights granted by the University to the Licensee
hereunder, the Licensee agrees to deliver to the University on execution of
this Agreement, and in lieu of an initial license fee, 150,000 Class “A” Common
Shares in the capital of the Licensee (the “UBC
Shares”).

 

6.2                           The
Licensee will use commercially reasonable efforts to cause all of the UBC
Shares to be issued free from any pooling, escrow or other trading restrictions
placed on such shares by the Licensee or any regulatory authority having
jurisdiction over the Licensee. The Licensee acknowledges and agrees that the
University shall have the right to transfer any or all of the UBC Shares to a
company or society of which the University is the sole shareholder in the case
of a company or of which the University controls the membership, in the case of
a society and the Licensee shall take all steps or do such acts as may be
reasonably required to allow such transfer.

 

6.3                           The
Licensee acknowledges and agrees that it will comply with all applicable laws
and legislation with respect to the issuance of the UBC Shares.

 

6.4                           The UBC
Shares shall be deemed to be fully paid for by the University as of the date of
issuance and shall be the absolute property of the University. Neither all nor
any portion of the UBC Shares shall be refundable to the Licensee under any
circumstances.

 

6.5                           Until the
Licensee becomes a reporting issuer for equity securities under the Securities Act of British Columbia, or under the applicable
securities legislation in any other jurisdiction which has jurisdiction over
the issuance of securities by the Licensee, the Licensee shall provide to the
University:

 

(a)           Annual
financial statements:        Within
120 days after the end of each fiscal year of the Licensee, audited financial
statements of the Licensee prepared by a reputable accounting firm;

 

(b)           Budget:        At least 45 days
prior to the beginning of each fiscal year of the Licensee, an operating plan
with monthly and quarterly financial breakdowns for such fiscal year;

 

(c)           Minutes:        Minutes of all
meetings of the board of directors of the Licensee;

 

(d)           Litigation:        A summary of any
litigation (pending, threatened or otherwise) or other proceedings against the
Licensee before any court, tribunal or administrative agency, promptly after
the Licensee becomes aware of same;

 

(e)           Material
Adverse Effect:        Notice
of any default, breach, acceleration, modification or cancellation of any
agreement, arrangement or other transaction or matter that may result in a
material adverse effect to the Licensee , promptly after the Licensee becomes
aware of same, and

 

(f)            Merger:        Notice of the
intention to effect a change of control, sale of assets, reorganization,
amalgamation, consolidation, merger or an agreement to amalgamate, consolidate
or merger the Licensee with any entity, promptly after the Licensee becomes
aware of same.

 

6.6                           Any
shareholders’ agreement or other relevant transaction document entered into by
the Licensee and its other shareholders, shall include an agreement between the
University and 

 

6

 

such other shareholders of the Licensee, that prevents
such shareholders (each a “Selling Shareholder”)
from selling any shares in the capital stock of the Licensee to any third party
unless the UBC Shares are included at the option of the University, in such
sale, pro rata based on the total number of shares owned by the Selling
Shareholder and the University, and on the same terms and conditions as those
offered to the Selling Shareholder.

 

6.7                           Until the
Licensee becomes a reporting issuer for equity securities under the Securities Act of British Columbia, or under the applicable
securities legislation in any other jurisdiction which has jurisdiction over
the issuance of securities by the Licensee, the University shall have the right
to appoint a representative to hold observer status at all meetings of the
board of directors of the Licensee . Such observer shall not have the right to
vote at any such directors meetings, but shall be entitled to receive notice
of, and attend such meetings.

 

6.8                           In further
consideration for the license granted hereunder, the Licensee shall pay to the
University, in addition to all other amounts due under this Agreement, an
annual maintenance fee of CAN. $2,000.00 payable on or before January 2 of each
year during which this Agreement remains in full force and effect, commencing
on January 2, 2002 (the “Annual Maintenance Fee”).
Neither all nor any part of the Annual Maintenance Fee paid shall be refundable
to the Licensee under any circumstances. The Annual Maintenance Fee is intended
to cover maintenance of this Agreement by the University, and shall be separate
and distinct from any royalties due to the University under this Agreement.

 

7.0                          PATENTS:

 

7.1                           The
Licensee shall have the right to identify any process, use or products arising
out of the Technology and any University Improvements that may be patentable
and the University shall, upon the request of the Licensee, take all reasonable
steps to apply for a patent in the name of the University provided that the
Licensee pays all costs of applying for, registering and maintaining the patent
in those jurisdictions in which the Licensee might designate that a patent is
required. The University will consult with the Licensee with respect to the
choice of patent counsel. The Licensee will be given an opportunity to review
and provide input regarding the scope and content of patent applications and to
request countries for foreign filings. The University will keep the Licensee
advised as to all significant developments with respect to such applications
and will make reasonable efforts supply the Licensee with copies of material
documents received and filed in connection with the prosecution thereof.

 

7.2                           On the
issuance of a patent in accordance with Article 7.1, the Licensee shall have
the right to become, and shall become, the licensee of the same all pursuant to
the terms contained herein.

 

7.3                           Within 30
days of presentation of receipts and/or invoices by the University to the
Licensee, the Licensee will reimburse the University for all costs incurred to
date with respect to any and all patents relating to the Technology and any
University Improvements licensed hereunder, and with respect to any and all
maintenance fees for any and all patents relating to the Technology and any
University Improvements licensed hereunder.

