Document:

Exhibit 10.15

 

LICENSE AGREEMENT

 

BETWEEN:

 

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

 

(the “University”)

 

AND:

 

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

 

(the “Licensee”)

 

WHEREAS:

 

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

 

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

 

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

 

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

 

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

 

1.0                                                                               DEFINITIONS:

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

(i)                                     [***]

 

(ii)                                  [***]

 

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

 

(iv)                              [***]

 

(v)                                 [***]

 

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

 

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

 

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

 

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

 

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

 

2.0                                                                             PROPERTY
RIGHTS IN AND TO THE TECHNOLOGY:

 

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

 

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

 

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

 

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

 

3.0                                                                             GRANT OF
LICENSE:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4.0                                                                             SUBLICENSING:

 

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

 

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

 

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

 

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

 

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

 

5.0                                                                             ROYALTIES:

 

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

 

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

 

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

 

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

 

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

 

5

 

6.0                                                                             EQUITY
AND ANNUAL LICENSE MAINTENANCE FEE

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6

 

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

 

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

 

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

 

7.0                                                                             PATENTS:

 

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

 

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

 

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

 

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

 

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

 

7

 

8.0                                                                             DISCLAIMER
OF WARRANTY:

 

8.1                                                                               The University represents that
as of the Commencement Date, to the best of the University Industry Liaison
Office’s knowledge and without having made any specific inquiries or
investigations, the University Industry Liaison Office is not aware of any
[***] relating to the Technology.

 

8.2                                                                               The University represents that
as of the Commencement Date, to the best of the University-Industry Liaison
Office’s knowledge, the University has all rights, title and interest in and to
the Technology.

 

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

 

(a)                                  shall correspond with a
particular description;

 

(b)                                 are of merchantable quality;

 

(c)                                  are fit for a particular
purpose; or

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

8.6                                                                               Notwithstanding Article 8.4,
in the event of an alleged infringement of the Technology or any University
Improvements or any right with respect to the Technology or any University

 

8

 

Improvements, the Licensee shall have, upon receiving
the prior written consent of the University, [***] the right to prosecute
litigation designed to enjoin infringers of the Technology or any University
Improvements. Provided  that  it has first granted its prior written
consent, the University agrees to co-operate to the extent of executing all
necessary documents and to vest in the Licensee the right to institute any such
suits, so long as all the direct and indirect costs and expenses of bringing
and conducting any such litigation or settlement shall be borne by the Licensee
and in such event all recoveries shall enure to the Licensee.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

9.0                                                                             INDEMNITY
AND LIMITATION OF LIABILITY:

 

9.1                                                                               The Licensee hereby
indemnifies, holds harmless and defends the University, its Board of Governors,
officers, employees, faculty, students, invitees and agents against any and all
claims (including all legal fees and disbursements incurred in association
therewith) arising out of the exercise of any rights under this Agreement
including, without limiting the generality of the foregoing, against any
damages or losses, consequential or otherwise, arising from or out of the use
of the Technology or any University Improvements or Products licensed under
this Agreement by the Licensee or its sublicensees or their customers or
end-users howsoever the same may arise.

 

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

 

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

 

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

 

10.0                                                                      PUBLICATION
AND CONFIDENTIALITY:

 

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

 

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

 

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

 

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

 

10

 

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

 

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

 

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

 

11.0                                                                      PRODUCTION
AND MARKETING:

 

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

 

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

 

11.3                                                                         The Licensee represents and
warrants to the University that:

 

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

 

11

 

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

 

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

 

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

 

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

 

(a)                                  on or before December 31,
2001, appoint a Board of Directors with not less than four (4) members. The
University shall be entitled to nominate one person who will have observer
status at all directors meetings;

 

(b)                                 within six (6) months of the
Commencement Date, establish and maintain a Scientific Advisory Board with
representatives from academia and industry as experts in the area of the
Technology. The Scientific Advisory Board shall meet not less than once per
year and the recommendations of such Board shall be made in writing to the
Board of Directors of the Licensee and shall provide a copy to the University
at the same time they are made available to the Board of Directors of the
Licensee, provided that the University assures the Licensee that such plans
will be maintained in confidence and that public access can be prevented;

 

(c)                                  within 12 months of the
Commencement Date:

 

(i)                                     produce a written report that
documents the technical developments and results of the test marketing, a copy
of which shall be delivered to the University;

 

(ii)                                  complete a business and
marketing plan (the “Business Plan”)
prepared in accordance with generally accepted business practices. The Business
Plan shall be updated from time to time, but in no event less than once every
calendar year. Copies of all updates of the Business Plan will be provided to
the University in a timely manner, provided that the University assures the
Licensee that such Business Plans will be maintained in confidence and that
public access can be prevented;

 

(d)                                 make its best efforts to raise capital as
set out in the Business Plan (as amended from time to time and approved by the
directors of the Licensee);

 

11.5                                                                         If the University is of the
view that the Licensee is in breach of Article 11.4, the University shall
notify the Licensee and the parties hereto shall appoint a mutually acceptable

 

12

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

13

 

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

 

11.7                                                                         If the Evaluator concludes:

 

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

 

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

 

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

 

11.8                                                                         The University may not call
for more than one evaluation pursuant to Article 11.5 in each calendar year. The
cost of an evaluation hereunder shall be borne 50% by the Licensee and 50% by
the University. If the University call for such evaluation in two consecutive
years, costs of all subsequent consecutive evaluations shall be borne fully by
the University. If the University calls for an evaluation and the Licensee is
not in breach, the University shall pay all costs of the evaluation.

