Document:

Exhibit 10.4

 

GLEAVE SERVICES AGREEMENT

 

THIS AGREEMENT, made as of the 21st day of December, 2001
between:

 

DR. MARTIN
GLEAVE, an individual residing in Vancouver,
British Columbia (hereinafter referred to as “Gleave”)

 

-and-

 

ONCOGENEX
TECHNOLOGIES INC. a corporation incorporated
under the laws of Canada.

 

RECITALS:

 

WHEREAS the Corporation has been formed in order to pursue the research,
development and commercialization of oncology therapeutics and diagnostics
acquired or developed by the Corporation;

 

AND
WHEREAS Gleave owns or controls 4,100,000
common shares of the Corporation;

 

AND
WHEREAS Gleave has agreed to perform certain
functions and services pursuant to the terms of this Agreement for the purposes
of achieving the Gleave Milestones;

 

AND
WHEREAS Gleave has deposited 1,000,000 of
his common shares of the Corporation in escrow releasable upon the achievement
of the Gleave Milestones;

 

NOW
THEREFORE in consideration of the mutual
covenants and agreements herein contained and other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged)
the parties agree as follows:

 

1.              Definitions

 

Wherever used in this Agreement or the recitals or schedules hereto,
the following terms shall have the following meanings:

 

(a)                                  “Agreement” means this agreement and the schedules hereto, as they may be
amended or supplemented from time to time by the parties in writing;

 

(b)                                 “Completion
of Phase I Clinical Milestone” means the completion
of a phase I clinical study by the Corporation to evaluate OGX-011 in prostate
cancer including accrual and data analysis;

 

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

 

 

(c)                                  “Confidential
Information” means information which is
confidential to the Corporation or in which the Corporation has a proprietary
interest, including but not limited to:

 

(i)                                     information
relating to the Corporation’s finances, the Corporation’s business plans, practices
and strategies, including the Corporation’s patent strategies;

 

(ii)                                  the
Technology and Corporation Intellectual Property and information relating to
the Technology and Corporation Intellectual Property, including production
data, technical and engineering data, test data and test results, the status
and details of research and development of any product or services, and
information regarding acquiring, protecting, enforcing and licensing
proprietary rights (including patents, copyrights and trade secrets);

 

(iii)                               enhancements,
modifications, additions, other improvements or work product resulting from or
related to work or projects performed or to be performed by the Corporation
related to the Technology or Corporation Intellectual Property, including, but
not limited to, the interim and final lines of inquiry, hypotheses, research
and conclusions related thereto and the methods, processes, procedures,
analysis, techniques and audits used in connection with the Technology or
Corporation Intellectual Property; and

 

(iv)                              the
information and materials referred to in Section 14 hereof.

 

(d)                                 “Corporation”
means OncoGenex Technologies Inc. together with its
affiliates and subsidiaries;

 

(e)                                  “Corporation
Intellectual Property” means all ideas, concepts,
business and trade names, trademarks, know-how, trade secrets, inventions,
improvements, devices, methods, processes and discoveries, whether patentable
or not, and whether or not reduced to writing or other tangible form or to
actual or constructive practice which: (i) are part of the Technology
licensed to the Corporation under the UBC Licenses; (ii) are conceived,
created or developed by Gleave through the performance of his duties under Section 2
hereof; (iii) are licensed or assigned to the Corporation or otherwise
developed or acquired on behalf of or by the Corporation; (iv) result from
the use of the premises or property (including equipment, supplies or
Confidential Information) owned, used, leased or licensed by the Corporation or
which reasonably relates to its business; or (v) are enhancements,
modifications, additions, or other improvements to the foregoing or the
Technology or work product resulting from or related to work or projects
performed or to be performed by the Corporation related to the foregoing or the
Technology;

 

(f)                                    “Escrowed Shares”
means 1,000,000 common shares of the Corporation registered in the name of
Gleave and subject to the Escrow Agreement;

 

(g)                                 “Gleave
Escrow Agreement” means the escrow agreement dated December 21st
, 2001 and between Gleave, the Corporation, MOI Escrow Services Ltd.;

 

2

 

(h)                                 “Gleave
Milestones” shall have the meaning ascribed thereto
pursuant to Section 3 hereto;

 

(i)                                     “Initiation of Phase I Clinical Milestone” means the initiation of a phase I clinical study by the Corporation
to evaluate OGX-011 in prostate cancer, and authorized by either the
Therapeutic Products Directorate of Canada or the Federal Drug Administration
of the United States of America;

 

(j)                                     “Negative Waiver” means
a waiver by Gleave in favour of the University of British Columbia of all of
Gleave’s economic interests and rights to revenue streams in respect of the
Technology as contemplated by Policy 88 of the University of British Columbia,
such waiver made for the purposes of enabling the Corporation to negotiate a
reduced fee in respect of the UBC Licenses with the University of British
Columbia in respect of the Technology and such other intellectual property
licensed to the Corporation from the University of British Columbia as the
parties may agree;

 

(k)                                  “OGX-011” means an antisense inhibitor of Clusterin having the sequence
[***], with phosphorothioate linkages throughout and in which bases [***] and
[***] contain 2’-O-methoxyethyl sugar modifications;

 

(l)                                     “Technology” means the
technology as listed and described in Schedule “A” hereto;

 

(m)                               “Term” shall have the meaning ascribed thereto in Section 5 hereof;

 

(n)                                 “UBC
Licenses” means the licenses entered into by the
University of British Columbia and the Corporation effective November 1,
2001 which define the terms under which the Corporation has acquired an
exclusive license to the Technology.

 

2.              Gleave
Services

 

2.1                                 Gleave agrees to perform all functions normally associated with
the position of a Chief Scientific Officer (“CSO”) for the Term of this
Agreement and shall oversee the scientific development of the Technology and
the Corporation Intellectual Property by the Corporation. Gleave shall perform all
duties related to the functions of a CSO, including all of the following:

 

(a)                                  management
of scientific collaborations;

 

(b)                                 co-develop
and on-going modification of a commercialization plan;

 

(c)                                  participate
in establishing the strategic direction of the Corporation;

 

(d)                                 participate
in establishing and managing strategic alliances;

 

(e)                                  co-develop
appropriate government grant applications, including but not limited to
Industrial Research Assistance Program (IRAP) and Science Council of British
Columbia;

 

3

 

(f)                                    participate
in meetings and presentations requiring scientific representation of the
Corporation;

 

(g)                                 participate
in the organization of appropriate advisory teams or boards;

 

(h)                                 enhance
and develop the Technology and Corporation Intellectual Property and pursue
inventions and other valuable creations; and

 

(i)                                     provide
the Negative Waiver and execute all documents necessary to effect same.

 

2.2                                 Gleave shall be available to render such Gleave Services in good
faith as reasonably requested by the Corporation. The Corporation acknowledges
that Gleave also has duties and responsibilities to the University of British
Columbia and that he is required to abide by the guidelines of the University
of British Columbia with respect to outside professional activities. Gleave
hereby represents and warrants that, to the best of his knowledge, such
guidelines shall not materially impair his ability to provide the Gleave
Services.

 

3.              Release of Shares From Escrow

 

3.1                                 Gleave shall deposit the Escrowed Shares with the Escrow Agent and
subject to the terms and conditions of the Escrow Agreement. Subject to the
terms of the Escrow Agreement, the Escrowed Shares will be released to Gleave
upon the occurrence of the following events (the “Gleave Milestones”):

 

(a)                                  as
to 500,000 Escrowed Shares, upon achieving the Initiation of Phase I Clinical
Milestone; and

 

(b)                                 as to
500,000 Escrowed Shares, upon achieving the Completion of Phase I Clinical
Milestone.

 

4.              Reimbursement for Expenses

 

4.1                                 The Corporation shall reimburse Gleave for all reasonable expenses
incurred by him on behalf of the Corporation, provided that such expenses have
been previously authorized by the Corporation. Such expenses shall include, but
not be limited to, travel, room and board costs, if any, incurred by
Gleave in attending meetings on behalf of the Corporation. The Corporation
shall make such payment within ten (10) days after receiving a statement
setting forth such expenses incurred and related receipts. 

 

5.              Term and Termination

 

5.1                                 Subject to Article 9, the term of this Agreement shall be for
two (2) years from the date hereof (the “Term”), provided that:

 

(a)                                  the
Corporation shall have the right to terminate this Agreement at an earlier date
if Gleave defaults on his obligations hereunder and the Corporation has given
written notice to Gleave of such default and Gleave has failed to correct such
default within thirty (30) days of such notice, and;

 

4

 

(b)                                 the
Corporation shall have the right to terminate this Agreement at an earlier date
on five (5) days prior written notice to Gleave if Gleave ceases to
beneficially own or control any shares of the Corporation.

 

6.              Release of Escrowed Shares on Early Termination

 

6.1           If
this Agreement is terminated by the Corporation before the end of the Term in
accordance with the provisions of Section 5(a) hereto, any Escrowed
Shares which are releasable due to satisfactory performance of either of the
Initiation of Phase I Clinical Milestone or the Completion of Phase I Clinical
Milestone but which, at the time of termination of this Agreement, have not yet
been issued to Gleave shall be released forthwith upon termination of this
Agreement.

 

7.              Non-Use and Non-Disclosure

 

7.1           Gleave
agrees that he will occupy a position of trust and confidence with respect to
the affairs and business of the Corporation and that it is reasonable and
necessary for Gleave to make non-use and non-disclosure covenants to be
effective during and after the Term hereof. Gleave acknowledges and agrees that
the Confidential Information has commercial value by virtue of its secrecy.
Gleave shall not: (a) use any Confidential Information for any purpose
other than to further the best interests of the Corporation only; or (b) disclose
to any third party any Confidential Information disclosed to him by or for the
Corporation, except to further the best interests of the Corporation and only
if the Board of Directors approves such disclosure in advance in writing. Without
limiting the foregoing, Gleave shall not publish any material containing
Confidential Information without the prior written consent of the Corporation
and shall submit draft materials of any publication containing Confidential
Information to the Board of Directors of the Corporation for prior review to
ensure that the Corporation is satisfied that it contains no Confidential
Information and shall allow a period of at least sixty (60) days for such
review. The foregoing restrictions on use and disclosure shall not apply to any
Confidential Information that:

 

(a)                                  the
Board of Directors, in its sole discretion, has granted prior express consent
for Gleave to disclose or use;

 

(b)                                 at
the time Gleave uses or discloses such Confidential Information to a third
party, has been previously made available to Gleave by a person, other than the
Corporation or anyone acting on behalf of the Corporation, having the right to
do so without breaching any obligation of non-use or confidentiality;

 

(c)                                  at
the time Gleave uses or discloses such Confidential Information to a third
party it has already become publicly known, for example, by publication,
through no breach of any obligation of non-use or confidentiality; or

 

(d)                                 is
required to be disclosed pursuant to a requirement of a governmental agency or
law so long as Gleave provides the Corporation with notice of such requirement
prior to any such disclosure.

 

5

 

8.              No Rights to Confidential Information

 

8.1           Nothing
in this Agreement shall be construed to grant to Gleave any express or implied
option, license or other rights, title or interest in or to the Confidential
Information, or obligate either party to enter into any agreement granting any
such right.

 

9.              Obligations Continue

 

9.1           Gleave’s
obligations under this Agreement with respect to Confidential Information are
to remain in effect until the expiration of any patent owned or licensed by the
Corporation related to that matter (if any), and for all other matters, for
five (5) years from the termination of this Agreement, and will exist and
continue in full force and effect for such period notwithstanding any breach or
repudiation, or any alleged breach or repudiation of this Agreement by the
Corporation.

 

10.       Representations, Warranties and Covenants

 

10.1                           Gleave represents, warrants and covenants to the Corporation that:

 

(a)                                  he
has the capacity to enter into and perform his obligations under this
Agreement;

 

(b)                                 the
entering into and performance of Gleave’s duties under this Agreement will not
breach or conflict with or create a conflict of interest under any agreement or
other obligation to any third party, including, but not limited to any
obligation to keep confidential the proprietary information of any third party;

 

(c)                                  Gleave
is not bound by any agreement with or obligation to any third party that
conflicts with Gleave’s obligations hereunder or that may affect the
Technology or the Corporation Intellectual Property;

 

(d)                                 Gleave will not improperly bring to the
Corporation or use any trade secrets, confidential information or other
proprietary information of any third party; and

 

(e)                                  Gleave
will not in performing this Agreement, knowingly infringe the intellectual    property rights of any third party.

