Document:

Prepared by MerrillDirect

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT,
MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.

EXHIBIT 10.22

RESEARCH
AND TECHNOLOGY AGREEMENT

This
Research and Technology Agreement (the “Agreement”) is made effective as
of  January 24,  2001 (the “Effective Date”) between INTRABIOTICS PHARMACEUTICALS,
INC., a Delaware  corporation, having its principal place of
business in Mountain View, California (hereinafter referred to as
“INTRABIOTICS”), and NEW CHEMICAL ENTITIES, INC.,
a Delaware  corporation having a
principal place of business in Bothell, Washington (hereinafter referred to as
“NCE”).

WHEREAS,
INTRABIOTICS is a biotechnology company involved in the development of products
useful for the treatment of infectious diseases or conditions;

WHEREAS,
NCE has created a collection of proprietary natural products, related drug
discovery libraries and technologies to facilitate lead drug discovery; and

WHEREAS,
the parties wish to collaborate to identify compounds within NCE’s proprietary
drug discovery libraries which have anti-fungal or anti-bacterial activities,
to identify compounds that INTRABIOTICS may develop and commercialize.

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:

1.          DEFINITIONS

             1.1         “Activity”
means a response as measured in a specific drug screen, at a level to be
determined [ * ] in the course of the Research Program.

             1.2         “Confidential
Information” shall have the meaning set forth in Section 7.1.

             1.3         “Disclosing
Party” shall have the meaning set forth in Section 7.1.

             1.4         “Diversity
Library” means NCE’s library of unfractionated natural product extracts as it
exists as of the Effective Date.

             1.5         "Exclusive
Research Program Patents” means all patents and patent applications, both
foreign and domestic, including, without limitation, provisionals, converted
provisionals, continuations, divisionals or continuations in part, (i) covering
Exclusive Research Program Technology; or (ii) that claim methods of making or
isolating a compound(s) within an Identified Compound Family, provided that
such claimed method of making or isolating is limited only to such compound(s).

             1.6         “Exclusive
Research Program Technology” means all information, know-how, trade secrets,
inventions and data made during the course of the parties’ performance under
the Research Program that are directed to a composition, formulation or use of
a compound within an Identified Compound Family.  Exclusive Research Program Technology does not include
information, know-how, trade secrets, inventions or data applicable to methods
of making, separating, or purifying compounds within an Identified Compound
Family.

             1.7         “[ * ]
Product” means the [ * ] Product for which a party has paid to the other party
the royalty payment in Section [ * ].

             1.8         “FTE”
means one (1) full time equivalent research employee of NCE.

             1.9         “Identified
Compound(s)” means (i) a compound(s) that has Activity against a Target, (ii)
that is obtained from a Screening Library and (iii) the chemical structure of
which INTRABIOTICS requests in writing that NCE identify pursuant to this Agreement.

             1.10       “Identified
Compound Family” means an Identified Compound and all [ * ] as determined by
the Research Committee according to the procedure set forth in Appendix B, and
mutually agreed to in writing by both parties.

             1.11       “Material”
means microorganism cultures or strains provided to INTRABIOTICS pursuant to
Section 3.10.

             1.12       “NCE
Patents” means all patents and patent applications, both foreign and domestic
including without limitation, provisionals, converted provisionals,
continuations, divisionals or continuations in part covering NCE Technology.

             1.13       "NCE
Research Program Patents" means all patents and patent applications, both
foreign and domestic, including, without limitation, provisionals, converted
provisionals, continuations, divisionals or continuations in part, covering NCE
Research Program Technology.

             1.14       "NCE
Research Program Technology" means all information, know-how, trade
secrets, inventions and data that are made during the course of the parties’
performance under the Research Program that are not Exclusive Research Program
Technology.

             1.15       “NCE
Technology” means and includes technology, data, information, know-how and
inventions, in each case that is useful for producing or isolating a compound
within an Identified Compound Family and that was owned by NCE prior to the
Effective Date.

             1.16       “Net
Sales”means the gross
amount invoiced by INTRABIOTICS for the sale to a third party of Product in
finished form by INTRABIOTICS, its affiliates or its sublicensees, as
applicable, less the following deductions:

                                    
    (i)                       Amounts repaid or credited by reason of timely
rejections, returns or recalls;

                                    
    (ii)                      Taxes, excises or other governmental charges
upon or measured by the production, sale, transportation, delivery or use of
goods;

                                      
  (iii)                     Transportation and delivery charges actually
incurred and separately included as an item in the invoice, or as verified by
other documentation including shipping insurance and packing costs;

                                    
    (iv)                     Normal and customary trade, cash and quantity
discounts and allowances granted to third parties, including mandatory rebates
to governmental agencies; and

                                    
    (v)                      Third Party royalties owed with respect to
Product.

             For any Products sold in combination with another
product (“Combination Products”), where amounts received by INTRABIOTICS are
attributable to sales of such Combination Products, then Net Sales will be
calculated for such combination product by multiplying the actual Net Sales of
such combination product [ * ].  If, on
a country-by-country basis, the Combination Products in the combination are not
sold separately in said country, Net Sales for the purpose of determining
royalties of the combination product shall be calculated by multiplying actual
Net Sales of such combination product by [ * ].  If, on a country-by-country basis, neither the Product nor the
Combination Products included in the combination product is sold separately in
said country, Net Sales for the purposes of determining royalties of the
combination product shall be determined by the parties in good faith on the
basis of respective fair market values.

             1.17       "Other
Product" means a Product for use in the Product Field that is not a
Screening Product.

             1.18      
“Premium Library” means NCE’s library of fractionated natural products extracts
as it exists as of the Effective Date.

             1.19       “Product”
means a product that is or includes a compound within an Identified Compound
Family(s) in all formulations and for all uses.

             1.20       “Product
Field” means any diagnostic, preventive or therapeutic application.

             1.21       “Receiving
Party” shall have the meaning set forth in Section 7.1.

             1.22       “Requested
Unavailable Compound(s)” shall have the meaning set forth in Section 2.7.

             1.23       “Research
Program” means the work to be performed pursuant to the plan set forth in
Appendix B, by INTRABIOTICS, and by NCE in identifying the chemical structure
of Identified Compound(s) that is paid for by INTRABIOTICS. 

             1.24       "Research
Term" means the initial [ * ] term of the Research Program or any
extension thereof agreed to by the parties in writing.

             1.25       “Screening
Data” means the data resulting or derived from the screening of the libraries
by INTRABIOTICS, including but not limited to the data describing the specific
Activity of each of the samples of interest to INTRABIOTICS, including [ * ].

             1.26       “Screening
Field” means the identification of compounds having anti-bacterial or
anti-fungal properties.

             1.27       “Screening
Libraries” means individually and collectively the Diversity Library and
Premium Library.

             1.28       "Screening
Product" means a Product for use as an anti-bacterial agent or anti-fungal
agent in each case in the Product Field.

             1.29       “Successive
Products” means all Products for which a party makes the royalty payment set
forth in Section 5.6 after it has made such payment for the [ * ] Product.

             1.30       “Target”
means INTRABIOTICS’ targets of interest as listed in Appendix B, as may be
amended from time to time by INTRABIOTICS during the Research Program.

             1.31       “Technology
Access Fee” shall have the meaning set forth in Section 5.2.

             1.32       “[ * ]”
means the [ * ] Product for which a party makes the royalty payment set forth
in Section [ * ].

2.          SCREENING LIBRARIES

             2.1         Upon
INTRABIOTICS’ request, NCE shall supply to INTRABIOTICS one (1) aliquot, [ * ]
of no less than the equivalent of [ * ] of the original [ * ] or [ * ] of each
sample, [ * ] in the Screening Libraries, at NCE’s expense, in accordance with
Appendix A.

             2.2         INTRABIOTICS
agrees that all right, title and interest in and to the Screening Libraries
shall be vested in NCE.  NCE shall be
free to provide the Screening Libraries to third parties for screening purposes
both inside and outside the Screening Field.