 

12.0                                                                      ACCOUNTING
RECORDS:

 

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

 

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

 

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

 

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

 

14

 

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

 

13.0                                                                      INSURANCE:

 

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

 

13.2                                                                         The Licensee shall give
written notice to the University:

 

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

 

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

 

of the terms
and amount of the appropriate public liability, product liability and errors
and omissions insurance which it has placed. Such insurance shall in no case be
less than the insurance which a reasonable and prudent businessperson carrying
on a similar line of business would acquire. This insurance shall be placed
with a reputable and financially secure insurance carrier, shall include the
University, its Board of Governors, faculty, officers, employees, students, and
agents as additional insureds, and shall provide primary coverage with respect
to the activities contemplated by this Agreement. Such policy shall include
severability of interest and cross-liability clauses and shall provide that the
policy shall not be cancelled or materially altered except upon at least 30
days’ written notice to the University. The University shall have the right to
require reasonable amendments to the terms or the amount of coverage contained
in the policy. Failing the parties agreeing on the appropriate terms or the
amount of coverage, then the matter shall be determined by arbitration as
provided for herein. The Licensee shall provide the University with
certificates of insurance evidencing such coverage 30 days before commencement
of Human Clinical Trials and 30 days prior to the sales of any Product and the
Licensee covenants not to start Human Clinical Trials, or sell any Product
before such certificate is provided and approved by the University, or to sell
any Product at any time unless the insurance outlined in this Article 13.2 is
in effect.

 

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

 

14.0                                                                      ASSIGNMENT:

 

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

 

 

15

 

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

 

15.0                                                                      GOVERNING
LAW AND ARBITRATION:

 

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

 

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

 

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

 

16.0                                                                      NOTICES:

 

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

 

If to the
University:                                        The Director

University -
Industry Liaison Office

University of
British Columbia

IRC 331 - 2194
Health Sciences Mall

Vancouver,
British Columbia

V6T 1Z3

Telephone:                                    (604)822-8580

Fax:                                                                           (604)822-8589

 

If to the Licensee:                                                 The President

OncoGenex
Technologies Inc.

Suite 400, 609
– 14th Street N.W.

Calgary,
Alberta T2N 2A1

Telephone:                                    (403)-283-6051

Fax:                                                                           (403)-283-6753

 

16

 

17.0                                                                        TERM:

 

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

 

18.0                                                                        TERMINATION:

 

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

 

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

 

(a)                                  if the Licensee becomes insolvent;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

17

 

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

 

(g)                                 if the Licensee commits any
breach of Articles 4.1, 11.1, 11.2 or 13;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

18.7                                                                           The Licensee shall cease to
use the Technology or any Improvements in any manner whatsoever or to
manufacture or sell the Products within five days from the Effective Date of

 

18

 

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

 

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

 

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

 

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

 

18.9                                                                           In the event this Agreement is terminated by the University under Section
18.1, 18.2, 18.3 or 18.5, and if the Licensee has granted a sublicense under
this Agreement, provided that

 

(a)                                  such sublicense is consistent with the terms of this Agreement;

 

(b)                                 such sublicense is in good standing at the time that this Agreement is
terminated; and

 

(c)                                  the termination of this Agreement has not been disputed by the Licensee
nor held invalid by a court of competent jurisdiction in a final and
non-appealable decision,

 

the University will grant a license of the
Technology or any Improvements to such sublicensee on substantially the same
terms as are contained within the sublicense. In granting such license, the
University shall not be obligated to undertake any activities, or perform or
fulfill any covenant which, in the opinion of the University, is unlawful or
inappropriate to be undertaken by a non-profit tax-exempt educational
institution. The University will not modify or amend the financial terms
contained within the sublicense when granting a license to such sublicensee.

 

19.0                                                                        MISCELLANEOUS
COVENANTS OF LICENSEE:

 

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

 

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

 

 

19

 

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

 

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

 

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

 

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

 

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

 

20.0                                                                        GENERAL:

 

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

 

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

 

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

 

20.4                                                                           No condoning, excusing or
overlooking by any party of any default, breach or non-observance by any other
party at any time or times in respect of any covenants, provisos or conditions
of this Agreement shall operate as a waiver of such party’s rights under this
Agreement in respect of any continuing or subsequent default, breach or
non-observance, so as to defeat in any

 

20

 

way the rights of such party in respect of any such
continuing or subsequent default or breach, and no waiver shall be inferred
from or implied by anything done or omitted by such party, save only an express
waiver in writing.

 

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

 

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

 

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

 

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

 

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

 

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

 

20.11                                                                     Time shall be of the essence
of this Agreement.

