Document:

EX-10.7 LICENSE AGREEMENT

 

Exhibit 10.7

LICENSE AGREEMENT

     THIS LICENSE AGREEMENT (the “Agreement”) dated as of July 19, 2006 (the “Effective Date”), is
made and entered, into by and between REUTERS AMERICA LLC (“Licensor”), a Delaware limited
liability company having an office at Three Times Square, New York, NY 10036, and GreenHaven, LLC
(“Greenhaven”), a Georgia limited liability company having an office at 3340 Peachtree Road, Suite
1910, Atlanta, Georgia 30326 (“Licensee”).

     WHEREAS, Licensor compiles, calculates, maintains and owns rights in and to the Continuous
Commodity Index, also known as the CCI (as well as the subindices to that Index, and total return
and excess return values, as named in Exhibit C), and to the proprietary data contained therein;
and

     WHEREAS, Licensee wishes to use the Index value, Subindex values, Total Return values, and
Excess Return values as the basis of the product(s) described in Exhibit A hereto (the
“Product(s)”); and

     WHEREAS,
Licensee or its affiliates wishes to use the Index name (the “Marks”) in connection
with the issuance, marketing and/or promotion of the Product(s) under applicable law, rules and
regulations in order to indicate that Licensor is the source of the Index; and

     WHEREAS, Licensor wishes to license to Licensee the use of the Index and the Marks in
connection with the Product(s), all in accordance with the terms and conditions hereinafter set
forth;

     NOW, THEREFORE, the parties hereto agree as follows:

1. Grant and Scope of License.

     (a) Subject to the terms and conditions of this Agreement, Licensor hereby grants Licensee a
non-transferable, non-exclusive, limited license, with no right to sublicense (other than as
detailed below), (i) to use the calculated values for the Index, Subindex, Total Return, and
Excess Returns specified in Exhibit C as a component of the Product(s) described in Exhibit A to
be created, issued, offered, written and/or sold by Licensee and (ii) to use and refer to the
Marks in connection with the marketing and promotion of such Product(s), management.
administration, listing of the Products, and in connection with making such disclosure about the
Product(s) whichever is relevant as Licensee deems necessary or desirable under any applicable
law, rules or regulations, but, in each case, only to the extent necessary to indicate the
Products are based upon the Index and to indicate that Reuters is the source of the Index and
subject to Section 4. It is expressly agreed and understood by Licensee that no rights to use the
Index or the Marks are granted hereunder other than those specifically described and expressly
granted herein. Licensee may sublicense the right to use and refer to the Marks as detailed in
(ii) above to those who promote, market, maintain, manage and sell the Products on behalf of

 

 

Licensee for the sole purpose of enabling such entities to promote, market, maintain and sell the
Products, provided that no such sublicense shall be made except with respect to the Products and
then only to the extent of the rights expressly granted to Licensee pursuant to this Agreement.

     (b) The parties agree that this Agreement does not obligate Licensor to provide or deliver the Index
values and/or related data to Licensee and Licensee shall be required to obtain such Index values
and/or related data from an authorized distributor of such Index values and/or related data.

2.Term and Termination.

     (a) This Agreement shall commence on the Effective Date and shall continue
in effect for two (2) years (“Initial Term”);

     (b) After the Initial Term, this Agreement shall automatically renew for
successive one-year periods (each a “Renewal Term”) unless and until (i) Licensor or
Licensee terminates this Agreement at the expiration of the Initial Term or any Renewal
Term by giving at least one hundred eighty (180) days’ prior written notice to the other
parties, or (ii) terminated as set forth below.

     (c) Licensor shall have the right to terminate this Agreement in the event of any material
breach of this Agreement by Licensee, which breach is not cured within thirty (30) days following
Licensee’s receipt of written notice from Licensor of such breach;

     (d) Licensor shall have the right to terminate this Agreement one hundred eighty (180) days
following the date upon which Licensor provides written notice to Licensee that Licensor is
suspending offering the Index to licensees in general.

3. License Fees and Reporting.

     (a) As consideration for the license granted under the Agreement, Licensee shall pay to
Licensor the fees (“License Fees”) calculated as set forth on Exhibit B hereto. Licensee
shall pay the License Fees within thirty (30) business days after the end of the calendar quarter
of Licensee’s receipt of Licensor’s invoice to which the License Fees relate. All amounts shall be paid in cash and
shall be non-refundable. All amounts stated are net of any withholding taxes, such that the
amounts due and payable to Licensor under this Agreement, after any applicable deduction or
withholding for or on account of any present or future taxes, levies, imposts, duties, fees,
assessments or other charges of whatever nature now or hereafter imposed, will not be less than
the amounts set forth on Exhibit B.

     (b) Licensee shall deliver to Licensor, within ten (10) business days after each calendar
quarter during the Term, a written report, upon which Licensor’s invoice

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referenced in Section 3(a) will be based, detailing (i) maximum daily total assets, (ii) minimum
daily total assets, and (iii) average daily official closing amount of total assets, invested in
the Products during the preceding calendar quarter, based upon business days during which any of
the trading venues upon which the Products may be traded having been open for trading.

     (c) Licensor shall have the right to audit on a confidential basis the relevant
books and records of Licensee to confirm the accuracy of any one or more calculations of
License Fees. Licensor shall bear its own costs of any such audit unless it is determined
that Licensor has been underpaid by 5% or more with respect to the payments being
audited, in which, case Licensor’s costs of such audit shall be paid by Licensee.

     (d) Licensee shall be responsible for all costs associated with the receipt of the
Index.

4. Informational Materials Review.

     (a) Licensee shall use its best efforts to protect the goodwill and reputation of the Index
and of the Marks in connection with its use of the Marks under this Agreement.

     (b) Licensee shall submit to Licensor for its review and approval all prospectuses,
registration statements, advertisements, brochures and promotional and any other similar
informational materials (including documents required to be filed with governmental or regulatory
agencies) relating to the Product(s) and that in any way use or refer to Licensor or the Index (the
“Informational Materials”). Licensor will use reasonable endeavors to provide approval or
comments within 5 business days. In any event, approval by Licensor hereunder shall not be
unreasonably withheld or delayed. Once Informational Materials have been approved by Licensor,
subsequent Informational Materials that do not alter the use or description of Licensor and the
index need not be submitted for review and approval by Licensor.

     (c) In each item of Informational Material, Licensee shall use only the full
name of the Index, and shall not use any abbreviation therefor.

5.  Proprietary Rights.

     (a) Licensee acknowledges that the Index is selected, coordinated, arranged and prepared by
Licensor through the application of methods and standards of judgment used and developed through
the expenditure of considerable work, time and money by Licensor. Licensee also acknowledges that,
as between Licensee and Licensor, the Marks are the exclusive property of Licensor, that Licensor
has and retains all proprietary rights therein (including, but not limited to, trademarks and
copyrights) and that the Index and its compilation and composition and changes therein are in the
control and sole discretion of Licensor.

     (b) Licensor reserves all rights with respect to the Index and the Marks except those
expressly licensed to Licensee hereunder.

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     (c) The following notice will appear at the foot of any list or table which reproduces in
whole or substantial part the Index: “Copyright 200[ ]. Reuters America LLC.
Used with permission.”