 

6

 

11.       Non-Competition

 

11.1         Gleave
acknowledges that his relationship with the Corporation and knowledge of
Confidential Information will enable Gleave to put the Corporation at a
significant competitive disadvantage if Gleave is employed or engaged by or
becomes involved in a business competitive with that of the Corporation. Accordingly,
during the term of this Agreement and for a period of two (2) years after
any termination of this Agreement, Gleave will not be engaged, directly or
indirectly, individually, in partnership, in conjunction with any other person
or as an employee, consultant, adviser, principal, agent, member or proprietor
in any competitive business (direct or indirect) unless the Corporation
otherwise agrees.

 

11.2         The
restriction in this section will not prohibit Gleave from holding not more
than five percent of the issued shares of a public company listed on any
recognized stock exchange or traded on any bona fide “over
the counter” market anywhere in the world.

 

12.       No Solicitation 

 

12.1         Gleave
shall not during the term of this Agreement and for a period of two (2) years
after any termination of this Agreement, induce or solicit, attempt to induce
or solicit or assist any third party in inducing or soliciting any employee or
consultant of the Corporation to leave the Corporation or to accept employment
or engagement elsewhere.

 

12.2         Gleave
shall not directly or indirectly solicit, interfere with or endeavour to direct
or entice away from the Corporation any customer, client, strategic partner or
any person, firm or corporation in the habit of dealing with the Corporation.

 

13.       Ownership of Corporation Intellectual Property

 

13.1         Gleave
agrees that Gleave shall not acquire any right, title or interest in or to the
Corporation Intellectual Property, all of such right title and interest being
owned or licensed by the Corporation. The Corporation, its assignees and its
licensees, are not required to designate Gleave as the author of any
Corporation Intellectual Property. Gleave hereby waives in whole all moral
rights and agrees never to assert any moral rights which Gleave may have
in the Corporation Intellectual Property, the right to be associated with the
Corporation Intellectual Property, the right to restrain or claim damages for
any distortion, mutilation or other modification or enhancement of the
Corporation Intellectual Property and the right to restrain, use or reproduce
the Corporation Intellectual Property in any context and in connection with any
product, service, cause or institution and Gleave further confirms that the
Corporation may use or alter any such Corporation Intellectual Property as
the Corporation sees fit in its absolute discretion. Gleave agrees to disclose
to the Corporation, promptly and fully in writing and in complete enabling
detail, any and all Corporation Intellectual Property which is conceived or
created by Gleave. Title to such Corporation Intellectual Property and any
patents issued or copyrights obtained thereon (including any of the patents
listed in Appendix A hereto) shall be and remain in the Corporation (or with
the University of British Columbia if so required by the UBC Licenses). The
Corporation shall retain the exclusive right to use and practice the
Corporation Intellectual Property and any Canadian, U.S., or other patents
issuing thereon.

 

7

 

14.       Records

 

14.1                           Gleave shall keep complete, accurate and authentic notes, reference
materials, data and records of all Corporation Intellectual Property in the
manner and form requested by the Corporation and all such materials shall
be considered Confidential Information upon their creation.

 

15.       Patent Applications

 

15.1                           Gleave agrees that the Corporation or any entity designated by the
Corporation shall have the exclusive right, subject to any restrictions listed
in the UBC Licenses, at its sole cost and in its sole discretion, to apply for
and obtain patents or copyrights in respect of the Technology and the
Corporation Intellectual Property in Canada, the United States and all other
countries. Whenever requested to do so, both during the term of this Agreement
and after termination hereof, Gleave shall promptly at the sole cost of the
Corporation execute and deliver any and all documents for copyright protection
and any and all patent applications, assignments, oaths, declarations, or other
instruments that the Corporation shall deem desirable, including, without
limitation, those documents necessary to apply for and obtain, or to maintain
patents in Canada, the United States or any other country in respect of the
Technology and the Corporation Intellectual Property.

 

16.       Further Assurances

 

16.1                           Gleave shall do all further things that may be reasonably
necessary or desirable in order to give full effect to the foregoing. If Gleave’s
cooperation is required in order for the Corporation to obtain or enforce legal
protection of the Technology or the Corporation Intellectual Property following
the termination of this Agreement, Gleave shall provide that cooperation at the
sole cost of the Corporation provided that Gleave shall obtain the prior
written approval of the Corporation before incurring any such cost.

 

17.       Notices

 

17.1                           All notices, requests, demands or
other communications required or permitted to be given by one party to another
hereunder shall be given in writing by personal delivery or by registered mail,
postage prepaid, addressed to such other party or delivered to such other party
as follows:

 

(a)                                  if to
Gleave:

 

Dr. Martin Gleave

[***]

 

(b)                                 if to the Corporation:

 

OncoGenex Technologies Inc.

D-9, 2733 Heather Street

Vancouver, British
Columbia  V5Z 3J5

Facsimile no.: (604) 875-5604

 

8

 

Attention:                                         Scott Cormack, President

 

or at such other address of which notice is
given in writing from time to time and such notices, requests, demands or other
communications shall be deemed to have been received when delivered personally
or by courier, or if by facsimile, on the next business day after transmission,
or if mailed, on the fourth business day after the mailing thereof provided
that if any such notice, request, demand or other communications shall have
been mailed and if regular mail service shall be interrupted by strikes or
other irregularities on or before the fourth business day after the mailing
thereof, such notices, requests, demands or other communications shall be
deemed to have been received on the fourth business day following the
resumption of normal mail service.

 

18.       Governing Law

 

This Agreement
shall be governed and construed in accordance with the laws of British
Columbia.

 

19.       Assignment

 

Gleave may not
assign this Agreement, in whole or in part, without the prior written consent
of the Corporation, such consent to not be unreasonably withheld.

 

20.       Enurement

 

This Agreement shall be binding on and enure to the benefit of the
parties, their successors, permitted assigns and legal representatives.

 

21.       Severability

 

If any provision of this Agreement is held to be invalid or unenforceable,
the remaining provisions shall continue to be binding and enforceable on both
parties, and the invalid or unenforceable provision shall be severed from this
Agreement.

 

22.       Entire Agreement and Amendment

 

This Agreement constitutes the entire agreement between the parties as
to the subject matter of this Agreement. All prior negotiations,
representations, warranties, agreements and promises related to this Agreement
are superseded and merged into this document. The prior Gleave services agreement
dated September 6, 2000 between the parties is hereby terminated. This
Agreement shall not be amended, revised or modified without the prior written
consent of both parties.

 

23.       Counterparts

 

This Agreement may be signed in counterparts and by facsimile and
each of such counterparts shall constitute an original document and such
counterparts, taken together, shall constitute one and the same instrument.

 

9

 

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

 

 

	
  /s/ Sherry Tryssenaar

  	
   

  	
   

  	
  /s/ Martin Gleave

  	
   

  
	
  Witness

  	
   

  	
  DR. MARTIN GLEAVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ONCOGENEX TECHNOLOGIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Scott Cormack

  	
   

  
	
   

  	
   

  	
   

  	
  Scott Cormack, President

  	
   

  
								

 

10

 

Schedule A

 

Technology

 

1.                                       [***]

 

2.                                       [***]

 

3.                                       [***]

 

4.                                       [***]

 

5.                                       [***]

 

6.                                       [***]

 

7.                                       [***]

 

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

 

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

 

10.                                 All know-how, inventions, and improvements
related to any of the above.

 

11

 

GLEAVE SERVICES AMENDING
AGREEMENT

 

THIS AGREEMENT, made as of 1ST day of
January, 2002 between:

 

DR. MARTIN GLEAVE, an individual residing in
Vancouver, British Columbia (hereinafter referred to as “Gleave”)

 

-and-

 

ONCOGENEX TECHNOLOGIES INC. a corporation incorporated under
the laws of Canada (hereinafter referred to as the “Corporation”).

 

RECITALS:

 

WHEREAS the Corporation and Gleave
entered into a services agreement dated December 21, 2001 relating to
Gleave (the “Gleave Services Agreement”) providing certain services for the
benefit of the Corporation;

 

AND WHEREAS the Corporation and Gleave wish to
have Gleave participate in the compensation program of the Corporation,
including its Employee Stock Option Plan;

 

NOW THEREFORE in consideration of the mutual
covenants and agreements herein contained and other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged)
the parties agree as follows:

 

1.                                      CONSTRUCTION

 

Terms having capitalized first letter and not
otherwise defined herein shall have the meaning ascribed to them in the Gleave
Services Agreement.

 

2.                                      AMENDMENT

 

The Gleave Services Agreement is hereby
amended by adding the following sections after Section 3.1:

 

3.2                                 Gleave shall be entitled to the
base compensation as set out in Schedule “B” hereto.

 

3.3                                 Gleave shall be entitled to an
annual cash bonus as set out in Schedule “C” hereto.

 

3.4                                 Gleave shall be entitled to
participate in the Corporation’s share option plan as set forth in Schedule “D”
attached hereto and in accordance with its terms as amended from time to time.

 

 

 

3.                                      GENERAL

 

Except as provided in Article 2 herein,
the Gleave Services Agreement remains unamended and in full force and effect
between the parties to this Agreement.

 

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

 

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

 

 

	
  /s/ Sherry Tryssenaar

  	
   

  	
  /s/ Martin Gleave

  
	
  Witness

  	
   

  	
  DR. MARTIN GLEAVE

  
	
  S. Tryssenaar

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ONCOGENEX TECHNOLOGIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/
  Scott Cormack

  
	
   

  	
   

  	
   

  	
  (Authorized
  Signatory)

  

 

2

 

SCHEDULE B

 

ONCOGENEX TECHNOLOGIES
INC.

 

Compensation

 

B (1)                       Gleave
shall be entitled to an annual consulting fee equal to $45,000 (the “Consulting
Fee”) for the Term of the Agreement. The Consulting Fee shall be paid to Gleave
in equal monthly payments of $3,750 per month within 10 days following the end
of each month.

 

B (2)                       Gleave and
OncoGenex hereby confirm that Gleave is acting as an independent contractor to
OncoGenex and will, at Gleave’s own expense, pay all income taxes, unemployment
insurance premiums, Canada Pension Plan premiums, Workers’ Compensation
contributions, and all other taxes, charges and contributions levied or
required by competent governmental authorities in Canada in respect of monies
paid to Gleave under this Agreement and OncoGenex will not have any obligation
whatsoever to compensate Gleave or persons working with Gleave for annual
vacation, sickness, accident or disability, whether or not resulting from the
performance by Gleave of obligations of Gleave under this Agreement, retirement
pension or benefits or any benefits resulting from the expiration of the Term
of the Agreement or for any other benefits accorded by OncoGenex to any of its
employees.

 

 

SCHEDULE C

 

ONCOGENEX TECHNOLOGIES
INC.

 

Bonus
Plan – Milestones

 

C (1)                       Gleave
shall be entitled to an annual cash bonus equal to $45,000 (the “Bonus”) for
the Term of the Agreement. Any Bonus paid will be allocated to the achievement
of particular milestones and overall performance as follows:

 

[***]

 

 

SCHEDULE D

 

ONCOGENEX
TECHNOLOGIES INC.

 

STOCK
OPTION PLAN

 

 

SCHEDULE “A”

 

ONCOGENEX TECHNOLOGIES INC.

 

STOCK OPTION PLAN

OPTION AGREEMENT

 

This Option Agreement is entered into between OncoGenex Technologies
Inc. (the “Company”) and the
Optionee named below pursuant to the Company Stock Option Plan as amended (the “Plan”), a copy of which is attached hereto,
and confirms that:

 

1.                                       on March 1, 2002 (the “Grant Date”);

 

2.                                       Dr. Martin Gleave (the “Optionee”);

 

3.                                       was granted the option (the “Option”) to purchase 100,000 common shares
(the “Option Shares”) of the
Company;

 

4.                                       for the price (the “Option Price”) of $0.80 per share;

 

5.                                       which shall be exercisable (“Vested”) in whole or in part in the
following amounts as follows:

 

i)                 as to 25,000 shares for each of the first two
years following the Grant Date, 12,500 shares for each approval by the Board to
acquire additional drug target or therapeutic.

 

ii)              as to 25,000 shares for each of the first two
years following the Grant Date, [***].

 

6.                                       terminating on March 1, 2009
(the “Expiry Date”);

 

all on the terms and subject to the conditions set out in the Plan. For
greater certainty, once Option Shares have become Vested, they continue to be
exercisable until the termination or cancellation thereof as provided in this
Option Agreement and the Plan.