 

21

 

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

 

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

 

	
  SIGNED FOR
  AND ON BEHALF of

  	
  )

  	
   

  
	
  THE
  UNIVERSITY OF BRITISH COLUMBIA

  	
  )

  	
   

  
	
  by its duly
  authorized officers:

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
   

  	
  )

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

  
	
  /s/ Indira
  Samarasekera

  	
  )

  	
  Vice
  President Research

  
	
  Authorized
  Signatory

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  /s/ Caroline
  Bruce

  	
  )

  	
   

  
	
  Authorized
  Signatory

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  

 

 

	
  SIGNED FOR
  AND ON BEHALF of

  	
  )

  	
   

  
	
  ONCOGENEX
  TECHNOLOGIES INC.

  	
  )

  	
   

  
	
  by its duly
  authorized officers:

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  /s/ Scott
  Cormack

  	
  )

  	
   

  
	
  Authorized
  Signatory

  	
  )

  	
   

  
	
  Scott D.
  Cormack

  	
  )

  	
   

  
	
  President
  & CEO

  	
  )

  	
   

  

 

22

 

SCHEDULE
“A”

 

DESCRIPTION
OF “TECHNOLOGY”

 

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

 

1.                                     [***]

 

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

 

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

 

23Exhibit 10.16

 

LICENSE AGREEMENT

 

BETWEEN:

 

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

 

(the “University”)

 

AND:

 

ONCOGENEX TECHNOLOGIES INC., a corporation incorporated under
the laws of Canada, and having offices at Suite 203, 1275 West 6th
Avenue, in the City of Vancouver, in the Province of British Columbia, V6H 1A6

 

(the “Licensee”)

 

WHEREAS:

 

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

 

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

 

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

 

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

 

1.0                                                                               DEFINITIONS:

 

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

 

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

 

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

 

*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”
shall mean any and all knowledge, know-how, information, and/or techniques
disclosed by the one party (referred to in this capacity as the “Provider”) to another
(referred to in this capacity as the “Recipient”), including,
without limiting the generality of the foregoing, all research, data,
specifications, plans, drawings, prototypes, models, documents, records,
instructions, manuals, papers, or other materials of any nature whatsoever,
whether written or otherwise, relating to same. In order to constitute “Confidential
Information” for the purposes of this Agreement, the Provider must clearly
identify it in writing as being confidential, or if the disclosure takes place
orally or in some other non-tangible form, the Provider must summarize it in
writing and identify it as being confidential within thirty (30) days of making
the disclosure. Furthermore, such disclosures shall not be considered “Confidential
Information” for the purposes of this Agreement if and when it:

 

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

 

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

 

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

 

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

 

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

 

(d)                                 “Date of Commencement” or “Commencement Date”:  this Agreement will be deemed to have come
into force on the Date of Commencement which shall be the 1st day of September,
2002, and shall be read and construed accordingly;

 

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

 

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

 

(g)                                 “Information”:  any and all Technology and any and all
Improvements, the terms and conditions of this Agreement and any and all oral,
written, electronicor other communications and other information disclosed or
provided by any of the parties including any and all analyses or conclusions
drawn or derived therefrom regarding this Agreement and information developed
or disclosed hereunder, or

 

2

any party’s raw materials, processes,
formulations, analytical procedures, methodologies, products, samples and
specimens or functions;

 

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

 

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

 

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

 

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

 

(i)                                     [***]

 

(ii)                                  [***]

 

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

 

(iv)                              [***]

 

(v)                                 [***]

 

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

 

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

 

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

 

3

 

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

 

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

 

2.0                                                                               PROPERTY RIGHTS IN AND TO THE
TECHNOLOGY:

 

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

 

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

 

2.3                                                                                 On the last working day of June and December of each and every year
during which this Agreement remains in full force and effect, the Licensee
shall deliver in writing to the University the details of any and all
Improvements which the Licensee and any sublicensees of the Licensee have
developed and/or acquired during the previous six (6) month period.

 

3.0                                                                               GRANT OF LICENSE:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

4

associated with the
registrations contemplated by this Article 3.5 shall be paid for by the
Licensee.

 

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

 

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

 

4.0                          SUBLICENSING:

 

4.1                           The Licensee shall have the right to grant
sublicenses to Affiliated Companies and other third parties with respect to the
Technology and any University Improvements with the prior written consent of
the University, which consent shall not be unreasonably refused. The Licensee
shall not be obligated to obtain the University’s consent to the granting of a
sublicense if the proposed sublicensee has a market capitalization in excess of
CAN. $500,000,000 at the time of the granting of the sublicense, provided
always that such sublicense shall be in full compliance with the terms of this
Agreement. The Licensee will furnish the University with a copy of each
sublicense granted within thirty (30) days after execution. Such sublicenses
will be considered to be Confidential Information of the Licensee, and will be
subject to the Confidentiality provisions of Article 10.

 

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

 

4.3                           Prior to the beginning of a sublicense
agreement, the Licensee shall give written notice to the University as to which
jurisdictions the applicable sublicensee is carrying on business in. Within
five (5) days of being aware of the same, the Licensee shall provide written
notice to the University if any sublicensee is carrying on business in a
jurisdiction outside of British Columbia.