             2.3         INTRABIOTICS
agrees that the Screening Libraries: (i) will be maintained and used by
INTRABIOTICS only at the sites designated in Appendix C; (ii) will not be
transferred to any other location; (iii) will only be used by employees of
INTRABIOTICS, or its permitted sublicensees and those consultants of
INTRABIOTICS who agree to be bound by the terms and conditions of this
Agreement including but not limited to this Section 2.3 listed in Appendix C,
who will require access thereto for the performance of this Agreement; (iv)
will only be used for screening against the Targets and for no other purpose,
with such use permitted only during the [ * ] period following the date that
the relevant Screening Library is received by INTRABIOTICS; (v) that
INTRABIOTICS will not attempt to identify any of the components contained in
the Screening Libraries except as expressly permitted in Section 2.5 with
respect to [ * ]; and (vi) will not be transferred to any third party
except in connection with a sublicense pursuant to Section 4.1.  INTRABIOTICS may, in its sole discretion,
amend Appendix B from time to time to add targets to the Target list.

             2.4         In the
event that INTRABIOTICS uses the Screening Libraries for any purpose not
permitted under this Agreement, in addition to any other remedies NCE may have,
NCE may cause INTRABIOTICS to (i) assign to NCE all right, title and interest
to all intellectual property arising from such use (except to the extent such
intellectual property would also cover a permitted use) and (ii) execute those
documents as requested by NCE necessary to document and/or perfect the
assignment of such intellectual property.

             2.5         INTRABIOTICS
shall have the right to conduct [ * ] studies of the samples contained in the
Screening Libraries, solely in order to identify a [ * ] of such sample likely
to demonstrate Activity. Such studies will not include attempts to identify the
chemical structures of any components of any such [ * ].  INTRABIOTICS and its designees’ rights to
such [ * ] and such [ * ] methods shall be used solely for the benefit of
INTRABIOTICS or NCE, as applicable, under this Agreement.

             2.6         In the
event that INTRABIOTICS desires to isolate and/or identify the chemical
structure of a  compound within a
Screening Library, INTRABIOTICS agrees, except to the extent permitted under
under Section 2.5,  that it will not attempt
to perform such separation and or identification itself, and will not request
any person or entity other than NCE to perform such separation or
identification.

             2.7         Should
INTRABIOTICS [ * ] the Screening Libraries which exhibit the relevant Activity,
and should INTRABIOTICS desire to learn the chemical structure of the compound
exhibiting such Activity, INTRABIOTICS may, at its election and in its sole
discretion, request in writing that NCE disclose to INTRABIOTICS the chemical
structure of such compound (which shall be known thereafter as an Identified
Compound). INTRABIOTICS shall provide NCE with all Screening Data which it has
accumulated regarding such [ * ] in electronic format. NCE shall conduct
statistical analyses of the Screening Data provided by INTRABIOTICS and perform
such other work as necessary to determine the chemical structure of the
Identified Compound. NCE shall conduct these analyses under a mutually agreed
timetable established after the submission of such Screening Data by INTRABIOTICS.
Both parties acknowledge that [ * ]. 
Promptly following identification by NCE of the structure of the
Identified Compound, NCE shall provide INTRABIOTICS with the chemical structure
of the Identified Compound and the relevant underlying data and statistical
analysis that NCE relied on in making such determination (the “Written
Materials”), and INTRABIOTICS shall have thirty (30) days from receipt of such
chemical structure and Written Materials to accept the licenses set forth in
Article 3 with respect to the relevant Identified Compound Family in accordance
with the procedures set forth in Section 3.2. 
INTRABIOTICS shall reimburse NCE as described in Sections 2.8 and 2.9
for the work performed in conducting such data analysis.  If NCE has granted rights to the compound of
interest to a third party prior to identifying the chemical structure of such
compound for INTRABIOTICS, such compound shall be designated “Requested
Unavailable Compound(s).”  If at any time
during the term of this Agreement, NCE is able to grant to INTRABIOTICS a
license to any or all of such Requested Unavailable Compound(s), NCE shall so
notify INTRABIOTICS in writing and such Requested Unavailable Compounds shall
be deemed Identified Compounds under this Agreement if the parties mutually
agree to the terms of a license.

             2.8         NCE
agrees to commit the personnel, facilities, expertise and other resources
reasonably necessary to perform its responsibilities under the Research
Program. During each year of the Research Program, NCE will, at INTRABIOTICS’ expense in accordance
with Section 2.9, maintain a minimum of [ * ] and a maximum of [ * ] devoted to
performing NCE’s responsibilities under the Research Program, each of whom
shall be appropriately qualified to perform such work.  The number of FTEs allocated by NCE shall be
set forth in Appendix B, as amended from time to time by mutual consent of the
parties.  In addition, from time to time, upon the
parties’ mutual agreement, NCE will maintain at INTRABIOTICS’ cost additional FTEs in excess of [ * ]
committed to performance of work under the Research Program.  In the first year, INTRABIOTICS agrees to
fund [ * ] at NCE under the Research Program.

             2.9         INTRABIOTICS agrees to pay NCE research
funding based on the number of FTEs of NCE involved in performing research
activities under the Research Program, both during the initial [ * ] term
thereof and any extensions to which the Parties may agree, as determined under
Section 2.8. For each such FTE, INTRABIOTICS
shall pay NCE at an annualized rate of [ * ] per FTE, per year.  [ * ].

             2.10       INTRABIOTICS
acknowledges that the Screening Libraries and [ * ] thereof, as well as
Identified Compounds, are experimental products of unknown toxicity and hazard,
and are furnished solely for research purposes.  During the term of this Agreement, NCE shall inform INTRABIOTICS
of any actual or potential toxicity or other possible hazardous property or
handling condition related to the Screening Libraries and parts thereof, as
well as Identified Compounds, which are known to NCE.  INTRABIOTICS agrees to take all reasonable precautions and
conform with all applicable local regulations in the handling, storage, use and
disposal of the Screening Libraries and parts thereof, as well as Identified
Compounds.

             2.11       The
parties agree to cooperate with each other with respect to the Research
Program.

             2.12       NCE
agrees to provide to INTRABIOTICS technical information available to NCE that
is reasonably requested by INTRABIOTICS to enable INTRABIOTICS to use the Screening
Libraries for screening against Targets during the Research Term as permitted
by this Agreement and INTRABIOTICS shall have the right to use such technical
information for such purpose.

3.          CLINICAL AND COMMERCIAL LICENSES.

             3.1         Subject
to the terms and conditions of this Agreement, NCE grants to INTRABIOTICS:

                           (i)          a
worldwide exclusive license, with the right to sublicense, under Exclusive
Research Program Patents and Exclusive Research Program Technology to conduct
research and development with respect to, and to make, have made, use, sell,
offer to sell and import Product for use in the Product Field;

                           (ii)         a
worldwide non-exclusive license, with the right to sublicense,  under NCE Research Program Patents, NCE
Research Program Technology, NCE Technology and NCE Patents to make and have
made Product, in research quantities as permitted under Section 3.8, and under
then-current GMP conditions to support the clinical program and for
commercialization of such Product.

             3.2         Commencing
upon receipt by INTRABIOTICS, pursuant to Section 2.7, of (i) the chemical
structure of the relevant Identified Compound and (ii) written notice that
rights to such Identified Compound are available for license, INTRABIOTICS
shall have thirty (30) days in which to accept the licenses set forth in
Section 3.1 with respect to the relevant Identified Compound Family and pay the
sum due pursuant to Section 5.4, and such licenses shall be effective upon the
date such sum is paid to NCE. 
INTRABIOTICS acknowledges and agrees that if INTRABIOTICS fails to make
the payment required under Section 5.4 when due, it shall have no further right
to obtain such license with respect to the relevant Identified Compound Family.

             3.3         INTRABIOTICS
shall make reasonable commercial efforts to develop and commercialize
Products.  In the event that
INTRABIOTICS, in its sole discretion, is not interested in pursuing research,
development and commercialization of at least one compound within an Identified
Compound Family, INTRABIOTICS shall notify NCE thereof in writing.  If requested by NCE, INTRABIOTICS shall
grant to NCE a worldwide exclusive sublicense (with the right to further
sublicense) under the Exclusive Research Program Patents, and Exclusive Research
Program Technology, each to the extent they are directed to such abandoned
Identified Compound Family, to make, have made, use, sell, offer to sell and
import Product, and NCE shall pay to INTRABIOTICS all future milestone payments
and royalties that would have been paid by INTRABIOTICS to NCE under Section
5.5 with respect to such Product. 
INTRABIOTICS shall provide to NCE all records and files related to any
patents required to be licensed to NCE pursuant to this Section 3.3, and shall
execute such documents and reasonably cooperate with NCE as may be necessary to
perfect and maintain such patent protection or term extension.  NCE shall promptly reimburse INTRABIOTICS
for all reasonable expenses that INTRABIOTICS incurs in connection with
rendering this assistance.  Effective on
the date of grant from INTRABIOTICS, NCE shall assume all responsibility for
prosecuting, maintaining and defending, at NCE’s cost and expense, the relevant
Exclusive Research Program Patent(s).

