Document:

MASTER
SERVICES AGREEMENT

    

    This
Master Services Agreement ("Agreement") is entered into as of May 17th, 2007
(the "Effective Date") by and between YM Biosciences Inc., a
Canadian corporation with an office at 5045 Orbitor Drive, Bldg. 11, Suite 400,
Mississauga, Ontario L4W 4Y4 (collectively with its Affiliates hereinafter the
"YMB") and Allphase Clinical
Research Services Inc., having offices at 19 Camelot Drive, Ottawa,
Ontario, K2G 5W6 (collectively with its Affiliates hereinafter "ALLPHASE"). YMB
and ALLPHASE are referred to singly as "Party" and jointly as "Parties"
throughout this Agreement.

    

    WITNESSETH

    

    WHEREAS, ALLPHASE is a
contract research organization that provides the implementation, management and
monitoring of clinical studies and related services (hereinafter, "Services");
and

    

    WHEREAS, the YMB desires to
obtain Services from ALLPHASE throughout the Term of this Agreement in
accordance with the terms set forth herein and in accordance with a defined
specification and scope of work to be mutually agreed upon by the Parties in
writing (hereinafter the "Work Order") substantially in the form of Attachment A
which is herein incorporated by reference; and,

    

    NOW THEREFORE, for and in
consideration of the mutual covenants and agreements set Forth hereinafter and
for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto do hereby agree as
follows:

    

    Article
1

    DEFINITIONS

    

    For
purposes of this Agreement and the Protocol, each capitalized term shall have
the meaning ascribed to it in this Agreement. Each capitalized tern not defined
in this Agreement shall have the meaning ascribed to that term in the Protocol.
In the event of a discrepancy in the meaning ascribed to a term in the body of
this Agreement and the meaning ascribed to that term in the Protocol, the
definition utilized in the body of this Agreement shall control.

    

    1.1  "Case Report Form" or "CRF" means the record of
pertinent information collected on each subject who participates in the
Study;

    

    1.2  "Cause" means a Defaulting
Party's failure to correct a default or to provide a schedule for correcting a
default which is acceptable to the Non-Defaulting Party, within five (5)
business days after being given notice of default for failure to perform a
material obligation under this agreement.

    

    1.3  "Change Order" means of an
adjustment in fees, timeline, Protocol, performance milestones, budget, payment
schedule, duties, deliverables or matters related to Out of Scope
Services.

    

    1.4  "Clinical Research Associate"
or "CRA" means the
person assigned by ALLPHASE to monitor one or more Study Sites.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    1.5  "Clinical Trial Agreement"
means the agreement between YMB and an Investigator that details the respective
rights and obligations of both parties in relation to the Study;

    

    1.6  "Clinical Trial Materials"
means the printed Case Report Forms, CRF monitoring conventions, the Protocol,
the investigational drug brochure, informed consent form, guidelines for use of
the Investigational
Product, and all other materials provided by YMB to conduct the
Study.

    

    1.7  "Closeout Services" means
those services described in Section 10.4 to be performed by ALLPHASE upon
termination of this Agreement.

    

    1.8  "Confidential Information"
means all information relating to the Investigational Product and Study
including but not limited to YMB's business, operations, methods of operating,
customers, affairs, processes, inventions, know-how, research, trade secrets,
personnel, and financial, production, scientific and technical data and
information, whether written, graphic, electronic, digital or oral, as well as
samples and specimens thereof, howsoever or whensoever obtained by ALLPHASE,
whether from YMB or otherwise and whether directly or indirectly and all
clinical data, including Case Report Forms, underlying data and all scientific
and technical information generated as a result of the Study and copies, notes
or summaries prepared with the Confidential Information.

    

    1.9  "Effective Date" means the
effective date of this Agreement as set forth in the initial paragraph of this
Agreement.

    

    1.10  "FDA" means United States Food
and Drug Administration.

    

    1.11
"GCPs" means established
ethical, medical and scientific standards, including without limitation good
clinical practices, including as described in the ICH Guidelines, the
Tri-Council Policy Statement: Ethical Conduct for Research Involving Humans and
the Declaration of Helsinki and all applicable regulatory
requirements.

    

    1.12
"GLPs" means good
laboratory practices as established by TPD and the FDA for the commercialization
of pharmaceutical products in Canada and the United States.

    

    1.13
"ICH Guidelines" means
the guidelines of the International Conference on Harmonization of Technical
Requirements for Registration of Pharmaceuticals for Human Use, providing for a
unified standard for Canada, the European Union, Japan and the United States
with respect to the interpretation and application of technical guidelines and
requirements for pharmaceutical product registration.

    

    1.14  "Institutional Review Board"
or "IRB" means the
independent group of professionals designated to ensure that the Study is safe
and effective for human participation and that the Study adheres to the
regulations issued by Health Canada and any other applicable country- specific
laws, regulations or guidelines.

    

    1.15
"Intellectual Property"
means all information, data, works of authorship, discoveries, concepts,
designs, processes, software, algorithms and inventions, whether patentable or
not, including, without limitation, those that could be the subject of patent,
copyright, industrial design, trade secret or other forms of
protection.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    1.16  "Investigational New Drug
Application'' or "IND"
means the petition filed by YMB with Health Canada requesting Health
Canada to allow human testing on the Investigational Product.

    

    1.17  "Investigational Product"
means the product (drug, device, or biologic) described in the Protocol
that will be evaluated in this Study.

    

    1.18  "Investigator" means an
individual who actually conducts a clinical investigation, i.e., under whose
immediate direction the Investigational Product is administered or dispensed to,
or used involving a subject, or, in the event of an investigation conducted by a
team of individuals, is the responsible leader of that team.

    

    1.19  "Laws" means all applicable:
(a) laws, statutes, codes, rules, regulations and Regulatory Requirements; (b)
judgments, orders, decisions, rulings, and words of a regulatory authority; and
(c) pharmaceutical guidelines, policies and standards relating to or having
jurisdiction over a Project.

    

    1.20  "Out of Scope Services" are
changes to a Project or Services that are not specifically provided for in an
executed Work Order.

    

    1.21  "Project Manager" means the
manager assigned by ALLPHASE to be the primary contact person between ALLPHASE
and YMB during the Study.

    

    1.22  "Project" means the Services
described by a Protocol and Work Order, conducted under this
Agreement.

    

    1.23  "Protocol" means the plan that
describes the objectives, study design, and methodology of a Study and any
approved amendments thereto, which is herein incorporated by
reference.

    

    1.24  "Regulatory Requirements"
means those laws, regulations, and professional and ethical standards and
guidelines then in effect in the countries in which the Study is conducted that
apply to the Investigational Product or clinical trials in general and as
specified in the individual Work Order.

    

    1.25  "Results" shall mean all
materials, samples, specimens or compounds, including sub-samples or progeny
thereof, all data, information, reports, slides, or presentations; conclusions
and interpretations created or arising in connection with a
Project.

    

    1.26  "Serious Adverse Event" shall
take the meaning given this term in the Protocol.

    

    1.27  "Services" means the
activities and work provided by ALLPHASE in connection with the Study as set out
in this Agreement.

    

    1.28  "Service Documents" means all
Work Orders or Change Orders executed by both Parties under this
Agreement.

    

    1.29  "Standard Operating
Procedures" or "SOP's" means internal
procedures for the management of a clinical trial designed to ensure that the
trial is carried out in a consistent, controlled, and effective
manner.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    1.30
"Study" means the
clinical trial of the Investigational Product, the details of which are set out
in the Schedules.

    

    1.31  "Study Documents" means the
documents produced by ALLPHASE in connection with the Study.

    

    1.32  "Subject" means a human
patient enrolled in the Study.

    

    1.33  "Term" means the duration or
this Agreement as set out in Section 10.1.

    

    1.34  "Test Materials" shall mean
all pharmaceutical compounds, Investigational Product, materials or other
substances provided by YMB to ALLPHASE and administered or utilized as part of
this Study.

    

    1.35  ''TPD'' means Therapeutic
Products Directorate of Health
Canada (or whatever such agency might be called from time to time), or
any successor agency having regulatory jurisdiction over the manufacture,
distribution and sale of drugs in Canada from time to time.

    

    1.36  "Work Order" means a completed
and executed document in the form attached hereto as Appendix A, for a Study and
will include a description of the Project, details of the Services, Protocol,
specifications, deliverables, budget, payment schedule, and timelines, and other
terms agreed to by the Parties.

    

    ARTICLE
II

    SCOPE OF
AGREEMENT

    

    2.1  The
purpose of this Agreement is to set forth the terms, conditions and
administrative procedures applicable to Services provided by ALLPHASE to YMB.
The Parties hereby agree that ALLPHASE will provide such Services to YMB, as set
forth in each attached Work Order (which shall be attached hereto and
incorporated herein by reference). This Agreement and the Work Order, attached
as an Appendix, shall collectively constitute the entire agreement for a
Project. To the extent there is any discrepancy between the provisions of this
Agreement and any Work Order, the terms and conditions of this Agreement shall
govern unless otherwise explicitly set forth and mutually agreed upon by the
Parties.

    

    2.2  In
the event ALLPHASE is requested or required to perform Out of Scope Services on
a Project after execution of the Work Order, ALLPHASE will provide YMB with a
written Change Order. The Parties agree to act in good faith when considering a
Change Order requested by the other Party. Any Change Order will be effective
only upon written execution by both Parties, and the Out of Scope Services
agreed to in the Change Order shall be deemed to be Services pursuant to this
Agreement.

    

    2.3  Should
any Laws be amended, and compliance with the new requirements necessitates a
change in the Protocol or Work Order, ALLPHASE will submit a Change Order to YMB
for acceptance prior to making any changes in the Protocol, Work Order or the
Project. ALLPHASE agrees that no changes shall be made without the prior written
approval of YMB. In the event of a conflict in government regulations, ALLPHASE
shall notify YMB to obtain clarification and guidance regarding compliance with
the regulations.

    

    2.4  ALLPHASE
shall at all times be an independent contractor of YMB, and nothing in this
Agreement is intended, nor shall be construed, to create between YMB and
ALLPHASE the relationship of principal and agent, employer and employee,
partnership, or joint venture, and the parties shall not represent themselves
otherwise. ALLPHASE shall be liable for its own debts, obligations, acts or
omissions, including but not limited to the payment of all required
compensation, withholding, social security and other taxes or benefits for
ALLPHASE's employees relative to Services provided under this
Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ARTICLE
III

    PROJECT
IMPLEMENTATION

    

    3.1  Representations of
ALLPHASE.

    

    3.1.1  ALLPHASE
represents and warrants that it has or shall procure and maintain consents,
approvals, licenses and operating certificate as required to perform its
obligations pursuant to this Agreement and in accordance with Regulatory
Requirements.

    

    3.1.2  ALLPHASE
acknowledges, warrants and represents that it and all of the employees and
agents it assigns to perform Services hereunder possess the necessary
qualifications, knowledge, skills, expertise and experience. ALLPHASE shall, at
all times during this Agreement, act in the best interests of YMB.

    

    3.1.3  ALLPHASE
certifies that to the best of its knowledge after investigation and inquiry,
that none of its employees or agents performing or affiliated with a Project or
Work Order is under investigation by a medical licensing board, TPD, a
regulatory authority, or the FDA for debarment action or is presently debarred,
and shall notify YMB immediately upon any inquiry or the commencement of any
proceeding concerning any such person(s).  ALLPHASE represents and
warrants that it has not and will not use in any capacity the services of any
person debarred under such law with respect to Services to be performed under
this Agreement.

    

    3.1.4  ALLPHASE
warrants that all Services provided by ALLPHASE and the conduct of this Study
shall comply with the Protocol, YMB's instructions, and according to established
ethical, medical and scientific standards, including without limitation, all
applicable Good Laboratory Practices, Good Clinical Practices, the requirements
of the IRB, and all Laws governing or pertaining to clinical trials and studies,
and any amendments thereto or any successor documents thereof.

    

    3.1.5  ALLPHASE
represents that it has the requisite facilities, equipment and personnel with
the requisite expertise, experience and skill to render the desired Services in
a timely, competent and efficient manner, as specified in the Protocol and/or
Work Order and in accordance with the terms of this Agreement.

    

    3.1.6  Conflict
of Interest. ALLPHASE certifies that:

    (a)  no
collateral benefit has been offered to it, or its employees or agents, for
participating in this

    Agreement
such as promises of gifts, future employment, or travel that is not related to
this

    Agreement;
and

    (b)  the
performance of the work specified in this Agreement does not violate any
other

    agreement
ALLPHASE may have with any other party; and

    (c)  no
gifts or other benefits have been offered to any family members;
and

    (d)  there
is no conflict of interest between ALLPHASE and any other party that would
inhibit or

    affect
the performance of the work specified in this Agreement, and

    (e)  it
shall promptly inform YMB in writing in the event of any conflict of interest
that arises

    during
this Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    3.2  Obligations of
ALLPHASE.

    

    3.2.1  ALLPHASE
shall provide all labour and work required for the performance of the Services,
and agrees to perform such Services within the time limits set forth in the Work
Orders. YMB understands and agrees that completing the Services as set forth in
the Work Order assumes the full cooperation of YMB as well as other necessary
third parties. YMB will not hold ALLPHASE responsible for any occurrences
outside ALLPHASE's control that may delay the completion
of Services. YMB acknowledges that, if YMB materially delays or suspends
performance of the Services, then the personnel and/or resources originally
allocated to the Project may be re-allocated, and ALLPHASE will not be
responsible for delays due to required re-staffing or re-allocation of
resources.

    

    3.2.2  ALLPHASE
shall not engage any third party for any of the Services as set forth in Service
Documents without the prior written consent of YMB. ALLPHASE shall be
responsible for all subcontractors performing any Services hereunder and
ALLPHASE will not be relieved of any of its duties and obligations under this
Agreement in the event a subcontractor performs any Services.

    

    3.2.3  Before
commencement of the Study, ALLPHASE shall assign to the Study a Project Manager
and sufficient personnel, including CRAs, with suitable experience and training
to fulfill ALLPHASE's obligations under this Agreement. Any change in the
Project Manager thereafter must be reasonably acceptable to YMB.