 

4.4                           If the University has registered one or
more financing statements as set forth in Article 3.5, the Licensee shall,
if requested by the University, register a financing change statement under the
provisions of the Personal Property Security Act of
British Columbia and/or under the provisions of similar legislation in those
jurisdictions in which each sublicensee carries on business or has its chief
place of business in order to add each sublicensee as an additional debtor to
the registration referred to in Article 3.5 forthwith upon execution of
each sublicense, and shall furnish the University with a copy of the
verification statement with respect to each such filing within fifteen (15)
days after receipt of same. All costs associated with the filings contemplated
by this Article 4.4 shall be paid for by the Licensee. The Licensee shall give

 

5

written notice to the
University of any and all changes of jurisdiction within or outside of Canada
in which each sublicensee is carrying on business and/or any and all changes in
jurisdiction of each sublicensee’s chief place of business and shall file the
appropriate documents in the various provincial Personal Property Registries or
similar registries within or outside of Canada to document such changes in
jurisdiction.

 

5.0                          ROYALTIES AND
MILESTONE PAYMENTS:

 

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

 

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

 

5.3                           The royalty shall become due and payable
within thirty (30) days of each respective Royalty Due Date and shall be
calculated with respect to the Revenue in the three (3) month period
immediately preceding the applicable Royalty Due Date.

 

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

 

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

 

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

 

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

 

6

 

	
  MILESTONE

  	
   

  	
  Milestone Payment for the

  First Product

  	
   

  	
  Milestone Payment

  for Each

  Subsequent Product

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

6.0                          EQUITY AND ANNUAL
LICENSE MAINTENANCE FEE

 

6.1                           As part of the consideration for the
rights granted by the University to the Licensee hereunder, the Licensee agrees
to deliver to the University within thirty (30) days following the execution of
this Agreement, and in lieu of an initial license fee, 160,000 Common Shares in
the capital of the Licensee (the “UBC Shares”).

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

7

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

 

6.6                                                                                 Any shareholders’ agreement or other relevant transaction document
entered into by the Licensee and its other shareholders, shall include an
agreement between the University and such other shareholders of the Licensee,
that prevents such shareholders (each a “Selling Shareholder”)
from selling any shares in the capital stock of the Licensee to any third party
unless the UBC Shares are included at the option of the University, in such
sale, pro rata based on thetotal number
of shares owned by the Selling Shareholder and the University, and on the sameterms and conditions as those offered to the Selling
Shareholder.

 

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

 

6.8                                                                                 In further consideration for the license granted hereunder, the
Licensee shall pay to the University, in addition to all other amounts due
under this Agreement, an annual maintenance fee of CAN. $2,000.00 payable on or
before January 2nd of each year during which this Agreement remains
in full force and effect, commencing on January 2, 2003 (the “Annual Maintenance Fee”). Neither
all nor any part of the Annual Maintenance Fee paid shall be refundable to the
Licensee under any circumstances. The Annual Maintenance Fee is intended to
cover maintenance of this Agreement by the University, and shall be separate
and distinct from any royalties due to the University under this Agreement.

 

6.9                                                                                 Any information provided to the University under Article 6.5 or
received by the University’s observer under Article 6.7 will be considered
Confidential Information of the Licensee and will be subject to the
Confidentiality provisions of Article 10.

 

7.0                                                                               PATENTS:

 

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

 

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

 

8

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

 

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

 

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

 

8.0                                                                               DISCLAIMER OF WARRANTY:

 

8.1                                                                                 The University represents that as of the Commencement Date, to the
best of the University Industry Liaison Office’s knowledge and without having
made any specific inquiries or investigations, the University Industry Liaison
Office is not aware of any [***]relating
to the Technology.

 

8.2                                                                                 The University represents that as of the Commencement Date, to the
best of the University-Industry Liaison Office’s knowledge, the University has
all rights, title and interest in and to the Technology.

 

8.3                                                                                 Subject to Articles 8.1 and 8.2, the University makes no
representations, conditions or warranties, either express or implied, with
respect to the Technology or any University Improvements or the Products. Without
limiting the generality of the foregoing, the University specifically disclaims
any implied warranty, condition or representation that the Technology or any
University Improvements or the Products:

 

(a)                                  shall correspond with
a particular description;

 

(b)                                 are of merchantable
quality;

 

(c)                                  are fit for a
particular purpose; or

 

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

 

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

 

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

 

8.5                                                                                 Subject to Articles 8.1 and 8.2, nothing in this Agreement
shall be construed as:

 

9

 

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

 

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

 

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

 

8.6                                                                                 Notwithstanding Article 8.5, in the event of an alleged
infringement of theTechnology or any University
Improvements or any right with respect to the Technology or any University
Improvements, the Licensee shall have, upon receiving the prior written consent
of the University, [***] the right to prosecute litigation designed to enjoin
infringers of the Technology or any University Improvements. Providedthatit
has first granted its prior written consent, the University agrees to co-operate
to the extent of executing all necessary documents and to vest in the Licensee
the right to institute any such suits, so long as all the direct and indirect
costs and expenses of bringing and conducting any such litigation or settlement
shall be borne by the Licensee and in such event all recoveries shall enure to
the Licensee.