             3.4         At the
request of NCE, INTRABIOTICS shall actively and in a timely fashion and using
reasonable efforts consider granting to NCE a worldwide, exclusive sublicense
under the relevant Exclusive Research Program Technology and Exclusive Research
Program Patents, to make, have made, use, sell, offer to sell and import one or
more Other Products for the purpose of granting a further sublicense to a third
party.  The decision to grant a
sublicense shall be at INTRABIOTICS sole discretion. In such event, NCE shall
pay to INTRABIOTICS [ * ] of the sublicense and milestone fees and royalties
received by NCE for and under such sublicense.

             3.5         (a)         During the Research Term, NCE shall
retain, consistent with its usual commercial practices, all microbial cultures
from which the samples, [ * ] provided to INTRABIOTICS were fermented or otherwise
obtained or derived.

                           (b)        At
the written request of INTRABIOTICS, NCE shall identify, maintain and retain in
the possession of NCE the microbial culture that produces an Identified
Compound or Identified Compound Family specified in such writing by
INTRABIOTICS to the extent that such microbial culture is within the possession
and control of NCE at the time of the request, using commercially reasonable
efforts to maintain viability of each such culture.  Subject to Section 3.5(a), NCE shall not be obligated to retain
more than [ * ] microbial cultures under this Section 3.5(b).  Where required for the filing or granting of
an Exclusive Research Program Patent pursuant to this Agreement, as reasonably
determined by counsel for INTRABIOTICS, NCE will cooperate with INTRABIOTICS in
the required deposit of the producing culture with ATCC or such other mutually
acceptable depository.   INTRABIOTICS
shall be responsible for all fees and expenses charged by the depository.

             3.6         INTRABIOTICS
shall make payment to NCE for each microbial culture that is retained by NCE
pursuant to Section 3.5(b), as follows:

             (i)          [ * ]
per year for the first culture and [ *
] per year for each additional culture.

             (ii)         The
amount of Section 3.6(i) shall be paid for each culture at the time of the
request and shall be prorated as appropriate for the balance of the calendar
year in which the request is made.  For
each additional calendar year the applicable amount shall be due and payable on
the first business day of the calendar year.

             3.7         NCE
shall have the right to supply to INTRABIOTICS compounds of an Identified
Compound Family for research purposes at the FTE rate set forth in Section
2.9.  INTRABIOTICS agrees to purchase
all of INTRABIOTICS’ research requirements of compounds within an Identified
Compound Family that NCE is willing to supply except those quantities of
compounds that can be made using synthetic methods, and shall make all orders
of compounds in writing, specifying quantity and delivery dates.  Not later than thirty (30) days after the
date of such written order, NCE shall confirm in writing the quantity of
compound that it will supply and the delivery dates.

             3.8         INTRABIOTICS
shall have the right to produce or to obtain from a third party such quantities
of compound that NCE does not confirm it will supply on the requested
reasonable delivery dates, or that, despite confirmation of INTRABIOTICS’
order, NCE does not deliver on the requested delivery date or such other
delivery date as is mutually agreed upon.

             3.9         Upon
written request of INTRABIOTICS to NCE, if available to NCE, NCE shall provide
to INTRABIOTICS a microbial culture that produces the compound within the
Identified Compound Family that is or is included in a Product under
development by INTRABIOTICS (the “Commercial Product”). INTRABIOTICS shall pay
NCE [ * ] concurrent with the delivery of such written request.

             3.10       INTRABIOTICS
shall have the right to use the culture for making and having made the
Commercial Product under then-current GMP conditions for clinical and
commercial uses and INTRABIOTICS agrees to use such culture obtained pursuant
to Section 3.10 only for such purposes as are permitted under the non-exclusive
license grant set forth in Section 3.1(ii) and only for the period that INTRABIOTICS
retains a license under this Agreement for such Commercial Product.

             3.11       INTRABIOTICS
agrees that INTRABIOTICS will use NCE Technology, NCE Research Program
Technology and Exclusive Research Program Technology only as licensed under
this Agreement and only for the period of the license grant.

4.          RESEARCH LICENSE

             4.1         NCE
hereby grants to INTRABIOTICS a non-exclusive, worldwide, royalty-free license,
with the right to grant sublicenses to the third party contractors named in
Appendix C, to use the Screening Libraries in the Screening Field to conduct
the Research Program in accordance with this Agreement.

             4.2         INTRABIOTICS
shall have the right to have such screening performed by the contractors listed
in Appendix C, provided that such contractors agree in writing to be bound by
the terms and conditions of this Agreement with respect to use of the Screening
Libraries including, but not limited to, Section 2.3.  The screening work performed by such contractors shall be
considered work performed by INTRABIOTICS for the purposes of this Agreement,

             4.3         No
licenses, other than those expressly granted in this Agreement, whether express
or implied, are granted by this Agreement.

5.          FEES

             5.1         INTRABIOTICS
agrees to pay to NCE an initial payment of [ * ] payable upon the Effective
Date.

             5.2         INTRABIOTICS
shall pay to NCE a “Technology Access Fee” of [ * ] which shall be due and
payable in [ * ] due each quarter. The first such installment shall be due upon
the Effective Date and each of the following [ * ] payments shall be due on the
first day of each calendar quarter following the first calendar quarter of
2001.  [ * ].

             5.3         In the
event that this Agreement is terminated for any reason other than breach by
NCE, any portion of the Technology Access Fee that has not been paid, shall
become immediately due and payable.

             5.4         (a)         INTRABIOTICS shall pay to NCE the
following payments:

i.                         [
* ] payable with respect to the [ * ] within [ * ] after NCE provides to
INTRABIOTICS the structure of the [ * ] and notifies INTRABIOTICS in writing
that NCE has not granted rights to a third party with respect to such [ * ].

ii.                        [
* ] payable with respect to [ * ] after NCE provides to INTRABIOTICS the
structure of [ * ] and notifies INTRABIOTICS in writing that NCE has not granted
rights to a third party with respect to such [ * ].

             5.5         INTRABIOTICS
shall pay to NCE the following payments not later than [ * ] after the
achievement of the corresponding milestone event:

             i.                    
     [ * ]*

             ii.                        [
* ]*

             iii.                       [ * ]*

             iv.                       
[ * ]**

             *           [ * ]

             **
        [ * ]

             Each party acknowledges that although INTRABIOTICS
desires to develop several Products under this Agreement, there is no guarantee
that INTRABIOTICS will be able to develop any Products under this Agreement.

             [ * ].

             5.6         Subject
to Section 5.8, INTRABIOTICS will pay to NCE royalty payments of (i) [ * ] of
Net Sales of the [ * ], and (ii) [ * ] of Net Sales of the [ * ].

             i.                       
  If
[ * ] is a [ * ] product then the royalty payment owed shall be reduced by [ *
]

             ii.                        The

parties shall each keep complete and accurate records pertaining to the sale or
other disposition of all Products for which royalty payments are due hereunder
and the royalty payments and other amounts payable under this Agreement in
sufficient detail to permit the receiving party to confirm the accuracy of all
payments due hereunder.  The receiving
party shall have the right to cause an independent, certified public accountant
to audit such records to confirm the paying party’s or its licensee’s Net Sales
as reported hereunder and royalty payments for the preceding year.  Such audit rights may be exercised no more
often than once a year, within three (3) years after the calendar quarter to
which such records relate, upon reasonable notice to the party whose records
are being audited and during normal business hours.  The party conducting the audit will bear the full cost of such
audit unless such audit discloses an underpayment of more than ten percent
(10%) from the amount of royalty payments due. 
In such case, the audited party shall bear the full cost of such
audit.  Within thirty (30) days of the
completion of such audit, the audited party shall pay to the other party the
amount of any underpayment disclosed in such audit.  The terms of this Section 5.6 shall survive any termination or
expiration or termination of this Agreement for a period of three (3) years.

             5.7         INTRABIOTICS
agrees that INTRABIOTICS will not research, develop, make, use or sell
Identified Compound and/or Product without making the payments of Sections 5.2
and 5.4 of this Agreement.

