Document:

Clinical and Commercial Manufacturing and Supply Agreement

 EXHIBIT 10.8 
 Portions Subject to Confidential Treatment Request Under Rule 24b-2 

CLINICAL AND COMMERCIAL MANUFACTURING 
 AND SUPPLY AGREEMENT 
 THIS CLINICAL AND COMMERCIAL MANUFACTURING AND
SUPPLY AGREEMENT (this “Agreement”) is made effective as of the 22nd day of December, 2010 (“Effective Date”) by and between BAXTER ONCOLOGY GmbH, with an address at Kantstrasse 2, 33790
Halle / Westphalia, Germany (“Baxter”) and CELATOR PHARMACEUTICALS, INC., a Delaware corporation, having offices at 303B College Road East, Princeton, New Jersey 08540 (“Celator”). 

RECITALS 

1. Celator is among other pharmaceutical activities engaged in the development of pharmaceutical products; 

2. Baxter is among other pharmaceutical activities engaged in the formulation, filling, inspection, labeling and packaging of
pharmaceutical products for various pharmaceutical companies, including competitors of Celator and Baxter; 
 3. Celator
and Baxter desire to have Baxter formulate, fill, inspect, package, label, and test the pharmaceutical product, CPX-351, for Celator for clinical and/or commercial use. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, Celator and Baxter, hereinafter sometimes referred to as “Party” or
“Parties”, agree as follows: 
 Article 1, DEFINITIONS 

1.1 As used in this Agreement, the following words and phrases shall have the following meanings: 

“Active Pharmaceutical Ingredient” or “API” shall collectively refer to cytarabine and daunorubicin.

 “Affiliate” shall mean any corporation or other business entity directly or indirectly controlled by,
controlling, or under common control with a Party or its parent corporation, the term “control” (including, with correlative meaning, the terms “controlled by,” “controlling” and “under common control
with”) means: (a) in the case of corporate entities, direct or indirect ownership of at least fifty percent (50%) of shares of capital stock having the right to vote for the election of directors, or (b) the possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of such Party, whether through the ownership of voting securities, by contract or otherwise, or such other relationship as, in fact, constitutes actual
control. 

 “Annual Obligation” shall be defined as set forth in Article 4. 

“Batch” shall mean a specific quantity of a Product comprising a number of Units mutually agreed upon in writing between
the Parties in the Product Master Plan, and that (a) is intended to have uniform character and quality within specified limits, and (b) is Produced according to a single manufacturing order during the same cycle of Production. 

“Baxter SOPs” shall mean Baxter’s Standard Operating Procedures relating to the Product, which shall be reviewed
and approved by Celator prior to entering into the Product Master Plan. Celator shall have the right to access and inspect SOPs during annual audits and may request and review specific SOPs at any time. 

“Baxter-supplied Components” shall mean all Components other than Celator-supplied Components. 

“Celator-supplied Components” shall mean API, DSPC and DSPG supplied by Celator to Baxter. 

“Clinical Product” means vials of Product Produced by Baxter for clinical use by Celator as set forth in a Product
Master Plan. 
 “Celator Trademarks” shall mean the proprietary mark(s) for Product owned by Celator.

 “Commercial Product” means vials of Product Produced for commercial sale. 

“Components” shall mean all components, including the Raw Materials and Packaging Materials, used by Baxter in the
Production of Product under this Agreement. Components are listed in the Product Master Plan. 
 “Component
Specifications” shall mean the specifications and testing to be performed for the Components, as set forth in the Product Master Plan. 
 “Confidential Information” shall be defined as set forth in Article 18. 
 “Contract Year” shall be defined as (i) the calendar year in which Celator obtains Regulatory Approval allowing the commercialization of Product in the United States or Europe and
(ii) each successive year of the Term. 
 “Current Good Manufacturing Practices” or
“cGMP” shall mean (a) the good manufacturing practices required by the Regulatory Authorities and set forth in the applicable law, policies or guidelines, in effect at any time during the term of this Agreement, for the
Production and testing of pharmaceutical materials as applied solely to Product. 

  
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 “DSPC” shall mean the excipient, distearoylphosphatidyl choline.

 “DSPG” shall mean the excipient, distearoylphosphatidyl glycerol. 

“Effective Date” shall mean the date first set forth above. 

“FDA” shall mean the United States Food and Drug Administration or any successor entity thereto. 

“FD&C Act” shall mean the United States Federal Food and Cosmetic Act, as amended, or any corresponding Act in each
jurisdiction. 
 “Firm Purchase Order” shall be defined as set forth in Section 4.4. 

“Intellectual Property” shall mean ideas, concepts, discoveries, inventions, developments, know-how, trade secrets,
techniques, methodologies, modifications, innovations, improvements, writings, documentation, data and rights (whether or not protectable under state, federal or foreign patent, trademark, copyright or similar laws) or the like, whether or not
written or otherwise fixed in any form or medium, regardless of the media on which contained and whether or not patentable or copyrightable. 
 “Inventions” shall mean any inventions, discoveries, innovations, methods, improvements, processes, techniques or other valuable developments, whether patentable or copyrightable or not,
relating to a Product, the API or their manufacture, arising out of the performance of services under this Agreement by Baxter and/or any use of either the Celator Intellectual Property and/or the API. For the avoidance of doubt, Inventions include
Process Inventions, as defined below. 
 “Long Range Forecast” shall be defined as set forth in
Section 4.2. 
 “Master Batch Record” or “MBR” shall mean, with respect to each
Presentation of Clinical Product or Commercial Product to be Produced hereunder, a formal set of instructions for the Production of each Presentation of such Product. The MBR shall be developed and maintained in Baxter’s standard format by
Baxter, using Celator’s master formula and technical support. 
 “Maximum Supply Obligation” shall mean
Baxter’s supply obligation as set forth in Article 4. 
 “NDA” shall mean the FDA-required New Drug
Application (applicable for U.S. production only). 
 “Packaging Materials” as used in this Agreement shall
mean material employed in the packaging of the Product, including the Baxter standard packaging material for outer packaging used for transportation or shipment to a distributor. Packaging Materials are referred to as primary or secondary according
to whether or not they are intended to be in direct contact with the Product. All Packaging Materials are listed in the Product Master Plan. 

  
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 “Pick-Up Date” shall mean the date that Product is Released by Baxter to
Celator and made available to Celator or its designated carrier for pick-up at Baxter’s facility. 

“Presentation” shall mean the specific formula and Components for the Product. 

“Process Inventions” shall mean any Inventions that are new manufacturing technologies, methods, processes or
techniques, or are improvements to existing manufacturing technologies, methods, processes or techniques, and that are broadly applicable to pharmaceutical products in general. For purposes of clarity, Process Inventions shall not include such
Inventions that (i) are applicable only to Product and/or the API and/or (ii) require the use of Product and/or the API. 
 “Produce” or “Production” shall mean the formulation, filling, packaging, inspecting, labeling, and testing of Product by Baxter. 

“Product” shall mean Clinical Product or Commercial Product, as the case may be, and as further specified in the Product
Master Plan. 
 “Product Master Plan” shall mean a written plan executed by the Parties in conjunction with
this Agreement relating to Product Produced hereunder, which may include, without limitation, Product, Product Specifications, Components, Component Specifications, Regulatory Authorities, the countries where such Product will be used in clinical
trials or sold commercially, Presentations, and pricing for such Product Produced under this Agreement. 
 “Production
Price” shall be defined as set forth in Section 5.1. 
 “Product Specifications” shall mean, with
respect to Product, the specifications and testing to be performed for the Raw Materials, the Product, and/or the stability program that are set forth in Baxter’s SOPs and the Master Batch Records. The Product Specifications include all tests
that Baxter is required to conduct or cause to be conducted as specified in the Product Master Plan. The Product Specifications may be modified from time to time only by a written agreement of Celator and Baxter. 

“Purchase Order” shall mean written orders from Celator to Baxter which shall specify (a) the quantity of Product
ordered, (b) shipping instructions (e.g., choice of container, temperature requirements), (c) requested pick-up dates, and (d) delivery destinations. 
 “Purchase Price” shall be defined as set forth in Section 5.1. 

  
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 “Qualified Person” or “QP” shall mean the person designated by
Directive 2001/83/EC Article 48-52. 
 “Quality Agreement” shall mean a written agreement executed by the
Parties in conjunction with this Agreement, under which the Parties allocate the pharmaceutical responsibilities. 

“Raw Materials” shall mean all materials used by Baxter in the Production of Product under this Agreement with the
exception of Packaging Materials. All Raw Materials are listed in the Product Master Plan. 
 “Regulatory
Approval” shall mean all authorizations by the appropriate Regulatory Authority for use of Product in clinical trials and/or as necessary for commercial sale in a jurisdiction, including without limitation, approval of labeling, price,
reimbursement and Production. 
 “Regulatory Authority” shall mean the FDA, the EMA, the BfArM in Germany and
the respective Regulatory Authorities in other European countries, in Japan, in Canada and in such other jurisdictions as are set forth in the Product Master Plan or any successor entity thereto. 

“Released” or “Release” shall mean Baxter’s release to Celator of a Batch of Product by a Baxter
Qualified Person. 
 “Released Executed Batch Record” shall mean the completed batch record and associated
deviation reports, investigation reports, certificates of compliance and certificates of analysis created for each Batch of Product as specified in the Product Master Plan. 
 “Reservation Fees” shall be the fees payable by Celator for modification or cancellation of a Firm Purchase Order as set forth in the Product Master Plan. 

“Rolling Forecast” shall mean Celator’s projected requirements for Product for each of the upcoming
****************. 
 “Term” shall be defined as set forth in Section 8.1 of this Agreement 

“Testing Standards and Procedures” shall mean, with respect to Product Produced hereunder, the written standards and
procedures for evaluating compliance with the applicable Product Specifications, as mutually agreed upon in writing by Celator and Baxter, and incorporated in the Product Master Plan. 

“Unit” shall mean an individually packaged dose of a Product, including by way of example only, vial, as specified in
the Product Master Plan. 

  
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 Article 2, PRODUCT MASTER PLAN AND QUALITY AGREEMENT 

2.1 Product Master Plan. For Clinical Product or Commercial Product to be Produced by Baxter hereunder, the Parties have agreed in
writing upon a Product Master Plan. Baxter shall not be required to schedule any Production until a Product Master Plan for such Product has been approved in writing by both Baxter and Celator. 

2.2 Quality Agreement. For the Production by Baxter hereunder, the Parties have entered into a Quality Agreement to allocate and
coordinate the pharmaceutical responsibilities. The Parties agree that Production will not be scheduled until a Quality Agreement has been signed by both Celator and Baxter. 
 2.3 Amendment. This Agreement, the Quality Agreement and the Product Master Plan may be amended from time to time upon mutual written agreement of the Parties. The Quality Agreement and the Product
Master Plan shall be deemed to be incorporated herein by reference and made an integral part of this Agreement. In case of any inconsistencies between this Agreement and the Quality Agreement or the Product Master Plan, the terms and provisions of
the Quality Agreement shall prevail for matters of quality and the terms and provisions of this Agreement shall prevail for all other matters. 
 2.4 Effect of Failure to Execute Plans or Addendum. Failure to execute a Quality Agreement or Product Master Plan with respect to the Product will not relieve either Party of any obligation
accruing with respect to such Product prior to such failure to execute. In the event of such failure, if this Agreement shall therefore be terminated, Celator shall reimburse Baxter for all non-cancelable costs incurred by Baxter for work performed
and Baxter-supplied Components ordered with respect to such Product. 
 Article 3, PURCHASE AND SUPPLY OF PRODUCT

 3.1 Agreement to Purchase and Supply. Pursuant to the terms and conditions of this Agreement, Celator will purchase
Product from Baxter in accordance with Article 4, and Baxter shall Produce and deliver to Celator the Product in accordance with Article 4 of this Agreement. 
 3.2 Reproduction, Rework or Reprocessing. If, during the Production of any Batch of Product, any reprocessing, rework, reproduction, or change is required in order to meet the Product
Specifications, or if Celator requests any change with respect to any matter set forth in the Product Master Plan, Baxter shall conduct such reprocessing, rework, or reproduction and implement such change in compliance with cGMP’s. Any
reprocessing, rework, reproduction or change, concerning compounding, aseptic filling, or capping must be approved in writing by Celator prior to implementation unless immediate action is required. Celator shall promptly reimburse Baxter for all
costs and expenses incurred in connection with such reprocessing, rework, reproduction, or change, except that in the event that any such reprocessing, rework, reproduction, or change 

  
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results solely from Baxter’s failure to Produce Products according to Product Requirements or Baxter’s negligence or willful misconduct, Baxter shall be responsible for, and promptly
reimburse Celator for, **************** in connection with such reprocessing, rework, reproduction, or change. 
 3.3
Components. As set forth in the Product Master Plan, Celator shall purchase and supply Celator-supplied Components which Celator, at its sole cost and expense (including, without limitation, shipping costs), shall supply to Baxter, in a timely
manner, required to satisfy the terms of this Agreement. Baxter shall procure, in a timely manner, and have available for Production of Product Baxter-supplied Components, at its sole cost and expense (including, without limitation, shipping costs),
required to satisfy the terms of this Agreement. On receipt of the Components, Baxter shall test such materials as set forth in the Product Master Plan. If, notwithstanding such testing, Celator determines to assert a claim against a supplier of a
Baxter-supplied Component because Celator discovers a defect in or adulteration of such Baxter-supplied Component that was not discovered by Baxter, Baxter agrees to provide Celator with all information regarding such Baxter-supplied Component and
the supplier thereof as Celator shall reasonably request and to cooperate with Celator in the assertion of each such claim. 

3.3.1 Vendor/Supplier Qualification. The responsibility for vendor/supplier qualification is set forth in the Quality Agreement.

 3.4 Importer of Record. In the event any material or equipment to be supplied by Celator in accordance with the
Product Master Plan is imported into Germany for delivery to Baxter (“Imported Goods”), such Imported Goods shall be imported DDP Halle/Künsebeck (Incoterms 2000). Celator shall be the “Importer of Record” of
such Imported Goods. As the Importer of Record, Celator shall be responsible for all aspects of the Imported Goods including, without limitation (a) customs and other regulatory clearance of Imported Goods, (b) payment of all tariffs,
duties, customs, fees, expenses and charges payable in connection with the importation and delivery of the Imported Goods, and (c) keeping all records, documents, correspondence and tracking information required by applicable laws, rules and
regulations arising out of or in connection with the importation or delivery of the Imported Goods. 
 3.5 Storage 

3.5.1 Product Storage. Baxter will store Product at its facility after Product has been Released for up to thirty
(30) calendar days free of charge. After thirty (30) calendar days from the Product Release, Baxter may charge storage fees as set forth in the Product Master Plan. 
 3.5.2 Third Party Storage. After the time frame set forth in Section 3.5.1, Baxter shall be permitted to store Product in third party storage facilities qualified by Baxter; such qualified
facilities shall be at the discretion of Baxter; provided however that, prior to storing any Product at a third party storage facility, Baxter shall notify Celator in writing of Baxter’s intent to do so and shall provide the name of the third
party and the location of the storage facility. 

  
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 Article 4, FORECASTS, ORDERS AND CAPACITY 

4.1 Forecasts for Clinical Product. Commencing on the Effective Date of this Agreement and prior to the tenth
(10th) calendar day of each month thereafter, Celator
will provide Baxter in writing with a Rolling Forecast. The first *********** months of the Rolling Forecast for Clinical Product shall be binding for the Parties. It is understood by the Parties that forecasting of Clinical Product requirements is
difficult and unforeseen issues can occur; therefore, it is understood that Baxter will use reasonable efforts to accommodate changes to the first ******* months of the Rolling Forecast if able to do so. In the event that Celator requests
cancellation or rescheduling of a Firm Order for Production of Clinical Product, Baxter shall use good faith efforts to fill the open capacity resulting from the cancellation or rescheduling. In the event Baxter is unable to fill such open capacity,
Baxter may charge Celator a Reservation Fee as set forth in the Product Master Plan. 
 4.2 Forecasts for
Commercial Product. Commencing no less than ***** months prior to the date of the Production of the first Batch of Commercial Product, and prior to the first day of July of each year thereafter during the Term, Celator will provide to Baxter in
writing a forecast of Celator’s estimated requirements for Commercial Product for each of the upcoming ********* years (the “Long Range Forecast”). Commencing with the first regulatory filing for marketing approval of the
Product in any major market, and prior to the tenth
(10th) calendar day of each month thereafter, Celator
will provide Baxter in writing a Rolling Forecast of Celator’s estimated contract requirements for Commercial Product. Baxter specifically agrees that such Long Range Forecasts and Rolling Forecasts submitted by Celator will be for general
planning purposes only, and shall not be binding on either Party, except as provided below in Section 4.3. 
 4.3 Annual
Obligation for Commercial Product and Maximum Supply Obligation. Celator shall be obligated, upon receiving Regulatory Approval of the Product in the United States or Europe, to purchase from Baxter a minimum number of Batches of Commercial
Product in each calendar year during the Term of this Agreement (the “Annual Obligation”) as set forth in Exhibit A, which Annual Obligation shall be prorated for any partial calendar year. For any volume shortfall under and below
the contractual Annual Obligation, Celator will pay an indemnity per Batch as set forth in the Product Master Plan. In any calendar year during the Term of this Agreement, in no event shall Baxter be obligated to Produce more than the number of
Batches set forth in Exhibit B (“Maximum Supply Obligation”). If changes (increase/decrease) in the annual order volume require changes in equipment and/or process, Celator will cover the costs of such changes. 

  
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 4.3.1 For any Contract Year following the last Contract Year identified in Exhibits A
and B or as further set forth in a Product Master Plan, no less than **************** prior to the end of the last Contract Year, the Parties shall mutually agree on Celator’s Annual Obligation and Baxter’s Maximum Supply Obligation for
any upcoming Contract Year(s) and such Annual Obligation and Maximum Supply Obligation will be set forth in the Product Master Plan signed by both Parties. In the event the Parties are unable to reach mutual agreement on an Annual Obligation and/or
Maximum Supply Obligation **************** prior to the end of the last Contract Year, this Agreement shall terminate in accordance with Section 8.1 and shall be subject to Section 8.4. 

4.4 Purchase Orders. Celator shall submit Purchase Orders to Baxter covering Celator’s purchases of Product pursuant to this
Agreement. Celator shall not, without the written consent of Baxter, designate a requested pick-up date in a Purchase Order earlier than ******** months from the date Celator submits the Purchase Order. 

Baxter shall provide a confirmation of receipt of each Purchase Order setting forth the Pick-Up Date that Baxter will meet and setting
forth Baxter’s filling date for such order within ten (10) business days of receiving Celator’s Purchase Order. Upon sending of the confirmation, such Purchase Order shall become a “Firm Purchase Order”. 