 

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

 

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

 

(b)                                 except as provided in
Article 8.7(d), all costs and expenses incurred by theLicensee or any sublicensee
of the Licensee in investigating, resisting, litigating and settling such a
complaint, including the payment of any award of damages and/or costs to any
third party, shall be paid by the Licensee or any sublicensee of the Licensee,
as the case may be;

 

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

 

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

 

(e)                                  notwithstanding
Article 8.5, if the complainant is willing to accept an offer of
settlement and one of the parties to this Agreement is willing to make or
accept such offer and the other is not, then the unwilling party shall conduct
all further

 

10

proceedings
at its own expense, and shall be responsible for the full amount of any
damages, costs, accounting of profits and settlement costs in excess of those
provided in such offer, but shall be entitled to retain unto itself the benefit
of any litigated or settled result entailing a lower payment of costs, damages,
accounting of profits and settlement costs than that provided in such offer;
and

 

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

 

9.0                                                                               INDEMNITY AND LIMITATION OF
LIABILITY:

 

9.1                                                                                 The Licensee hereby indemnifies, holds harmless and defends the
University, its Board of Governors, officers, employees, faculty, students,
invitees and agents against any and all claims (including all legal fees and
disbursements incurred in association therewith) arising out of the exercise of
any rights under this Agreement including, without limiting the generality of
the foregoing, against any damages or losses, consequential or otherwise,
arising from or out of theuse of the
Technology or any University Improvements or Products licensed under this
Agreement by the Licensee or its sublicensees or their customers or end-users
howsoever the same may arise.

 

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

 

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

 

9.4                                                                                 No action, whether in contract or tort (including negligence), or
otherwise arising out of or in connection with this Agreement, may be brought
by the Licensee more than six (6) months after the Licensee has notice of the
cause of action occurring.

 

10.0                                                                        PUBLICATION AND CONFIDENTIALITY:

 

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

 

11

10.2                                                                           The parties shall keep and use all of the Confidential Information
in confidence and will not, without the other party’s prior written consent,
disclose any Confidential Information to any person or entity, except those
officers, employees, faculty, students and professional advisors who require
said Confidential Information in performing their obligations under this
Agreement. The Licensee covenants and agrees that it will initiate and maintain
an appropriate internal program limiting the internal distribution of the
Confidential Information to only those officers, employees and professional
advisors who require said Confidential Information in performing their
obligations under this Agreement and who have signed confidentiality and non-disclosure
agreements in a form approved by the Licensee’s Board of Directors. The
University shall not be restricted from publishing its own Confidential
Information related to the Technology and/or University Improvements, provided
that any such publication or disclosure is made in accordance with Article 10.6
hereof, and provided further that such publication or disclosure does not
include any Confidential Information of the Licensee, including without
limitation any information related to its business, partners or Licensee
Improvements, without the Licensee’s express prior written consent. All
Confidential Information must be marked in writing as Confidential at the time
of disclosure or within thirty (30) days from receipt by the receiving party.

 

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

 

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

 

10.5                                                                           Notwithstanding any termination or expiration of this Agreement, the
obligations created in this Article 10 shall survive and be binding upon
each party, and their respectivesuccessors
and assigns.

 

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

 

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

 

(b)                                 the Licensee has not,
within thirty (30) days after receipt of said Manuscript, objected in writing
to such Manuscript in accordance with this Article 10.6.

 

The Licensee
may object to a Manuscript on the grounds that it contains material the
Licensee considers objectionable (the “Objectionable
Material”) and/or on the grounds that it
discloses patentable subject matter which needs protection. In the event that
the Licensee makes such objection on the former ground, the Licensee will
clearly specify what it considers Objectionable Material, and the University
will ensure that its researchers refrain from disclosing the Manuscript for a
period of up to six (6) months after the date the Licensee received the
Manuscript. During such six (6) month period, the researchers, the University
and the Licensee shall work together to revise the Manuscript to remove or
alter the Objectionable Material as follows: (a) if the Objectionable Material
discloses a Licensee Improvement or other Confidential

 

12

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

 

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

 

11.0                                                                        PRODUCTION AND MARKETING:

 

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

 

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

 

11.3                                                                           The Licensee represents and warrants to the University that:

 

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

 

13

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

 

(c)                                  it has or intends to
have the expertise and resources to monitor in Major Market Countries patent
infringement with respect to any patent relating to the Technology and any
Improvements licensed hereunder;  and

 

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

 

