Document:

Exhibit
10.5

Option
No.: 20   -            

AMENDED AND RESTATED ARRAY BIOPHARMA INC.

STOCK OPTION AND INCENTIVE PLAN

NONQUALIFIED STOCK OPTION
AGREEMENT

Array BioPharma
Inc., a Delaware corporation (the “Company”), hereby grants an option to
purchase shares of its common stock, $.001 par value, (the “Stock”) to
the optionee named below.  The terms and
conditions of the option are set forth in this cover sheet, in the attachment
and in the Amended and Restated Array BioPharma Inc. Stock Option and Incentive
Plan (the “Plan”).

Grant Date:               
     , 20    

Name of Optionee: 
                                                 

Optionee’s Social Security Number:         -      -       

Number of Shares Covered by Option:                

Option Price per Share:  $       .    

Vesting Start Date:             
     ,     

By signing this cover sheet, you
agree to all of the terms and conditions described in the attached Agreement
and in the Plan, a copy of which is also attached.  You acknowledge that you have carefully
reviewed the Plan, and agree that the Plan will control in the event any
provision of this Agreement should appear to be inconsistent.

	
  Optionee:

  	
   

  	
   

  
	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  
	
  Company:

  	
   

  	
   

  
	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Robert E. Conway,
  Chief Executive Officer

  	
   

  

 

Attachment

This is not a stock certificate or a negotiable
instrument.

 

AMENDED
AND RESTATED

ARRAY BIOPHARMA INC.

STOCK
OPTION AND INCENTIVE PLAN

NONQUALIFIED STOCK OPTION
AGREEMENT

	
  Capitalized
  terms used in this Agreement that are not otherwise defined in this Agreement
  have the meaning given such terms in the Plan.

   

  
	
  Nonqualified Stock Option

  	
  This option is not intended to be an
  incentive stock option under Section 422 of the Internal Revenue Code and
  will be interpreted accordingly.  

  
	
   

  	
   

  
	
  Vesting

  	
  You may purchase shares which have vested
  under this option at any time prior to expiration of this option by following
  the procedures set forth in the Plan and below in this Agreement.  You may only exercise this option for a
  whole number of vested shares, not less than 100 shares, unless the number of
  shares purchased is the total number available for purchase under the option.

   

  Provided you continue in Service on each vesting date, your right to
  purchase shares of covered by this option (the “Option Shares”) vests
  as follows:

   

  [To
  be determined]

   

  The resulting aggregate number of vested shares will be rounded to
  the nearest whole number.  You cannot
  vest in more than the number of shares covered by this option.

   

  No additional Option Shares will vest after
  your Service has terminated for any reason.

  
	
   

  	
   

  
	
  Term

  	
  Your option will expire in any event at the
  close of business at Company headquarters on the day before the 10th
  anniversary of the Grant Date, as shown on the cover sheet.  Your option will expire earlier if your
  Service terminates, as described below.

  
	
   

  	
   

  
	
  Regular Termination

  	
  If your Service terminates
  for any reason, other than death, Disability or Cause, then your option will
  expire at the close of business at Company headquarters on the 90th day after your termination
  date.

  
	
   

  	
   

  
	
  Termination for

  Cause

  	
  If
  your Service is terminated for Cause, then you shall immediately forfeit all
  rights to your option and the option shall immediately expire.  

  
	
   

  	
   

  
	
  Death

  	
  If your Service terminates because of your
  death, then your option will expire at the close of business at Company
  headquarters on the date 12 months after the date of death.  During that twelve-month period, your

  

 

 

 

	
   

  	
  estate or heirs may exercise the vested
  portion of your option.

   

  In addition, if you die during the 90-day
  period described in connection with a regular termination (i.e., a
  termination of your Service not on account of your death, Disability or
  Cause),  and a vested portion of your
  option has not yet been exercised, then your option will instead expire on
  the date 12 months after your termination date.  In such a case, during the period following
  your death up to the date 12 months after your termination date, your estate
  or heirs may exercise the vested portion of your option. 

  
	
   

  	
   

  
	
  Disability

  	
  If your Service terminates because of your
  Disability, then your option will expire at the close of business at Company
  headquarters on the date 12 months after your termination date.

  
	
   

  	
   

  
	
  Leaves of Absence

  	
  For purposes of this option, your Service
  does not terminate when you go on a bona fide
  leave of absence (i) that was approved by the Company in writing, if the
  terms of the leave provide for continued Service crediting, or (ii) when
  continued Service crediting is required by applicable law.  However, your Service will be treated as
  terminating for
  purposes of the “Vesting” and the “Regular Termination” sections of this
  Agreement in accordance with the then effective policies of
  the Company relating to leaves of absence, unless your
  right to return to active work is guaranteed by law or by a contract.  Your Service terminates in any event when
  the approved leave ends unless you immediately return to active employee
  work.

   

  The Company determines, in its sole
  discretion, which leaves count for this purpose, and when your Service
  terminates for all purposes under the Plan.