If Baxter is unable to meet the requested pick-up date specified by Celator, Baxter shall so notify Celator within ten (10) business
days of receiving Celator’s Purchase Order and provide to Celator an alternative Pick-Up date, which shall not be more than ********** later than the initial requested pick-up date designated by Celator in its Purchase Order. 

In the event that Celator modifies or cancels a Firm Purchase Order without Baxter’s written consent, Celator shall pay the
Reservation Fees as set forth in the Product Master Plan. To the extent of any conflict between Purchase Orders submitted by Celator and this Agreement, this Agreement shall control. 

Celator shall order full batches of Product on a single Purchase Order. 

4.5 Component Delivery Delays. Timely delivery of Celator-supplied Components shall mean that the respective Component and the
documents required under the Product Master Plan arrive at Baxter at least thirty (30) business days prior to the scheduled manufacturing date of such Product, as determined by the date set forth in the Firm Purchase Order. Notwithstanding
anything in this Agreement to the contrary, in the event that Baxter receives such Celator-supplied Components and associated cGMP documents for the Production of Product from Celator less than thirty (30) business days prior to the scheduled
manufacturing date of such Product, Baxter shall use commercially reasonable efforts to reschedule Batch within ********* days after receipt. Baxter shall use good faith efforts to fill the open capacity resulting from the rescheduling. In the event
Baxter is unable to fill such open capacity, Baxter may charge Celator a Reservation Fee as set forth in the Product Master Plan. 

  
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 Article 5, PRICE 

5.1 Purchase Price. The Purchase Price of Product is the sum of the price to be paid by Celator for the Production of Product (the
“Production Price”) set forth in the Product Master Plan and Baxter’s actual cost of Baxter-supplied Components. 
 5.2 Production Price Adjustment for Commercial Product. Upon the first anniversary of the Effective Date of this Agreement and on each anniversary thereafter, Baxter shall adjust the Production
Price of such Commercial Product to reflect changes in Baxter’s actual costs since the date on which the Production Price was last established, but in no event shall the Production Price be increased by a percentage that exceeds the percentage
change in the Index of Producer Prices of Industrial Products during the previous twelve (12)-month period, as published by the Federal Statistical Office of Germany (www.destatis.de). 

Article 6, SHIPMENT AND INVOICING 
 6.1 Delivery Terms. Product shall be delivered to Celator or to a location designated by Celator in the Purchase Order EXW (Incoterms, 2000) Baxter’s facility in Halle/Künsebeck,
Westphalia, Germany freight collect, by a common carrier designated by Celator in a Purchase Order. Celator shall procure, at its cost, insurance covering damage or loss to the Product during shipping from Baxter’s facility. 

6.2 Subsequent Export. Celator agrees and represents that Celator is the owner of the goods that are consigned to Baxter for
contract manufacturing services and warrants that Celator is responsible for any subsequent export or re-export and will comply with all applicable laws and regulations relating to the export or re-export, including the prohibition against unlawful
transshipments. Further, where such goods are destined for export or re-export, Celator agrees and accepts that it shall act as the exporter of record, and warrants that as the exporter of record, it will assume all attendant responsibilities
associated with the export or re-export, including obtaining any necessary export licenses. Celator further agrees to defend Baxter against any civil action, civil or criminal, private or public, in connection with the subsequent export or re-export
by Celator of the goods. 
 6.3 Foreign Corrupt Practices Act. Celator acknowledges it is not the agent of Baxter and
represents and warrants that it has not, and covenants that it will not pay anything of value to any government employee in connection with the sale of the Product. 

  
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 6.4 Payment Terms. For Commercial and Clinical Product, Baxter will issue an invoice
for payment upon the date of Baxter’s disposition of the Batch. Payments shall be made by wire transfer to a bank account specified by Baxter within ********* days of the date of Baxter’s invoice by wire transfer to a bank account
specified by Baxter. Each invoice shall be payable by Celator in accordance with the terms noted above. Celator is obliged to confirm to Baxter in writing the receipt of the invoice without any delay. All prices quoted by Baxter, e.g., in the
Product Master Plan, shall be ex value added taxes and denominated in Euros. Any payment due under this Agreement not received within the time noted above shall bear interest of **************** per month on the outstanding balance compounded
monthly. 
 6.5 Default in Undisputed Payment Obligations. In addition to all other remedies available to Baxter in the
event of a Celator default, if Celator fails to make any undisputed payment when due and payable hereunder, Baxter may refuse all further Purchase Orders, refuse to Produce any Product until Celator’s account is paid in full, modify the
foregoing terms of payment, place the account on a letter of credit basis, require full or partial payment in advance, suspend deliveries of Product until Celator provides assurance of performance reasonably satisfactory to Baxter, and/or take other
reasonable means as Baxter may determine. In the event Celator has a good faith dispute of an invoice amount, Celator shall promptly notify Baxter within fifteen (15) days from the date of invoice. Each Party agrees to use good faith efforts to
resolve any disputes of an invoice amount within thirty (30) days of notification of such dispute. 
 Article 7,
ACCEPTANCE OF PRODUCT 
 7.1 Product Conformity. Within fifteen (15) business days from the date of shipment of
Product to Celator or the receipt of the Released Executed Batch Record, as defined in Product Master Plan, whichever is later, Celator shall determine whether such Product and related documentation conforms to the Product Specifications, Master
Batch Record, and Baxter SOPs (collectively, the “Product Requirements”); provided, however, that Celator shall have the right to revoke acceptance if, within thirty (30) business days of receipt of the Batch, Celator discovers
a latent defect or adulteration not reasonably discoverable at time of delivery. 
 7.1.1 If (a) any Product
conforms to the Product Requirements, or (b) Celator fails to notify Baxter in accordance with the procedures set forth in Section 7.1 that any Product does not conform to the Product Requirements, then Celator shall be deemed to have
accepted the Product and waived its right to revoke acceptance. 
 7.1.2 If Celator believes Product does not conform to
the Product Requirements, it shall notify Baxter by telephone including a detailed explanation of the non-conformity and shall confirm such notice in writing via international courier service. Upon receipt of such notice, Baxter will investigate
such alleged non-conformity, and (i) if Baxter agrees such Product is non-conforming, Baxter and Celator will mutually determine a corrective 

  
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action plan within sixty (60) calendar days after receipt of Celator’s written notice of non-conformity, or such additional time as is reasonably required if such investigation or plan
requires data from sources other than Celator or Baxter, or (ii) if Baxter disagrees with Celator’s determination that the shipment of Product is non-conforming, Baxter shall so notify Celator by telephone within a ten (10) calendar
day period and confirm such notice in writing by overnight delivery to Celator. 
 7.1.3 If the Parties dispute whether
Product is conforming or non-conforming to the Product Requirements, the Product will be submitted to a mutually acceptable laboratory or consultant for resolution, whose determination of conformity or non-conformity, and the cause thereof of
non-conformity, shall be binding upon the Parties. Notwithstanding the foregoing, Celator may not release a Batch of Product that Baxter has reasonably rejected in good faith. The costs of such laboratory or consultant are to be borne by the Party
whose determination was incorrect. 
 7.2A Remedies for Non-Conforming Clinical Product. 

7.2.1A Celator shall pay for all Clinical Product, including replacement Clinical Product and the cost of the API therefor, except
as specifically set forth in Section 7.2.2A. 
 7.2.2A In the event Baxter agrees that Clinical Product is
non-conforming to the Product Requirements, or the laboratory or consultant determines that such Clinical Product is non-conforming, solely as a result of the negligence or willful misconduct of Baxter, Baxter shall replace such non-conforming
Clinical Product within thirty (30) days assuming sufficient API is available or will be provided by Celator at no charge to Baxter in due time to carry out the Production. Baxter is not responsible for defects in Celator-supplied Components
including without limitation API. 
 7.2.3A Notwithstanding anything to the contrary in the foregoing, Baxter shall have
no obligation to replace the non-conforming Clinical Product if the process provided by Celator is not sufficient to Produce conforming Clinical Product. Baxter agrees that a conclusion that the Celator-provided process is not sufficient to Produce
conforming Clinical Product cannot reasonably be made if such process has previously resulted in conforming Clinical Product at Baxter. 
 7.2B Remedies for Non-Conforming Commercial Product. 
 7.2.1B Celator shall
pay for all Commercial Product, including replacement Commercial Product and the cost of the API therefor, except as specifically set forth in Sections 7.2.2B and 7.2.3B. 
 7.2.2B In the event Baxter agrees that Commercial Product is non-conforming to the Product Requirements, or the laboratory or consultant determines that such Commercial Product is non-conforming,
Celator shall provide replacement API to Baxter and Baxter shall replace such non-conforming Commercial Product as soon as possible assuming sufficient API is available or will be provided by Celator in due time to carry out the Production. Baxter
is not responsible for non-conforming Commercial Product that is caused by Celator-supplied Components including without limitation API. 

  
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 7.2.3B In the event Baxter agrees that Commercial Product is non-conforming to
Product Requirements, or the laboratory or consultant determines that Commercial Product is non-conforming to the Product Requirements solely as a result of the negligence or willful misconduct of Baxter, Baxter shall (i) incur the cost of
Production of the replacement Commercial Product, and (ii) reimburse Celator for its actual cost of Celator-supplied Components including without limitation the API for the replacement Commercial Product, which cost shall not exceed
****************. 
 7.2C Disposal of Non-Conforming Product. All non-conforming Products shall be returned to Baxter for
disposal. If the non-conforming Product was solely due to Baxter’s negligence or willful misconduct or solely due to Baxter’s breach of its representations and warranties under this Agreement, Baxter shall be responsible for the costs of
disposal. 
 7.3 Exceptions. Production deviations and investigations which occur during Production of Product and which
do not cause the Production to be non-compliant with cGMP or with Specifications shall not, in and of themselves, be deemed to cause such Product to be non-conforming. Should the Parties disagree that a Production deviation should be cause for
rejection of Product, the Parties shall agree to a mutually acceptable third party Qualified Person to make the determination regarding disposition of the Batch. 
 Article 8, TERM AND TERMINATION 
 8.1 Term. Unless terminated
pursuant to Section 8.2 herein, this Agreement shall commence on the Effective Date and will continue until the development and clinical Production have been completed, as described in the Product Master Plan for clinical Production, (the
“Clinical Term”) and shall continue in effect thereafter for commercial Production until such time as one Party provides at least twenty-four (24) months’ prior written notice to the other Party of the notifying
Party’s determination to terminate this Agreement, which notice shall specify the termination date (the “Commercial Term”). The Clinical Term and the Commercial Term are collectively referred to as the “Term”.

 8.1.1 Expiration of Term. ****************.  

8.2 Termination for Breach. Either Party may terminate this Agreement upon the breach of any provision of this Agreement by the
other Party if such breach is not cured by the breaching Party within thirty (30) calendar days for monetary defaults, and sixty (60) calendar days for non-monetary defaults, after receipt by the breaching Party of written notice from the
other Party of such default. A monetary default shall be 

  
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deemed to occur if an undisputed payment is not made by the date such payment is due and payable under the terms of this Agreement or the Product Master Plan. In the event of any termination for
breach, upon Celator’s request, any and all Celator-supplied Components held by Baxter shall be made available for pick-up by Celator at Baxter’s facility. 
 8.3 Termination for Financial Matters. This Agreement may be terminated immediately by either Party by giving the other Party written notice thereof in the event such other Party makes a general
assignment for the benefit of its creditors, or proceedings of a case are commenced in any court of competent jurisdiction by or against such Party seeking (a) such Party’s reorganization, liquidation, dissolution, arrangement or winding
up, or the composition or readjustment of its debts, (b) the appointment of a receiver or trustee for or over such Party’s property, or (c) similar relief in respect of such Party under any law relating to bankruptcy, insolvency,
reorganization, winding up or composition or adjustment of debt, and such proceedings shall continue undismissed, or an order with respect to the foregoing shall be entered and continue unstated, for a period of more than ninety (90) days.

 8.4 Non-cancelable Costs and Expenses. In the event of the termination of this Agreement, except by Celator as a
result of a breach by Baxter under Section 8.2, Celator shall (a) reimburse Baxter for all Baxter-supplied Components ordered prior to termination and not cancelable without cost to Baxter or, if less, at Celator’s option shall
reimburse Baxter for the costs of cancellation, and (b) pay Baxter for any open Firm Purchase Orders. Moreover, Celator agrees to purchase from Baxter at cost all semi-finished and finished Products in stock. Baxter shall promptly deliver to
Celator, at Celator’s cost, all Components, semi-finished and finished Products for which Celator reimburses Baxter pursuant to this Section 8.4. Baxter shall use commercially reasonable efforts to mitigate the costs and expenses of
Celator under this Section 8.4. Celator shall make payment for all expenses described in this Section 8.4 thirty (30) days after the invoice date, which date shall not be earlier than the date of delivery of any related materials to
Celator. 
 8.5 Payment on Termination of Commercial Production. In addition to the costs and expenses payable in
Section 8.4, in the event of termination of this Agreement, except by Celator as a result of a breach by Baxter under Section 8.2 or expiry of the Term of this Agreement, Celator shall pay Baxter (a) the difference, if any, between
the Production Price of Product actually ordered and purchased by Celator in the calendar year in which termination occurs and, the greater of the (i) Production Price of the Annual Obligation and (ii) Production Price of the Annual
Obligation, as defined in Section 4.3, in such calendar year, (b) as liquidated damages and not as a penalty, **************** of the Production Price of the Annual Obligation for the next succeeding calendar year after the calendar year
in which termination occurs. 
 8.6 Procedure in case of Expiry of Agreement. In the event the Agreement expires pursuant
to Section 8.1, Celator is obliged to buy from Baxter all Baxter-supplied Components reasonably ordered by Baxter during the normal course of business unless Baxter can reasonably use these materials otherwise. 

  
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 8.7 Transfer of Technology.  

8.7.1 On termination or expiration of this Agreement through any means and for any reason, the right of Baxter to make Product
hereunder shall terminate, and except for termination by Baxter due to a breach by Celator under Section 8.2, Baxter shall reasonably cooperate with Celator by providing to Celator, at Celator’s cost, copies or drafts of the following
items, to the extent they exist, within sixty (60) days of termination or expiration: 
 8.7.1.1 Baxter’s
Manufacturing Batch Records for the Product; 
 8.7.1.2 Pertinent analytical reports, and manufacturing development and
validation reports of studies used to determine and justify the final manufacturing process related to the Product; and 

8.7.1.3 Any and all Celator-supplied Components in storage at Baxter which shall be made available for pick-up by Celator at
Baxter’s facility; and 
 **************** 
 8.8 Survival. Termination, expiration, cancellation or abandonment of this Agreement through any means or for any reason, except as set forth in Section 13.1, shall be without prejudice to the
rights and remedies of either Party with respect to any antecedent breach of any of the provisions of this Agreement. The provisions of Articles 12, 13, 14, 15, 16, 17 and 18 hereof, and such other provisions of this Agreement that, by their terms,
are intended to continue beyond the Term of this Agreement, shall survive expiration or termination of this Agreement. 

Article 9, PRODUCTION OF PRODUCT 
 9.1 Production. Baxter shall Produce Product in accordance with cGMP and all other applicable laws or regulations as set forth in the Product Master Plan. At no additional cost and at times
mutually agreed to by the Parties, Celator shall have the right to have a representative of Celator in the facility to observe Production. 
 9.2 Audits. Celator shall have the right to audit Baxter’s facilities to determine compliance with (i) cGMP and (ii) applicable laws and regulations. Such audits shall be scheduled
at mutually agreeable times upon reasonable advance written notice to Baxter. Except for the first audit under this Agreement, audits shall be at Celator’s expense at one (1) audit every ******* with the exception of any audits arising
from a reasonable basis for concern (such as Baxter’s compliance status) shall be at 

  
 15 

 
Baxter’s expense as detailed in Product Master Plan. If Celator requests additional audits which are not due to Baxter’s compliance status and Baxter agrees to such audits, Celator will
incur fees as reasonably determined by Baxter. Such fees shall be paid promptly upon completion of such audits. In connection with performing such audits, Celator shall comply with all reasonable rules and regulations promulgated by Baxter;
provided, however, that such rules and regulations shall not hinder Celator’s ability to conduct the audits. All information disclosed or reviewed in such inspections shall be deemed to be the property of Baxter and Baxter Confidential
Information. 
 9.3 Testing. Baxter shall test, or cause to be tested by third party testing facilities qualified by
Baxter, in accordance with the Product Specifications, each Batch of Product Produced pursuant to this Agreement before delivery to Celator. A certificate of analysis for each Batch of Product delivered to Celator shall set forth the items tested by
Baxter, specifications and test results. Celator shall assume full responsibility for final release of each Batch of the Product. 
 9.4 Stability Testing. At Celator’s expense, Baxter shall perform all stability testing in compliance with the International Conference on Harmonization for Registration of Pharmaceuticals for
Human Use (ICH) requirements performed on clinical, development, conformance and/or commercial Production Batches of Product. Such testing shall be performed in accordance with the procedures set out in the Product specific Baxter SOPs for the
stability protocol and Product Master Plan. Prior to any stability testing, Celator shall have the right to review and approve the stability testing protocol and Celator shall receive a summary report of the data generated from the stability tests.
All stability data shall be forwarded to Celator within thirty (30) days of the scheduled test date. 
 9.5 Permits and
Licenses. Celator shall have sole responsibility at its expense for obtaining all permits and licenses necessary and required for use, sale and / or distribution of Product Produced by Baxter hereunder. Baxter shall be responsible at its expense
to obtain and maintain all generally required licenses required for it to carry out its development, regulatory and production obligations hereunder. 
 9.6 Regulatory Requirements. Each Party promptly shall notify the other of new regulatory requirements of which it becomes aware which are relevant to the Production of a Product under this
Agreement and which are required by an applicable Regulatory Authority or other applicable laws or governmental regulations, and the Parties shall confer with each other with respect to the best means to comply with such requirements. Baxter shall
have no obligation to Produce Product in compliance with the explicit requirements of a Regulatory Authority not specified in the Product Master Plan; provided that, if Celator shall request Baxter to do so, the Parties shall confer with each other
with respect to such request. 
 9.7 Equipment Expenses. If Baxter is required by Celator to obtain specialized equipment
for use solely to Produce Product for Celator, the costs of such equipment shall be paid by Celator, i.e., ****************, including shipping and 

  
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insurance costs, plus VAT and reasonable installation costs. Baxter shall advise Celator of the specialized equipment required for use solely to Produce Product for Celator and the estimated
costs associated with the purchase and installation of such equipment. Such costs shall be agreed upon by the Parties prior to Baxter ordering such equipment. Celator shall be invoiced for all approved costs regarding the specialized equipment
purchased by Baxter in accordance with this Section 9.7, and Celator shall make payment therefor promptly thereafter. 