 

7.4                           The
Licensee shall not contest the validity or scope of any and all patents
relating to the Technology and any University Improvements licensed hereunder.

 

7.5                           The
Licensee will ensure proper patent marking for all Technology, and any
University Improvements licensed hereunder and shall clearly mark the
appropriate patent numbers on any Products made using the Technology and any
University Improvements or any patented processes used to make such Products.

 

7

 

8.0                          DISCLAIMER OF WARRANTY:

 

8.1                           [***]

 

8.2                           [***]

 

8.3                           Subject to
Article 8.1, the University makes no representations, conditions or warranties,
either express or implied, with respect to the Technology or any University
Improvements or the Products. Without limiting the generality of the foregoing,
the University specifically disclaims any implied warranty, condition or
representation that the Technology or any University Improvements or the
Products:

 

(a)           shall correspond with a
particular description;

 

(b)           are of merchantable
quality;

 

(c)           are fit for a particular
purpose; or

 

(d)           are durable for a
reasonable period of time.

 

The University
shall not be liable for any loss, whether direct, consequential, incidental or
special, which the Licensee suffers arising from any defect, error, fault or
failure to perform with respect to the Technology or any University
Improvements or Products, even if the University has been advised of the
possibility of such defect, error, fault or failure. The Licensee acknowledges
that it has been advised by the University to undertake its own due diligence
with respect to the Technology and any University Improvements.

 

8.4                           The parties
acknowledge and agree that the International Sale of
Goods Contracts Convention Act and the United Nations Convention on
Contracts for the International Sale of Goods have no application to this
Agreement.

 

8.5                           Subject to
Article 8.1, nothing in this Agreement shall be construed as:

 

(a)           a warranty or
representation by the University as to title to the Technology and/or any
University Improvement or that anything made, used, sold or otherwise disposed
of under the license granted in this Agreement is or will be free from infringement
of patents, copyrights, trade-marks, industrial design or other intellectual
property rights;

 

(b)           an obligation by the
University to bring or prosecute or defend actions or suits against third
parties for infringement of patents, copyrights, trade-marks, industrial
designs or other intellectual property or contractual rights; or

 

(c)           the conferring by the
University of the right to use in advertising or publicity the name of the
University or the UBC Trade-marks.

 

8.6                           Notwithstanding
Article 8.4, in the event of an alleged infringement of the Technology or any
University Improvements or any right with respect to the Technology or any
University Improvements, the Licensee shall have, upon receiving the prior
written consent of the University, [***] the right to prosecute litigation
designed to enjoin infringers of the Technology or any University Improvements.
Provided that it has first granted its prior written consent, the University
agrees to co-operate to the extent of executing all necessary documents and to
vest in the Licensee the right to institute any such suits, so long as all the
direct and indirect costs and expenses of bringing and

 

8

 

conducting any such litigation or settlement shall be borne
by the Licensee and in such event all recoveries shall enure to the Licensee.

 

8.7                           If any
complaint alleging infringement or violation of any patent or other proprietary
rights is made against the Licensee or a sublicensee of the Licensee with
respect to the use of the Technology or any University Improvements or the
manufacture, use or sale of the Products, the following procedure shall be
adopted:

 

(a)           the Licensee shall promptly
notify the University upon receipt of any such complaint and shall keep the
University fully informed of the actions and positions taken by the complainant
and taken or proposed to be taken by the Licensee on behalf of itself or a
sublicensee;

 

(b)           except as provided in
Article 8.6(d), all costs and expenses incurred by the Licensee or any
sublicensee of the Licensee in investigating, resisting, litigating and
settling such a complaint, including the payment of any award of damages and/or
costs to any third party, shall be paid by the Licensee or any sublicensee of
the Licensee, as the case may be;

 

(c)           no decision or action
concerning or governing any final disposition of the complaint shall be taken
without full consultation with and approval by the University, not to be
unreasonably withheld;

 

(d)           the University may elect to
participate formally in any litigation involving the complaint to the extent
that the court may permit, but any additional expenses generated by such formal
participation shall be paid by the University (subject to the possibility of
recovery of some or all of such additional expenses from the complainant);

 

(e)           notwithstanding Article
8.4, if the complainant is willing to accept an offer of settlement and one of
the parties to this Agreement is willing to make or accept such offer and the
other is not, then the unwilling party shall conduct all further proceedings at
its own expense, and shall be responsible for the full amount of any damages,
costs, accounting of profits and settlement costs in excess of those provided
in such offer, but shall be entitled to retain unto itself the benefit of any
litigated or settled result entailing a lower payment of costs, damages,
accounting of profits and settlement costs than that provided in such offer;
and

 

(f)            the royalties payable
pursuant to this Agreement shall be paid by the Licensee to the University in
trust from the date the complaint is made until such time as a resolution of
the complaint has been finalized. If the complainant prevails in the complaint,
then the royalties paid to the University in trust pursuant to this Article
shall be returned to the Licensee, provided that the amount returned to the
Licensee hereunder shall not exceed the amount paid by the Licensee to the
complainant in the settlement or other disposition of the complaint. If the
complainant does not prevail in the complaint, then the University shall be
entitled to retain all royalties paid to it pursuant to this Article.