11.4                                                                           The parties acknowledge that three separate technologies are included in the Technology
licensed hereunder:  (a) insulin growth factor binding protein – 2 (“BP2”);
(b) insulin growth factor binding protein – 2 and insulin growth factor binding
protein – 5 (“Bi-Specific”); and (c) Relaxin (“Relaxin”). All such technologies are at a
very early stage of development, and it is too early to determine which
invention will become a Product or Products hereunder. It is further
acknowledged that the Licensee has an existing license agreement with the
University for a technology known as insulin growth factor binding protein – 5
(“BP5”) (the “BP5 License”),
and that it is intended that [***] shall become a lead Product of the Licensee,
and that the [***] technologies will be used to support the intellectual
property position of the Licensee in respect of such Product. Further, the
parties acknowledge and agree that any efforts to develop and exploit a Product
incorporating all or part of the technology or Improvements related to [***]
will be considered development and exploitation of all [***] technologies for
the purposes of this Article 11.4 and Article 11.4 of the BP5 License, provided
that the Licensee continues to undertake an active research program with
respect to the technologies which are not the Licensee’s lead Product and the
Licensee continues to pay all patent costs incurred by the University pursuant
to Article 7.1. Therefore, the Licensee shall use reasonable commercial efforts
to develop and exploit all or part of the Technology and any Improvements and
to promote, market and sell the Products and utilize all or part of the
Technology and any Improvements and to meet or cause to be met the market
demand for the Products and the utilization of all or part of the Technology
and any Improvements. Without limiting the generality of the foregoing, the
Licensee shall, within twelve (12) months of the Commencement Date complete a
business and marketing plan (the “Business Plan”)
prepared in accordance with generally accepted business practices. The Business
Plan shall be updated from time to time, but in no event less than once every
calendar year. Copies of all updates of the Business Plan will be provided to
the University in a timely manner, provided that the University assures the
Licensee that such Business Plans will be maintained in confidence and that
public access can be prevented.

 

Notwithstanding the foregoing, in the event that the
Licensee has not taken reasonable commercial efforts to develop and exploit
each of [***], as evidenced by failing to engage in an active research program
to the reasonable satisfaction of the University with respect to each of [***]
for in excess of 24 months, the Licensee shall either:

 

(a)                                  amend the license to
exclude that technology;  or

 

14

(b)                                 enter into an
agreement with the University to make annual payments of [***] to the
University to maintain the license for such technology, notwithstanding the
Licensee may not be taking reasonable commercial efforts to exploit such
technology.

 

The
University and the Licensee shall enter into an amending agreement with respect
to the BP5 License which shall carry out the intent of this paragraph.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

15

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

 

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

 

(ii)                                  was substantially due to the Licensee’s failure to use commercially
reasonable efforts to comply with the requirements of Article 11.4 with
respect to the Technology and Improvements licensed hereunder, or

 

(iii)                               was substantially due to the Licensee’s failure to use commercially
reasonable efforts to comply with the requirements of Article 11.4 with
respect to only a portion of the Technology and/or Improvements licensed
hereunder.

 

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

 

11.7                                                                           If the Evaluator concludes:

 

(a)                                  pursuant to
Article 11.6(d)(ii) that the Licensee’s breach was substantially due to
the Licensee’s failure to use commercially reasonable efforts with respect to
the Technology and Improvements licensed hereunder, then the University shallat its
option have the right to terminate this Agreement as provided in
Article 18;

 

(b)                                 pursuant to
Article 11.6(d)(iii) that the Licensee’s breach was substantially due to
the Licensee’s failure to use commercially reasonable efforts with respect to
only a portion of the Technology or Improvements, then the University shall at
its option have the right to redefine the definition of Technology or
Improvements (as applicable) to remove said portion of the Technology or
Improvements from such definition, such that the licensed rights will be terminated
only with respect to said portion, provided, however, that the University shall
not terminate this Agreement for breach of Article 11.4, nor shall it change
the nature of the license granted hereunder with respect to the remaining
Technology and Improvements;

 

(c)                                  pursuant to
Article 11.6(d)(i) that the Licensee’s breach was substantially due to
external market conditions beyond the control of the Licensee, or pursuant to
Article 11.6(d) that the Licensee is not in breach of Article 11.4,
then in either case the University shall not terminate this Agreement for
breach of Article 11.4, nor shall it change the nature of the license
granted hereunder.

 

11.8                                                                           The University may not call for more than one evaluation pursuant to
Article 11.5 in each calendar year. The cost of an evaluation hereunder
shall be borne 50% by the Licensee and 50% by the University. If the University
call for such evaluation in two (2) consecutive years, costsof all
subsequent consecutive evaluations shall be borne fully by the University. If
the University calls for an evaluation and the Licensee is not in breach, the
University shall pay all costs of the evaluation.

 

16

12.0                                                                        ACCOUNTING RECORDS:

 

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

 

12.2                                                                           The Licensee shall deliver to the University on the date thirty (30)
days after each and every Royalty Due Date, together with the royalty payable
thereunder, the Accounting and a report on all sublicensing activity, including
the identity of each sublicensee and the location of the business of each
sublicensee. Until the first sale of a Product, the Licensee can provide the
Accounting and the report on sublicensing activity on an annual basis on the
anniversary of the execution of this Agreement.

 

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

 

12.4                                                                           The Licensee shall retain the accounts and records referred to in
Article 12.1 above for at least six (6) years after the date upon which
they were made and shall permit any duly authorized representative of the
University to inspect such accounts and records during normal business hours of
the Licensee at the University’s expense. The Licensee shall furnish such
reasonable evidence as such representative will deem necessary to verify the
Accounting and will permit such representative to make copies of or extracts
from such accounts, records and agreements at the University’s expense. If an
inspection of the Licensee’s records by theUniversity shows an
under-reporting or underpayment by the Licensee of any amount to the
University, in excess of 5% for any twelve (12) month period, then the Licensee
shall reimburse the University for the cost of the inspection as well as pay to
the University any amount found due (including any late payment charges or
interest) within thirty (30) days of notice by the University to the Licensee.