    

    3.2.4  ALLPHASE
shall apply to the Study systems of quality control and SOP's designed to ensure
that, as far as is reasonably practicable, YMB and the Investigators conduct the
Study; generate data; and record and report data, all in compliance with the
Regulatory Requirements, Good Clinical Practice, the Protocol, and this
Agreement, in that order.

    

    3.2.5  ALLPHASE
will review all informed consents, Study related forms and CRFs to ensure their
accuracy and completeness and provide these forms and any other Study data or
samples to YMB in the format and manner requested by YMB. ALPHASE agrees to use
commercia1ly reasonable efforts to resolve any discrepancies or errors in the
informed consents and CRFs and perform audit requirements pertaining to original
case records, laboratory reports and/or other raw data sources underlying the
data recorded on the CRFs, as may be required by YMB or Regulatory
Requirements.

    

    3.2.6  ALLPHASE
shall be responsible, at no cost to YMB, to provide such additional services as
may be necessary to remedy any defects or deficiencies in the Services caused by
the negligent acts or omissions of ALLPHASE or by the failure to materially
perform the Services in accordance with the provisions of this Agreement or a
Work Order.

    

    3.2.7  ALLPHASE
and its personnel shall cooperate with any other contractors or consultants
retained by YMB to undertake related work or programs for the
Project.

    

    3.2.8  ALLPHASE
agrees to manage and review the use of the Test Materials by Study sites to
assure that Test Materials are being used in the manner provided in the Protocol
and in accordance with YMB's instructions, and shall not use the Test Materials
for any other purpose whatsoever. Upon completion of the Project, or at any
other time upon YMB's written request and YMB's expense, ALLPHASE agrees to
promptly return to YMB all Test Materials in its possession, other than those
that ALLPHASE is required to store in accordance with applicable Laws. YMB will
notify ALLPHASE within sixty (60) days after completion of a Project whether the
remaining samples are to be returned to YMB, stored or
destroyed.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    3.2.9  ALLPHASE
will provide YMB with written status reports as mutually agreed by the Parties
and as set forth in the applicable Work Order).

    

    3.2.10  ALLPHASE
shall notify YMB by phone immediately after becoming aware of a Serious Adverse
Event and shall submit an initial written report to YMB regarding that Serious
Adverse Event via facsimile within 24 hours after ALLPHASE becomes aware of any
such event.

    

    3.3  Obligations of
YMB.

    

    3.3.1  YMB
shall procure and maintain all consents, approvals, licenses, and operating
certificates required to conduct the Study, including but not limited to, the
approval of the Protocol by TPD. YMB shall also develop, comply with, and
require staff to comply with, policies and procedures designed to assure, at all
times, that such consents, approvals, licenses, and operating certificates
remain in effect throughout the Term.

    

    3.3.2 YMB
shall provide ALLPHASE, at no expense to ALLPHASE (i) with all information and
documentation reasonably necessary for ALLPHASE to perform its duties hereunder,
including but not limited to; (ii) all Clinical Trial Materials; and (iii) with
all advice, guidance, and assistance reasonably requested by ALLPHASE to fulfill
its duties under this Agreement.

    

    3.3.3  YMB
will provide ALLPHASE with sufficient amounts of Test Materials to perform the
Services. Prior to or concurrent with delivery of Test Materials, YMB will
provide information pertaining to stability, proper storage, safety and other
characteristics and requirements of the Test Materials. YMB will be solely
responsible for providing ALLPHASE with the Test Materials in a manner that
complies with applicable laws, including but not limited to regulatory permits
or licenses to ship or test the Test Materials and/or labelling
requirements.

    

    3.3.4  YMB
shall have the right to visit and co-monitor a Study site or inspect and audit
any of the Study Documents maintained by ALLPHASE consistent with Laws
regulating the review of study data and information. All such visits and
inspections must be conducted during normal working hours on regular business
days with reasonable written notice and at mutually agreed upon times, unless
otherwise agreed. ALLPHASE shall arrange access to the Study site as soon as
reasonably practicable following notification by YMB.

    

    ARTICLE
IV

    PAYMENT FOR SERVICES
RENDERED

    

    4.1  YMB
agrees to pay to ALLPHASE for Services provided, and all expenses incurred by
ALLPHASE pursuant to this Agreement and properly executed Service
Documents.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.2  YMB
shall reimburse ALLPHASE for all reasonable airfare, hotel, and other travel
expenses incurred by ALLPHASE in its performance of the Services, including but
not limited to, expenses incurred by ALLPHASE in connection with site selection
visits, initiation visits, monitoring visits, and closeout visits and in
connection with attendance at Project Meetings and Investigators' Meetings. YMB
shall also reimburse ALLPHASE for all photocopying, courier, and other similar
expenses incurred by ALLPHASE in its performance of its duties under this
Agreement. Original receipts will not accompany pass-through invoices. All
original and pass-through receipts will be housed at ALLPHASE and will be
available for YMB's audit upon request. In the case where ALLPHASE anticipates
that travel expenses described in this Paragraph 4.2 may exceed the amount
budgeted for such expenses in Service Documents, ALLPHASE shall be responsible
for (i) notifying YMB that the travel expenses exceed the budget, and (ii)
receiving prior written approval from YMB prior to incurring any such excess
travel expenses. Any amounts approved by YMB in excess of those specified in
Service Documents, shall be separately invoiced to YMB and YMB shall pay these
invoices according to the terms of Paragraph 4.3 and 4.4 below.

    

    4.3  Unless
otherwise agreed by the Parties in writing, ALLPHASE shall provide to YMB one or
more appropriate invoices on a calendar month basis for Services rendered as set
forth in the respective Service Documents. Invoices are due and payable net
thirty (30) days of receipt, unless YMB notifies ALLPHASE of any disputes with
the invoiced amounts. All payments to ALLPHASE shall be made in U.S. dollars
unless otherwise agreed upon in writing by the parties. Invoice balances not
remitted within thirty (30) days of YMB's receipt of each invoice shall be
subject to a one and one-half percent (1.5%) per month interest charge. Should
any part of the invoice be in dispute, the YMB shall pay the balance of the
undisputed amount according to the terms and conditions described herein while
said dispute is being resolved.

    

    4.4  All
payment will be made payable to ALLPHASE Clinical Research Inc. and reference
GST # 88554 4213 RT0001. Payments shall be sent to the following
address:

    

    Attn.
Accounts Receivable

    Allphase
Clinical Research Inc.

    19
Camelot Drive

    Ottawa,
ON, K2G 5W6

    

    4.5  If
advances or other payments by YMB exceed the amount owed for work actually
performed under the Protocol and Service Documents, ALLPHASE agrees to return
the excess balance to YMB within thirty (30) days of the effective date of
termination or completion of Closeout Services by ALLPHASE.

    

    4.6  In
the event of a dispute regarding payment or the performance of Services pursuant
to this Agreement or a Service Document (each, a “Dispute”),the Parties shall
endeavour to negotiate in good faith an agreeable solution. If after ten (l0)
business days following receipt of a Party's written notification of a Dispute
such Dispute has not been resolved, the Dispute shall be brought to the
attention of the CEO of each Party and such CEO or his/her designee will
negotiate in good faith to define and implement a final resolution. The intent
of this Section 4.6 is to encourage the Parties to work together to resolve any
Dispute without having to rely on arbitration or any other legal proceeding.
However, nothing in this Section 4.6 shall prevent or inhibit either Party to
institute any other action to resolve such Dispute(s).

    

    Article
V

    MONITORING
OF SERVICES, RECORD STORAGE, AND AUDITS

    

    5.1  Monitoring of
Services. ALLPHASE will permit YMB representative to examine or audit
inspect ALLPHASE's premises in pre-announced visits at mutually agreed upon
times and normal business hours during the course of ALLPHASE's performance of
Service Documents hereunder. YMB may inspect the facilities, systems and
equipment at or with which the work is conducted, and personnel, procedures,
programming, experimental data, including source documents, notes, schedules,
written reports or other work product that pertains to Services and Results, and
quality assurance records.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    5.2  Regulatory
Audit.

    

    5.2.1
Each party acknowledges that the other party may respond independently to any
regulatory correspondence or inquiry in which such other party or its affiliates
is named. Each party, however, shall: a) notify the other party promptly of any
FDA or other governmental or regulatory inspection or inquiry concerning any
study or Project of YMB in which ALLPHASE is providing the Services, including,
but not limited to, inspections of investigational sites or laboratories; b)
forward to the other party copies of any correspondence from any regulatory or
governmental agency relating to such a study or Project, including, but not
limited to, FDA Form 483 notices, and FDA refusal to file, rejection or warning
letters, even if they do not specifically mention the other party; and, c)
obtain the written consent of the other party, which will not unreasonably be
withheld, before referring to the other party or any of its affiliates in any
regulatory correspondence. Where reasonably practicable, each party will be
given the opportunity to have a representative present during a FDA or
regulatory inspection. Each party, however, acknowledges that it may not direct
the manner in which the other party fulfills its obligations to permit
inspection by governmental entities or any other obligations imposed by
Law.

    

    5.2.2  Each
party agrees that, during an inspection by the FDA or other regulatory authority
concerning any study or Project of YMB in which ALLPHASE is providing the
Services, it will not disclose information and materials that are not required
to be disclosed to such agency, without the prior consent of the other party.
Such information and materials include, but are not limited to, the following:
a) financial data and pricing data (including, but not limited to, the budget
and payment sections of the Service Documents); b) sales data (other than
shipment data), and; c) personnel data (other than data as to qualification of
technical and professional persons performing functions subject to regulatory
requirements).

    

    5.2.3  If
FDA or other regulatory authority issues a written inspectional observation or
report of the facilities or general laboratory practices, that pertains to or
affects any part of a Services, ALLPHASE shall forthwith provide YMB with copy
of this written observation along with ALLPHASE’s response.

    

    5.3  Records. ALLPHASE
shall maintain books of account of the Services rendered and the cost and
reimbursable expenses in accordance with generally accepted accounting
principles. ALLPHASE shall make available to a third party, as selected by YMB
acting reasonably, such books and records for audit purposes upon the request of
YMB at reasonable times during this Agreement and for a period of two (2) years
thereafter. YMB shall be responsible for the costs and expenses of any third
party audit.

    

    5.4  Record
storage.

    

    5.4.1  During
the term of this Agreement, ALLPHASE shall maintain all materials and all other
data obtained or generated by ALLPHASE in the course of providing the Services
hereunder, including all computerized records and files, in a secure area
reasonably protected from fire, theft and destruction. All computerized records
and files shall be backed up in such a manner and frequency as to reasonably
protect against loss of information from computer viruses or other equipment
failure.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    5.4.2  ALLPHASE
agrees to notify YMB no less than thirty (30) days prior to destruction or
disposal of materials, records and data to enable YMB to determine whether it
requires further archival time. In the event YMB requires storage of records and
data beyond the minimum storage, ALLPHASE agrees to continue to store the data
until the Parties have agreed on storage or transfer of the data and reports to
YMB. Time shall be of the essence in respect to coming to an agreement on
further storage.

    

    Article
VI

    PRIVACY

    

    6.1  In
order to protect the confidentiality of personal information or personal health
information of subjects participating in a Project as defined in the Personal
Information Protection and Electronic Documents Act, Canada or as such
equivalent terms may be defined in the legislation pertaining to privacy of
personal information in a province that has enacted a law governing such
matters, the Parties agree as follows:

    

    (i)  to
use personal information or personal health information only as permitted by the
Subject in the consent form or as required or permitted by Law;

    (ii)  to
refrain from publishing Subject personal information or personal health
information in a form that could reasonably enable the Subject's identity to be
ascertained;

    (iii)  to
refrain from obtaining additional personal information or personal health
information from a Subject unless such Subject has provided
consent;

    (iv)  to
be liable for the actions of their respective employees and agents for the
collection, use or disclosure of personal Information or personal health
information and for ensuring compliance with the relevant legislation by such
persons.

    

    6.2  ALLPHASE
shall remove all Subject identifying information from any copies of data or
reports prior to providing copies of such to YMB. If Subject identifying
information or Subject identifying health information is transferred to YMB, its
employees or agents, YMB and its employees and agents shall not use or disclose
such information except with the knowledge and consent of the Subject, as set
out in the Subject informed consent form, or as required by law, regulation or
legal process.

    

    ARTICLE
VII

    INTELLECTUAL
PROPERTY

    

    7.1  YMB
shall own all documentation, records, raw data, samples and Results generated by
ALLPHASE in the performance of each Project under this Agreement and all
Clinical Trial Materials and Test Materials.

    

    7.2  ALLPHASE
agrees to promptly disclose any Intellectual Property arising out of Services,
which shall be the property of YMB. ALLPHASE agrees, and agrees on behalf of its
employees and agents to execute, acknowledge and deliver at YMB's expense and as
YMB may reasonably request all documents, including assignment documents, and to
perform such other actions to secure, verify or reflect such ownership or to
secure proprietary protection in the name of YMB for such inventions or
discoveries at YMB's expense and as YMB may reasonably request. YMB shall have
full power and authority to file and prosecute patent applications throughout
the world on such inventions or discoveries.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.3  The
Parties agree that Intellectual Property owned or possessed by each Party prior
to the Effective Date hereof, used in the course of a Project shall remain the
property of such Party. YMB acknowledges that ALLPHASE may develop methods of
operating, techniques, processes or procedures that are generally applicable to
providing contract clinical trial management services and unrelated to YMB's
Confidential Information. Accordingly, nothing in this Agreement shall preclude
ALLPHASE from utilizing such general knowledge in providing services as long as
such services do not constitute a breach of Confidentiality under Article VIII
of this Agreement.

    

    7.4  Except
as set forth herein, no Intellectual Property right, title or interest of a
Party is granted to the other Party hereunder.