 

By signing this Option Agreement, the Optionee acknowledges that the
Optionee has read and understands the Plan and agrees to the terms and
conditions of the Plan and this Option Agreement.

 

In order to exercise this Option, the Optionee must deliver to the
Company:

 

(a)                                  a notice of exercise in the form attached
hereto as Exhibit No. 1, duly completed and executed together with a
certified cheque for payment for all Option Shares in respect of which the
Option is exercised; and

 

(b)                                 if required by the Company in
order for the Company to comply with the Shareholders’ Agreement (as defined in
the Plan), a counterpart to the Shareholders’ Agreement in a form acceptable
to the Company duly and originally executed by the Optionee.

 

 

IN WITNESS WHEREOF the parties hereto have executed
this Option Agreement as of the 1st  day
of March , 2002.

 

 

	
  SIGNED, SEALED AND DELIVERED

  	
   

  	
  )

  	
   

  
	
  in the presence of

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
  )

  	
   

  
	
   

  	
   

  	
  )

  	
   

  
	
  /s/ Sherry Tryssenaar

  	
   

  	
  )

  	
  /s/ Martin Gleave

  
	
  Witness

  	
   

  	
  )

  	
  OPTIONEE

  
	
  S. Tryssenaar

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  ONCOGENEX TECHNOLOGIES INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Scott Cormack

  
					

 

2

 

EXHIBIT NO. 1
TO OPTION AGREEMENT

 

EXERCISE
FORM

 

	
  TO:

  	
  OncoGenex Technologies Inc.

  	
   

  
	
   

  	
  D-9, 2733 Heather Street

  	
   

  
	
   

  	
  Vancouver, British
  Columbia V5Z 3J5

  	
   

  
	
   

  	
  Telephone:

  	
  604-875-5686

  	
   

  
	
   

  	
  Facsimile:

  	
  604-875-5604

  	
   

  
	
   

  	
  Attention:

  	
  Mr. Scott D. Cormack

  	
   

  

 

I, the undersigned holder of the attached Option Agreement with
OncoGenex Technologies Inc. (the “Company”),
hereby exercise my Option and agree to
acquire                  
common shares of the Company (the “Acquired
Shares”) and enclose a certified cheque in the amount of
$                    
representing the exercise price (Option Price multiplied by number of shares
being acquired) for the Acquired Shares.

 

I hereby request that the Company issue the Acquired Shares to me under
the OncoGenex Technologies Inc. Stock Option Plan and irrevocably direct that
the Acquired Shares be issued registered in the following name and address and
delivered as follows:

 

	
  Name in Full

  	
   

  	
  Registered Address

  	
   

  	
  Delivery Address

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

(PLEASE PRINT IN FULL THE NAME IN WHICH CERTIFICATES ARE TO BE ISSUED.)

 

DATED this           
day of
                                        ,
                    .

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature of Optionee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name of Optionee

  

 

3

 

GLEAVE
SERVICES SECOND AMENDING AGREEMENT

 

THIS AGREEMENT, made as of 24th day of September, 2003
between:

 

DR. MARTIN GLEAVE, an individual residing in Vancouver, British
Columbia (hereinafter referred to as “Gleave”)

 

-and-

 

ONCOGENEX TECHNOLOGIES INC. a corporation incorporated under the laws of
Canada (hereinafter referred to as the “Corporation”).

 

RECITALS:

 

WHEREAS the Corporation and Gleave entered into a
services agreement dated December 21, 2001 (the “Gleave Services Agreement”)
and an amending agreement dated March 1, 2002 (the “Gleave Services First
Amending Agreement”) relating to Gleave providing certain services for the
benefit of the Corporation;

 

AND WHEREAS the Corporation and Gleave wish to amend the
term and Gleave’s participation in the compensation program of the Corporation,
including its Employee Stock Option Plan;

 

NOW THEREFORE in consideration of the mutual covenants and
agreements herein contained and other good and valuable consideration (the
receipt and sufficiency of which are hereby acknowledged) the parties agree as
follows:

 

1.                                      CONSTRUCTION

 

Terms having capitalized
first letter and not otherwise defined herein shall have the meaning ascribed
to them in the Gleave Services Agreement.

 

2.                                      AMENDMENT

 

2.1                                 Article 5
of the Gleave Services Agreement is hereby deleted and replaced with the
following:

 

“5.1                     Subject
to Article 9, the term of this Agreement shall be from the date first
written above until December 31, 2005 (the “Term”), provided that:

 

(a)                the Corporation shall have the right to
terminate this Agreement at an earlier date if Gleave defaults on his
obligations hereunder and the Corporation has given written notice to Gleave of
such default and Gleave has failed to correct such default within thirty (30)
days of such notice, and;

 

 

 

(b)               the Corporation shall have the right to
terminate this Agreement at an earlier date on five (5) days prior written
notice to Gleave if Gleave ceases to beneficially own or control any shares of
the Corporation.

 

2.2                                 The Gleave Services Amending Agreement is
hereby amended by replacing Schedule “B” and Schedule “C” thereto with Schedule “B” and Schedule “C” attached hereto, and;

 

2.3                                 In addition to the stock options granted
pursuant to the Gleave Services First Amending Agreement, Gleave shall be
entitled to participate in the Corporation’s share option plan as set forth in Schedule “D” attached hereto and in accordance with its
terms as amended from time to time.

 

3.                                      GENERAL

 

This Agreement, the Gleave Services First Amending
Agreement and the Gleave Services Second Amending Agreement shall be the whole
and complete agreements between the Parties with respect to Gleave’s provision
of services to the Corporation; these agreements replace and supersede any and
all previous verbal or written agreements that may have been entered into.
For clarity, except as provided in Article 2 herein, the Gleave Services
Agreement remains unamended and in full force and effect between the parties to
this Agreement. This Agreement may not be amended or modified except by
written amendment signed between the Parties hereto.

 

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

 

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

 

 

	
  /s/ Sherry Tryssenaar

  	
   

  	
  /s/ Martin Gleave

  
	
  Witness

  	
   

  	
  DR. MARTIN GLEAVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ONCOGENEX TECHNOLOGIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Per:

  	
  /s/ Sherry Tryssenaar

  
	
   

  	
   

  	
   

  	
  (Authorized Signatory)

  

 

 

SCHEDULE B

 

ONCOGENEX
TECHNOLOGIES INC.

 

Compensation

 

Effective September •, 2003:

 

B (1)                       Gleave
shall be entitled to an annual consulting fee equal to $60,000 (the “Consulting
Fee”). The Consulting Fee shall be paid to Gleave in equal monthly payments of
$5,000 per month within 10 days following the end of each month.

 

B (2)                       For travel
outside of the province of British Columbia as requested by the Chief Executive
Officer or President of OncoGenex, Gleave shall be reimbursed $2,000 per day
(the “Travel Per Diem”). The Travel Per Diem shall be paid to Gleave within 10
days following the receipt by OncoGenex of an invoice received from Gleave in
respect of such travel.

 

B (3)                       Gleave and
OncoGenex hereby confirm that Gleave is acting as an independent contractor to
OncoGenex and will, at Gleave’s own expense, pay all income taxes, unemployment
insurance premiums, Canada Pension Plan premiums, Workers’ Compensation
contributions, and all other taxes, charges and contributions levied or
required by competent governmental authorities in Canada in respect of monies
paid to Gleave under this Agreement and OncoGenex will not have any obligation
whatsoever to compensate Gleave or persons working with Gleave for annual
vacation, sickness, accident or disability, whether or not resulting from the
performance by Gleave of obligations of Gleave under this Agreement, retirement
pension or benefits or any benefits resulting from the expiration of the Term
of the Agreement or for any other benefits accorded by OncoGenex to any of its
employees.

 

 

SCHEDULE C

 

ONCOGENEX
TECHNOLOGIES INC.

 

Bonus Plan – Milestones

 

C (1)                       Gleave
shall be entitled to an annual cash bonus equal to $45,000 (the “Bonus”) for
fiscal year 2003 and then $60,000 for each of fiscal years 2004 and 2005. The Bonus shall be based on objectives as
established by the Board and communicated to Gleave. Any Bonus awarded for
Gleave’s performance during fiscal year 2003 will be allocated to the
achievement of overall corporate performance and to achievement of particular
individual milestones as set forth below. New milestones for the Bonus in
subsequent fiscal years will be set on an annual basis by the Compensation
Committee and approved by the Board.

 

[***]

 

 

SCHEDULE D

 

ONCOGENEX TECHNOLOGIES INC.

 

STOCK
OPTION PLAN

 

 

ONCOGENEX TECHNOLOGIES INC.

 

AMENDED AND RESTATED STOCK OPTION PLAN

 

1.                                      PURPOSE
OF THE PLAN

 

OncoGenex Technologies Inc. (the “Company”)
hereby establishes a stock option plan for directors, officers, employees and
Service Providers (as defined below) of the Company and its subsidiaries, to be
known as the “OncoGenex Technologies Inc. Stock Option Plan” (the “Plan”).

 

2.                                      DEFINITIONS

 

In this Plan, the following terms shall have
the following meanings:

 

2.1                                 “Board” means the
Board of Directors of the Company.

 

2.2                                 “Change
of Control” means the acquisition after December 21, 2001 by any person or
by any person and a Joint Actor, whether directly or indirectly, of voting
securities (as defined in the Securities Act) of the Company, which, when added
to all other voting securities of the Company at the time held by such person
or by such person and a Joint Actor, totals for the first time not less than
fifty percent (50%) of the outstanding voting securities of the Company or the
votes attached to those securities are sufficient, if exercised, to elect a
majority of the Board of Directors of the Company.

 

2.3                                 “Common
Shares” means the common shares of the Company.

 

2.4                                 “Company”
means OncoGenex Technologies Inc.

 

2.5                                 “Corporate
Reorganization” has the meaning ascribed to it in Subsection 5.3.

 

2.6                                 “Disability”
means:

 

(a)                                  any period of 365 consecutive days
during which the Optionee is prevented, notwithstanding reasonable efforts to
accommodate the disability, from performing his/her essential duties for the
Company for more than 182 days in the aggregate by reason of illness or mental
or physical disability;
or

 

(b)                                 the Optionee being found of unsound
mind or incapable of managing his/her own affairs by the final judgement or
order of a court of competent jurisdiction.

 

 

2.7                                 “Equity
Securities” means:

 

(i)                                     shares
or any other security of the Company that carries the residual right to
participate in the earnings of the Company and, on liquidation, dissolution or
winding-up, in the assets of the Company, whether or not the security carries
voting rights;

 

(ii)                                  any
warrants, options or rights entitling the holders thereof to purchase or
acquire any such securities; or

 

(iii)                               any
securities issued by the Company which are convertible or exchangeable into
such securities.

 

2.8                                 “Expiry
Date” means the date set by the Board under Section 3.1 of the Plan, as
the last date on which an Option may be exercised.

 

2.9                                 “Founder”
means Dr. Martin Gleave and Gleave HoldCo.

 

2.10                           “Fully
Converted Basis” at any time means that all shares convertible into Common
Shares outstanding at that time shall be deemed to have been fully converted,
in accordance with the rights, privileges, restrictions and conditions attached
thereto, into Common Shares and Common Shares issuable as a result thereof
shall be deemed to have been issued and to form part of the holdings
of the Person(s) entitled to receive such Common Shares.

 

2.11                           “Fully
Diluted Basis” at any time means that all options, warrants or other rights of
any kind to acquire Common Shares and all securities convertible or
exchangeable into Common Shares outstanding at that time shall be deemed to
have been fully exercised, converted or exchanged, as the case may be, and
the Common Shares issuable as a result thereof shall be deemed to have been
fully issued and to form part of the holdings of the Person(s)
entitled to receive such Common Shares.

 

2.12                           “Gleave
HoldCo” means 603356 B.C. Ltd.

 

2.13                           “Grant
Date” means the date specified in an Option Agreement as the date on which an
Option is granted.

 

2.14                           “Investment
Agreement” means the investment agreement dated September 24, 2003 among
the Company, the Major Investors and Scott Cormack;

 

2.15                           “Joint
Actor” means a person acting “jointly or in concert with” another person as
that phrase is interpreted in Section 96 of the Securities Act, provided
however, if more than one Major Investor concurrently acquires Shares pursuant
to the Shareholders’ Agreement, the Investment Agreement or the rights
attaching to their Shares, those Major Investors shall not be considered Joint
Actors of each other solely by reason of such acquisition.