 

12.5                                                                           During the term of this Agreement, and thereafter, the University
shall use reasonable efforts to ensure that all information provided to the
University or its representatives pursuant to this Article remains confidential
and is treated as such by the University in accordance with the provisions of
Article 10.

 

13.0                                                                        INSURANCE:

 

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

 

13.2                                                                           The Licensee shall give written notice to the University:

 

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

 

17

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

 

of the terms and amount of the appropriate public
liability, product liability and errors and omissions insurance which it has
placed. Such insurance shall in no case be less than the insurance which a
reasonable and prudent businessperson carrying on a similar line of business
would acquire. This insurance shall be placed with a reputable and financially
secure insurance carrier, shall include the University, its Board of Governors,
faculty, officers, employees, students, and agents as additional insureds, and
shall provide primary coverage with respect to the activities contemplated by
this Agreement. Such policy shall include severability of interest and cross-liability
clauses and shall provide that the policy shall not be cancelled or materially
altered except upon at least thirty (30) days’ written notice to the University.
The University shall have the right to require reasonable amendments to the
terms or the amount of coverage contained in the policy. Failing the parties
agreeing on the appropriate terms or the amount of coverage, then the matter
shall be determined by arbitration as provided for herein. The Licensee shall
provide the University with certificates of insurance evidencing such coverage
thirty (30) days before commencement of Human Clinical Trials and thirty (30)
days prior to the sales of any Product and the Licensee covenants not to start
Human Clinical Trials, or sell any Product before such certificate is provided
and approved by the University, or to sell any Product at any time unless the
insurance outlined in this Article 13.2 is in effect.

 

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

 

14.0                                                                        ASSIGNMENT:

 

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

 

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

 

15.0                                                                        GOVERNING LAW AND ARBITRATION:

 

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

 

18

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

 

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

 

16.0                                                                        NOTICES:

 

16.1                                                                           Unless otherwise agreed to in writing by the parties, all payments,
reports and notices or other documents that any of the parties hereto are
required or may desire to deliver to any other party hereto may be delivered
only by personal delivery or by registered or certified mail, telex or fax, all
postage and other charges prepaid, at the address for such party set forth
below or at such other address as any party may hereinafter designate in
writing to the others. Any notice personally delivered or sent by telex or fax
shall be deemed to have been given or received at the time of delivery,
telexing or faxing. Any notice mailed as aforesaid shall be deemed to have been
received on the expiration of five (5) days after it is posted, provided that
if there shall be at the time of mailing or between the time of mailing and the
actual receipt of the notice a mail strike, slow down or labour dispute which
might affect the delivery of the notice by the mails, then the notice shall
only be effected if actually received.

 

If to the University:                                        The Director

University - Industry Liaison Office

University of British Columbia

IRC 331 - 2194 Health Sciences Mall

Vancouver, British Columbia

V6T 1Z3

Telephone:    (604) 822-8580

Fax:               (604)
822-8589

 

If to the Licensee:                                                 The President

OncoGenex Technologies Inc.

Suite 203, 1275 West 6th Avenue 

Vancouver, British Columbia

V6H 1A6

Telephone:    (604) 736-3678

Fax:               (604)
736-3687

 

17.0                                                                        TERM:

 

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

 

19

18.0                                                                        TERMINATION:

 

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

 

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

 

(a)                                  if the Licensee
becomes insolvent;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(g)                                 if the Licensee commits
any breach of Articles 4.1, 11.1, 11.2 or 13;

 

(h)                                 if it is determined,
pursuant to Article 11.6(d)(ii), that the Licensee is in breach of Article
11.4 substantially due to the Licensee’s failure to use commercially

 

20

reasonable efforts with respect to Technology
and Improvements licensed hereunder;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

18.7                                                                           The Licensee shall cease to use the Technology or any University
Improvements in anymanner whatsoever or to manufacture or sell the Products containing
all or some of the Technology and/or University Improvements within five (5)
days from the Effective Date of

 

21

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

 

18.8                                                                           Notwithstanding the termination of this Agreement, Article 12
shall remain in fullforce and effect until six (6) years after:

 

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

 

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

 

18.9                         In
the event this Agreement is terminated by the University under Section 18.1,
18.2, 18.3 or 18.5, and if the Licensee has granted a sublicense under this
Agreement, provided that:

 

(a)                                  such sublicense is consistent with the terms of this
Agreement;

 

(b)                                 such sublicense is in good standing at the time that
this Agreement is terminated; and

 

(c)                                  the termination of this Agreement has not been disputed
by the Licensee nor held invalid by a court of competent jurisdiction in a
final and non-appealable decision,

 

the
University will grant a license of the Technology or any University
Improvements to such sublicensee on substantially the same terms as are
contained within the sublicense. In granting such license, the University shall
not be obligated to undertake any activities, or perform or fulfill any
covenant which, in the opinion of the University, is unlawful or inappropriate
to be undertaken by a non-profit tax-exempt educational institution. The
University will not modify or amend the financial terms contained within the
sublicense when granting a license to such sublicensee.