    

    ARTICLE
VIII

    CONFIDENTIALITY

    

    8.1
ALLPHASE and YMB signed a Confidentiality Agreement for the purpose of
determining their interest in pursuing this Agreement. The Parties agree that
the terms of that confidentiality agreement shall apply up to the Effective Date
or this Agreement and shall be superceded by the terms of confidentiality
contained herein on and after the Effective Date. In the event of a conflict
between the terms of that confidentiality agreement and this Agreement, this
Agreement shall prevail.

    

    8.2  ALLPHASE
agrees that without the express written consent of the YMB, it will not directly
or indirectly, deal with, use, exploit or disclose Confidential Information of
YMB to any person or entity for any purpose except as described or permitted
herein or unless and until expressly authorized in writing to do so by
YMB.

    

    8.3  ALLPHASE
shall not disclose any Confidential Information to any subsidiaries, affiliates
and/or scientific consultants without the prior written consent of
YMB.

    

    8.4  ALLPHASE
may disclose the Confidential Information only to those employees and agents who
shall have a need to know the Confidential Information for the purpose of a
Project. Each party shall, prior to disclosing the Confidential Information or
portion thereof to such designated employees or agents issue appropriate
instructions to them to satisfy the obligations herein and obtain their written
agreement to receive and use the Confidential Information as confidential and
subject to non-disclosure on the same conditions as contained
herein.

    

    8.5  ALLPHASE
shall not reproduce the Confidential Information without the express written
permission of YMB, except for such copies as ALLPHASE may require pursuant to
this Agreement for internal purposes on a need-to-know basis.

    

    8.6  ALLPHASE
shall not be liable for disclosure of the Confidential Information or any
portion thereof upon the occurrence of one or more of the following
events:

    

    (i)
information of YMB which is now in the public domain or which subsequently
enters the public domain without fault on the part of ALLPHASE; or

    (ii) the
Confidential Information of YMB or any portion thereof is subsequently lawfully
obtained by ALLPHASE from a third party or parties without breach of this
Agreement by ALLPHASE as shown by documentation sufficient to establish the
third party as a source of the Confidential Information; or

    (iii)
information of YMB which is presently known by ALL-PHASE from its own sources
where said present knowledge can be demonstrated by written records sufficient
to establish such knowledge; or

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (iv)
information developed by or for ALLPHASE independent of disclosure hereunder as
evidenced by ALLPHASE's written records; or

    (v) YMB
has provided its prior written consent for such disclosure; or

    (vi)
information which is required to be disclosed by ALLPHASE as required by law
pursuant to an appropriate legal order by a court or government agency having
the authority to compel such disclosure; provided that ALLPHASE shall notify YMB
of the nature of the information to be disclosed notified prior to such
disclosure to enable YMB to seek, and where possible, reasonably cooperate with
the YMB to provide it with the opportunity to take appropriate legal action to
prevent or safeguard said information.

    

    8.7  The
Parties agree that the disclosure of the Confidential Information does not
oblige YMB to give or grant any commercial rights to ALLPHASE, other than as
specified herein.

    

    8.8  The
obligations of confidentiality shall survive the Term or earlier termination of
this Agreement for a period of seven (7) years.

    

    8.9  YMB
agrees not to use, or provide to, disclose to, or permit any third party to use
Confidential Information of ALLPHASE ("ALLPHASE Confidential Information"),
except as set forth in  exceptions (i) through (vi) set forth in
Section 8.6 herein. As used herein, ALLPHASE Confidential Information means
information relating to, without limitation, the conduct and financial aspects
of ALLPHASE 's business, data, trade secrets, know-how, inventions (whether or
not patentable), patent applications, analytical and bioanalytical methods,
manufacturing and clinical research, whether written, electronic, graphic, or
oral, as well as samples and specimens, furnished or disclosed by either party
directly or indirectly, or as the result of a site visit or audit, to
YMB.

    

    8.10  Each
Party shall, upon written request of the other Party, return all Confidential
Information and copies thereof or shall destroy such Confidential Information
and copies as directed by a party unless
required to retain certain of the Confidential Information or a copy thereof by
applicable Laws, regulation, or pursuant to this Agreement.

    

    8.11  ALLPHASE
and its Affiliates will not publish any articles or make any presentations
relating to the Services or referring to data, information or materials
generated as part of the Services, in whole or in part, without the prior
written consent of YMB. Each Party agrees that it shall not use the other
Party's name or disclose any matters relating to the Services provided hereunder
in any advertising, promotion, written articles or communications without the
prior written consent of the other Party.

    

    ARTICLE
IX

    INSURANCE AND
INDEMNIFICATION

    

    9.1  YMB
and ALLPHASE shall each maintain, at its sale cost and expense, insurance
coverage with a reputable insurer (which shall be either occurrence based or
claims made coverage) in an amount usual and customary for companies engaged in
activities as contemplated by this Agreement. All such insurance shall be in
place before the first patient is enrolled in the Study. Each shall designate
the other party as an additional named insured on all such policies, where
possible. The Parties will endeavour to advise the other Party in writing within
twenty-eight (28) days of its intention to cancel the policy.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    9.2  If
either party maintains it claims-made policy and this Agreement expires or
terminates for any reason, then that party shall either: 1) continue to maintain
the same or higher coverage with an insurance carrier for a period of two (2)
years thereafter; or 2) purchase "Tail Coverage" effective until the second
(2nd) anniversary date of the expiration or termination of this Agreement; or
3) obtain
and maintain "Prior Acts" coverage equivalent in time and coverage as the "Tail
Coverage" described herein.

    

    9.3  Upon
request by either party, the other party shall provide evidence of that party's
compliance with this Section 9.1 and/or 9.2.

    

    9.4  ALLPHASE
agrees to defend, indemnify, save and hold harmless YMB and its parent,
subsidiaries and affiliates and their respective directors, officers, employees
and agents (the "YMB Indemnities") from and against any third party claims,
demands, suits, actions, causes of action, losses, damages, fines and
liabilities, including reasonable legal fees and disbursements (the "Claims")
arising out of or in connection with or attributable to: (a) ALLPHASE's wilful
failure to comply with this Agreement, Work Order or Protocol and any amendments
thereto; (b) ALLPHASE's gross negligence or willful misconduct in performance of
the Services; (c) violations of applicable Laws, GLPs or GCPs; and/or (d)
ALLPHASE's submission of false or incorrect data and information to YMB; except
to the extent any of the Claims arise from the gross negligence or wilful
misconduct of YMB. ALLPHASE agrees to pay the reasonable costs and damages
arising from such Claims, after exhaustion of all reasonable appeals, provided
that YMB provides ALLPHASE with written notice of the Claims within five
business (5) days of the date YMB receives notice of the Claim and YMB provides
ALLPHASE with reasonable information and assistance required to defend the
Claim. ALLPHASE shall have the sale authority to defend and/or settle the Claim,
provided that ALLPHASE may not settle a Claim that includes an admission of
liability on the part of YMB without YMB's prior written consent.

    

    9.5  YMB
agrees to defend, indemnify, save and hold harmless ALLPHASE and its parent,
subsidiaries and affiliates and their respective directors, officers, employees
and agents (the "ALLPHASE Indemnities") from and against any Claims arising out
of or in connection with or attributable to: (a) the research (including the
ethical review of the Protocol and related materials), development, manufacture,
distribution, use, sale or other disposition of the Test Materials by YMB, or
any distributor, collaborator, customer, sublicense, representative or agent of
YMB; (b) an infringement of any third party's patent rights or unauthorized use
or misappropriation of its intellectual property pertaining to the Test
Materials; and/or (c) YMB's gross negligence or willful misconduct in connection
with this Agreement YMB agrees to pay the reasonable costs and damages arising
from such Claims, after exhaustion of all reasonable appeals, provided that
ALLPHASE has given YMB written notice of the Claims within five business (5)
days of the date ALLPHASE receives notice of the Claim, and ALLPHASE has
provided information and reasonable assistance required to defend the Claim. YMB
shall have the sole authority to defend and/or settle the claim, provided that
YMB may not settle a claim that includes all admission of liability on the part
of ALLPHASE without ALLPHASE's prior written consent.

    

    ARTICLE
X

    TERM AND
TERMINATION

    

    10.1  Unless
sooner terminated in a manner herein provided, this Agreement shall commence on
the Effective Date and, unless terminated pursuant to this Article 10, shall
continue until such time as the Services and Closeout Services have been
completed for each respective Service Document (hereinafter the "Term"). The
Parties may extend this Agreement by written mutual agreement as soon as
reasonably practicable prior to the expiration of the Term.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    10.2  This
Agreement and any corresponding Service Document then in effect may be
terminated by either Party as follows:

    

    (i)  by
YMB providing at least thirty (30) days written notice to ALLPHASE;
or

    (ii)  by
mutual written agreement by the Parties: or

    (iii)  by
either Party (the "Non-defaulting Party") giving the other Party (the
"Defaulting Party") thirty (30) days written notice of termination for Cause
where the defaulting Party has failed to correct the default or provide a
schedule acceptable to the other Party within five (5) business days of being
given notice of the default.

    

    10.3  Either
Party has the right to terminate this Agreement immediately upon written notice
to the other Party and without further liability hereunder, if a Party commits
an act of bankruptcy or if proceedings are taken against it for fraud, or
dishonest or serious misconduct in behaviour.

    

    10.4  In
the event of termination of any Service Document and/or this Agreement for any
reason, ALLPHASE agrees to use its commercially reasonable best efforts to limit
any further cost to YMB. ALLPHASE will cease performing any Services not
necessary for the orderly closeout of the affected Service Document or
fulfillment of Regulatory Requirements and ALLPHASE shall instruct its
subcontractors, if any, to do the same. Within thirty (30) days following the
effective date of termination, ALLPHASE shall deliver and cause subcontractors,
if any, to deliver all Confidential Information, Clinical Trial Materials, data,
Results, Study Documents, and Test Materials provided by YMB or generated under
this Agreement to YMB at no additional cost to YMB. Notwithstanding the
foregoing, ALPHASE shall retain and keep in custody any materials or data,
original or copy, for the purpose of compliance with Regulatory
Requirements.

    

    10.5  Upon
termination of this Agreement pursuant to Sections 10.2 or 10.3, YMB shall
continue to pay ALLPHASE the amounts set forth in Service Documents for all
reasonable costs actually incurred or irrevocably obligated for Services
rendered by ALLPHASE through to the effective date of termination and for the
Closeout Services furnished by ALLPHASE after the termination of this Agreement,
provided that in no event will the amount owed to ALLPHASE exceed the maximum
amounts specified in the Service Documents.

    

    ARTICLE
XI

    CORRESPONDENCE: AND
NOTICE

    

    11.1  Any
and all notices required or permitted to be given hereunder by either Party
hereunder shall be in writing and shall be deemed given on the date received if
delivered personally or received by facsimile transmission before 4:00 pm on a
business day in the jurisdiction of the recipient and otherwise on the next
business day, or by reputable overnight delivery service, or three (3) days
after the date postmarked if sent by registered or certified mail. return
receipt requested, postage prepaid to the following addresses:

    

    
      	
              If
      to YMB:

            	
              YM
      BioSciences Inc.

            
	 
      	
              5045
      Orbitor Drive, Building 11, Suite 400

            
	 
      	
              Mississauga,
      Ontario

            
	 
      	
              Canada  L4W
      4Y4

            

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	 
      	
              Attn.
      David Allan

            
	 
      	
              Phone:
      (905) 629-9761

            
	 
      	
              Fax:
      (905) 629-4959

            
	 
      	 
      
	
              If
      to ALLPHASE:

            	
              Allphase
      Clinical Research Inc.

            
	 
      	
              19
      Camelot Drive

            
	 
      	
              Ottawa,
      Ontario

            
	 
      	
              K2G
      5W6

            
	 
      	 
      
	 
      	
              Attn.
      Jeff Smith

            
	 
      	
              Phone:
      (613) 228-1990

            
	 
      	
              Fax:
      (613) 228-8493

            

    

    

    11.2 All
communications and notices related to a Service Document shall be addressed to
the appropriate individual for each Party as set forth in such Service
Document.

    

    ARTICLE
XII

    MISCELLANEOUS

    

    12.1  Waiver. No waiver by
any Party hereto of any condition, or of the breach of any provision, term,
covenant, representation, or warranty contained in this Agreement or a Service
Document, whether by conduct or otherwise, in anyone or more instances, shall be
deemed to be or construed as a further or continuing waiver of any such
condition or of the breach of any other provision, term, covenant,
representation or warranty of this Agreement or Service Document.

    

    12.2  Severability.
Whenever possible, it is the intention of the Parties that each provision of
this Agreement and related documents shall be interpreted so as to be effective
and valid under applicable Laws. In the event any provision of this Agreement,
or a Work Order or Change Order is prohibited by or invalid under applicable
Laws, such provision shall be ineffective only to the extent of such prohibition
or invalidity without invalidating the remainder of such provision or the
remaining provisions of this Agreement or such related document.

    

    12.3  Cooperation. Each
Party will execute and deliver all such instruments and perform all such other
acts as the other Party may reasonably request to carry out the transactions
contemplated by this Agreement.

    

    12.4  The
Parties agree that during the Term of this Agreement and for a period of six (6)
months thereafter, neither Party shall directly nor indirectly solicit for
employment, or otherwise retain, employees of the other Party whom the Parties
have met as a result of the performance of services under this
Agreement.

    

    12.5  Force Majeure. No
Party shall be in default hereunder by reason of its delay in the performance of
or failure to perform any of its obligations hereunder if such delay or failure
is caused by strikes, acts of God or the public enemy, terrorism or threats of
terrorism, riots, incendiaries, weather, interference by civil or military
authorities, compliance with governmental laws, rules, and regulations, delays
in transit or delivery, or any fault beyond its control or without its fault or
negligence.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    12.6  Headings. All
headings herein are for convenience only and shall not be construed as a
limitation or the scope of the particular sections to which they
refer.