 

 

2.16                           “Major
Investors” means Ventures West 7 Limited Partnership (“Ventures West Canada”),
Ventures West 7 U.S. Limited Partnership (“Ventures West U.S.”), H.I.G. Horizon
Corp. (“H.I.G. Horizon”), Working Opportunity Fund (EVCC) Ltd. (“WOF”),
Business Development Bank of Canada (“BDC”) and Milestone Medica Corporation (“MMC”)
(or their respective successors or permitted assigns) and “Major Investor”
means any one of them, provided that if any of Ventures West Canada, Ventures
West U.S., H.I.G. Horizon, WOF, BDC and MMC ceases to be a shareholder of the
Company without successor or assignee then “Major Investors” or “Major Investor”
means the remaining parties or party alone.

 

2.17                           “Offer”
has the meaning ascribed to it in Subsection 4.5.

 

2.18                           “Option”
means an option to purchase Shares granted pursuant to this Plan.

 

2.19                           “Option
Agreement” means an agreement, in the form attached hereto as Schedule ”A”,
whereby the Company grants to an Optionee an Option.

 

2.20                           “Optionee”
means each of the directors, officers, employees and Service Providers granted
an Option pursuant to this Plan and their heirs, executors and administrators
and an Optionee may also be a corporation or family trust controlled by an
individual eligible for an Option grant pursuant to this Plan.

 

2.21                           “Option
Price” means the price per Share specified in an Option Agreement, adjusted
from time to time in accordance with the provisions of Section 5.

 

2.22                           “Option
Shares” means the aggregate number of Shares, which an Optionee may purchase
under an Option.

 

2.23                           “Person”
means any individual, partnership, joint venture, syndicate, sole
proprietorship, company or corporation with or without share capital, trust,
trustee, executor, administrator, or other legal personal representatives,
regulatory body or agency, government or governmental agency, authority or
entity howsoever designated or constituted.

 

2.24                           “Plan”
has the meaning ascribed to it in Section 1.

 

2.25                           “Purchaser”
has the meaning ascribed to it in Subsection 6.1(a).

 

2.26                           “Securities
Act” means the Securities Act, R.S.B.C. 1996, c.418, as amended, as at the date
hereof.

 

2.27                           “Selling
Shareholders” has the meaning ascribed to it in Subsection 6.1(a).

 

2.28                           “Service
Provider” means:

 

 

(a)                                  any
person or company engaged to provide management, consulting or advisory
services for the Company or for any entity controlled by the Company, provided
such person is not an employee of the Company; and

 

(b)                                 any
person who is providing management, consulting or advisory services to the
Company or to any entity controlled by the Company indirectly through a company
that is a Service Provider under Subsection 2.28(a), provided such person
is not an employee of the Company.

 

2.29                           “Shareholders’
Agreement” means the shareholders’ agreement dated as of the date of the first
issuance of Class B Preferred shares by the Company and made among the
Company, the Major Investors, the Founder and Scott Cormack, as amended and
restated from time to time.

 

2.30                           “Share
Reorganization” has the meaning ascribed to it in Subsection 5.1.

 

2.31                           “Shares”
means the common shares in the capital of the Company as constituted on the date
of this agreement provided that, in the event of any adjustment pursuant to Section 5,
“Shares” shall thereafter mean the shares or other property resulting from the
events giving rise to the adjustment.

 

2.32                           “Substantial
Sale” has the meaning ascribed to it in Subsection 6.1(a).

 

2.33                           “Transfer”
includes any sale, exchange, assignment, gift, bequest, disposition, mortgage,
charge, pledge, encumbrance, grant of a security interest or other arrangement
by which possession, legal title or beneficial ownership passes from one Person
to another, or to the same Person in a different capacity, whether or not
voluntarily and whether or not for value, and any agreement to effect any of
the foregoing; and the words “Transferred”, “Transferring” and similar words
have corresponding meanings.

 

2.34                           “Unissued
Option Shares” means the number of Shares, at a particular time, which have
been allotted for issuance upon the exercise of an Option but which have not
been issued, as adjusted from time to time in accordance with the provisions of
Section 5, such adjustments to be cumulative.

 

2.35                           “Vested”
means that an Option has become exercisable in respect of a number of Option
Shares by the Optionee pursuant to the terms of the Option Agreement.

 

3.                                      GRANT
OF OPTIONS

 

3.1                                 Option
Terms

 

The Board may from time to time
authorize the issue of Options to directors, officers, employees and Service
Providers of the Company and its subsidiaries.

 

 

The Option Price under each Option shall be
determined by the Board at the time of issue of the Option and shall be subject
to adjustment as provided in Section 5.

 

The
Expiry Date for each Option shall be set by the Board at the time of issue of
the Option and shall not be more than seven years after the Grant Date. Options
shall not be assignable (or transferable), except to a corporation or family
trust controlled by an individual eligible for an Option grant pursuant to this
Plan or as otherwise provided herein.

 

3.2                                 Limits
on Shares Issuable on Exercise of Options

 

The maximum number of Shares which may be
issuable pursuant to options granted under the Plan shall be equal to a maximum
of 15% of the number of Shares outstanding from time to time on a Fully Diluted
Basis or such additional amount as may be approved from time to time by
the Board, but in any event not to exceed 1,173,312 Shares.

 

3.3                                 Option
Agreements

 

Each Option shall be confirmed by the
execution of an Option Agreement. Each Optionee shall have the option to
purchase from the Company the Option Shares at the time and in the manner set
out in the Plan and in the Option Agreement applicable to that Optionee. The
execution of an Option Agreement shall constitute conclusive evidence that it
has been completed in compliance with this Plan.

 

4.                                      EXERCISE
OF OPTION

 

4.1                                 When
Options May be Exercised

 

Subject to Sections 4.3 and 4.4, an Option may be
exercised to purchase any number of Shares up to the number of Vested Unissued
Option Shares at any time after the Grant Date up to 4:30 p.m. local time
on the Expiry Date and shall not be exercisable thereafter.

 

4.2                                 Manner
of Exercise

 

The Option shall be exercisable by delivering
to the Company a notice specifying the number of Shares in respect of which the
Option is exercised together with payment in full of the Option Price for each
such Share.

 

Upon notice and payment there will be a
binding contract for the issue of the Shares in respect of which the Option is
exercised, upon and subject to the provisions of the Plan. Delivery of the
Optionee’s cheque payable to the Company in the amount of the Option Price
shall constitute payment of the

 

 

Option Price unless the cheque is not
honoured upon presentation in which case the Option shall not have been validly
exercised.

 

4.3                                 Vesting
of Option Shares

 

Subject to Section 4.4, each Option
shall become Vested in accordance with the Option Agreement or as may be
determined by the Board on the Grant Date or as otherwise provided herein.

 

4.4                                 Termination
Of Employment

 

If an Optionee ceases to be a director,
officer, employee or Service Provider of the Company or one of the Company’s
subsidiaries, his or her Option shall be exercisable as follows:

 

(a)                                  Death
or Disability

 

If the Optionee ceases to be a
director, officer, employee or Service Provider of the Company or a subsidiary
of the Company, due to his or her death or Disability or, in the case of an
Optionee that is a company, the death or Disability of the person who provides
management or consulting services to the Company or to any entity controlled by
the Company, the Option then held by the Optionee shall be exercisable to
acquire Vested Unissued Option Shares up to the Expiry Date or the date that is
six (6) months after the Optionee ceases to be a director, officer,
employee or Service Provider, which ever is sooner, after which the Option held
by such Optionee shall be cancelled.

 

(b)                                 Termination
For Cause

 

If the Optionee, or in the case
of an Option granted to an Optionee who falls under the definition of Service
Provider set out in Subsection 2.28(b), the Optionee’s employer, ceases to
be a director, officer, employee or Service Provider of the Company or a
subsidiary of the Company as a result of termination for cause, as that term is
interpreted by the courts of the jurisdiction in which the Optionee, or, in the
case of the Optionee who satisfies the definition of Service Provider set out
in Subsection 2.28(b), the Optionee’s employer, is employed or engaged,
any outstanding Option held by such Optionee on the date of such termination,
whether in respect of Option Shares that are Vested or not, shall be cancelled
as of that date.

 

 

(c)                                  Early
Retirement, Voluntary Resignation or Termination Other than For Cause

 

If the Optionee or, in the case of an Option
granted to an Optionee who falls under the definition of Service Provider set
out in Subsection 2.28(b), the Optionee’s employer, ceases to be a
director, officer, employee or Service Provider, as the case may be, of
the Company or a subsidiary of the Company due to his or her retirement at the
request of his or her employer earlier than the normal retirement date under
the Company’s retirement policy then in force, or due to his or her termination
by the Company other than for cause, or due to his or her voluntary
resignation, the Option then held by the Optionee shall be exercisable to
acquire Vested Unissued Option Shares as follows:

 

(i)                                     subject
to Subsection 4.4(c)(ii), in the case of an employee of the Company or of
a subsidiary of the Company, until the Expiry Date or the date which is sixty
(60) days after the Optionee ceases to be an employee of the Company or a
subsidiary of the Company, which ever is sooner, after which the Option held by
such Optionee shall be cancelled;

 

(ii)                                  in
the case of a director and/or officer who is also an employee of the Company or
of a subsidiary of the Company, until the Expiry Date or the date which is one (1) year
after the Optionee ceases to be an employee of the Company or a subsidiary of
the Company, which ever is sooner, after which the Option held by such Optionee
shall be cancelled;

 

(iii)                               in
the case of a director and/or officer who is not also an employee of the
Company or a subsidiary of the Company, or in the case of a Service Provider,
until the Expiry Date of the Option.

 

For greater certainty, an Option that had not
become Vested in respect of certain Unissued Option Shares at the time that the
relevant event referred to in this Section 4.4 occurred, shall not be or
become exercisable in respect of such Unissued Option Shares and shall be
cancelled.

 

Notwithstanding that an Option may have
been transferred to a family trust, the Option will terminate after the
transferor of the Option ceases to be a director, officer, employee or Service
Provider of the Company or a subsidiary of the Company, on the date specified
in and in accordance with Subsection 4.4(a), (b) or (c), as the case may be.

 

 

4.5                                 Effect
of a Take-over Bid

 

If a bona  fide offer (an “Offer”) for Shares is made to the Optionee
or to shareholders of the Company generally or to a class of shareholders which
includes the Optionee, which Offer, if accepted in whole or in part, would
result in a Change of Control , the Company shall, immediately upon receipt of
notice of the Offer, notify each Optionee who is an officer or director of the
Company of full particulars of the Offer, whereupon all Option Shares subject
to such Option will become Vested and the Option may be exercised in whole or
in part by the Optionee so as to permit the Optionee to tender the Option
Shares received upon exercise, pursuant to the Offer. However, if:

 

(a)                                  the
Offer is not completed within the time specified therein; or

 

(b)                                 all
of the Option Shares tendered by the Optionee pursuant to the Offer are not
taken up or paid for by the offeror in respect thereof,

 

then the Option Shares received
upon such exercise, or in the case of clause (b) above, the Option Shares
that are not taken up and paid for, may be returned by the Optionee to the
Company and reinstated as authorized but unissued Shares and with respect to
such returned Option Shares, the Option shall be reinstated as if it had not
been exercised and the terms upon which such Option Shares were to become
Vested pursuant to Section 4.3 shall be reinstated. If any Option Shares
are returned to the Company under this Section 4.5, the Company shall
immediately refund the exercise price to the Optionee for such Option Shares.

 

4.6                                 Acceleration
of Expiry Date

 

If at any time when an Option granted under
the Plan remains unexercised with respect to any Unissued Option Shares, an
Offer is made by an offeror, the Board may, upon notifying each Optionee of
full particulars of the Offer, declare all Option Shares issuable upon the
exercise of Options granted under the Plan, Vested, and declare that the Expiry
Date for the exercise of all unexercised Options granted under the Plan is
accelerated so that all Options will either be exercised or will expire prior
to the date upon which Shares must be tendered pursuant to the Offer. After a
declaration by the Board under this Section 4.6, the provisions of Section 4.5
will continue to apply to the Option.

 

 

4.7                                 Effect
of a Change of Control

 

If a Change of Control occurs, 50% (or such
larger percentage as may be determined by the Board) of all Option Shares
subject to each outstanding Option which have not yet Vested will become
Vested, whereupon such Option may be exercised in whole or in part by the
Optionee to the extent that the Option is Vested as a result of this Section 4.7.