6. Warranties; Disclaimers; Indemnification.

     (a) Licensee agrees expressly to be bound itself by and furthermore to include all of the
following disclaimers and limitations in its Informational Materials and any contract(s) relating
to the Product(s) and upon request to furnish a copy (copies) thereof to Licensor:

     “THE
PRODUCT(S) IS NOT SPONSORED, ENDORSED, SOLD OR PROMOTED BY REUTERS AMERICA LLC
(“REUTERS”), OR ANY OF ITS SUBSIDIARIES OR AFFILIATES (COLLECTIVELY THE “LICENSOR”), LICENSOR
MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, TO THE OWNERS OF
THE PRODUCT(S) OR ANY MEMBER OF THE PUBLIC REGARDING THE ADVISABILITY OF INVESTING IN SECURITIES OR COMMODITIES
GENERALLY OR IN THE PRODUCT(S) PARTICULARLY OR THE ABILITY OF THE INDEX TO TRACK GENERAL
COMMODITY MARKET PERFORMANCE. LICENSOR’S ONLY RELATIONSHIP TO [LICENSEE NAME] (“LICENSEE”) IS THE
LICENSING OF THE INDEX, WHICH IS DETERMINED, COMPOSED AND CALCULATED BY LICENSOR WITHOUT REGARD TO
THE LICENSEE OR THE PRODUCT(S). LICENSOR HAS NO OBLIGATION TO TAKE THE NEEDS OF THE LICENSEE OR
THE OWNERS OF THE PRODUCT(S) INTO CONSIDERATION IN DETERMINING,
COMPOSING OR CALCULATING THE INDEX.
LICENSOR IS NOT RESPONSIBLE FOR AND HAVE NOT PARTICIPATED IN THE DETERMINATION OF THE TIMING OF,
PRICES AT, OR QUANTITIES OF THE PRODUCT(S) TO BE ISSUED OR IN THE DETERMINATION OR CALCULATION OF
THE EQUATION BY WHICH THE PRODUCT(S) IS TO BE CONVERTED INTO CASH. LICENSOR HAS NO OBLIGATION OR
LIABILITY IN CONNECTION WITH THE ADMINISTRATION, MARKETING OR TRADING OF THE PRODUCT(S).

     LICENSOR AND ITS AFFILIATES AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS
MAY BUY OR SELL SECURITIES OR COMMODITIES MENTIONED OR CONTEMPLATED HEREIN AS AGENT OR AS
PRINCIPAL FOR THEIR OWN ACCOUNTS AND MAY HAVE POSITIONS OR ENGAGE IN TRANSACTIONS BASED ON OR
INDEXED TO THE INDEX. IT IS POSSIBLE THAT LICENSOR’S TRADING ACTIVITY WILL AFFECT THE VALUE OF THE
INDEX. LICENSOR MAY OPERATE AND MARKET OTHER INDICES THAT MAY COMPETE WITH THE INDEX.

     LICENSOR DOES NOT GUARANTEE THE QUALITY, ACCURACY AND/OR THE COMPLETENESS OF THE INDEX OR
ANY DATA INCLUDED THEREIN. LICENSOR MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO

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RESULTS TO BE OBTAINED BY LICENSEE, OWNERS OF THE PRODUCT(S), OR ANY OTHER PERSON OR ENTITY FROM
THE USE OF THE INDEX OR ANY DATA INCLUDED THEREIN IN CONNECTION WITH THE RIGHTS LICENSED HEREUNDER
OR FOR ANY OTHER USE. LICENSOR MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY
DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT
TO THE INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL
LICENSOR HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH
DAMAGES.”

     Any changes in the foregoing disclaimers and limitations must be approved in advance in
writing by an authorized officer of Licensor.

     (c) Licensee represents and warrants to Licensor, and Licensor represents and warrants to
Licensee, that it has the authority to enter into this Agreement according to its terms.

     (d) Licensee represents and warrants to Licensor that the Product(s) shall at all times comply
with the relevant descriptions in Exhibit A and shall not violate any of the restrictions set forth
therein.

     (e) Licensee represents and warrants to Licensor that the Product(s) shall not violate any
applicable law, including but not limited to banking, commodities and securities laws.

     (f) LICENSOR, ITS AFFILIATES, EMPLOYEES AND AGENTS, SHALL HAVE NO LIABILITY, CONTINGENT OR
OTHERWISE, TO LICENSEE OR TO THIRD PARTIES, FOR THE ACCURACY, COMPLETENESS OR CURRENCY OF THE
INDEX OR FOR DELAYS OR OMISSIONS THEREIN, OR FOR INTERRUPTIONS IN THE DELIVERY OF THE INDEX. IN NO
EVENT WILL LICENSOR BE LIABLE FOR ANY SPECIAL, PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS) WHICH MAY BE INCURRED OR EXPERIENCED ON
ACCOUNT OF LICENSEE ENTERING INTO OR RELYING ON THIS AGREEMENT, EVEN IF LICENSOR HAVE BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. WITHOUT DIMINISHING THE DISCLAIMERS AND LIMITATIONS
SET FORTH IN THIS SECTION 6, IN NO EVENT SHALL THE CUMULATIVE LIABILITY OF LICENSOR TO LICENSEE
UNDER THIS AGREEMENT EXCEED THE LICENSE FEES ACTUALLY PAID TO LICENSOR HEREUNDER FOR THE FULL
CALENDAR YEAR IMMEDIATELY PRECEDING THE FINDING OF SUCH LIABILITY.

     (g) Licensee shall indemnify, protect, and hold harmless Licensor, its affiliates.

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employees and agents from and against any and all losses, liabilities, judgments, suits, actions,
proceedings, claims, damages, costs (including reasonable attorneys’ fees and disbursements)
resulting from or arising out of failure to fulfill its obligations under this Agreement, the use
by Licensee of the Index, the Product(s) or otherwise arising out of
this Agreement.

7. Confidentiality.

     Each of Licensor and Licensee acknowledges that it or its employees may in the course of
performing their responsibilities under this Agreement, he exposed to or acquire information which
is proprietary to or confidential to the other party or its affiliates or clients or to third
parties to whom the other party owes a duty of confidentiality. Any and all non-public information
of any form obtained by one party or its employees regarding the other party, including without
limitation information related to the calculation of the Index, shall be deemed to be confidential
and proprietary information. The recipient of such confidential and proprietary information agrees
to hold such information in confidence and not to use or disclose such information for any purpose
whatsoever other than as contemplated by this Agreement and to advise each of its employees who
may be exposed to such proprietary and confidential information of their obligations hereunder.

8. No Promotion.

     Except as specifically provided herein, Licensee agrees that it will not, without the prior
written consent of Licensor in each instance, (i) use in advertising, publicity, or otherwise the
name of Licensor, or any affiliate of Licensor, or any employee of Licensor, nor any trade name,
trademark, trade device, service mark, symbol or any abbreviation, contraction or simulation
thereof owned by Licensor or its affiliates, or (ii) represent, directly or indirectly, that any
product or any service provided by Licensee has been approved or endorsed by Licensor.

9. Force Majeure.

     No party shall be liable or deemed to be in default for any delay or failure to perform under
this Agreement or for interruption of the services resulting directly or indirectly from any cause
beyond such party’s reasonable control.

10. General.

     (a) Licensee acknowledges that it has not been induced to enter into this Agreement by any
representation or warranty not set forth in this Agreement. This Agreement contains the entire
agreement of the parties with respect to its subject matter and supersedes all existing and all
other oral, written or other communications between them concerning this subject matter. This
Agreement shall not be modified in any way except by a writing signed by all parties.

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     (b) This Agreement may not be assigned by Licensee without the prior written consent of
Licensor. This Agreement shall be binding upon and shall inure to the benefit of the parties and
their respective successors and permitted assigns.

     (d) If any provision of the Agreement (or any portion thereof) shall be invalid, illegal or
unenforceable, the validity, legality or enforceability of the remainder of this Agreement shall
not in any way be affected or impaired thereby.

