Document:

EXHIBIT
10.25

 

ELLIOTT
BAY OFFICE PARK

OFFICE LEASE

 

THIS LEASE, made the 15th day of February, 2002, by and between SELIG
REAL ESTATE HOLDINGS SIX, a Washington general partnership, whose address is
1000 Second Avenue, Suite 1800, Seattle, Washington, 98104-1046, hereinafter
referred to as “Lessor” and NEORX CORPORATION INC., a Washington corporation,
whose address is 410 West Harrison Street, Seattle, Washington, 98119,
hereinafter referred to as “Lessee”.

 

1.             DESCRIPTION,
Lessor in consideration of the agreements contained in this lease, does hereby
lease to Lessee, upon the terms and conditions hereinafter set forth,
Suite 500 consisting of approximately 20,764 rentable square feet*
(hereinafter referred to as “Premises”) situated on the 5th floor level of the
Elliott Bay Office Park, 300 Elliott Avenue West, City of Seattle, State of
Washington 98119, the legal description of which is:

 

Parcel A:  All of Block 9,
D.T. Denny’s Waterfront Addition to the City of Seattle, according to the plat
recorded in Volume 2 of Plats, Page 61, in King County, Washington.

 

Parcel B:  Block 161,
Seattle Tidelands.

 

*Rentable square footage stated above is an estimate of the rentable
square footage and is based on the Building Owners and Managers Association
Standard Method for Measuring Area in Office Buildings (ANSI/BOMA
Z65.1-1996).  For purposes of this
lease, the parties agree that the rentable square footage of the Premises is
20,764.

 

2.             TERM,  The term of this lease shall be for a period
of eighty-four (84) months, commencing on that date which is five (5) business
days after Lessor has completed construction of the tenant improvements
described in Article 38 below (“Tenant Improvements”) and given notice to
Lessee that the Premises are ready for occupancy, except that the term shall
not commence earlier than June 1, 2002 without Lessee’s prior written
consent.  The term shall expire
eighty-four (84) months after the commencement date.  Lessor will use its best efforts to complete construction of all
Tenant Improvements and tender possession of the Premises to Lessee on or
before June 1, 2002.  If the term
has not commenced by August 1, 2002, this lease will automatically
terminate without notice and be of no further force or effect.

 

The parties acknowledge that Lessee desires to negotiate an early
termination of its lease of premises at 501 Elliott Avenue West (the “Current
Lease”) effective June 1, 2002, and that if the Tenant Improvements are
not substantially complete and the Premises ready for occupancy on that date,
Tenant may suffer damages as a 

 

 

result of the delay. 
Accordingly, the parties agree that if the Current Lease has been
terminated on June 1, 2002, and if the Tenant Improvements are not
substantially complete and ready for occupancy on June 1, 2002, then Lessor
shall assume and pay, and shall hold Lessee harmless from and against any and
all holdover costs that Lessee may incur under the Current Lease resulting from
Lessee having to hold over in the leased premises except to the extent that the
delay in completion of the Tenant Improvements is caused by events of Force
Majeure or Tenant Delay.  For purposes
of this lease, the term Force Majeure shall mean acts of God, strikes,
lockouts, labor troubles, inability to procure materials despite commercially
reasonable efforts to do so, orders or directives of governmental bodies, and
other similar causes beyond a party’s reasonable control.  The term Tenant Delay shall mean the failure
of Lessee to provide construction documents to Lessor on or before March 11,
2002, or any delay in fact caused by a change requested by Lessee to the
construction documents approved by Lessor.

 

3.             RENT, Lessee
covenants and agrees to pay Lessor rent each month in advance on the first day
of each calendar month.  Rent shall be
computed at the annual base rental rate of $26.00 per rentable square
foot.  Rent for any fractional calendar
month, at the beginning or end of the term, shall be the pro rated portion of
the rent computed on an annual basis (assuming a 365-day year).  Provided however, if Lessee is unable to
terminate the Current Lease by the commencement date of the term of this lease,
and remains liable for payment of rent pursuant to the terms of the Current
Lease, then rent for the Premises shall abate for so long as Lessee is
obligated to pay rent under the Current Lease through October 31, 2002.  However, for each of the months after the
commencement date and through October, 2002 that Lessee does not pay any rent
to Lessor, then the base rental rate set forth above shall be increased by 30¢
per rentable square foot, e.g., if Lessee is required to pay rent at 501
Elliott Avenue West for the months of June, July, August and September, and if
Lessee does not pay any rent to Lessor during those months, then Lessee’s annual
rental rate for the Premises shall be revised to the annual rental rate of
$27.20 effective October 1, 2002, i.e., 30¢ x 4 months = $1.20 + $26.00 =
$27.20.

 

4.             CONSIDERATION,  As consideration for the execution of this
lease, Lessee has this date paid to Lessor the sum of $44,988.67, receipt of
which is hereby acknowledged.  In the
event Lessee fully complies with all the terms and conditions of this lease,
but not otherwise, an amount equal to such sum shall be credited on the last
month’s rental on the term of this lease.

 

5.             USES, Lessee
agrees that Lessee will use and occupy said Premises for general offices and
related purposes and for no other purposes.

 

6.             RULES AND
REGULATIONS,  Lessee and their
agents, employees, servants or those claiming under Lessee will at all times
observe, perform and abide by all of the Rules and Regulations printed on this
instrument (if any), and any reasonable rules and regulations applicable to all
of the tenants in the building that may be hereafter promulgated by Lessor, all
of which it is covenanted and agreed by the parties hereto shall be and are
hereby made a part of this lease.

 

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7.             CARE AND
SURRENDER OF PREMISES,  Lessee shall
take good care of the Premises and shall promptly make all necessary repairs
except those required herein to be made by Lessor.  At the expiration or sooner termination of this lease, Lessee,
without notice, will immediately and peacefully quit and surrender the Premises
broom clean, in good order, condition and repair (damage by reasonable wear,
the elements, or fire excepted).  Lessee
shall be responsible for removal of all of Lessee’s personal property and
fixtures from the Premises, (excepting fixtures that are a part of the initial
Tenant Improvements and excepting any property of the Lessor) including, but
not limited to, the removal of Lessee’s communication and video cabling,
telephone equipment and moveable signage. 
Lessee shall be responsible for repairing any damage to the Premises
caused by such removal.  If Lessee fails
to remove and restore the Premises at lease expiration, then Lessor shall have
the right to remove said property and restore the Premises and Lessee shall be
responsible for all costs associated therewith.  Lessee shall also be responsible for those costs incurred by
Lessor for removing debris Lessee may discard in the process of preparing to
vacate the Premises to the extent those costs exceed normal costs of garbage
removal upon cleaning the Premises and disposal of Lessee’s personal property
remaining in the Premises.

 

8.             ALTERATIONS,
Lessee shall not make any alterations or improvements in, or additions to
(collectively, “Alterations”) said Premises where the total cost of the project
exceeds $15,000 without first obtaining the written consent of Lessor, whose
consent shall not be unreasonably withheld. 
Lessor’s consent shall also be required (and shall not be unreasonably
withheld) for any alterations to building electrical, plumbing or mechanical
systems.  All such Alterations shall be
at the sole cost and expense of Lessee and shall become the property of Lessor
and shall remain in and be surrendered with the Premises as a part thereof at
the termination of this lease, without disturbance, molestation or injury.  Lessee shall provide notice to Lessor of any
planned Alterations for which Lessor’s consent is not required, together with a
copy of the plans for those Alterations. 
If Lessee makes any Alterations that involve changes to building
electrical, plumbing or mechanical systems, Lessee shall use contractors
approved by Lessor for any changes to those systems.

 

9.             RESTRICTIONS,
Lessee will not use or permit to be used in said Premises anything that will
increase the rate of insurance on said building or any part thereof, nor
anything that may be dangerous to life or limb; nor in any manner deface or
injure said building or any part thereof; nor overload any floor or part
thereof; nor permit any objectionable noise or odor to escape or to be emitted
from said Premises, or do anything or permit anything to be done upon said
Premises in any way tending to create a nuisance or to disturb any other tenant
or occupant of any part of said building. 
Lessee, at Lessee’s expense, will comply with all health, fire and
police regulations respecting said Premises, except that Lessee will not be
responsible for the cost of capital improvements that are required generally
and not as a result solely of Lessee’s use of the Premises.  The Premises shall not be used for lodging
or sleeping, and no animals or birds will be allowed in the building.

 

10.           WEIGHT
RESTRICTIONS, Safes, furniture or bulky articles may be moved in or out of
said Premises only at such hours and in such manner as will least inconvenience
other tenants, which hours and manner shall be at the reasonable 

 

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discretion of Lessor.  No safe or
other article of over 2,000 pounds shall be moved into said Premises without
the consent of Lessor, whose consent shall not be unreasonably withheld, and
Lessor shall have the right to locate the position of any article of weight in
said Premises if Lessor so desires.

 

11.           SIGN RESTRICTION,
No sign, picture, advertisement or notice shall be displayed, inscribed, painted
or affixed to any of the glass or woodwork of the building without the prior
approval of Lessor.  Notwithstanding the
foregoing, Lessor shall provide building standard signage identifying Lessee on
the building lobby reader-board, and standard building signage identifying
Lessee in the elevator lobby on the 5th floor of the building.  Lessee shall have the right to install and
maintain a sign with its logo that is visible from the 5th floor
lobby in the reception area of the Premises.