9.8 Ownership of Equipment. All specialized equipment supplied by or paid for by Celator shall be Celator’s property and
shall be used by Baxter only for the Production of Product. This equipment is listed in the Product Master Plan. Upon any termination or expiration of this Agreement, Celator shall have the option of either (i) taking custody of the specialized
equipment supplied by or paid for by it, or (ii) allowing Baxter to purchase such equipment by paying Celator the then current fair market value of such equipment. 
 9.9 Records. Baxter shall, in accordance with applicable laws and as reasonably requested by Celator, maintain complete cGMP production records and reports relating to its activities performed in
providing the services under this Agreement (including, without limitation, keeping accurate records of the manufacture, testing and packaging of the Products). Baxter shall provide Celator with access to all such records at mutually agreeable
times; provided, however, that such access shall be required only during normal business hours and with reasonable advance written notice. The Parties agree that Baxter shall have no obligation to provide or disclose its financial records to
Celator. 
 9.10 Celator Property. In accord with Baxter SOPs, Baxter shall properly use, store, handle and maintain all
Celator property, including but not limited to Celator-supplied Components, equipment and Product, in Baxter’s custody or control. 
 Article 10, REGULATORY 
 10.1 Regulatory Approvals. Celator will use
commercially reasonable efforts to pursue Regulatory Approval of marketing licenses for Clinical Product Produced by Baxter hereunder. Celator will advise Baxter of document requirements in support of filings and similar applications required of
foreign governments and agencies including amendments, license applications, supplements and maintenance of such. Baxter will provide documents and assist Celator in preparation of submissions to Regulatory Authorities designated by Celator in
support of Celator’s applications required of governments and licenses. All regulatory submission preparation and maintenance performed by Baxter for Celator shall be specified in the Product Master Plan. Prior to submission to the Regulatory
Authority, Celator will provide Baxter with a copy of the CMC section for review and comment. A final copy of the CMC section will be provided by Celator to Baxter upon submission to the Regulatory Authority. Upon Regulatory Approval, Celator will
notify Baxter within two (2) business days of such approval and the anticipated date of Product launch to the market. 

  
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 10.2 Regulatory Authority Inspections. At Celator’s request, Baxter will
authorize Regulatory Authorities to review related applications on Celator’s behalf as set forth in the Quality Agreement. Celator shall bear the costs of non-routine Regulatory Authority Inspection or inspections directly relating to the
Product as set forth in the Product Master Plan. 
 Article 11, TRADEMARKS 

11.1 Celator grants to Baxter a non-exclusive, royalty free license to use Celator Trademarks for the sole purpose of allowing
Baxter to fulfill its responsibilities under this Agreement. Such license shall not be transferable in whole or in part. 

11.2 Celator shall be solely responsible for selecting, registering and enforcing Celator Trademarks used to identify the Product
and, except as set forth in Section 11.1, shall have sole and exclusive rights in such Celator Trademarks. 
 Article
12, REPRESENTATIONS AND WARRANTIES 
 12.1 Mutual Representations. Each Party hereby represents and warrants to the
other Party that (a) the person executing this Agreement on behalf of such Party is legally authorized to execute this Agreement; (b) this Agreement is legal and valid and the obligations binding upon such Party enforceable by its terms;
and (c) the execution, delivery and performance of this Agreement does not conflict with any agreement, instrument or understanding, oral or written, to which such Party may be bound, nor violate any law or regulation of any court, governmental
body or administrative or other agency having jurisdiction over it. 
 12.2 Baxter Warranty. Baxter represents and
warrants that it shall Produce all Product in accordance with cGMP and, that all Commercial Product shall meet Product Specifications. Baxter represents and warrants that it has obtained (or will obtain prior to Producing Product), and will remain
in compliance with during the Term of this Agreement, all permits, licenses and other authorizations (the “Permits”) which are required under laws and regulations applicable to the Production only of Product as specified in the
Product Master Plan; provided, however, Baxter shall have no obligation to obtain Permits relating to the sale, marketing, distribution or use of Product or with respect to the labeling of Product. Baxter makes no representation or warranty with
respect to the sale, marketing, distribution or use of API, Product or to printed materials specified by Celator or its consignee. 
 12.3 Disclaimer of Warranties. Except for those warranties set forth in Sections 12.1 and 12.2 of this Agreement, Baxter makes no warranties, written, oral, express or implied, with respect to
Product or the Production of Product. ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, 

  
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THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT HEREBY ARE DISCLAIMED BY BAXTER. NO WARRANTIES OF BAXTER MAY BE CHANGED EXCEPT IN WRITING AND
SIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF BAXTER. Celator accepts Product subject to the terms hereof. 
 12.4 Celator
Warranties. Celator warrants that (a) it has the right to give Baxter any information provided by Celator hereunder, and that Baxter has the right to use such information for the Production of Product, and (b) Celator has no
knowledge of any (i) patents or other intellectual property rights that would be infringed by Baxter’s Production of Product under this Agreement, or (ii) proprietary rights of third parties which would be violated by Baxter’s
performance hereunder, and (c) Celator has obtained (or will obtain prior to producing the Product), and will maintain, update and remain in compliance with all permits, licenses and other authorizations during the Term of this Agreement, which
are required under federal, state and local law, rules and regulations applicable to the Production, use and sale of the Product. Celator warrants that the API provided to Baxter hereunder will (1) conform to the API specifications and
(2) not be adulterated or misbranded within the meaning of the FD&C Act. Celator will use and promote the Product in a manner not inconsistent with its regulatory filings and approvals. 

12.5 FD&C Act Matters. Baxter represents and covenants as of the date of this Agreement and continuously during the term of
this Agreement that it is not debarred pursuant to Section 335(a) or 335(b) of the FD&C Act. Baxter represents that it has not been debarred under the Act in the past five (5) years. Baxter will not employ or use the services of any
person or entity to perform the Production of Product who is debarred under the Act or to Baxter’s knowledge has engaged in activities that could lead to being debarred under the Act. 

Article 13, LIABILITY AND WAIVER OF SUBROGATION 
 13.1 Limitation of Liability. Celator’s sole and exclusive remedies for breach of this Agreement are limited to those remedies set forth in Article 7, 8, 13.2.1, 14, and 16. Except as
expressly provided in this Agreement, under no circumstances shall either Party be liable for loss of use or profits or other collateral, special, consequential or other damages, losses, or expenses, including but not limited to the cost of cover,
in connection with or by reason of the Production and delivery of Product under this Agreement whether such claims are founded in tort or contract. The foregoing constitutes the sole and exclusive remedy of Celator and the sole and exclusive
liability of Baxter. As permitted by the applicable laws, under no circumstances shall Baxter’s aggregate liability to Celator, including but not limited to third party claims, exceed the following: ****************. All claims for breach or
default under this Agreement shall be brought within two (2) years after the cause of action incurred or shall be deemed waived. 

  
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 13.2 Waiver of Subrogation. Except to the extent expressly set forth herein, all
Baxter-supplied Components and equipment owned and used by Baxter in the Production of Product (collectively, the “Baxter Property”) shall at all times remain the property of Baxter until delivery of Product as specified
under Section 6.1 and Baxter assumes risk of loss for such Baxter Property. Baxter hereby waives any and all rights of recovery against Celator and its Affiliates, and against any of their respective directors, officers, employees, agents or
representatives, for any loss or damage to Baxter Property to the extent the loss or damage is covered or could be covered by insurance on the Baxter Property (whether or not such insurance is described in this Agreement). Celator assumes all risk
of loss for all Celator equipment used in Production, Celator-supplied Components and all Product (collectively, the “Celator Property”) except as provided in Section 13.2.1. Celator hereby waives any and all rights of
recovery against Baxter and its Affiliates, and against any of their respective directors, officers, employees, agents or representatives, for any loss or damage to the Celator Property to the extent the loss or damage is covered or could be covered
by insurance on the Celator Property (whether or not such insurance is described in this Agreement). 
 13.2.1 Reimbursement
for Lost or Damaged Celator Property In the event of loss or damage of a Celator-supplied Component or Product that does not occur during Production, if such loss or damage is solely due to Baxter’s negligence or willful misconduct, Baxter
shall reimburse Celator for its actual out-of-pocket costs for the lost or damaged Celator-supplied Components or Product, at the amount(s) set forth in the Product Master Plan, provided, however, that such reimbursement for any Celator-supplied
Components will not exceed ****************. In the event of loss or damage of Celator equipment used by Baxter, which damage or loss is solely due to Baxter’s negligence or willful misconduct, Baxter shall promptly replace or repair such
equipment ****************. 
 Article 14, INDEMNIFICATION 

14.1 Celator Indemnification. Celator shall indemnify, defend and hold harmless Baxter and its Affiliates and any of their
respective directors, officers, employees, subcontractors and agents (collectively “Indemnified Baxter Parties”) from and against any and all liabilities, obligations, penalties, claims, judgments, demands, actions, disbursements of any
kind and nature, suits, losses damages, costs and expenses (including, without limitation, reasonable attorney’s fees) arising out of or in connection with property damage or personal injury (including without limitation death) of third parties
(collectively “Claims”) in connection with (a) Celator’s transport, storage, promotion, labeling, marketing, distribution, use or sale of Product, (b) Celator’s negligence or willful misconduct, (c) Celator’s
breach of this Agreement, or (d) any claim that the use, sale, Production, marketing or distribution of Product by Baxter or Celator violates the patent, trademark, copyright or other proprietary rights of any third party, except if any of the
foregoing (a) or (d) is caused solely by the negligence or willful misconduct of any of the Indemnified Baxter Parties or ****************. 

  
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 14.2 Baxter Indemnification. Baxter shall indemnify, defend and hold harmless Celator
and its Affiliates and any of their respective directors, officers, employees, subcontractors and agents (collectively the “Indemnified Celator Parties”) from and against any and all liabilities, obligations, penalties, claims, judgments,
demands, actions, disbursements of any kind and nature, suits, losses, damages, costs and expenses (including, without limitation, reasonable attorney’s fees) arising out of or in connection with property damage or personal injury (including
without limitation death) of third parties (collectively, the “Claims”) resulting solely from Baxter’s negligence or willful misconduct ****************. 
 14.3 Indemnitee Obligations. A Party which intends to claim indemnification under this Article 14 (the “Indemnitee”) shall promptly notify the other Party (the
“Indemnitor”) in writing of any action, claim or other matter in respect of which the Indemnitee or any of its Affiliates, or any of their respective directors, officers, employees, subcontractors, or agents, intend to claim such
indemnification; provided, however, that failure to provide such notice within a reasonable period of time shall not relieve the Indemnitor of any of its obligations hereunder except to the extent the Indemnitor is prejudiced by such failure. The
Indemnitee shall permit, and shall cause its Affiliates, and their respective directors, officers, employees, subcontractors and agents to permit, the Indemnitor, at its discretion, to settle any such action, claim or other matter, and the
Indemnitee agrees to the complete control of such defense or settlement by the Indemnitor. Notwithstanding the foregoing, the Indemnitor shall not enter into any settlement that would adversely affect the Indemnitee’s rights hereunder, or
impose any obligations on the Indemnitee in addition to those set forth herein, in order for it to exercise such rights, without Indemnitee’s prior written consent, which shall not be unreasonably withheld or delayed. No such action, claim or
other matter shall be settled by the Indemnitor without the prior written consent of the Indemnitee, which shall not be unreasonably withheld or delayed. The Indemnitee, its Affiliates, and their respective directors, officers, employees,
subcontractors and agents shall fully cooperate with the Indemnitor and its legal representatives in the investigation and defense of any action, claim or other matter covered by the indemnification obligations of this Article 14. The Indemnitee
shall have the right, but not the obligation, to be represented in such defense by counsel of its own selection and at its own expense. 
 Article 15, INSURANCE 
 15.1 Celator Insurance. Celator shall procure
and maintain, during the Term of this Agreement and for a period one (1) year beyond the expiration date of Product, Commercial General Liability Insurance, including without limitation, Product Liability and Contractual Liability coverage (the
“Celator Insurance”). Celator Insurance shall cover amounts not less than 10,000,000 € (ten million EURO) combined single limit and shall be with an insurance carrier reasonably acceptable to Baxter. Baxter shall be named as an
additional insured on Celator Insurance and Celator promptly shall deliver a certificate of Celator Insurance and endorsement of additional insured to Baxter evidencing such coverage. If Celator fails to furnish such certificates or endorsements, or

  
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if at any time during the Term of this Agreement Baxter is notified of the cancellation or lapse of Celator Insurance, and Celator fails to rectify the same within fifteen (15) calendar days
after notice from Baxter, in addition to all other remedies available to Baxter hereunder, Baxter, at its option, may terminate this Agreement. Any deductible and/or self insurance retention shall be the sole responsibility of Celator. 

15.2 Baxter Insurance. Baxter acknowledges and agrees that during the Term of this Agreement it shall maintain adequate insurance
and/or a self-insurance program for liability insurance, including products liability and contractual liability insurance, to cover Baxter’s obligations under this Agreement, including but not limited to those set forth in Section 14.2 of
this Agreement. Baxter shall provide Celator with evidence of such insurance and/or self-insurance program, upon Celator’s request. 
 15.3 No Limitation. In no event will the liability of either Party be limited to that which is recoverable by insurance. 
 Article 16, COMPLAINTS, RECALL OF PRODUCT 
 16.1 Complaints. In case
Celator or Baxter receives complaints regarding Products which require Baxter to perform any investigations or conduct tests, Celator agrees to reimburse Baxter for any costs incurred in connection with such complaints. Notwithstanding the
foregoing, in the event of a complaint regarding Commercial Product, if the Product is non-conforming solely due to the negligence or willful misconduct of Baxter, such investigations or tests to be performed by Baxter shall be at Baxter’s
expense. 
 16.2 Recalls. In the event Celator shall be required to recall any Product because such Product may violate
local, state or federal laws or regulations, the laws or regulations of any applicable foreign government or agency or the Product Specifications, or in the event that Celator elects to institute a voluntary recall, Product withdrawal or field
correction, Celator shall be responsible for coordinating such recall. Celator promptly shall notify Baxter if any Product is the subject of a recall and provide Baxter with a copy of all documents relating to such recall. Baxter shall cooperate
with Celator in connection with any recall, at Celator’s expense. Celator shall be responsible for all of the costs and expenses of such recall, withdrawal or field correction. With respect to Commercial Product, if the recall, withdrawal or
field correction arises solely from the negligence or willful misconduct of Baxter ****************. Furthermore, in the event of any Product recall where the recall is necessitated solely due to the negligence or willful misconduct of Baxter
****************. 
 Article 17, INTELLECTUAL PROPERTY 

17.1 Existing Intellectual Property. Except as the Parties may otherwise expressly agree in writing, each Party shall continue to
own its existing patents, trademarks, copyrights, trade secrets and other intellectual property, without conferring 

  
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any interests therein on the other Party. Without limiting the generality of the preceding sentence, Celator shall retain all right, title and interest arising under the applicable laws, rules
and regulations in and to all Drug Products, labeling and trademarks associated therewith (collectively, “Celator’s Intellectual Property”). Neither Baxter nor any third party shall acquire any right, title or interest in
Celator Intellectual Property by virtue of this Agreement or otherwise, except to the extent expressly provided herein. 

17.2 Individually Owned Inventions. Except as the Parties may otherwise agree in writing, all Inventions (as defined herein) which
are conceived, reduced to practice, or created by a Party in the course of performing its obligations under this Agreement shall be solely owned and subject to use and exploitation by the inventing Party without a duty to account to the other Party.

 17.3 Product-Related Inventions. Celator and Baxter each acknowledge and agree that all rights, title and interest in
and to any Inventions, as between the Parties, shall be owned by Celator, except for Process Inventions, which shall be owned by Baxter and subject to the restrictions, licenses and conditions set forth in Section 17.4 below. 

17.4 Process Inventions. The Parties agree that such Process Inventions shall be owned by Baxter and subject to the restrictions
and conditions set forth in this Section 17.4. Specifically, Baxter grants to Celator a non-exclusive, paid-up, royalty-free, irrevocable worldwide license to Process Inventions, with the right of Celator or any of its sub-licensees to
sublicense such Process Inventions, for the manufacturing of the Product. 
 17.5 Disclaimer. Except as otherwise
expressly provided herein, nothing contained in this Agreement shall be construed or interpreted, either expressly or by implication, or otherwise, as: (i) a grant, transfer or other conveyance by either Party to the other of any right, title,
license or other interest of any kind in any of its Inventions or other intellectual property, (ii) creating an obligation on the part of either Party to make any such grant, transfer or other conveyance or (iii) requiring either Party to
participate with the other Party in any cooperative development program or project of any kind or to continue with any such program or project. 
 17.6 Rights in Intellectual Property. The Party owning any Intellectual Property shall have the worldwide right to control the drafting, filing, prosecution and maintenance of patents covering the
Inventions relating to such Intellectual Property, including decisions about the countries in which to file patent applications. Patent costs associated with the patent activities described in this Section shall be borne by the sole owner. Each
Party will cooperate with the other Party in the filing and prosecution of patent applications. Such cooperation will include, but not be limited to, furnishing supporting data and affidavits for the prosecution of patent applications and completing
and signing forms needed for the prosecution, assignment and maintenance of patent applications. 

  
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 17.7 Confidentiality of Intellectual Property. Intellectual Property shall be deemed
to be the Confidential Information of the Party owning such Intellectual Property. The protection of each Party’s Confidential Information is described in Article 18. Any disclosure of information by one Party to the other under the provisions
of this Article 18 shall be treated as the disclosing Party’s Confidential Information under this Agreement. It shall be the responsibility of the Party preparing a patent application to obtain the written permission of the other Party to use
or disclose the other Party’s Confidential Information in the patent application before the application is filed and for other disclosures made during the prosecution of the patent application. 

Article 18, CONFIDENTIAL INFORMATION, NONDISCLOSURE AND PUBLICITY 

18.1 Definition. “Confidential Information” means: (a) all information related to the Product,
CPX-351, including, without limitation, documentation, drawings, designs and specifications; (b) all information related to Baxter’s contract manufacturing services, technologies and operations; (c) any non-public information of a
party, including, without limitation, any information relating to a party’s technology, techniques, know-how, research, designs, finances, accounts, procurement requirements, manufacturing, customer lists, business forecasts and marketing plans
disclosed in connection with this Agreement; provided, however, that such information of a Party that is disclosed in writing or electronically is designated as “Confidential” or “Proprietary” at the time of disclosure, in the
covering letter or transmission or otherwise, or that if disclosed orally, is identified as “Confidential” or “Proprietary” at the time of disclosure and confirmed as such in a writing sent by the disclosing party to the
receiving party within thirty (30) days of any such disclosure; and (d) the specific terms and pricing of this Agreement (including any Product transfer prices). Notwithstanding the foregoing, any Confidential Information disclosed by
visual observation during a tour, site visit or audit of either Party’s or any of its Affiliates laboratories, manufacturing plants or other facilities shall automatically be deemed Confidential Information for purposes of this Agreement.