             5.8         In the
event that INTRABIOTICS grants a license to a third party to make, have made,
use, import, offer for sale or sell Other Product, then INTRABIOTICS shall pay
to NCE the greater of (i) [ * ] of the license and milestone fees and royalties
received by INTRABIOTICS for and under such license or (ii) the amounts [ * ]
from INTRABIOTICS with respect to such Other Product under [ * ].

             5.9         The
royalty obligations under Section 5.6 shall expire on a Product-by-Product and
country-by-country basis on the later of (i) ten (10) years from the date of
first commercial sale of a royalty-bearing Product in the relevant country or
(ii) the expiration of the last to expire Exclusive Research Program Patent
covering the Product in such country.

6.          INTELLECTUAL PROPERTY

             6.1         Inventorship
of any inventions arising out of the Research Program shall be determined
according to U.S. patent law.  NCE shall
own all right, title and interest in the NCE Research Program Patents,
Exclusive Research Program Patents, Exclusive Research Program Technology and
NCE Research Program Technology in each case, regardless of inventorship.  INTRABIOTICS shall own all Screening Data
and all intellectual property rights related thereto.

             6.2         Each
party shall continue to own all intellectual property owned by such party prior
to the Effective Date.

             6.3         Except
as provided in this Section 6, each party shall file, prosecute, defend and
maintain, at its sole discretion and expense, any and all patent applications and
patents covering technology owned by such party.

             6.4         INTRABIOTICS
shall have the right to file, prosecute, maintain and defend, at the cost and
expense of INTRABIOTICS and with counsel selected by INTRABIOTICS, the
Exclusive Research Program Patents.

             6.5         Both
parties shall cooperate as necessary to effect the intentions of this Section 6
including, without limitation:

                           (a) 
executing all papers and instruments, or using reasonable efforts to
cause its employees or agents to execute such papers and instruments, so as to
effectuate the ownership of intellectual property rights set forth in this
Section 6 and to enable the other party to file and to prosecute patent
applications and to maintain patents in any country;

                           (b) 
effecting any required microorganism or other biological deposits to
support the Exclusive Research Program Patents, as reasonably determined by
counsel for INTRABIOTICS;

                           (c) 
promptly informing the other party of any matters coming to such party’s
attention that may affect the preparation, filing or prosecution or maintenance
of any NCE Research Program Patents and Exclusive Research Program Patents; and

                           (d) 
undertaking no actions that are potentially deleterious to the
preparation, filing, prosecution or maintenance of NCE Research Program Patents
and Exclusive Research Program Patents.

             6.6         If
INTRABIOTICS elects (i) to abandon a granted Exclusive Research Program Patent
or (ii) not to file an application for patent protection with respect to
Exclusive Research Program Technology or (iii) to abandon a filed Exclusive
Research Program Patent without refiling thereof, INTRABIOTICS shall provide to
NCE reasonable notice thereof in writing, and NCE, at its option, shall have
the right to maintain, file and prosecute any such Exclusive Research Program
Patents at the cost and expense of NCE, with the consent of INTRABIOTICS, which
shall not be unreasonably withheld. 
INTRABIOTICS shall retain INTRABIOTICS’ license under any such Exclusive
Research Program Patents.

             6.7         Each
party shall promptly notify the other party in writing of any alleged or
threatened infringement of the NCE Research Program Patents or Exclusive
Research Program Patents of which it becomes aware and provide any information
available to that party relating to such infringement.

             6.8         INTRABIOTICS
shall have the right and option, but not the obligation, to bring and control,
by counsel of its own choice and at its own expense, any action or proceeding
with respect to third party infringement of any Exclusive Research Program
Patents that are either issued at the time of commencement of, or issue during
the pendency of, any such action or proceeding, and under which NCE has granted
a license to INTRABIOTICS.  Upon written
notice to NCE, INTRABIOTICS may require NCE to participate in such action as a
necessary party, at INTRABIOTICS’s expense. 
No settlement, consent judgment or other voluntary final disposition of
the action which adversely affects any Exclusive Research Program Patent may be
entered into without the consent of NCE, which consent shall not unreasonably
be withheld.  Any recovery of damages by
INTRABIOTICS for any such action shall be retained by INTRABIOTICS.

7.          CONFIDENTIALITY

             7.1         “Confidential
Information” shall mean any technical or business information furnished by one
party (the “Disclosing Party”) to the other party (the “Receiving Party”) in
connection with this Agreement, whether orally or in writing.  Such Confidential Information shall include,
without limitation, the existence and terms of this Agreement (which shall be
Confidential Information of both parties), trade secrets, know-how, inventions,
technical data or specifications, testing methods, business or financial
information, research and development activities, product and marketing plans,
and customer and supplier information, including, but not limited to, such
items that become known to a party during visits to the facilities of the other
party. The Screening Data shall be deemed INTRABIOTICS’ Confidential
Information.

             7.2         The
Receiving Party agrees that it shall:

                           (a)         
             Maintain
all Confidential Information and Material in strict confidence, except that the
Receiving Party may disclose or permit the disclosure of any Confidential
Information and Material to its affiliates, directors, officers, employees,
consultants, advisors and contractors listed in Appendix C and commercial and
clinical manufacturers of Product covered by Exclusive Research Program Patents
or Exclusive Research Program Technology licensed to INTRABIOTICS who are obligated
to maintain the confidential nature of such Confidential Information and who
need to know such Confidential Information and Material for the purposes set
forth in this Agreement;

                           (b)         
             Use
all Confidential Information and Material solely for the purposes set forth in,
or as permitted by, this Agreement; and

                           (c)         
             Allow
its affiliates, directors, officers, employees, consultants and advisors to
reproduce the Confidential Information and Material only to the extent
necessary to effect the purposes set forth in this Agreement, with all such
reproductions being considered Confidential Information and Material.

             7.3         Each
party shall be responsible for any breaches of Section 7.2. by any of its
affiliates, directors, officers, employees, consultants , advisors and
contractors. Each party will require those of its affiliates, directors,
officers, employees, consultants, advisors and contractors who have access to
the Confidential Information and Material be bound by written agreement to the
confidentiality obligations and use restrictions herein.

             7.4         The
obligations of the Receiving Party under Section 7.2. above shall not apply to
any portion of the Disclosing Party’s Confidential Information to the extent
that the Receiving Party can demonstrate by competent proof that such
Confidential Information:

                           (a)         
             Was
generally known to the public or otherwise part of the public domain prior to
the time of its disclosure under this Agreement;

                           (b)         
             Entered
the public domain after the time of its disclosure under this Agreement through
means other than an unauthorized disclosure resulting from an act or omission
by the Receiving Party or its affiliates, directors, officers, employees,
consultants, advisors, agents and contractors;

                           (c)         
             Was
already known to the Receiving Party, other than under an obligation of
confidentiality, at the time of disclosure by the Disclosing Party;

                           (d)         
             Is
or was disclosed to the Receiving Party at any time, whether prior to or after
the time of its disclosure under this Agreement, by a third party having no
fiduciary relationship with the Disclosing Party and having no obligation of
confidentiality to the Disclosing Party with respect to such Confidential
Information; or,

                           (e)         
             Is
required to be disclosed to comply with applicable laws or regulations (such as
disclosure to the United States Securities and Exchange Commission, the United
States Environmental Protection Agency, the United States Food and Drug
Administration, or the United States Patent and Trademark Office or to their
foreign equivalents), or to comply with a court or administrative order,
provided that the Disclosing Party receives prior written notice of such
disclosure and that the Receiving Party takes all reasonable and lawful actions
to obtain confidential treatment for such disclosure and, if reasonably
possible, to minimize the extent of such disclosure.

             7.5         The obligations set forth in this Article
7 shall remain in effect after termination or expiration of this Agreement for
a period of ten (10) years.

8.          INDEMNIFICATION

             8.1         INTRABIOTICS
shall defend, indemnify and hold NCE and its directors, officers, employees,
shareholders and agents, harmless from and against any and all third party
claims, suits or demands for liabilities, damages, losses, costs and expenses
(including the reasonable fees of attorneys and other professionals) arising
out of or resulting from (i) the development, manufacture, use, distribution or
sale of any Product by INTRABIOTICS, its affiliates, distributors,
co-marketers, licensees or sublicensees or any person or entity that prepares
or manufactures  Product for or on
behalf of any of the foregoing or any person or entity who receives or obtains
(directly or indirectly)  Product from
any of the foregoing, (ii) any breach of Section 10 of this Agreement, (iii)
INTRABIOTICS’ use of the Screening Libraries (except to the extent arising from
third party claims of infringement of intellectual property rights related to
the Screening Libraries), and/or (iv) the breach by a subcontractor listed in
Appendix C of any term of this Agreement. 
Such obligation shall not apply to those losses which arise out of the
negligence or intentional misconduct of NCE.