 

12.           LOCKS, No
additional locks shall be placed upon any doors of the Premises, except that
Lessee may install and maintain an electronic lock system at the entry to the
Premises that is compatible with the system at Lessee’s other locations.  Keys will be furnished to each door
lock.  At the termination of the lease,
Lessee shall surrender all keys to the Premises whether paid for or not.

 

13.           KEY, SECURITY AND
CONFIDENTIALITY, Lessor, his janitor, engineer or other agents may retain a
pass key to said Premises to enable him to examine the Premises from time to
time with reference to any emergency or to the general maintenance of said
Premises.  Notwithstanding the
foregoing, Lessor shall be entitled to have access to the Premises only when
accompanied by a representative of Lessee, and upon no less than twenty-four
(24) hours’ prior written notice specifying the purpose for the access and
identifying by name and business any persons other than Lessor who will
accompany Lessor; provided, however, that in the case of an emergency that
gives rise to imminent danger to persons or property, Lessor shall give Lessee
such notice as may be practicable under the circumstances.  Access by Lessor shall be strictly in
accordance with the security and confidentiality requirements that Lessee may
impose from time to time.  All
information learned by or disclosed to Lessor with respect to Lessee’s
business, and all information disclosed or discovered during an entry by Lessor
into the Premises, shall be kept strictly confidential by Lessor, Lessor’s
legal representatives, successor, assigns, servants and agents, and shall not
be used (except for Lessor’s confidential internal purposes) or disclosed to
others by Lessor Lessor’s legal representatives, successors, assigns, servants
or agents without the express prior written consent of Lessee, which Lessee may
grant, withhold or condition in its sole and absolute discretion.  In exercising its right of entry, Lessor
shall not unreasonably interfere with the conduct of Lessee’s business
operations on the Premises.

 

14.           TELEPHONE SERVICE,
If Lessee desires telephonic or any other electric connection, Lessor will
direct the electricians as to where and how the wires are to be introduced, and
without such directions no boring or cutting for wires in installation thereof
will be permitted.

 

15.           SERVICES,
Lessor shall maintain Premises and the public and common areas of building,
such as lobbies, stairs, corridor and restrooms, in reasonably good order and
condition except for damage occasioned by the act of Lessee.

 

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Lessor shall furnish Premises with electricity for lighting and
operation of low power usage office machines, heat, normal office
air-conditioning, and elevator services, during the ordinary business hours of
the building, which shall not be less than from 7 a.m. until 6 p.m.,
Mondays through Fridays, and 8 a.m. until 2 p.m. on Saturdays.  After-hours service shall be available to
Lessee on mutually agreeable terms. 
Air-conditioning units and electricity therefore for special
air-conditioning requirements, such as for computer centers, shall be at
Lessee’s expense.  Lessor shall also
provide lighting replacement for Lessor furnished lighting, toilet room
supplies, window washing with reasonable frequency, and customary janitor
service according to the schedule attached as EXHIBIT C.  Lessor shall maintain the building and all
public and common areas to the standard of a first-class office building.

 

Lessor shall not be liable to Lessee for any loss or damage caused by or
resulting from any variation, interruption or any failure of said services due
to any cause whatsoever other than Lessor’s gross negligence.  No temporary interruption or failure of such
services incident to the making of repairs, alterations, or improvements, or
due to accident or strike or conditions or events not under Lessor’s control
shall be deemed as an eviction of Lessee or relieve Lessee from any of Lessee’s
obligations hereunder except that if any interruption of utilities or services
or any other cause renders the Premises untenantable for their intended
purposes for more than three (3) consecutive business days, then Lessee’s
obligation to pay rent shall abate from the end of that three-day period for
the remaining time that the Premises are untenantable.

 

In the event of any lack of attention on the part of Lessor and any
dissatisfaction with the service of the building, or any unreasonable annoyance
of any kind, Lessee is requested to make complaints at Lessor’s building office
and not to Lessor’s employees or agents seen within the building.  Lessee is further requested to remember that
Lessor is as anxious as Lessee that a high grade service be maintained, and
that the Premises be kept in a state to enable Lessee to transact business with
the greatest possible ease and comfort. 
The rules and regulations are not made to unnecessarily restrict Lessee,
but to enable Lessor to operate the building to the best advantage of both parties
hereto.  To this end Lessor shall have
the right to waive from time to time such part or parts of these rules and
regulations as in his judgment may not be necessary for the proper maintenance
or operation of the building or consistent with good service, and may from time
to time make such further reasonable rules and regulations as in his judgment
may be needed for the safety, care and cleanliness of the Premises and the
building and for the preservation of order therein.

 

16.           SOLICITORS,
Lessor will make an effort to keep solicitors out of the building, and Lessee
will not oppose Lessor in his attempt to accomplish this end.

 

17.           FLOOR PLAN,
The floor plan and specifications for Lessee’s occupancy shall be attached
hereto and marked Exhibit “A” which shall be approved by both Lessor and Lessee,
both of whose approval shall not be unreasonably withheld.

 

18.           ASSIGNMENT,
Lessee will not assign this lease, or any interest hereunder, without the prior
written consent of Lessor, and this lease, or any interest 

 

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hereunder, shall not be assigned by operation of law.  Lessee will not sublet said Premises or any
part thereof and will not permit the use of said Premises by others other than
Lessee and the agents of Lessee without first obtaining the written consent of
Lessor, whose consent shall not be unreasonably withheld.  In the event such written consent shall be
given, no other or subsequent assignment or subletting shall be made without
the previous written consent of Lessor, whose consent shall not be unreasonably
withheld.  Notwithstanding the
foregoing, Lessee may assign this lease, in whole or in part, and may sublease
all or any part of the Premises, to (a) a parent or subsidiary of Lessee,
the entity with which or into which Lessee may merge, or an entity that is
controlled by, controls or is under common control with, Lessee, (b) the
purchaser of substantially all of the assets of Lessee.

 

During the term of any sublease Lessor shall not have the right to
recapture the subleased space and Lessee shall be entitled to retain 100% of
any rent in excess of the rent Lessee is paying under this lease.

 

In the event that Lessee desires to terminate its obligations under this
lease with respect to all or any portion of the Premises (other than in the
manner described in Article 41 below) and Lessor and Lessee agree upon a
new tenant to take possession of that portion of the Premises, and if Lessor
and Lessee agree to terminate this lease for that portion of the Premises, then
any rent that is in excess of the rent payable by Lessee herein with respect to
that portion of the Premises shall be shared equally between Lessor and
Lessee.  Any costs incurred in securing
such a substitute tenant shall be shared between Lessor and Lessee on a
proportionate basis based on the length of the term of the lease with such new
tenant.  As an example, if Lessee has
twenty-four (24) months remaining on this lease and the lease with the new
tenant is for sixty (60) months, the transaction costs, including commissions,
tenant improvements, etc., shall be distributed 40% (2/5) to Lessee and 60%
(3/5) to Lessor.

 

19.           OPERATING SERVICES
AND REAL ESTATE TAXES, The annual base rental rate per rentable square foot
in Paragraph 3 includes Lessee’s proportionate share of Operating Services and
Real Estate Taxes for the Base Year (as that term is defined below) (“Base Year
Costs”).  Only actual increases from
these Base Year Costs, if any, will be passed on to Lessee on a proportionate
basis.

 

DEFINITIONS

 

Base Year

 

The Base Year shall be the calendar year 2003.

 

Comparison Year

 

The Comparison Year(s) shall be the calendar year(s) subsequent to the
Base Year.

 

Operating Services

 

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“Operating
Services” include, but are not limited to, the charges incurred by Lessor
for:  building operation salaries,
benefits, management fee (not to exceed 5%) of gross income for the building,
insurance, electricity, janitorial, supplies, telephone, HVAC, repair and
maintenance, window washing, water and sewer, security, landscaping, disposal,
elevator, and any other service or supplies reasonably necessary to the
maintenance and operation of the premises.  
Operating Services shall also include the amortization cost of capital
investment items and of the installation thereof, which are primarily for the
purpose of safety, saving energy or reducing operating costs, or which may be
required by governmental authority, (all such costs shall be amortized over the
reasonable life of the capital investment item, with the reasonable life and
amortization schedule being determined in accordance with generally accepted
accounting principles).  Notwithstanding
anything to the contrary contained herein, Operating Services shall not include
any of the following:

 

(i)            real estate taxes

 

(ii)           legal fees, auditing
fees, brokerage commissions, advertising costs, or other related expenses
incurred by Lessor in an effort to generate rental income;

 

(iii)          repairs,
alterations, additions, improvements, or replacements made to rectify or
correct any defect in the original design, materials or workmanship of the
building or common areas (but not including repairs, alterations, additions,
improvements or replacements made as a result of ordinary wear and tear);

 

(iv)          damage and repairs
attributable to fire or other casualty;

 

(v)           damage and repairs
necessitated by the negligence or willful misconduct of Lessor, Lessor’s
employees, contractors or agents;

 

(vi)          executive salaries to
the extent that such services are not in connection with the management,
operation, repair or maintenance of the building;

 

(vii)         Lessor’s general
overhead expenses not related to the building;

 

(viii)        legal fees,
accountant’s fees and other expenses incurred in connection with disputes with
tenants or other occupants of the building or associated with the enforcement
of the terms of any leases with tenants or the defense of Lessor’s title to or
interest in the building or any part thereof unless the outcome is to the
financial benefit of all tenants;

 

(ix)           costs (including
permit, license and inspection fees) incurred in renovating or otherwise
improving, decorating, painting or altering (1) vacant space (excluding common
areas) in the building or (2) space for tenants or other occupants in the
building and costs incurred in supplying any item or service to less than all
of the tenants in the building;

 

(x)            costs incurred due
to a violation by Lessor or any other tenant of the building of the terms and
conditions of a lease;

 

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(xi)           cost of any specific
service provided to Lessee or other occupants of the building for which Lessor
is reimbursed (but not including Operating Services and Real Estate Tax
increases above Base Year Costs to the extent reimbursed to Lessor) or any
other expense for which Lessor is or will be reimbursed by another source
(i.e., expenses covered by insurance or warranties);

 

(xii)          costs and expenses
which would be capitalized under generally accepted accounting principles, with
the exception of the capital investment items specified hereinabove;

 

(xiii)         building management
fees in excess of the management fees specified hereinabove;

 

(xiv)        cost incurred with
owning and/or operating the parking lot(s) serving the building by independent
parking operator(s).