 18.2 Exclusions. The obligations in Section 18.3 will not apply to the extent that it can be demonstrated that
any Confidential Information: (a) is or becomes generally known to the public through no fault of or breach of this Agreement by the receiving party; (b) was rightfully in the receiving party’s possession at the time of disclosure,
without an obligation of confidentiality; (c) is independently developed by the receiving party without use of the disclosing party’s Confidential Information; or (d) is rightfully obtained by the receiving party from a third party
without restriction on use or disclosure. 
 18.3 Obligations. Each Party agrees not to use the other Party’s
Confidential Information, except as necessary for the performance of this Agreement, and shall not disclose such Confidential Information to any third party, except to those of its directors, officers, employees, consultants, contractors, agents,
lawyers, accountants or other professional advisors and subcontractors and those of its Affiliates (“Representatives”) 

  
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who need to know such Confidential Information for the performance of this Agreement or as otherwise expressly permitted in this Agreement, provided that each such Representative is subject to a
written agreement that includes binding use and disclosure restrictions that are at least as protective as those set forth herein. Each Party will use all reasonable efforts to maintain the confidentiality of the other Party’s Confidential
Information in its possession or control, but in no event less than the efforts that it ordinarily uses with respect to its own confidential information of similar nature and importance. The foregoing obligations will not restrict either Party from:
(i) disclosing Confidential Information pursuant to the order or requirement of a court, administrative agency, or other governmental body, provided that the Party required to make such disclosure gives reasonable notice to the other party to
enable it to contest such order or requirement; (ii) disclosing the terms of this Agreement, in confidence, to its business and legal advisors or to investors or lenders that are engaged in active due diligence regarding a financing of such
Party; or (iii) disclosing the terms of this Agreement, in confidence, to potential partners or acquirers that are engaged in active due diligence regarding a transaction involving, among other things, the Product, except for those parties
competitive to Baxter identified in Exhibit C, which disclosure will require the approval of Baxter, which approval shall not be unreasonably withheld. 
 18.4 Limitation of Disclosure. The Parties agree that, except as otherwise may be required by applicable laws, regulations, rules or orders, including without limitation the rules and regulations,
and except as may be authorized in Section 18.4 and unless otherwise agreed in the Agreement, no information concerning this Agreement and the transactions contemplated herein shall be made public by either Party without the prior written
consent of the other. 
 18.5 Publicity and SEC Filings. The Parties agree that the public announcement of the execution
of this Agreement shall be by only one or more press releases mutually agreed to by the Parties. The failure of a Party to return a draft of a press release with its proposed amendments or modifications to such press release to the other Party
within five (5) days of such Party’s receipt of such press release shall be deemed as such Party’s approval of such press release as received by such Party. Each Party agrees that it shall cooperate fully and in a timely manner with
the other with respect to all disclosures to the Securities and Exchange Commission or any other governmental or regulatory agencies, including requests for confidential treatment of Confidential Information of either Party included in any such
disclosure. 
 18.6 Duration of Confidentiality. All obligations of confidentiality and non-use imposed upon the Parties
under this Agreement shall expire five (5) years after the expiration or earlier termination of this Agreement. 
 18.7
Other Initiatives. It is understood that Baxter may have present or future initiatives, including initiatives with third parties, involving products or processes that compete with or are similar to the Product Produced under this Agreement.
Accordingly, Celator acknowledges that nothing in this Agreement shall be construed as a representation or inference by either Party that it will not develop for itself, or produce for others products or implement processes that compete with the
Product or are similar, provided that Confidential Information is not used in breach of this Agreement. 

  
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 18.8 Prior Mutual Confidentiality Agreement. The Parties acknowledge the existence of
a Mutual Confidentiality Agreement, as further amended, entered into by and between Celator and Baxter effective May 14, 2008 (collectively, the “CDA”). The Parties agree that any Confidential Information exchanged prior to the
Effective Date of this Agreement shall be governed by the CDA, and any Confidential Information exchanged on or after the Effective Date of this Agreement, shall be governed by this Article 18. 

Article 19, FORCE MAJEURE 
 19.1 Subject to the provisions of Section 16.2 of this Agreement, any delay in the performance of any of the duties or obligations of either Party hereto (except with respect to the payment of
monies due) caused by an event outside the affected Party’s reasonable control shall not be deemed a breach of this Agreement, and unless provided to the contrary herein, the time required for performance shall be extended for a period equal to
the period of such delay. Such events shall include without limitation, acts of God; acts of public enemies; insurrections; riots; terrorist actions; injunctions; embargoes; labor disputes, including strikes, lockouts, job actions, or boycotts;
fires; explosions; floods; shortages of material, Components or energy; delays in the delivery of Components; Product recalls or withdrawals; acts or orders of any government or agency thereof or of Regulatory Authority; and other unforeseeable
causes beyond the reasonable control and without the fault or negligence of the Party so affected. The Party so affected shall give prompt notice to the other Party of such cause and a good faith estimate of the continuing effect of the force
majeure condition and duration of the affected Party’s nonperformance, and shall take whatever reasonable steps are necessary or appropriate to relieve the effect of such causes as rapidly as possible. If the period of nonperformance by Baxter
because of Baxter force majeure conditions exceeds one hundred eighty (180) calendar days, Celator may terminate this Agreement by written notice to Baxter. If the period of nonperformance by Celator because of Celator force majeure conditions
exceeds one hundred eighty (180) calendar days, Baxter may terminate this Agreement by written notice to Celator. 

Article 20, NOTICES 
 20.1 All notices hereunder shall be delivered by facsimile (confirmed by international courier service), to the following address of the respective Parties: 

If to Celator: Celator Pharmaceuticals, Inc. 
 303B College Road East 
 Princeton, NJ 08540 

  
 26 

	 	Attn:	Donna Cabral-Lilly, Ph.D., 

	 	    	Head of Pharmaceutical Development 

 Fax No.(609) 243-0202 
 Telephone No.(609) 243-6216 

With a copy to: Duane Morris LLP 
 30 South 17th Street 
 Philadelphia, PA 19103-4196 

	 	Attn:	Kathleen M. Shay 

 Fax No.(215)
689-4382 
 Telephone No.(215) 979-1210 
 If to Baxter: Baxter Oncology GmbH 
 Kantstr. 2 

33790 Halle / Westfalen 
 Germany 

	 	Attn:	Associate Director, Contract Manufacturing 

	 	    	and Business Development 

 Fax
No. +49 5201 711 1880 
 Telephone No. +49 5201 711 1864 

With a copy to: Baxter Germany 
 Edisonstr. 4 
 85719 Unterschleißheim 

Germany 

	 	Attn:	Legal Counsel 

 Fax No. +49
89 31701 547 
 Telephone No. +49 89 31701 285 
 Notices shall be effective on the day following the date of transmission if sent by facsimile, and on the second business day following the date of delivery to the overnight delivery service if sent by
overnight delivery. A Party may change its address listed above by notice to the other Party given in accordance with this Section. 
 Article 21, APPLICABLE LAW 
 21.1 This Agreement is being delivered
and executed in Germany. In any action brought regarding the validity, construction and enforcement of this Agreement, it shall be governed in all respects by the substantive and procedural laws of Germany, without regard to the principles of
conflict of laws. The courts of New York, U.S.A., shall have personal jurisdiction over the Parties hereto in all matters arising hereunder. 

  
 27 

 Article 22, ASSIGNMENT 

22.1 Neither Party shall assign this Agreement or any part hereof or any interest herein to any third party (or use any
subcontractor) without the prior written approval of the other Party, which shall not be unreasonably withheld. Either Party may assign this Agreement to one of its Affiliates without approval of the other Party; provided, however, that such
assignment shall not relieve the assigning Party of responsibility for the performance of its obligations hereunder. Notwithstanding anything to the contrary set forth above: (a) no consent shall be required in the case of a transfer by Baxter
in a transaction involving the merger, consolidation, or sale of all or substantially all of the assets of Baxter, and (b) in the case of a transfer by Celator in transaction involving the merger, consolidation, or sale of all or substantially
all of the assets of Celator and such transaction relates to the line of business to which the product relates; provided, however, in each case the permitted assignee(s) shall assume all obligations of its assignor under this Agreement and such
assignment shall not relieve the assigning Party of responsibility for the performance of its obligations hereunder, unless the Parties agree to such relief. 
 Article 23, SUCCESSORS AND ASSIGNS 
 23.1 This Agreement shall be
binding upon and shall inure to the benefit of the Parties hereto, their successors and permitted assigns. 
 Article 24,
ENTIRE AGREEMENT 
 24.1 This Agreement including the Agreements listed in Sections 2.1 and 2.2 and the Mutual
Confidentiality Agreement signed by Celator and Baxter Healthcare Corporation (an Affiliate of Baxter Oncology GmbH) and effective on May 14, 2008 constitutes the entire agreement between the Parties concerning the subject matter hereof and
supersedes all written or oral prior agreements or understandings with respect thereto. 
 Article 25, SEVERABILITY

 25.1 If any term or provision of this Agreement shall for any reason be deemed to be invalid or unenforceable, such
term or provision shall be construed in such a way as to make it valid and enforceable to the maximum extent possible. Any invalidity or unenforceability of any term or provision of this Agreement shall attach only to such term or provision and
shall not affect or render invalid or unenforceable any other term or provision of this Agreement. 
 Article 26, WAIVER AND
MODIFICATION OF AGREEMENT 
 26.1 No waiver or modification of any of the terms of this Agreement shall be valid
unless in writing and signed by both Parties hereto. Failure by either Party to enforce any rights under this Agreement shall not be construed as a waiver of such rights nor shall a waiver by either Party in one or more instances be construed as
constituting a continuing waiver or as a waiver in other instances. 

  
 28 

 Article 27, INDEPENDENT CONTRACTOR 

27.1 Both Parties shall act as an independent contractor for the other Party in providing the services required hereunder and shall
not be considered an agent of, or joint venturer with, the other Party. 
 Article 28, COUNTERPARTS; METHOD OF TRANSMISSION

 28.1 This Agreement may be executed by the Parties on separate counterparts and exchanged by facsimile or other
electronic transmission, which counterparts, when so delivered shall each be deemed to be an original and both counterparts, taken together, shall constitute one and the same agreement. 

(Signature page to follow) 

  
 29 

 IN WITNESS WHEREOF, the Parties have caused this Clinical and Commercial
Manufacturing and Supply Agreement to be signed by their duly authorized representatives as of the Effective Date. 
  

									
	BAXTER ONCOLOGY GmbH	 		 	CELATOR PHARMACEUTICALS, INC.
					
	By:	 	/s/ Brik V. Eyre	 		 	By:	 	/s/ Scott T. Jackson
	Name: 	 	 Brik Eyre
	 		 	Name: 	 	 Scott T. Jackson

	Title:	 	 General Manager BioPharma Solutions
	 		 	Title:	 	 Chief Executive Officer

  
 30 

 EXHIBIT A 
 CELATOR’S ANNUAL OBLIGATION 
  

					
	 Contract Year
	  	One Market
Approval
(U.S. or 
Europe)	  	Two Market
Approvals
(U.S. and 
Europe)
	 Contract Year One
	  	*******	  	*******
	 Contract Year Two
	  	*******	  	*******
	 Contract Year Three
	  	*******	  	*******
	 Contract Year Four
	  	*******	  	*******

 Note: For any Contract Year(s) after Contract Year Four, the parties will mutually agree upon an Annual
Obligation for any such additional Contract Years as set forth in Section 4.3.1. 

  
 31 

 EXHIBIT B 
 BAXTER’S MAXIMUM SUPPLY OBLIGATION 
  

					
	 Contract Year(s)
	  	One Market
Approval
(U.S. or 
Europe)	  	Two Market
Approvals
(U.S. and 
Europe)
	 Contract Year One
	  	*******	  	*******
	 Contract Year Two
	  	*******	  	*******
	 Contract Year Three
	  	*******	  	*******
	 Contract Year Four
	  	*******	  	*******

 Note: For any Contract Year after Contract Year Four, the parties will mutually agree upon Baxter’s
Maximum Supply Obligation for any such additional Contract Years as set forth in Section 4.3.1. 

  
 32 

 EXHIBIT C 
 PARTIES COMPETITIVE TO BAXTER 
 Hospira One 2 One 

Vetter Pharma International GmbH 
 Ben Venue Laboratories 
 Patheon Inc. 

Catalent Pharma Solutions Inc. 
 DSM Pharmaceuticals, Inc. 
 HollisterStier Contract Manufacturing 

Oso BioPharmaceutical Manufacturing LLC 
 Althea Technologies Inc. 
 Fresenius Kabi AG 

Cook Incorporated 

Teva-PharmaChemie 

Pierre Fabre Medicament Production 
 BSP Pharmaceuticals srl 
 NextPharma Technologies 

GP Pharm. 

  
 33Collaborative Research Agreement dated May 11, 2001

 EXHIBIT 10.9 
 Portions Subject to Confidential Treatment Request Under Rule 24b-2 

COLLABORATIVE RESEARCH AGREEMENT 
 BETWEEN 
 CELATOR TECHNOLOGIES INCORPORATED 

AND 

BRITISH COLUMBIA CANCER AGENCY 

 COLLABORATIVE RESEARCH AGREEMENT 

TABLE OF CONTENTS 
  

							
	 Article 1 Interpretation
	  	 	1	  
	 1.1
	    	 Definitions
	  	 	1	  
	 1.2
	    	 Other Definitions.
	  	 	5	  
	 1.3
	    	 Currency
	  	 	6	  
	 1.4
	    	 Best of Knowledge
	  	 	6	  
	 1.5
	    	 Entire Agreement
	  	 	6	  
	 1.6
	    	 Exhibits
	  	 	6	  
	 1.7
	    	 Governing Law
	  	 	6	  
	 1.8
	    	 Headings
	  	 	6	  
	 1.9
	    	 Wording
	  	 	6	  
		
	 Article 2 Scope of Agreement
	  	 	6	  
	 2.1
	    	 Purpose of Agreement
	  	 	6	  
	 2.2
	    	 Term
	  	 	7	  
	 2.3
	    	 Issuance of Celator Shares to BCCA
	  	 	7	  
		
	 Article 3 Research and Development
	  	 	7	  
	 3.1
	    	 Performance of Work
	  	 	7	  
	 3.2
	    	 Assistance
	  	 	7	  
	 3.3
	    	 Changes in the Work
	  	 	7	  
	 3.4
	    	 Reports
	  	 	8	  
	 3.5
	    	 Directing Investigators
	  	 	8	  
	 3.6
	    	 Assignments by Personnel
	  	 	8	  
	 3.7
	    	 Removal of Personnel
	  	 	8	  
	 3.8
	    	 Consulting
	  	 	8	  
	 3.9
	    	 Location
	  	 	8	  
	 3.10
	    	 Purchased Equipment
	  	 	8	  
	 3.11
	    	 Loaned Equipment
	  	 	9	  
	 3.12
	    	 Research Samples
	  	 	9	  
	 3.13
	    	 Work for Third Parties
	  	 	10	  
	 3.14
	    	 Subcontractors
	  	 	10	  
		
	 Article 4 Acceptance Procedures
	  	 	11	  
	 4.1
	    	 Completion
	  	 	11	  
	 4.2
	    	 Acceptance and Deemed Acceptance
	  	 	11	  
	 4.3
	    	 Rejection
	  	 	11	  
		
	 Article 5 Fees
	  	 	11	  
	 5.1
	    	 Research and Development Fees
	  	 	11	  
	 5.2
	    	 Payment of Fees
	  	 	11	  
	 5.3
	    	 Invoices
	  	 	12	  
	 5.4
	    	 Work-Related Accounts and Audits
	  	 	12	  
		
	 Article 6 Royalty Payments
	  	 	12	  
	 6.1
	    	 Royalties
	  	 	12	  
	 6.2
	    	 Royalty Period
	  	 	12	  
	 6.3
	    	 Payment of Royalties
	  	 	13	  
	 6.4
	    	 Exclusion from Royalties
	  	 	13	  
	 6.5
	    	 Adjustment of Royalty
	  	 	13	  
	 6.6
	    	 Adjustment for Compulsory Licence
	  	 	14	  

  

- ii - 

							
	 6.7
	    	 Net Sales Reports
	  	 	14	  
	 6.8
	    	 Expiration of Royalties
	  	 	14	  
	 6.9
	    	 Expiration/Termination Report
	  	 	14	  
	 6.10
	    	 Royalty-Related Accounts and Audit
	  	 	15	  
	 6.11
	    	 Confidentiality of Reports
	  	 	15	  
		
	 Article 7 Taxes
	  	 	15	  
	 7.1
	    	 Taxes
	  	 	15	  
		
	 Article 8 Intellectual Property
	  	 	16	  
	 8.1
	    	 Title
	  	 	16	  
	 8.2
	    	 Assignment of Prior Intellectual Property
	  	 	16	  
	 8.3
	    	 Licence and Assignment of Celator-Sponsored Intellectual Property
	  	 	16	  
	 8.4
	    	 Revocation of Licence
	  	 	17	  
	 8.5
	    	 Disclosure of Inventions
	  	 	17	  
	 8.6
	    	 Other Intellectual Property
	  	 	18	  
	 8.7
	    	 UBC Affiliation Agreement
	  	 	18	  
	 8.8
	    	 Diligence in Commercialisation
	  	 	18	  
	 8.9
	    	 Decision Not to Commercialise
	  	 	18	  
		
	 Article 9 Patents; Prosecution and Litigation
	  	 	19	  
	 9.1
	    	 Prosecution of Patents
	  	 	19	  
	 9.2
	    	 Defence of Infringement Suits
	  	 	19	  
	 9.3
	    	 Infringement by Third Parties
	  	 	20	  
	 9.4
	    	 Status of Proceedings
	  	 	20	  
		
	 Article 10 Confidentiality; Publicity; Publications
	  	 	20	  
	 10.1
	    	 Obligation of Confidentiality
	  	 	20	  
	 10.2
	    	 Prior Disclosures
	  	 	21	  
	 10.3
	    	 Freedom of Information and Protection of Privacy Act
	  	 	21	  
	 10.4
	    	 Publicity
	  	 	21	  
	 10.5
	    	 Publications
	  	 	21	  
	 10.6
	    	 Duration of Obligation
	  	 	22	  
		