     (e) All notices and other communications under this Agreement shall be (i) in writing, (ii)
delivered by hand, by registered or certified mail, return receipt requested, by overnight delivery
service, or by facsimile transmission to the address set forth below or such address as a party
shall specify by a written notice to the other parties and (iii) deemed given upon receipt.

	 	 	 	 	 
	 

	 	Notice to Reuters:
	 	Reuters America LLC
	 

	 	 	 	3 Times Square
	 

	 	 	 	New York, New York 10036
	 

	 	 	 	Attn: Thomas Gros, EVP, Global Head of
	 

	 	 	 	New Markets and Commodities & Energy
	 

	 	 	 	FAX: 646-223-7740
	 
	 	 	 	 
	 

	 	 	 	With a copy to:
	 
	 	 	 	 
	 

	 	 	 	Reuters America LLC
	 

	 	 	 	3 Times Square
	 

	 	 	 	New York, New York 10036
	 

	 	 	 	ATTN: General Counsel
	 
	 	 	 	 
	 

	 	Notice to Licensee:
	 	GreenHaven, LLC
	 

	 	 	 	3340 Peachtree Road, Suite 1910
	 

	 	 	 	Atlanta, Georgia 30326
	 

	 	 	 	ATTN: Ashmead Pringle, Manager
	 

	 	 	 	FAX: 404-261-5468
	 
	 	 	 	 
	 

	 	 	 	With a copy to:
	 
	 	 	 	 
	 

	 	 	 	Taylor, Busch, Slipakoff & Duma, LLP
	 

	 	 	 	1600 Parkwood Circle, Suite 200
	 

	 	 	 	Atlanta, Georgia 30339
	 

	 	 	 	ATTN: George C. Gaskin, Esq.
	 

	 	 	 	FAX: 770-434-7376

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     (f) The headings in this Agreement are intended for convenience of reference and shall not
affect its interpretation.

     (g) Each of Licensor and Licensee acknowledges that a breach of any provision of Section 7 of
this Agreement will cause the applicable party irreparable injury and damage and therefore may be
enjoined through injunctive proceedings in addition to any other rights and remedies which may be
available to the applicable party at law or in equity. Licensee consents to jurisdiction in the
State or Federal courts located in New York County, State of New York, for enforcement of this
provision.

     (h) This Agreement and all matters relating to or arising under this Agreement shall be
governed in all respects by the laws of the State of New York, without giving effect to principles
of conflicts of law, and any litigation arising out of or connected in any way with this
Agreement shall take place in a State or Federal court of competent jurisdiction in New York
County, State of New York.

     (i) The following Sections shall survive termination of this Agreement: 5, 6, 7, 8 and 10.

          (j) Where a Product is traded in a currency other than U.S. dollars, the U.S. dollar
equivalent, for purposes of Section 1(b), Section 3 and Exhibit B hereunder, will be calculated
using the fixing rate of exchange displayed on the BCE’s screen on the valuation date which, for
the avoidance of doubt, can be found at http://www.ecb.int/stats/exchange/eurofxref/html/index.en.html.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
above written.

	 	 	 	 	 
	REUTERS AMERICA LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ [ILLEGIBLE]
 

	 	 
	Name
	 	 	 	 
	Title
	 	 	 	 
	Date

	 	7/21/06	 	 
	 
	 
	 	 	 	 
	LICENSEE	 	 
	 
	 	 	 	 
	GREENHAVEN, LLC	 	 
	 
	 	 	 	 
	By:

	 	/s/ Ashmead Pringle
 

	 	 
	Name

	 	Ashmead Pringle	 	 
	Title

	 	President - Managing Member	 	 
	Date

	 	7/20/06	 	 

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EXHIBIT A 

PRODUCTS

     “Products” means an exchange traded fund (“ETF”) that has both of the following
characteristics:

     (a) it is available for trade on the following venue(s):

Any U.S. or Canadian stock exchange, including but not limited to the New York Stock
Exchange, the American Stock Exchange, and the Toronto Stock Exchange.

and

     (b) it is launched no later than:

One
year from the date of this Agreement.

For the avoidance of doubt, Products are strictly limited in nature to ETFs and may not
include options contracts, futures contracts, exchange-traded notes, over-the-counter
instruments, or any other type of security.

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EXHIBIT B

LICENSE FEES

A. Base License Fee

	 	(i)	 	$37,500 per annum, the first annual payment of which is to be paid on
the date on which the Product listed on an exchange or ninety (90) days from execution
by the Licensee, whichever is earlier.

B. Variable License Fee

	 	(i)	 	0.060% (6 basis points) per annum of the first $100,000,000 US, or
foreign currency equivalent, invested in the Products based upon the average daily
official closing amount of invested assets as specified in Section 3(b)(iii).
	 
	 	(ii)	 	0.05% (5 basis points) per annum of each additional US Dollar, or
foreign currency equivalent, invested in the Products, in excess of $100,000,000 US
based upon the average daily official closing amount of invested assets as specified
in Section 3(b)(iii).

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EXHIBIT C

INDEX, SUBINDICES, and TOTAL and EXCESS RETURNS

Index

Continuous Commodity Index (CCI)

Subindices

CCI Energy Sub-index,

CCI Grains and Oilseeds Sub-index

CCI Industrials Sub-index

CCI Livestock Sub-index

CCI Precious Metals Sub-index

CCI Softs Sub-index

Total Returns

Continuous Commodity Index Total Return (RIC: <CCITR>)

Should Licensor commence the calculation, and publication of, total return values for certain
CCI Subindices, Licensee may use such Subindex total return values subject to the terms of this
Agreement.

Excess Returns

Continuous Commodity Index Excess Return (RIC: <CI>).

Should Licensor commence the calculation, and publication of, excess return values for certain CCI
Subindices, Licensee may use such Subindex excess return values subject to the terms of this
Agreement.

12Exhibit 10.27

 

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is made and entered into as of April 12, 2007
(the “Effective Date”) by and between GTx, Inc., located at 3 North Dunlap, 3rd Floor,
Memphis, Tennessee 38163 (the “Employer”), and JAMES T. DALTON (the “Employee”), residing at 4180
Greensview Road, Upper Arlington, Ohio 43220.

     WHEREAS, Employee was previously a tenured professor of The Ohio State University (“OSU”) and
an employee of the Employer;

     WHEREAS, the Employer now desires to retain full time the services of Employee as Vice
President, Preclinical Research & Development;

     WHEREAS, Employee has represented to Employer that he has relinquished his tenure at OSU, and
he and OSU have agreed that he will continue as an untenured professor working part time for the
institution;

     WHEREAS, the Employer and the Employee desire to enter into this Agreement to set forth terms
and conditions of the employment relationship between the Employer and the Employee;

     WHEREAS, during the course of Employee’s employment with the Employer, the Employer will train
and continue to train Employee and to impart to Employee proprietary, confidential, and/or trade
secret information, data and/or materials of the Employer;

     WHEREAS, the Employer has a vital interest in maintaining its confidential information and
trade secrets, as well as rights to inventions, since doing so allows the Employer to compete
fairly and enhances the value of the Employer to shareholders and job security for employees; and

     WHEREAS, the Employer desires to procure the services of Employee, and Employee is willing to
be employed and continue to be employed with the Employer upon the terms and subject to the
conditions set forth in this Agreement;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this
Agreement, the employment and continued employment of Employee in accordance with the terms and
conditions of this Agreement, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties, intending to be legally bound, agree and
covenant as follows:

     1. DEFINITIONS

     For the purposes of this Agreement, the following terms have the meanings specified or
referred to in this Section 1.

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     “Agreement” has the meaning set forth in first paragraph of this Agreement.