    

    12.7  Entire Agreement
Modification. This Agreement, together with the Work Orders, Change
Orders if any, and Protocols, constitute the entire agreement and understanding
between the Parties, superseding any and all previous statements, negotiations,
documents agreements and understandings, whether oral or written. No
modification or waiver of the provisions of this Agreement shall be valid or
binding on either Party unless in writing and signed by both Parties. This
Agreement and any Protocol or Work Order executed pursuant to this Agreement
shall not be waived, released, discharged, changed or modified in any manner
except by an instrument signed by the authorized representatives of each
Parties, which instrument shall make specific reference to this Agreement or the
applicable Protocol or Work Order and shall clearly state the plan or intention
to modify same.

    

    12.8  Assignment - Neither
ALLPHASE nor YMB shall assign its rights under this Agreement without the prior
written consent of the other Party, such consent not to be unreasonably
withheld; provided, however, the Parties
may transfer or assign its rights and obligations under this Agreement to a
successor to all or substantially all of its business or assets relating to this
Agreement whether by sale, merger, operation of law or otherwise. Subject to the
restrictions on transfers, assignments and encumbrances set forth herein, this
Agreement shall inure to the benefit of and be binding upon the undersigned
Parties and their respective legal successors.

    

    12.9  Surviving Provisions
- The Parties agree that the following provisions will survive the Agreement;
the definitions contained herein to the extent such definitions pertain to terms
in surviving provisions, Articles VII, VII, XI, XII in their entirety and
Sections 3.1, 3.2.8, 5.3, 5.4, 9.4, 9.5.

    

    12.10  Governing Law - This
Agreement shall be governed by and construed in accordance with the laws of the
Province of Ontario without regard to any conflicts of law provisions. The
Parties agree that the exclusive place of jurisdiction for any suit will be in
the courts of the Province of Ontario.

    

    12.11  French/English
Language - The parties to this Agreement have agreed that this Agreement
and all related documents shall be drafted in the English language only. Les
parties ont convenu que cette convention ainsi que tout document y afférent
soient rédigés en anglais seulement.

    

    IN WITNESS WHEREOF, the
Parties have caused this Agreement to be executed by their duly authorized
officers.

    

    
      
        	
                ALLPHASE
      CLINICAL RESEARCH INC.

              	 
      	
                YM
      BIOSCIENCES INC

              
	
                By:

              	 
      	
                By:

              
	
                Name:
      Jess Smith

              	 
      	
                Name:
      David Allan

              
	
                Title:
      President

              	 
      	
                Title:
      Chairman and CEO

              
	
                Date:
      22 MAY 2007

              	
                  

              	
                Date:
      16 MAY 2007(1)
CIMYM, Inc.

     

    (2)
CIMAB S.A.

     

    And

     

    (3)
Kuhnil Pharmaceuticals Co., Ltd.

     

    Amended
and Restated Development and License Agreement

    Relating
to TheraCIM h-R3

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Development
and License Agreement

     

    This Amended and Restated
Development and License Agreement dated as of the 30th day of August, 2005 is made between:

    

    (1)     CIMYM,
Inc. (company registration
number 12142) ("CIMYM"), a company incorporated in Canada, whose principal place of
business is at 5045 Orbitor Drive, Building II, Suite 400 Mississauga, Ontario L4W 4Y4; and

    

    (2)     CIMAB
S.A. (company registration
number 107/92) ("CIMAB"), a company incorporated
in Cuba, whose principal place of business is at
206 Street, No. 1926, e/
I9 y 21, Atabey,
Playa, Havana City, Cuba;
and

    

    (3)      Kuhnil
Pharmaceuticals Co., Ltd. (company registration number
3128106060) ("Kuhnil") a company incorporated in Korea, whose principal place of business is
at 237-12 Gongdeok-dong,
Mapo-gu, Seoul, Korea (121-803).

     

    Recitals:

    

    A.  CIMYM is the exclusive licensee of certain
Licensed Patent Rights and certain Licensed Know-how and other rights relating to
marketing and selling Licensed Product (as defined below) in the Territory (as defined
below).

    

    B.  The shareholders of CIMYM are YM BioSciences, Inc. and CIMAB.

    

    C.  CIMAB enters into commercial agreements on behalf of the
Center of Molecular Immunology ("CIM", as defined below).
CIM originally developed ThereCIM h-R3 and has the facilities to manufacture
Licensed Product. CIMAB is entering into this Agreement principally in order
to assume the manufacturing
and supply obligations set out in Clause 5.

    

    D.  Kuhnil wishes to pursue the further
development and commercialisation of TheraCIM h-R3 for the treatment of cancer
in humans, in accordance with the provisions of this
Agreement.

     

    E.  Kuhnil has demonstrated evidence of economic
and financial solvency sufficient to assume the product development and conduct clinical
trials of Licensed Product in the Territory.

     

    F.  CIMYM, CIMAB and Kuhnil entered into a
Development and License Agreement dated as of May 25, 2005 whereby CIMYM
granted to Kuhnil a license within the Kuhnil Field and under the Licensed
Patent Rights and the Licensed Know-how to develop, use and sell the Licensed
Product (the “Original
Agreement”).

     

    G. The Parties have agreed to
enter into this Amended and
Restated Development and License Agreement, which amends and restates the
Original Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    It is agreed as
follows:

     

    1  Definitions

     

    In this Agreement, the following words
shall have the following meanings:

     

    
      
        
          
            
              
                
                  
                    	
                            Affiliate

                          	 	
                            In relation to CIMYM or Kuhnil, means any entity or person that
      controls, is controlled by, or is under
      common control with
      that Party. For the purposes of this definition, "control" shall mean
      direct or indirect beneficial ownership of 50% (or, outside a Party's
      home territory, such
      lesser percentage as is the maximum, permitted level of foreign
      investment) or more of the share capital, stock or other participating
      interest carrying the right to vote or to distribution of profits of that
      entity or person, as the case may
  be.

                          
	 
      	 	 
      
	
                            Agreement

                          	 	
                            This Amended and Restated
      Development and License Agreement.

                          
	 
      	 	 
      
	
                            Arising Intellectual
      Property

                          	 	
                            Any and all of the Arising Patents
      and the Arising Know-how.

                          
	 
      	 	 
      
	
                            Arising
      Know-how

                          	 	
                            Technical, commercial and all
      other information
      generated by
      Kuhnil or its Affiliates under this Agreement that relates
      to any of the Licensed Intellectual Property or the Licensed Product, including any scientific or
      regulatory data (including clinical trial data generated by Kuhnil), product license
      applications and
      approvals, clinical trial license applications and approvals, and
      development and marketing plans and activities.

                          
	 
      	 	 
      
	
                            Arising
    Patents

                          	 	
                            Any and all patents and patent
      applications that may be applied for or obtained in respect of any
      invention(s) made by
      Kuhnil or its Affiliates under this Agreement and which
      relate to any Licensed Intel1ectual Property or the Licensed Product,
      together with any continuations, continuations in part, extensions,
      reissues, divisions, and any patents, supplementary protection certificates and similar
      rights that are based on or derive priority from the
      foregoing.

                          
	 
      	 	 
      
	
                            Calendar
      Quarter

                          	 	
                            Each three-month period ending on
      31st
      March, 30th June, 30th September and 31st
  December.

                          
	 
      	 	 
      
	
                            Calendar
    Year

                          	 	
                            A year commencing on 1st January and ending on 31st December (but commencing on the
      Commencement Date in the first year of this Agreement and, in the final
      year of this Agreement, ending on the date of the last sale of Licensed
      Product under this Agreement).

                          
	 
      	 	 
      
	
                            CIM

                          	 	
                            The Center of Molecular Immunology, a scientific
      research institute based in Havana, Cuba.

                          
	 	 	 
	

                            CIMAB’s
      Contract Manufacturer

                          	 	

                            Any
      Person that may from time to time be contracted by CIMAB to manufacture
      the Licensed Product, or any component or ingredient thereof in
      accordance
      with the provisions of this
  Agreement.

                          

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  
                    	
                            CIMYM Field and
      Territory

                          	 	
                            (a) outside the Territory, all
      fields (including the Field); and

                          
	 	 	 
	 	 	

                            (b)
      within the Territory, all fields other than the
      Field.

                          
	 
      	 	 
      
	
                            Claims

                          	 	
                            All demands, claims and liability
      (whether criminal or
      civil, in contract, tort or otherwise) for losses, damages, legal costs
      and other expenses of any nature whatsoever and all costs and expenses
      (including without limitation reasonable attorneys fees) incurred in
      connection therewith.

                          
	 
      	 	 
      
	
                            Commencement Date

                          	 	
                            The date of execution of this
      Agreement by the Parties (or, if they sign on different dates, the last
      date of signature of this Agreement by a Party).

                          
	 
      	 	 
      
	
                            Confidential Information

                          	 	
                            Means any and all trade secrets,
      technical and non technical and information owned by one of the
      Parties, or by any Affiliates of one of the Parties. Confidential
      Information includes, without limitation, all inventions, discoveries,
      processes, materials, formulae, clinical development plans, data, ideas,
      financial information, legal, corporate, marketing,
      product, research, personnel, customer, supplier and other non-public
      information, in whatever form or media, specifically identified as
      confidential prior to or at the time of its disclosure or disclosed orally
      and confirmed in writing as confidential
      within thirty (30) days of such oral disclosure.

                          
	 
      	 	 
      
	
                            Delivered
    Items

                          	 	
                            Has the meaning given in Clause
      4.2.

                          
	 
      	 	 
      
	
                            Development and
      Commercialisation
      Plan

                          	 	
                            Has the meaning given in Clause
      3.1.

                          
	 
      	 	 
      
	
                            Development and
      Commercialisation Plan Report

                          	 	
                            The report described in Clause 3.4
      as amended from time to time.

                          
	 
      	 	 
      
	
                            Development Team
      Parties

                          	 	
                            CIMYM and Kuhnil, and "Development Team Party"
      shall mean either of them.

                          
	 
      	 	 
      
	
                            Development
      Term

                          	 	
                            Means the period from the
      Commencement Date until completion of TheraCIM h-R3 to the point of first commercial
      sale of a Licensed Product in the Territory in accordance with the
      Development and Commercialisation Plan.

                          
	 
      	 	 
      
	
                            Diligent and Reasonable
      Efforts

                          	 	
                            Exerting such efforts and
      employing such resources (whether by itself or through
      sub-contractors or sub-licensees) as would normal1y be exerted or employed
      by a reasonable Third Party pharmaceutical company for a product of
      similar market potential at a similar stage of its product life, when
      utilizing sound and reasonable scientific, business
      and medical practice and judgment in order to develop the product in a
      timely manner and maximize the economic return from its
      commercialisation.

                          

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            	
                    Kuhnil Field and
      Territory

                  	 	
                    In respect of any activity that is
      licensed to Kuhnil under this Agreement, shall mean
      that the activity must occur both within the Field and within the
      Territory.

                  
	 
      	 	 
      
	
                    Field

                  	 	
                    The treatment of cancer in humans
      which for greater certainty excludes diagnostic or vaccine
      technology.

                  
	 
      	 	 
      
	
                    Gross Sales
      Value

                  	 	
                    Shall mean the medical
      reimbursement price for Licensed Product, first reduced by 5% for the
      wholesaler's margin and then divided by 1.1 to account for the Value Added
      Tax. The amount invoiced and received for the sale of the
      Licensed Product when sold by Kuhnil or any of its Affiliates or any of
      their respective distributors to the ultimate purchaser in an arm's
      length transaction exclusively for money (or where the sale is not at
      arm's length, the price that would have been so invoiced
      and received if it
      had been at
      arm's
      length); provided that sales between any of
      Kuhnil and its Affiliates shall not be considered for the purposes
      of this definition unless there is no subsequent sale to a Person
      other than Kuhnil and its Affiliates in an arm's length transaction exclusively for
      money.

                     

                  
	 
      	 	 
      
	
                    Initial Development
      Program

                  	 	
                    A program of development to be conducted by
      Kuhnil in accordance
      with the provisions of the attached Schedule 3 Part
    A.

                  
	 
      	 	 
      
	
                    Joint Development
      Team

                  	 	
                    A committee to be established, and
      operating, in
      accordance with the provisions of Clause 2.

                  
	 
      	 	 
      
	
                    Know-how

                  	 	
                    The Licensed Know-how and the
      Arising Know-how.

                  
	 
      	 	 
      
	
                    Licensed Intellectual
      Property

                  	 	
                    Any and all of the Licensed Patent
      Rights and the Licensed Know-how.

                  
	 
      	 	 
      
	
                    Licensed
      Know-how

                  	 	
                    Technical and
      scientific
      information in the possession of CIMYM or CIMAB in the Field relating to (a) TheraCIM
      h-R3 and/or (b) the
      inventions claimed in the Licensed Patent Rights, including the
      information further described in the attached Schedule 2, in each case to
      the extent that such
      information is relevant, related to, derived from or useful for the
      clinical development, registration, commercialisation, storage, use or
      sale of Licensed Product within the Field and Territory. Licensed Know-how
      specifically excludes all technology, materials, and information
      related to the manufacture of Licensed Product.

                  
	 
      	 	 
      
	
                    Licensed Patent
      Rights

                  	 	
                    The patents and patent
      applications described in the attached Schedule 1 subject to the
      provisions of Schedule 1, together with any continuations, continuations in part, extensions,
      reissues, divisions, and any patents, supplementary protection
      certificates and
      similar rights that are based on or derive priority from the
      foregoing.

                  

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Licensed Product

                              	 	
                                TheraCIM
      h-R3 that is sold or otherwise supplied by
      Kuhnil or its Affiliates
      and which (a) is within any Valid Claim of the Licensed Patent
      Rights and/or
      (b) is the subject of any Orphan Drug Status in the
      Territory; and/or
      (c) incorporates, or its development makes use of,
      any of the Licensed Know-how.

                              
	 
      	 	 
      
	
                                Milestone
      Receipts

                              	 	
                                The
      amount of any payment, excluding Value Added Tax, due to CIMYM from
      Kuhnil as
      described in Clause 7.2.