 

(xv)         fees paid to Lessor or
any affiliate of Lessor for goods or services in excess of the fees that would
typically be charged by unrelated, independent persons or entities for similar
goods and services;

 

(xvi)        rent called for under
any ground lease or master lease;

 

(xvii)       principal and/or
interest payments called for under any debt secured by a mortgage or deed of
trust on the building; and

 

Operating Services shall be adjusted for the Base Year and all
Comparison Year(s) to reflect the greater of actual occupancy or 95% occupancy.

 

Real Estate Taxes

 

Real Estate Taxes shall be the taxes paid by Lessor in the Base Year and
each respective Comparison Year.  Real
Estate Taxes shall be a separate category and shall be treated as such.

 

Proportionate Basis

 

Lessee’s share of Base Year and Comparison Year(s) Costs shall be a
fraction, the numerator of which shall be the number of rentable square feet
contained in the leased Premises (see Paragraph 1) and the denominator of which
shall be the number of rentable square feet in the building in which the leased
Premises are located (220,845/RSF).

 

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Computation of Adjustments to Base Year Costs

 

Any adjustment to Base Year Costs will commence to occur on
January 1, 2004, with subsequent adjustments commencing every twelve
months of the lease term thereafter. 
Lessee shall be responsible for Lessee‘s proportionate share of any
increase in a Comparison Year’s Costs over the Base Year Costs.  These costs shall be initially calculated
based on estimated (projected) costs with reconciliation to actual costs when
annual audited numbers are completed. 
For the purpose of calculating projected increases to Base Year Costs,
Lessor shall review historical data to predict if any estimated increases would
be anticipated in a Comparison Year(s). 
If they are, then commencing January 1, 2004, Lessor will assess a
monthly charge to be paid together with monthly base rent.  Once actual cost data for Comparison Year(s)
Real Estate Taxes and Operating Services for the entire building is formulated
in accordance with generally accepted accounting principles and adjusted to the
greater of actual occupancy or 95% occupancy, then Lessee’s estimated
pass-through costs shall be corrected with Lessee or Lessor, as appropriate,
reimbursing the other for the difference between the estimated and actual
costs, at that time in a lump sum payment.

 

Lessor shall provide to Lessee a reconciliation of actual costs of
Operating Services and Real Estate Taxes for each Comparison Year no later than
May 15 of the following calendar year. 
Within one hundred twenty (120) days after receipt of Lessor’s
reconciliation statement, Lessee shall have the right during business hours,
and upon three (3) business days’ prior written notice, to examine Lessor’s
books and records with respect to Operating Services and Real Estate Taxes for
the Comparison Year in question at Landlord’s offices at the address first set
forth above.  If Lessee’s audit of the
Operating Services and Real Estate Taxes reveals an overcharge of more than
three percent (3%) in the aggregate, Lessor shall promptly reimburse Lessee for
the ordinary and reasonable costs of the audit including, but not limited to,
Lessee staff billed at the hourly payroll cost of those employees (including
benefits) plus reasonable travel costs. 
If Lessee’s audit does not reveal an overcharge of more than three
percent (3%) in the aggregate, then Lessee shall bear all costs of its
audit.  Any overcharge or underpayment
of costs of Operating Services and Real Estate Taxes discovered as a result of
Lessee’s audit shall be due from one party to the other within thirty (30) days
after the amount of the overcharge or underpayment has been fixed.

 

Notwithstanding anything herein to the contrary, the costs of Operating
Services and Real Estate Taxes for any Comparison Year shall be final and not
subject to further review by either Lessor or Lessee on that date which is 180
days after receipt by Lessee of any statement of reconciliation of actual costs
for the Comparison Year in question, or upon conclusion of any audit conducted
by Lessee for that Comparison Year pursuant to the foregoing paragraph,
whichever occurs later.

 

Upon termination of this lease, the amount of any corrected amount
between estimated and actual costs with respect to the final Comparison Year
shall survive the termination of the lease and shall be paid to Lessee or
Lessor as appropriate within thirty (30) days after final reconciliation.

 

Computation of or adjustment to Operating Services and/or Real Estate
Taxes pursuant to this paragraph or to rent pursuant to Paragraph 3 shall be
computed based on a three hundred sixty-five (365) day year.

 

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For an example, see Exhibit B attached hereto.

 

20.           ADDITIONAL TAXES
OR ASSESSMENTS,  Should there
presently be in effect or should there be enacted during the term of this
lease, any law, statute or ordinance levying any assessments or any tax upon
the rent paid under this lease other than federal or state income, estate or
gift taxes, Lessee shall reimburse Lessor for Lessee’s proportionate share of
said expenses at the same time as rental payments.

 

21.           LATE PAYMENTS,  Any payment, required to be made pursuant to
this lease, not made on the date the same is due shall bear interest at a rate
equal to three percent (3%) above the prime rate of interest charged from time
to time by Bank of America, or its successor; provided, however, that the first
time in any calendar year that rent is paid late, interest shall not accrue
until three days after receipt by Lessee of written notice from Lessor that
rent is overdue.

 

In addition to any interest charged herein, a late charge of five
percent (5%) of the payment amount shall be incurred for payments received more
than five (5) days late; provided, however, that no late charge will be imposed
unless Lessee fails to pay overdue amounts within five (5) days of receipt of
notice from Lessor, except that Lessor shall not be required to give notice
more than twice in any calendar year and once Lessor has given two notices in
any calendar year, no further notices shall be required in that calendar year
before imposition of the late charge.

 

22.           RISK,  All personal property of any kind or
description whatsoever in the demised Premises shall be at Lessee’s sole
risk.  Lessor shall not be liable for
any damage done to or loss of such personal property or damage or loss suffered
by the business or occupation of the Lessee arising from any acts or neglect of
co-tenants or other occupants of the building, or of Lessor or the employees of
Lessor, or of any other persons, or from bursting, overflowing or leaking of
water, sewer or steam pipes, or from the heating or plumbing or sprinklering
fixtures, or from electric wires, or from gas, or odors, or caused in any other
manner whatsoever except in the case of negligence on the part of Lessor, its
employees, contractors or agents.  Lessee
shall keep in force throughout the term of this lease such casualty, general
liability and business interruption insurance as a prudent tenant occupying and
using the Premises would keep in force.

 

23.           INDEMNIFICATION,  Lessee will defend, indemnify and hold
harmless Lessor from any claim, liability or suit including reasonable
attorney’s fees on behalf of any person, persons, corporations and/or firm for
any injuries or damages occurring in or about the said Premises or on or about
the sidewalk, stairs, or thoroughfares adjacent thereto to the extent said
damages or injury was caused by the ordinary or gross negligence or intentional
act of Lessee and/or of Lessee’s agents, employees, or contractors.

 

24.           WAIVER OF
SUBROGATION,  Lessee and Lessor do
hereby release and relieve the other, and waive their entire claim of recovery
for loss, damage, injury, and all liability of every kind and nature, whether
by subrogation or otherwise, which may arise out of, or be incident to, fire
and extended coverage perils, in, on, or about the Premises herein described,
whether due to negligence of either of said parties, their agents, or
employees, or otherwise.

 

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25.           SUBORDINATION,  This lease and all interest and estate of
Lessee hereunder is subject to and is hereby subordinated to all present and
future mortgages and deeds of trust affecting the Premises or the property of
which said Premises are a part; provided, however, that the foregoing
subordination agreement is expressly subject to the condition that as long as
Lessee performs its obligations under this lease, no foreclosure of, deed given
in lieu of foreclosure of, or sale under any mortgage or deed of trust, and no
steps or procedures taken under any mortgage or deed of trust, shall disturb Lessee’s
peaceful possession of the Premises or otherwise affect Lessee’s rights under
this Lease.

 

Lessee agrees to execute at no expense to the Lessor, a commercially
reasonable subordination, nondisturbance and attornment agreement in order to
further effect the subordination of this lease to any such mortgage or deed of
trust on the terms described above.  In
the event of a sale or assignment of Lessor’s interest in the Premises, or in
the event of any proceedings brought for the foreclosure of, or in the event of
exercise of the power of sale under any mortgage or deed of trust made by
Lessor covering the Premises, Lessee shall attorn to the purchaser and
recognize such purchaser as Lessor; provided, however, that unless the
purchaser assumes and agrees to perform Lessor’s obligations under this lease
Lessee does not release Lessor from any liability under this Lease.  Lessor and Lessee each agree to execute, at
no expense to the other, any estoppel certificate in commercially reasonable
form describing accurately the status of this lease.