     “Basic Compensation” means Salary and Benefits.

     “Benefits” means as defined in Section 3.1(b).

     “Board of Directors” means the Board of Directors of the Employer.

     “CEO” has the meaning set forth in Section 2.2.

     “Change of Control” means any of the following events: (a) the sale or other
disposition of all or substantially all of the assets of Employer in a single transaction or in a
series of transactions (including, without limitation, any liquidation or dissolution of Employer);
(b) any Person or group becomes the beneficial owner, directly, or indirectly, of securities of the
Employer representing more than fifty percent (50%) of the combined voting power of the Employer’s
then outstanding securities other than by virtue of a merger, consolidation or similar transaction.
For such purposes, “voting stock” shall mean the capital stock of Employer of any class or
classes, the holders of which are ordinarily, in the absence of contingencies, entitled to vote for
the election of members of the Board of Directors (or Persons performing similar functions) of
Employer; or (c) a merger or consolidation of Employer with or into any other entity, if
immediately after giving effect to such transaction more than fifty percent (50%) of the issued and
outstanding voting stock of the surviving entity of such transaction is held by persons who were
not holders (taking into account their individual and affiliated holdings) as of the Effective Date
of at least twenty percent (20%) of the voting stock of Employer. A Change of Control shall not
include: (1) any transfer or issuance of stock of Employer to one or more of Employer’s lenders (or
to any agents or representatives thereof) in exchange for debt of Employer owed to any such
lenders; (2) any transfer of stock of Employer to or by any person or entity, including but not
limited to one or more of the Employer’s lenders (or to any agents or representatives thereof),
pursuant to the terms of any pledge of said stock as collateral for any loans or financial
accommodations to Employer and/or its subsidiaries; (3) any transfer or issuance to any person or
entity, including but not limited to one or more of Employer’s lenders (or to any agents or
representatives thereof), in connection with the workout or restructuring of Employer’s debts to
any one of Employer’s lenders, including but not limited to the issuance of new stock in exchange
for any equity contribution to Employer in connection with the workout or restructuring of such
debt; (4) any transfer of stock by a stockholder of Employer which is a partnership or corporation
to the partners or stockholders in such stockholder or any transfer of stock by a stockholder of
Employer to an entity affiliated with such stockholder or the immediate family of such stockholder
or a trust or similar entity for the benefit of such family members; or (5) any transfer or
issuance of stock in connection with an offering of the Employer’s stock in a registered public
transaction not including a transaction described in Rule 145, promulgated under the Securities Act
of 1933, as amended, provided that the Employer’s officers and Board of Directors shall not
materially change as a result thereof.

     “Change
of Control Termination” means (i) a Termination Without Cause of the
Employee’s employment by the Employer within six (6) months after a Change of Control or (ii) the
Employee’s resignation for Good Reason within six (6) months after a Change of Control.

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     “Competing
Business” means any individual or entity, other than the Employer, that is
engaging in, or proposes to engage in, the development, manufacture, distribution or sale of a
Competing Product in any country in North America, South America, Europe and Eastern Europe, and in
the countries of Russia, Australia, Japan, China, Taiwan, South Korea and India (the “Territory”);
provided; however that (i) an entity that develops, manufactures, distributes or sells a Competing
Product in a separate business unit than the business unit in which Employee is then employed shall
not be deemed a Competing Business unless Employee provides Confidential Information and/or
Proprietary Information to the business unit that is engaging in or proposes to engage in the
development, manufacture, distribution or sale of a Competing Product; and (ii) nothing in this
Agreement shall prevent Employee from conducting research at OSU for non-commercial purposes
utilizing institutional or governmental grant funds in areas relating to any Competing Product as
long as such non-commercial research is conducted in accordance with those certain
Inter-Institutional Agreements executed between OSU and the University of Tennessee Research
Foundation (“UTRF”) as of December 22, 2004 (the “IIAs”).

     “Competing
Product” means any pharmaceutical or other compound, composition,
formulation, method, process, product or material that is competitive with any product of Employer
under development, manufacture, distribution or commercialization at any time from and after
January 1, 2005 (the date of Employee’s initial employment agreement with Employer) through the
date of termination of Employee’s employment, including, without limitation, small molecules that
selectively target the androgen receptors or estrogen receptors and other hormone receptors for
purposes of treating, diagnosing, or imaging humans in health and disease. The parties agree that
the four areas of research that are described in Section 2.3 hereof as areas where Employee shall
be overseeing the ongoing work by graduate students at OSU during the term of this Agreement shall
not be deemed to be Competing Product.

     “Confidential
Information and/or Proprietary Information” means any and all:

     (a) information disclosed to Employee or known by Employee as a consequence of, or through,
Employee’s employment with the Employer or pursuant to the Employee’s prior relationship with
Employer either through his employment with OSU or under the Consulting Agreement (including
information conceived, originated, discovered, or developed in whole or in part by Employee), not
generally known in the relevant trade or industry, about the Employer’s business, products,
processes, and services; and trade secrets concerning the business and affairs of the Employer,
product specifications, data, know-how, formulae, compositions, research, processes, designs,
sketches, photographs, graphs, drawings, samples, inventions and ideas, past, current, and planned
research and development, current and planned manufacturing or distribution methods and processes,
customer lists, current and anticipated customer requirements, price lists, market studies,
business plans, computer software and programs (including object code and source code), computer
software and database technologies, systems, structures, and architectures (and related formulae,
compositions, processes, improvements, devices, know-how, inventions, discoveries, concepts, ideas,
designs, methods and information); and any other information, however documented, that is a trade
secret within the meaning of Tenn. Code §39-14-138; and

     (b) information concerning the business and affairs of the Employer (which includes historical
financial statements, financial projections and budgets, historical and projected sales,

3

 

capital spending budgets and plans, the names and backgrounds of key personnel, personnel
training and techniques and materials), however documented; and

     (c) intellectual property, inventions, methods, processes, techniques, computer programs,
devices, products, services, compounds, gene therapy products, pharmaceuticals, substances,
vectors, enzymes, genes, concepts, discoveries, improvements, and designs, whether or not patenable
in the United States or foreign countries, any trade secrets, information, procedures,
technologies, data, results, conclusions, know-how or show-how and business information; and

     (d) notes, analysis, compilations, studies, summaries, and other material prepared by or for
the Employer containing or based, in whole or in part, on any information included in the
foregoing.

     “Effective
Date” means the date stated in the first paragraph of the Agreement.

     “Employee” has the meaning stated in the first paragraph of this Agreement.

     “Employee Invention”  means any idea, invention, technique, modification, process,
improvement (whether patentable or not), industrial design (whether registerable or not), work of
authorship (whether or not copyright protection may be obtained for it), design, copyrightable
work, discovery, trademark, copyright, trade secret, formula, device, method, compound, gene,
prodrug, pharmaceutical, structure, product concept, marketing plan, strategy, customer list,
technique, blueprint, sketch, record, note, drawing, know-how, data, patent application,
continuation application, continuation-in-part application, file wrapper continuation application
or divisional application, created, conceived, or developed by the Employee, either solely or in
conjunction with others, during the Employee’s employment, or a period that includes a portion of
the Employee’s employment, that relates in any way to, or is useful in any manner in, the business
then being conducted or proposed to be conducted by the Employer, and any such item created by the
Employee, either solely or in conjunction with others, following termination of the Employee’s
employment with the Employer, that is based upon or uses Confidential Information and/or
Proprietary Information.

     “Employer”  means GTx, Inc., its successors and assigns, and any of its current or
future subsidiaries, or organizations controlled by, controlling, or under common control with it.