 

4.8                                 Exclusion
From Severance Allowance, Retirement Allowance or Termination Settlement

 

If the Optionee, or, in the case of an Option granted
to an Optionee who falls under the definition of Service Provider set out in
Subsection 2.28(b), the Optionee’s employer, retires, resigns or is
terminated from employment or engagement with the Company or any subsidiary of
the Company, the loss or limitation, if any, pursuant to the Option Agreement
with respect to the right to purchase Option Shares which were not Vested at
that time or which, if Vested, were cancelled, shall not give rise to any right
to damages and shall not be included in the calculation of nor form any part of
any severance allowance, retiring allowance or termination settlement of any
kind whatsoever in respect of such Optionee.

 

4.9                                 Shares
Not Acquired

 

Any Unissued Option Shares not acquired by an
Optionee under an Option which has expired may be made the subject of a further
Option pursuant to the provisions of the Plan.

 

5.                                      ADJUSTMENT
OF OPTION PRICE AND NUMBER OF OPTION SHARES

 

5.1                                 Share
Reorganization

 

Whenever the Company issues Shares to all or
substantially all holders of Shares by way of a stock dividend or other
distribution, or subdivides all outstanding Shares into a greater number of
Shares, or combines or consolidates all outstanding Shares into a lesser number
of Shares (each of such events being herein called a “Share Reorganization”)
then effective immediately after the record date for such dividend or other
distribution or the effective date of such subdivision, combination or
consolidation, for each Option:

 

(a)                                  the
Option Price will be adjusted to a price per Share which is the product of:

 

(i)                                     the
Option Price in effect immediately before that effective date or record date;
and

 

 

(ii)                                  a
fraction, the numerator of which is the total number of Shares outstanding on
that effective date or record date before giving effect to the Share
Reorganization, and the denominator of which is the total number of Shares that
are or would be outstanding immediately after such effective date or record
date after giving effect to the Share Reorganizations; and

 

(b)                                 the
number of Unissued Option Shares will be adjusted by multiplying (i) the
number of Unissued Option Shares immediately before such effective date or
record date by (ii) a fraction which is the reciprocal of the fraction
described in clause (a)(ii) above.

 

5.2                                 Special
Distribution

 

Whenever the Company issues by way of a
dividend or otherwise distributes to all or substantially all holders of
Shares;

 

(a)                                  shares
of the Company, other than the Shares;

 

(b)                                 evidences
of indebtedness;

 

(c)                                  any
cash or other assets, excluding cash dividends (other than cash dividends which
the Board has determined to be outside the normal course); or

 

(d)                                 rights,
options or warrants;

 

then to the extent that such dividend or
distribution does not constitute a Share Reorganization (any of such
non-excluded events being herein called a “Special Distribution”), and
effective immediately after the record date at which holders of Shares are
determined for purposes of the Special Distribution, for each Option the Option
Price will be reduced, and the number of Unissued Option Shares will be correspondingly increased, by such amount, if
any, as is determined by the Board in its sole and unfettered discretion to be
appropriate in order to properly reflect any diminution in value of the Option
Shares as a result of such Special Distribution.

 

5.3                                 Corporate Organization

 

Whenever there
is:

 

(a)                                  a reclassification of outstanding Shares, a
change of Shares into other shares or securities, or any other capital
reorganization of the Company, other than as described in Sections 5.1 or 5.2;

 

 

(b)                                 a consolidation, merger or amalgamation of the
Company with or into another corporation resulting in a reclassification of
outstanding Shares into other shares or securities or a change of Shares into
other shares or securities; or

 

(c)                                  a transaction whereby all or substantially all of
the Company’s undertaking and assets become the property of another
corporation;

 

(any such event being herein
called a “Corporate Reorganization”) the Optionee will have an option to
purchase (at the times, for the consideration, and subject to the terms and
conditions set out in the Plan) and will accept on the exercise of such option,
in lieu of the Unissued Option Shares which he would otherwise have been
entitled to purchase, the kind and amount of shares or other securities or
property that he would have been entitled to receive as a result of the
Corporate Reorganization if, on the effective date thereof, he had been the
holder of all Unissued Option Shares or if appropriate, as otherwise determined
by the Directors.

 

5.4                                 Determination of Option Price and Number of
Unissued Option Shares

 

If any questions
arise at any time with respect to the Option Price or number of Unissued Option
Shares deliverable upon exercise of an Option following a Share Reorganization,
Special Distribution or Corporate Reorganization, such questions shall be
conclusively determined by the Company’s auditor, or, if they decline to so
act, any other firm of Chartered Accountants in Vancouver, British Columbia,
that the Board may designate and who will have access to all appropriate
records and such determination will be binding upon the Company and all
Optionees.

 

6.                                      SUBSTANTIAL SALE

 

6.1                                 Substantial
Sale

 

For so long as the Shareholders’ Agreement is
in effect, if

 

(a)                                  securityholders
of the Company (the “Selling Shareholders”) holding not less than seventy seven
percent of the outstanding Common Shares calculated on a Fully Converted Basis
have agreed to Transfer their Equity Securities (a “Substantial Sale”) to a
Person, or Persons acting in concert, (a “Purchaser”); and

 

(b)                                 the
Purchaser offers to purchase the Options of an Optionee, the Optionee must sell
the Options to the Purchaser at a price equal to

 

 

	
  The number of Shares then exercisable under
  the Option

  	
  X

  	
  The price per Share paid by the Purchaser
  to the Selling Shareholders minus the exercise price per Share under the
  Option

  

 

on equivalent terms and conditions, mutatis mutandis, as those agreed to by the Selling
Shareholders in respect of the Substantial Sale, but in any event subject to
the rights, privileges, restrictions and conditions, including all liquidation
preferences, attaching to the securities as set out in the Company’s constating
documents.

 

If the Purchaser offers to buy the Options of
an Optionee and the Optionee does not sell the Optionee’s Options to the
Purchaser as contemplated above, then the Optionee’s Option will expire,
terminate and be cancelled on completion of the Substantial Sale.

 

7.                                      MISCELLANEOUS

 

7.1                                 Right to Employment

 

Neither this
Plan nor any of the provisions hereof shall confer upon any Optionee any right
with respect to employment or continued employment with the Company or any
subsidiary of the Company or interfere in any way with the right of the Company
or any subsidiary of the Company to terminate such employment.

 

7.2                                 Necessary Approvals

 

The obligation
of the Company to sell and deliver Shares in accordance with the Plan is
subject to the approval of any governmental authority having jurisdiction. If
any Shares cannot be issued to any Optionee for any reason, including, without
limitation, the failure to obtain such approval, then the obligation of the
Company to issue such Shares shall terminate and any Option Price paid by an
Optionee to the Company shall be immediately refunded to the Optionee by the
Company.

 

7.3                                 Administration of the Plan

 

The Board shall,
without limitation, have full and final authority in its discretion, but
subject to the express provisions of the Plan, to interpret the Plan, to
prescribe, amend and rescind rules and regulations relating to the Plan
and to make all other determinations deemed necessary or advisable in respect
of the Plan. Except as set forth in Section 5.4, the interpretation and
construction of any provision of the Plan by the Board shall be final and
conclusive. Administration of the Plan shall be the responsibility of the
appropriate officers of the Company and all costs in respect thereof shall be paid
by the Company.

 

 

7.4                                 Income Taxes

 

As a condition
of and prior to participation in the Plan any Optionee shall on request
authorize the Company in writing to withhold from any remuneration otherwise
payable to him or her any amounts required by any taxing authority to be
withheld for taxes of any kind as a consequence of his or her participation in
the Plan.

 

7.5                                 Amendments to the Plan

 

The Board may
from time to time, subject to applicable law and to the prior approval, if
required, of any regulatory body having authority over the Company or the Plan,
suspend, terminate or discontinue the Plan at any time, or amend or revise the
terms of the Plan or of any Option granted under the Plan and the Option
Agreement relating thereto, provided that no such amendment, revision,
suspension, termination or discontinuance shall in any manner adversely affect
any Option previously granted to an Optionee under the Plan without the consent
of that Optionee. For further certainty, nothing in the Plan shall limit the
Board’s ability to grant Options under the Plan on terms that may be different
or more favorable to an Optionee than those specified herein.

 

7.6                                 Form of Notice

 

A notice given
to the Company shall be in writing, signed by the Optionee and delivered to the
Secretary of the Company.

 

7.7                                 No Representation or Warranty

 

The Company
makes no representation or warranty as to the future market value of any Shares
issued in accordance with the provisions of the Plan.

 

7.8                                 Compliance with Applicable Law

 

If any provision of the Plan or
any Option Agreement contravenes any law or any order, policy, by-law or
regulation of any regulatory body having authority over the Company or the
Plan, then such provision shall be deemed to be amended to the extent required
to bring such provision into compliance therewith.

 

7.9                                 No Assignment

 

No Optionee may
assign any of his or her rights under the Plan without the consent from the
Board or a majority of the Major Investors.

 

 

7.10                           Rights
of Optionees

 

An
Optionee shall have no rights whatsoever as a shareholder of the Company in
respect of any of the Unissued Option Shares (including, without limitation,
voting rights or any right to receive dividends, warrants or rights under any
rights offering).

 

7.11                           Conflict

 

In the event of
any conflict between the provisions of this Plan and an Option Agreement, the
provisions of the Plan shall govern.

 

7.12                           Governing Law

 

The Plan and
each Option Agreement issued pursuant to the Plan shall be governed by the laws
of the province of British Columbia.

 

7.13                           Time of Essence

 

Time is of the
essence of this Plan and of each Option Agreement. No extension of time will be
deemed to be or to operate as a waiver of the essentiality of time.

 

7.14                           Entire Agreement

 

This Plan and
the Option Agreement sets out the entire agreement between the Company and the
Optionees relative to the subject matter hereof and supersedes all prior
agreements, undertakings and understandings, whether oral or written.

 

This Amended and Restated Stock Option Plan was approved by the Board
of Directors on September 16, 2003 and is restated after giving effect to
the consolidation of the Company’s share capital on a one for five basis on September 23,
2003.

 

 

SCHEDULE “A”

 

ONCOGENEX TECHNOLOGIES INC.

 

STOCK OPTION PLAN

OPTION AGREEMENT

 

This Option Agreement is entered into between
OncoGenex Technologies Inc. (the “Company”) and
the Optionee named below pursuant to the Company Stock Option Plan as amended
(the “Plan”), a copy of which is attached
hereto, and confirms that:

 

1.                                       on September 24, 2003 (the “Grant Date”);

 

2.                                       Dr. Martin Gleave (the “Optionee”);

 

3.                                       was granted the option (the “Option”)
to purchase 133,870 common shares (the “Option Shares”)
of the Company;

 

4.                                       for the price (the “Option Price”)
of [TBD] per share [note that the compensation committee and board of directors
recommended that the Option Price be set after completion of the Class B
equity issue];

 

5.                                       which shall be exercisable (“Vested”)
in whole or in part in the following amounts on or after the following dates:

 

i)                 as
to 84,996 shares, 3,148 shares per month upon the 1st day of each
subsequent month following the Grant Date;

 

ii)              as to
48,874 shares, provided that the Company has completed the second tranche of
the Class B equity issue (the “Second Closing”),
these shares will Vest in an equal monthly amount upon the 1st day
of each month commencing [***].

 

6.                                       terminating on September 24, 2010 (the “Expiry Date”);

 

all on the terms and subject to the
conditions set out in the Plan. For greater certainty, once Option Shares have
become Vested, they continue to be exercisable until the termination or
cancellation thereof as provided in this Option Agreement and the Plan.

 

By signing this Option Agreement, the
Optionee acknowledges that the Optionee has read and understands the Plan and
agrees to the terms and conditions of the Plan and this Option Agreement.

 

In order to exercise this Option, the
Optionee must deliver to the Company:

 

(a)                                  a notice of exercise in the form attached hereto
as Exhibit No. 1, duly completed and executed together with a
certified cheque for payment for all Option Shares in respect of which the
Option is exercised; and

 

(b)                                 if required by the Company in order for the
Company to comply with the Shareholders’

 

 

Agreement (as defined
in the Plan), a counterpart to the Shareholders’ Agreement in a form acceptable
to the Company duly and originally executed by the Optionee.

 

IN WITNESS WHEREOF the parties hereto have executed this Option
Agreement as of the 24th day of September, 2003.