 

26.           CASUALTY,  In the event the leased Premises, or any
portion of the building that is reasonably necessary for the use and occupancy
of the Premises, are destroyed or injured by fire, earthquake or other casualty
to the extent that they are untenantable in whole or in part, and if the
Premises or building can reasonably be repaired and restored within 270 days of
the date of the casualty, then Lessor shall proceed with reasonable diligence
to rebuild and restore the said Premises or such part thereof as may be injured
as aforesaid, provided that during the period of such rebuilding and
restoration the rent shall be abated on the portion of the Premises that cannot
be occupied for its intended use. 
During any period of abatement of rent due to casualty or destruction of
the Premises, Lessor shall use its best efforts to locate comparable space for
Lessee at the fair market rate not to exceed Lessee’s rental rate
hereunder.  Lessor shall not be liable
for any consequential damages by reason of inability, after use of its best
efforts, to locate alternative space comparable to the premises leased
hereunder.

 

If fire or other casualty renders the whole or any material part of the
Premises untenantable, or if the building is damaged so that access and
necessary services cannot be provided to the Premises, and if the Premises or
building cannot reasonably be repaired and restored within 270 days of the date
of the casualty based upon a commercially reasonable standard, then this lease
shall terminate effective upon the date of the casualty.

 

27.           INSOLVENCY, If
Lessee becomes insolvent, or makes an assignment for the benefit of creditors,
or a receiver is appointed for the business or property of Lessee, or a
petition is filed in a court of competent jurisdiction to have Lessee adjudged 

 

11

 

bankrupt, then Lessor may at Lessor’s option terminate this lease.  Said termination shall reserve unto Lessor
all of the rights and remedies available under Paragraph 28 (“Default”) hereof,
and Lessor may accept rents from such assignee or receiver without waiving or
forfeiting said right of termination. 
As an alternative to exercising his right to terminate this lease,
Lessor may require Lessee to provide adequate assurances, including the posting
of a cash bond, of Lessee’s ability to perform its obligations under this
lease.

 

28.           DEFAULT, It
shall be a default by Lessee under this lease if Lessee fails to make any
payment of rent as and when due and such failure continues for more than five
days after Lessor notifies Lessee in writing, or if Lessee fails to perform any
of Lessee’s nonmonetary obligations under this lease and the failure continues
for a period of 30 days after Lessor notifies Lessee in writing specifying the
nature of the default (except if the failure cannot reasonably be cured within
30 days, then if Lessee fails to commence to cure the failure within that
30-day period and thereafter diligently prosecute the cure to completion), or
if Lessee vacates or abandons the Premises and fails to pay rent..  In any of such events Lessor may with or
without notice or demand, at Lessor’s option, and without being deemed guilty
of trespass and/or without prejudicing any remedy or remedies which might
otherwise be used by Lessor for arrearages or preceding breach of covenant or
condition of this lease, enter into and repossess said Premises and expel the
Lessee and all those claiming under Lessee in accordance with applicable law.  In such event Lessor may eject and remove
from said Premises all goods and effects (forcibly if necessary).  This lease if not otherwise terminated may
immediately be declared by Lessor as terminated.  The termination of this lease pursuant to this Article shall not relieve
Lessee of its obligations to make the payments required herein.  In the event this lease is terminated
pursuant to this Article, or if Lessor enters the Premises without terminating
this lease and Lessor relets all or a portion of the Premises, Lessee shall be
liable to Lessor for all the costs of reletting, including necessary renovation
and alteration of the leased Premises. 
Lessee shall remain liable for all unpaid rental which has been earned
plus late payment charges pursuant to Paragraph 21 and for the remainder of the
term of this lease for any deficiency between the net amounts received
following reletting and the gross amounts due from Lessee, or if Lessor elects,
Lessee shall be immediately liable for all rent and additional rent (Paragraph
19) that would be owing to the end of the term, less any rental loss Lessee
proves could be reasonably avoided, which amount shall be discounted by the
discount rate of the Federal Reserve Bank, situated nearest to the Premises,
plus one percent (1%).  Waiver by the
Lessor of any default, monetary or non-monetary, under this lease shall not be
deemed a waiver of any future default under the Lease.  Acceptance of rent by Lessor after a default
shall not be deemed a waiver of any defaults (except the default pertaining to
the particular payment accepted) and shall not act as a waiver of the right of
Lessor to terminate this lease as a result of such defaults by an unlawful
detainer action or otherwise.

 

29.           BINDING EFFECT,
The parties hereto further agree with each other that each of the provisions of
this lease shall extend to and shall, as the case may require, bind and inure
to the benefit, not only of Lessor and Lessee, but also of their respective
heirs, legal representatives, successors and assigns, subject, however, to the
provisions of Paragraph 18 of this lease.

 

12

 

It is also understood and agreed that the terms “Lessor” and “Lessee”
and verbs and pronouns in the singular number are uniformly used throughout
this lease regardless of gender, number or fact of incorporation of the parties
hereto.  The typewritten riders or
supplemental provisions, if any, attached or added hereto are made a part of
this lease by reference.  It is further
mutually agreed that no waiver by Lessor of a breach by Lessee of any covenant
or condition of this lease shall be construed to be a waiver of any subsequent
breach of the same or any other covenant or condition.

 

30.           HOLDING OVER,
If Lessee holds possession of the Premises after term of this lease, Lessee
shall be deemed to be a month-to-month tenant upon the same terms and
conditions as contained herein, except rent which shall be revised to reflect
the then current market rate.  During
month-to-month tenancy, Lessee acknowledges Lessor will be attempting to relet
the Premises.  Lessee agrees to
cooperate with Lessor and Lessee further acknowledges Lessor’s statutory right
to terminate the lease with proper notice.

 

31.           ATTORNEY’S FEES,
If any legal action is commenced to enforce any provision of this lease, the
prevailing party shall be entitled to an award of reasonable attorney’s fees
and disbursements.

 

32.           NO REPRESENTATIONS,
The Lessor has made no representations or promises except as contained herein
or in some future writings signed by Lessor.

 

33.           QUIET ENJOYMENT,
So long as Lessee pays the rent and performs the covenants contained in this
lease, Lessee shall hold and enjoy the Premises peaceably and quietly, subject
to the provisions of this lease.

 

34.           RECORDATION,
Lessee shall not record this lease without the prior written consent of
Lessor.  However, at the request of
Lessor, both parties shall execute a memorandum or “short form” of this lease
for the purpose of recordation in a form customarily used for such purpose.  Said memorandum or short form of this lease
shall describe the parties, the Premises and the lease term, and shall
incorporate this lease by reference.

 

35.           MUTUAL PREPARATION
OF LEASE, It is acknowledged and agreed that this lease was prepared mutually
by both parties.  In the event of
ambiguity, it is agreed by both parties that it shall not be construed against
either party as the drafter of this lease.

 

36.           GOVERNING LAW,
This lease shall be governed by, construed and enforced in accordance with the
laws of the State of Washington.

 

37.           DESIGN SERVICES,
Lessor shall be responsible for up to $1.50 per rentable square foot for space
planning, design, documentation and construction documents in connection with
all work to be done in the Premises in order to prepare the Premises for
Lessee’s effective occupancy.

 

13

 

38.           FINISH WORK,
Lessor shall construct, on a turn-key basis and at Lessor’s sole cost and
expense, all improvements to the Premises that are shown on the space plan
dated February 11, 2002, and scope of work prepared by Collinswoermen and dated
February 14, 2002 and attached to this lease as EXHIBIT A.  The improvements will include but not be
limited to the following:  all
partitioning, completely carpeted and air conditioned, ceiling in place,
lighting in place, all doors and jambs, all locks and hardware, kitchen sink,
counter and cabinets, all electrical wiring and outlets, all phone outlets,
Levolor blinds on all outside glass, and completely painted throughout.  Once working drawings are completed and
approved by both parties, they shall supersede EXHIBIT A.

 

Notwithstanding the above, Lessor shall not be responsible for the
payment, including installation costs, of any of Lessee’s built-in furniture,
fixtures, signage or other “custom-made” improvements.  Lessor shall not be responsible for the
installation of telephone and computer equipment nor the wiring of the same.

 

The Tenant Improvements shall be deemed to be complete when all construction
and installation is substantially completed (as that term is used in the
industry) but for minor and immaterial items of construction or decoration that
do not interfere in any material respect with Lessee’s use or occupancy of the
Premises.  Promptly after Lessor’s
notice to Lessee that the Tenant Improvements are substantially complete,
Lessor and Lessee shall inspect the Premises and prepare a list of punchlist
items.  Lessor shall promptly and diligently
complete all punchlist items, but the existence of punchlist items will not
delay commencement of the lease term.

 

Lessor will allow Lessee to have timely access to the Premises during
the construction period for the sole purpose of installing Lessee’s furniture,
cabling, fixtures and equipment; provided however that Lessee shall coordinate
with Lessor’s contractor concerning the timing of access, and provided further
that without consent of Lessor’s contractor, furniture shall not be moved in
earlier than May 20, 2002.