                              
	 
      	 	 
      
	
                                Orphan
      Drug Status

                              	 	
                                Refers
      to the process of obtaining Orphan Drug Status in the from the
      Korea
      drug regulatory authority.
      This generally requires that:

                              
	 	 	 
	 	 	a)
      Number of patients in Korea is less than 20,000
	 	 	 
	 	 	

                                b)
      There is no alternative drug in Korea

                              
	 	 	 
	 	 	

                                c)
      The total value of import into Korea is less than US$1,000,000

                              
	 
      	 	 
      
	
                                Parties

                              	 	
                                CIMYM,
      CIMAB and
      Kuhnil,
      and "Party" shall mean any
      of them.

                              
	 
      	 	 
      
	
                                Person

                              	 	
                                Includes
      any individual, firm, company, corporation or other legal
      entity.

                              
	 
      	 	 
      
	
                                Patents

                              	 	
                                Any
      and all of the Licensed Patent Rights and the Arising
      Patents.

                              
	 
      	 	 
      
	
                                Providing
      Parties

                              	 	
                                Both
      of CIMAB (whether on its own behalf or on behalf of CIM)
      and CIMYM, and "Providing Party" shall mean either of
      them.

                              
	 
      	 	 
      
	
                                Regulatory
      Application

                              	 	
                                Any
      and all applications that are necessary and appropriate to obtain a
      Regulatory Approval including, without limitation, all required documents,
      data and information
      concerning, filed or required to be filed, otherwise submitted by
      Kuhnil or
      its Affiliates to a Regulatory Authority.

                              
	 
      	 	 
      
	
                                Regulatory
      Approval

                              	 	
                                Any
      and all approvals, licenses, registrations or authorisations of any
      Regulatory Authority that are necessary for
      the manufacture, use, storage, import, export, transport, marketing,
      distribution or sale of the Licensed Product in any part of the
      Territory.

                              
	 
      	 	 
      
	
                                Regulatory
      Authority

                              	 	
                                The
      Korean Food
      and Drug Administration.

                              
	 
      	 	 
      
	
                                Supply
      Agreement

                              	 	
                                Any
      agreement between
      CIMAB and
      Kuhnil under
      which CIMAB agrees to manufacture and supply Kuhnil with
      Licensed
Product.

                              

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        
          	
                  Territory

                	 	
                  Shall mean Korea.

                
	 
      	 	 
      
	
                  TheraCIM
    h-R3

                	 	
                  A humanised antibody to the EGF
      receptor, known scientifically as h-R3 and which has been given the INN
      "nimotuzumab".

                
	 
      	 	 
      
	
                  Third Party

                	 	
                  A Person other than one of the
      Parties.

                
	 
      	 	 
      
	
                  Valid Claim

                	 	
                  A claim of a patent or patent
      application that has not expired or been held invalid or unenforceable by
      a court of competent jurisdiction in a final and non-appealable
      judgment.

                

        

      

    

     

    2  Joint Development
Team

    

    2.1  Formation. Within fifteen (15) days after the Commencement Date, the
Development Team Parties shall establish a Joint
Development Team, by each Development Team Party designating its initial members to serve
on the Joint Development
Team and notifying the other Development Team Party of its
dates of availability for the first meeting of the Joint Development Team. The purpose of the
Joint Development Team shall be to oversee the development of Licensed Product for
purposes of
commercialisation in the Kuhnil Field and Territory. The Joint Development Team shall
consist of not more than three (3) representatives designated by each
Development Team Party. Each representative shall have relevant and appropriate expertise
in order to oversee the
development of the Licensed Product. If a representative of a
Development Team Party is unable to attend a meeting of the Joint Development Team, such Development
Team Party may designate an alternate to attend such meeting. In addition, each Development Team Party may,
at its discretion, invite a reasonable number of other employees,
consultants or scientific advisors to attend the meetings of the Joint Development Team,
provided that such invitees are bound by appropriate confidentiality obligations. Each Development
Team Party may change one or all of its representatives to the Joint
Development Team at any time upon notice to the other Development Team
Party.

    

    2.2  Meetings. The Joint Development Team shall meet
every six months in person
or by teleconference and at such other times
as the Parties may agree. The first meeting of the Joint Development Team shall be held as soon
as reasonably practicable, but in no event later than 60 days after the Commencement Date.
Meetings shall be held at
such place or places as are mutually agreed or by teleconference or
videoconference; provided,
however, that there shall be at least one face-to-face meeting per
calendar
year.

    

    2.3  Responsibilities. The Joint Development Team
shall:

    

    (a) Elaborate the Development and
Commercialisation Plan in accordance with Clause 3.1

    

    (b) review and unanimously approve (or,
if the members of the Joint Development Team are unable to reach unanimous agreement,
recommend to the Parties)
the overall development
strategy for Licensed
Product in the Kuhnil Field and Territory
(including, without limitation, setting criteria for
progression of Licensed
Product to the next stage
of development under the Development and Commercialisation
Plan);

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c) review and recommend to the Parties modifications to the
Development and Commercialisation Plan (including the
resources to be allocated and the timelines contained in the Development and
Commercialisation Plan);

    

    (d) facilitate the transfer of Know-How
and other information between the Parties for purposes of conducting the Development
and Commercialisation Plan;

    

    (e) regularly assess the progress of
Kuhnil in its conduct of the Development
and Commercialisation Plan;
and

    

    (f) perform such other activities as are
contemplated under this Clause 2. For the
avoidance of doubt the
Joint Development Team
shall not have any role or responsibility in relation to
determining whether
Kuhnil has complied with its obligations to CIMYM under this
Agreement.

    

    2.4  Disputes. If agreement cannot be reached within the Joint
Development Team, Kuhnil shall have the right to make the final
determination concerning the resolution of the disagreement. Notwithstanding the foregoing, in the
case of a material disagreement, prior to invoking its rights under this Clause 2.4, Kuhnil agrees to have its chief executive
contact the chief executive of CIMYM for the purpose of
discussing the disagreement and attempting to reach a consensus. It shall be the goal of the
chief executives to reach a consensus within five (5) days of the date on which contact is
initiated by the chief
executive of Kuhnil, it
being understood that (i) in the event of an
extraordinary circumstance requiring a faster resolution (e.g., a safety issue or extraneous timing issue),
Kuhnil shall have the right to make the
final determination prior to the end of such
five (5) day period if a consensus has not been reached by the required time for resolution and
(ii) in the event that a consensus has not been reached within ten (10) days of the date on which contact is initiated
by the chief executive officer of Kuhnil, Kuhnil shall have the right to make the final
determination. For the avoidance of doubt, Kuhnil shall not have any right, under this
clause, to determine whether it has complied with its obligations to CIMYM under this
Agreement.

    

    3  Development and
Commercialisation

    

    3.1  Development and
Commercialisation Plan.

    

    3.1.1  Within 90 days of the Commencement Date,
the Joint Development Team
shall prepare a written plan ("Development and Commercialisation Plan") that expands upon
the initial development plan sec out in Schedule 3
and will describe, and provide a time line for:

    

    (a)   all development activities for the
Licensed Product in the Kuhnil Field and Territory, addressing each phase of development and the budget for
completion of such activities, and providing detailed
information on the activities to be conducted in the next 12-month
period.

    

    (b)   intellectual property protection
strategy, including applying for Orphan Drug Status,

    patents and supplementary protection
certificates;

     

    (c)   clinical and registration strategy, with
a view to expediting Regulatory Approval; and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (d) commercialisation
strategy.

    

    The Joint Development Team shall update
the Development and
Commercialisation Plan on
a regular basis and at
least annually.

    

    3.2  Development and
Commercialisation Activities. Kuhnil shall be responsible for the development and commercialisation (in
accordance with the
Development and Commercialisation Plan) of the Licensed
Product in the Kuhnil Field and Territory. Such development and commercialisation shall
be carried out under the
oversight and management of
the Joint Development Team and in accordance with the provisions of this
Agreement.

    

    3.3  Development and
Commercialisation
Costs. Kuhnil shall bear all costs associated with
the development and commercialisation of
Licensed Product in the Kuhnil Field and Territory, including costs incurred in the
preparation and execution of the Development and Commercialisation Plan. If any Providing Party agrees with
Kuhnil to conduct work as part of the Development and Commercialisation
Plan (which may include advice given to the Joint Development Team), the Providing Party's
costs of conducting such
work shall be borne by Kuhnil, with the time costs of the Providing
Party's representatives
being charged to Kuhnil on a daily rate basis. The Providing Party's
daily rate for its representatives' work referred to in
the previous sentence shall
be agreed between the Providing Party and Kuhnil or, if they are unable to agree, the rate shall be
$1,000 (one
thousand US dollars) per
day plus any reasonable
out-of-pocket expenses and external costs associated with such
work.

    

    3.4  Reporting. Without prejudice to the generality of
Kuhnil 's obligations under Clauses 8.1
and 9.2, Kuhnil shall provide a report ("Development
and Commercialisation Report") to CIMYM at least once per annum. In addition,
Kuhnil shall provide to CIMYM a quarterly,
written status update on all clinical, development and
commercial activities being
undertaken, and from time to time upon request, showing all past, current and projected
activities taken or to be taken by Kuhnil to bring Licensed Product to market and
maximise the sale of Licensed Product in the Kuhnil Field and Territory, and including details of
all Arising Intellectual Property. CIMYM's receipt or approval or
non-approval of any such report shall not be taken to waive or qualify Kuhnil 's obligations under Clause 8.1 or
otherwise under this Agreement.

    

    3.5  Exchange of
Data. It is CIMYM's intention to grant
sub-licenses to commercialise TheraCIM h-R3 in the CIMYM Field and
Territory. Accordingly, each of the Parties, or CIMYM's sub-licensee(s), may generate
data in relation to TheraCIM h-R3 or Licensed Products that is useful to the other Parties
in connection with their development or commercialisation of Licensed Products.
To facilitate such commercialisation, Kuhnil shall disclose and provide to CIMYM and
CIMAB all Arising Intellectual Property, technical and clinical trial information (including case report
forms and
source documentation) and all notices and other
correspondence between Kuhnil and its Affiliates and any Regulatory Authority
on a quarterly basis in accordance with the provisions of Clause 3.4. CIMYM and Kuhnil shall use reasonable
efforts to reach agreement with CIMYM's other
sub-licensee(s) of TheraCIM h-R3 for the disclosure to Kuhnil of clinical data in respect of
TheraCIM h-R3 that is generated by such sub-licensee(s).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4  Know-how and Confidential
Information

    

    4.1  Provision of
Know-how. Upon Kuhnil 's reasonable written request, CIMYM shall supply Kuhnil with all Licensed Know-how in its
possession that is relevant
to the development and commercialisation of TheraCIM h-R3 within the Kuhnil Field and Territory. The Licensed
Know-how shall be subject
to the confidentiality provisions of Clause
4.4.

    

    4.2  Status of
Know-how. Kuhnil acknowledges that the Licensed Know-how
is subject to further development. Accordingly, specific
results cannot be
guaranteed and any results,
materials, information or
other items, including the Licensed Know-how and inventions claimed in the Licensed Patent Rights (together “Delivered Items”) to be provided under this Agreement are
provided “as is” and without any express or implied warranties, representations or
undertakings. As examples,
but without limiting the foregoing, CIMYM does not give any warranty that Delivered Items are of merchantable
or satisfactory quality, are fit for any
particular purpose,
comply with any sample or
description, or are viable,
uncontaminated, safe or
non-toxic.

    

    4.3  Use of
Know-how. Kuhnil agrees, not to use the Know-how for any purpose
except as expressly licensed hereby and strictly in
accordance with the provisions of this Agreement.

    

    4.4  Confidentiality
Obligations. Each Party
(“Receiving
Party”)
undertakes:

    

    (a)  to maintain as secret and confidential
all Know-how and other
Confidential Information
obtained directly or indirectly from the other Party (“Disclosing Party”) in the course of or in anticipation of this
Agreement and to respect
the Disclosing Party's
rights therein,

    

    (b)  to use the same exclusively for the
purposes of this Agreement, and

    

    (c) subject to the provisions of Clause 4.7,
to disclose the same only
to those of its
employees, contractors and
sub-licensees pursuant to
this Agreement (if any) to whom and to the extent that such
disclosure is reasonably
necessary for the purposes of this Agreement.

    

    4.5  Exceptions to
Obligations. The provisions
of Clause 4.4 shall not apply to Know-how and
Confidential Information
which the Receiving Party can demonstrate:

    

    (a) was, prior to its receipt by the
Receiving Party from the
Disclosing Party, in the possession of the Receiving Party and at
its free disposal; or

    

    (b) is subsequently disclosed to the
Receiving Party without any
obligations of confidentiality by a Third Party who was
not under a duty of
confidentiality and did not
derive it directly or indirectly from the Disclosing Party;
or

    

    (c) is or becomes generally available to the public through no act
or default of the Receiving Party or its agents,
employees, Affiliates or sub-licensees.

    

    4.6  Disclosure to Court,
etc. If the Receiving Party
is required to disclose
Know-how or other Confidential Information to
the courts of any competent
jurisdiction, or to any government regulatory agency or financial
authority, such disclosure shall not be a breach of Clause 4.4, provided that the Receiving Party shall
(i) inform the Disclosing Party as soon as is reasonably practicable and shall only disclose
Confidential Information to the extent so required, and (ii) allow the Disclosing Party to seek to
persuade the court, agency or authority to have the information
treated in a confidential manner, where this is possible under the court, agency or authority's
procedures.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.7  Disclosure to
Employees. The Receiving
Party shall ensure that all of its employees, contractors, consultants, advisers and
sub-licensees pursuant to this Agreement (if any) who have access to any of the Disclosing Party's Know-how or other
Confidential Information to which Clause 4.4 applies, shall be made
aware of and subject to these obligations and shall have entered into written undertakings
of confidentiality at least as restrictive as Clauses 4.4 and 4.5.