             8.2         NCE
shall defend, indemnify and hold INTRABIOTICS and its directors, officers, employees,
shareholders and agents, harmless from and against any and all third party
claims, suits or demands for liabilities, damages, losses, costs and expenses
(including the reasonable fees of attorneys and other professionals) arising
out of or resulting from (i) any breach of Section 10 of this Agreement, and/or
(ii) the development, manufacture, use, distribution or sale of any Product by
NCE, its affiliates, distributors, co-marketers or sublicensees or any person
or entity that prepares or manufactures 
Product for or on behalf of any of the foregoing or any person or entity
who receives or obtains (directly or indirectly)  Product from any of the foregoing.  Such obligation shall not apply to those losses which arise out
of the negligence or intentional misconduct of INTRABIOTICS.

             8.3         A
person or entity that intends to claim indemnification under this Section (the
“Indemnitee”) shall promptly notify the other party (the “Indemnitor”) of any
loss, claim, damage, liability or action in respect of which the Indemnitee
intends to claim such indemnification, and the Indemnitor shall assume the
defense thereof with counsel mutually satisfactory to the Indemnitee whether or
not such claim is rightfully brought; provided, however, that an Indemnitee
shall have the right to retain its own counsel, with the reasonable fees and
expenses to be paid by the Indemnitor if Indemnitor does not assume the
defense, or if representation of such Indemnitee by the counsel retained by the
Indemnitor would be inappropriate due to actual or potential differing
interests between such Indemnitee and any other person represented by such
counsel in such proceedings. The indemnity agreement in this Section shall not
apply to amounts paid in settlement of any loss, claim, damage, liability or
action if such settlement is effected without the consent of the Indemnitor,
which consent shall not be withheld or delayed unreasonably. The Indemnitor
shall not settle any claim to be indemnified that could adversely affect the
Indemnitee without the consent of the Indemnitee, which consent shall not be
unreasonably withheld. The failure to deliver notice to the Indemnitor within a
reasonable time after the commencement of any such action, only if prejudicial
to its ability to defend such action, shall relieve such Indemnitor of any
liability to the Indemnitee under this Section. The Indemnitee under this
Section, its employees and agents, shall cooperate fully with the Indemnitor
and its legal representatives in the investigations of any action, claim or
liability covered by this indemnification.

9.          TERMINATION

             9.1         (a)         This Agreement shall commence as of the
Effective Date and, unless sooner terminated as provided hereunder, shall
terminate when neither party has any remaining payment obligations to the other
party under this Agreement (i.e., upon the date that both parties have ceased
to research, develop and commercialize Products);

                           (b)        When
a party has made all of the payments required by this Agreement with respect to
a Product, such party shall have a fully paid up license to make, have made,
use, import, offer for sale or sell such Product that shall survive termination
of this Agreement.

             9.2         INTRABIOTICS
may terminate this Agreement at will effective no earlier than [ * ] by
providing NCE with [ * ] months prior written notice.

             9.3         Breach.

                           (a)         Failure
by either party to comply with any of its material obligations contained in
this Agreement shall entitle the other party to give to the party in default
notice specifying the nature of the default and requiring it to cure such
default. If such default is not cured within sixty (60) days (thirty (30) days
in the event of a default with respect to an obligation to pay money) after the
receipt of such notice, the notifying party shall be entitled, without
prejudice to any of its other rights conferred on it by this Agreement, and in
addition to any other remedies available to it by law or in equity, to
terminate this Agreement in its entirety, by giving written notice to take
effect immediately upon delivery of such notice. The right of either party to
terminate this Agreement, as provided in this Section 9.3, shall not be
affected in any way by its waiver or failure to take action with respect to any
previous default.

                           (b)        An
election of remedy by a party for a material breach of this Agreement under
this Section 9.3 on one occasion shall not constitute a waiver as to any other
remedy that may be available to such party under this Section 9.3 as to any
material breach on another occasion.

             9.4         The
following sections shall survive termination of this Agreement:   2.2, 2.3, 2.4, 2.6, 3.11, 5.3, 5.6 (ii),
5.7, 6.1, 6.2, 6.3, 6.5, 9.1(b), 9.4 and 10.4, and Articles 7, 8, 11 and 12.

             9.5         Upon
the earlier of termination of this Agreement or termination of the Research
Program, INTRABIOTICS shall return all Screening Libraries to NCE.

10.                      REPRESENTATIONS AND WARRANTIES

             10.1       Mutual
Representations and Warranties

             Each party represents to the other that:

                           (a)         Such
party is duly organized and validly existing under the laws of the state or
country of its incorporation and has full corporate power and authority to
enter into this Agreement and to carry out the provisions hereof;

                           (b)        Such
party is duly authorized to execute and deliver this Agreement and to perform
its obligations hereunder;

                           (c)         This
Agreement is a legal and valid obligation binding upon it and enforceable in
accordance with its terms. The execution, delivery and performance of this
Agreement by such party does not conflict with any agreement, instrument or
understanding, oral or written, to which it is a party or by which it may be
bound, nor violate any law or regulation of any court, governmental body or
administrative or other agency having jurisdiction over it;

                           (d)        It
has not entered into any agreement with any third party which is in conflict
with the rights granted to the other party under this Agreement, and shall not
have taken any action that would in any way prevent it from granting the rights
granted to the other party under this Agreement, or that would otherwise
materially conflict with or adversely affect the rights granted to the other
party under this Agreement. and

             10.2       INTRABIOTICS
further represents and warrants to NCE that as of the Effective Date, without
having made an investigation, INTRABIOTICS has no actual knowledge that the
screening procedures that are to be used by INTRABIOTICS under this Agreement
infringes the intellectual property rights of a third party.

             10.3       NCE
further represents and warrants to  INTRABIOTICS
that:

                           (a)         All
information provided to INTRABIOTICS with respect to its ownership rights with
regard to Identified Compounds, and Products, and related intellectual property
rights, shall, to its knowledge, but without obligation to investigate, be
complete and accurate.

                           (b)        As
of the Effective Date, NCE has not received any notices of infringement or
misappropriation or any written communications relating in any way to a
possible infringement or misappropriation with respect to the use of the
Screening Libraries, and without having made an investigation it has no
knowledge that the use of the Screening Libraries as contemplated by this
Agreement will or may involve any infringement or unauthorized use of any
intellectual property rights of any third party;

                           (c)         To
the best of NCE’s knowledge, as of the Effective Date, NCE owns the Screening
Libraries that are to be provided to INTRABIOTICS under this Agreement and has
the right to grant the license thereto that is granted to INTRABIOTICS under
this Agreement.

                           (d)        To
the best of its knowledge, but without the obligation to investigate, as of the
Effective Date, NCE has no actual knowledge that any data or information given
to INTRABIOTICS relating to the Screening Libraries is untrue or inaccurate in
any material respect; and

                           (e)         As
of the Effective Date, without having made an investigation, NCE has no actual
knowledge that the Screening Libraries that are to be provided to INTRABIOTICS
under this Agreement or that the procedures that NCE plans to use for
identifying compounds under this Agreement infringes the intellectual property
rights of a third party.

                           (f)         NCE
will not grant to INTRABIOTICS a license in accordance with Sections 3.1 and
3.2 of this Agreement unless NCE has the right to grant to INTRABIOTICS such a
license.

             10.4       Each
party will follow good scientific practices in the performance of its duties
pursuant to this Agreement.  HOWEVER,
THE WORK TO BE PERFORMED HEREIN IS EXPERIMENTAL AND EACH PARTY EXPRESSLY
DISCLAIMS ANY STATED OR IMPLIED WARRANTIES OF PATENTABILITY, MERCHANTABILITY,
OR FITNESS FOR PARTICULAR PURPOSE OF ANY MATERIALS TO BE SUPPLIED BY SUCH PARTY
TO THE OTHER PARTY UNDER THIS AGREEMENT.  
IN NO EVENT SHALL EITHER PARTY OR ITS RESPECTIVE AFFILIATES AND PERMITTED
SUBLICENSEES BE LIABLE FOR SPECIAL, EXEMPLARY, CONSEQUENTIAL OR PUNITIVE
DAMAGES, WHETHER IN CONTRACT, WARRANTY, TORT, STRICT LIABILITY OR OTHERWISE,
EXCEPT TO THE EXTENT SUCH PARTY MAY BE REQUIRED TO INDEMNIFY THE OTHER PARTY
FROM SUCH DAMAGES CLAIMED BY THIRD PARTIES UNDER SECTION 8.