 

39.           PARKING,
Lessee shall be provided parking for seven (7) cars inside the building garage
and twenty (20) cars outside the building, all at market rate and paid for by
Lessee.  The current rates of parking
stalls are $120 per stall for building garage and $110 per stall for surface
parking stalls.  Lessee shall also be
provided parking for three (3) additional cars inside the building garage on a
month-to-month basis until needed by Lessor. 
Lessor shall provide Lessee no less than thirty (30) days’ notice of any
termination of Lessee’s right to any of the three additional garage parking
stalls.

 

40.           REAL ESTATE
COMMISSION, Lessor agrees to pay a real estate commission equivalent to
$5.00 per rentable square foot leased to Washington Partners, Inc. for services
in this lease transaction, payable one-half (1/2) upon full execution of this
lease and one-half (1/2) upon lease commencement.  Lessee shall offset from the consideration due Lessor under
Section 4 of this lease the first one-half (1/2) commission due to Washington
Partners, Inc. and pay such amount directly to Washington Partners, Inc.  Payment to Washington Partners, Inc. shall
constitute payment to Lessor.  Should
the balance of the commission not be paid by Lessor when due, then the
remaining amount shall be paid directly by Lessee to Washington Partners, Inc.
from the initial rents due to Lessor and the amount so paid given to Lessee as
a rent credit.

 

14

 

41.           EARLY TERMINATION,
Lessee shall have the option to cancel and terminate this lease effective at
any time after the expiration of the 24th month of the lease term and before
the expiration of the 48th month of the lease term by giving Lessor
nine (9) months prior written notice, and paying to Lessor the unamortized
portion (based on an 84-month amoritzation period) of the architectural fees
and tenant improvement costs paid by Lessor for design and construction of the
Tenant Improvements, and of the real estate commission paid pursuant to
Article 40 above.  Promptly after
completion of the Tenant Improvements, Lessor shall provide to Lessee a written
statement in reasonable detail showing all costs of the design and construction
of the Tenant Improvements and of the real estate commission, together with
copies of supporting documents.

 

42.           RIGHT OF FIRST
REFUSAL, Subject only to prior rights granted Holland America/Westours,
Lessee shall have a first right of refusal to lease any adjacent space on the
5th floor of the Elliott Bay Office Park Building that becomes available for
lease.  If Lessor has an interested
party for that space, Lessor will notify Lessee in writing and Lessee shall
have ten (10) working days from receipt of said notice to respond either way.  Lessee shall take the entire area intended
for lease to a third party and shall not be entitled to lease just a portion
thereof.  Rent for this space shall be
at market rate.

 

43.           OPTION TO RENEW,
Provided that at the time the option is exercised there is no default by Lessee
that remains uncured after such notice and opportunity to cure as may be
provided by the terms of this lease, Lessee shall have the option to renew this
lease for an additional period of five (5) years on the same terms and
conditions except the rent.  Base rent
for the renewal term shall be at market rate for renewal of a lease of
comparable office space in Seattle (exclusive, however, of any improvements
paid for by Lessee.  The term “market
rate” mean the prevailing market rental rate on a level basis for renewal of a
lease for a tenant occupying an amount of space comparable to the amount then
leased by Lessee, taking into consideration any concessions (e.g., rent
abatement, refurbishment, carpeting and other allowances) then being offered by
landlords to renewing tenants for comparable space, and excluding the value of
improvements made and paid for by Lessee. 
Lessee agrees to give Lessor notice of its intent to renew nine (9)
months prior to the expiration of the initial lease term.

 

Any dispute concerning base rent for the renewal term shall be resolved
by arbitration in the following manner. 
If the parties are not able to agree on the market rate within 90 days
after Lessee gives Lessor its notice of intent to renew (“Notice Date”), then
each party shall appoint a disinterested, independent appraiser who is a member
of the American Institute of Real Estate Appraisers (an “Appraiser”) and has at
least ten years experience appraising rental properties in the Seattle
area.  If the Appraisers are unable to
reach agreement about market rent within one hundred twenty (120) days after
the Notice Date, then the two Appraisers shall together appoint a third
Appraiser having the same qualifications and the third Appraiser shall be the
arbitrator.  Once the arbitrator is
appointed, each Appraiser promptly shall submit to the arbitrator within seven
days a written statement of his or her determination of market rate, supported
by the reasons for that determination, with counterpart copies given to each
party.  The role of the arbitrator will
be to select which of the two proposed determinations of market rate mostly
closely 

 

15

 

approximates his or her own determination on the matter.  The arbitrator will have no right to propose
a middle ground or any modification of either of the two determinations.  The arbitrator will determine the matter
within 10 days after his or her receipt of the written statement of each of the
two Appraisers.  The determination of
the arbitrator will be final and binding on all parties, and the market rate so
determined shall be the base rent for the renewal term.

 

Each party shall bear the expense of retaining its Appraiser.  The fees and expenses of the arbitrator and
other expenses of the arbitration shall be borne equally by the parties.  The arbitrator’s determination of market
rate shall be final and binding on the parties.  Judgment upon the determination of market rate rendered by the
arbitrator may be entered in any court having jurisdiction.

 

44.           EXHIBITS.  The following exhibits are attached to this
lease and are by this reference made a part of it as though fully set forth
above:

 

	
  EXHIBIT A

  	
   

  	
  Tenant Improvement Plans

  
	
  EXHIBIT B

  	
   

  	
  Example of Computation of
  Operative Services Rent

  
	
  EXHIBIT C

  	
   

  	
  Schedule of Janitorial Service

  
	
   

  	
   

  	
   

  

IN WITNESS WHEREOF, the parties hereof have executed this lease the day
and year first above written.

 

	
  SELIG REAL ESTATE HOLDINGS SIX,

   a
  Washington general partnership 
  

  	
   

  	
   

  	
  NEORX CORPORATION, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Martin Selig

  	
   

  	
  By:

  	
   

  
	
  Its:

  	
  General Partner

  	
   

  	
  Its:

  	
   

  
	
  “Lessor”

  	
   

  	
   

  	
  “Lessee”

  
								

 

[Ellen, these acknowledgements are new, were not part of this draft.
—ch]

 

	
  STATE OF WASHINGTON

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF KING

  	
  )

  

 

On this ______ day of _________________, 2002, before me, the
undersigned, a Notary Public in and for the State of Washington, duly
commissioned and sworn, personally appeared _____________________________, to
me known to be the person who signed as ________________________ of SELIG REAL
ESTATE HOLDINGS SIX, the partnership that executed the within and foregoing
instrument, and acknowledged said instrument to be the free and voluntary act
and deed of said partnership for the uses and purposes therein mentioned, and
on oath stated that ______ was authorized to execute said instrument on behalf
of the partnership.

 

16

 

IN WITNESS WHEREOF I have hereunto set my hand and official seal the day
and year first above written.

 

	
   

  	
   

  
	
   

  	
  (Signature of Notary)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Print or stamp name of Notary)

  
	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC in and for the State of
  Washington, resident at

  	
   

  
	
   

  	
  My appointment expires:

  	
   

  

 

17

 

	
  STATE OF WASHINGTON

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF KING

  	
  )

  

 

On this ______ day of _________________, 2002, before me, the
undersigned, a Notary Public in and for the State of Washington, duly
commissioned and sworn, personally appeared _____________________________, to
me known to be the person who signed as ________________________ of NEORX
CORPORATION, INC., the corporation that executed the within and foregoing
instrument, and acknowledged said instrument to be the free and voluntary act
and deed of said corporation for the uses and purposes therein mentioned, and
on oath stated that ______ was duly elected, qualified and acting as said officer
of the corporation, that _____ was authorized to execute said instrument and
that the seal affixed, if any, is the corporate seal of said corporation.

 

IN WITNESS WHEREOF I have hereunto set my hand and official seal the day
and year first above written.

 

	
   

  	
   

  
	
   

  	
  (Signature of Notary)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Print or stamp name of Notary)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NOTARY PUBLIC in and for the State of
  Washington, resident at

  	
   

  
	
   

  	
  My appointment expires:

  	
   

  

 

NEORX1030.01

 

Attachment

 

18

 

EXHIBIT
B

 

EXAMPLE

 

The intent is to include Lessee’s proportionate share of all Base Year
Costs in Lessee’s Annual Base Rental Rate. 
It is further the intent to limit adjustments to Lessee’s Base Year
Costs to actual increases in cost.  The
Operating Services are adjusted to the greater of actual occupancy or 95%
occupancy for the base year to fairly establish the Base Year Costs at an
equitable standard for comparison purposes. 
Comparison Years are similarly adjusted for purposes of fairness and
equality.  To prevent any confusion
regarding computation of Base Year Costs, Comparison Year Costs and the
adjustment of those costs to 95% occupancy, if necessary, we have set forth the
following example.  It is important to note
that if adjustment to 95% occupancy is necessary, not all Operating Services
are adjusted.

 

Expenses requiring adjustment are those which are 100% dependent upon
the change in footage and adjust with the change in occupied footage.  This category includes electricity,
water/sewer, superintendent, disposal, management, janitorial supplies, window
washing, repair and maintenance, HVAC maintenance, and janitorial labor.

 

Other expenses do not require adjustment nor are they dependent upon
occupied footage change.  These
categories are the same whether the building is empty or full.  They are, insurance, security, elevator,
landscaping and telephone.

 

Real Estate Taxes are dependent upon independent assessment.  Real Estate Taxes are not adjusted to 95%,
but are established for each respective year based on the actual tax paid
whether for the respective Base Year or each subsequent Comparison Year(s).