 

9.0                          INDEMNITY AND LIMITATION OF LIABILITY:

 

9.1                           The
Licensee hereby indemnifies, holds harmless and defends the University, its
Board of Governors, officers, employees, faculty, students, invitees and agents
against any and all claims (including all legal fees and disbursements incurred
in association therewith) arising out of the exercise of any rights under this
Agreement including, without limiting the generality of the 

 

9

 

foregoing, against any damages or losses,
consequential or otherwise, arising from or out of the use of the Technology or
any University Improvements or Products licensed under this Agreement by the
Licensee or its sublicensees or their customers or end-users howsoever the same
may arise.

 

9.2                           Subject to
Article 9.3, the University’s total liability, whether under the express or
implied terms of this Agreement, in tort (including negligence), or at common
law, for any loss or damage suffered by the Licensee, whether direct, indirect
or special, or any other similar or like damage that may arise or does arise
from any breaches of this Agreement by the University, its Board of Governors,
officers, employees, faculty, students or agents, shall be limited to the
amount CAN. $2,000, which amount may (at the University’s option) be satisfied
by the University returning and transferring to the Licensee all of the UBC
Shares in the Licensee then owned by the University (notwithstanding the
University may have previously sold some of the UBC Shares).

 

9.3                           In no event
shall the University be liable for consequential or incidental damages arising
from any breach or breaches of this Agreement.

 

9.4                           No action,
whether in contract or tort (including negligence), or otherwise arising out of
or in connection with this Agreement, may be brought by the Licensee more than
six months after the Licensee has notice of the cause of action occurring.

 

10.0                        PUBLICATION AND CONFIDENTIALITY:

 

10.1                         The
Information shall be developed, received and used by the Licensee solely in
furtherance of the purposes set forth in this Agreement subject to the terms
and conditions set forth in this Article 10.

 

10.2                         Subject to
Article 10.6, the parties shall keep and use all of the Confidential
Information in confidence and will not, without the other party’s prior written
consent, disclose any Confidential Information to any person or entity, except
those officers, employees, faculty, students and professional advisors who
require said Confidential Information in performing their obligations under
this Agreement. The Licensee covenants and agrees that it will initiate and
maintain an appropriate internal program limiting the internal distribution of
the Confidential Information to only those officers, employees and professional
advisors who require said Confidential Information in performing their
obligations under this Agreement and who have signed confidentiality and
non-disclosure agreements in a form approved by the Licensee’s Board of
Directors. All Confidential Information must be marked in writing as
Confidential at the time of disclosure or within 30 days from receipt by the
Licensee.

 

10.3                         The Licensee
shall not use, either directly or indirectly, any Confidential Information for
any purpose other than as set forth herein without the University’s prior
written consent.

 

10.4                         If the
Licensee is required by judicial or administrative process to disclose any or
all of the Confidential Information, the Licensee shall promptly notify the
University and allow the University reasonable time to oppose such process
before disclosing any Confidential Information.

 

10.5                         Notwithstanding
any termination or expiration of this Agreement, the obligations created in
this Article 10 shall survive and be binding upon the Licensee, its successors
and assigns.

 

10.6                         The
University shall not be restricted from presenting at symposia, national or
regional professional meetings, or from publishing in journals, or electronic
media including the internet, or other publications, accounts of its research,
including abstracts, relating to the Information, provided that with respect to
Confidential Information only, the Licensee shall have

 

10

 

been furnished copies of the disclosure proposed
therefor at least 60 days in advance of the presentation or submission date and
does not within 30 days after delivery of the proposed disclosure object to
such presentation or submission. Any objection to a proposed presentation or
publication shall specify the portions of the presentation or publication
considered objectionable (the “Objectionable Material”).
Upon receipt of notification from the Licensee that any proposed publication or
disclosure contains Objectionable Material, the University and the Licensee
shall work together to revise the proposed publication or presentation to
remove or alter the Objectionable Material in a manner acceptable to the
Licensee, in which case the Licensee shall withdraw its objection. If an
objection is made, disclosure of the Objectionable Material shall not be made
for a period of three months after the date the Licensee received the proposed
publication or presentation relating to the Objectionable Material. The
University shall co-operate in all reasonable respects in making revisions to
any proposed disclosures if considered by the Licensee to contain Objectionable
Material. The University shall not be restricted from publishing or presenting
the proposed disclosure as long as the Objectionable Material has been removed.
After the six month period has elapsed the University shall be free to present
and/or publish the proposed publication or presentation whether or not it
contains Objectionable Material.

 

10.7                         The Licensee
requires of the University, and the University agrees insofar as it may be
permitted to do so at law, that this Agreement, and each part of it, is
confidential and shall not be disclosed to third parties, as the Licensee
claims that such disclosure would or could reveal commercial, scientific or
technical information and would significantly harm the Licensee’s competitive
position and/or interfere with the Licensee’s negotiations with prospective
sublicensees. Notwithstanding anything contained in this Article, the parties
hereto acknowledge and agree that the University and Licensee each may identify
the title of this Agreement, the parties to this Agreement and the names of the
inventors of the Technology and any Improvements.

 

11.0                        PRODUCTION AND MARKETING:

 

11.1                         Notwithstanding
Article 10.7, the Licensee shall not use any of the UBC Trade-marks or make
reference to the University or its name in any advertising or publicity
whatsoever, without the prior written consent of the University, except as
required by law. Without limiting the generality of the foregoing, the Licensee
shall not issue a press release with respect to this Agreement or any activity
contemplated herein without the prior review and approval of same by the
University, except as required by law. If the Licensee is required by law to
act in contravention of this Article, the Licensee shall provide the University
with sufficient advance notice in writing to permit the University to bring an
application or other proceeding to contest the requirement.