     “Good Reason”  means any of the following:

          (a) an adverse change in the Employee’s status, position or responsibilities (including
reporting responsibilities) which, without Employee’s consent, represents a material reduction in
or material demotion of the Employee’s status, position or responsibilities or the assignment to
the Employee of any duties or responsibilities which are materially inconsistent with such status,
position or responsibilities;

          (b) a reduction in the then current Salary or modifying, suspending, discontinuing, or
terminating any Benefit in a manner which materially and adversely affects Employee;

4

 

          (c) following a Change of Control, the relocation of the Employer’s principal Employee offices
to a location outside a thirty-mile radius of where the Employee is then permanently residing (the
“Employee’s Residence”) or the Employer’s requiring the Employee to be based at any place other
than a location within a thirty-mile radius of Employee’s Residence, except for reasonably required
travel on the Employer’s business; or

          (d) following a Change of Control, the failure of the Employer to obtain an agreement
reasonably satisfactory to Employee from any successor or assign of the Employer to assume and
agree to perform this Agreement.

     “Person” means any individual, corporation (including any non-profit corporation),
general or limited partnership, limited liability company, joint venture, estate, trust,
association, organization, or governmental body.

     “Proprietary
Items” means any Proprietary and/or Confidential Information embodied in
any document, record, recording, electronic media, formulae, notebook, plan, model, component,
device, or computer software or code, whether embodied in a disk or in any other form.

     “Salary” means as defined in Section 3.1(a).

     “Termination
With Cause” means the termination of the Employee’s employment by act of
the Board for any of the following reasons:

          (a) the Employee’s conviction for a felony;

          (b) the Employee’s theft, embezzlement, misappropriation of or intentional infliction of
material damage to the Employer’s property or business opportunities;

          (c) the Employee’s breach of the provisions contained in Section 7 or Section 8 of this
Agreement; or

          (d) the Employee’s ongoing willful neglect of or failure to perform his duties hereunder or
his ongoing willful failure or refusal to follow any reasonable, unambiguous duly adopted written
direction of the CEO that is not inconsistent with the description of the Employee’s duties set
forth in Section 2.3, if such willful neglect or failure is materially damaging or materially
detrimental to the business and operations of the Employer; provided that Employee shall have
received written notice of such failure and shall have continued to engage in such failure after 30
days following receipt of such notice from the CEO, which notice specifically identifies the manner
in which the CEO believes that Employee has engaged in such failure. For purposes of this
subsection, no act, or failure to act, shall be deemed “willful” unless done, or omitted to be
done, by Employee not in good faith, and without reasonable belief that such action or omission was
in the best interest of the Employer.

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     “Termination
Without Cause” means the termination of the Employee’s employment by the
Employer for any reason other than Termination With Cause, or termination by the Employer due to
Employee’s death or disability.

     2. EMPLOYMENT TERMS AND DUTIES

          2.1 Employment

          The Employer hereby employs the Employee, and the Employee hereby accepts employment by the
Employer, upon the terms and conditions set forth in this Agreement.

          2.2 Term

          Either the Employee or the Employer may terminate this Agreement at any time and the
Employee’s employment and compensation with or without cause or notice, at any time, at either the
Employer’s or the Employee’s option. No company officer or manager has the authority to enter into
any other agreement for employment for a specified period of time, or to modify or to make any
agreement contrary to the foregoing, except by written amendment to this Agreement, dated and
signed by the Chief Executive Officer (“CEO”) or the President of the Employer.

          2.3 Duties

          The Employee will have such duties as are assigned or delegated to the Employee by the Board
of Directors, CEO or the President, and will initially serve as Vice President, Preclinical
Research & Development for the Employer. During the term of this Agreement, the Employee will
devote 100% of his full time, attention, skill and energy to the business of the Employer, which
will include Employee spending at least 50% of his annual work time at the offices of Employer in
Memphis, Tennessee. Additionally, Employee agrees that he will use his best efforts to promote the
success of the Employer’s business, and will cooperate fully with the Board of Directors, CEO and
the President in the advancement of the best interest of the Employer. Employee commits that,
without first obtaining the prior written approval of Employer, he will refrain from publishing,
and he will not allow those working for him to publish, any abstracts, articles or other
publications arising from research conducted for or on behalf of Employer that pertain to
Employer’s products or business, including specifically compounds that are being tested from time
to time by Employer and any developmental work or other services that are being undertaken by
Employee for Employer, except as may be approved in accordance with the policies of Employer. If
Employee or any OSU employee under his direction continues to work on compounds, products or other
inventions that are included within the scope of the IIAs or covered under a separate license
agreement between OSU and Employer, Employee agrees to make available to GTx all notebooks and
other evidences of research and inventions pertaining to such compounds, products and inventions,
which are maintained at OSU, any time upon request by Employer, subject to rule, regulations and
procedures of OSU. Additionally, Employee agrees to provide Employer regular verbal (and at such
other times as Employer may reasonably request, written) reports containing the data and results of
his efforts and the efforts of all others working under Employee’s supervisions or control in
Preclinical Research and Development.

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          Employee agrees that his only other non-Employer duties will be limited to his overseeing
approximately 7 graduate students currently enrolled at OSU who are working in the following areas
of research and development:

     1. Cytotoxic phospholipids, bis-indoles, thiazolidines, and calpain inhibitors for cancer;

     2. Imidazoline and amidine-based peptidomimetics for leukemia;

     3. Dianitroanilines for cancer ortuberculosis; and

     4. Flavopiridol, clofarabine, 17-AAG, SAHA, or botanicals (excluding, however,
phytoestrogens) for cancer;

and will not be expanded to include any compounds, molecular targets, or other intellectual
property developed within GTx for the period of time set forth in Section 8.1 hereof, without first
obtaining the prior written approval of Employer. As an employee of the Employer, the
responsibilities and duties of the Employee shall include managing and overseeing and being
personally responsible for all preclinical research and development projects, including
specifically those for selective androgen receptor modulator compounds, selective estrogen receptor
modulator compounds, nuclear hormone receptor ligands, anti-cancer drugs and other similar
compounds of the Employer. Employee agrees to abide by all bylaws, policies, practices, procedures
or rules of Employer.

     3. COMPENSATION

          3.1 Basic Compensation

          (a) Salary. As of the Effective Date, the Employee was paid approximately for
each of the twenty-six pay periods established by GTx for 2007 a gross salary of
approximately $10,000 per pay period (the “Salary”), which is the equivalent of $260,000 per
year. Additionally, Employee’s Salary may be adjusted from time to time by agreement of the
Employee and the CEO.

          (b) Benefits. The Employee will, during his employment with the Employer, be
permitted to participate in such life insurance, hospitalization, major medical, short term
disability, long term disability, 401K plan and other employee benefit plans of the Employer
that may be in effect from time to time (collectively, the “Benefits”). The Employer may
withhold from any Salary or Benefits payable to Employee all federal, state, local, and
other taxes and other amounts as permitted or required pursuant to law, rules or
regulations.

     4. FACILITIES AND EXPENSES

          4.1 General

          The Employer will furnish the Employee office space, equipment, supplies, and such other
facilities and personnel as the Employer deems necessary or appropriate for the

7

 

performance of the Employee’s duties under this Agreement, including sufficient capital
equipment as determined by the CEO to support the needs of a preclinical research & development
department. The Employer will pay on behalf of the Employee (or reimburse the Employee for)
reasonable expenses incurred by the Employee at the request of, or on behalf of, the Employer in
the performance of the Employee’s duties pursuant to this Agreement, and in accordance with the
Employer’s employment policies, including reasonable expenses for travel between Employee’s
residence in Upper Arlington, Ohio and Employer’s headquarters in Memphis, Tennessee and all
reasonable expenses incurred by the Employee in attending conventions, seminars, and other business
meetings and appropriate business entertainment activities, and for promotional expenses.

