Document:

<PAGE>
                                                                   EXHIBIT 10.22

                        AMENDMENT TO EMPLOYMENT AGREEMENT

      THIS AMENDMENT is made and entered into effective as of the 9th day of
March, 2004, ("Effective Date"), by and between ELCOM INTERNATIONAL, INC. (the
"Company"), and John E. Halnen ("Executive").

                                    RECITALS

      WHEREAS, Executive and the Company entered into an Employment Agreement,
dated as of June 14, 2002 (the "Employment Agreement"); and

      WHEREAS, Executive and the Compensation Committee of the Board of
Directors desire to amend the Employment Agreement to cause the Company to pay
Executive cash severance based on his Annual Compensation, when applicable under
the Employment Agreement.

      NOW, THEREFORE, in consideration of the mutual covenants set forth in this
Amendment and other good and valuable consideration, the receipt and adequacy of
which is acknowledged by this Amendment, the parties hereto agree as follows:

      1. Capitalized terms not otherwise defined in this Amendment have the
meanings assigned to them in the Employment Agreement.

      2. The Employment Agreement is hereby amended to change each reference to
"Base Salary" in Section 7 Obligations Upon Termination of the Employment
Agreement to read "Annual Compensation."

      3. Except as expressly provided in this Amendment, all of the terms and
conditions of the Employment Agreement remain in full force and effect.

      4. This Amendment may be executed in multiple counterparts, each of which
shall be deemed an original, and all of which together shall constitute one and
the same instrument.
<PAGE>
                        AMENDMENT TO EMPLOYMENT AGREEMENT

      IN WITNESS WHEREOF, the parties have executed this Amendment effective as
of the date first written above.

                                   ELCOM INTERNATIONAL, INC.
                                         "Company"

                                   By: /s/ William W. Smith
                                       --------------------------------
                                         William W. Smith
                                         Vice Chairman of the Board of Directors
                                         and Chairman of the Compensation
                                         Committee of the Board of Directors

                                         "Executive

                                   /s/ John E. Halnen
                                   ------------------------------------------
                                   John E. Halnen

                                      -2-EXHIBIT
10.43

		CONFIDENTIAL TREATMENT
 REQUESTED PURSUANT
TO RULE
 24b-2 OF THE SECURITIES
 EXCHANGE ACT OF 1934

	
		
	

Certain portions of this exhibit have
been omitted pursuant to a request for confidential treatment under
Rule 24b-2 of the Securities Exchange Act of 1934. The omitted
materials have been filed
 separately with the Securities and
Exchange Commission.

	
		
	

DR. JOHNNY
EASMON, PROF. DR. GOTTFRIED HEINISCH, DR. GERHARD PÜRSTINGER,
PROF. DR. HEINZ-HERBERT FIEBIG AND PROF. DR. JOHANN HOFMANN

AND AUSTRIA WIRTSCHAFTSSERVICE GESELLSCHAFT M.B.H

- and -

VION PHARMACEUTICALS
INC

	
				
	

	
				
	

RESEARCH
COLLABORATION AND OPTION AGREEMENT

	
				
	

	
				
	

THIS AGREEMENT is made the
24th of November, 2003

BETWEEN:

		
	(1) 	DR. JOHNNY
EASMON, PROF. DR. GOTTFRIED HEINISCH, DR. GERHARD PÜRSTINGER,
Institute of Pharmacy, University of Innsbruck, Innrain 52a, A-6020
Innsbruck, Austria , PROF. DR. HEINZ-HERBERT FIEBIG, Am
Flughafen 12, D-79108 Freiburg, Germany, PROF. DR. JOHANN HOFMANN,
Institute of Medical Chemistry and Biochemistry, University of
Innsbruck, Fritz-Pregl-Strasse 3, A-6020 Innsbruck, Austria and
AUSTRIA WIRTSCHAFTSSERVICE GESELLSCHAFT M.B.H., Ungargasse 37,
A-1030 Vienna, Austria (collectively called
"LICENSOR");
and

		
	(2) 	VION PHARMACEUTICALS
INC a Delaware company whose principal place of business is at Four
Science Park, New Haven, Connecticut 06511, United States of America
("VION").

WHEREAS:

		
	(A) 	Research on
Thiosemicarbazones (TSCs) for the treatment of cancer has been carried
out prior to the Commencement Date (as defined below) by LICENSOR;

		
	(B) 	VION has experience in the field of
drug design and drug discovery; and

		
	(C) 	Pursuant to a request made by VION, the
Parties (as defined below) have agreed to undertake a programme of
research to evaluate TSCs and it has been further agreed by LICENSOR to
grant VION an option to take a license on the following terms and
conditions.

NOW IT IS HEREBY AGREED as follows:

		
	1. 	DEFINITIONS AND INTERPRETATION

		
	1.1 	In this Agreement and in the Schedules to
this Agreement the following words and phrases shall have the following
meanings unless the context requires
otherwise:

							
	"Affiliate"		means
any company, partnership or other entity which directly or indirectly
Controls, is Controlled by, or is under common Control with, any Party
including as a subsidiary or holding company of any
Party.
	"Agreement"		means
this agreement and any and all schedules, appendices and other addenda
to it as may be varied from time to time in accordance with the
provisions of this
agreement.
	"Business
Day"		means on a day other than a Saturday,
Sunday, bank or other public holiday in Austria or the United States of
America.
	"Clinical
Candidate"		means one of the TSCs with the
characteristics described in Schedule
5.
	"Clinical Candidate
Identification"		means identification of a
Clinical Candidate in accordance with Clause
2.
	"Commencement
Date"		means the date of the completion of the
transfer of LICENSOR Existing Know How and at least 10 TSCs from
LICENSOR Existing Materials to VION. VION shall confirm the
Commencement Day by written notice.
	

2

							
	"Competent
Authority"		means any local or national agency,
authority, department, inspectorate, minister, ministry official or
public or statutory person (whether autonomous or not) of, or of any
government of, any country having jurisdiction over the Agreement or
any of the Parties or over the development or marketing of medicinal
products including, but not limited to, the European Commission and the
European Court of
Justice.
	"Control"		means
the ownership of more than 50% of the issued share capital or
the legal power to direct or cause the direction of the general
management and policies of the Party in
question.
	"LICENSOR Existing
Intellectual Property"		means LICENSOR's
right, title and interest in the LICENSOR Existing Patent Rights,
LICENSOR Existing Know How and LICENSOR Existing
Materials.
	"LICENSOR Existing Know
How"		means the Know How relating to the
subject matter of the LICENSOR Existing Patent Rights in existence
prior to the Commencement
Date.
	"LICENSOR Existing
Materials"		means those Materials relating to
the subject matter of the LICENSOR Existing Patent Rights in existence
prior to the Commencement
Date.
	"LICENSOR Existing Patent
Rights"		means the patent applications referred
to in Schedule 1 and all Patent Rights arising from
them.
	"Documents"		means
paper, notebooks, books, files, ledgers, records, tapes, discs,
diskettes, CD-ROM and any other media on which Know How can be
permanently stored.
	"Force
Majeure"		means in relation to any Party any
event or circumstances which is beyond the reasonable control of that
Party which event that Party could not reasonably be expected to have
taken into account at the Commencement Date and which results in or
causes the failure of that Party to perform any or all of its
obligations under this Agreement including act of God, lightening,
fire, storm, flood, earthquake, accumulation of snow or ice, lack of
water arising from weather or environmental problems, strike, lockout
or other industrial disturbance, war, terrorist act, blockade,
revolution, riot insurrection, civil commotion, public demonstration,
sabotage, act of vandalism, prevention from or hindrance in obtaining
in any way materials, energy or other supplies, explosion, fault or
failure of plant or machinery, governmental restraint, act of
legislature and directive or requirement of a Competent Authority
governing any Party provided that lack of funds shall not be
interpreted as a cause beyond the reasonable control of that
Party.
	

3

							
	"Know
How"		means all technical and other information
including ideas, concepts, patentable and non-patentable inventions,
discoveries, data, formulae, specifications, drawings, manuals,
information, methods and processes for synthesis of chemical compounds,
instrumentation, procedures for experiments and tests including
laboratory records and data analyses and results of experimentation and
testing.
	"Material"		means
any chemical or biological substances including any:
(i)
  organic or inorganic element or compound;
(ii)  drug
or pro-drug;
(iii) assay or
reagent.
	"Option"		means
the option granted to VION under Clause
6.
	"Parties"		means
LICENSOR and VION and "Party" shall be
construed as any one of them and any one of the persons and entities
constituting LICENSOR.
	"Patent
Rights"		means any patent applications,
patents, author certificates, inventor certificates, utility models and
all foreign counterparts of them and includes all divisions, renewals,
continuations, continuations-in-part, extensions, reissues,
substitutions, confirmations, registrations, revalidations and
additions of or to them, as well as any SPC, or any like form of
protection.
	"VION
License"		means a license in the terms of
Schedule 4.
	"Research
Programme"		means the programme or research
more particularly described in Schedule
3.
	"Research
Term"		means the term of the Research Programme
as determined in accordance with Clause
11.
	"SPC"		means
a right based on a patent pursuant to which the holder of the right is
entitled to exclude third parties from using, making, having made,
selling or otherwise disposing or offering to dispose of, importing or
keeping the product to which the right relates, such as Supplementary
Protection Certificates in Europe, and any similar right anywhere in
the world.
	