 

11.2                         The Licensee
will not register or use any trade-marks in association with the Products
without the prior written consent of the University.

 

11.3                         The Licensee
represents and warrants to the University that:

 

(a)           it intends to building,
develop and acquire the infrastructure, expertise and resources to develop and
commercialize the Technology and any Improvements;

 

(b)           it has or intends to have
prior to the execution of sublicensing agreements, the infrastructure,
expertise and resources to track and monitor on an ongoing basis performance
under the terms of each sublicense agreement entered into by the Licensee;

 

(c)           it has or intends to have
the expertise and resources to monitor on a world wide basis patent
infringement with respect to any patent relating to the Technology and any
Improvements licensed hereunder;  and

 

11

 

(d)           it has or intends to have
the expertise and resources to initiate and maintain an appropriate program
limiting the distribution of the Information, Technology, and any Improvements
and any related biological materials as set out in this Agreement and to obtain
the appropriate non-disclosure agreements from all persons who may have access
to the Technology, and any Improvements and related biological materials.

 

11.4                         The Licensee
shall use commercially reasonable efforts to develop and exploit the Technology
and any Improvements and to promote, market and sell the Products and utilize
the Technology and any Improvements and to meet or cause to be met the market
demand for the Products and the utilization of the Technology and any
Improvements. Without limiting the generality of the foregoing, the Licensee
shall:

 

(a)           [***]

 

(b)           [***]

 

(c)           [***]

 

(i)            [***]

 

(ii)           [***]

 

(d)           [***]

 

11.5                         If the
University is of the view that the Licensee is in breach of Article 11.4, the
University shall notify the Licensee and the parties hereto shall appoint a
mutually acceptable person as an independent evaluator (the “Evaluator”) to conduct the
evaluation set forth in Article 11.6. Such Evaluator shall execute a
non-disclosure agreement acceptable to the Licensee prior to performing any of
the duties described in this Agreement. If the parties cannot agree on such an
Evaluator, the appointing authority shall be the British Columbia International
Commercial Arbitration Centre.

 

11.6                         Unless the
Parties mutually agree otherwise, the following rules and procedures shall
govern the conduct of the parties and the Evaluator before and during the
investigation by the Evaluator:

 

(a)           within 30 days of the
appointment of the Evaluator each party shall provide to the Evaluator and the
other party copies of all documents, statements and records on which the party
intends to rely in presenting its position to the Evaluator;

 

(b)           within 45 days of the
appointment of the Evaluator the Licensee shall provide to the Evaluator and
the University a written summary of its position. On receipt of the Licensee’s
summary the University shall have 15 days to prepare and submit to the Licensee
and the Evaluator its own summary in reply to the summary submitted by the
Licensee;

 

(c)           on receipt of the
documents, statements, records and summaries submitted by the parties the
Evaluator shall have 30 days within which to conduct such further inquiries as
he or she may deem necessary for the purpose of reviewing the efforts made by
the Licensee with respect to the promotion, marketing and sale of the Products
and the Technology and any Improvements in compliance with the requirements of
Article 11.4. For the purpose of conducting such an inquiry, the Evaluator
shall have the right to:

 

12

 

(i)            require
either party to disclose any further documents or records which the Evaluator
considers to be relevant;

 

(ii)           interview
or question either orally (or by way of written questions) one or more
representatives of either party on issues deemed to be relevant by the Evaluator;

 

(iii)          make an
“on site” inspection of the Licensee’s
facilities;

 

(iv)          obtain
if necessary, the assistance of an independent expert to provide technical
information with respect to any area in which the Evaluator does not have a
specific expertise;

 

(d)           On completion of the
Inquiry described in Article 11.6(c) the Evaluator shall within 15 days prepare
a report setting out his or her findings and conclusions as to whether or not
the Licensee has committed a breach of Article 11.4. If the Evaluator has
determined that the Licensee has committed a breach of Article 11.4, then the
Evaluator shall also set out in the report his or her conclusions as to whether
such breach:

 

(i)            was
substantially due to external market conditions not within the control of the
Licensee, or

 

(ii)           was
substantially due to the Licensee’s failure to use commercially reasonable
efforts to comply with the requirements of Article 11.4.

 

(e)           The report and conclusions
of the Evaluator shall be delivered to the Licensee and the University, and
shall be accepted by both parties as final and binding.

 

11.7                         If the
Evaluator concludes:

 

(a)           pursuant to Article
11.6(d)(i) that the Licensee’s breach was substantially due to external market
conditions beyond the control of the Licensee, then the University shall
continue the license granted hereunder as an exclusive license, but with all
other terms and conditions of this Agreement unchanged;

 

(b)           pursuant to Article
11.6(d)(ii) that the Licensee’s breach was substantially due to the Licensee’s
failure to use commercially reasonable efforts then the University shall at its
option have the right to terminate this Agreement as provided in Article 18

 

(c)           pursuant to Article 11.6(d)
that the Licensee is not in breach of Article 11.4, then the University shall
not terminate this Agreement for breach of Article 11.4, nor shall it change
the nature of the license granted hereunder.

 

11.8                         [***]

 

12.0                        ACCOUNTING RECORDS:

 

12.1                         The Licensee
shall maintain at its principal place of business, or such other place as may
be most convenient, separate accounts and records of all Revenues, sublicenses
and Sublicensing Revenues, and all business done pursuant to this Agreement,
such accounts and records to be in sufficient detail to enable proper returns
to be made under this Agreement, and the Licensee shall cause its sublicensees
to keep similar accounts and records.