11.        NOTICE

             11.1       NOTICES
shall be sent as follows:

	If to NCE:	 	New Chemical Entities, Incorporated
	 	 	18804 North Creek Parkway
	 	 	Bothell, WA 98011 USA
	 	 	Attn.: Dr. Dwight Baker
	 	 	Tel. (425) 424-7250
	 	 	Fax (425) 424-7299

	If to INTRABIOTICS:	 	IntraBiotics Pharmaceuticals, Inc.
	 	 	2021 Stierlin Court
	 	 	Mountain View, CA 94043 USA
	 	 	Attn.: Dr. John Fiddes
	 	 	Tel. (650) 526-6800
	 	 	Fax
  (650) 969-0663

12.        MISCELLANEOUS

             12.1       Relationship
of Parties.  Nothing in this Agreement
is intended or shall be deemed to constitute a partnership, agency,
employer-employee or joint venture relationship between the parties. No party
shall incur any debts or make any commitments for the other, except to the
extent, if at all, specifically provided herein.

             12.2       Assignment.  Neither party shall be entitled to assign
its rights hereunder without the express written consent of the other party
hereto, except that either party may assign their respective rights and
transfer their respective duties hereunder to an affiliate, to any assignee of
all or substantially all of their business to which this Agreement relates, or
in the event of their respective merger or consolidation. Any assignment not in
accordance with this Section 12.2 shall be void and of no effect. No assignment
and transfer shall be valid or effective unless and until the
assignee/transferee shall agree in writing to be bound by the provisions of
this Agreement in which case the Agreement will inure to the benefit of such successors
and assigns.

             12.3       Further
Actions.  Each party agrees to
execute, acknowledge and deliver such further instruments, and to do all such
other acts, as may be necessary or appropriate in order to carry out the
purposes and intent of this Agreement.

             12.4       Use
of Name.  Except as otherwise
provided herein, neither party shall have any right, express or implied, to use
in any manner the name or other designation of the other party or any other
trade name or trademark of the other party for any purpose in connection with
the performance of this Agreement.

             12.5       Waiver.  A waiver by either party of any of the terms
and conditions of this Agreement in any instance shall not be deemed or
construed to be a waiver of such term or condition for the future, or of any
subsequent breach hereof. All rights, remedies, undertakings, obligations and
agreements contained in this Agreement shall be cumulative and none of them
shall be in limitation of any other remedy, right, undertaking, obligation or
agreement of either party.

             12.6       Severability.
If any term, condition or provision of this Agreement is held to be
unenforceable for any reason, it shall, if possible, be interpreted to achieve
the intent of the parties to this Agreement to the extent possible rather than voided.  In any event, all other terms, conditions
and provision of this Agreement shall be deemed valid and enforceable to the
full extent.

             12.7       Amendment.  No amendment, modification or supplement of
any provisions of this Agreement or the Appendices thereto (except with respect
to the addition or deletion of Targets) shall be valid or effective unless made
in writing and signed by a duly authorized officer of each party.

             12.8       Governing
Law. This Agreement shall be governed by and interpreted in accordance with
the laws of the State of Delaware without regard to its choice of law
principles.  In the event that either
party desires to initiate litigation with respect to this Agreement, such
litigation shall be conducted in a court of competent jurisdiction in the State
of Delaware and each party hereby submits to the jurisdiction of such court(s)
and agrees that venue is proper in such court(s).

             12.9       Entire
Agreement. This Agreement, together with the Exhibits hereto, sets forth
the entire agreement and understanding between the parties as to the subject
matter hereof and merges all prior discussions and negotiations between them.
Neither of the parties shall be bound by any conditions, definitions,
warranties, understandings or representations with respect to such subject
matter other than as expressly provided herein or as duly set forth on or
subsequent to the date hereof in writing and signed by a proper and duly
authorized officer or representative of each party.

             12.10     Parties
in Interest. All the terms and provisions of this Agreement shall be
binding upon, inure to the benefit of and be enforceable by the parties hereto
and their respective permitted successors and assigns.

             12.11     Descriptive
Headings. The descriptive headings of this Agreement are for convenience
only, and shall be of no force or effect in construing or interpreting any of
the provisions of this Agreement.

             12.12     Counterparts.
This Agreement may be executed simultaneously in any number of identical
counterparts, any one of which need not contain the signature of more than one
party but all such counterparts taken together shall constitute one and the
same agreement.

             12.13     Dispute
Resolution.  In the event of a
dispute between the parties relating to the subject matter of this Agreement
other than disputes arising from facts supporting the entry of a Temporary
Restraining Order or Preliminary Injunction or similar emergency relief, the
parties shall first submit such dispute to their respective Chief Operating
Officers for resolution.  If the Chief
Operating Officers are unable to resolve such dispute within thirty (30) days
after its submission, either party make seek such relief or remedy as it may
elect.

             12.14     To the
extent that there is an inconsistency between the Appendices and the main
portion of this Agreement, the main portion of the Agreement shall determine
the rights and obligations of the parties.

IN
WITNESS WHEREOF, the parties hereto, intending to be bound hereby, have caused
this Agreement to be executed as of the dates indicated herein:

 

	INTRABIOTICS PHARMACEUTICALS, INC.	NEW CHEMICAL ENTITIES, INC.
	By:
  /s/ Kenneth J. Kelley

	By:  /s/ Barry Berkowitz

	(Signature)	(Signature)
	Name:
  Kenneth J. Kelley	Name:	 Barry
  Berkowitz

	Title:  Chairman and Chief Executive Officer	Title:	CEO

	Date:
  	 January 24, 2001

	Date:
  	1/24/01

				

 

APPENDIX
A

to
RESEARCH AND TECHNOLOGY AGREEMENT

dated
January 24,  2001  between NCE, Inc. and INTRABIOTICS

[ *
]

             (one page of text omitted here)

APPENDIX
B

to
RESEARCH AND TECHNOLOGY AGREEMENT

dated
January 24,  2001  between NCE, Inc. and INTRABIOTICS

[ *
]

(3 1⁄2 pages of continuous text
omitted here)

APPENDIX C

to
RESEARCH AND TECHNOLOGY AGREEMENT

dated
January 24, 2001  between NCE, Inc. and
INTRABIOTICS

[ * ]

 

 

 

[ * ] =
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF
1934, AS AMENDED.Prepared by MerrillDirect

Exhibit
No. 10.13

INDEMNIFICATION
AGREEMENT

BETWEEN

CORILLIAN
CORPORATION

AND

_____________________

 

CORILLIAN CORPORATION

INDEMNIFICATION AGREEMENT

This Indemnification Agreement
(this “Agreement”) is
made as of January 23, 2001, by and between Corillian Corporation, an Oregon
corporation (the “Company”),
and the individual whose name appears below the word “Indemnitee” on the
signature page of this Agreement (the “Indemnitee”).  In consideration
of the services of the Indemnitee to the Company, and to induce the Indemnitee
to continue to serve as an officer and/or director, the Company and the
Indemnitee agree as follows:

 

R E C I T A L S

A.         The Indemnitee has agreed to serve as
an officer and/or director of the Company and in such capacity will render valuable
services to the Company.

B.         The Company has concluded that
insurance, statutory indemnity provisions and the Company’s Bylaws may provide
inadequate protection to individuals requested to serve as its officers and/or
directors.

C.         To induce and encourage the Indemnitee
to serve as an officer and/or director of the Company, the Company’s Board of
Directors has decided that this Agreement is not only reasonable and prudent,
but necessary, to promote and ensure the best interests of the Company and its shareholders.

1.  Definitions

As used in this Agreement:

“Agent” means a director, officer, employee or
agent of the Company or of any other corporation, partnership, joint venture,
trust, employee benefit plan, or other enterprise that the Indemnitee served in
any of such capacities at the request of the Company.