		
	1.2 	In this
Agreement:

			
		1.2.1 	unless the context
otherwise requires, all references to a particular clause or Schedule
shall be reference to that clause or to this Agreement as it may be
amended from time to time pursuant to this Agreement;

			
		1.2.2 	the headings are inserted for
convenience only and shall be ignored in construing this Agreement;

			
		1.2.3 	unless the contrary intention
appears, words importing the masculine gender shall include the
feminine and vice versa and words in the singular include the plural
and vice versa;

			
		1.2.4 	unless the
contrary intention appears, words denoting persons shall include any
individual, partnership, company, corporation, joint venture, trust
association, organisation or other entity, in each case whether or not
having separate legal personality;

			
		1.2.5 	reference to the words
"include" or
"including" are to be construed without
limitation to the generality of the preceding words; and

4

			
		1.2.6 	reference
to any statue or regulation includes any modification or re-enactment
of that statue or regulation.

		
	2. 	RESEARCH
PROGRAMME

		
	 	In consideration of the payment
to be made pursuant to Clause 3.1:

		
	2.1 	LICENSOR shall provide to VION (i) all
LICENSOR Existing Know How and (ii) reasonable quantities of TSCs from
the LICENSOR Existing Materials for Clinical Candidate
Identification.

		
	2.2 	VION shall carry
out in a diligent manner to identify Clinical Candidate according to
Schedule 3.

		
	3. 	CONSIDERATION

		
	3.1 	In consideration of the rights granted under
this Agreement by LICENSOR, VION shall: within 30 days after signing
the Agreement, pay to LICENSOR the sum of twenty five thousand United
States dollars (US$25,000).

		
	3.2 	All amounts
due to LICENSOR under this Agreement shall (subject to written advice
from LICENSOR amending the details) be payable in United States dollars
by telegraphic transfer to the account below:

		
	 	Payee:
 Austria Wirtschaftsservice
Gesellschaft m.b.H
 Ungargasse 37
 A-1030 Vienna, AUSTRIA

		
	    	Account
No:                42506710005
 Bank Sorting
Code:    43000

IBAN:                          AT254300042506710005

Bank:                            Volksbank Wien AG

Owner of Account:    Austria Wirtschaftsservice

		
	3.3 	Where LICENSOR does not receive payment due
to it within thirty (30) days of the dates set out in Clause 3.1,
interest shall accrue on the sum due and owing to LICENSOR at an annual
rate of two percent (2%) above the prime rate quoted by The Wall
Street Journal on the day said payment is due.

		
	4. 	OWNERSHIP OF INTELLECTUAL
PROPERTY

		
	4.1 	Subject to Clause 5,
LICENSOR Existing Intellectual Property shall remain vested exclusively
in LICENSOR.

		
	5. 	RESEARCH AND OTHER
RIGHTS

		
	5.1 	LICENSOR hereby grants to
VION a fully paid-up, royalty free, exclusive license under the
LICENSOR Existing Intellectual Property to carry out the tasks assigned
to VION under Research Programme. For the purposes of clarification, it
is agreed that LICENSOR shall not license or sublicense the LICENSOR
Existing Intellectual Property to any third party during the period of
this Agreement.

		
	6. 	OPTION
RIGHTS

		
	6.1 	In consideration of the
payment by VION of seventy-five thousand United States dollars
(US$75,000) ("the Option Fee") VION shall
have an exclusive option during the term of this Agreement to enter
into the VION License (Schedule 4).

		
	6.2 	VION shall be entitled to exercise the
Option by written notice to LICENSOR ("the Exercise
Notice") accompanied by payment of the Option Fee to be
received by LICENSOR at any time prior to the expiry of the Research
Term.

5

		
	6.3 	If VION
exercises the Option, LICENSOR and VION shall enter into the VION
License within one (1) month of receipt of the Exercise Notice and
Option Fee by LICENSOR.

		
	6.4 	If LICENSOR
has not received the Exercise Notice before expiry of the Research
Term, LICENSOR shall be free to license the LICENSOR Existing
Intellectual Property to any third party of its choosing and shall have
no further obligation to VION in respect of the LICENSOR Existing
Intellectual Property.

		
	7. 	MANAGEMENT OF PATENT
RIGHTS

		
	7.1 	LICENSOR shall undertake or
procure the filing, prosecution, maintenance and defence of LICENSOR
Existing Patent Rights and be responsible for the conduct of any
enforcement proceedings relating to them (including any interference or
opposition proceedings) as from time to time may in LICENSOR's
absolute discretion appear to be necessary or desirable at its own cost
during the term of this Agreement. LICENSOR shall consult with VION for
filing patent applications in different countries. It is the intent of
the parties that LICENSOR shall diligently, and use best efforts to,
file, prosecute, maintain and defend LICENSOR Existing Patent Rights
during the term of this Agreement. LICENSOR agrees to discuss with VION
the countries in which it plans to file, prosecute, maintain and defend
LICENSOR Existing Patent Rights as there may be some countries which
both parties agree should not be pursued.

		
	7.2 	Each of the Parties shall give the other
Party immediate notice of any infringement of any LICENSOR Existing
Patent Rights by a third party which comes to that Party's
attention during the term of this Agreement.

		
	7.3 	If during the term of this Agreement either
Party receives any notice, claim or proceedings from any third party
alleging infringement of that third party's intellectual property
by reason of either Party's activities in relation to this
Agreement or the use and exploitation of any LICENSOR Existing
Intellectual Property, the Party receiving that notice shall forthwith
notify the other Party of the notice, claim or
proceeding.

		
	8. 	WARRANTIES AND
LIABILITIES

		
	8.1 	It is agreed and understood
by the Parties that VION is responsible for its own investigation to
satisfy itself that the Research Programme can be properly and lawfully
conducted without infringing the rights of any third party.

		
	8.2 	Each Party represents and warrants to the
other Parties that:

			
		8.2.1 	it has
legal power, authority and right to enter into this Agreement and to
perform its respective obligations hereunder; and

			
		8.2.2 	it is not at the Commencement Date
a party to any agreement, understanding with any third party which in
any significant way prevents it from fulfilling any of its material
obligations hereunder.

			
		8.2.3 	it is
also agreed and understood by the Parties that LICENSOR is the sole
owner or the sole assignee of the LICENSOR Existing Intellectual
Property listed in Schedule 1, and LICENSOR has the right to license
the LICENSOR Existing Intellectual Property to VION.

		
	 	Any breach of this Clause 8.2 shall be a
material breach of this License Agreement.

		
	8.3 	Without prejudice to the generality of Clause
8.1, other than expressly set out herein, no Party gives any
representation or warranty to any other Party that the performance of
this Agreement will not result in the infringement of any rights,
including intellectual property rights, vested in a third party,
provided that LICENSOR represents and warrants that it has no knowledge
of any third party intellectual property rights reasonably likely to be
infringed by VION's performance of this Agreement and use of the
LICENSOR Existing Intellectual Property.

6

		
	8.4 	Nothing in this
Agreement shall be construed as a representation made or warranty given
by LICENSOR in relation to the LICENSOR Existing Intellectual
Property:

			
		8.4.1 	any patent will issue
based upon any pending patent application included in LICENSOR Existing
Intellectual Property; nor

			
		8.4.2 	any
patent included in the LICENSOR Existing Intellectual Property which
issues will be valid.

			
		8.4.3 	except as
stated in 8.3, the use of any LICENSOR Existing Intellectual Property
will not infringe the patent or proprietary rights of any third
party.

		
	 	Furthermore, except as stated in 8.3,
LICENSOR makes no representation or warranty, express or implied, with
respect to the LICENSOR Existing Intellectual Property, including any
warranty of merchantability or fitness for a particular purpose.

		
	8.5 	All Materials supplied to VION pursuant to
the terms of this Agreement (including LICENSOR Existing Materials) are
supplied "as is" and VION understands and
agrees that such Materials are experimental in nature and, except as
stated in 8.3, are supplied without any representation or warranty,
express or implied, including any implied warranty of merchantability,
satisfactory quality or fitness for any particular purpose or any
warranty that the use of the said Materials will not infringe or
violate any patent or other proprietary rights of any other person.

		
	8.6 	VION shall be responsible for and indemnify
LICENSOR and their officers, employees and agents (collectively the
"Indemnified Party") against any and all
liability, loss, damage, cost or expense incurred or suffered by the
Indemnified Party arising from VION's handling or storage of
LICENSOR Existing Materials, unless such claims arise from the
negligence or wilful misconduct of Indemnified Party.

		
	8.7 	In the event that the LICENSOR or other
Indemnified Party intends to seek indemnification under Clause 8.6, it
shall promptly inform VION of a claim after receiving notice of the
claim and shall permit VION to direct and control the defence of the
claim and shall provide such reasonable assistance as reasonably
requested by VION (at VION's cost) in the defence of the claim
provided always that nothing in this Clause 8.7 shall permit VION to
make any admission on behalf of or to settle any litigation without the
prior written consent of LICENSOR or other Indemnified Party as the
case may be, which consent shall not be unreasonably withheld.