	 Article 11 Research Records and Inspections
	  	 	22	  
	 11.1
	    	 Maintenance of Research Records
	  	 	22	  
	 11.2
	    	 Access and Monitoring
	  	 	22	  
	 11.3
	    	 Inspection and Audit of Facilities
	  	 	22	  
	 11.4
	    	 Cessation of Work
	  	 	22	  
		
	 Article 12 Legal And Regulatory Matters
	  	 	23	  
	 12.1
	    	 Compliance with Laws
	  	 	23	  
	 12.2
	    	 Notice of Reports
	  	 	23	  
	 12.3
	    	 Regulatory Approvals
	  	 	23	  
	 12.4
	    	 Recalls
	  	 	23	  
		
	 Article 13 Representations, Warranties and Covenants
	  	 	23	  
	 13.1
	    	 BCCA Representations, Warranties and Covenants
	  	 	23	  
	 13.2
	    	 Celator Representations, Warranties and Covenants
	  	 	24	  
	 13.3
	    	 No Other Warranties
	  	 	24	  
	 13.4
	    	 No Consequential Damages
	  	 	25	  
	 13.5
	    	 BCCA Limitation of Liability
	  	 	25	  
		
	 Article 14 Indemnification
	  	 	25	  
	 14.1
	    	 General Indemnities
	  	 	25	  
	 14.2
	    	 Indemnification Procedure
	  	 	25	  

  

- iii - 

							
		
	 Article 15 Termination
	  	 	26	  
	 15.1
	    	 Termination for Convenience
	  	 	26	  
	 15.2
	    	 Termination for Breach
	  	 	26	  
	 15.3
	    	 Termination on Bankruptcy
	  	 	26	  
	 15.4
	    	 Costs on Termination
	  	 	27	  
	 15.5
	    	 Transfer of Technology
	  	 	27	  
	 15.6
	    	 Return of Confidential Information
	  	 	27	  
	 15.7
	    	 Payment on Termination
	  	 	28	  
	 15.8
	    	 Survival
	  	 	28	  
		
	 Article 16 General Provisions
	  	 	28	  
	 16.1
	    	 Amendments
	  	 	28	  
	 16.2
	    	 Assignment
	  	 	28	  
	 16.3
	    	 Counterparts; Facsimile
	  	 	29	  
	 16.4
	    	 Dispute Resolution
	  	 	29	  
	 16.5
	    	 Enurement
	  	 	29	  
	 16.6
	    	 Further Assurances
	  	 	29	  
	 16.7
	    	 Independent Legal Advice
	  	 	30	  
	 16.8
	    	 Injunction
	  	 	30	  
	 16.9
	    	 Insurance
	  	 	30	  
	 16.10
	    	 Interest
	  	 	30	  
	 16.11
	    	 Notices
	  	 	30	  
	 16.12
	    	 No Waiver
	  	 	31	  
	 16.13
	    	 Relationship of Parties
	  	 	31	  
	 16.14
	    	 Rights and Remedies
	  	 	32	  
	 16.15
	    	 Severability
	  	 	32	  

 COLLABORATIVE RESEARCH AGREEMENT 

THIS AGREEMENT dated for reference the      day of
                    , 2001. 
 BETWEEN:

 CELATOR TECHNOLOGIES INC., having an office at 604 West Broadway, Vancouver, British Columbia, Canada V5Z 1G1
(“Celator”) 
 OF THE FIRST PART 
 AND: 
 BRITISH COLUMBIA CANCER AGENCY, having its administrative offices at
600 West 10th Avenue, Vancouver, British Columbia, Canada V5Z 4E6 (“BCCA”) 
 OF THE SECOND PART 

WHEREAS: 
  

	A.	The parties desire to develop a research program comprised of research projects conducted by BCCA’s personnel pursuant to R&D Work Schedules (as hereinafter
defined) under the direction of Dr. Marcel Bally and Dr. Lawrence Mayer; 

  

	B.	The research program contemplated by this Agreement is of mutual interest and benefit to BCCA and Celator, will further the instructional and research objectives of
BCCA in a manner consistent with its status as a charitable organisation, and may derive benefits for both Celator and BCCA through inventions, improvements, and/or discoveries; 

 

	C.	The parties acknowledge that both Dr. Marcel Bally and Dr. Lawrence Mayer have appointments within BCCA and are also directors and/or officers of Celator and
that Dr. Bally and Dr. Mayer will be required to comply with BCCA policies relating to conflicts of interest. 

  

	D.	The parties desire to outline in detail the conditions for commercialisation of the results of the research program for the mutual benefit of both Celator and BCCA, on
the terms and conditions set out in this Agreement. 

 NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the
premises and of the mutual covenants herein set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto covenant and agree as follows: 

Article 1 Interpretation 

1.1 Definitions 
 In this Agreement,
unless a contrary intention appears, the following words and phrases shall have the meanings set out below: 
  

	 	(a)	“Acceptance” shall have the meaning set out in Section 4.2; 

 

	 	(b)	“Affiliate” of a party hereto shall mean any entity that controls, is controlled by, or is under common control with such party. For purposes of this
definition, a party shall be deemed to control another entity if it owns or controls, directly or indirectly, at least fifty percent (50%) of the voting power of the other entity; 

 

	 	(c)	“Agreement” shall mean this Collaborative Research Agreement including all Exhibits attached to this Agreement; 

 

	 	(d)	“BCCA Personnel” shall mean any personnel of BCCA who perform research or contract research service work, including, without limitation, visiting
scientists, research associates, post-doctoral fellows, graduate students and BCCA staff; 

  

- 2 - 

	 	(e)	“Business Day” shall mean a day that is not a Saturday or a Sunday or a statutory holiday in British Columbia; 

 

	 	(f)	“Celator-Sponsored Intellectual Property” shall mean all Intellectual Property arising from the performance of the Work under this Agreement in the
Fields of Research; 

  

	 	(g)	“Claim” shall mean any action, claim, demand, proceeding, suit, complaint, cause of action, loss, damage, cost or expense (including reasonable legal
fees and disbursements on a solicitor and client basis); 

  

	 	(h)	“Combination Product” shall mean a Royalty-Bearing Product that embodies any technology which is independently invented or developed by Celator, its
Affiliates or sub-licensees or is acquired by Celator, its Affiliates or sub-licensees from a Third Party; 

  

	 	(i)	“Confidential Information” shall mean: 

  

	 	(i)	any and all information disclosed by one party to the other party relating to this Agreement, a Project, an R&D Work Schedule, the Work or the Royalty-Bearing
Products and any other information of a confidential and proprietary nature, including, without limiting the generality of the foregoing, all research, data, specifications, know-how, formulae, processes, plans, drawings, prototypes, models,
documents, reports, studies, records, protocols, instructions, manuals and papers, provided that: 

  

	 	(A)	any such information provided in writing must be marked as confidential, and 

 

	 	(B)	any such information disclosed orally or in some other non-tangible form, must be identified as confidential at the time of disclosure and summarised in writing by the
disclosing party and delivered to the receiving party within thirty (30) days after making the disclosure, and 

  

	 	(ii)	all other materials of any nature whatsoever, whether written or otherwise, created by or for the receiving party, derived from or otherwise relating to such
information, 

 but excluding any portion of such information that: 

 

	 	(iii)	is part of the public domain at the time of disclosure other than through a breach of this Agreement, 

 

	 	(iv)	after disclosure, subsequently becomes part of the public domain other than as a consequence of a breach of an obligation of confidentiality owed to the disclosing
party by the receiving party, 

  

	 	(v)	is obtained by the receiving party from a Third Party with a valid right to disclose it, provided that said Third Party is not under a confidentiality obligation to the
disclosing party, 

  

	 	(vi)	is independently developed by employees, agents or consultants of the receiving party who had no knowledge of or access to the information disclosed by disclosing party
as evidenced by the receiving party’s business records, 

  

	 	(vii)	was known or possessed by the receiving party prior to receipt from the disclosing party, other than through prior disclosure by the disclosing party, as evidenced by
the receiving party’s business records, or 

  

	 	(viii)	is made subject to an order by judicial or administrative process requiring the receiving party to disclose any or all of the information disclosed to it by the
disclosing party, provided that: 

  

	 	(A)	the receiving party shall promptly notify the disclosing party prior to any such disclosure and the disclosing party shall have been given the opportunity where
possible to oppose such disclosure by the receiving party by seeking a protective order or other appropriate remedy, or to waive compliance with the provisions of this Agreement, 

  

- 3 - 

	 	(B)	the receiving party shall disclose only that portion of the information legally required to be disclosed, and 

 

	 	(C)	the receiving party will exercise all reasonable efforts to maintain the confidential treatment of the information. 

A combination of features will not be deemed within the foregoing exceptions merely because individual features are in the public domain
or in the possession of the receiving party unless the combination itself is in the public domain or in the possession of the receiving party; 
  

	 	(j)	“Deliverables” shall mean those items (tangible or intangible) which are to be provided to Celator by BCCA pursuant to this Agreement as set out in one
or more R&D Work Schedules during the Term, including, without limitation, all Work product, materials, Intellectual Property, documentation, reports, schedules and specifications arising from the performance of the R&D Work Schedules ;

  

	 	(k)	“Dr. Bally” shall mean Dr. Marcel Bally of the Advanced Therapeutics Section of the Medical Oncology Department of BCCA; 

 

	 	(l)	“Dr. Mayer” shall mean Dr. Lawrence Mayer of the Advanced Therapeutics Section of the Medical Oncology Department of BCCA;

  

	 	(m)	“Execution Date” shall mean the date shown on page one of this Agreement; 

 

	 	(n)	“FDA” shall mean the United States Food and Drug Administration and any successor entity; 

 

	 	(o)	“Fields of Research” shall mean the following fields of research: 

 

	 	(i)	research relating to lipid-based carriers with low levels of cholesterol (less than 30% by weight), 

 

	 	(ii)	research relating to therapeutically active lipids, including, without limitation, ceramides, phosphatidylinosital (PI) and phosphatidylserine (PS),

  

	 	(iii)	research relating to lipid-based carriers with reactive surfaces, including, without limitation, carriers with negatively charged surfaces, positively charged surfaces
and/or surfaces comprised of modified lipids, 

  

	 	(iv)	research relating to the identification and development of anticancer agent combination and formulations comprising such combinations; and 

 

	 	(v)	such other research as may be agreed by the parties under an R&D Work Schedule; 

but shall exclude any clinical trials of compounds or formulations developed pursuant to this Agreement; 

 

	 	(p)	“Founders Shares” shall mean 5,136,550 Common shares in the capital of Celator issued to those employees, directors and senior officers of Celator set
out in Schedule A to the Consent Resolution of the Directors of Celator dated June 12, 2000; 

  

	 	(q)	“HPB” shall mean the Health Protection Branch of Health Canada and any successor entity; 

 

	 	(r)	“Improvements” means, in respect of any Intellectual Property: 

 

	 	(i)	any and all Patents that claim priority to Patents arising from the Intellectual Property; and 

 

	 	(ii)	any and all inventions arising from the Intellectual Property, whether patented or not; 

 

	 	(s)	“Initial Term” shall have the meaning set out in Section 2.2; 

 

	 	(t)	“Intellectual Property” or “IP” means any discovery, invention, extension, improvement or other thing that may be protected by any
patents, trademarks, copyrights, trade secrets, know-how and all other intellectual and industrial property rights whatsoever and world-wide (whether registered or unregistered and including applications for any of the foregoing);

  

- 4 - 

	 	(u)	“Major Country” shall mean the United States of America, Canada, Japan, the United Kingdom, France, Germany and Italy; 

 

	 	(v)	“Net Sales” shall mean all revenue from the sale of Royalty-Bearing Products by Celator, its Affiliates, licensees, sub-licensees or sub-distributors
to end-users of the Royalty-Bearing Products, less: 

  

	 	(i)	trade class discounts, rebates, quantity or cash discounts, or price reductions allowed or paid, 

 

	 	(ii)	credits or allowances, if any, given or made for purchase charge backs, price reductions, returns, rebates, rejections, recall or destruction of spoiled, damaged,
out-dated, returned or otherwise unacceptable product (voluntarily made or requested or made by an appropriate governmental agency, subdivision or department) on account of or in relation to the invoiced sales price of the Royalty-Bearing Products,

  

	 	(iii)	transportation and handling charges or allowances, including freight, postage, shipping and insurance incurred on account of or in relation to the sale of the
Royalty-Bearing Products, 

  

	 	(iv)	sales or excise taxes and other governmental charges or duties imposed on the production, sale, transportation, delivery, import, export, or use of the Royalty-Bearing
Products, 

  

	 	(v)	reasonable allowances for bad debts and unpaid accounts remaining unpaid in respect of the sale of Royalty-Bearing Products after the exercise of reasonable commercial
efforts to obtain payment; and 

  

	 	(vi)	any amounts paid by Celator in protecting, preparing, filing, prosecuting and maintaining any Royalty-Bearing Patents. 

 

	 	(w)	“Notice of Completion” shall have the meaning set out in Section 4.1; 

 

	 	(x)	“Other Intellectual Property” shall mean Intellectual Property that is not Prior Intellectual Property, that has been or will be researched and
developed by BCCA, and that is not developed pursuant to this Agreement or any other research agreement(s) between Celator and BCCA, whether or not Dr. Bally and/or Dr. Mayer have been or will be named as co-inventors on BCCA’s
invention disclosure forms for such Intellectual Property; 

  

	 	(y)	“Patent” shall mean: 

  

	 	(i)	an issued patent or a patent application, 

  

	 	(ii)	all continuations and continuation(s)-in-part to the patent or patent application (solely to the extent such continuation(s)-in-part contain(s) subject matter on which
claims issuing obtain the benefit of a priority date of any other patent or patent application), 

  

	 	(iii)	all divisions, patents of addition, reissues, renewals and extensions of any of the patent, patent application, continuations and continuation(s)-in-part, and

  

	 	(iv)	all foreign counterparts of any of the foregoing; 

  

	 	(z)	“Person” shall mean and include any individual, corporation, partnership, firm, joint venture, syndicate, association, trust, government body, and any
other form of entity or organisation; 

  

	 	(aa)	“Prior Intellectual Property” shall mean Intellectual Property in the Fields of Research that has been researched and developed at the facilities of
BCCA prior to June 14, 2000 and for which Dr. Bally and/or Dr. Mayer have been or will be named as inventors (with or without third parties) on BCCA’s invention disclosure forms that have been or will be submitted to BCCA by or
on behalf of Celator on or before December 31, 2000 including all inventions and Patents listed in Exhibit B attached to this Agreement and updated from time to time; 

 

	 	(bb)	“Project” shall mean a research and development project as described in an R&D Work Schedule; 

  

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	 	(cc)	“Regulatory Approval” shall mean any and all approvals (including pricing and reimbursement approvals), licences, registrations or authorizations of
any federal, state, provincial or local regulatory agency, department, bureau or other governmental entity, necessary for the manufacture, use, storage, import, transport, marketing, distribution or sale of a Royalty-Bearing Product in a country or
regulatory jurisdiction in the Territory; 

  

	 	(dd)	“R&D Work Schedule” shall mean a work schedule in the form set out in Exhibit A executed by the parties from time to time during the Term,
which sets out the specific details of the research and development activities to be performed by BCCA for Celator in the Fields of Research for a particular research project, including, without limitation, a description of the services to be
performed by BCCA and the deliverables to be delivered by BCCA; 

  

	 	(ee)	“Research Samples” shall mean any physical substances provided by Celator to BCCA pursuant to this Agreement, as set out in an R&D Work Schedule,
including, without limitation, all organisms and cells, and deoxyribonucleic acid molecules, ribonucleic acid molecules, oligonucleotides, protein molecules, peptides, lipids and any other chemical or biochemical compounds, and all products,
progeny, derivatives and novel functional components that are replicated or derived therefrom; 

  

	 	(ff)	“Royalty-Bearing Patent” shall mean any Patent that claims all or any part of any Prior Intellectual Property or any Celator-Sponsored Intellectual
Property; 

  

	 	(gg)	“Royalty-Bearing Product” shall mean any finished product for commercial distribution to Third Parties that embodies one or more Valid Claims;

  

	 	(hh)	“Royalty Period”, in respect of a particular country in the Territory, has the meaning set out in Section 6.2; 

 

	 	(ii)	“Services” shall mean the services which are to be provided to Celator by BCCA pursuant to this Agreement as set out in one or more R&D Work
Schedules during the Term; 

  

	 	(jj)	“Term” shall have the meaning as set out in Section 2.2; 

 

	 	(kk)	“Territory” shall mean all countries world-wide; 

  

	 	(ll)	“Third Party” shall mean any Person other than a party to this Agreement or an Affiliate of a party to this Agreement; 

 

	 	(mm)	“Valid Claim” shall mean, with respect to each country in the Territory: 

 

	 	(i)	a claim of an issued, unexpired Royalty-Bearing Patent, or 

  

	 	(ii)	a claim of a pending patent application for a Royalty-Bearing Patent, provided the claim has not been pending for more than 5 years, 

that has not been: 
  

	 	(iii)	permanently revoked, held invalid or unenforceable by a final decision of a court or governmental agency of competent jurisdiction, which decision is unappealable or
was not appealed within the time allowed therefor, or 

  

	 	(iv)	admitted in writing to be invalid or unenforceable by the holder(s) by reissue, disclaimer or otherwise. 

 

	 	(nn)	“Work” shall mean the research and development activities performed by BCCA under this Agreement during the Term, as specified in one or more R&D
Work Schedules, including the performance of the Services and the provision of the Deliverables therefor. 

 1.2 Other
Definitions. 
 Any words defined elsewhere in this Agreement shall have the particular meaning assigned to the words thereto. 

  

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 1.3 Currency 
 In this Agreement, all references to money or payments shall mean the lawful currency of Canada and all payments made hereunder shall be made in Canadian dollars. Currency conversions necessitated by
Celator’s receipt of Net Sales or other proceeds in a currency other than Canadian dollars shall be made at the closing rate of exchange at which Canadian dollars are legally obtainable at the Bank of Montreal as of the last Business Day of the
calendar quarter for which payment is due and payable. 
 1.4 Best of Knowledge 
 Any reference in this Agreement to “the best of the knowledge of” a party will be deemed to mean the actual knowledge of the senior management of that party, without enquiry. 

1.5 Entire Agreement 
 This Agreement
(including Exhibits and R&D Work Schedules) constitutes the entire agreement among the parties concerning the subject matter hereof, and supersedes all written or oral prior agreements or understandings with respect thereto. 