 

 

	
  SIGNED, SEALED AND DELIVERED

  	
   

  	
  )

  
	
  in the presence of

  	
   

  	
  )

  
	
   

  	
   

  	
  )

  
	
   

  	
   

  	
  )

  
	
   

  	
   

  	
  )

  	
  /s/ Martin Gleave

  
	
  Witness

  	
   

  	
  )

  	
  OPTIONEE

  
					

 

 

	
   

  	
  ONCOGENEX TECHNOLOGIES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Scott Cormack

  

 

 

EXHIBIT NO. 1 TO OPTION AGREEMENT

 

EXERCISE FORM

 

	
  TO:

  	
   

  	
  OncoGenex Technologies Inc.

  
	
   

  	
   

  	
  Suite 550,
  2660 Oak Street

  
	
   

  	
   

  	
  Vancouver,
  British Columbia V6H 3Z6

  
	
   

  	
   

  	
  Telephone:

  	
  604-736-3678

  
	
   

  	
   

  	
  Facsimile:

  	
  604-736-3687

  
	
   

  	
   

  	
  Attention:

  	
  Mr. Scott
  D. Cormack

  

 

I, the undersigned holder of the attached
Option Agreement with OncoGenex Technologies Inc. (the “Company”),
hereby exercise my Option and agree to
acquire               
common shares of the Company (the “Acquired Shares”)
and enclose a certified cheque in the amount of
$                         representing the exercise price (Option Price multiplied
by number of shares being acquired) for the Acquired Shares.

 

I hereby request that the Company issue the
Acquired Shares to me under the OncoGenex Technologies Inc. Stock Option Plan
and irrevocably direct that the Acquired Shares be issued registered in the
following name and address and delivered as follows:

 

	
  Name in Full

  	
   

  	
  Registered Address

  	
   

  	
  Delivery Address

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

(PLEASE PRINT IN FULL THE NAME IN WHICH
CERTIFICATES ARE TO BE ISSUED.)

 

DATED this
              
day of                               ,                        .

 

	
   

  	
   

  
	
   

  	
  Signature of Optionee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of Optionee

  

 

 

GLEAVE SERVICES THIRD AMENDING AGREEMENT

 

THIS AGREEMENT, made as of 10th day of August, 2005
between:

 

DR. MARTIN GLEAVE, an individual residing in Vancouver, British Columbia (hereinafter
referred to as “Gleave”)

 

-and-

 

ONCOGENEX TECHNOLOGIES INC. a corporation incorporated under the laws of Canada (hereinafter
referred to as the “Corporation”).

 

RECITALS:

 

WHEREAS the Corporation and Gleave entered into a
services agreement dated December 21, 2001 (the “Original Gleave Services
Agreement”) and an amending agreement dated March 1, 2002 (the “Gleave
Services First Amending Agreement”) and a second amending agreement dated September 24,
2003 (the “Gleave Services Second Amending Agreement”) relating to Gleave
providing certain services for the benefit of the Corporation;

 

AND
WHEREAS the
Corporation and Gleave wish to amend the term and Gleave’s participation in the
compensation program of the Corporation, including its Employee Stock Option
Plan, as amended from time to time (the “Plan”);

 

NOW
THEREFORE in
consideration of the mutual covenants and agreements herein contained and other
good and valuable consideration (the receipt and sufficiency of which are hereby
acknowledged) the parties agree as follows:

 

1.                                      CONSTRUCTION

 

The Original Gleave Services Agreement as amended by the Gleave
Services First Amending Agreement and the Gleave Services Second Amending
Agreement is hereinafter referred to as the (“Gleave Services Agreement”).
Terms having a capitalized first letter and not otherwise defined herein shall
have the meaning ascribed to them in the Gleave Services Agreement.

 

2.                                      AMENDMENT

 

2.1                                 Article 5 of the Gleave Services
Agreement is hereby deleted and replaced with the following:

 

“5.1                           Subject to Article 9, the term of this
Agreement shall be from the date first written above until December 31,
2008 (the “Term”), provided that:

 

(a)                                  the Corporation shall have the right to
terminate this Agreement at an earlier date if Gleave defaults on his
obligations hereunder and the Corporation has given written notice to Gleave of
such default and Gleave has failed to correct such default within thirty (30)
days of such notice;

 

 

(b)                                 the Corporation may terminate this Agreement
at any time and without cause by providing written notice of termination to
Gleave, in which case the Corporation shall pay to Gleave an amount equal to
the lesser of $100,000 and the aggregate remaining consulting fees payable to
the end of the Term had this Agreement not been so terminated; and

 

(c)                                  the Corporation shall have the right to
terminate this Agreement at an earlier date on five (5) days prior written
notice to Gleave if Gleave ceases to beneficially own or control any shares of
the Corporation.”

 

2.2                                 The Gleave Services Agreement is hereby
amended by replacing Schedule “B” and Schedule “C” thereto with Schedule “B”
and Schedule “C” attached hereto.

 

2.3                                 Notwithstanding the terms of the Corporation’s
stock option plan, if the Corporation notifies Gleave of termination of this
Agreement, without cause, any options (“Options”) to purchase shares in the
capital of the Corporation which have been granted to Gleave after July 13,
2005 and which have vested as at the date of termination, shall be exercisable
by Gleave, until the expiry date specified in the Option agreement and the date
which is 365 days after such notification, which ever is sooner, but not
thereafter.

 

2.4                                 Except as otherwise provided in Article 2
herein, the terms of the Plan shall govern. In the event of any inconsistency
between the Plan and Article 2 herein, the terms of this Article 2
shall prevail.

 

3.                                      GENERAL

 

The Gleave Services Agreement as amended by this Agreement comprises
the entire agreement between the Parties with respect to Gleave’s provision of
services to the Corporation and replaces and supersedes any and all previous
verbal or written agreements that may have been entered into. For clarity,
except as provided in Article 2 herein, the Gleave Services Agreement
remains unamended and in full force and effect between the parties to this
Agreement. This Agreement may not be amended or modified except by written
amendment signed between the Parties hereto.

 

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

 

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

 

 

	
  /s/ Sherry Tryssenaar

  	
   

  	
  /s/ Martin Gleave

  
	
  Witness:  S. Tryssennaar

  	
   

  	
  DR. MARTIN GLEAVE

  

 

2

 

	
   

  	
  ONCOGENEX TECHNOLOGIES INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ Scott Cormack

  
	
   

  	
   

  	
  (Authorized Signatory)

  

 

3

 

SCHEDULE B

 

ONCOGENEX TECHNOLOGIES INC.

 

Compensation

 

Effective January 1, 2006:

 

B (1)                       Gleave
shall be entitled to an annual consulting fee equal to $100,000 (the “Consulting
Fee”). The Consulting Fee shall be paid to Gleave in equal monthly payments of
$8,333.33 per month within 10 days following the end of each month.

 

B (2)                       For travel
exclusive to OncoGenex that is outside of the Province of British Columbia as
requested by the Chief Executive Officer or President of OncoGenex, Gleave
shall be reimbursed $2,000 per day (the “Travel Per Diem”). The Travel Per Diem
shall be paid to Gleave within 10 days following the receipt by OncoGeneX of an
invoice received from Gleave in respect of such travel.

 

B (3)                       Gleave and
OncoGenex hereby confirm that Gleave is acting as an independent contractor to
OncoGenex and will, at Gleave’s own expense, pay all income taxes, unemployment
insurance premiums, Canada Pension Plan premiums, Workers’ Compensation
contributions, and all other taxes, charges and contributions levied or
required by competent governmental authorities in Canada in respect of monies
paid to Gleave under this Agreement and OncoGenex will not have any obligation
whatsoever to compensate Gleave or persons working with Gleave for annual
vacation, sickness, accident or disability, whether or not resulting from the
performance by Gleave of obligations of Gleave under this Agreement, retirement
pension or benefits or any benefits resulting from the expiration of the Term
of the Agreement or for any other benefits accorded by OncoGenex to any of its
employees.

 

 

SCHEDULE C

 

ONCOGENEX TECHNOLOGIES INC.

 

Bonus Plan – Milestones

 

Effective Janaury 1, 2006:

 

C (1)                       During the
Term (as defined in this Agreement), Gleave shall be entitled to an annual cash
bonus of up to 40% of the annual consulting fee payable to Gleave under this
Agreement (the “Bonus”). The Bonus shall be based on achievement of overall
corporate performance of objectives as established by the Board at the
beginning of the fiscal year.Exhibit
10.5

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT
made as of the 9th day of January, 2006.

 

BETWEEN:

 

OncoGenex Technologies Inc., a Corporation incorporated under the laws of Canada and having an
office at Vancouver, British Columbia

 

(together
with any subsidiaries hereinafter referred to as the “Company”)

 

OF THE FIRST PART

 

AND:

 

Stephen Anderson, an individual, domiciled at West Vancouver, British Columbia

 

(hereinafter
referred to as the “Employee”)

 

OF THE SECOND PART

 

WHEREAS the
Company is a biotechnology company engaged in the development of therapeutics
for cancer;

 

AND WHEREAS the
Company and the Employee wish to enter into this Employment Agreement under the
terms and conditions herein;

 

AND WHEREAS
during the course of the Employee’s employment with the Company, the Employee
will be introduced to, have contact with, and his services may be solicited by,
one or more of the clients of the Company;

 

AND WHEREAS
the Employee will acquire knowledge, experience and expertise, as well as
detailed knowledge of the Company’s confidential customer and supplier lists
and information, marketing techniques, price lists, trade secrets and other
property which is and shall be the property of the Company, and the disclosure,
loss or, unauthorized use of which would substantially harm the business of the
Company;

 

NOW THEREFORE THIS AGREEMENT WITNESSES that for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:

 

ARTICLE 1

TERM OF EMPLOYMENT

 

1.1           The
term of employment under this Agreement shall commence on January 9, 2006 (the “Effective Date”) and shall be for an indefinite term,
subject to termination as provided for in Article 6 hereof. In accordance with
the other terms of this Agreement, the 

 

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

 

 

Employee
shall devote himself full-time to his employment duties and responsibilities
with the Company.

 

ARTICLE 2

DUTIES AND RESPONSIBILITIES

 

2.1           The
Employee shall serve the Company as an Employee in the position of Chief
Financial Officer and reporting to the President.

 

2.2           The
Employee shall undertake and perform the following duties and responsibilities:

 

(a)           Provide
financial leadership and strategic advice in the development of financial
policies, procedures and internal controls in a manner that supports the
achievement of the Company’s strategic and operating goals and objectives which
includes transformation and maintenance of financial systems required for a
reporting issuer;

 

(b)           Ensure
that there is a broad sense of financial discipline applied to all officers and
employees;

 

(c)           Oversee
the Company’s financial and budgetary planning process, mentor staff on
budgetary process and procedures, and regularly review performance against
plan;

 

(d)           Ensure
that appropriate due diligence has been carried out prior to the Company
committing to a course of action where the Company is expending funds or
committing to a contractual obligation;

 

(e)           Responsible
for tax planning and compliance, cost containment, analysis and development of
opportunities regarding acquisitions or divestitures and contract negotiations
with suppliers or partners;

 

(f)            Endorse
all financial information as to its completeness, reliability and accuracy
submitted to the Board of Directors, any public sector agency, investors and
other stakeholders;

 

(g)           Interpret,
analyze and present financial and related information for senior management
and/or the Board of Directors, in order to facilitate understanding of issues
and options, and to guide appropriate decisions;

 

(h)           Participate
in road shows as a key presenter to investors, analysts and investment bankers;

 

(i)            Establish
and maintain financial model to support Company valuations;

 

(j)            Establish
and maintain sound relationships with investors, financial institutions,
auditors and investment bankers;

 

(k)           Co-lead
(with the CEO) negotiations with venture capital investors, financial
institutions and/or investment bankers as directed by the CEO and/or Board of
Directors;

 

2

 

(l)            Act
as the primary Management contact for the audit committee, and ensure audit
committee members have necessary and accurate information related to the
organisation and the committee’s responsibilities;

 

(m)          Manage
overall corporate governance activities including compliance with securities
regulations, shareholder and investment agreements, and other contractual or
legislative obligations of the Company;

 

(n)           Oversee
business development activities with particular consideration of strategic fit,
financial and contractual obligations of agreements, and impact on financial
and human resources of the Company;

 

(o)           Facilitate
a timely due diligence process as necessary to secure additional capital and
strategic partnerships;

 

(p)           Identify
and manage business risks and insurance requirements;

 

(q)           Ensure
that direct reports have clearly defined roles, understand personal and
corporate priorities, and receive appropriate mentoring to enhance individual
performance towards corporate objectives; and

 

(r)            perform
such other duties and responsibilities as may be assigned or vested in him by
the Employee’s supervisor from time to time and which are consistent with the
duties and responsibilities of a Chief Financial Officer.