		
	8.8 	Without prejudice to Clause 8.6, no Party
shall be liable to any other Party in contract, tort, negligence,
breach of statutory duty or otherwise for any loss, damage, cost or
expense of any nature whatsoever incurred or suffered by the other
Party or that other Party's Affiliates of an indirect or
consequential nature including any economic loss or other loss of
turnover, profits, business or
goodwill.

		
	9. 	CONFIDENTIALITY

		
	9.1 	Each
Party undertakes and agrees not at any time for any reason whatsoever
to disclose, or permit to be disclosed to any third party, or make use
of or permit to be made use of, any trade secrets or confidential
information relating to another Party's technology or the
business affairs or finances of another Party or of an Affiliate of
another Party (the "Confidential
Information") which come into its possession pursuant to
this Agreement.

		
	9.2 	The Parties shall
ensure that only those of their officers and employees who are directly
concerned with the carrying out of this Agreement have access to the
Confidential Information of another Party and are informed of its
secret and confidential
nature.

		
	9.3 	Subject to the provisions of
Clause 10.1, the obligations of confidence referred to in this Clause 9
shall not extend to any Confidential Information which it can be shown
to the reasonable satisfaction of the disclosing
Party:

7

		
	9.3.1 	was, or
shall become, generally available to the public otherwise than by
reason of a breach by the recipient Party or Parties of the provisions
of this Clause 9; or

		
	9.3.2 	was known
to the recipient Party or Parties, and was not subject to any
obligation of confidentiality, prior to its receipt from the disclosing
Party, as can be shown by documentary evidence;
or

		
	9.3.3 	is subsequently disclosed to
the recipient Party or Parties without obligations of confidence by a
third party owing no such obligations in respect thereof;
or

		
	9.3.4 	is required to be disclosed by
any applicable law or any Competent Authority to which a Party is from
time to time subject; or

		
	9.3.5 	is
independently developed by the recipient Party or Parties other than as
part of the Research Programme and with no reference or reliance on any
information generated as part of the Research
Programme.

		
	9.4 	The obligations of each
Party under this Clause 9 shall survive the expiration or termination
of this Agreement for a period of five (5)
years.

		
	10. 	PUBLICATIONS

		
	10.1 	Proposals
for publications (including presentations to the public) containing
details of work or results of the Research Programme shall be sent to
LICENSOR, or their subsequent replacements, for review prior to
publication. LICENSOR shall review the same within 30 calendar days of
their receipt. If in the opinion of LICENSOR any such publication
contains LICENSOR confidential information, VION shall delay the
submission or public presentation until after such confidential
information has been deleted and/or appropriate patent protection has
been obtained or covered by a patent application. Such delay may not
exceed 60 calendar days. If a publication does result from work using
the Material, at LICENSOR's request, VION agrees to acknowledge
LICENSOR and/or give credit as scientifically appropriate, based on any
direct contribution LICENSOR may have made to the
work.

		
	10.2 	Notwithstanding the
confidentiality obligations assumed by the Parties hereunder, both
Parties acknowledge the importance of publications for both Parties. In
the light of this, the Parties shall use all reasonable efforts to
facilitate timely publication of the results of the Research
Programme.

		
	11. 	TERM AND
TERMINATION

		
	11.1 	This Agreement shall
come into effect on the date last signed below (the
"Effective Date") and shall expire two (2)
months after termination of the Research
Programme.

		
	11.2 	The Research Programme
shall commence on the Commencement Date and shall terminate fifteen
months from the Commencement Date. For the sake of clarity the duration
of the Research Term shall be 15 (fifteen) calendar months
only.

		
	11.3 	A Party (the
"Terminating Party") shall have the right to
terminate this Agreement giving written notice of termination to the
other Parties, upon the occurrence of any of the following events at
any time during this
Agreement:

			
		11.3.1 	the other Party
("the Defaulting Party") commits a material
breach of this Agreement which, in the case of a breach capable of
remedy, shall not have been remedied within 30 (thirty) Business Days
of the receipt by it of a notice identifying the breach and requiring
its remedy.

		
	12. 	CONSEQUENCES OF
TERMINATION

		
	12.1 	Upon expiry of this
Agreement or in the case that VION commits a material breach of this
Agreement:

8

			
		12.1.1 	the
Option shall terminate
immediately;

		
	12.1.2 	the licenses
granted pursuant to Clauses 2, 5, and 6 shall terminate
immediately;

		
	12.1.3 	VION shall pay to
LICENSOR within 30 (thirty) Business Days all sums due to LICENSOR
which have accrued prior to the date of termination or expiry;

		
	12.1.4 	VION shall return to LICENSOR, or
as LICENSOR may direct, all Documents which embody and pertain to
LICENSOR Existing Intellectual Property and associated Know How;
and

		
	12.1.5 	VION shall return to
LICENSOR, or at the election of LICENSOR destroy, all LICENSOR Existing
Materials in VION's possession or under their
control.

		
	12.2 	If VION terminates this
Agreement and decides not to enter into the License Agreement with the
LICENSOR, VION shall provide LICENSOR with a summary of Results
obtained under the Research Programme and shall assign rights to these
Results for research purposes to LICENSOR. Results shall mean any data
generated by VION under the Research Programme from the chemical and
biological assays specifically related to the heterocyclic hydrazones
in patent applications in Schedule 1. VION shall retain the Results for
use for non-commercial purposes and may publish the Results.

		
	12.3 	In the case that LICENSOR commits a
material breach of this Agreement, LICENSOR shall reimburse VION within
30 (thirty) Business Days after receiving VION's invoice of all
documentable expenses related to this Agreement which have accrued
prior to the date of termination.

		
	12.4 	Termination or expiry of this Agreement for
whatever reason shall not affect the accrued rights of the Parties
arising in any way out of this Agreement as at the date of termination
or expiry and in particular but without limitation the right to recover
damages and interest, and the provisions of Clauses 3.1, 4, 8, 9, 15,
18 and 24 shall remain in full force and
effect.

		
	13. 	WAIVER

		
	13.1 	Neither
Party shall be deemed to have waived any of its rights or remedies
conferred by this Agreement unless the waiver is made in writing and
signed by a duly authorised representative of that Party. In
particular, no delay or failure of either Party in exercising or
enforcing any of its rights or remedies conferred by this Agreement
shall operate as a waiver of those rights or remedies or so as to
preclude or impair the exercise or enforcement of those rights or
remedies nor shall any partial exercise or enforcement of any right or
remedy by a Party preclude or impair any other exercise or enforcement
of that right or remedy by that
Party.

		
	14. 	ENTIRE
AGREEMENT/VARIATIONS

		
	14.1 	This
Agreement constitutes the entire agreement and understanding between
the Parties and supersedes all prior oral or written understandings,
arrangements, representations or other agreements between them relating
to the subject matter of this
Agreement.

		
	14.2 	No director, employee or
agent of a Party is authorised to make any representation or warranty
to the other Party not contained in this Agreement, and each Party
acknowledges that it has not relied on any such oral or written
representations or warranties.

		
	14.3 	No
variation, amendments, modification or supplement to this Agreement
shall be valid unless made in writing in the English language and
signed by a duly authorised representative of each
Party.

		
	15. 	NOTICES

		
	15.1 	Any
notice to be given pursuant to this Agreement shall be in writing in
the English language and shall be delivered by hand, sent by registered
or recorded delivery post or sent by 

9

		
	 	
facsimile confirmed by registered or
recorded delivery post to the address or facsimile number of the
recipient set out below or such other address or facsimile number as a
Party may from time to time designated by written notice to the other
Party.

		
	 	Addresses:

		
	 	LICENSOR
 AUSTRIA WIRTSCHAFTSSERVICE
Gesellschaft m.b.H.
 Ungargasse 37
 A-1030 Vienna, Austria

		
	 	PROF. DR. JOHANN HOFMANN
 Institut für
Medizinische Chemie und Biochemie
 University of Innsbruck

Fritz-Pregl-Strasse 3
 A-6020 Innsbruck, Austria ]

		
	 	VION Pharmaceuticals, Inc.
 4 Science
Park
 New Haven, CT 06511
 USA
 Attn: Howard B.
Johnson

		
	15.2 	Any notice given pursuant
to this Clause 15 shall be deemed to have been
received:

		
	15.2.1 	in the case of
delivery by hand, when delivered;
or

		
	15.2.2 	in the case of facsimile, on
acknowledgement by the recipient facsimile receiving equipment on a
Business Day if the acknowledgement occurs before 17.00 hours local
time of the recipient and in any other case at 10.00 hours on the next
following Business
Day.

		
	16. 	ASSIGNMENT

		
	16.1 	Subject
to Clause 16.2, neither Party shall without the prior written consent
of the other Party, assign the benefit and/or burden of this Agreement
nor sub-contract any of its obligations hereunder unless otherwise
permitted by the terms
hereof.

		
	16.2 	Either Party shall be
entitled to assign the benefit and/or burden of this Agreement to any
Affiliate or its successor in connection with any merger, consolidation
or sale or other disposal of its assets and/or
business.