 

Please note the expenses noted below which are and are not adjusted and
the adjustment to each expense to achieve 95% occupancy, if necessary.  The method of adjusting expenses depicted in
the example will be followed when adjusting actual Operating Service Expenses
for both the Base Year and Comparison Year(s).

 

HYPOTHETICAL
FACTS

 

	
  Building
  Occupancy:

  	
   

  	
  80

  	
  %

  
	
  Actual Base Year Costs:

  	
   

  	
  $

  	
  375,000

  	
   

  
	
  Grossed Base Year Costs to 95%:

  	
   

  	
  $

  	
  440,000

  	
   

  
	
  Actual Comparison Year Costs: (see below)

  	
   

  	
  $

  	
  405,440

  	
   

  
	
  Grossed Comparison Year Costs to 95%: (see below)

  	
   

  	
  $

  	
  463,080

  	
   

  
	
  Tenant Premises:

  	
   

  	
  10,000
  RSF

  	
   

  
	
  Building RSF:

  	
   

  	
  125,000
  RSF

  	
   

  
	
  Tenant Proportionate Basis:

  	
   

  	
  10,000
   ̧ 125,000 = 8

  	
  %

  

 

EXAMPLE

 

	
  Description

  	
   

  	
  Actual

  Expenses

  	
   

  	
  Grossed

  Expenses

  	
   

  
	
  Percent Occupied

  	
   

  	
  80.00

  	
  %

  	
  95.00

  	
  %

  	
  Methodology

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Real Estate Taxes

  	
   

  	
  $

  	
  54,854

  	
   

  	
  $

  	
  54,854

  	
   

  	
  Actual Cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating Expenses

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Insurance

  	
   

  	
  $

  	
  26,595

  	
   

  	
  $

  	
  26,595

  	
   

  	
  Actual Cost

  	
   

  
	
  Electricity

  	
   

  	
  $

  	
  69,358

  	
   

  	
  $

  	
  82,363

  	
   

  	
  Adjusts with occupancy

  	
   

  
	
  Water & Sewer

  	
   

  	
  $

  	
  4,945

  	
   

  	
  $

  	
  5,872

  	
   

  	
  Adjusts with occupancy

  	
   

  
	
  Security

  	
   

  	
  $

  	
  5,000

  	
   

  	
  $

  	
  5,000

  	
   

  	
  Actual Cost

  	
   

  
	
  Elevator

  	
   

  	
  $

  	
  7,526

  	
   

  	
  $

  	
  7,526

  	
   

  	
  Actual Cost

  	
   

  
	
  Superintendent

  	
   

  	
  $

  	
  82,869

  	
   

  	
  $

  	
  98,407

  	
   

  	
  Adjusts with occupancy

  	
   

  
	
  Landscaping

  	
   

  	
  $

  	
  2,912

  	
   

  	
  $

  	
  2,912

  	
   

  	
  Actual Cost

  	
   

  
	
  Disposal

  	
   

  	
  $

  	
  15,502

  	
   

  	
  $

  	
  18,409

  	
   

  	
  Adjusts with occupancy

  	
   

  
	
  Management

  	
   

  	
  $

  	
  41,680

  	
   

  	
  $

  	
  49,495

  	
   

  	
  Adjusts with occupancy

  	
   

  
	
  Supplies

  	
   

  	
  $

  	
  4,339

  	
   

  	
  $

  	
  5,153

  	
   

  	
  Adjusts with occupancy

  	
   

  
	
  Window Washing

  	
   

  	
  $

  	
  1,527

  	
   

  	
  $

  	
  1,813

  	
   

  	
  Adjusts with occupancy

  	
   

  
	
  Repairs & Maintenance

  	
   

  	
  $

  	
  24,333

  	
   

  	
  $

  	
  28,895

  	
   

  	
  Adjusts with occupancy

  	
   

  
	
  Telephone

  	
   

  	
  $

  	
  1,144

  	
   

  	
  $

  	
  1,144

  	
   

  	
  Actual Cost

  	
   

  
	
  HVAC Maintenance

  	
   

  	
  $

  	
  6,208

  	
   

  	
  $

  	
  7,372

  	
   

  	
  Adjusts with occupancy

  	
   

  
	
  Janitorial

  	
   

  	
  $

  	
  56,648

  	
   

  	
  $

  	
  67,270

  	
   

  	
  Adjusts with occupancy

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTALS:

  	
   

  	
  $

  	
  405,440

  	
   

  	
  $

  	
  463,080EXHIBIT
10.26

 

The Company has entered into the attached form of Key
Executive Severance Agreement with the following executive officers as of the
following dates:

 

	
  Name

  	
   

  	
  Date

  
	
  Linda T. Findlay

  	
   

  	
  10/30/2001

  
	
  Neile A. Grayson

  	
   

  	
  10/30/2001

  
	
  Richard G. Ghalie

  	
   

  	
  10/30/2001

  
	
  Melinda G. Kile

  	
   

  	
  10/30/2001

  
	
  Leslie J. Sabo

  	
   

  	
  10/30/2001

  

 

All of the agreements, except that of Ms. Grayson,
provide for severance pay equal to 50% of the executive’s then current annual
base salary.  Ms. Grayson’ s agreement
provides for severance payments equal to 75% of her current annual base salary
and nine months of other benefits if employment is terminated during the
Initial Term of her agreement.

 

NEORX CORPORATION

KEY EXECUTIVE SEVERANCE AGREEMENT (VP)

 

This Key Executive Severance Agreement (VP) (this “Agreement”), dated as of              , 20       ,
is entered into by and between NEORX CORPORATION, a Washington corporation (as
supplemented by Section 10, the “Company”),
and                (the “Executive”).

 

The Board of Directors of the Company (the “Board”) has determined that it is in the best interests
of the Company and its shareholders to ensure that the Company will have the
continued dedication of the Executive, notwithstanding the fact that the
Executive does not have any form of traditional employment contract or other
assurance of job security.  The Board
believes it is imperative to diminish any distraction of the Executive arising
from the personal uncertainty and insecurity that 

 

 

arises in the absence of any assurance of job security by providing the
Executive with reasonable compensation and benefit arrangements in the event of
termination of the Executive’s employment by the Company under certain defined
circumstances.

 

In order to accomplish these objectives, the Board has
caused the Company to enter into this Agreement.

 

1.             Term

 

The initial term of this Agreement (the “Initial Term”) shall
be for a period of one (1) year from the date of this Agreement as first
appearing; provided, however, that this Agreement shall automatically renew for
successive additional one (1) year periods (“Renewal Terms”), unless notice of nonrenewal
is given by either party to the other party at least ninety (90) days prior to
the end of the Initial Term or any Renewal Term.  The “Term”
of this Agreement shall be the Initial Term plus all Renewal Terms.  At the end of the Term, this Agreement shall
terminate without further action by either the Company or the Executive.

 

2.             Employment

 

The Executive and the Company acknowledge that, except
as may otherwise be provided under any other written agreement between the
Executive and the Company, the employment of the Executive by the Company or by
any affiliated or successor company is “at will” and may be terminated by
either the Executive or the Company or its affiliated companies at any time
with or without cause, subject to the termination payments prescribed herein.

 

3.             Attention
and Effort

 

During any period of time that the Executive remains
in the employ of the Company, and excluding any periods of vacation and sick
leave to which the Executive is entitled, the Executive will devote all his
productive time, ability, attention and effort to the business and affairs of
the Company and the discharge of the responsibilities assigned to him hereunder,
and will seek to perform faithfully and efficiently such responsibilities.  It shall not be a violation of this
Agreement for the Executive to (a) serve on corporate, civic or charitable
boards or committees, (b) deliver lectures, fulfill speaking engagements
or teach at educational institutions, (c) manage personal investments, or
(d) engage in activities permitted by the policies of the Company or as
specifically permitted by the Company, so long as such activities do not
significantly interfere with the performance of the Executive’s
responsibilities in accordance with this Agreement.  It is expressly understood and agreed that to the extent any such
activities have been conducted by the Executive 

 

2

 

prior to the Term, the continued conduct of such activities (or the
conduct of activities similar in nature and scope thereto) during the Term
shall not thereafter be deemed to interfere with the performance of the
Executive’s responsibilities to the Company.

 

4.             Termination

 

During the Term, employment of the Executive may be
terminated as follows, but, in any case, the nondisclosure provisions set forth
in Section 7 hereof shall survive the termination of this Agreement and
the termination of the Executive’s employment with the Company:

 

4.1          By the Company or the Executive

 

At any time during the Term, the Company may terminate
the employment of the Executive with or without Cause (as defined below), and
the Executive may terminate his employment for Good Reason (as defined below)
or for any reason, upon giving Notice of Termination (as defined below).

 

4.2          Automatic Termination

 

This Agreement and the Executive’s employment shall
terminate automatically upon the death or Total Disability of the Executive.  The term “Total
Disability” as used herein shall mean the Executive’s inability
(with such accommodation as may be required by law and which places no undue
burden on the Company), as determined by a physician selected by the Company
and acceptable to the Executive, to perform the Executive’s essential duties
for a period or periods aggregating twelve (12) weeks in any three hundred
sixty-five (365) day period as a result of physical or mental illness, loss of
legal capacity or any other cause beyond the Executive’s control, unless the
Executive is granted a leave of absence by the Board.