 

13

 

12.2                         The Licensee
shall deliver to the University on the date 30 days after each and every Royalty
Due Date, together with the royalty payable thereunder, the Accounting and a
report on all Sublicensing activity, including an accounting statement setting
out in detail how the amount of Sublicensing Revenue was determined and
identifying each sublicensee and the location of the business of each
sublicensee.

 

12.3                         The
calculation of royalties shall be carried out in accordance with generally
accepted Canadian accounting principles (“GAAP”), or
the standards and principles adopted by the U.S. Financial Accounting Standards
Board (“FASB”) applied on a
consistent basis.

 

12.4                         The Licensee
shall retain the accounts and records referred to in Article 12.1 above for at
least six years after the date upon which they were made and shall permit any
duly authorized representative of the University to inspect such accounts and
records during normal business hours of the Licensee at the University’s
expense. The Licensee shall furnish such reasonable evidence as such
representative will deem necessary to verify the Accounting and will permit
such representative to make copies of or extracts from such accounts, records
and agreements at the University’s expense. If an inspection of the Licensee’s
records by the University shows an under-reporting or underpayment by the
Licensee of any amount to the University, in excess of 5% for any 12 month
period, then the Licensee shall reimburse the University for the cost of the
inspection as well as pay to the University any amount found due (including any
late payment charges or interest) within 30 days of notice by the University to
the Licensee.

 

12.5                         During the
term of this Agreement, and thereafter, the University shall use reasonable
efforts to ensure that all information provided to the University or its
representatives pursuant to this Article remains confidential and is treated as
such by the University.

 

13.0                        INSURANCE:

 

13.1                         Unless
satisfactory arrangements are made between the Licensee and the University with
respect to a self-insurance program or the requirement for insurance hereunder
is waived by the University sixty (60) days prior to the commencement of any
human clinical trials or other Product testing involving human subjects by the
Licensee or any sublicensee, then the Licensee shall procure and maintain, during
the term of this Agreement, the insurance outlined in Articles 13.2 and 13.3
and otherwise comply with the insurance provisions contained in Articles 13.2
and 13.3.

 

13.2                         The Licensee
shall give written notice to the University:

 

(a)           sixty (60) days prior to
the commencement of any human clinical trials or other Product testing
involving human subjects by the Licensee or any sublicensee, (“Human Clinical Trials”) and

 

(b)           Sixty (60) days prior to
the first sale of any Product by the Licensee or any sublicensee

 

of the terms
and amount of the appropriate public liability, product liability and errors
and omissions insurance which it has placed. Such insurance shall in no case be
less than the insurance which a reasonable and prudent businessperson carrying
on a similar line of business would acquire. This insurance shall be placed
with a reputable and financially secure insurance carrier, shall include the
University, its Board of Governors, faculty, officers, employees, students, and
agents as additional insureds, and shall provide primary coverage with respect
to the activities contemplated by this Agreement. Such policy shall include
severability of interest and cross-liability clauses and shall provide that the
policy shall not be cancelled or materially altered except upon at least 30
days’ written notice to the University. The University shall have the right to
require reasonable

 

14

 

amendments to
the terms or the amount of coverage contained in the policy. Failing the
parties agreeing on the appropriate terms or the amount of coverage, then the
matter shall be determined by arbitration as provided for herein. The Licensee
shall provide the University with certificates of insurance evidencing such
coverage 30 days before commencement of Human Clinical Trials and 30 days prior
to the sales of any Product and the Licensee covenants not to start Human
Clinical Trials, or sell any Product before such certificate is provided and
approved by the University, or to sell any Product at any time unless the
insurance outlined in this Article 13.2 is in effect.

 

13.3                         The Licensee
shall require that each sublicensee under this Agreement shall procure and
maintain, during the term of the sublicense, public liability, product
liability and errors and omissions insurance in reasonable amounts, with a
reputable and financially secure insurance carrier. The Licensee shall use its
best efforts to ensure that any and all such policies of insurance required
pursuant to this Article shall contain a waiver of subrogation against the
University, its Board of Governors, faculty, officers, employees, students, and
agents.

 

14.0                        ASSIGNMENT:

 

14.1                         The Licensee
will not assign, transfer, mortgage, charge or otherwise dispose of any or all
of the rights, duties or obligations granted to it under this Agreement without
the prior written consent of the University, not to be unreasonably withheld.

 

14.2                         The
University shall have the right to assign its rights under this Agreement to a
company or society of which it is the sole shareholder, in the case of a
company, or of which it controls the membership, in the case of a society. In
the event of such an assignment, the Licensee will release, remise and forever
discharge the University from any and all obligations or covenants, provided
however that such company or society, as the case may be, executes a written
agreement which provides that such company or society shall assume all such
obligations or covenants from the University and that the Licensee shall retain
all rights granted to the Licensee pursuant to this Agreement.

 

15.0                        GOVERNING LAW AND ARBITRATION:

 

15.1                         This
Agreement shall be governed by and construed in accordance with the laws of the
Province of British Columbia and the laws of Canada in force therein without
regard to its conflict of law rules. All parties agree that by executing this
Agreement they have attorned to the jurisdiction of the Supreme Court of
British Columbia. Subject to Articles 15.2 and 15.3, the British Columbia
Supreme Court shall have exclusive jurisdiction over this Agreement.