1.6 Exhibits 
 The Exhibits listed below
and attached hereto shall be deemed to form an integral part of this Agreement: 
 Exhibit A     Research
and Development (R&D) Work Schedule 
 Exhibit B     Prior Intellectual Property 

Exhibit C     Milestones for Assignment of Celator-Sponsored Intellectual Property 

In the event of a conflict between the terms and conditions set out in this Agreement and the terms and conditions set out in any Exhibit hereto, the
terms and conditions set out in this Agreement shall govern. 
 1.7 Governing Law 

This Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia and the laws of Canada in force therein
without regard to its conflict of law rules. All parties agree by executing this Agreement that, subject to Section 16.4 they have attorned to the jurisdiction of the courts of the Province of British Columbia. 

1.8 Headings 
 The headings in this
Agreement are solely for convenience of reference and shall not be used for purposes of interpreting or construing the provisions hereof. 

1.9 Wording 
 Wherever the singular or
masculine form is used in this Agreement, it will be construed as the plural or feminine or neuter form, as the case may be, and vice versa, as the context or the parties require. 

Article 2 Scope of Agreement 
 2.1 Purpose of Agreement 
 The parties agree that the purpose of this Agreement is to:

  

	 	(a)	provide for the transfer from BCCA to Celator of all Prior Intellectual Property; 

 

	 	(b)	establish the terms and conditions on which BCCA will conduct for Celator a mutually agreed program of Celator-sponsored research and development in the Fields of
Research, as well as license and conditionally assign to Celator all resulting Celator-Sponsored Intellectual Property; 

  

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	 	(c)	provide for the issuance to BCCA of a number of shares being equivalent to 5.8% of the Founders Shares in the capital stock of Celator in consideration for the
assignment of Prior Intellectual Property by BCCA to Celator and the covenants and obligations contained in this Agreement; and 

  

	 	(d)	in consideration of the licence and conditional assignment of all Celator-Sponsored Intellectual Property to Celator by BCCA, establish the terms on which Celator will
pay to BCCA a royalty on Net Sales of Royalty-Bearing Products. 

 2.2 Term 

This Agreement shall commence on June 14, 2000 and shall expire on June 13, 2005 (the “Term”), unless renewed by mutual
agreement of the parties or earlier terminated in accordance with the terms and conditions of this Agreement. 
 2.3 Issuance of Celator
Shares to BCCA 
 In consideration of the assignment of Prior Intellectual Property by BCCA to Celator and the rights and obligations set out
in this Agreement, Celator has issued to BCCA, and BCCA acknowledges receipt of, 300,000 Common Shares in the capital stock of Celator, being the equivalent to approximately 5.8% of the Founders Shares. 

Article 3 Research and Development 
 3.1 Performance of Work 
  

	 	(a)	Celator hereby engages BCCA to perform the Work in the Fields of Research and BCCA hereby agrees to perform the Work for Celator, in accordance with the terms and
conditions set out in this Agreement and any R&D Work Schedule for such Work, the form of which is attached as Exhibit A. BCCA’s obligation to perform the Work pursuant to R&D Work Schedules arises only after both parties have
negotiated and signed the particular R&D Work Schedule. All R&D Work Schedules agreed to by both parties become a schedule to, and are governed by, this Agreement. 

 

	 	(b)	BCCA shall use reasonable commercial efforts in conducting all Work, including, without limitation, performance of the Work in compliance with the budget and the
delivery schedule set out in the applicable R&D Work Schedule. 

  

	 	(c)	During the Term, representatives of each of BCCA and Celator shall meet at such times and places as may be mutually agreed, but not less frequently than once per
calendar quarter, to discuss the progress of the Work. 

 3.2 Assistance 

Celator shall provide BCCA with reasonable assistance in the performance of the Work at Celator’s expense. 

3.3 Changes in the Work 
  

	 	(a)	BCCA and Celator shall each have the right to request changes to the Work by written notice delivered to the other party. BCCA and Celator shall meet as soon as
possible after such notification to discuss the impact of the proposed changes, including any impact on the Services, Deliverables, delivery schedule and fees payable under the applicable R&D Work Schedule. 

 

	 	(b)	No change in the Work shall be required to be made or implemented by BCCA, whether requested by either of the parties, until Celator and BCCA have executed a written
change order form for the change, which shall set out any consequential amendments to the applicable R&D Work Schedule. 

  

	 	(c)	Where Celator and BCCA have executed a written change order form to implement a change in the Work, BCCA will implement the change as soon as practicable and the
relevant R&D Work Schedule will be revised accordingly. BCCA and Celator shall cooperate in the making of any such changes. 

  

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 3.4 Reports 
  

	 	(a)	BCCA shall provide to Celator, every 3 months during the Term, in respect of each outstanding R&D Work Schedule, a written interim status report, including written
interim financial statements, for the Work performed thereunder. 

  

	 	(b)	BCCA shall provide to Celator a final Project report, including a written final financial statement, for the Work under each R&D Work Schedule within 60 days after
completion of all Services for the R&D Work Schedule. 

 3.5 Directing Investigators 

 

	 	(a)	BCCA shall perform all Work under the direction of the Dr. Bally and Dr. Mayer unless otherwise agreed by the parties. 

 

	 	(b)	In the event that both Dr. Bally and Dr. Mayer become unable or unwilling to continue a particular Project, and substitute directing investigator(s) mutually
acceptable to Celator and BCCA cannot be obtained within a reasonable period, BCCA and Celator shall each have the option to terminate the applicable R&D Work Schedule in accordance with Subsection 15.1(b). 

3.6 Assignments by Personnel 
 Celator
shall be responsible for causing all BCCA Personnel performing services or work functions under this Agreement to execute, prior to commencing such services or work functions, an assignment of inventions of any Celator-Sponsored Intellectual
Property invented by such BCCA Personnel under this Agreement in order to enable BCCA to carry out its obligations respecting the assignment of Intellectual Property contemplated by this Agreement. 

3.7 Removal of Personnel 
 Celator may
request at any time the removal of (and BCCA will remove in a timely fashion) any BCCA Personnel performing services or work functions in connection with this Agreement if Celator: 

 

	 	(a)	reasonably demonstrates that such BCCA Personnel is not qualified to perform the services or work functions required of such BCCA Personnel for the Project or does not
meet appropriate professional standards; and 

  

	 	(b)	previously provided BCCA and such BCCA Personnel with prior written notice of the problem and a reasonable opportunity to remedy the situation.

 3.8 Consulting 

The parties acknowledge that BCCA Personnel may, whether or not they are performing Work under this Agreement, enter into consulting contracts, research
agreements, service agreements and any other agreements or arrangements whatsoever with Celator or Third Parties, provided that such agreements are not in conflict with the terms and conditions of this Agreement and BCCA’s consulting policy in
place at the relevant time. 
 3.9 Location 
  

	 	(a)	Except as otherwise specified in this Agreement or an R&D Work Schedule, BCCA shall furnish all personnel, materials and equipment necessary to perform the Work.

  

	 	(b)	BCCA may perform the Work at the facilities located at 601 West 10th Avenue, Vancouver, British Columbia, which are owned by the British Columbia Cancer Foundation, or
at such other location as it deems appropriate. 

 3.10 Purchased Equipment 

BCCA shall retain title to any equipment purchased with funds provided by Celator under this Agreement. 

  

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 3.11 Loaned Equipment 
 In the event that Celator loans to BCCA any equipment for the performance of the Work, BCCA and Celator agree that the following terms and conditions shall apply: 

 

	 	(a)	Celator shall ensure that all such equipment is clearly labelled as the property of Celator; 

 

	 	(b)	BCCA shall use the equipment for the sole purpose of conducting the Work, and for no other purpose, and shall permit only BCCA Personnel to use the equipment;

  

	 	(c)	Celator shall provide BCCA with reasonable assistance in the installation of the equipment, if necessary, and BCCA shall make adequate provision for such installation,
including electrical and water connections, as the case may be; 

  

	 	(d)	BCCA shall not remove the equipment from BCCA’s facilities without the prior written consent of Celator; 

 

	 	(e)	Celator represents and warrants that the equipment shall be in good working condition at the time of receipt from Celator, but makes no other warranties,
representations or guarantees of any kind whatsoever, either express or implied by law or custom, regarding the equipment; 

  

	 	(f)	Celator shall be responsible for all maintenance costs in connection with the equipment; 

 

	 	(g)	BCCA assumes all responsibility for the safe use and handling by it and BCCA Personnel of the equipment; 

 

	 	(h)	BCCA acknowledges and agrees that any equipment loaned by Celator hereunder is the property of Celator and that Celator shall retain all right, title and interest in
and to such equipment and nothing in this Agreement shall pass or create any right, title or interest in or to such equipment to or for the benefit of BCCA; and 

 

	 	(i)	Celator may remove any loaned equipment from BCCA facilities: 

  

	 	(i)	immediately upon expiration or earlier termination of this Agreement or the applicable R&D Work Schedule; or 

 

	 	(ii)	at any time during the Term, upon 30 days prior written notice from Celator provided that if such equipment is necessary for the performance of some or part of the Work
under a particular R&D Work Schedule and is not replaced or substituted by Celator, BCCA shall be entitled to terminate its obligations in respect of that part of the Work in that particular R&D Work Schedule in accordance with
Section 15.2. 

 3.12 Research Samples 

 

	 	(a)	In the event that Celator provides to BCCA any Research Samples for the performance of the Work: 

 

	 	(i)	Celator covenants and agrees with BCCA that it shall, upon BCCA’s request: 

 

	 	(A)	supply BCCA with documentation that describes the Research Samples and sets out any known toxicological effects, and 

 

	 	(B)	answer any questions BCCA or its investigators may have regarding the Research Samples prior to or during the performance of the Work; and 

 

	 	(ii)	BCCA covenants and agrees with Celator that it shall: 

  

	 	(A)	use all Research Samples only in compliance with all applicable laws, regulations and guidelines; 

 

	 	(B)	use each Research Sample solely in the performance of the Work and for no other purpose whatsoever; 

 

	 	(C)	not administer the Research Samples to humans and in so far as they are administered to animals, no animal to which the Research Samples are administered, or animal
product derived therefrom, will be used for food, therapeutic or diagnostic purposes, or kept as a domestic pet or livestock; 

  

- 10 - 

	 	(D)	modify, reproduce or replicate the Research Samples except as may be required for the performance of the Work; 

 

	 	(E)	not distribute or release any Research Sample or any derivative thereof to any person other than BCCA Personnel who require access to the Research Samples in the
performance of the Work; 

  

	 	(F)	ensure that no BCCA Personnel shall take or send any Research Sample or any part thereof to any location, other than the BCCA facilities at which the Work is to be
performed; and 

  

	 	(G)	ensure that all BCCA Personnel having access to the Research Samples are made aware of and comply with the terms of this Agreement, including the obligations of
confidentiality contained herein. 

  

	 	(b)	BCCA acknowledges and agrees that the Research Samples are the property of Celator and that Celator shall retain all right, title and interest in and to the Research
Samples, including all proprietary rights thereto, and nothing in this Agreement shall pass or create any right, title or interest in or to the Research Samples to or for the benefit of BCCA. BCCA shall not contest, directly or indirectly,
Celator’s ownership of any Research Samples. 

  

	 	(c)	BCCA shall return any or all Research Samples in its possession or control: 

 

	 	(i)	immediately upon expiration or earlier termination of this Agreement or the applicable R&D Work Schedule, or 

 

	 	(ii)	at any time during the Term, upon 30 days prior written notice from Celator, provided that if such Research Samples are necessary for the performance of some or part of
the Work under a particular R&D Work Schedule and are not replaced or substituted by Celator, BCCA shall be entitled to terminate its obligations in respect of that part of the Work in that particular R&D Work Schedule in accordance with
Section 15.2. 

 3.13 Work for Third Parties 
 BCCA acknowledges that Celator may enter into service contracts with Third Parties that Celator wishes to subcontract to BCCA as a Project under this Agreement. The parties agree that Celator may submit
such Work for Third Parties to BCCA pursuant to an R&D Work Schedule. However, BCCA shall not be required to perform Work for Third Parties set out in an R&D Work Schedule unless BCCA, in its sole and unfettered discretion, advises Celator
in writing that BCCA intends to do so. For any such Work for Third Parties set out in an R&D Work Schedule, the budget set out therein shall include the following: 
  

	 	(a)	the budgeted amounts for all Work performed by BCCA Personnel; 

  

	 	(b)	an overhead fee equal to 25% of the budgeted amounts (not including animal costs); and 

 

	 	(c)	a space fee of $1000 per month per person for Celator personnel working on BCCA premises on a full-time basis under the R&D Work Schedule. The space fee will be
adjusted on a pro-rata basis for any Celator personnel working on BCCA premises on a part-time basis in accordance with such person’s use of the premises. Such Celator personnel shall be under the control of BCCA. 

3.14 Subcontractors 
 BCCA may not
subcontract any Work without the prior written consent of Celator, such consent not be unreasonably withheld. 

  

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 Article 4 Acceptance Procedures 

4.1 Completion 
 BCCA shall provide
Celator with a written notice of completion (a “Notice of Completion”) upon completion of the Work for which a milestone or quarterly payment is payable, as applicable, as set out in the applicable R&D Work Schedule, and upon
final completion of all Work performed under an R&D Work Schedule. BCCA shall deliver to Celator concurrently with any such Notice of Completion, any Deliverables resulting from the Work referenced therein. 

4.2 Acceptance and Deemed Acceptance 

Celator shall: 
  

	 	(a)	accept all Work by written notice delivered to BCCA within 10 Business Days after receipt of a Notice of Completion for such Work from BCCA; or

  

	 	(b)	be deemed to have accepted all Work specified in a Notice of Completion, if Celator fails to notify BCCA in writing of its acceptance or rejection of such Work within
10 Business Days after receipt of the Notice of Completion from BCCA. 

 (such written acceptance or deemed acceptance shall
hereinafter be referred to as “Acceptance”). 
 4.3 Rejection 

 

	 	(a)	Celator may reject any Work by giving written notice of rejection to BCCA within 10 Business Days of receipt of a Notice of Completion from BCCA providing BCCA with a
full disclosure of the grounds for such rejection (“Notice of Rejection”). Following receipt by BCCA of any Notice of Rejection, the parties will mutually develop and agree to a revised delivery schedule which includes delivery of
revisions to the Work (“Revised Work”). 

  

	 	(b)	If, within 30 days of the receipt by BCCA of a Notice of Rejection, the parties cannot agree on a satisfactory content for the Revised Work, or if BCCA has delivered
the Revised Work to Celator pursuant to Subsection 4.3(a) and Celator is not reasonably satisfied with such Revised Work, either party may: 

  

	 	(i)	remove the uncompleted portion of the Work that is in dispute between the parties from the applicable R&D Work Schedule with a corresponding reduction in the fees
payable to BCCA pursuant to Section 5.2 to reflect the change in the Work; 

  

	 	(ii)	terminate the applicable R&D Work Schedule pursuant to Section 15.1 with remittance to BCCA of any amount payable pursuant Section 5.2 for Work performed
by BCCA to the date of termination; or 

  

	 	(iii)	refer this dispute to arbitration pursuant to Subsections 16.4(b) to 16.4(f). 

 Article 5 Fees 
 5.1 Research and Development Fees 

Celator shall pay to BCCA for the performance of the Work in accordance with the terms of this Agreement the budgeted fees and costs set out in the
applicable R&D Work Schedule. Celator shall not be responsible for any changes in the budgeted fees, unless expressly agreed by Celator in writing under Section 3.3 or otherwise under this Agreement. 

5.2 Payment of Fees 
 Celator shall pay
to BCCA the fees for Work actually performed under this Agreement, each payment to be made as specified in the applicable R&D Work Schedule. 

  

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 5.3 Invoices 
  

	 	(a)	BCCA shall issue, upon delivery of any Notice of Completion for the Work, an invoice for the fees agreed upon by the parties in advance and set out in the applicable
R&D Work Schedule, which invoice shall become due and payable 30 days after the date of Acceptance of such Work by Celator. 

  

	 	(b)	Celator shall have 10 days from receipt of an invoice to dispute the accuracy of the invoice, failing which the invoice shall be due and payable as set out in
Subsection 5.3(a). Payment of any invoice shall not be due and payable until any dispute in respect thereof is resolved. 

 5.4
Work-Related Accounts and Audits 
 BCCA shall maintain clear, accurate and complete accounting records for a period of at least 1 year for
all Work performed under this Agreement. Such records shall show the costs and expenses incurred by BCCA in performing the Work in sufficient detail to determine BCCA’s compliance with the fees budgeted in the applicable R&D Work Schedule.

 Article 6 Royalty Payments 
 6.1 Royalties 
 In consideration of the assignment of Prior Intellectual Property under
Section 8.2 and of the Celator-Sponsored Intellectual Property under Section 8.3, Celator shall pay to BCCA, without duplication, the following royalties: 
  

	 	(a)	in respect of Royalty-Bearing Products embodying Valid Claims in the countries of sale and for which only BCCA inventors are named on the Royalty-Bearing Patent:

  

	 	(i)	a royalty of ***** of cumulative Net Sales of Royalty-Bearing Products in the countries of sale in respect of the first ******* of such Net Sales annually in the
Territory, 

  

	 	(ii)	a royalty of ***** of cumulative Net Sales of Royalty-Bearing Products in the countries of sale in respect of such Net Sales equal to and/or in excess of *******
annually in the Territory; 

  

	 	(b)	in respect of Royalty-Bearing Products embodying Valid Claims in the countries of sale and for which BCCA inventors and other inventors are named on the Royalty-Bearing
Patent, a percentage of the royalty rate set out in Subsection 6.1(a) calculated using the following formula: 

  

							
	 Number of BCCA inventors

named on Royalty-Bearing Patent
	 	X	  	 Royalty rate otherwise
 applicable under
 Subsection 6.1(a) based
 on applicable Net Sales
	  	=        Adjusted Royalty Rate
	  
 Total number of
inventors
 named on Royalty-Bearing Patent
	 	  	  

 For the purposes of the foregoing formula, in the event that Dr. Bally and/or Dr. Mayer
are named as inventors on a Royalty-Bearing Patent, they shall be considered BCCA inventors; and 
  

	 	(c)	in respect of Royalty-Bearing Products that do not embody Valid Claims in the countries of sale, the royalties owed by Celator for the sale of such Royalty-Bearing
Products shall be ***** of the royalties provided in Subsection 6.1(a) and 6.1(b), as applicable. 

 BCCA shall
receive a ***** for each Royalty-Bearing Product without regard to ******************************. The royalty payments set forth above shall be payable for each Royalty-Bearing Product on a country-by-country basis. 

6.2 Royalty Period 
 The royalties
payable under this Agreement shall apply in respect of a Royalty-Bearing Product in each country of the Territory for the following periods: 

  

- 13 - 

	 	(a)	in respect of Royalty-Bearing Products referred to in Subsections 6.1(a) and 6.1(b), until the expiration of the last Valid Claim in the country of sale; and

  

	 	(b)	in respect of Royalty-Bearing Products referred to in for Subsection 6.1(c), until the expiration of the last-to-expire or last-to-lapse Valid Claim in the Territory.