     5. VACATIONS AND HOLIDAYS

     Employee will be entitled to three (3) weeks paid vacation each year in accordance with the
vacation policies of the Employer in effect from time to time. Vacation must be taken by the
Employee at such time or times as approved by the CEO or President. Employee will also be entitled
to the paid holidays set forth in the Employer’s policies from and after the Effective Date.
Vacation days and holidays during any year that are not used by the Employee during such year may
not be used in any subsequent year.

     6. TERMINATION

          6.1 Events of Termination

          Either the Employee or Employer may terminate this Employment Agreement (with the exception of
the provisions of Section 7 and 8 which shall survive termination of this Agreement) and Basic
Compensation with or without cause or notice, at any time at either the Employee’s or the
Employer’s option.

          6.2 The employment of Employee shall terminate on the date of the Employee’s death, in which
event Employee’s Basic Compensation owing to Employee through the date of Employee’s death shall be
paid to his estate. Employee’s estate will not be entitled to any other compensation or payments
under this Agreement.

          6.3 The Employer shall be released from any and all further obligations under this Agreement,
except the Employer shall be obligated to pay Employee his Basic Compensation owing to Employee
through the day on which Employee’s employment is terminated and as provided in Section 6.4, as
applicable. Employee’s obligation under Sections 7 and 8 shall continue pursuant to the terms and
conditions of this Agreement.

          6.4 As additional consideration for the covenants in Section 7 and Section 8, in the event of
a Change of Control Termination, Employee shall receive the equivalent of the Salary he would be
entitled to receive over twenty-six pay periods during a period of one (1) calendar year at the
time of his termination of Employment, with such amount payable for a period of one (1) year from
the date of termination in accordance with Employer’s then current payroll policies and procedures,
less deductions required by law; provided that if Employee shall terminate his employment on
account of a reduction in his Salary or Benefits, as provided in

8

 

paragraph (b) of the definition of “Good Reason”, then Employee shall be entitled to receive
hereunder the equivalent Salary he was making immediately prior to such reduction.

     7. NON-DISCLOSURE COVENANT; EMPLOYEE INVENTIONS

          7.1 Acknowledgements by the Employee

          The Employee acknowledges and agrees that (a) during the course of his employment and as a
part of his employment, the Employee will be afforded access to Confidential Information and/or
Proprietary Information; (b) public disclosure of such Confidential Information and/or Proprietary
Information could have an adverse effect on the Employer and its business; (c) because the Employee
possesses substantial technical expertise and skill with respect to the Employer’s business, the
Employer desires to obtain exclusive ownership of each Employee Invention, and the Employer will be
at a substantial competitive disadvantage if it fails to acquire exclusive ownership of each
Employee Invention; and (d) the provisions of this Section 7 are reasonable and necessary to
prevent the improper use or disclosure of Confidential Information and/or Proprietary Information
and to provide the Employer with exclusive ownership of all Employee Inventions.

          7.2 Agreements of the Employee

          In consideration of the compensation and benefits to be paid or provided to the Employee by
the Employer under this Agreement and in consideration of Employee’s receipt of grants of options
to purchase Employer stock and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Employee covenants and agrees as follows:

          (a) Confidentiality.

               (i) That all of such Confidential Information and/or Proprietary Information
are a unique asset of the business of Employer, the disclosure of which would be
damaging to Employer.

               (ii) That the Employee will not at any time, whether during or after
termination or cessation of the Employee’s employment, except as authorized by
Employer and for its benefit, use, divulge or disclose (or enable anyone else to
use, divulge or disclose) to any person, association or entity any Confidential
Information and/or Proprietary Information which the Employee presently possesses or
which the Employee may obtain during the course of the Employee’s employment with
respect to the business, finances, customers or affairs of Employer or trade
secrets, developments, methods or other information and data pertaining to the
Employer’s business. The Employee shall keep strictly confidential all matters and
information entrusted to the Employee and shall not use or attempt to use any such
Confidential Information and/or Proprietary Information in any manner which may
injure or cause loss or may be calculated to injure or cause loss, whether directly
or indirectly, to Employer.

9

 

               (iii) That during the course of this Agreement or at any time after
termination, Employee will keep in strictest confidence and will not disclose or
make accessible to any other person without the prior written consent of Employer,
the Confidential Information and/or Proprietary Information; Employee agrees: (a)
not to use any such Confidential Information and/or Proprietary Information for
himself or others; and (b) not to take any such material or reproductions thereof
from the Employer’s facilities at any time during his employment except, in each
case, as required in connection with the Employee’s duties to the Employer.

               (iv) Employee agrees to hold in confidence, and not to distribute or
disseminate to any person or entity for any reason, any Confidential Information
and/or Proprietary Information of Employer under this Agreement, or information
relating to experiments or results obtained based on the duties of Employee, except
for information which: (a) is in or which becomes a part of the public domain not as
a result of a breach of this Agreement, (b) information lawfully received from a
third party who had the right to disclose such information or (c) is required by
legal process before a court of proper jurisdiction (by oral questions, deposition,
interrogatories, requests for information or documents, subpoena, civil
investigative domain or other similar process) to disclose all or any part of any
Confidential Information and/or Proprietary Information, provided that Employee will
provide Employer with prompt notice of such request or requirement, as well as
notice of the terms and circumstances surrounding such request or requirements, so
that Employer may seek an appropriate protective order or waive compliance with the
provisions of this Agreement. In such case, the parties will consult with each
other on the advisability of pursuing any such order or other legal action or
available step to resist or narrow such request or requirement. If, failing the
entry of a protective order or the receipt of a waiver hereunder, Employee is, in
the opinion of counsel reasonably acceptable to Employer, legally compelled to
disclose Confidential Information and/or Proprietary Information, Employee may
disclose that portion of such information which counsel advises is necessary to
disclose, but Employee will not oppose any action by Employer to prevent disclose
pursuant to an appropriate protective order or to pursue other reliable assurances
that confidential treatment will be accorded the disclosure of such information.

               (v) Upon written notice by Employer, Employee shall promptly redeliver to
Employer, or, if requested by Employer, promptly destroy all written Confidential
Information and/or Proprietary Information and any other written material containing
any information included in the Confidential Information and/or Proprietary
Information (whether prepared by Employer, Employee, or a third party), and will not
retain any copies, extracts or other reproductions in whole or in part of such
written Confidential Information and/or Proprietary Information (and upon request
certify such redelivery of destruction to Employer in a written instrument
reasonably acceptable to Employer and its counsel).

10

 

               (vi) This Agreement and the terms and conditions recited herein are
confidential and non-public, except as may be expressly permitted by the Employer.
The Employee agrees not to disclose the contents of this Agreement to any person or
entity, including, but not limited to, the press, other media, any public body, or
any competitor of Employer, except to the Employee’s legal counsel and the
appropriate Dean of Employee’s Department at The Ohio State University, or as may be
required by law.

               (vii) Any trade secrets of the Employer will be entitled to all of the
protections and benefits of State of Tennessee law and any other applicable law. If
any information that the Employer deems to be a trade secret is found by a court of
competent jurisdiction not be to a trade secret for purposes of this Agreement, such
information will, nevertheless, be considered Confidential Information and/or
Proprietary Information for purposes of this Agreement. The Employee hereby waives
any requirement that the Employer submits proof of the economic value of any trade
secret or posts a bond or other security.