    

    4.8  Ownership of
Confidential
Information

    

    All Confidential Information disclosed
by the Disclosing Party
shall, as between the Parties, remain the sole and exclusive property
of the Disclosing Party including without  limitation:

    

    (a)  all ideas, concepts, information, trade secrets,
know-how, business strategies and methods relating to the Confidential
Information;

    

    (b) all physical material containing,
bearing, or embodying any
Confidential Information in human or machine readable
form, including, without limitation, all documents, agreements, diagrams, charts, graphs,
computer programs, computer diskettes, and computer files; and

    

    (c)  all proprietary and intellectual
property rights in the Confidential Information, regardless of whether these
items were created,
generated, developed, produced or prepared by or on behalf of the
Disclosing Party, and regardless of whether these items came into being before or after
the date hereof.

    

    4.9  Return of
Confidential Information

    

    Upon the request of a Party, the other Party will promptly
return to such Party, or at
such Party's election,
destroy all Confidential Information in its possession or in the possession of its representatives. Such
Party shall use reasonable efforts to cause its representatives and any other Party acting under its
direction or control to return all materials containing Confidential
Information, including all copies, notes, summaries and outlines.

    

    5  Manufacturing and
Supply

    

    5.1  Clinical Supply. CIMAB shall
supply to Kuhnil and its Affiliates, and Kuhnil shall purchase from CIMAB for
its own use and that of its Affiliates, in finished form with one hundred
percent (100%) of Kuhnil's unit requirements of TheraCIM h-R3 and Licensed
Product for all clinical development purposes. Such clinical requirements shall
be supplied to Kuhnil under the Supply Agreement as more fully described in
Clause 5.4. The Parties confirm that cost of TheraCIM h-R3 to be supplied under
this Agreement for clinical development will be paid through the royalty
payments to be paid pursuant to Clause 7.3 of this Agreement.

    

    5.2  Commercial Supply. CIMAB
shall supply to Kuhnil, and Kuhnil shall purchase from CIMAB in finished form
one hundred percent (100%) of Kuhnil's unit requirements of Licensed Products
for all commercial purposes. CIMAB may elect to have such requirements supplied
to Kuhnil by one or more of CIMAB's Contract Manufacturer(s). Kuhnil's quantity
requirements shall include those of its Affiliates.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.3  Specifications. CIMAB
undertakes that all Licensed Product supplied to Kuhnil will be manufactured in
accordance with mutually agreed upon specifications (inclusive of specifications
in an approved Marketing Authorization) and Good Manufacturing Practices of the
European Medicines Agency and the relevant Regulatory Authorities, and the
relevant regulatory authorities in the countries of manufacture of the Licensed
Product, and will not be adulterated or misbranded under applicable laws,
regulations or guidelines, and that the manufacturer will have in force all
necessary Regulatory Approvals for the manufacture of Licensed Product in
accordance with such specifications for the purposes of supply and use of
Licensed Products in all countries of the Territory, and will be in good
standing with all Regulatory Authorities.

    

    5.4  Supply Agreement. Licensed
Product supplied by CIMAB or CIMAB's Contract Manufacturer(s) to Kuhnil for clinical and
commercial purposes shall be supplied to KUHNIL pursuant to the terms of
separate Supply Agreements. Kuhnil and CIMAB shall use good
faith efforts to negotiate and enter into such supply agreements for commercial
purposes, at least six (6) months prior to the submission of a Regulatory
Application for the Licensed Product in the Territory. The Supply Agreements
shall contain forecast procedures, permitted variances from forecasted amounts,
order and delivery times, quality control and quality assurance procedures,
audits, yield ratios, maintenance of inventory, procedures and remedies for
rejection of non-conforming product, record retention, compliance with laws, and
other customary provisions. The terms of the Supply Agreements shall be
consistent with the provisions of this Clause 5, unless otherwise agreed in
writing by CIMAB, CIMYM and Kuhnil. Kuhnil will purchase supplies for clinical
trials post registration at the lower of $1,000 or manufacturing
cost.

    

    6  Grant
of Rights

    

    6.1  Licensed Intellectual
Property

    

    6.1.1  CIMYM
hereby grants to Kuhnil,
subject to the provisions of this Agreement:

    

    (a) an
exclusive sub-license in the Kuhnil Field and Territory under
the Licensed Patent Rights with the right to sub-license, to develop, use and
sell Licensed Product but only in the Kuhnil Field and Territory;
and

    

    (b) an
exclusive sub-license in the Kuhnil Field and Territory to use
the Licensed Know-how, with the right to sub-license, to develop, use and sell
Licensed Product but only in the Kuhnil Field and Territory;
and

    

    6.2  Arising Intellectual
Property

    

    6.2.1  Arising
Intellectual Property shall be owned by the Party (which for the purposes of
this Clause may include CIM) that invents or creates it, and if it is jointly
invented or created by two or more of the Parties it shall be owned jointly by
those Parties in equal, undivided shares, subject to the provisions of this
Agreement including the following provisions:

    

    (a) It is
anticipated that Arising Know-how will be generated by clinicians and other
Persons in the course of, or arising from, clinical studies that have been
designed by the Joint Development Team. Accordingly, it is agreed that all
Arising Know-how developed in, or arising from, the work performed under the
Development and Commercialisation Plan shall be jointly owned by CIM, CIMYM, and
Kuhnil in equal, undivided shares, subject to the provisions of this Agreement;
and

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)
Subject to paragraphs (a) above, where Arising Intellectual Property consists of
an improvement to, or a new application of, Licensed Intellectual Property and,
as a matter of law, is developed or created solely by employees of Kuhnil, it
shall be owned solely by Kuhnil, and Kuhnil employees shall be named as
inventors, subject to the provisions of this Agreement.

    

    6.2.2  CIMAB
hereby grants and agrees to grant to Kuhnil an exclusive, fully paid-up and
royalty-free, license under Arising Intellectual Property in the Kuhnil Field
and Territory, with the right to sub-license, to research, develop, make, have
made, import, use, sell and otherwise deal in any and all products and processes
in the Kuhnil Field and Territory.

    

    6.2.3  Kuhnil
hereby grants and agrees to grant to each of CIMYM and CIMAB an exclusive, fully
paid-up and royalty-free, license under Arising Intellectual Property in the
CIMYM Field and Territory, with the right to sub-license, to research, develop,
make, have made, import, use, sell and otherwise deal in any and all products
and processes in the CIMYM Field and Territory.

    

    6.3  Formal Licenses. If requested
by any of the Parties and at the requesting Party's administrative cost, the
Parties shall execute such formal licenses as may be necessary or appropriate
for registration with Patent Offices and other relevant authorities in the
Territory. In the event of any conflict in meaning between any such license and
the provisions of this Agreement, the provisions of this Agreement shall
prevail. The Parties shall use reasonable endeavours to ensure that, to the
extent permitted by relevant authorities, this Agreement shall not form part of
any public record.

    

    6.4  Reservation of Rights within Field
and Territory. For the avoidance of doubt, CIMYM reserves the right for
itself and its licensees and assigns to use TheraCIM h-R3 and the Licensed
Intellectual Property in the Kuhnil Field and Territory with the prior consent
of Kuhnil (a) for the purposes of research; and/or (b) for the purposes of
development (including clinical trials) of products with a view to obtaining
regulatory approval for such products in the CIMYM Field and Territory. If CIMYM
wishes to conduct research or development activities in the Kuhnil Field and
Territory in accordance with the provisions of this Clause, it will so inform
Kuhnil and give Kuhnil a first opportunity to propose terms for an agreement
with CIMYM under which Kuhnil would assist CIMYM with such activities at the
cost of CIMYM.

    

    6.5  No Other License. It is
acknowledged and agreed that no license is granted by CIMYM to Kuhnil other than the
sub-license(s) expressly granted by the provisions of this Clause 6. Without
prejudice to the generality of the foregoing, CIMYM reserves all rights under
the Licensed Intellectual Property in the CIMYM Field and
Territory.

    

    6.6  Quality. Kuhnil shall ensure that all
Licensed Product marketed by it is of satisfactory quality and complies with all
applicable laws and regulations in each part of the Territory.

    

    6.7  Acknowledgment by CIMAB.
CIMAB acknowledges and agrees that CIMYM has been granted the necessary rights
and licenses to enable it to grant the licenses and sub-licenses referred to in
Clause 6.1 of this Agreement.

    

    7  Payments

    

    7.1  Kuhnil shall pay to CIMYM a
non-refundable, non-creditable license fee of $400,000US, within 16 days of the
Commencement Date.

    

    7.2  Kuhnil will pay to CIMYM the
following non-refundable, non-creditable milestone payments, within 30 days from
the date of occurrence of each of the following Events:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              	
                      EVENT

                    	 	
                      PAYMENT

                    	 
	 	 	 	 
	
                      Regulatory
      Approval as a treatment for Glioma

                    	 	$	100,000	 
	
                      Regulatory
      Approval as a treatment for Head and Neck Cancer

                    	 	$	200,000	 
	
                      Regulatory
      Approval as a treatment for Non-small Cell Lung Cancer

                    	 	$	200,000	 
	
                      Regulatory
      Approval as a treatment for Pancreatic Cancer

                    	 	$	200,000	 

            

          

        

      

    

    

    If CIMYM
chooses to develop TheraCIM for additional indications that have not been
included above, upfront and milestone payment terms will be negotiated with
Kuhnil at an appropriate
time and if agreement is reached between the Parties, will be incorporated into
an amendment to this Agreement.

    

    7.3  Royalties. In addition to the
total amount of payments made by Kuhnil to ClMYM under Clauses 7.1 and 7.2,
Kuhnil shall pay to CIMYM a royalty of 40% (forty per cent) of Gross Sales Value
of Licensed Product inclusive of cost of goods sold (COGS). In the event that
during the Term, a first generic entry of the Licensed Product becomes available
in the Territory from a competitive supplier, CIMYM will reduce the royalty on
cumulative Gross Sales Value of Licensed Product to 40% of the entry price of
the first generic version of nimotuzumab to enter the Korean
market.

    

    7.4  Payment Dates. Royalties due
under this Agreement shall be paid within 90 days of the end of each Calendar
Quarter, in respect of sales of Licensed Product made during such Calendar
Quarter, and final royalties shall be paid within 30 days of the final sale of
the Licensed Product but in any event no later than 7 months following
termination of this Agreement for any reason.

    

    7.5  Payment Terms. All sums due
under this Agreement:

    

    (a) are
exclusive of Value Added Tax which where applicable will be paid by Kuhnil to
CIMYM in addition;

    

    (b) shall
be paid in Euros (or such other currency as the Parties may agree in writing)
and, in the case of sales or sub-license income received by Kuhnil in a currency
other than Euros, the income shall be calculated in the other currency and then
converted into equivalent Euros at the purchasing rate for Euros as quoted by
the Korea Exchange Bank in Korea as at the close of business on the last
business day of the quarterly period with respect to which the payment is
made;

    

    (c) shall
be made with a 5% deduction of income tax and other taxes charges or duties that
may be imposed, except insofar as Kuhnil is required to deduct the same to
comply with applicable laws. The Parties shall cooperate and take all steps
reasonably and law fully available to them to avoid deducting such taxes and to
obtain double taxation relief. If Kuhnil is required to make any such deduction
it shall provide CIMYM with such certificates or other documents as it can
reasonably obtain to enable CIMYM to obtain appropriate relief from double
taxation of the payment in question; and

    

    (d) shall
be made by the due date, failing which CIMYM may charge interest on any
outstanding amount on a daily basis at a rate equivalent to 3% above the US
prime lending rate then in force.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    7.6  Exchange Controls, etc. If at
any time during the continuation of this Agreement Kuhnil is prohibited from making
any of the payments required hereunder by a governmental authority in any
country then Kuhnil will
within the prescribed period for making the said payments in the appropriate
manner use its best endeavours to secure from the proper authority in the
relevant country permission to make the said payments and will make them within
7 days of receiving such permission. If such permission is not received within
30 days of Kuhnil making a
request for such permission then, at the option of CIMYM, Kuhnil shall deposit the royalty
payments due in the currency of the relevant country either in a bank account
designated by CIMYM within such country or such royalty payments shall be made
to an associated company of CIMYM designated by CIMYM and having offices in the
relevant country designated by CIMYM.

    

    7.7  Royalty Statements. Kuhnil
shall send to CIMYM at the same time as each royalty payment is made in
accordance with Clause 7.3 a statement setting out, in respect of each country
in the Territory in which Licensed Product is sold, the types of Licensed
Product sold, the quantity of each type sold, and the total Gross Sales Value in
respect of each type, expressed both in local currency and Euros and showing the
conversion rates used during the period to which the royalty payment
relates.

    

    7.8  Records

    

    7.8.1  Kuhnil
shall keep at its normal place of business detailed and up to date records and
accounts showing the quantity, description and Gross Sales Value of Licensed
Product, all the documents corresponding to the deductions from Gross Sales
Value and the amount of Milestone Receipts received by it in respect of Licensed
Product, on a country-by-country basis, and being sufficient to ascertain the
payments due under this Agreement.

    

    7.8.2  Kuhnil shall make such records
and accounts available, on reasonable notice, for inspection during business
hours by an independent chartered accountant nominated by CIMYM for the purpose
of verifying the accuracy of any statement or report given by Kuhnil to CIMYM under this
Agreement. The accountant shall be required to keep confidential all information
learned during any such inspection, and to disclose to CIMYM only such details
as may be necessary to report on the accuracy of Kuhnil's statement or report.
CIMYM shall be responsible for the accountant's charges unless the accountant
certifies that there is an inaccuracy of more than 5% (five percent) in any
royalty statement, in which case Kuhnil shall pay his charges in
respect of that inspection. If the inspection shows that Kuhnil owes a payment to CIMYM
under this Agreement, Kuhnil shall promptly make such
payment.

    

    7.8.3  Kuhnil shall ensure that CIMYM
has the same rights as those set out in this Clause 7.8 in respect of any
Affiliate of Kuhnil that is
sub-licensed under Licensed Intellectual Property pursuant to this
Agreement.

    

    8  Diligence

    

    8.1  Kuhnil shall use Diligent and
Reasonable Efforts to develop and commercially exploit Licensed Product to the
maximum extent throughout the Territory. Without limiting Kuhnil's obligations under the
previous sentence of this Clause 8.1, Kuhnil shall develop and
commercially exploit Licensed Product in accordance with the Development and
Commercialisation Plan.