“Corporate
Transaction”
has the same meaning given in the Company’s 2000 Stock Incentive Compensation
Plan.

“Expenses” includes, but is not limited to,
attorneys’ fees, disbursements and retainers, accounting and witness fees,
travel and deposition costs, expenses of investigations and amounts paid in
settlement by or on behalf of the Indemnitee, and any expenses of establishing
a right to indemnification pursuant to this Agreement, to the extent actually
and reasonably incurred by the Indemnitee in connection with any Proceeding.  “Expenses” does
not include the amount of judgments, fines, penalties or ERISA excise taxes
actually levied against the Indemnitee.

“Indemnified
Costs”
means all Expenses, judgments, fines, penalties and ERISA excise taxes actually
and reasonably incurred by the Indemnitee in connection with the investigation,
defense, appeal, or settlement of any Proceeding.

 

A “Potential Corporate
Transaction” will be deemed to have occurred if:

(a)         the
Company enters into an agreement or arrangement that would constitute a
Corporate Transaction if consummated;

(b)        any
person (including the Company) publicly announces an intention to take or to
consider taking actions that would constitute a Corporate Transaction if
consummated; or

(c)         the
Board of Directors adopts a resolution that, for purposes of this Agreement, a
Potential Corporate Transaction has occurred.

“Proceeding” means any threatened, pending or
completed action, suit or proceeding (including appeals thereof), whether
brought by or in the name of the Company or otherwise and whether of a civil,
criminal or administrative or investigative nature, in which the Indemnitee is
or will be a party because the Indemnitee is or was an Agent, whether or not
the Indemnitee is serving in such capacity at the time any liability or Expense
is incurred for which indemnification or reimbursement is to be provided under
this Agreement.

2.  Indemnification

2.1        Indemnification in Third Party Actions. 
The Company will indemnify the Indemnitee if the Indemnitee becomes a
party to or is threatened to be made a party to any Proceeding (other than a
Proceeding by or in the name of the Company to procure a judgment in its
favor), because the Indemnitee is or was an Agent, against all Indemnified
Costs, to the fullest extent permitted by applicable law, but only if the
Indemnitee acted in good faith and in a manner that the Indemnitee reasonably
believed to be in or not opposed to the best interests of the Company and, in
the case of a criminal proceeding, in addition, had no reasonable cause to
believe that the Indemnitee's conduct was unlawful.  Any settlement must be approved in writing by the Company.

2.2        Indemnification in Proceedings By or In the Name of
the Company.  The Company will indemnify the Indemnitee if
the Indemnitee is a party to or is threatened to be made a party to any
Proceeding by or in the name of the Company to procure a judgment in its favor
because the Indemnitee was or is an Agent of the Company against all Expenses
in connection with the defense or settlement of the Proceeding, to the fullest
extent permitted by applicable law, but only if the Indemnitee acted in good
faith and in a manner that the Indemnitee reasonably believed to be in or not
opposed to the best interests of the Company.

2.3        Partial Indemnification.
 
If the Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for some or a portion of, but not the total
amount of, the Indemnified Costs, the Company will nevertheless indemnify the
Indemnitee for the portion of the Indemnified Costs to which the Indemnitee is
entitled.

2.4        Indemnification Hereunder Not Exclusive. The indemnification provided by this
Agreement is not exclusive of any other rights to which the Indemnitee may be
entitled under the Company’s Articles of Incorporation, the Bylaws, any
agreement, any vote of shareholders or disinterested directors, applicable law,
or otherwise, both as to action in the Indemnitee’s official capacity and as to
action in another capacity on behalf of the Company.

2.5        Indemnification of Indemnified Costs of Successful
Party.  Notwithstanding any other provisions of this
Agreement, to the extent that the Indemnitee has been successful in defense of
any Proceeding or in defense of any claim, issue or matter in the Proceeding,
on the merits or otherwise, including, but not limited to, the dismissal of a
Proceeding without prejudice, the Indemnitee will be indemnified against all
Indemnified Costs incurred in connection therewith to the fullest extent
permitted by applicable law.

2.6        Indemnified Costs Advanced.
 
The Indemnified Costs incurred by the Indemnitee in any Proceeding will
be paid promptly by the Company in advance of the final disposition of the
Proceeding at the written request of the Indemnitee to the fullest extent
permitted by applicable law, if the Indemnitee shall undertake to repay such
amount to the extent that it is ultimately determined by a court that
Indemnitee is not entitled to be indemnified by the Company and shall furnish
the Company a written affirmation of the Indemnitee's good faith belief that
the Indemnitee is entitled to be indemnified by the Company under this
Agreement.  Such advances shall be made
by the Company without regard to Indemnitee's ability to repay such
expenses.  The advances to be made will
be paid by the Company to the Indemnitee within 30 days following delivery of the
written request by Indemnitee to the Company, accompanied by substantiated
documentation.

2.7        Limitations on Indemnification.
 
Notwithstanding anything to the contrary in this Agreement, the Company
is not required to make payments to:

(a)         indemnify
or advance Indemnified Costs with respect to Proceedings initiated or brought
voluntarily by the Indemnitee and not by way of defense, except with respect to
Proceedings brought to establish or enforce a right to indemnification under
this Agreement or any other statute or law or otherwise as required under
applicable law;

(b)        indemnify
the Indemnitee for any Indemnified Costs for which payment is actually made to
the Indemnitee under an insurance policy, except for any excess beyond the
amount of payment under the policy;

(c)         indemnify
the Indemnitee for any Indemnified Costs sustained in any Proceeding for an
accounting of profits made from the purchase or sale by the Indemnitee of
securities of the Company pursuant to Section 16(b) of the Securities
Exchange Act of 1934, as amended, the rules and regulations promulgated
thereunder and amendments thereto or similar provisions of any federal, state
or local law;

(d)        indemnify
the Indemnitee for any Indemnified Costs resulting from Indemnitee’s conduct
that is finally adjudged by a court of competent jurisdiction to have been
willful misconduct, knowingly fraudulent or deliberately dishonest; or

(e)         indemnify
the Indemnitee if a court of competent jurisdiction finally determines that
such payment is unlawful.

3.  Presumptions

3.1        Presumption Regarding Standard of Conduct.  The Indemnitee will be conclusively
presumed to have met the relevant standards of conduct as defined by applicable
law for indemnification pursuant to this Agreement unless a determination that
the Indemnitee has not met the relevant standards is made by (a) the Board
of Directors of the Company by a majority vote of a quorum consisting of
directors who are not parties to the Proceeding, (b) the shareholders of
the Company by majority vote, or (c) in a written opinion by independent
legal counsel, selection of whom has been made by the Company’s Board of
Directors and approved by the Indemnitee.

 

3.2        Determination of Right to Indemnification.

3.2.1     Burden.  If a
claim under this Agreement is not paid by the Company within 30 days of receipt of written notice,
the right to indemnification as provided by this Agreement will be enforceable
by the Indemnitee in any court of competent jurisdiction.  The burden of proving that indemnification
or advances are not appropriate will be on the Company.  Neither the failure of the directors,
shareholders, or independent legal counsel to have made a determination before
the commencement of the action that indemnification or advances are proper in
the circumstances because the Indemnitee has met the applicable standard of
conduct, nor an actual determination by the directors, shareholders or
independent legal counsel that the Indemnitee has not met the applicable
standard of conduct, will be a defense to the action or create a presumption
that the Indemnitee has not met the applicable standard of conduct.

3.2.2     Standard.  The
Indemnitee’s Expenses incurred in connection with any Proceeding concerning the
Indemnitee’s right to indemnification or advances in whole or in part pursuant
to this Agreement will be indemnified by the Company regardless of the outcome
of the Proceeding, unless a court of competent jurisdiction determines that
each of the material assertions made by the Indemnitee in the Proceeding was
not made in good faith or was frivolous.

4.  Other Agreements

4.1        Corporate Transaction.  If there is a Corporate Transaction or a
Potential Corporate Transaction of the Company (other than a Corporate Transaction
or Potential Corporate Transaction that has been approved by a majority of the
Company’s Board of Directors who were directors immediately before the
Corporate Transaction or Potential Corporate Transaction), then with respect to
all matters thereafter arising concerning the rights of the Indemnitee to be
indemnified for Indemnified Costs, the Company will seek legal advice only from
independent counsel selected by the Indemnitee, and reasonably satisfactory to
the Company, and who has not otherwise performed other services for the Company
or the Indemnitee within the last three years (“Special Independent Counsel”).  The Special Independent Counsel, among
other things, will render its written opinion to the Company and the Indemnitee
as to whether and to what extent the Indemnitee would be permitted to be
indemnified under applicable law.  The Company will pay the reasonable fees and expenses of
the Special Independent Counsel.