 

4.3          Notice of Termination

 

Any termination by the Company or by the Executive
during the Term shall be communicated by Notice of Termination to the other
party given in accordance with Section 9 hereof.  The term “Notice of Termination” shall
mean a written notice that (a) indicates the specific termination
provision in this Agreement relied upon and (b) to the extent applicable,
sets forth in reasonable detail the facts and circumstances claimed to provide
a basis for termination of the Executive’s employment under the provision so
indicated.  The failure by the Executive
or the Company to set forth in the Notice of Termination any fact or
circumstance that contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company hereunder

 

3

 

or preclude the Executive or the Company from asserting such fact or
circumstance in enforcing the Executive’s or the Company’s rights hereunder.

 

4.4          Date of Termination

 

“Date of Termination” means
(a) if the Executive’s employment is terminated by reason of death, the
last day of the calendar month in which the Executive’s death occurs,
(b) if the Executive’s employment is terminated by reason of Total
Disability, immediately upon a determination by the Company of the
Executive’s Total Disability, and (c) in all other cases, ten (10) days
after the date of personal delivery or mailing of the Notice of
Termination.  The Executive’s employment
and performance of services will continue during such ten (10) day period;
provided, however, that the Company may, upon notice to the Executive and
without reducing the Executive’s compensation during such period, excuse the
Executive from any or all of his duties during such period.

 

5.             Termination
Payments

 

In the event of termination of the Executive’s
employment during the Term, all compensation and benefits shall terminate,
except as specifically provided in this Section 5.

 

5.1          Termination by the Company Other Than
for Cause or by the Executive for Good Reason

 

If during the Term the Company terminates the
Executive’s employment other than for Cause or the Executive terminates his
employment for Good Reason, the Executive shall be entitled to:

 

(a)           receive
payment of the following accrued obligations (the “Accrued
Obligations”):

 

(i)            the Executive’s
then current annual base salary through the Date of Termination to the extent
not theretofore paid; and

 

(ii)           any compensation
previously deferred by the Executive (together with accrued interest or
earnings thereon, if any) and any accrued vacation pay that would be payable
under the Company’s standard policy, in each case to the extent not theretofore
paid;

 

(b)           for
six months after the Date of Termination or until the Executive qualifies for
comparable medical and dental insurance benefits from another 

 

4

 

employer, whichever occurs first, the Company shall pay the Executive’s
premiums for health insurance benefit continuation for the Executive and his
family members, if applicable, that the Company provides to the Executive under
the provisions of the federal Consolidated Omnibus Budget Reconciliation Act of
1985, as amended (“COBRA”), to the extent that
the Company would have paid such premiums had the Executive remained employed
by the Company (such continued payment is hereinafter referred to as “COBRA Continuation”); and

 

(c)           an
amount as severance pay equal to fifty percent (50%) of the Executive’s then
current annual base salary for the fiscal year in which the Date of Termination
occurs, subject to payment and potential reduction as set forth in
Section 5.5 hereof.

 

5.2          Termination for Cause or Other Than
for Good Reason

 

If during the Term the Executive’s employment shall be
terminated by the Company for Cause or by the Executive for other than Good
Reason, this Agreement shall terminate without further obligation on the part
of the Company to the Executive, other than the Company’s obligation to pay the
Executive the Accrued Obligations to the extent theretofore unpaid.

 

5.3          Expiration of Term

 

In the event the Executive’s employment is not
terminated prior to expiration of the Term, this Agreement shall terminate
without further obligation on the part of the Company to the Executive.

 

5.4          Termination Because of Death or Total
Disability

 

If the Executive’s employment is terminated during the
Term by reason of the Executive’s death or Total Disability, this Agreement
shall terminate automatically without further obligation on the part of the
Company to the Executive or his legal representatives under this Agreement,
other than the Company’s obligation to pay the Executive the Accrued
Obligations (which shall be paid to the Executive’s estate or beneficiary, as
applicable in the case of the Executive’s death) and to provide COBRA
Continuation.

 

5.5          Payment Schedule and Offset for Other
Earnings

 

All payments of Accrued Obligations, or any portion
thereof payable pursuant to this Section 5, shall be made to the Executive
within ten (10) working days of the Date of Termination.  Any severance payments payable to the
Executive pursuant to 

 

5

 

Section 5.1(c) shall be made to the Executive in the form of
salary continuation, payable at normal payroll intervals during the six month
severance period, and subject to offset for other earnings received by the
Executive as follows:

 

(a)           The
Executive shall have no affirmative duty to seek other employment or otherwise
mitigate lost earnings during the six month severance period.

 

(b)           The
Executive shall disclose to the Company any earnings received (or that the
Executive had the right to receive) from employment, consulting or performance
of other personal services during the six month severance period, and the
source(s) of such earnings.

 

(c)           The
Company, in each payroll period that a severance payment is due, shall have the
right to offset on a dollar-for-dollar basis all such earnings that the
Executive received or had the right to receive during that payroll period.

 

(d)           In
the event the Company disputes whether Good Reason existed for the Executive to
terminate his employment for Good Reason, the Company shall pay salary
continuation as provided above in this Section 5.5 until the earliest of
(i) settlement by the parties, (ii) determination by arbitration in
accordance with Section 14 hereof that Good Reason did not exist, and
(iii) completion of the payments required by this Section 5.5 and
Section 5.1(c) hereof.  If,
pursuant to Section 14 hereof, an arbitrator determines that Good Reason
did not exist, the arbitrator shall also decide whether the Executive had a reasonable,
good-faith basis for claiming that there was Good Reason to terminate.  If the arbitrator determines that there was
not such a basis, the Executive shall be obligated to repay promptly to the
Company the salary continuation payments; if the arbitrator determines that
there was such a basis, the Executive shall not be obligated to repay the
salary continuation.

 

5.6          Cause

 

For purposes of this Agreement, “Cause” means cause given by the Executive to
the Company and shall include, without limitation, the occurrence of one or
more of the following events:

 

(a)           a
clear refusal to carry out any material lawful duties of the Executive or any
directions of the Board or senior management of the Company reasonably
consistent with those duties;

 

(b)           persistent
failure to carry out any lawful duties of the Executive or any directions of
the Board or senior management reasonably consistent with those duties; 

 

6

 

provided, however, that the Executive has been given reasonable notice
and opportunity to correct any such failure;

 

(c)           violation
by the Executive of a state or federal criminal law involving the commission of
a crime against the Company or any other criminal act involving moral
turpitude;

 

(d)           current
abuse by the Executive of alcohol or controlled substances; deception, fraud,
misrepresentation or dishonesty by the Executive; or any incident materially
compromising the Executive’s reputation or ability to represent the Company
with investors, customers or the public; or

 

(e)           any
other material violation of any provision of this Agreement by the Executive,
subject to the notice and opportunity to cure requirements of Section 8
hereof.

 

5.7          Good Reason

 

For purposes of this Agreement, “Good
Reason” means:

 

(a)           reduction
of the Executive’s annual base salary to a level below the level in effect on
the date of this Agreement, regardless of any change in the Executive’s duties
or responsibilities;

 

(b)           the
assignment to the Executive of any duties materially inconsistent with the
Executive’s position, authority, duties or responsibilities or any other action
by the Company the results in a material diminution in such position,
authority, duties or responsibilities, excluding for this purpose an isolated
and inadvertent action not taken in bad faith and that is remedied by the
Company promptly after receipt of notice thereof given by the Executive;

 

(c)           the
Company’s requiring the Executive to be based at any office or location more
than twenty (20) miles from the Company’s current location in Seattle,
Washington;

 

(d)           any
failure by the Company to comply with and satisfy Section 10 hereof,
provided, however, that the Company’s successor has received at least ten (10)
days’ prior written notice from the Company or the Executive of the
requirements of Section 10 hereof; or

 

7

 

(e)           any
other material violation of any provision of this Agreement by the Company,
subject to the notice and opportunity to cure requirements of Section 8
hereof.

 

5.8          General Release of Claims

 

As a condition to the payment contemplated by Section
5.1(c), the Executive shall execute a general release of claims against the
Company in a form satisfactory to the Company in its sole discretion.  By way of example and not limitation, the
general release of claims will include any claims for wages, bonuses,
employment benefits, or damages of any kind whatsoever, arising out of any
contracts, express or implied, any covenant of good faith and fair dealing,
express or implied, any theory of wrongful discharge, any legal restriction on
the Company’s right to terminate employment, or any federal, state or other
governmental statute or ordinance, including, without limitation, Title VII of
the Civil Rights Act of 1964, the federal Age Discrimination in Employment Act,
the Americans with Disabilities Act, the Family and Medical Leave Act, the
Washington Law Against Discrimination, or any other legal limitation on the
employment relationship.

 

6.             Representations,
Warranties and Other Conditions

 

In order to induce the Company to enter into this
Agreement, the Executive represents and warrants to the Company as follows:

 

6.1          Health

 

The Executive is in good health and knows of no
physical or mental disability that, with any accommodation that may be required
by law and that places no undue burden on the Company, would prevent him from
fulfilling his obligations hereunder. 
The Executive agrees, if the Company requests, to submit to reasonable
periodic medical examinations by a physician or physicians designated, paid for
and arranged by the Company.  The
Executive agrees that the examination’s medical report shall be provided to the
Company.

 

6.2          No Violation of Other Agreements

 

The Executive represents that neither the execution
nor the performance of this Agreement by the Executive will violate or conflict
in any way with any other agreement by which the Executive may be bound.