               (viii) None of the foregoing obligations and restrictions applies to any part
of the Confidential Information and/or Proprietary Information that the Employee
demonstrates was or became generally available to the public other than as a result
of a disclosure by the Employee.

               (ix) The Employee will not remove from the Employer’s premises (except to the
extent such removal is for purposes of the performance of the Employee’s duties at
home or while traveling, or except as otherwise specifically authorized by the
Employer) any Proprietary Items. The Employee recognizes that, as between the
Employer and the Employee, all of the Proprietary Items, whether or not developed by
the Employee, are the exclusive property of the Employer. Upon termination of this
Agreement by either party, or upon the request of the Employer during the employment
of Employee, the Employee will return to the Employer all of the Proprietary Items
in the Employee’s possession or subject to the Employee’s control, and the Employee
shall not retain any copies, abstracts, sketches, or other physical or electronic
embodiment of any of the Proprietary Items.

          (b) Employee Inventions.

          (i) Each Employee Invention will belong exclusively to the Employer. Employee
agrees that Employer shall have sole and exclusive ownership rights in any
conception, invention, trade secrets, information, ideas, improvement, substance,
know-how, whether or not patentable, arising out of, resulting from, or derivative
of: (1) the work or services of Employee, or (2) within the scope of the duties of
Employee, or (3) using any materials, compounds, devices, or monies of Employer.
Any resulting or derivative rights, including patent rights, shall become the
exclusive property of Employer and Employer shall be entitled to the entire right,
title and interest with respect hereto. Employee agrees, without additional
compensation, to convey, assign the entire right, title, and interest in

11

 

and to any inventions for the United States and all foreign jurisdictions to
Employer arising out of, resulting from, or derivative of: (1) the work or services
of Employee, or (2) within the scope of the duties of Employee, or (3) using any
materials, compounds, devices, or monies.

          (ii) Employer shall retain the entire right, title and interest in and to any
and all Confidential Information and/or Proprietary Information provided by Employer
to Employee and to any methods, compounds, improvements, substances, and
compositions using or incorporating such Confidential Information and/or Proprietary
Information.

          (iii) Employee agrees that Confidential Information and/or Proprietary
Information provided to the Employee by Employer shall be used for work purposes
only and shall not be used for any other uses, studies, experiments, or tests.

          (iv) Employee agrees that he will promptly disclose to Employer, or any persons
designated by Employer, all Employee Inventions, made or conceived or reduced to
practice or learned by him, either alone or jointly with others, during the
employment of the Employee. The Employee further agrees to assist Employer in every
proper way (but at Employer’s expense) to obtain and from time to time enforce
patents, copyrights or other rights on Employee Inventions in any and all countries,
and to that end Employee will execute all documents necessary: (a) to apply for,
obtain and vest in the name of Employer alone (unless Employer otherwise directs)
letters patent, copyrights or other analogues protection in any country throughout
the world and when so obtained or vested to renew and restore the same; and (b) to
defend (including the giving of testimony and rendering any other assistance) any
opposition proceedings in respect of such applications and any opposition
proceedings or petitions or applications for revocation of such letters patent,
copyright or other analogous protection. Employee’s obligation to assist Employer
in obtaining and enforcing patents and copyrights for Employee Inventions in any and
all countries shall continue beyond and after the termination of Employee.

          (v) Any copyrightable work whether published or unpublished created by Employee
in connection with or during the performance of services below shall be considered a
work made for hire, to the fullest extent permitted by law and all right, title and
interest therein, including the worldwide copyrights, shall be the property of
Employer as the employer and party specially commissioning such work. In the event
that any such copyrightable work or portion thereof shall not be legally qualified
as a work made for hire, or shall subsequently be so held, Employee agrees to
properly convey to Employer, without additional compensation, the entire right,
title and interest in and to such work or portion thereof, including but not limited
to the worldwide copyrights, extensions of such copyrights, and renewal copyrights
therein, and further including all rights to reproduce the copyrighted work in
copies or phonorecords, to prepare derivative works based on the copyrighted work,
to distribute copies of the copyrighted

12

 

work, to perform the copyrighted work publicly, to display the copyrighted work
publicly, and to register the claim of copyright therein and to execute any and all
documents with respect hereto.

          (vi) Employee may not publish or disclose any Confidential Information and/or
Proprietary Information relating to, arising from, derivative of, or as a result of
his employment pursuant to this Agreement, including but not limited to,
information, improvements, results, experiments, data, or methods that makes
reference to any of the Confidential Information and/or Proprietary Information.
Any work performed under, or arising from, or a result of his employment with
Employer shall not be published or disclosed in written, electronic, or oral form
without the express written permission of Employer.

          7.3 Disputes or Controversies

          The Employee recognizes that should a dispute or controversy arising from or relating to this
Agreement be submitted for adjudication to any court, arbitration panel, or other third party, the
preservation of the secrecy of Confidential Information and/or Proprietary Information may be
jeopardized. All pleadings, documents, testimony, and records relating to any such adjudication
will be maintained in secrecy and will be available for inspection by the Employer, the Employee,
and their respective attorneys and experts, who will agree, in advance and in writing, to receive
and maintain all such information in secrecy, except as may be limited by them in writing.

     8. NON-COMPETITION

          8.1 Acknowledgments by the Employee

          Except for circumstance involving a Change of Control as described in Section 8.4 below,
Employee understands and recognizes that the Employee’s services provided to Employer are special,
unique, unusual, extraordinary and intellectual in character, and Employee agrees that, during the
employment of Employee and for a period of two (2) years from the date of termination of the
Employee’s employment with Employer, he will not in any manner, directly or indirectly, on behalf
of himself or any Person, firm, partnership, joint venture, corporation or other business entity,
engage or invest in, own, manage, operate, finance, control or participate in the ownership,
management, operation, financing, or control of, be employed by, associated with, or in any manner
connected with, lend the Employee’s name or similar name to, lend Employee’s credit to or render
services or advice to, enter into or engage in any Competing Business; provided, however, that
Employee may purchase or otherwise acquire up to (but not more than) one percent of any class of
securities of any enterprise (but without otherwise participating in the activities of such
enterprise) if such securities are listed on any national or regional securities exchange or have
been registered under Section 12(g) of the Securities Exchange Act of 1934.

          8.2 Except for circumstances involving a Change of Control as described in Section 8.4 below,
in consideration of the acknowledgements by the Employee, and in consideration of the compensation
and benefits to be paid or provided to the Employee by the

13

 

Employer, the Employee covenants that he will not, directly or indirectly, whether for the
Employee’s own account or the account of any other person (i) at any time during the employment of
Employee and for a period of two (2) years from the termination of the Employee’s employment with
Employer, solicit, employ, or otherwise engage as an employee, independent contractor, or
otherwise, any person who is or was an employee of the Employer at any time during the Employee’s
employment with Employer or in any manner induce or attempt to induce any employee of the Employer
to terminate his employment with the Employer; or (ii) at any time during the employment of
Employee with Employer and for two (2) years from the termination of Employee’s employment with
Employer, interfere with the Employer’s relationship with any person, including any person who at
any time during the Employee’s employment with Employer was an employee, contractor, supplier, or
customer of the Employer.

          8.3 In further consideration of these premises, Employee agrees that he will not at any time
during or after Employee’s employment with Employer, disparage the Employer or any of its
shareholders, directors, officers, employees, or agents.

          8.4 Change of Control. In the event of a Change of Control Termination, Employee’s
obligations under Sections 8.1 and 8.2 above shall expire one (1) year from the date of termination
of his employment with Employer (or any entity acquiring Employer as a result of a Change of
Control).