4.2        Maintenance of Liability Insurance.

4.2.1     Affirmative Covenant of the Company.  While the Indemnitee continues to serve
as an officer and/or director of the Company, and thereafter while the Indemnitee is
subject to any possible Proceeding, the Company will maintain in full force and
effect directors’ and officers’ liability insurance (“D&O Insurance”) in
reasonable amounts from reputable insurers.  The Company has no obligation, however, to
obtain or maintain D&O Insurance if it determines in good faith that
insurance is not reasonably available, the premium costs for insurance are
disproportionate to the amount of coverage provided, the coverage provided by
insurance is so limited by exclusions that it provides an insufficient benefit,
or the Indemnitee is covered by similar insurance maintained by a subsidiary of
the Company.  If the Company has D&O
Insurance at the time it receives a notice that a Proceeding has commenced, the
Company will give prompt notice of such commencement to the insurers as
required by the respective policies. 
The Company will thereafter take all necessary or desirable action to
cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as
a result of such proceeding in accordance with the terms of such policies.

4.2.2     Indemnitee Named as Insured. 
In all D&O Insurance policies, the Indemnitee will be named as an
insured.

4.3        Effect of this Agreement on Employment Agreement. 
Any present or future employment agreement between the Indemnitee and
the Company is not modified by this Agreement. 
Nothing contained in this Agreement creates in the Indemnitee any right
of continued employment.

4.4        Nature of Rights; Separability. 
The rights afforded to the Indemnitee by this Agreement are contract
rights and may not be diminished, eliminated or otherwise affected by
amendments to the Company’s Articles of Incorporation, Bylaws or agreements,
including D&O Insurance policies. 
Each provision of this Agreement, to the extent practicable, is a
separate and distinct agreement and independent of the others, so that if any
provision of this Agreement is held to be invalid or unenforceable for any
reason, the invalidity or unenforceability will not affect the validity or
enforceability of the other provisions. 
To the extent required, any provision of this Agreement may be modified
by a court of competent jurisdiction to preserve its validity and to provide
the Indemnitee with the broadest possible indemnification permitted under
applicable law.

4.5        Savings Clause. 
If this Agreement or any portion of it is invalidated on any ground by
any court of competent jurisdiction, then the Company will nevertheless
indemnify the Indemnitee as to Indemnified Costs with respect to any Proceeding
to the full extent permitted by any applicable portion of this Agreement that
is not invalidated, or by any applicable law.

4.6        Repayment of Indemnified Costs. 
The Indemnitee will reimburse the Company for all Indemnified Costs paid
by the Company in defending any Proceeding against the Indemnitee if and only
to the extent that a court of competent jurisdiction finally decides that the
Indemnitee is not entitled to be indemnified by the Company for such
Indemnified Costs under the provisions of applicable law, the Company’s Bylaws,
Articles of Incorporation, this Agreement, or otherwise.  The Indemnitee will repay such amounts
advanced only if, and to the extent that, it is ultimately determined that
Indemnitee is not entitled to be indemnified for such Indemnified Costs by the
Company pursuant to this Agreement.

4.7        Repayment.  The
Indemnitee will promptly repay to the Company any amounts paid to the
Indemnitee pursuant to other rights of indemnification or under any insurance
policy, to the extent those payments are duplicative of payments under this
Agreement.

5.  Indemnification Procedure

5.1        Notice. 
Promptly after receipt of notice that a Proceeding has commenced, the
Indemnitee will, if a claim is to be made under this Agreement, notify the
Company of that fact.  The failure to
notify the Company will not relieve it from any liability that it may have to
the Indemnitee except to the extent of the Company’s material damage resulting
from such failure.

5.2        Company Participation. 
The Company will be entitled to participate in any Proceeding at its own
expense and, except as otherwise provided below, to the extent that it may
wish, the Company may assume the defense of any Proceeding for which
indemnification is sought hereunder, with counsel reasonably satisfactory to
the Indemnitee.  After the Company
notifies the Indemnitee of the Company’s election to assume the defense of a
Proceeding, during the Company’s good faith defense the Company will not be
liable to the Indemnitee under this Agreement for any legal or other expenses
subsequently incurred by the Indemnitee in connection with the defense of the
Proceeding, other than reasonable costs of investigation or as otherwise
provided below.  The Indemnitee will
have the right to employ the Indemnitee’s counsel in any Proceeding, but the
fees and expenses of the counsel incurred after the Company assumes the defense
of the Proceeding will be at the expense of the Indemnitee, unless (a) the
employment of counsel by the Indemnitee has been authorized by the Company,
(b) the Indemnitee has reasonably concluded that there is be a conflict of
interest between the Company and the Indemnitee in the conduct of the defense
of a Proceeding, or (c) the Company has not in fact employed counsel to
assume the defense of a Proceeding.  In
each of the foregoing cases the fees and expenses of the Indemnitee’s counsel
will be at the expense of the Company. 
The Company will not be entitled to assume the defense of any Proceeding
brought by or on behalf of the Company or as to which the Indemnitee has made
the conclusion that there may be a conflict of interest between the Company and
the Indemnitee.

 

5.3        Settlement.  The
Company will not settle or compromise any Proceeding in any manner that would
impose any penalty or limitation on the Indemnitee without the Indemnitee’s
consent.  The Indemnitee will not settle
or compromise any Proceeding without the Company’s consent.  Neither the Company nor the Indemnitee will
unreasonably withhold their consent or approval under this Agreement.

5.4        Subrogation.  If the
Company pays Indemnified Costs, the Company will be subrogated to the extent of
such payment to all of the rights of recovery of the Indemnitee against third
parties.  The Indemnitee will do all
things reasonably necessary to secure such rights, including the execution of
documents necessary to enable the Company effectively to bring suit to enforce
such rights.

6.  Miscellaneous Provisions

6.1        Amendments; Waivers. 
Amendments, waivers, consents and approvals under this Agreement must be
in writing and designated as such.  No
failure or delay in exercising any right will be deemed a waiver of such right.

6.2        Integration.  This
Agreement is the entire agreement between the parties pertaining to its subject
matter, and supersedes all prior agreements and understandings of the parties
in connection with such subject matter.

6.3        Interpretation; Governing Law. 
This Agreement is to be construed as a whole and in accordance with its
fair meaning.  This Agreement is to be
interpreted in accordance with the laws of the State of Oregon relating to
indemnification of Agents.

6.4        Headings.  Headings
of Sections and subsections are for convenience only and are not a part of this
Agreement.

6.5        Counterparts. 
This Agreement may be signed in one or more counterparts, all of which
constitute one agreement.

6.6        Successors and Assigns.
 
This Agreement is binding upon and inures to the benefit of each party
and such party’s respective heirs, personal representatives, successors and
assigns.  Nothing in this Agreement,
express or implied, is intended to confer any rights or remedies upon any other
person.

6.7        Expenses; Legal Fees. 
Each party will pay its own expenses in the negotiation, preparation and
performance of this Agreement.  The
prevailing party in any action relating to this Agreement will be entitled to
reasonable legal fees, costs and expenses incurred in such action.

6.8        Representation by Counsel; Interpretation. 
Each party acknowledges that it has been given an opportunity to be
represented by counsel in connection with this Agreement.  Any rule of law or any legal decision that
would require interpretation of any claimed ambiguities in this Agreement
against the party that drafted it, has no application and is expressly waived.

6.9        Time is of the Essence.
  Time is of the essence in the performance
of each provision of this Agreement.

6.10      Notices. 
Any notice to be given hereunder must be in writing and delivered as
follows (or to another address designated in writing):

 

	If to Corillian
  Corporation:

  3400 NW John Olsen Place 

  Hillsboro, OR 97124 

  Attention:  General Counsel	If to the
  Indemnitee:

  At the Indemnitee’s most recent address on the books and records of the
  Company or at such other address as Indemnitee indicates to the Company

[the rest of this page is intentionally left
blank]

The parties have signed this Agreement as of the
date on page one.

	INDEMNITEE

Print Name:
	 
	 
	CORILLIAN
  CORPORATION

	By:

	Name:

	Title:

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