		
	17. 	FORCE
MAJEURE

		
	17.1 	If a Party (the
"Non-Performing Party") is unable to carry
out any of its obligations under this Agreement due to Force Majeure
this Agreement shall remain in effect but the Non-Performing
Party's relevant obligations under this agreement and the
relevant obligations of the other Party ("the Innocent
Party") under this Agreement shall be suspended for the
duration of the circumstance of Force Majeure provided
that:

		
	17.1.1 	the suspension of
performance is of no greater scope than is required by the Force
Majeure;

		
	17.1.2 	the Non-Performing
Party gives the Innocent Party prompt notice describing the
circumstance of Force Majeure, including the nature of the occurrence
and its expected duration, and continues to furnish regular reports
during the period of Force
Majeure;

		
	17.1.3 	the Non-Performing
Party uses all reasonable efforts to remedy its inability to perform
and to mitigate the effects of the circumstance of Force Majeure;
and

		
	17.1.4 	as soon as practicable after
the event which constitutes Force Majeure the Parties shall discuss how
best to continue their operations as far as possible in accordance with
this Agreement.

10

		
	17.2 	If Force
Majeure is continuing at the expiry of three months the Innocent Party
may give 30 (thirty) Business Days written notice to terminate this
Agreement to the Non-Performing Party and termination shall occur if
the Force Majeure is continuing at the end of that 30 (thirty) Business
Day notice period.

		
	18. 	DISPUTE
RESOLUTION

		
	18.1 	Any matter that may
arise concerning the construction, meaning or effect of this Agreement
or concerning the rights and liabilities of the Parties hereunder or
any other matter arising out of or in connection with this Agreement
shall first be submitted for resolution to the Chief Executive Officer
of VION and the LICENSOR, who may call on others to advise them as they
see fit. If the Chief Executive Officer of VION and LICENSOR fail to
resolve the dispute within 28 days the Parties agree to try in good
faith to settle the matter by mediation administered by the American
Arbitration Association under its Commercial Mediation Rules.

		
	18.2 	Notwithstanding the foregoing, either
Party may seek immediate injunctive or other interim relief from any
court of competent jurisdiction with respect to any matter for which
monetary damages would not adequately protect such Party's
interests or otherwise to enforce and protect intellectual property
rights owned or licensed to such
Party.

		
	19. 	SEVERANCE OF
TERMS

		
	19.1 	If the whole or any part of
this Agreement is or becomes or is declared illegal, invalid or
unenforceable in any jurisdiction for any reason (including both by
reason of the provisions of any legislation and also by reason of any
court or Competent Authority which either has jurisdiction over this
Agreement or has jurisdiction over either of the
Parties):

		
	19.1.1 	in the case of the
illegality, invalidity or unenforceability of the whole of this
Agreement it shall terminate only in relation to the jurisdiction in
question; or

		
	19.1.2 	in the case of the
illegality, invalidity or unenforceability of part of this Agreement
that part shall be severed from this Agreement in the jurisdiction in
question and that illegality, invalidity or unenforceability shall not
in any way whatsoever prejudice or affect the remaining parts of this
Agreement which shall continue in full force and
effect.

		
	19.2 	If in the reasonable
opinion of a Party any severance under this Clause 19 materially
affects the commercial basis of this Agreement, the Parties shall
discuss, in good faith, ways to eliminate the material
effect.

		
	20. 	THIS AGREEMENT NOT TO CONSTITUTE A
PARTNERSHIP

		
	20.1 	None of the provisions
of this Agreement shall be deemed to constitute a partnership between
the Parties and neither of the Parties shall have any authority to bind
the others in any way except as provided in this
Agreement.

		
	21. 	PUBLIC
STATEMENTS

		
	21.1 	Except as provided in
Clause 21.2, neither Party will, without the prior written consent of
the other Party:

		
	21.1.1 	use in
advertising, publicly or otherwise, any trade-name, personal name,
trade mark, trade device, service mark, symbol, or any abbreviation,
contraction or simulation thereof, owned by another Party or Affiliate
of another Party; or

		
	21.1.2 	represent,
either directly or indirectly, that any product or service of another
Party is a product or service of the representing Party or that it is
made in accordance with or utilises the information or documents of the
other Party.

11

		
	21.2 	The
restrictions in Clause 21.1 shall not apply to the
following:

		
	21.2.1 	a press release, in a
form agreed to in writing by the Parties publicly announcing this
Agreement; or

		
	21.2.2 	use as required
by any applicable law or governmental
regulation.

		
	22. 	COSTS

		
	22.1 	Each
Party shall bear its own legal costs, legal fees and other expenses
incurred in the preparation and execution of this
Agreement.

		
	23. 	COUNTERPARTS

		
	23.1 	This
Agreement may be executed in any number of counterparts and by the
different Parties by separate counterparts, each of which when so
executed shall be the original, and all of which shall constitute one
and the same instrument. Complete sets of counterparts shall be lodged
with each Party.

		
	24. 	GOVERNING
LAW

		
	24.1 	All matters relating to this
Agreement shall be governed by the law of the United
Kingdom.

12

SCHEDULE
1

Part I

LICENSOR
existing patents

Austrian Application

		
	Title: 	***

		
	Appl.
No: 	***

		
	Appl.
Date: 	***

PCT Application

		
	Title: 	***

		
	Appl.
No: 	***

		
	Appl.
Date: 	***

		
	Publ.
No: 	***

EP Application

		
	Title: 	***

		
	Appl.
No: 	*** ***

		
	Appl.
Date 	***

US Application

		
	Title: 	***

		
	Appl.
No: 	***

		
	Appl.
Date: 	***

Canadian Application

		
	Title: 	***

		
	Appl.
No: 	***

		
	Appl.
Date: 	***

	

		***
Confidential

13

SCHEDULE 2

INTENTIONALLY
LEFT BLANK

14

SCHEDULE 3

"Research Programme"

		
	 	VION's
responsibility:

		
	 	1. *** will be tested in the
cytotoxicity assay on ***
tumor cell lines.

		
	 	2. *** will be tested in
rats for pharmacokinetic parameters if analytical methods (HPLC) can be
set up.

		
	 	3. *** will be tested for anti-tumor
efficacy in vivo in *** tumor models.

		
	 	4. To
study mechanisms of action of TSCs with genomic or proteomic
technology.

	

		***
Confidential

15

SCHEDULE
4

"VION
License"

16

DR. JOHNNY EASMON, PROF. DR.
GOTTFRIED HEINISCH, DR. GERHARD PÜRSTINGER, PROF. DR.
HEINZ-HERBERT FIEBIG, PROF. DR. JOHANN HOFMANN,
 AND AUSTRIA
WIRTSCHAFTSSERVICE GESELLSCHAFT M.B.H.

—
and —

VION PHARMACEUTICALS
INC

	
				
	

	
				
	

LICENSE
AGREEMENT

	
				
	

	
				
	

17

THIS LICENSE AGREEMENT is made as
of the          day of                    ,
            

BETWEEN:

		
	(1) 	DR. JOHNNY EASMON, PROF. DR.
GOTTFRIED HEINISCH, DR. GERHARD PÜRSTINGER, Institute of
Pharmacy, University of Innsbruck, Innrain 52a, A-6020 Innsbruck,
Austria, PROF. DR. HEINZ-HERBERT FIEBIG, Am Flughafen 12,
D-79108 Freiburg, Germany, PROF. DR. JOHANN HOFMANN, Institute
of Medical Chemistry and Biochemistry, University of Innsbruck,
Fritz-Pregl-Strasse 3, A-6020 Innsbruck, Austria, and AUSTRIA
WIRTSCHAFTSSERVICE GESELLSCHAFT M.B.H., Ungargasse 37, A-1030
Vienna, Austria (collectively called
"LICENSOR");
and

		
	(2) 	VION PHARMACEUTICALS INC. a
Delaware company whose principal place of business is at Four Science
Park, New Haven, Connecticut 06511 United States of America
("VION")

WHEREAS:

		
	(A) 	LICENSOR and VION entered
into a research collaboration agreement (the "Research
Collaboration Agreement") concerning a programme of
research to evaluate certain Thiosemicarbazones (TSCs);
and

		
	(B) 	VION has exercised the option granted
pursuant to Clause 6 of the Research CollaborationAgreement and
LICENSOR has agreed to grant a license to VION on the following terms
and conditions.

NOW IT IS HEREBY AGREED as
follows:

		
	1. 	DEFINITIONS AND
INTERPRETATION

		
	1.1 	In this License Agreement
and in the Schedules to this License Agreement the following words and
phrases shall have the following meanings unless the context requires
otherwise:

							
	"Affiliate"		means
any company, partnership or other entity which directly or indirectly
Controls, is Controlled by, or is under common Control with, any Party
including as a subsidiary or holding company of any
Party.
	"Business
Day"		means a day other than a Saturday,
Sunday, bank or other public holiday in Austrian and/or the United
States of America.
	"Clinical
Trial"		means a clinical trial conducted in
accordance with recognised protocols approved by a Competent Authority
including CTX and DDX clinical trials or their equivalents anywhere in
the World.
	"Commencement
Date"		means the date first above
written.
	"Competent
Authority"		means any local or national agency,
authority, department, inspectorate, minister, ministry official or
public or statutory person (whether autonomous or not) of, or of any
government of, any country having jurisdiction over this License
Agreement or over any of the Parties or over the development or
marketing of medicinal products including, but not limited to, the
European Commission and the European Court of
Justice.
	