 

19.0                                                                        MISCELLANEOUS COVENANTS OF
LICENSEE:

 

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

 

22

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

 

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

 

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

 

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

 

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

 

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

 

20.0                                                                        GENERAL:

 

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

 

20.2                                                                           Nothing contained herein shall be deemed or construed to create
between theparties hereto a partnership or joint venture. No party shall have
the authority to act on behalf of any other party, or to commit any other party
in any manner or cause whatsoever or to use any other party’s name in any way
not specifically authorized by this Agreement. No party shall be

 

23

liable for any act, omission,
representation, obligation or debt of any other party, even if informed of such
act, omission, representation, obligation or debt.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

20.11                                                                     Time shall be of the essence of this Agreement.

 

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

 

IN WITNESS WHEREOF the parties hereto have hereunto
executed this Agreement on the 22nd day of November, 2002 but effective as of
the Dateof Commencement.

 

24

 

	
  SIGNED
  FOR AND ON BEHALF of

  	
  )

  	
   

  
	
  THE UNIVERSITY OF BRITISH COLUMBIA

  	
  )

  	
   

  
	
  by
  its authorized signatories:

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
   

  	
  )

  	
  David
  P. Jones 

  
	
   

  	
  )

  	
  Associate
  Director 

  
	
  /s/
  David Jones

  	
  )

  	
  University-Industry
  Liaison

  
	
  Authorized
  Signatory

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  /s/
  Indira Samarasekera

  	
  )

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

  
	
  Authorized
  Signatory

  	
  )

  	
  Vice
  President Research

  

 

	
  SIGNED
  FOR AND ON BEHALF of

  	
  )

  	
   

  
	
  ONCOGENEX TECHNOLOGIES INC.

  	
  )

  	
   

  
	
  by
  its authorized signatory:

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  /s/
  Scott Cormack

  	
  )

  	
   

  
	
  Authorized
  Signatory

  	
  )

  	
   

  

25

SCHEDULE “A”

 

DESCRIPTION OF “TECHNOLOGY”

 

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

 

1.                                       [***]

 

2.                                       [***]

 

3.                                       [***]

 

4.                                       [***]

 

5.                                       And all applications that may be filed which read on the claims
within the patent applications set out above, 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.

 

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

 

 

AMENDING
AGREEMENT

 

This Agreement
is signed October 12, 2005 but is effective as of the 12th day of September,
2002 (the “Effective Date”).

 

Between:

 

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

 

(the “University”)

 

- and -

 

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

 

(the “Licensee”)

 

WHEREAS:

 

A.                                   The University and the Licensee entered into a license agreement
with a Commencement Date of September 1, 2002 (“Bi-Specific License Agreement”) pursuant to which the University
granted the Licensee an exclusive worldwide license to three separate
technologies: (a) insulin growth factor binding protein – 2; (b) insulin growth
factor binding protein – 2 and insulin growth factor binding protein – 5; and
(c) Relaxin;

 

B.                                     The University and the Licensee now wish to amend Schedule “A” of the Bispecific License Agreement by removing the
Relaxin technology from the License and updating Schedule “A”.

 

Now therefore,
in consideration of the mutual promises and covenants contained in this
Amending Agreement, the parties hereto covenant and agree with each other as
follows:

 

1.                                       Schedule “A” of the
Bispecific License Agreement is amended by deleting it in its entirety and
replacing it with the new Schedule “A”
attached hereto.

 

2.                                       Relaxin related patent expenses reimbursed to UBC from the Licensee,
pursuant to section 7.3 of the Bispecific License Agreement, before the
Effective Date of the current Amendment, are not refundable to the Licensee.

 

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

 

 

IN WITNESS
WHEREOF the parties have executed this Amendment on September           ,
2005, with the intent of confirming the parties’ intentions as of the Effective
Date.

 

	
  SIGNED FOR
  AND ON BEHALF OF

  	
   

  	
   

  
	
  THE
  UNIVERSITY OF BRITISH COLUMBIA

  	
   

  	
   

  
	
  by its duly
  authorized officers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  J.P. Heale,
  PhD, MBA

  
	
   

  	
   

  	
  Associate
  Director

  
	
  /s/ J.P.
  Heale

  	
   

  	
   

  	
  University-Industry
  Liaison Office

  
	
  Authorized
  Signatory

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Authorized
  Signatory

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNED FOR
  AND ON BEHALF OF

  	
   

  	
   

  
	
  ONCOGENEX
  TECHNOLOGIES INC.

  	
   

  	
   

  
	
  By its duly
  authorized officers:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Scott
  Cormack

  	
   

  	
   

  	
   

  
	
  Authorized
  Signatory

  	
   

  	
   

  

 

2

 

SCHEDULE
“A”

 

DESCRIPTION
OF “TECHNOLOGY”

 

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

 

 

	
  UBC

  File #

  	
   

  	
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  UBC

  File #

  	
   

  	
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  Issued

  Patent #

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

 

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

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]