 

8

 

7.             Nondisclosure;
Return of Materials

 

7.1          Nondisclosure

 

Except as required by his employment with the Company,
the Executive will not, at any time during the term of employment by the
Company, or at any time thereafter, directly, indirectly or otherwise, use,
communicate, disclose, disseminate, lecture upon or publish articles relating to
any confidential, proprietary or trade secret information without the prior
written consent of the Company.  The
Executive understands that the Company will be relying on this covenant in
continuing the Executive’s employment, paying him compensation, granting him
any promotions or raises, or entrusting him with any information that helps the
Company compete with others.

 

7.2          Return of Materials

 

All documents, records, notebooks, notes, memoranda,
drawings or other documents made or compiled by the Executive at any time while
employed by the Company, or in his possession, including any and all copies
thereof, shall be the property of the Company and shall be held by the
Executive in trust and solely for the benefit of the Company, and shall be
delivered to the Company by the Executive upon termination of employment or at
any other time upon request by the Company.

 

8.             Notice
and Cure of Breach

 

Whenever a breach of this Agreement by either party is
relied upon as justification for any action taken by the other party pursuant
to any provision of this Agreement, other than clause (a), (b), (c) or (d)
of Section 5.6 hereof, before such action is taken, the party asserting
the breach of this Agreement shall give the other party at least twenty (20) days’
prior written notice of the existence and the nature of such breach before
taking further action hereunder and shall give the party purportedly in breach
of this Agreement the opportunity to correct such breach during the twenty (20)
day period.

 

9.             Form
of Notice

 

Every notice required by the terms of this Agreement
shall be given in writing by serving the same upon the party to whom it was
addressed personally or by registered or certified mail, return receipt
requested, at the address set forth below or at such other address s may
hereafter be designated by notice given in compliance with the terms hereof:

 

9

 

	
  If to the Executive:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  If to the Company

  	
   

  	
  NeoRx Corporation

  
	
   

  	
   

  	
  410 West Harrison

  
	
   

  	
   

  	
  Seattle, Washington 98119

  
	
   

  	
   

  	
  Attn: 
  President

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Perkins Coie LLP

  
	
   

  	
   

  	
  1201 Third Avenue, 40th Floor

  
	
   

  	
   

  	
  Seattle, Washington 98101-3099

  
	
   

  	
   

  	
  Attn:  James
  R. Lisbakken

  

 

Except as set forth in
Section 4.4 hereof, if notice is mailed, such notice shall be effective
upon mailing.

 

10.          Assignment

 

This Agreement is personal to the Executive and shall
not be assignable by the Executive.

 

The Company shall assign to and require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all the business and/or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such
succession had taken place.  As used in
this Agreement, the “Company” shall mean NeoRx
Corporation and any affiliated company or successor to its business and/or
assets as aforesaid that assumes and agrees to perform this Agreement by
contract, operation of law or otherwise; and as long as such successor assumes
and agrees to perform this Agreement, the termination of the Executive’s
employment by one such entity and the immediate hiring and continuation of the
Executive’s employment by the succeeding entity shall not be deemed to
constitute a termination or trigger any severance obligation under this
Agreement.  All the terms and provisions
of this Agreement shall be binding upon and inure to the benefit of and be
enforceable by the parties hereto and their respective successors and permitted
assigns.

 

11.          Waivers

 

No delay or failure by any party hereto in exercising,
protecting or enforcing any of its rights, titles, interests or remedies
hereunder, and no course of dealing or performance with respect thereto, shall
constitute a waiver thereof.  The
express

 

10

 

waiver by a party hereto of any right, title, interest or remedy in a
particular instance or circumstance shall not constitute a waiver thereof in
any other instance or circumstance.  All
rights and remedies shall be cumulative and not exclusive of any other rights
or remedies.

 

12.          Amendments In Writing

 

No amendment, modification, waiver, termination or
discharge of any provision of this Agreement, or consent to any departure
therefrom by either party hereto, shall in any event be effective unless the
same shall be in writing, specifically identifying this Agreement and the
provision intended to be amended, modified, waived, terminated or discharged
and signed by the Company and the Executive, and each such amendment,
modification, waiver, termination or discharge shall be effective only in the
specific instance and for the specific purpose for which given.  No provision of this Agreement shall be
varied, contradicted or explained by any oral agreement, course of dealing or
performance or any other matter not set forth in an agreement in writing and
signed by the Company and the Executive.

 

13.          Applicable Law

 

This Agreement shall in all respects, including all
matters of construction, validity and performance, be governed by, and
construed and enforced in accordance with, the laws of the State of Washington,
without regard to any rules governing conflicts of laws.

 

14.          Arbitration; Attorneys’ Fees

 

Except in connection with enforcing Section 7
hereof, for which legal and equitable remedies may be sought in a court of law,
any dispute arising under this Agreement shall be subject to arbitration.  The arbitration proceeding shall be
conducted in accordance with the Commercial Arbitration Rules of the American
Arbitration Association (the “AAA Rules”) then
in effect, conducted by one (1) arbitrator either mutually agreed upon or
selected in accordance with the AAA Rules. 
The arbitration shall be conducted in King County, Washington, under the
jurisdiction of the Seattle office of the American Arbitration
Association.  The arbitrator shall have
authority only to interpret and apply the provisions of this Agreement, and
shall have no authority to add to, subtract from or otherwise modify the terms
of this Agreement.  Any demand for
arbitration must be made within sixty (60) days of the event(s) giving rise to
the claim that this Agreement has been breached.  The arbitrator’s decision shall be final and binding, and each
party agrees to be bound by the arbitrator’s award, subject only to an appeal
therefrom in accordance with the laws 

 

11

 

of the State of Washington. 
Either party may obtain judgment upon the arbitrator’s award in the
Superior Court of King County, Washington.

 

If it becomes necessary to pursue or defend any legal
proceeding, whether in arbitration or court, in order to resolve a dispute
arising under this Agreement, the prevailing party in any such proceeding shall
be entitled to recover its reasonable costs and attorneys’ fees.

 

15.          Severability

 

If any provision of this Agreement shall be held
invalid, illegal or unenforceable in any jurisdiction, for any reason,
including, without limitation, the duration of such provision, its geographical
scope or the extent of the activities prohibited or required by it, then, to
the full extent permitted by law, (a) all other provisions hereof shall
remain in full force and effect in such jurisdiction and shall be liberally construed
in order to carry out the intent of the parties hereto as nearly as may be
possible, (b) such invalidity, illegality or unenforceability shall not
affect the validity, legality or enforceability of any other provision hereof,
and (c) any court or arbitrator having jurisdiction thereover shall have
the power to reform such provision to the extent necessary for such provision
to be enforceable under applicable law.

 

16.          Coordination With Change of Control
Agreement

 

The Company and the Executive are contemporaneously
with this Agreement entering into a Change of Control Agreement (the “Change of Control Agreement”), which agreement provides
for certain forms of severance and benefit payments in the event of termination
of Executive’s employment under certain defined circumstances.  This Agreement is in addition to the Change
of Control Agreement, providing certain assurances to the Executive in
circumstances that the Change of Control Agreement does not cover, and in no
way supersedes or nullifies the Change of Control Agreement.  Nevertheless, it is possible that a
termination of employment by the Company or by the Executive may fall within
the scope of both agreements.  In such
event, payments made to the Executive under Section 5.1 hereof shall be coordinated
with payments made to the Executive under Section 8.1 of the Change of
Control Agreement as follows:

 

(a)           Accrued
Obligations under this Agreement need not be paid if paid under the Change of
Control Agreement;

 

(b)           COBRA
Continuation under this Agreement need not be provided if provided under the
Change of Control Agreement; and

 

12

 

(c)           the
severance payment required under Section 5.1(c) hereof need not be paid if
a severance payment is made under Section 8.1(d) of the Change of Control
Agreement.

 

17.          Excess Parachute Payments

 

Unless provided by Section 8.8 of the Change of
Control Agreement, if any portion of the payments or benefits under this
Agreement or any other agreement or benefit plan of the Company (including
stock options) would be characterized as an “excess parachute payment” to the
Executive under Section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”), the Executive shall
be paid any excise tax that the Executive owes under Section 4999 of the
Code as a result of such characterization, such excise tax to be paid to the
Executive at least ten (10) days prior to the date that he is obligated to make
the excise tax payment.  The
determination of whether and to what extent any payments or benefits would be
“excess parachute payments” and the date by which any excise tax shall be due,
shall be determined in writing by recognized tax counsel selected by the
Company and reasonably acceptable to the Executive.

 

18.          Entire Agreement

 

Except as described in Section 16 hereof, this
Agreement constitutes the entire agreement between the Company and the
Executive with respect to the subject matter hereof, and all prior or
contemporaneous oral or written communications, understandings or agreements
between the Company and the Executive with respect to such subject matter are
hereby superseded and nullified in their entireties, except that the
Proprietary Information and Invention Agreement between the Executive and the
Company shall continue in full force and effect to the extent not superseded by
Section 10 hereof.

 

19.          Withholding

 

The Company may withhold from any amounts payable
under this Agreement such federal, state or local taxes as shall be required to
be withheld pursuant to any applicable law or regulation.

 

20.          Counterparts

 

This Agreement may be executed in counterparts, each
of which counterpart shall be deemed an original, but all of which together
shall constitute one and the same instrument.

 

13

 

                IN WITNESS
WHEREOF, the parties have executed and entered into this Agreement effective on
the date first set forth above.

 

	
   

  	
  NEORX
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
									

 

14

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