  
	
   

  	
   

  
	
  Notice of Exercise

  	
  When you wish to exercise this option, you
  must do so through the Company’s account with Deutsche Bank Alex. Brown using
  the user name and password supplied to you by Deutsche Bank.  You can access this account on the Deutsche
  Bank website at www.optionselect.db.com or by calling 800-776-7564.

   

  You must also notify the Company prior to
  exercising this option by submitting a notice of exercise, in the form
  attached as Exhibit A, to the Company’s Chief Financial Officer, or
  another Company employee designated by him.

   

  If someone else wants to exercise this
  option after your death, that person must prove to the Company’s satisfaction
  that he or she is entitled to do so.

  
	
   

  	
   

  
	
  Form of Payment

  	
  When you submit a notice
  of exercise, you must indicate how you have paid the option price for the
  shares you are purchasing using one (or a combination) of the following
  forms:

   

  ·                 Cash, your personal check, a cashier’s
  check, a money order, wire 

  

 

 

 

	
   

  	
  or another cash equivalent
  acceptable to the Company.

   

  ·                 Shares of Stock which you have owned for
  more than six months and which are surrendered to the Company.  The value of the shares, determined as of
  the effective date of the option exercise, will be applied to the option
  price.

   

  ·                 So long as a public market for the Stock
  exists as determined by the Company, by delivery (on a form acceptable to the
  Company) of an irrevocable direction to Deutsche Bank Alex. Brown or another
  licensed securities broker acceptable to the Company to sell Stock and to
  deliver all or part of the sale proceeds to the Company in payment of the
  aggregate option price and any withholding taxes.

  
	
   

  	
   

  
	
  Withholding Taxes

  	
  You will not be allowed to exercise this
  option unless you make acceptable arrangements to pay any withholding or
  other taxes that may be due as a result of the option exercise or sale of
  Stock acquired under this option.  In
  the event that the Company determines that any federal, state, local or
  foreign tax or withholding payment is required relating to the exercise or
  sale of shares arising from this grant, the Company shall have the right to
  require such payments from you, or withhold such amounts from other payments
  due to you from the Company or any Affiliate.

  
	
   

  	
   

  
	
  Transfer of Option

  	
  During your lifetime, only you (or, in the
  event of your legal incapacity or incompetency, your guardian or legal
  representative) may exercise the option. 
  You cannot transfer or assign this option.  For instance, you may not sell this option
  or use it as security for a loan.  If
  you attempt to do any of these things, this option will immediately become
  invalid.  You may, however, dispose of
  this option in your will or it may be transferred upon your death by the laws
  of descent and distribution.

  Regardless of any marital property
  settlement agreement, the Company is not obligated to honor a notice of
  exercise from your spouse, nor is the Company obligated to recognize your
  spouse’s interest in your option in any other way.

  
	
   

  	
   

  
	
  Retention Rights

  	
  Neither your option nor this Agreement
  gives you the right to be retained by the Company (or any Parent,
  Subsidiaries or Affiliates) in any capacity. 
  The Company (and any Parent, Subsidiaries or Affiliates) reserve the
  right to terminate your Service at any time and for any reason.

  
	
   

  	
   

  
	
  Shareholder Rights

  	
  You, or your estate or heirs, have no
  rights as a shareholder of the Company until a certificate for your option’s
  shares has been issued or an appropriate book entry has been made.  No adjustments are made for dividends or
  other rights if the applicable record date occurs before your stock
  certificate is issued or book entry is made, except as 

  

 

 

 

	
   

  	
  described in the Plan.

  
	
   

  	
   

  
	
  Adjustments

  	
  In the event of a stock split, a stock
  dividend or a similar change in the Stock, the number of shares covered by
  this option and the option price per share may be adjusted (and rounded down
  to the nearest whole number) pursuant to the Plan.  Your option shall be subject to the terms
  of the agreement of merger, liquidation or reorganization in the event the
  Company is subject to such corporate activity.

  
	
   

  	
   

  
	
  Applicable Law

  	
  This Agreement will be interpreted and
  enforced under the laws of the State of Colorado, other than any conflicts or
  choice of law rule or principle that might otherwise refer construction or
  interpretation of this Agreement to the substantive law of another
  jurisdiction.

  
	
   

  	
   

  
	
  The Plan 

  	
  The text of the Plan is
  incorporated in this Agreement by reference.

  This Agreement and the
  Plan constitute the entire understanding between you and the Company
  regarding this option.  Any prior
  agreements, commitments or negotiations concerning this option are
  superseded.

   

  
	
   

  	
   

  
	
  Consent to Electronic Delivery

  	
  The Company may choose to deliver certain
  statutory materials relating to the Plan in electronic form.  By accepting this option grant you agree
  that the Company may deliver the Plan prospectus and the Company’s annual
  report and proxy statement to you in an electronic format.  If at any time you would prefer to receive
  paper copies of these documents, as you are entitled to, the Company would be
  pleased to provide copies.  Please
  contact the Human Resources department or the Company’s Stock Administrator
  to request paper copies of these documents.

  

 

By signing the cover sheet
of this Agreement,

you
agree to all of the terms and conditions described above and in the Plan.