 

2.3           In
accordance with the other terms of this Agreement, the Employee agrees during
the continuance of his employment, to devote his entire working time, services,
skill and ability to such employment and to serve at all times with loyalty and
honesty in the best interests of the Company. Prior written consent from the
President must be obtained if the Employee wishes to engage in activities with
for-profit and charitable or non-profit organizations during normal working
hours.

 

ARTICLE 3 

BASE COMPENSATION

 

3.1           In
consideration of the services provided by the Employee hereunder, the Company
shall, as of the Effective Date, pay to the Employee an annual base salary in
the amount of one hundred eighty thousand dollars ($180,000) as increased from
time to time in accordance with Article 3.2 (“Base Salary”),
payable semi-monthly or such other manner as may be agreeable to the parties
hereto and in compliance with any applicable legislation.

 

3.2           Such
Base Salary shall be reviewed by the Employee’s supervisor and may be further
reviewed by the Compensation Committee of the Board every twelve (12) months
based on the Employee’s performance, corporate cash flow, achievement of
corporate objectives and in accordance with Company policies. Any recommended
increase may require approval by the Board. Annual performance reviews will be
conducted by the Employee’s supervisor. Annual determination of personal
objectives will be conducted by the Employee’s supervisor.

 

3

 

3.3           The
Employee shall be eligible to participate in any bonus plans (“Bonus”) offered by the Company to its Employees in accordance
with the terms thereof as established by the Board and as amended from time to
time. Initially, the Employee shall be eligible for a Bonus of up to 25% of the
Base Salary. The Bonus shall be based on annual corporate objectives as
established by the Board and annual personal objectives as established by the
Employee’s supervisor, each of which shall be communicated to the Employee
annually by December 31 in the year preceding the year in which the milestones
pertain and attached hereto as Appendix A. At the same time, the allocation of
bonus potential between corporate and personal objectives for the upcoming year
will be communicated to the Employee.

 

ARTICLE 4 

INCENTIVE COMPENSATION

 

4.1           The
Employee shall participate in the Company’s share option plan (the “Plan”) as determined by the Board of Directors and in
accordance with its terms as amended from time to time.

 

4.2           The
exercise of any Options shall at all times be subject to obtaining any
applicable regulatory or legal approval.

 

ARTICLE 5

BENEFITS

 

5.1           Group Insurance and Pension

 

The Employee shall be
eligible on the Effective Date for any group medical, dental, insurance and
pension programs applicable to the Employees of the Company.

 

5.2           Vacation

 

The Employee shall be
entitled to 20 Business Days (as defined in Article 11.11) of annual paid
vacation during each year with vacation entitlement in the first year after the
Effective Date accruing monthly from the Effective Date. Unused vacation may
not be carried over for more than twelve months after the completion of each
fiscal year.

 

5.3           Expenses

 

The
Employee shall be reimbursed for all out-of-pocket expenses incurred on behalf
of the Company within 15 days of receipt by the Company of an expense report
together with original receipts in respect of such expenses.

 

ARTICLE 6 

TERMINATION OF THIS AGREEMENT

 

6.1           Notwithstanding
any other provisions herein but subject to Article 11.8 hereof, and without
prejudice to rights accrued to the Employee to the Date of Termination (as
defined herein), this Agreement shall terminate automatically upon the death of
the Employee or on the Date of Termination. The “Date of
Termination” will be, as applicable, the date the Company terminates
the Employee in accordance with Article 6.2, or the date the Company requests
the Employee to cease his duties under this Agreement or the Employee resigns
for Constructive Dismissal in accordance with 

 

4

 

Article
6.5 hereof, or the date the Employee commences his retirement in accordance
with Article 6.6 hereof, or the date determined in accordance with Article 6.7
hereof.

 

6.2           Nothing
in this Agreement shall restrict or impair the Company’s right to terminate the
employment of the Employee without compensation:

 

(a)           at any time by notice in writing from the Company to the Employee for
just cause, which without limiting the generality of the foregoing, shall
include:

 

(i)            serious misconduct;

(ii)           breach of fiduciary duty;

(iii)          failure to obey the lawful direction of the Employee’s supervisor;

(iv)          fraud;

(v)           theft;

(vi)          willful breach or habitual neglect of significant and material duties
the Employee is required to perform; and

(vii)         material breach of a restrictive covenant of this Agreement.

 

(b)           if the Employee shall become
permanently disabled, at any time by notice in writing from the Company to the
Employee, provided that such termination does not adversely affect the Employee’s
access to long term disability insurance benefits or other health benefits. For
purposes of this subsection 6.2 (b), the Employee shall be deemed to be
permanently disabled immediately following:

 

(i)            any period of 365 consecutive days during which he is prevented,
notwithstanding reasonable efforts to accommodate the disability, from
performing his essential duties as an Employee of the Company for more than 182
days in the aggregate by reason of illness or mental or physical disability; or

 

(ii)           his being
found of unsound mind or incapable of managing his own affairs by the final
judgement or order of a court of competent jurisdiction.

 

6.3           The
Employee acknowledges and agrees that, during the first 6 months of employment
starting on the Effective Date (the “Probationary Period”), he is employed on a
probationary basis. During the Probationary Period, this Agreement may be
terminated by the Company on not less than 1 weeks’ notice in writing. The
Company may, at its discretion, elect to pay 1 weeks’ salary in lieu of notice.
If the Company terminates the employment of the Employee during the Probationary
Period, the Date of Termination shall mean the last day on which the Employee
works for the Company.

 

6.4           For
the purposes of this Agreement, “Constructive Dismissal”
shall be deemed to have occurred only if there exists any material adverse change
without the prior written consent of the Employee in the title, position, job
function or compensation of the Employee from those current on the Effective
Date, taking into consideration normal changes in job functions as the Company
grows.

 

6.5           At
any time after the Probationary Period, the Company may terminate the
employment of the Employee in accordance with this Article 6.5. In the event
employment of the Employee is terminated by the Company for reasons other than
for just cause, or the Employee resigns as a result of a Constructive
Dismissal, the Employee shall be entitled to the following:

 

5

 

(a)           four
(4) weeks notice plus an additional two weeks for each full year of the
Employee’s employment at the date such notice is given (the “Severance  Period”), to a
maximum of twenty-six (26) weeks, or pay in lieu of notice (“Severance”) of an amount determined by multiplying the
Employee’s average weekly earnings ((inclusive of Base Salary and Bonus) where
such average is calculated over the 104 week period (or such lesser period if
the Employee is terminated in accordance with this Article 6.5 less than 2
years from the Effective Date) immediately preceding the Severance Period) by
the number of weeks in the Severance Period. The Severance may be paid to the
Employee either in a lump sum or by equal weekly, semi-monthly or monthly
installments for the duration of the Severance Period, at the Company’s sole
discretion;

 

(b)           any
payment to the Employee under this Article 6.5 shall be deemed to include all
required termination and/or severance payments pursuant to the provisions of
the Employment Standards Act (British
Columbia) as amended from time to time; and

 

(c)           to
the extent that such insurance plans permit, continued entitlement under all
group medical, dental and insurance plans, excluding short and long term
disability plans and pension plan, to which the Employee is entitled at the
time of termination of employment; such continuation of benefit entitlement
shall be for a period equal to the Severance Period or until the date the
Employee becomes employed elsewhere wherein comparable benefits are provided,
whichever date comes first. To the extent the continuance of certain benefit
plans, excluding short and long term disability, is not permitted, the Company
shall pay to the Employee, no later than thirty (30) days after the Date of
Termination, an amount equal to ten per cent (10%) of the Employee’s weekly
Base Salary in effect immediately prior to the Date of Termination (being the
Base Salary divided by 52) multiplied by the number of weeks in the Severance
Period.

 

6.6           This
Agreement is terminated, without prejudice to rights accrued to the Employee to
the Date of Termination, when the Employee commences his retirement.

 

6.7           The Employee may, by providing one month notice in
writing to the Company (the “Notice
Period”),
terminate this Agreement and his employment with the Company. In such
circumstance, the Company may request that the Employee cease duties prior to
the expiry of the Notice Period. The Company shall, in such event, pay to the
Employee an amount equal to the difference between what the Employee would have
received had the employment of the Employee been continued for the Notice
Period and the amount actually paid by the Company to the Employee during the
Notice Period. In the event the Employee provides such notice to the Company,
the “Date of Termination” shall mean the last day
on which the Employee works for the Company.

 

ARTICLE 7 

NON-COMPETITION

 

7.1           During
the term of this Agreement and for six (6) months following the termination of
this Agreement, the Employee will not, within Canada, the United States or
Europe, without the written consent of the Company:

 

6

 

(a)           own or
have any interest directly in, save and except for an interest of less than 5%
in a publicly traded company;

 

(b)           act as an
officer, director, agent, employee or consultant of; or

 

(c)           assist in
any way or in any capacity,

 

any person, firm, association, syndicate,
partnership, joint venture, collaboration, corporation or other entity that is
engaged in a business that is substantially similar to or that competes with
the Business.

 

7.2           The
term “Business” as used in this Agreement
means the development and commercialization of the Technology as defined in the
Article 10 hereof and such other business plans as approved by the Board from
time to time and which are in effect on the Date of Termination of this
Agreement.

 

ARTICLE 8 

NON-SOLICITATION

 

8.1           The Employee will not, for a period of six
(6) months from the Date of Termination of this Agreement:

 

(a)           directly
or indirectly, either personally, through an agent or by letters, circulars or
advertisements, contact for the purpose of solicitation or actually solicit any
person, firm, association, syndicate, joint venture, collaboration,
corporation, business entity or crown corporation who/which is or was a
customer of the Company on or at any time within the 12 months before the Date
of Termination of this Agreement, or who was scheduled to become a customer of
the Company within twelve months prior to the Date of Termination of this
Agreement;

 

(b)           induce or
attempt to induce any person:

 

(i)            who was an
employee of the Company at the Date of Termination of this Agreement; or

 

(ii)           who has
been, during the twelve months before the Date of Termination, an employee of
the Company;

 

to leave the employ
of the Company, whether to join the Employee in a similar enterprise or otherwise;
or

 

(c)           either
directly or indirectly, solicit, divert or take away any staff, temporary
personnel, trade, or business from the Company, or otherwise compete for
accounts or personnel which become known to him through his relationship with
the Company and agrees not to influence or attempt to influence any of the
Company’s customers, suppliers, or resellers or personnel not to do business
with the Company or take any action which may be reasonably foreseen to result
in harm to the Company.

 

7

 

ARTICLE 9 

CONFIDENTIALITY

 

Delivery of
Records

 

9.1           Any and all computer code, data, notes,
diagrams, reports, notebook pages, memoranda, and like materials, including
Confidential Information, as defined in Article 9.3 below, received from or
developed for the Company and any copies or excerpts thereof shall remain the
property of the Company. Upon the termination of the Employee’s relationship
with the Company as established under this Agreement, or at any time during the
term hereof at the request of the Company, the Employee shall deliver to the
Company all such materials and other property belonging to the Company or
developed in connection with the Business.

 

Confidentiality

 

9.2           In the course of carrying out and performing
his duties and responsibilities to the Company, the Employee shall obtain
access to and be entrusted with Confidential Information, as defined in Article
9.3 below, relating to the Business.

 

9.3           The term “Confidential
Information” as used in this Agreement means all trade secrets,
proprietary information and other data or information (and any tangible
evidence, record or representation thereof), whether prepared, conceived or
developed by an employee or consultant of the Company or received by the
Company from an outside source which is maintained in confidence by the Company
or from any of its customers to obtain a competitive advantage over competitors
who do not have access to such trade secrets, proprietary information, or other
data or information. Without limiting the generality of the foregoing,
Confidential Information includes:

 

(a)           any ideas, improvements, know-how, research,
inventions, innovations, products, services, sales, scientific or other
formulae,  processes, methods, machines,
manufactures, compositions,  procedures,
tests, treatments, developments, technical data, designs, devices, patterns,
concepts, computer programs, computer code, creative development, training or
service manuals, plans for new or revised services or products or other plans,
items or strategy methods on compilation of information, or works in process
that relate to the Business, or that result from its marketing, research and/or
development activities;

 

(b)           any information relating to the relationship
of the Company with any clients, customers, suppliers, principals, contacts or
prospects of the Company and any information relating to the requirements,
specifications, proposals, orders, contracts or transactions of or with any
such clients, customers, suppliers, principals, contacts or prospects of the
Company, including but not limited to client lists;

 

(c)           any sales plan, marketing material, plan or
survey, business plan or opportunity, product or service development plan or
specification, business proposal or business agreement; and

 

(d)           any information relating to the present or
proposed Business.