    

    9  Intellectual
Property

    

    9.1  Obtain and Maintain the Licensed
Patent Rights

    

    9.1.1  CIMYM
shall, at its cost and expense:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a)
diligently seek to obtain valid patents in the name of CIM pursuant to each of
the Licensed Patent Rights listed in the attached Schedule 1; and

    

    (b) pay
all prosecution, maintenance, and renewal fees in respect of the Licensed Patent
Rights as and when due;

    

    provided
that if CIMYM elects to abandon any such application or not to maintain any such
Licensed Patent (or to cease funding such application or patent) within Kuhnil’s Field and Territory it shall
give 3 months' prior written notice to Kuhnil and on the expiry of such notice
period CIMYM shall return all rights, title, and interest in such patent or
patent application in question to CIM and neither Kuhnil nor CIMYM shall have
any continuing rights under such Licensed Patents.

    

    9.2  Obtain and Maintain the Arising
Patents

    

    9.2.1 The
Parties shall consult with one another in relation to the filing and maintenance
of any Arising Patents in respect of any inventions ("Arising Inventions").
CIMYM shall, or shall ensure that its Affiliates or sub-licensees shall, at its
own cost and expense:

    

    (a)
Diligently seek to obtain valid patents (in the name of the relevant Parties as
specified in Clause 6.2.1) in countries agreed upon by CIM and CIMYM for any
Arising Inventions; and

    

    (b) pay
all prosecution, maintenance, and renewal fees in respect of the Arising Patents
as and when due,

    

    provided
that if CIMYM, its Affiliates or sub-licensees wish to abandon or not maintain
any such application or not to maintain any such Arising Patent (or to cease
funding such application or patent) in the Kuhnil Field and Territory, it
shall give 3 months' prior written notice to Kuhnil and on the expiry of such
notice period CIMYM shall cause the patent or patent application in question to
be assigned to Kuhnil and
CIMYM shall have no continuing rights under such Arising Patents in the Kuhnil Field and
Territory.

    

    9.2.2  Pursuant
to paragraph 6.2.1(b), in the case where Kuhnil is the sole inventor of Arising
Intellectual Property, Kuhnil agrees to cooperate with CIMYM and promptly
execute all documents including assignment documents, required to protect such
Arising Intellectual Property as deemed necessary by ClMYM.

    

    9.3  Infringement of Third Party
Rights

    

    9.3.1  Each
Party shall inform the other Party promptly if it becomes aware of any
infringement or potential infringement of any of the Patents in the Kuhnil Field
and Territory, and in such case, CIMYM shall have the right, but not the
obligation, to decide the best way to respond to such infringement.

    

    9.3.2  Kuhnil shall be responsible, at
its discretion, for taking action against infringers of the Arising Patents in
the Kuhnil Field and
Territory at its sole expense, and it shall be entitled to retain any damages or
other payments or benefits obtained by such action in the Kuhnil Field and Territory, after
reimbursing CIMYM and CIMAB for any reasonable out-of-pocket expenses incurred
in assisting it in such action. If Kuhnil declines to take action,
then CIMYM shall be entitled to take action against the Third Party infringer at
CIMYM's sole expense and CIMYM shall be entitled to all damages or other sums
received from such action, after reimbursing Kuhnil for any reasonable
out-of-pocket expenses incurred in assisting it in such action. If the alleged
infringement is both within and outside the Kuhnil Field and Territory, the
Parties shall also co-operate with CIMYM's and CIMAB's other licensees (if any)
in relation to any such action and shall divide the costs of such action
proportionately among Kuhnil and CIMYM's and CIMAB's
other licensees who participate in such action. The apportionment of costs
between licensees shall be decided by CIMYM, acting reasonably.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    9.4  Infringement of Third Party
Rights

    

    9.4.1  If
any warning letter or other notice of infringement is received by a Party, or
legal suit or other action is brought against a Party, alleging infringement of
Third Party rights in the manufacture, use or sale of the Licensed Product or
use of any Patents, that Party shall promptly provide full details to the other
Party, and the Parties shall discuss the best way to respond.

    

    9.4.2  CIMYM
shall have the right but not the obligation to defend such suit and shall have
the right to settle with such Third Party, provided that if any action or
proposed settlement involves the making of any statement, express or implied,
concerning the validity of any Arising Patent, the consent of Kuhnil must be obtained before
taking such action or making such settlement such consent not to be unreasonably
withheld or delayed.

    

    9.5  Third Party Intellectual
Property. For the avoidance of doubt Kuhnil shall be solely
responsible for obtaining and paying for any additional licenses and other
rights that may be required to enable Kuhnil or its Affiliates to
commercialise Licensed Product in the Territory. If the sale of the Licensed
Product is found to infringe the intellectual property rights of a Third Party,
and results in the payment of royalties or other compensation by Kuhnil (or its Affiliates) to a
Third Party including legal fees, Kuhnil may reduce us royalty
payments to CIMYM under Clause 7.3 by 50% (fifty percent) of the royalties or
other compensation paid to the Third Party in respect of sales of Licensed
Product in the Territory, subject to the following conditions:

    

    (a) The
royalty due from Kuhnil to
CIMYM on the sale of the Licensed Product shall not be reduced below 38%;
and

    

    (b) Such
reductions shall only be made where the Third Party liability arises from the
use of the inventions claimed in the Licensed Patents and shall not be made in
respect of any other inventions, improvements or other features that Kuhnil chooses to incorporate
into the Licensed Product.

    

    9.6  Product
Names.  Kuhnil shall be responsible for deciding, in
consultation with CIMYM, the trade mark to be applied to the Licensed Product in
the Kuhnil Field and Territory. Kuhnil will be responsible for
applying for any such trade mark in the Territory, at its sale cost. CIMYM
acknowledges that it has no objection to the trade mark "TheraCIM". CIMYM will
be responsible for applying for an international, non-proprietary name ("INN")
for the Licensed Product at its sale cost. Kuhnil acknowledges that it has
no objection to the INN "NIMOTUZUMAB".

    

    10  Representations,
Warranties and Liability

    

    10.1  Representations and Warranties by
CIMYM. CIMYM represents and warrants that:

    

    (a) it
has all requisite corporate power and authority to enter into and perform its
obligations pursuant to this Agreement and to grant the sub-licenses herein
granted;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b) it
has not done, and will not do nor agree to do during the continuation of this
Agreement, any of the following things if to do so would be inconsistent with
the exercise by Kuhnil of the rights granted to it under this Agreement,
namely:

    

    (i)  
 grant or agree to grant any rights in the Licensed Patent Rights in the
Kuhnil Field and Territory;
or

    

    (ii)  
assign, mortgage, charge or otherwise transfer any of the Licensed Patent Rights
in the Kuhnil Field and
Territory;

    

    (c)   it
is not aware (but without having carried out any searches or investigations)
that any Third Party (other than CIMYM's licensor(s)) owns or claims any rights
in the Licensed Patent Rights;

    

    (d) 
 it is a corporation incorporated and validly existing under the laws of
its jurisdiction of incorporation; and

    

    (e) 
 the execution, delivery and performance of this Agreement by it have been
duly and validly authorized by all necessary corporate action on its part and
this Agreement is a legal, valid and binding obligation enforceable against it
in accordance with its terms, except as enforceability may be subject to
bankruptcy, insolvency and other laws affecting the rights of creditors
generally and except that equitable remedies may be granted only in the
discretion of a court of competent jurisdiction.

    

    10.2  Representations and Warranties by
Kuhnil. Kuhnil represents, warrants and
undertakes:

    

    (a)
  that it has, and will continue to have, sufficient financial and
other resources to fulfil its obligations under this Agreement;

    

    (b) 
 that it has obtained all necessary authorisations from its supervisory
board and investors to use such resources and fulfil such
obligations;

    

    (c)   it
has all requisite corporate power and authority to enter into and perform its
obligations pursuant to this Agreement; and to grant the sub-licenses herein
granted;

    

    (d)   it
is a corporation incorporated and validly existing under the laws of its
jurisdiction of incorporation; and

    

    (e)
 the execution, delivery and performance of this Agreement by it have been
duly and validly authorized by all necessary corporate action on its part and
this Agreement is a legal, valid and binding obligation enforceable against it
in accordance with its terms, except as enforceability may be subject to
bankruptcy, insolvency and other laws affecting the rights of creditors
generally and except that equitable remedies may be granted only in the
discretion of a court of competent jurisdiction.

    

    10.3  No Other
Warranties

    

    10.3.1  Each
of Kuhnil and CIMYM
acknowledges that, in entering into this Agreement, it does not do so in
reliance on any representation, warranty or other provision except as expressly
provided in this Agreement, and any conditions, warranties or other terms
implied by statute or common law arc excluded from this Agreement to the fullest
extent permitted by law.

    

    10.3.2  Without
limiting the scope of Clause 10.3.1, CIMYM does not give any warranty,
representation or undertaking:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (a)
  as to the efficacy or usefulness of any of the Licensed Intellectual
Property; or

    

    (b) 
 that any of the Licensed Patent Rights is or will be valid or subsisting
or (in the case of an application) will proceed to grant; or

    

    (c) 
 that the use of any of the Licensed Intellectual Property, the
manufacture, sale or use of the Licensed Product or the exercise of any of the
rights granted under this Agreement will not infringe any other intellectual
property or other rights of any other person; or

    

    (d) 
 that the Licensed Know-how or any other information or materials
communicated or provided by CIMYM to Kuhnil under or in connection
with this Agreement will produce Licensed Product of satisfactory quality or fit
for the purpose for which Kuhnil intended; or

    

    (e) 
 as imposing any obligation on CIMYM to bring or prosecute actions or
proceedings against third parties for infringement or to defend any action or
proceedings for revocation of any of the Licensed Patent Rights; or

    

    (f)   
as imposing any liability on CIMYM in the event that any Third Party supplies
Licensed Product to customers located in the Territory.

    

    10.4
Indemnity and
Insurance. Kuhnil
shall indemnify and hold harmless CIMYM, CIM and (except as otherwise provided
in any Supply Agreement) CIMAB and their respective Affiliates and their
respective officers, directors, employees, consultants, agents and
representatives (the "Indemnitees") against all Third Party Claims which may be
asserted against or suffered by any of the Indemnitees and which relate
to:

    

    (a)   the
use of any Delivered Items; or

    

    (b) 
 the manufacture, distribution, sale, supply or use of the Licensed Product
or any other products or services which incorporate any Delivered
Items,

    

    by or on
behalf of Kuhnil or its
Affiliates, or subsequently by any Third Party under license from Kuhnil, including without
limitation Claims based on product liability laws. For the duration of this
Agreement, Kuhnil shall
maintain clinical trials and product liability insurance with a reputable
insurer in an amount not less than the minimum amount required by law or best
industry practice in each country of the Territory (or, in any country, if no
such law or practice exists in that country, in an amount of at least
$10,000,000) per Claim or series of Claims).

    

    10.5  Limitation of Liability.
Subject to Clause 10.4, but notwithstanding any other provision of this
Agreement, no Party shall be liable to any other Party to this Agreement in
contract, tort, negligence, breach of statutory duty or otherwise for Claims of
any nature whatsoever incurred or suffered by that other party or its Affiliates
of an indirect or consequential nature including without limitation any economic
loss or other loss of turnover, profits, business or goodwill.

    

    11  Duration
and Termination

    

    11.1  Commencement and Termination by
Expiry. This Agreement, and the rights granted hereunder, shall come into
effect on the Commencement Date and, unless terminated earlier in accordance
with this Clause 11, shall continue in force in each country in the Territory
until the latest of the fifteenth anniversary of the date of the first
commercial sale of Licensed Product in such country in the Territory by Kuhnil or its Affiliates; and on
such date this Agreement and the rights granted hereunder shall terminate
automatically by expiry.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    11.2  Early
Termination

    

    11.2.1  KUHNIL
may terminate this Agreement at any time on 180 days’ notice in
writing  to CIMYM.

    

    11.2.2  Without
prejudice to any other right or remedy, either of CIMYM or Kuhnil may terminate this
Agreement at any time by notice in writing to the other of them ("Other Party"),
such notice to take effect as specified in the notice:

    

    (a) 
 if the Other Party (which in the case of KUHNIL shall include any
Affiliate of Kuhnil) is in
material breach of this Agreement and. in the case of a breach capable of remedy
within 30 days, the breach is not remedied within 30 days of the Other Party
receiving notice specifying the breach and requiring its remedy; or

    

    (b) 
if the Other Party (which in the case of Kuhnil shall include any
Affiliate of Kuhnil)
becomes insolvent, or if an order is made or a resolution is passed for the
winding up of the Other Party (other than voluntarily for the purpose of solvent
amalgamation or reconstruction), or if an administrator, administrative receiver
or receiver is appointed in respect of the whole or any part of the Other
Party's assets or business, or if the Other Party makes any composition or
proposal with its creditors or takes or suffers any similar or analogous action
in consequence of debt; or

    

    (c) 
 if the first Phase II clinical trial for the Licensed Product within the
Field in the Territory has not commenced within a period of one and a half years
after the Commencement Date; or

    

    (d) 
 if the first Regulatory Approval for marketing the Licensed Product within
the Field in the Territory is not obtained within a period of three years after
the Commencement Date.

    

    11.2.3  CIMYM
may forthwith terminate this Agreement by giving written notice to Kuhnil if KUHNIL or any of its
Affiliates commences legal proceedings, or assists any Third Party to commence
legal proceedings, to challenge the validity of any of the Patents.

    

    11.2.4  The
Parties acknowledge and agree that Kuhnil's remedy for any breach by
CIMAB of its obligations under Clause 5 shall be as set out in any Supply
Agreement that CIMYM and Kuhnil may execute pursuant to
Clause 5.4. Accordingly, breach of Clause 5 shall not entitle any Party to
terminate this Agreement.