 

EXHIBIT A

NOTICE OF EXERCISE

The undersigned hereby
gives notice to Array BioPharma Inc. (the “Company”) of the
desire to purchase shares of common stock of the Company pursuant to
Nonqualified Stock Option Agreement No.        .

1.                                       Exercise of Option.

Name 

Date   

Shares to be
Exercised  

Option Exercise
Price 

Limit Orders.

If you have elected to
exercise your option pursuant to a Limit Order, check the applicable box below:

o                                    Limit
Order that is good until cancelled

o                                    Limit
Order expires on 

 

2.                                       Delivery of Payment.  Indicate below how the full option exercise
price for the Shares is to be paid:

o            Pursuant
to an “exercise and sell”, “sell to cover” or other broker transaction with
Deutsche Bank Alex. Brown

o            Cash
in the form of check, wire or funds from my Deutsche Bank Alex. Brown account

o            By surrender to the
Company of Shares owned and held for more than six months with a value of $                
represented by certificate number(s) 

 

3.                                       Taxes to be Withheld. 
Please indicate whether you want taxes withheld from any
disqualifying disposition, such as a same-day-sale.  (Check only one)

o                  Yes, withhold
taxes on a disqualifying disposition.

o                  No, do not
withhold taxes on a disqualifying disposition.

 

	
  

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
  Social Security No.:

  	
          -        -        

  
	
   

  	
   

  
	
  Address:EXHIBIT
10.29

[ * ] = Certain confidential
information contained in this document, marked by brackets, has been omitted
and filed separately with the Securities and Exchange Commission pursuant to
Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

February 3, 2006

VIA FAX AND FEDERAL EXPRESS

David L. Snitman, Ph.D.

Chief Operating Officer

Array BioPharma, Inc.

3200 Walnut Street

Boulder, CO 80301

RE:
Amendment No. 6 to the Drug Discovery Collaboration Agreement

Dear Dr. Snitman:

As you know, InterMune,
Inc. (“InterMune”) and Array BioPharma Inc. (“Array”) are parties
to that certain Drug Discovery Collaboration Agreement dated September 13,
2002, as amended May 8, 2003, January 7, 2004, September 10, 2004, December 7,
2004 and June 30, 2005 (collectively, the “Agreement”).  As we have previously discussed with you
and/or John Moore, we would like to further amend the Agreement Accordingly, the
parties agree that the Agreement is hereby amended as follows, effective as of January
1, 2006 (“Amendment Effective Date”):

1.                                       The
second sentence in Section 5.1.1 of the Agreement is hereby amended in its
entirety to read as follows:

“The Allocated
Array FTEs shall be as follows:  (a) [ * ] Array FTEs devoted to [ * ]
for the period of time set forth below in this Section 5.1.1 (or such other
number scheduled in the Research Plan) (the “Discovery FTEs”); (b) [ * ] Array FTEs devoted to [ * ]
for the period of time set forth below in this Section 5.1.1 (or such other
number scheduled in the Research Plan) (the “Manufacture FTEs”); and (c) [ * ] Array FTEs, [ * ] of which
will be [ * ] will be devoted to [ * ] while [ * ] will be devoted
to [ * ] for the period of time set forth
below in this Section 5.1.1 (or such other number of FTEs and/or allocation of
such number of FTEs between the manufacturing transfer and process research
activities as scheduled in the Research Plan) (the “Research FTEs”).”

2.                                       The
last two sentences in Section 5.1.1 of the Agreement are hereby amended in their
entirety to read as follows:

“[ * ] Manufacture
FTEs shall be funded by InterMune beginning July 1, 2005 through January 31,
2006.  Beginning February 1, 2006,
InterMune shall fund [ * ] Manufacture FTEs until [ * ] (or such other
[ * ] as may be determined by mutual agreement).  At the end of such period, any remaining raw
materials purchased for the [ * ] and for which

 
 

[ * ] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately
with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

 

Array receives reimbursement from InterMune that are not used for the [ * ] shall
be owned by, and also delivered to, InterMune (or a third party designated by
InterMune).  The Research FTEs shall be
funded by InterMune beginning January 1, 2006 through August 31, 2006, with an option
exercisable by InterMune to extend such funding for an additional six
(6)-month period subject to the extension of the Research Term.”

Except as set forth
above, all terms and conditions of the Agreement will remain in full force and
effect.  Any capitalized term used herein
and not otherwise defined will have the same meaning as set forth in the
Agreement.  Please acknowledge your
agreement to the above by having an authorized Array representative countersign
both enclosed copies of this Amendment No. 6 where indicated below, and
returning one original to the attention of Pauline Williams, Senior
Paralegal/Executive Assistant, at InterMune. 
We would be happy to proceed based on receipt of a facsimile copy while
awaiting the original.

	
  Sincerely,

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Lawrence Blatt,
  Ph.D.

  	
   

  	
   

  
	
  Chief Scientific
  Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Cc:

  	
  General Counsel,
  Array

  	
   

  	
   

  
	
   

  	
  Mr. Larry Kahn,
  InterMune

  	
   

  	
   

  

 

 

Acknowledged and Agreed:

Array BioPharma Inc.

	
  By:

  	
   

  	
   

  
	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  
	
  Title:

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