 

15.2                         Except as
provided in Article 11, in the event of any dispute arising between the parties
concerning this Agreement, its enforceability or the interpretation thereof,
the same shall be settled by a single arbitrator appointed pursuant to the
provisions of the Commercial Arbitration Act of
British Columbia, or any successor legislation then in force. The place of
arbitration shall be Vancouver, British Columbia. The language to be used in
the arbitration proceedings shall be English.

 

15.3                         Nothing in
Article 15.2 shall prevent a party hereto from applying to a court of competent
jurisdiction for interim protection such as, by way of example, an interim
injunction.

 

16.0                        NOTICES:

 

16.1                         All payments,
reports and notices or other documents that any of the parties hereto are
required or may desire to deliver to any other party hereto may be delivered
only by personal delivery or by registered or certified mail, telex or fax, all
postage and other charges prepaid, at the 

 

15

 

address for such party set forth below or at such
other address as any party may hereinafter designate in writing to the others. Any
notice personally delivered or sent by telex or fax shall be deemed to have
been given or received at the time of delivery, telexing or faxing. Any notice
mailed as aforesaid shall be deemed to have been received on the expiration of
five days after it is posted, provided that if there shall be at the time of
mailing or between the time of mailing and the actual receipt of the notice a
mail strike, slow down or labour dispute which might affect the delivery of the
notice by the mails, then the notice shall only be effected if actually received.

 

	
  If to
  the University:

  	
  The Director

  
	
   

  	
  University -
  Industry Liaison Office

  
	
   

  	
  University
  of British Columbia

  
	
   

  	
  IRC 331 -
  2194 Health Sciences Mall

  
	
   

  	
  Vancouver,
  British Columbia

  
	
   

  	
  V6T 1Z3

  
	
   

  	
  Telephone:

  	
  (604)822-8580

  
	
   

  	
  Fax:

  	
  (604)822-8589

  
	
   

  	
   

  	
   

  
	
  If to the
  Licensee:

  	
  The
  President

  
	
   

  	
  OncoGenex
  Technologies Inc.

  
	
   

  	
  Suite 400,
  609 – 14th Street N.W.

  
	
   

  	
  Calgary,
  Alberta T2N 2A1

  
	
   

  	
  Telephone:

  	
  (403)-283-6051

  
	
   

  	
  Fax:

  	
  (403)-283-6753

  

 

17.0                        TERM:

 

17.1                         This
Agreement and the license granted hereunder shall terminate on the expiration
of a term of 20 years from the Date of Commencement or the expiration of the
last patent obtained pursuant to Article 7 herein, whichever event shall last
occur, unless earlier terminated pursuant to Article 18 herein.

 

18.0                        TERMINATION:

 

18.1                         This
Agreement shall automatically and immediately terminate without notice to the
Licensee if any proceeding under the Bankruptcy and Insolvency
Act of Canada, or any other statute of similar purport, is commenced
by or against the Licensee.

 

18.2                         The University
may, at its option, terminate this Agreement immediately on the happening of
any one or more of the following events by delivering notice in writing to that
effect to the Licensee:

 

(a)           if the Licensee becomes
insolvent;

 

(b)           if any execution, sequestration,
or any other process of any court becomes enforceable against the Licensee, or
if any such process is levied on the rights under this Agreement or upon any of
the monies due to the University and is not released or satisfied by the
Licensee within 30 days thereafter; and/or

 

(c)           if any resolution is passed
or order made or other steps taken for the winding up, liquidation or other
termination of the existence of the Licensee.

 

16

 

18.3                         If any one or
more of the following events has occurred and the Licensee has not cured these
events within 30 days of receiving written notice from the University, the
University may, at its option, terminate this Agreement:

 

(a)           if the Licensee is more
than 30 days in arrears of royalties or other monies that are due to the
University under the terms of this Agreement;

 

(b)           if the Technology or any
Improvements becomes subject to any security interest, lien, charge or
encumbrance in favour of any third party claiming through the Licensee, without
the prior written consent of the University, not to be unreasonably withheld;

 

(c)           if the Licensee ceases or
threatens to cease to carry on its business;

 

(d)           if a controlling interest
in the Licensee passes to any person or persons other than those having a
controlling interest at the Date of Commencement, whether by reason of purchase
of shares or otherwise, without the prior written consent of the University,
such consent not to be withheld except as provided in Article 18.6;

 

(e)           if the composition of the
Board of Directors of the Licensee is changed without the prior written consent
of the University, such consent not to be withheld except as provided in
Article 18.6;

 

(f)            if the Licensee undergoes
a reorganization or any part of its business relating to this Agreement is
transferred to a subsidiary or associated company without the prior written
consent of the University, such consent not to be withheld except as provided
in Article 18.6;

 

(g)           if the Licensee commits any
breach of Articles [***]

 

(h)           if it is determined,
pursuant to Article 11.6, that the Licensee is in breach of Article 11.4;

 

(i)            if any sublicensee of the
Licensee is in breach of its sublicense agreement with the Licensee and the
Licensee does not cause such sublicensee to cure such default within 30 days of
receipt of written notice from the University requiring that the Licensee cause
such sublicensee to cure such default, or

 

(j)            if the Licensee is in
breach of any other agreement between the Licensee and the University which
breach has not been cured within the time provided for the curing of such
breach under the terms of such other agreement.