    

    11.3  Consequence of
Termination

    

    11.3.1  Upon
termination or expiration of this Agreement for any reason:

    

    (a) If
termination occurs otherwise than in accordance with Clause 11.1 and after the
first commercial sale of Licensed Product, Kuhnil shall be entitled to sell, use
or otherwise dispose of (subject to payment of royalties under Clause 7.3) any
unsold or unused stocks of the Licensed Product for a period of 6 months
following the date of termination following which it must destroy all such
Licensed Product; and if termination occurs prior to the first commercial sale
of Licensed Product, Kuhnil shall forthwith return all such stocks of Licensed
Product and Licensed Know-how to CIMYM free of charge;

    

    (b)
subject to paragraph (a) above, Kuhnil shall no longer be
sub-licensed to use or otherwise exploit in any way, either directly or
indirectly, any of the Licensed Intellectual Property;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (c)
 subject to paragraph (a) above, Kuhnil shall consent to the
cancellation of any formal sub-license granted to it, or of any registration of
it in any register, in relation to any of the Licensed Patent
Rights;

    

    (d)
 the provisions of Clause 4, except Clause 4.1 and 4.2 shall survive
termination and continue in force without limit of time. For clarification,
Kuhnil and its Affiliates
shall have no further right to use Licensed Know-how following termination or
expiration of this Agreement;

    

    (e)
 the provisions of Clauses 6.2.3, 7, 10.3, 10.4 and 12, as well as those
Clauses which by their nature are intended to survive the termination or expiry
of this Agreement shall survive the termination or expiration of this Agreement;
and

    

    (f)
 any and all rights and obligations accrued under this Agreement prior to
termination or expiration shall survive. Notwithstanding the foregoing, neither
Party shall be under any further obligation to the other and CIM and CIMYM shall
have the right to issue licenses under the License Patent Rights to any Third
Party within Kuhnil 's
Field and Territory.

    

    11.3.2  Upon
termination of this Agreement for any reason otherwise than in accordance with
Clause 11.1 and at CIMYM's request, Kuhnil shall at its sole cost and
expense:

    

    (a)
 transfer to CIMYM all clinical and other data relating to the development
of Licensed  Product;

    

    (b)
 to the extent possible, seek to have any Regulatory Approvals (including
without limitation product licenses and pricing approvals) and other permits and
applications transferred into the name of CIMYM or its nominee;

    

    (c)
 grant CIMYM an exclusive, perpetual, fully paid up, royalty free,
worldwide license, with the rights to grant sub-licenses. under all Arising
Intellectual Property and any improvements and other intellectual property owned
or controlled by Kuhnil relating to Licensed Product and Arising Intellectual
Property; and

    

    (d) grant
CIMYM or its nominee the right to continue to use any product name that had been
applied to the Licensed Product prior to termination of this
Agreement.

    

    12  General

    

    12.1  Force Majeure. None of the
Parties shall be liable for any loss, injury, delay, damage or other casualty
suffered or incurred by any other Party due to strikes, lockouts, labour
disputes, riots, storms, fires, explosions, acts of God, war or any other causes
that are beyond the reasonable control of that Party (each, a "Force Majeure
Event"), and failure or delay by a Party in performance of any of its
obligations under the Agreement due to one or more Force Majeure Events shall
not be considered a breach of this Agreement.

    

    The Party
whose performance is affected by a Force Majeure Event shall make reasonable
efforts to remedy the situation and remove, so far as possible, and with
reasonable dispatch, the cause of its inability to perform or comply, provided
however, that settlement of labour disputes, strikes, and lockouts shall be
wholly within the discretion of the Party involved.

    

    If a
Force Majeure Event exists for more than ten (10) consecutive days, the Parties
shall meet to negotiate a mutually satisfactory solution to the problem. Nothing
herein shall relieve the Parties of their obligations to make payments when due
hereunder.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    12.2  Language and Amendment. This
Agreement is made in the English language and may only be amended in the English
language in writing signed by duly authorised representatives of the Parties. In
the event of any conflict in meaning between the English language version and
any translation of this Agreement, the English language version shall
prevail.

    

    12.3  Assignment and Third Party
Rights

    

    12.3.1  Subject
to Clause 12.3.2 below, no Party shall assign, mortgage, charge or otherwise
transfer any rights or obligations under this Agreement, nor any of the Patents
or rights under the Patents, without the prior written consent of the other
Parties.

    

    12.3.2  With
the prior written consent of the other Parties, a Party may assign all its
rights and obligations under this Agreement together with its rights in the
Patents to any company to which it transfers all or substantially all of its
assets or business in the Field, provided that the assignee undertakes to the
other Party to be bound by and perform the obligations of the assignor under
this Agreement.

    

    12.4  Waiver. No failure or delay
on the part of either Party to exercise any right or remedy under this Agreement
shall be construed or operate as a waiver thereof, nor shall any single or
partial exercise of any right or remedy preclude the further exercise of such
right or remedy.

    

    12.5  Invalid Clauses. lf any of
the within terms, conditions or provisions or the application thereof to any
Person or circumstance shall at any time or to any extent, be invalid or
unenforceable at law such term, condition, or provisions shall be severed from
the remainder hereof which shall be affected thereby, and each and every time
and in each and every circumstance in which reference is made hereto each term,
covenant, condition and provision hereof shall be valid and be enforced to the
fullest extent permitted by law.

    

    12.6  No Agency. Neither Party
shall act or describe itself as the agent of the other, nor shall it make or
represent that it has authority to make any commitments on the other's
behalf.

    

    12.7  Interpretation. In this
Agreement:

    

    (a)
 the headings are used for convenience only and shall not affect its
interpretation;

    

    (b)
 references to persons shall include incorporated and unincorporated
persons; references to the singular include the plural and vice versa; and
references to the masculine include the feminine;

    

    (c)
 references to Clauses and Schedules mean clauses of, and schedules to,
this Agreement;

    

    (d)
 references to any Party shall include their permitted successors and
permitted assignees;

    

    (e)
 references to any license shall mean, where the context requires, a
sub-license;

    

    (f)
 where the word "including" is used, it shall be understood as meaning
"including without limitation"; and

    

    (g)
references to the grant of "exclusive" rights shall mean that the person
granting the rights shall neither grant the same rights (in the same Field and
Territory and in respect of the same Licensed Product) to any other person, nor
exercise those rights directly to the extent that and for as long as the
Licensed Product is within Valid Claims of unexpired Licensed Patent Rights or,
to the extent that the Licensed Product is protected by Licensed Know-how that
have not become known and available to the public.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    12.8  Notices

    

    12.8.1  Any
notice to be given under this Agreement shall be in writing and shall be sent by
first class mail, air mail or by courier, or by fax (confirmed by first class
mail or air mail) to the address of the relevant Party set out at the head of
this Agreement, or to the relevant fax number set out below, or such other
address or fax number as that Party may from time to time notify to the other
Party in accordance with this Clause 12.8. The fax numbers of the Parties are as
follows:

    

    
      
        	
                Party

              	
                Fax
      number

              
	
                CIMYM

              	
                001
      905 629 4959

              
	
                CIMAB

              	
                0053
      7 33 3509

              
	
                Kuhnil

              	
                82-2-714-0314

              

      

    

    

    12.8.2  Notices
sent as above shall be deemed to have been received three working days after the
day of posting (in the case of inland first class mail or national courier), or
seven working days after the date of posting (in the case of air mail or
international courier), or on the next working day after transmission (in the
case of fax messages, but only if a transmission report is generated by the
sender's fax machine recording a message from the recipient's fax machine,
confirming that the fax was sent to the number indicated above and confirming
that all pages were successfully transmitted).

    

    12.9  Law, Dispute Resolution. The
validity, construction and performance of this Agreement shall be governed by
English law. Any dispute arising out of or in connection with this Agreement
shall first be referred to the Joint Development Team for resolution. If the
Joint Development Team is unable or unwilling to resolve such dispute within 30
days of the dispute being referred to it, the dispute shall be referred to the
Chief Executive Officers of the Parties in dispute for resolution. If the Chief
Executive Officers of the Parties in dispute are unable or unwilling to resolve
such dispute within 28 days of the dispute being referred to them, either
Development Team Party may refer the dispute to mediation in accordance with the
Model Mediation Procedure of the Centre for Effective Dispute Resolution
("CEDR") in London. Unless otherwise agreed by the Development Team Parties, the
mediator will be nominated by CEDR. To initiate the mediation procedure, a
Development Team Party must give notice in writing (“ADR Notice”) to the other
parties to the dispute, requesting mediation. A copy of the request should also
be sent to CEDR. The mediation will start not later than 28 days after the date
of the ADR Notice. If the Parties are unable to resolve the dispute through
mediation, or none of the Parties refers the dispute to mediation, the dispute
shall be referred to and finally resolved by arbitration by a single arbitrator
in London under the Rules of the London Court of International Arbitration (the
"Rules"), which Rules are deemed to be incorporated by reference into this
Clause. The language to be used in the arbitral proceedings shall be English and
the place of arbitration shall be London, UK. The arbitrator shall be chosen by
the Parties or, failing agreement as to the choice of arbitrator within 28 days
of one Party requesting that an arbitrator by chosen, appointed in accordance
with the Rules. However, nothing in this Agreement shall prevent a Party from
seeking an interim injunction or other equitable remedy in any court of
competent jurisdiction.

    

    12.10  Further Action. Each Party
agrees to execute, acknowledge and deliver such further instruments, and do all
further similar acts, as may be necessary or appropriate to carry out the
purposes and intent of this Agreement.

    

    12.11  Announcements. Neither Party
shall make any press or other public announcement concerning any aspect of this
Agreement, or make any use of the name of the other Party in connection with or
in consequence of this Agreement, without the prior written consent of the other
Party, except as may be required by law or by the rules of any stock exchange on
which either Party is listed. The Parties shall agree a form of press release
for issue on signature of this Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    12.12  Entire Agreement. This
Agreement, including its Schedules, sets out the entire agreement between the
Parties relating to its subject matter and supersedes all prior oral or written
agreements, arrangements or understandings between them relating to such subject
matter. The Parties acknowledge that they are not relying on any representation,
agreement, term or condition that is not set out in this Agreement. Nothing in
this Agreement excludes liability for fraud.

    

    12.13  Third Party Rights. Each of
the persons identified as Indemnitees in Clause l0.4 may in his own right
enforce the provisions of those respective Clauses. Except as provided in the
previous sentence of this Clause, this Agreement is not made for the benefit of,
nor shall any of its provisions be enforceable by, any person other than the
parties to this Agreement and their respective successors and permitted
assignees.

    

    12.14  Non-compete. KUHNIL and its
Affiliates warrants, represents, acknowledges and agrees, in respect of it and
its Affiliates, that:

    

    (a) they
do not have any interest in any technology that competes with the Licensed
Intellectual Property, nor is any of them engaged in any research or development
activities with respect to any product that would compete with the Licensed
Products; and

    

    (b) for
so long as this Agreement remains in force and for a period of two (2) year
thereafter, they will not enter into any agreement with any Person other than
CIMAB or CIMYM for the development or marketing of any product that is, or
contains, (i) any other anti-EGF-receptor inhibitor, (ii) any product or
component or sequence of EGF-R, EGF-R ligands, or any small molecule tyrosine
kinase inhibitor, or (iii) covered under the scope of any Licensed Patent Rights
or Licensed Know-how unless specifically authorized by CIMYM.

    

    12.15  Agreed by the
Parties through their authorised signatories:

    

    For and
on behalf of CIMYM,
Inc.

    

    
      
        	
                signed

              	
                signed

              
	 
      	 
      
	
                David
      G.P. Allan

              	
                Sean
      E.L. Thompson

              
	 
      	 
      
	
                Chairman
      and CEO

              	
                Director,
      Corporation Development

              
	 
      	 
      
	
                date
      9-Sept-05

              	
                date
      9-Sept-05

              

      

    

    

    For and
on behalf of CIMAB
S.A.

     

    
      
        	
                signed

              	
                signed

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                Patricia
      Sierra

              	
                Norkis
      Arteaga

              
	 
      	 
      
	
                President

              	
                General
      Counsel

              
	 
      	 
      
	
                date

              	
                date

              

      

    

    

    For and
on behalf of KUHNIL
PHARMACEUTICALS CO., LTD.

    

    
      
        	
                signed

              	
                signed

              
	 
      	 
      
	
                Y.O.
      Kim

              	
                Young
      J. Kim

              
	 
      	 
      
	
                Chairman

              	
                President,
      CEO

              
	 
      	 
      
	
                date

              	
                date

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
I

    Licensed
Patent Rights

    

    The
patents and patent applications listed in this Schedule are, or may become,
relevant to this Agreement, but they also contain other rights not licensed
under this Agreement. Thus their inclusion here is limited to the extent if any
that they would protect the exploitation of Licensed Product for use within the
Field and in the Territory.

    

    PCT/CU2003/000012

    

    Korean
Patent Number: 10-2005-700 6995

    

    International
Filing Date: 22 October 2003 (22.10.2003)

    

    
      
        	
                Title:

              	
                METHOD
      OF OBTAINING CELL LINES IN A PROTEIN- FREE MEDIUM AND CELL LINES THUS
      OBTAINED

              
	 
      	 
      
	
                Applicant:

              	
                CENTRO
      DE INMUNOLOGIA MOLECULAR

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
2

    Licensed
Know-how

    

    All
documentation that has been submitted by YM BioSciences, Inc. to the Health
Protection and Food Branch of Health Canada in connection with an application
for an Investigational New Drug Submission for the Licensed Product in Canada,
together with clinical trial data generated by CIMAB.

    

    All
additional and Know How generated by other licensees to the
product.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
3

    Initial
Development and Commercialisation Plan

    

    Part
A: Initial Development Program

    

    The
development program will include:

    

    1.
Participation in a multinational randomized study in Non-small Cell Lung Cancer
unfit patients stage II, IIIA and IIIB in combination with radiotherapy. It is
provisionally estimated that Kuhnil will contribute 40 of the 120
patients.

    

    2. Kuhnil
will run a study in Head & Neck cancer in the local population. It is
provisionally estimated that the study will be a non-randomized study combining
radiation with TheraCIM in 40 patients.

    

    3.  New
indications to be determined.

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