18

							
	"Control"		means
the ownership of more than 50% of the issued share capital or
the legal power to direct or cause the direction of the general
management and policies of the Party in
question.
	"LICENSOR Existing
Intellectual Property"		means LICENSOR's
right, title and interest in the LICENSOR Existing Patent Rights,
LICENSOR Existing Know How and LICENSOR Existing
Materials.
	"LICENSOR Existing Know
How"		means the Know How relating to the
subject matter of the LICENSOR Existing Patent Rights, including Know
How created under the Research
Programme.
	"LICENSOR Existing
Materials"		means those Materials relating to
the subject matter of the LICENSOR Existing Patent Rights, including
Materials created under the Research
Programme.
	"LICENSOR Existing Patent
Rights"		means the patent applications referred
to in Schedule 1 and all Patent Rights arising from
them.
	"Documents"		Means
paper, notebooks, books, files, ledgers, records, tapes, discs,
diskettes, CD-ROM and any other media on which Know How can be
permanently stored.
	"Development
Plan"		Means the plan for the development of
Licensed Products set out in Schedule
3.
	"Force
Majeure"		means in relation to a Party any
event or circumstances which is beyond the reasonable control of that
Party which event that Party could not reasonably be expected to have
taken into account at the Commencement Date and which results in or
causes the failure of that Party to perform any or all of its
obligations under this License Agreement including act of God,
lightening, fire, storm, flood, earthquake, accumulation of snow or
ice, lack of water arising from weather or environmental problems,
strike, lockout or other industrial disturbance, war, terrorist act,
blockade, revolution, riot insurrection, civil commotion, public
demonstration, sabotage, act of vandalism, prevention from or hindrance
in obtaining in any way materials, energy or other supplies, explosion,
fault or failure of plant or machinery, governmental restraint, act of
legislature and directive or requirement of a Competent Authority
governing any Party provided that lack of funds shall not be
interpreted as a cause beyond the reasonable control of that
Party.
	"Health Registration
Approval"		means, with respect to a country in
the Territory, approval by the health or other Competent Authority
necessary to manufacture and market a Licensed Product in the
country.
	"IND
Filing"		means an application made to a
Competent Authority to:
    
(i)    initiate a
Clinical Trial; or
(ii)   permit first administration
to human beings.
	

19

							
	"Know-How"		means
all technical and other information including ideas, concepts,
patentable and non-patentable inventions, discoveries, data, formulae,
specifications, drawings, manuals, information, methods and processes
for synthesis of chemical compounds, instrumentation, procedures for
experiments and tests including laboratory records and data analyses
and results of experimentation and
testing.
	"License
Agreement"		means this agreement and any and
all schedules, appendices and other addenda to it as may be varied from
time to time in accordance with the provisions of this
agreement.
	"Licensed
Products"		means a product or products which,
or the process of production of which, or the use of which falls within
the scope of a Valid Claim in the country where the patent is
issued.
	"Material"		means
Documents and any chemical or biological substances including
any:
  
(iv)  organic or inorganic element or
compound;
(v)   drug or pro-drug;
(vi)  assay
or reagent.
	"Net
Sales"		means the invoiced amount billed for
sales of Licensed Products to a Third Party (the
"Customer") by VION or its Affiliates or by
Sub-licensees less the following items to the extent they are paid or
incurred or allowed and included in the invoice
price:
   
a)  quantity, trade and/or cash discounts
or rebates actually granted or accrued;
b)  amounts
repaid or credited and allowances including cash, credit or free goods
allowances, given by reason of billing errors and rebates actually
allowed or paid or accrued;
c)  amounts refunded or
credited for Licensed Products which were rejected or damaged or
recalled; and
d)  taxes, tariffs, customs duties and
surcharges and other governmental charges incurred in connection with
the sale, exportation or importation of Licensed
Products;
   
The transfer of Licensed Products by
VION or one of its Affiliates to another Affiliate or to a Sub-licensee
shall not be considered a sale. In such cases, Net Sales shall be
determined based on the invoiced sale price levied by the Affiliate or
Sub-licensee on the Customer, less the aforementioned deductions to the
extent they are allowed, paid or
accrued.
	"Parties"		means
LICENSOR and VION and "Party" shall be
construed as any one of them and any one of the persons and entities
constituting LICENSOR.
	

20

							
	"Patent
Rights"		means any patent applications,
patents, author certificates, inventor certificates, utility models and
all foreign counterparts of them and includes all divisions, renewals,
continuations, continuations-in-part, extensions, reissues,
substitutions, confirmations, registrations, revalidations and
additions of or to them, as well as any SPC, or any like form of
protection.
	"Pivotal Registration
Study"		means a Clinical Trial designed to
support or upon the basis of which an application for Health
Registration Approval is to be
made.
	"Quarter"		means
the three (3) month periods commencing on 1 January, 1 April, 1 July
and 1 October annually, and "Quarterly" shall
be construed accordingly.
	"Research
Programme"		means the programme of research
defined in the Research Collaboration
Agreement.
	"Research
Term"		means the term of the Research Programme
as defined in the Research Collaboration
Agreement.
	"SPC"		means
a right based on a patent pursuant to which the holder of the SPC is
entitled to exclude third parties from using, making, having made,
selling or otherwise disposing or offering to dispose of, importing or
keeping the product to which the SPC relates, such as Supplementary
Protection Certificates in Europe, and any similar right anywhere in
the
world.
	"Sub-license"		means
a sub-license granted by VION (in accordance with Clause
2.4).
	"Sub-licensee"		means
any person granted a Sub-license by
VION.
	"Sub-license
Royalties"		means royalty payments based on Net
Sales that accrue to VION under a
Sub-license.
	"Territory"		means
the world.
	"Third
Party"		means any entity or person other than
the Parties or an Affiliate of a
Party.
	"Valid
Claim"		means
either:
   
a)  a claim of an issued and unexpired
patent included within the LICENSOR Existing Patent Rights, which claim
has not been held permanently revoked, unenforceable or invalid by a
decision of a court or other governmental agency of competent
jurisdiction, unappealable or unappealed within the time allowed for
appeal, and which has not been admitted to be invalid or unenforceable
through reissue or disclaimer or otherwise; or
b)  a
claim of a pending patent application included within the LICENSOR
Existing Patent Rights which claim was filed in good faith and has not
been abandoned or finally disallowed without the possibility of appeal
or refiling of the application.
	

21

		
	1.2 	In this License
Agreement:

			
	 	1.2.1	unless
the context otherwise requires, all references to a particular clause
or schedule shall be a reference to that clause or schedule in or to
this License Agreement as it may be amended from time to time pursuant
to this License
Agreement;

			
	 	1.2.2	the
headings are inserted for convenience only and shall be ignored in
construing this License
Agreement;

			
	 	1.2.3	unless
the contrary intention appears, words importing the masculine gender
shall include the feminine and vice versa and words in the singular
include the plural and vice
versa;

			
	 	1.2.4	unless the
contrary intention appears, words denoting persons shall include any
individual, partnership, company, corporation, joint venture, trust
association, organisation or other entity, in each case whether or not
having separate legal
personality;

			
	 	1.2.5	the
words "include",
"included" or
"including" are to be construed without
limitation to the generality of the preceding words;
and

			
	 	1.2.6	reference to any
statute or regulation includes any modification or re-enactment of that
statute or regulation.

		
	2. 	GRANT OF
LICENSE

		
	2.1 	LICENSOR hereby grants to VION
an exclusive license throughout the Territory under the LICENSOR
Existing Intellectual Property to research, develop, use, keep, make,
have made, sell and otherwise dispose or offer to dispose of Licensed
Products.

		
	2.2 	Subject to Clause 2.3, the
license granted in Clauses 2.1 shall be exclusive. The term of the
license granted hereunder shall commence upon the signing hereof and
shall continue for each Patent Right, on a country by country basis,
for the term of the relevant Patent Right included within the LICENSOR
Existing Intellectual Property.

		
	2.3 	It is
acknowledged and agreed that LICENSOR shall have the right to use the
LICENSOR Existing Intellectual Property for non-commercial research
purposes only. For the purposes of clarification, LICENSOR shall not
license or sublicense the LICENSOR Existing Intellectual Property to
any other person or entity which conflicts with the license granted to
VION hereunder.

		
	2.4 	VION shall be entitled to
sublicense the rights granted in this License Agreement; any
Sub-license entered into by VION
shall;

			
	 	a)	provide that the
Sub-license shall terminate automatically on the expiry or termination
for whatever reason of this License
Agreement;

			
	 	b)	provide that
the Third Party with whom the Sub-license has been entered into shall
undertake to directly allow LICENSOR the same access to the books and
records as it has to VION's books and records under this License
Agreement.