 

18.4                         The
University shall not withhold its consent pursuant to Article 18.3(d), 18.3(e)
or 18.3(f) unless the granting of such consent would result in the University
having a contractual relationship with an entity with whom the University is
prohibited from contracting with pursuant to its then existing policies.

 

18.5                         Other than as
set out in Articles 18.1, 18.2 and 18.3, if either party shall be in default
under or shall fail to comply with the terms of this Agreement then the
non-defaulting party shall have the right to terminate this Agreement by
written notice to the other party to that effect if:

 

17

 

(a)           such default is reasonably
curable within 30 days after receipt of notice of such default and such default
or failure to comply is not cured within 30 days after receipt of written
notice thereof; or

 

(b)           such default is not
reasonably curable within 30 days after receipt of written notice thereof, and
such default or failure to comply is not cured within such further reasonable
period of time as may be necessary for the curing of such default or failure to
comply.

 

18.6                         If this
Agreement is terminated pursuant to Article 18.1, 18.2, 18.3 or 18.5, the
Licensee shall make royalty payments to the University in the manner specified
in Article 5, and the University may proceed to enforce payment of all
outstanding royalties or other monies owed to the University and to exercise
any or all of the rights and remedies contained herein or otherwise available
to the University by law or in equity, successively or concurrently, at the
option of the University. Upon any such termination of this Agreement, the
Licensee shall forthwith deliver up to the University all Technology and any
Improvements in its possession or control and shall have no further right of
any nature whatsoever in the Technology or any Improvements. On the failure of
the Licensee to so deliver up the Technology and any Improvements, the
University may immediately and without notice enter the Licensee’s premises and
take possession of the Technology and any Improvements. The Licensee will pay
all charges or expenses incurred by the University in the enforcement of its
rights or remedies against the Licensee including, without limitation, the
University’s legal fees and disbursements on an indemnity basis.

 

18.7                         The Licensee
shall cease to use the Technology or any Improvements in any manner whatsoever
or to manufacture or sell the Products within five days from the Effective Date
of Termination. The Licensee shall then deliver or cause to be delivered to the
University an accounting within 30 days from the Effective Date of Termination.
The accounting will specify, in or on such terms as the University may in its
sole discretion require, the inventory or stock of Products manufactured and
remaining unsold on the Effective Date of Termination. The University will instruct
that the unsold Products be stored, destroyed or sold under its direction,
provided this Agreement was terminated pursuant to Article 18.2, 18.3 or 18.6. Without
limiting the generality of the foregoing, if this Agreement was terminated
pursuant to Article 18.1, the unsold Products will not be sold by any party
without the prior written consent of the University. The Licensee will continue
to make royalty payments to the University in the same manner specified in
Article 5 and 6 on all unsold Products that are sold in accordance with this
Article 18.8, notwithstanding anything contained in or any exercise of rights
by the University under Article 18.7 herein.

 

18.8                         Notwithstanding
the termination of this Agreement, Article 12 shall remain in full force and
effect until six years after:

 

(a)           all payments of royalty
required to be made by the Licensee to the University under this Agreement have
been made by the Licensee to the University; and

 

(b)           any other claim or claims
of any nature or kind whatsoever of the University against the Licensee has
been settled.

 

18.9                         [***]

 

(a)           [***]

 

(b)           [***]

 

(c)           [***]

 

[***]

 

18

 

19.0                        MISCELLANEOUS COVENANTS OF LICENSEE:

 

19.1                         The Licensee
hereby represents and warrants to the University that the Licensee is a
corporation duly organized, existing and in good standing under the laws of
Canada and has the power, authority and capacity to enter into this Agreement
and to carry out the transactions contemplated by this Agreement, all of which
have been duly and validly authorized by all requisite corporate proceedings.

 

19.2                         The Licensee
represents and warrants that it has the expertise necessary to handle the
Technology and any Improvements with care and without danger to the Licensee,
its employees, agents, or the public. The Licensee shall not accept delivery of
the Technology or any Improvements until it has requested and received from the
University all necessary information and advice to ensure that it is capable of
handling the Technology and any Improvements in a safe and prudent manner.

 

19.3                         The Licensee
shall comply with all laws, regulations and ordinances, whether Federal, State,
Provincial, County, Municipal or otherwise, with respect to the Technology and
any Improvements and/or this Agreement.

 

19.4                         The Licensee
will reimburse the University for its legal fees incurred in connection with
the preparation of this Agreement [***] 
In addition upon the presentation of itemized bills to the Licensee by
the University, the Licensee shall pay all reasonable legal expenses and costs
incurred by the University in respect of any consents and approvals required
from the University, including, but not limited to, expenses and costs in
respect of the University’s review of any sublicenses to be granted by the
Licensee.

 

19.5                         The Licensee
shall pay all taxes and any related interest or penalty howsoever designated
and imposed as a result of the existence or operation of this Agreement,
including, but not limited to, tax which the Licensee is required to withhold
or deduct from payments to the University. The Licensee will furnish to the
University such evidence as may be required by Canadian authorities to
establish that any such tax has been paid. The royalties specified in this Agreement
are exclusive of taxes. If the University is required to collect a tax to be
paid by the Licensee or any of its sublicensees, the Licensee shall pay such
tax to the University on demand.

 

19.6                         The
obligation of the Licensee to make all payments hereunder will be absolute and
unconditional and will not, except as expressly set out in this Agreement, be
affected by any circumstance, including without limitation any set-off,
compensation, counterclaim, recoupment, defence or other right which the Licensee
may have against the University, or anyone else for any reason whatsoever.