 

8

 

9.4           The Employee agrees that the Confidential
Information is and will remain the exclusive property of the Company. The
Employee also agrees that the Confidential Information:

 

(a)           constitutes a proprietary right which the
Company is entitled to protect; and

 

(b)           constitutes information and knowledge not
generally known to the trade.

 

9.5           The Employee understands that the Company has
from time to time in its possession information belonging to others or which is
claimed by others to be confidential or proprietary and which the Company has
agreed to keep confidential. The Employee agrees that all such information
shall be Confidential Information for the purposes of this Agreement.

 

9.6           For purposes of the copyright laws of the
United States of America, to the extent, if any, that such laws are applicable
to any Confidential Information, it shall be considered a work made for hire
and the Company shall be considered the author thereof.

 

9.7           The Employee acknowledges and agrees that any
Confidential Information disclosed to the Employee is in the strictest
confidence and the Employee agrees to maintain and hold in strict confidence
all Confidential Information disclosed to him. The disclosure of any such
Confidential Information by the Employee in any form whatsoever except (i) as
required in performance by the Employee of his duties hereunder and in
furtherance of the best interest of the Company, (ii) as authorized by the
President including under a non-disclosure agreement signed by the President,
or (iii) as permitted under Article 9.10 of this Agreement, is and shall be
considered a fundamental breach of this Agreement and shall entitle the Company
to terminate immediately this Agreement without further payment to the
Employee.

 

9.8           Except in accordance with this Article 9, the
Employee shall not:

 

(a)           duplicate,
transfer, disclose or use nor allow any other person to duplicate, transfer or
disclose any of the Confidential Information; or

 

(b)           incorporate,
in whole or in part, within any domestic or foreign patent application that is
not for the benefit of the Company, any proprietary or Confidential
Information.

 

9.9           The Employee will safeguard all Confidential
Information to which the Employee has access at all times so that it is not
exposed to or used by unauthorized persons, and will exercise at least the same
degree of care that he would use to protect his own confidential information.

 

9.10         The restrictive obligations set forth above
shall not apply to the disclosure or use of any Confidential Information which:

 

(a)           is or
later becomes publicly known under circumstances involving no breach of any
confidentiality provisions, including this Agreement by the Employee;

 

(b)           is already
known to the Employee outside his work for the Company under this Agreement, at
the time of receipt of the Confidential Information;

 

(c)           is
lawfully made available to the Employee by a third party; or

 

9

 

(d)           is
required by law to be disclosed but only to the extent of such requirement and
the Employee shall immediately notify in writing the President of the Company
upon receipt of any request for such disclosure.

 

9.11         The term “Personal Information” means information about an
identifiable individual collected or created by the Company or its employees
in relation to the services they perform for the Company, but does not include the name, title,
business address, or business telephone number of an employee or consultant of the
Company.

 

9.12         Unless the law
otherwise specifies or the
Company otherwise
directs in writing, the Employee may only collect, create, use and disclose
Personal Information that is necessary for the performance of his employment
obligations, and must not collect, use or disclose Personal Information about
an individual without the consent of the individual to whom the information
relates.

 

9.13         The Employee
agrees to protect all Personal Information collected or stored by him by taking
reasonable security measures, in accordance with the sensitivity of the
information in question, to protect it against unauthorized access by any other
party, and from unauthorized collection, use, disclosure, copying, modification
or disposal.

 

9.14         The Employee
further agrees to comply with all applicable laws and Company policies and practices that relate to the collection, use, disclosure,
storage and disposal of Personal Information.

 

9.15         The Employee
agrees to retain Personal Information until directed by the Company in writing to dispose of it or deliver it as specified in the
direction.

 

9.16         The Employee agrees to immediately rectify, delete or update Personal
Information on receiving instructions to this effect from the Company.

 

9.17         The
obligations of the parties under this Personal Information provision will
survive the termination of the Agreement.

 

ARTICLE 10

INTELLECTUAL PROPERTY

 

10.1         As used in this Article 10, the following words and phrases are defined
as follows:

 

(a)           “UBC Licenses” means the licenses
entered into by the University of British Columbia and the Company effective
November 1, 2001, September 1, 2002 and April 5, 2005 which define the
terms under which the Company has acquired an exclusive license to certain
technology.

 

(b)           “Technology” means all ideas, concepts,
business and trade names, trademarks, know-how, trade secrets, inventions,
improvements, devices, methods, processes and discoveries, whether patentable
or not, and whether or not reduced to writing or other tangible form or to
actual or constructive practice which either:  (i) are part of the technology licensed to
the Company under the UBC Licenses; or (ii) are otherwise developed or acquired
on behalf of or by the Company, including but not 

 

10

 

limited to
the technology licensed to the Company under the agreements with Isis
Pharmaceuticals.

 

10.2         The Employee acknowledges and agrees that the Company is currently
engaged in the development and commercialization of the Technology. In
consideration of the Employee’s employment by the Company, the Employee hereby
transfers and assigns to the Company all intellectual property rights, arising
during the term of this Agreement in and to all ideas, know-how, discoveries,
inventions, documents or other information relating to the Technology as well
as any copyright and other rights in any designs, plans, specifications,
documents or other work relating to the Technology.

 

10.3         The Employee agrees that any and all ideas,
discoveries, inventions and improvements (collectively, the “Inventions”) which he may conceive or make during the period
of his employment, either alone or jointly with others, whether or not reduced
to practice, relating or in any way appertaining to or connected with the
Technology shall be the sole and exclusive property of the Company. The
Employee will, whenever so requested by the Company, execute any and all
applications, assignments, and other instruments which the Company shall deem
necessary in order to apply for and obtain letters patent of Canada or foreign
countries for said Inventions or for any other reason.

 

10.4         The Employee further acknowledges and agrees
that all copyright and other rights in any designs, plans, specifications,
documents or other work (“Work”) he
creates during the period of his employment with the Company, whether or not
such Work is created in the course of his employment, relating to the
Technology or to the Business, shall be the sole and exclusive property of the
Company. The Employee hereby assigns all such rights to the Company. The
Employee will, whenever so requested by the Company, execute any and all
applications, assignments, and other instruments which the Company shall deem
necessary in order to apply for and obtain registration of copyright in any
Work in Canada or foreign countries.

 

10.5         The Employee waives all moral rights or author’s rights in any Work he
may create during the period of his employment with the Company.

 

10.6         At the commencement of his employment, and at
all times during the term of this Agreement, the Employee will promptly
disclose to the Company in writing and in full and enabling detail, all
Inventions he has conceived or created, whether in the course of his employment
or otherwise, relating to the Business.

 

10.7         The
foregoing obligations shall continue beyond the termination of the term of this
Agreement with respect to any and all Inventions or Work conceived or made by the
Employee during the term hereof or otherwise assigned by the Employee to the
Company and shall be binding on the Employee’s assigns, executors,
administrators or other legal representatives.

 

ARTICLE 11

 

MISCELLANEOUS

 

11.1         This Agreement shall be the whole and complete agreement between the
parties hereto with respect to the employment of the Employee; it replaces and
supersedes any and all previous verbal or written agreements that may have been
entered into between the parties hereto. This Agreement may not be amended or
modified except by written amendment signed between the parties hereto.

 

11

 

11.2         In the event that any part of this Agreement shall be determined at any
time to be invalid, such provisions shall be deemed severable and deleted
herefrom and the remainder of this Agreement shall constitute the whole
agreement of the parties hereto and shall, except as hereinbefore provided,
continue in full force and effect.

 

11.3         The Employee hereby confirms that he is not a party to any agreement or
under any other obligation to anyone, including any former employer, nor does
the Employee have any other interest which is inconsistent with or in conflict
with or which would prevent, limit or impair the Employee’s performance of any
obligations hereunder which the Employee has not disclosed in writing to the
Company. The Employee acknowledges that the Company is not requesting the
Employee disclose any confidential information which the Employee may have obtained
from a former employer.

 

11.4         The Employee acknowledges that a breach by the Employee of any of the
covenants contained in Articles 7, 8, 9 and 10 of this Agreement shall result
in damages to the Company and that the Company could not be adequately compensated
for such damages by a monetary award. Accordingly, in the event of any such
breach, in addition to all other remedies available to the Company at law or in
equity, the Company shall be entitled as a matter of right to apply to a court
of competent jurisdiction for such relief by way of restraining order,
temporary or permanent injunction, decree or otherwise, as may be appropriate
to ensure compliance with the provisions of this Agreement.

 

11.5         The Employee acknowledges that the restrictions contained in Articles
7, 8, 9 and 10 are reasonable and valid and the Employee hereby waives all
defences to the strict enforcement thereof by the Company.

 

11.6         The Employee acknowledges that he has had the opportunity to
receive independent legal advice regarding the execution of this Agreement and
that he understands the contents of this agreement and that he is executing the
same voluntarily and without pressure from the Company or anyone on its behalf.

 

11.7         This
Agreement shall enure to the benefit of and be binding upon the parties hereto,
their respective successors, heirs, representatives, administrators and the
assigns of the Company. The Employee shall not assign or transfer this
Agreement or any of his rights or obligations hereunder.

 

11.8         The
provisions of Articles 7, 8, 9, 10 and 11 shall survive the termination of this
Agreement.

 

11.9         Any
amount payable under this Agreement shall be paid in Canadian currency.

 

11.10       This
Agreement shall be governed by and construed according to the laws of the Province
of British Columbia, and both parties hereto hereby agree that the Courts of
the Province of British Columbia have exclusive jurisdiction in any dispute,
action, cause or action or otherwise that may arise from this Agreement.

 

11.11       Any notice or other communication or writing required
or permitted to be given under this Agreement or for the purposes of this
Agreement shall be in writing and shall be sufficiently given if delivered
personally, or if transmitted by facsimile transmission (with original to
follow by mail) or other form of recorded communication, tested prior to
transmission, to:

 

12

 

(a)           if to the Company:

 

400, 1001 West
Broadway

Vancouver, British
Columbia V6H 4B1

Telephone:            604-736-3678

Facsimile:               604-736-3687

Attention:              the
President

 

(b)           if
to the Employee:

Steve Anderson

[***]

 

or to such other address as
the party to whom such notice is to be given shall have last notified the party
giving the same in the manner provided in this Article. Any notice so delivered
shall be deemed to have been given and received on the day it is so delivered
at such address, provided that such day is not a Business Day then the notice
shall be deemed to have been given and received on the Business Day next
following the day it is so delivered. Any notice so transmitted by facsimile
transmission or other form of recorded communication shall be deemed to have
been given and received on the day of its confirmed transmission (as confirmed
by the transmitting medium), provided that if such day is not a Business Day
then the notice shall be deemed to have been given and received on the Business
Day next following such day. “Business Day”
means any day that is not a Saturday, Sunday or civic or statutory holiday in
the Province of British Columbia;

 

11.12       No amendment or waiver of any provision of this Agreement shall be
binding on any party unless consented to in writing by such party and approved
by the Board in the case of the Company. No waiver of any provision of this
Agreement shall constitute a waiver of any other provision nor shall any waiver
constitute a continuing waiver unless otherwise provided.

 

IN WITNESS WHEREOF this Agreement has been executed this 9th day of January, 2006
by the parties hereto.

 

	
  SIGNED,
  SEALED AND DELIVERED

  	
  )

  	
   

  
	
  in
  the presence of

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  /s/
  Sandra Thomson

  	
   

  	
  )

  	
  /s/
  Stephen Anderson

  
	
  Witness

  	
  )

  	
  STEPHEN
  ANDERSON

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ONCOGENEX TECHNOLOGIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Scott Cormack

  
				

 

13

 

APPENDIX A

 

ONCOGENEX TECHNOLOGIES INC.

 

Bonus Plan – Milestones

 

Medium Term (3 Year) Corporate Objectives:

 

Recognizing
that our primary objective, above all else, is to improve the survival and quality of the lives of cancer patients through
rapid and efficient development of cancer therapies, and that by doing
so all stakeholders will benefit, OncoGenex is striving to achieve the
following value-creating milestones before the end of 2008:

 

[***]

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