		
	3. 	CONSIDERATION

		
	3.1 	In
consideration of the rights granted under this License Agreement, VION
shall pay the following sums to LICENSOR:

			
	 	3.1.1	the following milestone
fees in respect of each Licensed Product (whether the milestone has
been achieved by VION or a
Sub-licensee);

			
	 	   (a)	(a)***
United States dollars (US$***) on the first IND Filing;
and

			
	 	   (b)	(b)***
United States dollars (US$***) on the commencement of a Phase III
Clinical Trial or Pivotal Registration Study; and

22

			
		(c) 	***
United States dollars (US$***) on the grant of the first Health
Registration Approval in any country in the
Territory.

		
	 	For the purposes of clarification,
it is understood that for each Licensed Product the milestone fees paid
to LICENSOR will be no more than $*** (whether the milestone has been
achieved by VION or by a
Sub-licensee).

		
	3.1.2 	in the case of
VION's sale of Licensed Products, royalties of *** of Net Sales
*** in any calendar year and of *** of Net Sales *** in any calendar
year.

		
	3.1.3 	in the case of a
Sub-licensee's sale of Licensed Products, *** of Sub-license
Royalties with the limitation that the royalties due to LICENSOR shall
not *** of Net Sales;
and

			
	 	3.1.4	any and all
patent filing, maintenance and prosecution costs incurred after the
Commencement Date;
and

			
	 	3.1.5	an annual
minimum of *** United States dollars (US$***) per calendar year once a
Licensed Product has been approved by the
FDA.

		
	4. 	PAYMENT

		
	4.1 	All payments due to LICENSOR under this
License Agreement shall (subject to written advice from LICENSOR
amending the details) be made in United States dollars by telegraphic
transfer to the account below:

		
	 	Payee:
LICENSOR

		
	 	AUSTRIA WIRTSCHAFTSSERVICE
Gesellschaft m.b.H
 Ungargasse 37
 A-1030 Vienna, Austria

Account No:                    42506710005
 Bank Sorting
Code:        43000

IBAN:                               AT254300042506710005

Bank:                                Volksbank Wien
AG
 Owner of Account:        Austria Wirtschaftsservice

		
	4.2 	VION shall make the payments to
LICENSOR:

		
	4.2.1 	in the case of the
royalties payable pursuant to Clause 3.1.2, within 30 (thirty) days of
the end of the Quarter in which the sales of the relevant Licensed
Products took place; or

		
	4.2.2 	in the
case that the licensed product is sublicensed to third parties, within
30 (thirty) days from the date upon which the Sub-license Royalties
have been received by VION; or

		
	4.2.3 	in
the case of the milestone fees payable pursuant to Clause 3.1.1, within
30 (thirty) days of achieving the milestone;
or

		
	4.2.4 	in the case of annual minimums
pursuant to Clause 3.1.4, within 30 (thirty) days of the end of the
second Quarter.

		
	4.3 	Where sums are received
by VION in a currency other than United States dollars, conversion of
such currencies to United States dollars will be performed at the
closing mid-point rate published on the last Business Day of the
Quarter in which the sum is to be
paid.

		
	4.4 	Where LICENSOR does not receive
payment of any sums due to it within thirty (30) days of the dates set
out in Clauses 3.1 or 4.2 as the case may be (the "Due
Date"), interest shall accrue on the sum due and owing to
LICENSOR at an annual rate of two percent (2%) above the prime
rate quoted by The Wall Street Journal on the day said payment is
due.

	

	***	Confidential

23

		
	5. 	BOOKS AND
RECORDS

		
	5.1 	VION shall prepare an annual
statement which shall show on a country by country basis for the
previous calendar year all monies due to LICENSOR under this License
Agreement. That statement shall include the dollar amount of Net Sales
of each Licensed Product sold in each country in which sales occurred,
and shall be submitted to LICENSOR within sixty (60) Business Days of
31st March of each year. If LICENSOR gives notice to VION within twenty
(20) Business Days of the receipt of any such statement that it does
not accept the same, that statement shall be certified by an
independent accountant appointed by agreement between VION and LICENSOR
or, if such agreement cannot be reached within ten (10) Business Days,
appointed at the request of either LICENSOR or VION. VION shall make
available to the independent accountant all books and records required
for the purpose of that certification and the statements so certified
shall, in the absence of manifest error, be final and binding between
the Parties. The cost of the external certification (cost of the
independent accountant) shall be the responsibility of VION if the
statement is shown to have underestimated the monies payable to
LICENSOR by more than five percent (5%) and the responsibility
of LICENSOR otherwise. Any outstanding payments due to LICENSOR which
are identified as a result of carrying out the investigation shall be
paid to LICENSOR immediately. There shall be no more than one
certification by an independent accountant in relation to any one
annual statement.

		
	5.2 	VION shall, and shall
ensure that its Sub-licensees shall, keep true and accurate records and
books of account containing all data necessary for the calculation of
the amounts payable by it to LICENSOR pursuant to this License
Agreement. Such records and books of account shall be kept for six (6)
years following the end of the calendar year to which they relate and
shall, upon reasonable notice having been given by LICENSOR, be open at
all reasonable times on Business Days for inspection under the terms of
confidentiality contained in this License Agreement, by an independent
firm of accountants appointed by agreement between the Parties or, if
such agreement cannot be reached within ten (10) Business Days,
appointed at the request of either LICENSOR or VION. The cost of any
such examination shall be borne by LICENSOR, such examination to take
place not later than six (6) years following the expiration of the
period to which it relates and there shall be no more than one
examination per year.

		
	6. 	PERFORMANCE AND
CLINICAL DEVELOPMENT

		
	6.1 	VION shall, and
shall procure that its Affiliates and permitted Sub-licensees shall,
use best endeavours to develop, make, market, sell and otherwise
dispose of Licensed Products throughout the
Territory.

		
	6.2 	VION shall carry out in a
diligent manner the Development Plan (Schedule 3) in relation to
Licensed Products at its own cost and expense.

		
	7. 	MANAGEMENT OF PATENT RIGHTS AND OWNERSHIP OF
IMPROVEMENTS

		
	7.1 	VION shall, at its own cost,
be responsible for the filing, prosecution, and maintenance of any
patents and patent applications comprised within the LICENSOR Existing
Patent Rights after the Commencement Date.

		
	7.2 	If either Party receives any notice, claim or
proceedings from any Third Party alleging infringement of that Third
Party's intellectual property by reason of either Party's
activities in relation to this License Agreement or the use and
exploitation of the LICENSOR Existing Intellectual Property, the Party
receiving that notice shall forthwith notify the other Party of the
notice, claim or proceeding.

		
	7.3 	VION shall,
at its own cost, defend and enforce or shall procure the defence or
enforcement of the rights under the LICENSOR Existing Intellectual
Property including any interference proceedings arisen from any country
or countries. LICENSOR shall, at VION's cost, render

24

		
	 	
such reasonable assistance as VION
reasonably requests. If VION, for any reason whatsoever, decides not to
defend or enforce the LICENSOR Existing Intellectual Property or any
part of it in such country or countries, it shall promptly notify
LICENSOR and LICENSOR shall have the right, but not the obligation, to
terminate VION's license in such country or countries upon thirty
(30) days prior written notice to VION and/or to undertake proceedings
on its own behalf in accordance with Section 7.4.

		
	7.4 	If VION decides not to, or fails to defend or
enforce the relevant LICENSOR Existing Intellectual Property and if
LICENSOR desires the enforcement or defence of such rights, LICENSOR,
at its own cost, shall notify VION and VION shall, at LICENSOR's
request, grant to LICENSOR any and all rights that would be necessary
for LICENSOR to undertake the enforcement or defence. If VION is unable
to grant such rights then it shall, at LICENSOR's request, grant
to LICENSOR the right to conduct such an action in its name. VION shall
provide, at LICENSOR's request, such reasonable assistance as
LICENSOR may reasonably request in any such proceedings. Any monies
received by LICENSOR pursuant to any enforcement or defence of the
LICENSOR Existing Intellectual Property by them under this Clause 7.4
shall be solely for the benefit of
LICENSOR.

		
	7.5 	It is the intent of the
Parties to use their reasonable endeavours to apply for any extension
to the term of protection of the LICENSOR Existing Intellectual
Property including any SPC or other like form of protection which is
available anywhere in the world. Notwithstanding the foregoing, VION
has the right, in its sole discretion, not to file, prosecute, or
maintain patent applications or patents in any country. LICENSOR may,
in its sole discretion and at its own expense, file, prosecute, or
maintain such patent applications or patents in such country or
countries where VION does not file, prosecute or maintain patents or
patent applications, and may terminate VION's license to the
Licensed Patents in such country or
countries.

		
	8. 	WARRANTIES AND
LIABILITY

		
	8.1 	It is agreed and understood by
the Parties that VION is responsible for its own investigation to
satisfy itself that the rights granted under this License Agreement can
be properly and lawfully exercised by VION without infringing the
rights of any third party, and except as expressly set out in Clause
8.2 and 8.3 no warranties of any kind are given by LICENSOR in relation
to the intellectual property rights granted under this License
Agreement or owned or controlled by any third party which may affect
the exercise of such rights.