 

19.7                         All amounts
due and owing to the University hereunder but not paid by the Licensee on the
due date thereof shall bear interest in Canadian dollars at the rate of [***] per
month. Such interest shall accrue on the balance of unpaid amounts from time to
time outstanding from the date on which portions of such amounts become due and
owing until payment thereof in full.

 

20.0                        GENERAL:

 

20.1                         Upon 48 hours
advance notice, and at the University’s sole risk and expenses, the Licensee
shall permit any duly authorized representative of the University that has
signed an appropriate non-disclosure agreement with the Licensee to enter upon
and into any premises of the Licensee during normal business hours for the
purpose of inspecting the Products and the manner

 

19

 

of their manufacture and generally of ascertaining
whether or not the provisions of this Agreement have been, are being, or will
be complied with by the Licensee.

 

20.2                         Nothing
contained herein shall be deemed or construed to create between the parties
hereto a partnership or joint venture. No party shall have the authority to act
on behalf of any other party, or to commit any other party in any manner or
cause whatsoever or to use any other party’s name in any way not specifically
authorized by this Agreement. No party shall be liable for any act, omission,
representation, obligation or debt of any other party, even if informed of such
act, omission, representation, obligation or debt.

 

20.3                         Subject to
the limitations hereinbefore expressed, this Agreement shall enure to the
benefit of and be binding upon the parties and their respective successors and
permitted assigns.

 

20.4                         No condoning,
excusing or overlooking by any party of any default, breach or non-observance
by any other party at any time or times in respect of any covenants, provisos
or conditions of this Agreement shall operate as a waiver of such party’s
rights under this Agreement in respect of any continuing or subsequent default,
breach or non-observance, so as to defeat in any way the rights of such party
in respect of any such continuing or subsequent default or breach, and no
waiver shall be inferred from or implied by anything done or omitted by such
party, save only an express waiver in writing.

 

20.5                         No exercise
of a specific right or remedy by any party precludes it from or prejudices it
in exercising another right or pursuing another remedy or maintaining an action
to which it may otherwise be entitled either at law or in equity.

 

20.6                         Marginal
headings as used in this Agreement are for the convenience of reference only
and do not form a part of this Agreement and are not be used in the
interpretation hereof.

 

20.7                         The terms and
provisions, covenants and conditions contained in this Agreement which by the
terms hereof require their performance by the parties hereto after the
expiration or termination of this Agreement shall be and remain in force
notwithstanding such expiration or other termination of this Agreement for any
reason whatsoever.

 

20.8                         If any
Article, part, section, clause, paragraph or subparagraph of this Agreement
shall be held to be indefinite, invalid, illegal or otherwise voidable or
unenforceable, the entire Agreement shall not fail on account thereof, and the
balance of this Agreement shall continue in full force and effect.

 

20.9                         The parties
hereto each acknowledge that the law firm of Richards Buell Sutton has acted
solely for the University in connection with this Agreement and that all other
parties hereto have been advised to seek independent legal advice.

 

20.10                       This Agreement
sets forth the entire understanding between the parties and no modifications
hereof shall be binding unless executed in writing by the parties hereto.

 

20.11                       Time shall be
of the essence of this Agreement.

 

20

 

20.12                       Whenever the
singular or masculine or neuter is used throughout this Agreement the same
shall be construed as meaning the plural or feminine or body corporate when the
context or the parties hereto may require.

 

IN WITNESS
WHEREOF the parties hereto have hereunto executed this Agreement on the 15th
day of November, 2001 but effective as of the Date of Commencement.

 

	
  SIGNED FOR
  AND ON BEHALF of

  	
  )

  	
   

  
	
  THE
  UNIVERSITY OF BRITISH COLUMBIA

  	
  )

  	
   

  
	
  by its duly
  authorized officers:

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
   

  	
  )

  	
  Indira V.
  Samarasekera, F.R.S.C.

  
	
  /s/ Indira
  Samarasekera

  	
   

  	
  )

  	
  Vice
  President Research

  
	
  Authorized
  Signatory

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  /s/ Caroline
  Bruce

  	
   

  	
  )

  	
   

  
	
  Authorized
  Signatory

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  

 

 

	
  SIGNED FOR
  AND ON BEHALF of

  	
  )

  	
   

  
	
  ONCOGENEX
  TECHNOLOGIES INC.

  	
  )

  	
   

  
	
  by its duly
  authorized officers:

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  /s/ Scott
  Cormack

  	
   

  	
  )

  	
   

  
	
  Authorized
  Signatory

  	
  )

  	
   

  
	
  Scott D.
  Cormack

  	
  )

  	
   

  
	
  President
  & CEO

  	
  )

  	
   

  
				

 

21

 

SCHEDULE
“A”

 

DESCRIPTION
OF “TECHNOLOGY”

 

The following represents the intellectual property and know-how that is
to be licensed to the Licensee for development of novel treatments of cancer as
contemplated under this License Agreement:

 

1.             [***]

 

2.             And all applications that may be filed based on
the foregoing, including, without limitation, all regular, divisional or
continuation, in whole or in part, applications based on the foregoing, and all
applications corresponding to the foregoing filed in countries other than the
United States;  and

 

3.             Any and all issued and unexpired re-issues,
re-examinations, renewals or extensions that may be based on any of the patents
described above.

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