          8.5 If any covenant in Section 8 is held to be unreasonable, arbitrary, or against public
policy, such covenant will be considered to be divisible with respect to scope, time, and
geographic area, and such lesser scope, time, or geographic area, or all of them, as a court of
competent jurisdiction may determine to be reasonable, not arbitrary, and not against public
policy, will be effective, binding, and enforceable against the Employee.

          The period of time applicable to any covenant in Section 8 will be extended by the duration of
any violation by the Employee of such covenant.

          The Employee will, while the covenants under Section 8 are in effect, give notice to the
Employer, within ten days after accepting any other employment, of the identity of the Employee’s
employer. The Employer may notify such employer that the Employee is bound by this Agreement and,
at the Employer’s election, furnish such employer with a copy of this Agreement or relevant
portions thereof.

     9. GENERAL PROVISIONS

          9.1 Injunctive Relief and Additional Remedy

          The Employee acknowledges that the injury that would be suffered by the Employer as a result
of a breach of the provisions of this Agreement (including any provision of Sections 7 and 8) would
be irreparable and that an award of monetary damages to the Employer for such a breach would be an
inadequate remedy. Consequently, the Employer will have the right, in addition to any other rights
it may have, to obtain injunctive relief to restrain any breach or threatened breach or otherwise
to specifically enforce any provision of this Agreement, and the Employer will not be obligated to
post bond or other security in seeking such relief. Without limiting the Employer’s rights under
this Section 9 or any other remedies of the Employer, if the

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Employee breaches any of the provisions of Section 7 or 8, the Employer will have the right to
cease making any payments otherwise due to the Employee under this Agreement.

          9.2 Covenants of Sections 7 and 8 are Essential and Independent Covenants

          The covenants by the Employee in Sections 7 and 8 are essential elements of this Agreement,
and without the Employee’s agreement to comply with such covenants, the Employer would not have
entered into this Agreement or employed or continued the employment of the Employee. The Employer
and the Employee have had the right to independently consult their respective counsel and to have
been advised in all respects concerning the reasonableness and propriety of such covenants, with
specific regard to the nature of the business conducted by the Employer.

          The Employee’s covenants in Sections 7 and 8 are independent covenants and the existence of
any claim by the Employee against the Employer under this Agreement or otherwise will not excuse
the Employee’s breach of any covenant in Section 7 or 8.

          If the Employee’s employment hereunder is terminated by either party, this Agreement will
continue in full force and effect as is necessary or appropriate to enforce the covenants and
agreements of the Employee in Sections 7 and 8.

          9.3 Representations and Warranties by the Employee

          The Employee represents and warrants to the Employer that the execution and delivery by the
Employee of this Agreement do not, and the performance by the Employee of the Employee’s
obligations hereunder will not, with or without the giving of notice or the passage of time, or
both: (a) violate any judgment, writ, injunction, or order of any court, arbitrator, or
governmental agency applicable to the Employee; or (b) conflict with, result in the breach of any
provisions of or the termination of, or constitute a default under, any agreement to which the
Employee is a party or by which the Employee is or may be bound.

          9.4 Waiver

          The rights and remedies of the parties to this Agreement are cumulative and not alternative.
Neither the failure nor any delay by either party in exercising any right, power, or privilege
under this Agreement will operate as a waiver of such right, power, or privilege, and no single or
partial exercise of any such right, power, or privilege will preclude any other or further exercise
of such right, power, or privilege or the exercise of any other right, power, or privilege. To the
maximum extent permitted by applicable law, (a) no claim or right arising out of this Agreement can
be discharged by one party, in whole or in part, by a waiver or renunciation of the claim or right
unless in writing signed by the other party; (b) no waiver that may be given by a party will be
applicable except in the specific instance for which it is given; and (c) no notice to or demand on
one party will be deemed to be a waiver of any obligation of such party or of the right of the
party giving such notice or demand to take further action without notice or demand as provided in
this Agreement.

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          9.5 Binding Effect; Delegation of Duties Prohibited

          This Agreement shall inure to the benefit of, and shall be binding upon, the parties hereto
and their respective successors, assigns, heirs, and legal representatives, including any entity
with which the Employer may merge or consolidate or to which all or substantially all of its assets
may be transferred. The duties and covenants of the Employee under this Agreement, being personal,
may not be delegated.

          9.6 Notices

          All notices, consents, waivers, and other communications under this Agreement must be in
writing and will be deemed to have been duly given when (a) delivered by hand (with written
confirmation of receipt), (b) sent by facsimile (with written confirmation of receipt), provided
that a copy is mailed by registered mail, return receipt requested, or (c) when received by the
addressee, if sent by a nationally recognized overnight delivery service (receipt requested), in
each case to the appropriate addresses and facsimile numbers set forth below (or to such other
addresses and facsimile numbers as a party may designate by notice to the other parties):

	 	 	 
	     If to Employer:

	 	GTx,Inc
	 

	 	3 N. Dunlap Ave, 3rd Floor
	 

	 	Memphis, Tennessee 38163
	 

	 	Attention: Vice President, General Counsel
	 

	 	Facsimile No.: 901-523-9772
	 
	 	 
	     If to the Employee:

	 	James T. Dalton
	 

	 	4180 Greenview Road
	 

	 	Upper Arlington, Ohio 43220

     Employee shall notify Employer in writing of any change of his address. Otherwise, Employer
shall send all notices to Employee’s address herein.

          9.7 Entire Agreement; Amendments

          This Agreement contains the entire agreement between the parties with respect to the subject
matter hereof and supersedes all prior agreements and understandings, oral or written, between the
parties hereto with respect to the subject matter hereof. This Agreement may not be amended
orally, but only by an agreement in writing signed by the parties hereto.

          9.8 Governing Law

          This Agreement will be governed by the laws of the State of Tennessee without regard to
conflicts of laws principles.

16

 

          9.9 Jurisdiction

          Any action or proceeding seeking to enforce any provision of, or based on any right arising
out of, this Agreement shall be brought against either of the parties in the courts of the State of
Tennessee, County of Shelby, or, if it has or can acquire jurisdiction, in the United States
District Court for the Western District of Tennessee, and each of the parties consents to the
jurisdiction of such courts (and of the appropriate appellate courts) in any such action or
proceeding and waives any objection to venue laid therein. Process in any action or proceeding
referred to in the preceding sentence may be served on either party anywhere in the world.

          9.10 Section Headings, Construction

          The headings of Sections in this Agreement are provided for convenience only and will not
affect its construction or interpretation. All references to “Section” or “Sections” refer to the
corresponding Section or Sections of this Agreement unless otherwise specified. All words used in
this Agreement will be construed to be of such gender or number as the circumstances require.
Unless otherwise expressly provided, the word “including” does not limit the preceding words or
terms.

          9.11 Severability

          If any provision of this Agreement is held invalid or unenforceable by any court of competent
jurisdiction, the other provisions of this Agreement will remain in full force and effect. Any
provision of this Agreement held invalid or unenforceable only in part or degree will remain in
full force and effect to the extent not held invalid or unenforceable.

          9.12 Counterparts

          This Agreement may be executed in one or more counterparts, each of which will be deemed to be
an original copy of this Agreement and all of which, when taken together, will be deemed to
constitute one and the same agreement.

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

	 	 	 	 	 
	 	JAMES T. DALTON

 	 
	 	/s/ James T. Dalton
 	 
	 	 	 
	 	 	 
	 
	 	GTx, Inc.

 	 
	 	By:  	/s/ Henry P. Doggrell
 	 
	 	 	Name:  	Henry P. Doggrell 	 
	 	 	Title:  	 V.P., General Counsel 	 
	 

17

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