		
	8.2 	Each Party
represents and warrants to the other Parties
that:

			
	 	8.2.1	it has legal
power, authority and right to enter into this License Agreement and to
perform its respective obligations hereunder;
and

		
	8.2.2 	it is not at the Commencement
Date a party to any agreement, understanding with any Third Party which
in any significant way prevents it from fulfilling any of its material
obligations hereunder; and

		
	8.2.3 	it is
also agreed and understood by the Parties that LICENSOR is the sole
owner or the sole assignee of the LICENSOR Existing Intellectual
Property listed in Schedules 1, and LICENSOR has the right to license
the LICENSOR Existing Intellectual Property to
VION.

		
	 	Any breach of this Clause 8.2 shall be
a material breach of this License
Agreement.

		
	8.3 	Other than expressly set out
herein, no Party gives any representation or warranty to any other
Party that the performance of this License Agreement will not result in
the infringement of any rights, including intellectual property rights,
vested in a Third Party; provided that LICENSOR represents and warrants
that it has no knowledge of any third party intellectual property
rights reasonably likely to be infringed by VION's performance of
the Agreement and use of the LICENSOR Existing Intellectual
Property.

25

		
	8.4 	Nothing in this
License Agreement shall be construed as a representation made or
warranty given by LICENSOR in relation to the LICENSOR Existing Patent
Rights or other LICENSOR Existing Intellectual Property
that:

			
	 	8.4.1	any patent
will issue based upon any pending patent
application;

			
	 	8.4.2	any
patent which issues will be
valid.

		
	8.4.3 	except as stated in 8.3,
the use of any Licensed Intellectual Property will not infringe the
patent or proprietary rights of any Third
Party.

		
	 	Furthermore, except as stated in 8.3,
LICENSOR makes no representation or warranty, express or implied, with
respect to the LICENSOR Existing Intellectual Property, including any
warranty of merchantability or fitness for a particular
purpose.

		
	8.5 	No Party shall be liable to the
other Party, its Affiliates or Sub-licensees in contract, tort,
negligence, breach of statutory duty or otherwise for any loss, damage,
cost or expense of an indirect or consequential nature (including any
economic loss or other loss of turnover, profits, business or goodwill)
arising out of or in connection with this License Agreement or the
subject matter of this License Agreement.

		
	8.6 	VION shall be responsible for and indemnify,
defend and hold harmless LICENSOR, and their respective officers,
servants and agents against any and all liability, loss, damage, cost
or expense (including reasonable attorney's fees and court and
other expenses of litigation) arising out of or in connection with
Third Party claims relating to the discovery, research, development,
manufacture, marketing, selling and disposal of Licensed Products or
candidate Licensed Products by VION its Affiliates and
Sub-licensees.

		
	8.7 	In the event that LICENSOR
intends to seek indemnification under Clause 8.6, it shall promptly
inform VION of a claim after receiving notice of the claim and shall
permit VION to direct and control the defence of the claim and shall
provide such reasonable assistance as reasonably requested by VION (at
VION's cost) in the defence of the claim. Provided always that
nothing in this Clause 8.7 shall permit VION to make any admission on
behalf of, or to settle any litigation without the prior written
consent of,
LICENSOR.

		
	9. 	CONFIDENTIALITY

		
	9.1 	Each
Party undertakes and agrees not at any time for any reason whatsoever
to disclose or permit to be disclosed to any Third Party or otherwise
make use of or permit to be made use of (except as expressly permitted
by this License Agreement), any trade secrets or confidential
information relating to the other Party's technology or the
business affairs or finances of the other Party or of an Affiliate,
Sub-licensee or of any suppliers, agents, distributors or customers of
the other Party (the "Confidential
Information") which come into its possession pursuant to
this License Agreement.

		
	9.2 	The Parties shall
ensure that only those of their and their Affiliates' officers
and employees who have a need to know are given access to Confidential
Information and that those who are directly concerned with the carrying
out of this License Agreement and who have access to the Confidential
Information of the other Party are informed of its secret and
confidential nature.

		
	9.3 	The obligations of
confidence referred to in this Clause 9 shall not extend to any
Confidential Information
which:

			
	 	9.3.1	is at the
time of disclosure, or thereafter becomes, generally available to the
public otherwise than by reason of a breach by the recipient Party of
the provisions of this Clause 9;
or

			
	 	9.3.2	is known to the
recipient Party without obligations of confidence prior to its receipt
from the other Party, as can be shown by written record;
or

			
	 	9.3.3	is subsequently
disclosed to the recipient Party without obligations of confidence by
another party owing no such obligations in respect thereof;
or

26

			
	 	9.3.4	is
required to be disclosed by any applicable law or any Competent
Authority to which a Party is from time to time subject;
or

			
	 	9.3.5	is independently
developed by a servant, agent or employee of the recipient Party or any
other person or persons having no access to the Confidential
Information disclosed by a Party, as demonstrated by written
records.

		
	9.4 	The obligations of each Party
under this Clause 9 shall survive the expiration or termination for
whatever reason of this License Agreement for a period of five (5)
years.

		
	10. 	TERM AND
TERMINATION

		
	10.1 	This License Agreement shall
become effective as of the Commencement Date and shall expire, on a
country by country basis, when the last patent included within the
LICENSOR Existing Intellectual Property in such country
expires.

		
	10.2 	Either LICENSOR on the one hand
or VION on the other hand ("the Terminating
Party") shall have the right to terminate this License
Agreement forthwith upon giving written notice of termination to VION
on the one hand or LICENSOR on the other hand as the case may be
("the Defaulting Party"), upon the occurrence
of any of the following events at any time during this License
Agreement:

			
		10.2.1 	the Defaulting Party
commits a material breach of this License Agreement which in the case
of a breach capable of remedy shall not have been remedied within
thirty (30) Business Days of the receipt by it of a notice identifying
the breach and requiring its remedy;
or

			
		10.2.2 	VION for a period of longer
than ninety (90) Business Days fails to make payments set out in Clause
4 and VION fails to reach an agreement with LICENSOR concerning such
payments within thirty (30) Business Days of the receipt by it of a
notice identifying the
delinquency.

		
	11. 	CONSEQUENCES OF
TERMINATION

		
	11.1 	Upon expiry of this License
Agreement or in the case that VION commits a material breach of this
Agreement:

			
		11.1.1 	the license rights
granted by LICENSOR to VION pursuant to Clause 2 shall
terminate;

			
		11.1.2 	VION shall pay to
LICENSOR within sixty (60) Business Days all sums due to LICENSOR
hereunder which have accrued prior to the date of
termination;

			
		11.1.3 	VION shall return
to LICENSOR, or as LICENSOR may direct, all Documents which embody and
pertain to LICENSOR Existing Intellectual Property and associated Know
How. For the sake of clarity any and all data generated by VION
according to the Development plan shall be vested in VION;
and

			
		11.1.4 	VION shall return to
LICENSOR, or at the election of LICENSOR destroy, all LICENSOR Existing
Materials in VION's possession or under their
control.

		
	11.2 	In the case that LICENSOR commits
a material breach of this Agreement, LICENSOR shall reimburse VION
within 30 (thirty) Business Days after receiving VION's invoice
of all documentable expenses related to this Agreement which have
accrued prior to the date of
termination.

		
	11.3 	Termination or expiry of
this License Agreement for whatever reason shall not affect the accrued
rights of the Parties arising in any way out of this License Agreement
as at the date of termination or expiry and in particular but without
limitation the right to recover damages and interest, and the
provisions of Clauses 5, 8, 9 and 20 shall remain in full force and
effect.

27

		
	12. 	WAIVER

		
	12.1 	Neither
Party shall be deemed to have waived any of its rights or remedies
conferred by this License Agreement unless the waiver is made in
writing and signed by a duly authorised representative of that Party.
In particular, no delay or failure of either Party in exercising or
enforcing any of its rights or remedies conferred by this License
Agreement shall operate as a waiver of those rights or remedies or so
as to preclude or impair the exercise or enforcement of those rights or
remedies nor shall any partial exercise or enforcement of any right or
remedy by either Party preclude or impair any other exercise or
enforcement of that right or remedy by that Party.

		
	13. 	ENTIRE AGREEMENT/VARIATIONS

		
	13.1 	This License Agreement constitutes the
entire agreement and understanding between the Parties and supersedes
all prior oral or written understandings, arrangements, representations
or agreements between them relating to the subject matter of this
License Agreement, including the Research Collaboration Agreement which
is hereby terminated. No director, employee or agent of either Party is
authorised to make any representation or warranty to another Party not
contained in this License Agreement, and each Party acknowledges that
it has not relied on any such oral or written representations or
warranties.

		
	13.2 	No variation, amendments,
modification or supplement to this License Agreement shall be valid
unless made in writing in the English language and signed by a duly
authorised representative of each
Party.

		
	14. 	NOTICES

		
	14.1 	Any notice to be given pursuant to this
License Agreement shall be in writing in the English language and shall
be delivered by hand, or sent by facsimile confirmed to the address or
facsimile number of the recipient set out below or such other address
or facsimile number as a Party may from time to time designate by
written notice to the other Party.