 (collectively, the “Royalty Periods”). 
 6.3 Payment of Royalties 
 All royalties payable under Section 6.1 shall: 

 

	 	(a)	be payable within 45 days after the close of each calendar quarter during the Royalty Periods therefor; and 

 

	 	(b)	be made in Canadian dollars without any reduction or deduction of any nature or kind whatsoever, except as may be prescribed by Canadian law. 

6.4 Exclusion from Royalties 
 No
royalties will be payable under Section 6.1 in respect of: 
  

	 	(a)	reasonable quantities of Royalty-Bearing Products used in clinical trials or for compassionate use for which Celator does not receive consideration;

  

	 	(b)	payments, other than Net Sales revenue, received by Celator or its Affiliates or sub-licensees including, without limitation, in respect of research, development or
regulatory approval, including milestone payments, relating to Celator’s products, including Royalty-Bearing Products, or investments in Celator or its Affiliates; and 

 

	 	(c)	amounts derived from sales of Royalty-Bearing Products by Celator to its Affiliate(s) or by Celator or its Affiliate(s) to their respective sub-licensee(s), unless the
Affiliate(s) and/or sub-licensee(s) purchasing the Royalty-Bearing Products, as the case may be, are the end-users of the Royalty-Bearing Products sold. 

 6.5 Adjustment of Royalty 
  

	 	(a)	Upon notice in writing from Celator to BCCA that a Royalty-Bearing Product is a Combination Product, the parties shall forthwith use all reasonable efforts to negotiate
within a reasonable period a reasonable adjustment to the royalty rate set out in Section 6.1 in respect of the Combination Product. The parties agree that the determination of a new royalty rate payable to BCCA shall be based on that
proportion of the royalty rate set out in Section 6.1 that the value of the Valid Claims incorporated therein bears to the value of all valid claims incorporated or exploited in the manufacture, distribution or sale of such Combination Product.
If the parties fail to agree on an adjustment to the royalty rate within 90 days after commencing negotiations, either party may refer the matter to an evaluator under Subsection 6.5(c). 

 

	 	(b)	In the event that any of the Intellectual Property rights assigned to Celator pursuant to Sections 8.2 and 8.3 are restricted pursuant to the terms of resolution of any
Claim, then the royalty rates set out in Section 6.1 shall be equitably adjusted to reflect such restrictions. If the parties fail to agree on an adjustment to the royalty rate within 90 days after commencing negotiations, either party may
refer the matter to an evaluator under Subsection 6.5(c). 

  

	 	(c)	If the parties are unable to agree upon an adjusted royalty rate within 90 days after commencing negotiations, the parties may appoint a mutually acceptable independent
evaluator to determine the adjusted royalty rate. In the event that the parties cannot agree on an evaluator, the appointing authority shall be the British Columbia International Commercial Arbitration Centre or any successor thereto. The parties
shall submit written arguments supporting their respective positions to the evaluator within 30 days after his or her appointment. The evaluator shall determine the adjusted royalty rate for the Combination Products within 30 days after the
submission of written materials by the parties, and such determination shall be binding on the parties. The cost of the evaluation pursuant to this subsection shall be borne equally by Celator and BCCA. 

  

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 6.6 Adjustment for Compulsory Licence 
 If at any time in any country: 
  

	 	(a)	a competent governmental authority grants to a government entity or other Third Party a compulsory licence to manufacture, use or sell any Royalty-Bearing Product with
respect to which royalties would be payable under Section 6.1; or 

  

	 	(b)	Celator is required pursuant to an order issued by a competent government authority or other applicable law to grant to a government entity or other Third Party a
compulsory licence or sub-license to manufacture, use or sell any Royalty-Bearing Product with respect to which royalties would be payable pursuant to Section 6.1; 

 then the royalty payable by Celator on Net Sales for the Royalty-Bearing Product in such country shall be reduced to an amount no greater than the amount paid or payable by the Third Party as
consideration for the compulsory licence or sub-licence. In the event that Celator is required to grant a compulsory licence or sub-licence to a government entity or other Third Party, Celator shall use reasonable commercial efforts to negotiate
and/or enter into such licence or sub-licence on the best terms and conditions available. 
 6.7 Net Sales Reports 

Celator agrees to submit to BCCA, concurrently with the quarterly royalty payments made pursuant to Section 6.3, written reports setting out for the
calendar quarter, for each type of Royalty-Bearing Product and for each country in the Territory: 
  

	 	(a)	all amounts received by Celator, its Affiliates, licensees and sub-licensees, as applicable, from the sale of the Royalty-Bearing Product to end-users of the
Royalty-Bearing Product; 

  

	 	(b)	details of the quantities of the Royalty-Bearing Product sold; 

  

	 	(c)	the amount of any deductions taken from the amounts received by Celator or its Affiliates, as applicable, from the sale of the Royalty-Bearing Product to end-users of
the Royalty-Bearing Product in calculating Net Sales of the Royalty-Bearing Product; 

  

	 	(d)	the amount of Net Sales of the Royalty-Bearing Product; and 

  

	 	(e)	the royalties due and payable to BCCA pursuant to Section 6.1. 

 6.8 Expiration of Royalties 
 Notwithstanding the Term, upon the expiration of the Royalty
Period set out in Section 6.2 in a particular country in the Territory (in this section, the “Expired Country”): 
  

	 	(a)	Celator’s obligations to pay any royalties under Section 6.1(a) and 6.1(b) in respect of the Prior Intellectual Property and the Celator-Sponsored
Intellectual Property shall be automatically terminated in the Expired Country; and 

  

	 	(b)	Celator’s obligations to pay any royalties under Section 6.1(c) in respect of the Prior Intellectual Property and the Celator-Sponsored Intellectual Property
shall be automatically terminated at the expiration of the last-to-expire or last-to-lapse Valid Claim in the Territory. 

 6.9
Expiration/Termination Report 
 For each Royalty-Bearing Product, Celator also agrees to make a written report to BCCA within 90 days after:

  

	 	(a)	the date on which any Royalty-Bearing Product ceases to be a Royalty-Bearing Product; or 

 

	 	(b)	Celator or its Affiliates or their respective sub-licensees last sell that Royalty-Bearing Product 

stating in such report the same information required for quarterly reports of sales of all such Royalty-Bearing Products sold or otherwise disposed of
that were not previously reported to BCCA. 

  

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 6.10 Royalty-Related Accounts and Audit 

 

	 	(a)	Celator shall maintain clear, accurate and complete records for a period of at least 3 years for each calendar quarter during which sales of Royalty-Bearing Products
occurred during the Term. Such records shall show the manufacturing, sales, use and other disposition of Royalty-Bearing Products in sufficient detail to determine the royalties payable to BCCA pursuant to Section 6.1, if any. Celator shall
include in each sublicence granted by it pursuant to this Agreement a provision requiring the sublicensee to make reports to Celator, and to keep and maintain records of sales made pursuant to such sublicence in sufficient detail to determine the
royalties payable to BCCA pursuant to Section 6.1, if any. This Subsection 6.10(a) and the obligations of sublicensees pursuant to this Subsection 6.10(a) shall survive any termination of this Agreement or any sublicence.

  

	 	(b)	During the Term and for a period of 3 years thereafter, Celator, on reasonable notice and at BCCA’s cost and expense, shall permit the books and records maintained
by it pursuant to Subsection (a) to be examined from time to time during Celator’s regular business hours, but not more than once a year, by an independent accounting firm selected by BCCA and reasonably acceptable to Celator, provided
that such independent accounting firm and its accountants are bound by an obligation of confidentiality to disclose to BCCA only the supporting data and calculations supporting their conclusions and report and whether the royalty statements and
payments made by Celator under this Agreement are accurate and, if not accurate, any evidence of non-compliance with the terms and conditions of this Agreement. BCCA shall provide to Celator a copy of any audit reports prepared under this
subsection. In the event the report demonstrates that Celator has underpaid BCCA, Celator shall pay the amount of such underpayment immediately and to the extent such underpayment is more than 5% for the audited period, Celator shall reimburse BCCA
for the expense of the audit. If Celator has overpaid BCCA, Celator may deduct such overpayments from future amounts owed to BCCA. 

 6.11 Confidentiality of Reports 
 Each party agrees that: 

 

	 	(a)	the information set forth in the reports required by Sections 6.7 and 6.9; and 

 

	 	(b)	the records subject to examination under Section 6.10; 

 shall be subject to the obligations of confidentiality set out in Article 10 and shall be maintained in confidence by BCCA and its accounting firm, shall not be used by BCCA or its accounting firm for any
purpose other than verification of Celator’s performance hereunder, and shall not be disclosed by BCCA or its accounting firm to any other Person except for purposes of enforcing the terms of this Agreement. 

Article 7 Taxes 
 7.1
Taxes 
  

	 	(a)	The budgeted fees set out in any R&D Work Schedule shall exclude all sales, value-added, excise, good and services (GST) or other taxes or duties payable in respect
of this Agreement, and Celator will pay and be responsible for all such taxes or duties provided that BCCA shall add such taxes or duties as separate line items to its invoices provided to Celator. 

 

	 	(b)	BCCA covenants and agrees to pay and be responsible for all customary corporate source deductions payable by BCCA in connection with the performance of the Work.

  

	 	(c)	BCCA shall at Celator’s expense co-operate with Celator using all commercially reasonable efforts to assist Celator in obtaining the full benefits available under
Canadian and provincial laws with respect to: 

  

	 	(i)	investment tax credits for scientific research and development; and 

  

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	 	(ii)	scientific research tax credits for the scientific research performed pursuant to this Agreement. 

This cooperation and assistance shall include the preparation, execution and delivery of assignments, of letters of verification, and of
such other documents as may be reasonably requested by Celator. 
  

	 	(d)	If any law or regulation in any country requires the withholding by Celator of any taxes due on royalty payments to be remitted to BCCA under this Agreement, such taxes
shall be deducted from the amounts paid to BCCA, provided that Celator shall take all reasonable measures to reduce the amount of such taxes. If the taxes are deducted from the amounts paid to BCCA, then upon request by BCCA, Celator shall furnish
to BCCA the originals of all official receipts for such taxes, if any, and such other evidence of such taxes and payment thereof and shall provide reasonable assistance to BCCA in connection with efforts by BCCA to obtain a credit for such taxes.

 Article 8 Intellectual Property 
 8.1 Title 
 Except as otherwise provided in this Agreement, as between Celator and BCCA:

  

	 	(a)	title to and ownership of all rights in and to all Intellectual Property owned by Celator or licensed to Celator by Third Parties shall at all times remain with Celator
and no rights in or to any such Intellectual Property shall vest in BCCA; and 

  

	 	(b)	title to and ownership of all rights in and to all Intellectual Property owned by BCCA, including Other Intellectual Property, or licensed to BCCA by Third Parties
shall at all times remain with BCCA and no rights in or to any such Intellectual Property shall vest in Celator. 

 8.2
Assignment of Prior Intellectual Property 
  

	 	(a)	BCCA hereby sells and assigns to Celator all its right, title and interest in all countries throughout the world in and to all Prior Intellectual Property, including,
without limitation, all its right, if any, title and interest, if any, in and to those inventions and Patents described in Exhibit B. 

  

	 	(b)	Subject to the terms and conditions in this Agreement, Celator hereby grants to BCCA a perpetual, world-wide, non-exclusive, royalty-free licence to use the Prior
Intellectual Property solely for research, scholarly publication, educational use, and other non-commercial purposes, with a right to sublicense the Prior Intellectual Property to the University of British Columbia (“UBC”) for such
purposes, provided that BCCA provides to Celator, prior written notice thereof, including a copy of the sublicence agreement. BCCA shall not sublicense any Prior Intellectual Property to any Person (except to UBC, as set out above) nor use any Prior
Intellectual Property for any commercial purposes whatsoever, without the prior written consent of Celator. BCCA shall ensure that any sublicence granted to UBC hereunder shall restrict UBC from using the Prior Intellectual Property for any
commercial purposes whatsoever. 

 8.3 Licence and Assignment of Celator-Sponsored Intellectual Property 

 

	 	(a)	Celator-Sponsored Intellectual Property shall be owned by BCCA. Subject to this Subsection 8.3(a) and Subsections 8.3(b) and 8.3(c), until such time as Celator achieves
the milestones set out in Exhibit C hereto, BCCA hereby grants to Celator an exclusive licence in the Territory under the Celator-Sponsored Intellectual Property to research, develop, make and have made, use and have used, sell and have sold,
import and to distribute, market, lease, license or sublicense and to have distributed, marketed, leased, licensed or sublicensed the Royalty-Bearing Products and any precursors to a potential Royalty-Bearing Product. The parties agree that the
royalty payable pursuant to Section 6.1 shall be the sole royalty payable in respect of the Prior Intellectual Property and the Celator-Sponsored Intellectual Property and that no additional royalty shall be payable by Celator as a result of
the grant of licence hereunder. 

  

- 17 - 

	 	(b)	Upon the achievement by Celator of the milestones set out in Exhibit C hereto, at Celator’s request, and in consideration for the royalty payable pursuant
to Section 6.1, BCCA shall assign to Celator all its then existing right, title and interest in the Territory in and to all Celator-Sponsored Intellectual Property owned by BCCA that is an Improvement on Prior Intellectual Property. This
obligation of assignment shall be continuing and include all Celator-Sponsored Intellectual Property arising after Celator has achieved the aforementioned milestones that is an Improvement on Prior Intellectual Property. 

 

	 	(c)	Upon the achievement by Celator of the milestones set out in Exhibit C hereto, and upon receipt by Celator of regulatory authorization to commence Phase I
clinical trials on a product candidate(s) that incorporates Celator-Sponsored Intellectual Property that is not an Improvement on Prior Intellectual Property, BCCA shall, at Celator’s request, assign to Celator all its then existing right,
title, and interest in the Territory in and to such Celator-Sponsored Intellectual Property owned by BCCA as is incorporated in such product candidate(s), and any Improvements thereto. 

 

	 	(d)	Subject to the terms and conditions in this Agreement, Celator hereby grants a world-wide, non-exclusive, royalty-free licence to BCCA to use the Celator-Sponsored
Intellectual Property assigned to Celator pursuant to Subsections 8.3(b) and 8.3(c) solely for research, scholarly publication, educational use, and other non-commercial purposes, with a right to sublicense the Celator-Sponsored Intellectual
Property to UBC for such purposes, provided that BCCA provides to Celator, prior written notice thereof, including a copy of the sublicence agreement. BCCA shall not sublicense any Celator-Sponsored Intellectual Property to any Person (except to
UBC, as set out above) nor use any Celator-Sponsored Intellectual Property for any commercial purposes whatsoever, without the prior written consent of Celator. BCCA shall ensure that any sublicence granted to UBC hereunder shall restrict UBC from
using the Celator-Sponsored Intellectual Property for any commercial purposes whatsoever. 

 8.4 Revocation of Licence

  

	 	(a)	BCCA may revoke the licence to all Celator-Sponsored Intellectual Property set out in Section 8.3 upon the occurrence of any bankruptcy event listed in
Section 15.3. 

  

	 	(b)	BCCA may revoke the licence to particular Celator-Sponsored Intellectual Property set out in Section 8.3 in the Territory or with respect to a particular country,
as the case may be, for failure by Celator to exercise diligence in accordance with Section 8.8 in the commercialisation of Royalty-Bearing Products incorporating such Celator-Sponsored Intellectual Property in the Territory or a particular
country. 

  

	 	(c)	Notwithstanding the remedy available under Section 8.9, BCCA may, alternatively, in respect of Celator-Sponsored Intellectual Property, revoke the licence set out
in Section 8.3 to a particular Royatly-Bearing Patent comprising Celator-Sponsored Intellectual Property in the Territory or with respect to a particular country, as the case may be, following a determination by Celator in accordance with
Section 8.9 that it will not proceed with the commercialisation of the particular Royalty-Bearing Patent in the Territory or a particular country. 

  

	 	(d)	BCCA may revoke the licence to particular Celator-Sponsored Intellectual Property set out in Section 8.3 in the event Celator fails within 30 days to reimburse
BCCA for the cost of insurance coverage obtained by BCCA pursuant to Section 16.9(b) with respect to clinical trials on products containing such Celator-Sponsored Intellectual Property. 

8.5 Disclosure of Inventions 
 During the
Term and for 6 months thereafter, each party shall promptly disclose to the other in a timely fashion all inventions and discoveries arising from the performance of the Work which have been disclosed to such party by the inventors in accordance with
BCCA’s patent policy in place at the time of disclosure. 

  

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 8.6 Other Intellectual Property 
 The parties acknowledge and agree that all Intellectual Property that is Other Intellectual Property that has been or will be researched and developed at BCCA’s facilities which is not developed
pursuant to this Agreement, whether or not Dr. Bally and/or Dr. Mayer have been or will be named as co-inventors therefor, may be commercialised by BCCA, without obligation to do so, in accordance with its internal patent and
commercialisation policies, and that BCCA is under no obligation to offer to license, sell, transfer or otherwise negotiate with Celator any rights for or with respect to such Other Intellectual Property. 

8.7 UBC Affiliation Agreement 
 Celator
acknowledges having been advised that UBC may jointly own certain of BCCA’s Intellectual Property where a disclosure lists both BCCA employees and UBC employees and/or BCCA employees who also have a UBC appointment. BCCA will utilise reasonable
efforts to request UBC to assign all its right, title and interest in such jointly owned Intellectual Property to BCCA that is relevant to the grants set out in this Article 8. 
 8.8 Diligence in Commercialisation 
  

	 	(a)	In the event that the clinical studies conducted by Celator in respect of a Royalty-Bearing Product demonstrate the requisite safety and efficacy reasonably required
for commercialisation of the Royalty-Bearing Product, Celator agrees to utilise sound and reasonable business practice and judgement in developing and commercialising the Royalty-Bearing Product, including obtaining the appropriate regulatory
approvals therefor. 

  

	 	(b)	Celator agrees that it will utilise sound and reasonable business practice and judgement in determining the Major Countries in which it desires to sell the
Royalty-Bearing Product and it will use reasonable commercial efforts to achieve the first commercial sale of the Royalty-Bearing Products in such Major Countries within 9 months after obtaining Regulatory Approval for the sale of the
Royalty-Bearing Product in the Major Country, in accordance with the normal practices and standards established by Celator or its marketing partner or sub-licensee for such country, as the case may be. In the event that BCCA reasonably believes that
Celator or its marketing partner or sub-licensee, as the case may be, has not used reasonable commercial efforts to achieve the first commercial sale of the Royalty-Bearing Product in a particular Major Country, BCCA may provide written notice
thereof to Celator and Celator will either exercise such reasonable efforts or provide BCCA with an explanation as to how it has used reasonable commercial efforts to do so. 