Addresses:

		
	 	LICENSOR
 AUSTRIA
WIRTSCHAFTSSERVICE
 Gesellschaft m.b.H
 Ungargasse 37

A-1030 Vienna, Austria

		
	 	PROF. DR. JOHANN
HOFMANN
 Institut für Medizinische Chemie und Biochemie

University of Innsbruck
 Fritz-Pregl-Strasse 3
 A-6020
Innsbruck, Austria

		
	 	VION Pharmaceuticals,
Inc.
 4 Science Park
 New Haven, CT 06511
 USA
 Attn:
Howard B. Johnson

		
	14.2 	Any notice given
pursuant to this Clause 14 shall be deemed to have been
received:

			
		14.2.1 	in the case of
delivery by hand, when delivered; or

			
		14.2.2 	in the case of facsimile, on
acknowledgement by the recipient facsimile receiving equipment on a
Business Day if the acknowledgement occurs before 1700 hours local time
of the recipient and in any other case on the following Business
Day.

28

		
	15. 	ASSIGNMENT

		
	15.1 	Subject
to Clause 15.2, no Party shall without the prior written consent of the
other Party, assign the benefit and/or burden of this License Agreement
nor sub-contract any of its obligations hereunder unless otherwise
permitted by the terms hereof.

		
	15.2 	LICENSOR
or VION shall be entitled to assign the benefit and/or burden of this
License Agreement to any Affiliate or its successor in connection with
any merger, consolidation or sale or other disposal of its assets
and/or business.

		
	16. 	FORCE
MAJEURE

		
	16.1 	If a Party (the
"Non-Performing Party") is unable to carry
out any of its obligations under this License Agreement due to Force
Majeure this License Agreement shall remain in effect but the
Non-Performing Party's relevant obligations under this License
Agreement and the relevant obligations of the other Party
("the Innocent Party") under this License
Agreement shall be suspended for a period equal to the duration of the
circumstance of Force Majeure provided that:

			
		16.1.1 	the suspension of performance is
of no greater scope than is required by the Force Majeure;

			
		16.1.2 	the Non-Performing Party gives the
Innocent Party prompt notice describing the circumstance of Force
Majeure, including the nature of the occurrence and its expected
duration, and continues to furnish regular reports during the period of
Force Majeure;

			
		16.1.3 	the
Non-Performing Party uses all reasonable efforts to remedy its
inability to perform and to mitigate the effects of the circumstance of
Force Majeure; and

			
		16.1.4 	as soon as
practicable after the event which constitutes Force Majeure the Parties
shall discuss how best to continue their operations as far as possible
in accordance with this License Agreement.

		
	16.2 	If Force Majeure is continuing at the expiry
of 3 months either of the Innocent Party may give thirty (30) Business
Days written notice to terminate this License Agreement to the
Non-Performing Party and termination shall occur if the Force Majeure
is continuing at the end of that thirty (30) Business Day notice
period.

		
	17. 	SEVERANCE OF TERMS

		
	17.1 	If the whole or any part of this License
Agreement is or becomes or is declared illegal, invalid or
unenforceable in any jurisdiction for any reason (including both by
reason of the provisions of any legislation and also by reason of any
court or Competent Authority which either has jurisdiction over this
License Agreement or has jurisdiction over either or both of the
Parties):

			
		17.1.1 	in the case of the
illegality, invalidity or un-enforceability of the whole of this
License Agreement it shall terminate only in relation to the
jurisdiction in question; or

			
		17.1.2 	in
the case of the illegality, invalidity or un-enforceability of part of
this License Agreement that part shall be severed from this License
Agreement in the jurisdiction in question and that illegality,
invalidity or un-enforceability shall not in any way whatsoever
prejudice or affect the remaining parts of this License Agreement which
shall continue in full force and effect.

		
	17.2 	If in the reasonable opinion of either Party
any severance under this Clause 17 materially affects the commercial
basis of this License Agreement, the Parties shall discuss, in good
faith, ways to eliminate the material effect.

29

		
	18. 	THIS LICENSE
AGREEMENT NOT TO CONSTITUTE A PARTNERSHIP

		
	18.1 	None of the provisions of this License
Agreement shall be deemed to constitute a partnership between the
Parties and no Party shall have any authority to bind any other Party
in any way except as provided in this License Agreement.

		
	19. 	PUBLIC
STATEMENTS

		
	19.1 	Except as provided in Clause
19.2, neither Party shall, without the prior written consent of the
other Parties:

			
		19.1.1 	use in
advertising, publicly or otherwise, any trade-name, personal name,
trademark, trade device, service mark, symbol, or any abbreviation,
contraction or simulation thereof, owned by another Party (including
for the sake of clarity in relation to LICENSOR);
or

			
		19.1.2 	represent, either directly
or indirectly, that any product or service of another Party is a
product or service of the representing Party or that it is made in
accordance with or utilises the information or documents of another
Party.

		
	19.2 	The restrictions in Clause 19.1
shall not apply to the following:

			
		19.2.1 	a press release, in a form agreed
to in writing by the Parties, publicly announcing this License
Agreement; or

			
		19.2.2 	use as required
by any applicable law or governmental
regulation.

		
	20. 	GOVERNING LAW AND
JURISDICTION

		
	20.1 	The validity, construction
and performance of this License Agreement shall be governed by the laws
of the United Kingdom and any dispute relating to it shall be subject
to the exclusive jurisdiction of the Courts of the United
Kingdom.

30

SCHEDULE
1

LICENSOR existing patents

Austrian
Application

		
	Title: 	***

		
	Appl.
No: 	***

		
	Appl.
Date: 	***

PCT Application

		
	Title: 	***

		
	Appl.
No: 	***

		
	Appl.
Date: 	***

		
	Publ.
No: 	***

EP Application

		
	Title: 	***

		
	Appl.
No: 	***

		
	Appl.
Date 	***

US Application

		
	Title: 	***

		
	Appl.
No: 	***

		
	Appl.
Date: 	***

Canadian Application

		
	Title: 	***

		
	Appl.
No: 	***

		
	Appl.
Date: 	***

	

		***
Confidential

31

SCHEDULE 2

INTENTIONALLY
LEFT BLANK

32

SCHEDULE
3

"Development
Plan"

		
	1. 	An IND or an
equivalent will be filed *** after Clinical Candidate is
identified.

		
	2. 	Phase I clinical trials will
be started *** after the IND or an equivalent is approved. The first
Phase I clinical trial will be completed *** of its initiation.
Completion of the final study report and data analysis will constitute
the end of the trial. Any further Phase I trials will be completed ***
period.

		
	3. 	Phase II clinical trials will be
started *** after the completion of Phase I clinical trials. The first
Phase II clinical trial will be completed *** of its initiation.
Completion of the final study report and data analysis will constitute
the end of the trial. Any further Phase II trials will be completed ***
period.

		
	4. 	4. Phase III clinical trials
will be started ***
after an agreement is reached with FDA (or similar regulatory body) at
the end of Phase II trial meeting.

	

		***
Confidential

33

IN WITNESS WHEREOF this License
Agreement has been executed by duly authorised officers of the Parties
on the date first above written.

		
	Signed
by: 	                                                                              

  

		                                                                              

  

		                                                                              

  

		                                                                              

  

		                                                                              

  

For and on behalf of AUSTRIA
WIRTSCHAFTSSERVICE GESELLSCHAFT M.B.H.

		
	Signed
by: 	                                                                              

		
	Name: 	  

		
	Title: 	     
   

		
	Signed
by: 	                                                                              

		
	Name: 	      

		
	Title: 	      

For and on
behalf of VION PHARMACEUTICALS INC.

		
	Signed
by: 	                                                                              

		
	Name: 	     

		
	Title: 	      

34

SCHEDULE
5

Criteria for "Clinical
Candidate"

1. Potency:
***

2. ***

3. ***

4. ***

5.
***

	

		***
Confidential

35

IN WITNESS WHEREOF this
Agreement has been executed by the duly authorised officers of the
Parties hereto on the day and year first above written.

		
	Signed by: 	  /s/ Johann Hofmann
                11/24/03        

  Prof. Dr.
Johann
Hofmann           Date

		  /s/
Johnny Easmon
                   11/24/03        

  Dr. Johnny Easmon
                      Date

		  /s/
Gottfried Heinisch
              11/24/03        

  Dr.
Gottfried Heinisch
                 Date

		  /s/
Gerhard Pürstinger
             11/24/03        

  Dr.
Gerhard
Pürstinger                 Date

		  /s/
Heinz-Herbert Fiebig
          11/28/03        

  Prof. Dr.
Heinz-Herbert Fiebig    Date

For and on behalf
of AUSTRIA WIRTSCHAFTSSERVICE GESELLSCHAFT M.B.H.

		
	Signed
by: 	  /s/ Peter Takacs
                          11/24/03        

		
	Name: 	  Mag.
Dr. Peter
Takacs                      Date

		
	Title: 	  CEO
Austria Wirtschaftsservice Gesellschaft   m.b.H.

Title:

		
	Signed by: 	  /s/Wilhelm
Hantsch-Linhart      11/24/03        

		
	Name: 	  DI
Dr. Wilhelm
Hantsch-Linhart  Date

		
	Title: 	  Head
Technology & Innovation

For and on behalf of VION
PHARMACEUTICALS, INC

		
	Signed
by: 	  /s/ Howard B.
Johnson              11/24/03        

		
	Name: 	  Howard
B.
Johnson                         Date

		
	Title: 	  CFO

36

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