 

	 	(c)	For the purposes of Subsection (b), Celator or its marketing partner or sub-licensee, as the case may be, shall not be in breach of its obligations under Subsection
(b) during any particular period during the Term where it determines utilizing sound and reasonable business practice and judgement that a decision of a relevant governmental authority in a Major Country relating to the price or reimbursement
for a Royalty-Bearing Product renders the commercial sale of the Royalty-Bearing Product commercially unviable in the country during such period. 

 8.9 Decision Not to Commercialise 
  

	 	(a)	Notwithstanding Section 8.7, Celator may, in its sole discretion, at any time during the Term, determine for any reason that it will not proceed with:

  

	 	(i)	the commercialisation of a Royalty-Bearing Patent across the whole of the Territory; or 

 

	 	(ii)	the commercialisation of a Royalty-Bearing Patent in a particular country in the Territory, 

Celator agrees to promptly disclose any such determination to BCCA. 

 

	 	(b)	In the event that Celator determines that it will not commercialise a Royalty-Bearing Patent in the whole of the Territory, Celator shall provide written notice thereof
to BCCA, and such notice shall be deemed to be notice that Celator is willing to *********************************** as may be mutually agreed by the parties. 

  

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	 	(c)	In the event that Celator determines that it will not commercialise a Royalty-Bearing Patent in one or more particular countries in the Territory, Celator shall provide
written notice of the determination to BCCA, and such notice shall be deemed to be notice that Celator is willing to**********************************************************
*************************************************************************** as may be mutually agreed by the parties. 

  

	 	(d)	Following receipt of notice by BCCA under Subsections 8.8(b) and 8.8(c), BCCA shall, within 30 days, provide written notice to Celator indicating whether it wishes to
******************** as set out in the notice. In the event that BCCA desires to obtain a licence to the Royalty-Bearing Patent, the parties shall promptly commence good faith negotiations to establish the terms and conditions on which
************************************************************ ***********************************. In the event that the parties fail to agree on the terms and conditions of such licence within 90 days after the commencement of negotiations, or such
longer period as the parties may agree, the matter will be referred to binding arbitration under Section 16.4. 

 Article 9 Patents; Prosecution and Litigation 
 9.1 Prosecution of Patents

  

	 	(a)	Celator shall be responsible for protecting, preparing, filing, prosecuting and maintaining all Patents in respect of the Prior Intellectual Property and the
Celator-Sponsored Intellectual Property and shall do so in a timely manner. Upon request from Celator, BCCA will deliver to Celator copies of all notebooks, research notes, and other documents in the possession of BCCA relating to the Prior
Intellectual Property and the Celator-Sponsored Intellectual Property. During the Term, BCCA shall co-operate with Celator in Celator’s effort to ensure that all Patent applications prepared and filed by Celator cover all items of commercial
interest and importance. While Celator shall be responsible for making final decisions regarding the scope and content of such Patent applications and the prosecution thereof, BCCA shall be given an opportunity to review and comment on all such
matters concerning such Patents and their prosecution. 

  

	 	(b)	Celator shall keep BCCA advised as to all developments with respect to any Royalty-Bearing Patents prepared, filed or maintained by it hereunder and shall promptly
supply BCCA with copies of all documents to be filed in connection therewith, in sufficient time for BCCA to review and provide comments thereon. 

  

	 	(c)	In the event that Celator intends to finally abandon in any country in the Territory any Royalty-Bearing Patent or any part thereof, Celator shall notify BCCA and BCCA
shall have the right, in its sole discretion and at its expense, to assume the prosecution and maintenance of such Royalty-Bearing Patent or part thereof in such country. 

 9.2 Defence of Infringement Suits 
  

	 	(a)	In the event of the initiation of any suit (an “Infringement Suit”) in the Territory by a Third Party against Celator or BCCA or any of their
respective Affiliates for Patent infringement arising from the manufacture, use, sale, distribution or marketing of a Royalty-Bearing Product, the party sued shall promptly notify the other party in writing. 

 

	 	(b)	Celator shall have the first right, but not the obligation, to defend the Infringement Suit, in which case Celator will provide BCCA with the opportunity to participate
in the defence of such Infringement Suit, and BCCA shall at Celator’s expense assist and co-operate with Celator in any such litigation. 

  

	 	(c)	If Celator fails to defend the Infringement Suit within a reasonable time after receiving notice of the Infringement Suit, then BCCA shall have the right, but not the
obligation, to defend the Infringement Suit and Celator shall assist and cooperate with BCCA in any such litigation. 

  

	 	(d)	The party conducting the defence of an Infringement Suit shall have full control over its conduct; provided neither party shall enter into any settlement with respect
to an Infringement Suit without the other party’s consent, which consent shall not be unreasonably withheld, conditioned or delayed. 

  

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 9.3 Infringement by Third Parties 

 

	 	(a)	In the event that Celator or BCCA becomes aware of actual or threatened infringement by a Third Party of a Royalty-Bearing Patent within the Territory (a “Third
Party Infringement”), that party shall promptly notify the other party in writing. 

  

	 	(b)	Celator shall have the first right, but not the obligation, to bring an infringement action against any alleged infringer in the event of a Third Party Infringement,
Celator will provide BCCA with the opportunity to participate in the infringement action, and BCCA shall at Celator’s expense assist and co-operate with Celator in any such litigation. In this case, the costs of the litigation shall be borne by
Celator. 

  

	 	(c)	If Celator fails to take action regarding a Third Party Infringement within a reasonable time after becoming aware of the Third Party Infringement, then BCCA shall have
the right, but not the obligation, to bring an infringement action against the alleged infringer and Celator shall cooperate with BCCA in any such litigation. In this case, the costs of the litigation shall be shared equally by the parties, provided
that any amounts paid by Celator in respect of such litigation shall be credited against the royalty amounts otherwise payable to BCCA under Section 6.1. 

 

	 	(d)	The party conducting the litigation in respect of a Third Party Infringement shall have full control over its conduct; provided that: 

 

	 	(i)	neither party shall enter into any settlement with respect to such suit without the other party’s consent, which consent shall not be unreasonably withheld,
conditioned or delayed; and 

  

	 	(ii)	no party shall have the obligation to consent to any settlement which imposes on such party any liability or obligation which can not be assumed and performed in full
by the other party. 

 9.4 Status of Proceedings 
 Each party shall keep the other party informed of the status of their respective activities regarding any Infringement Suits, Third Party Infringement or any other litigation, including settlement
thereof, concerning any Royalty-Bearing Patents or Royalty-Bearing Products. Each party shall execute all necessary and proper documents and perform such actions as shall be appropriate to allow the other party to institute, prosecute and/or defend
such actions. 
 Article 10 Confidentiality; Publicity; Publications 

10.1 Obligation of Confidentiality 
 It
is contemplated that in the course of the performance of this Agreement each party may, from time to time, disclose its Confidential Information to the other party. Each party agrees: 

 

	 	(a)	to keep and use in strict confidence all Confidential Information of the other party that each party acquires, sees, or is informed of, as a direct or indirect
consequence of this Agreement and to not, without the prior written consent of the other party, disclose any such Confidential Information or recollections thereof to any Person other than its corporate counsel and employees who are under an
obligation of confidentiality on terms substantially similar to those set out in this Agreement, who have been informed of the confidential nature of the Confidential Information and who require such information in the performance of their duties;

  

	 	(b)	not to use, copy, duplicate, reproduce, translate or adapt, either directly or indirectly, any of the Confidential Information of the other party or any recollections
thereof for any purpose other than the performance of the Work or the commercialisation of the Royalty-Bearing Products, without the other party’s prior written approval; 

  

- 21 - 

	 	(c)	that all copies, duplicates, reproductions, translations or adaptations of any Confidential Information of the other party permitted to be made hereunder shall be
clearly labelled as confidential; 

  

	 	(d)	to take all reasonable steps to prevent material in its possession that contains or refers to Confidential Information of the other party from being discovered, used or
copied by Third Parties and that it shall use reasonable steps to protect and safeguard all Confidential Information of the other party in its possession from all loss, theft or destruction; and 

 

	 	(e)	notwithstanding any restriction contained in this Section 10.1, each party will have the right to use and disclose such portions of the Confidential Information as
is necessary for that party to make full use of any licence granted by one party to the other under this Agreement. 

 10.2
Prior Disclosures 
 All information treated as confidential or proprietary information by the parties prior to the date of this Agreement
shall be treated as Confidential Information under this Agreement. 
 10.3 Freedom of Information and Protection of Privacy
Act 
  

	 	(a)	Celator acknowledges that the Freedom of Information and Protection of Privacy Act, R.S.B.C. 1996, c. 165, as amended from time to time (in this section, the
“Act”), applies to BCCA. Celator acknowledges and agrees that any Confidential Information disclosed by it to BCCA under this Agreement may be subject to a request for public disclosure under the Act. 

 

	 	(b)	Celator acknowledges that the Act provides an exemption from disclosure for information which would reveal trade secrets, commercial, financial, labour relations,
scientific or technical information supplied explicitly or implicitly in confidence to BCCA and which could reasonably be expected to harm significantly Celator’s competitive position, interfere significantly with a Third Party’s
negotiating position, or result in other harm as specified in Section 21 of the Act. Accordingly, if any information supplied to BCCA fits within Section 21 of the Act, Celator must specifically advise BCCA and request that BCCA not
disclose that information. The advice to BCCA must be specific and clear in each case. 

 10.4 Publicity 

Neither party may use the name of the other party nor of any member of the other party’s personnel or disclose the details of any Project in any
publicity, advertising, or news release, without the prior written approval of the other party, provided that notwithstanding Section 10.1, BCCA may disclose the identity of Celator, the title of the Projects, the names of Dr. Bally and
Dr. Mayer, the period for performance of the Work for the Projects, the general nature of the research, and the amount of funding being provided by Celator in support of the Projects. 
 10.5 Publications 
  

	 	(a)	Notwithstanding Section 10.1, Celator acknowledges that the policies of BCCA require that the results of the Work be publishable, subject to Subsection (b). The
parties therefore agree that researchers engaged in the performance of the Work shall not be restricted from presenting at symposia, national, or regional professional meetings, or from publishing in abstracts, journals, theses, or dissertations, or
otherwise, whether in printed or in electronic media, methods and results of the Work, provided that: 

  

	 	(i)	BCCA provides Celator with copies of any proposed presentation or proposed publication, and any other documents, and information in BCCA’s possession or which are
made available to BCCA by its investigators, which are requested by Celator that are reasonably necessary to make a patent application, at least 30 days in advance of the submission of the proposed presentation or proposed publication to a journal,
editor, or other Third Party; and 

  

	 	(ii)	Celator has not, within 30 days after receipt of said copies, objected in writing to the proposed presentation or proposed publication in accordance with Subsection
(b). 

  

- 22 - 

	 	(b)	Celator may object to a proposed presentation or proposed publication on the grounds that: 

 

	 	(i)	it contains Confidential Information that was disclosed to BCCA by Celator; or 

 

	 	(ii)	it discloses patentable subject matter which needs protection. 

 In the event that Celator makes an objection under Paragraph (i), BCCA shall utilise reasonable effort to request that its researchers immediately remove all of Celator’s Confidential Information
from the proposed presentation or proposed publication, as the case may be, after which BCCA and its researchers may proceed with the submission of the proposed presentation or proposed publication, as amended. In the event that Celator makes an
objection under Paragraph (ii), BCCA shall utilise reasonable efforts to request that its researchers refrain from submitting the proposed publication or proposed presentation, as the case may be, until the earlier of: 

 

	 	(iii)	the filing of one or more patent applications with one or more patent offices directed to such patentable subject matter; or 

 

	 	(iv)	the expiration of 60 days after the date of receipt of the written objection from Celator by BCCA; 

after which BCCA and its researchers may proceed with the submission of the proposed presentation or proposed publication. 

10.6 Duration of Obligation 
 Unless
otherwise agreed between the parties, the obligations of the parties relating to Confidential Information set out in this Article 10 shall expire ***** after termination of this Agreement. 

Article 11 Research Records and Inspections 
 11.1 Maintenance of Research Records 
 BCCA shall adopt and maintain, and shall require any
of its subcontractors permitted to perform Work under this Agreement to maintain, in respect of the Work, a records retention policy consistent with good laboratory practices and all applicable laws, including, without limitation, the recording and
maintaining of laboratory notebooks, protocols, manufacturing records, formulation records, test results, samples and support data, which policy shall require that all such records be maintained for a period of at least 5 years after the date the
record was created. 
 11.2 Access and Monitoring 
 During the Term, Celator and its representatives shall have reasonable supervised access to all BCCA facilities used in performing the Work, and may, in its sole discretion, have a representative present
at such BCCA facilities on a full-time or part-time basis to observe and assist in the performance of the Work. A space fee shall be payable by Celator in accordance with the terms set out in Subsection 3.13(c). 

11.3 Inspection and Audit of Facilities 
  

	 	(a)	During the Term, Celator shall have the right to have its representatives present for and to observe any inspection of the BCCA facilities by any governmental or
regulatory authority related, directly or indirectly, to the Work. BCCA shall notify Celator promptly after learning that any such inspection is being conducted or will be conducted. 

 

	 	(b)	During the Term, BCCA shall also provide to Celator, upon Celator’s reasonable request, copies of any quarterly reports relating to the Work in its possession or
control relating to the performance of the Work by any of BCCA’s subcontractors under this Agreement. 

 11.4 Cessation of
Work 
 In the event that, as a result of an audit or inspection under Section 11.3, a determination is made that BCCA is non-compliant
in a manner materially affecting the performance of the Work, Celator may request that BCCA promptly cease all Work, and if so requested, BCCA shall not undertake any Work until the non-compliance has been corrected and approved by Celator, such
approval not to be unreasonably withheld. 

  

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 Article 12 Legal And Regulatory Matters 

12.1 Compliance with Laws 
 In performing
the Work under this Agreement, BCCA shall at all times comply with all applicable laws, rules, regulations or other requirements applicable to its business and to the performance of the Work and shall obtain and maintain in full force and effect all
applicable licences, permits, certificates, authorisations or approvals from all governmental authorities necessary to conduct its business and perform the Work. In particular, but without limiting the generality of the foregoing, BCCA shall at all
times maintain in full force and effect all licences, permits, certificates, authorisations or approvals required under applicable environmental laws, including those relating to the handling, generation, transportation, treatment, storage and
disposal or other management of waste and regulated substances, including, without limitation, radioactive, hazardous and toxic substances. 

12.2 Notice of Reports 
 BCCA shall
provide to Celator within 5 Business Days after receipt, copies of any reports of any governmental or regulatory authority which directly impacts the performance of the Work, including, without limitation, correspondence from any health or
environmental authorities. 
 12.3 Regulatory Approvals 
 Celator shall, in respect of any Royalty-Bearing Products, assume responsibility for making submissions required to obtain applicable regulatory approvals or authorisations in each country which it
determines is commercially reasonable, and all subsequent submissions required to maintain or defend such approvals or authorisations or amendments or supplements thereto in such countries. On reasonable request from Celator, BCCA shall provide
assistance to Celator at Celator’s expense in making such submissions. Except as prohibited by law, Celator shall be the owner of any registration approval application thereby obtained. 
 12.4 Recalls 
 Celator shall have the sole responsibility to implement any recall relating
to the Royalty-Bearing Products. In the event of any recall or other similar governmental action with respect any Royalty-Bearing Product, BCCA shall provide Celator with reasonable co-operation and assistance relating thereto. 

Article 13 Representations, Warranties and Covenants 
 13.1 BCCA Representations, Warranties and Covenants 
 BCCA hereby represents, warrants and
covenants to Celator as follows: 
  

	 	(a)	BCCA has been duly organized and is validly subsisting and in good standing in its jurisdiction of organization and has the power to carry on the business now being
conducted by it; 

  

	 	(b)	BCCA has the right to enter into this Agreement and this Agreement is a legal and valid obligation binding upon BCCA and is enforceable in accordance with its terms;

  

	 	(c)	To the best of its knowledge, and except as herein set forth, BCCA has not made and will not make any commitments to Third Parties inconsistent with or in derogation of
BCCA’s obligations under this Agreement and BCCA is not subject to any obligations that would prevent it from entering into or carrying out its obligations under this Agreement, provided, always, and it is expressly agreed by the parties, that
notwithstanding anything herein otherwise provided in this Agreement, BCCA makes no representation or warranty, express or implied, with respect to title or ownership of the Prior Intellectual Property, or Celator-Sponsored Intellectual Property.

  

	 	(d)	all Work will be performed by BCCA in a competent, workmanlike fashion and in accordance with those policies, standard operating procedures, conventions and techniques
that are of a recognised and acceptable professional standard customary in the scientific community and in accordance with all laws, regulations and ordinances, whether federal, provincial, municipal or otherwise; 

  

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	 	(e)	all Work to be performed by BCCA shall, to the best of its abilities, be performed by BCCA in accordance with the applicable R&D Work Schedule;

  

	 	(f)	all personnel furnished by BCCA to perform the Work shall be qualified to perform the tasks and functions which they are assigned; and 

 

	 	(g)	to the best of knowledge of BCCA as of the date hereof, there are no pending actions, either actual or threatened, relating to the Prior Intellectual Property which
BCCA has not disclosed to Celator. 

 13.2 Celator Representations, Warranties and Covenants 

Celator hereby represents, warrants and covenants to BCCA as follows: 
  

	 	(a)	Celator has been duly organized and is validly subsisting and in good standing in its jurisdiction of organization and has the power to carry on the business now being
conducted by it; 

  

	 	(b)	Celator has the power, authority and capacity to enter into this Agreement and to carry the transactions contemplated by this Agreement, all of which have been duly and
validly authorized by all requisite corporate proceedings, and this Agreement is a legal and valid obligation binding upon Celator and enforceable in accordance with its terms; 

 

	 	(c)	all personnel furnished by Celator to assist BCCA in the performance of the Work shall be qualified to perform the tasks and functions which they are assigned; and

  

	 	(d)	Celator has not made and will not make any commitments to Third Parties inconsistent with or in derogation of Celator’s obligations under this Agreement and
Celator is not subject to any obligations that would prevent it from entering into or carrying out its obligations under this Agreement. 

 13.3 No Other Warranties 
  

	 	(a)	THE WARRANTIES SET OUT IN SECTIONS 13.1 AND 13.2 AND ELSEWHERE IN THIS AGREEMENT ARE THE SOLE WARRANTIES MADE BY EITHER PARTY TO THE OTHER AND THERE ARE NO OTHER
WARRANTIES, REPRESENTATIONS OR GUARANTEES OF ANY KIND WHATSOEVER, EITHER EXPRESS OR IMPLIED, REGARDING THE WORK OR ANY DELIVERABLES OR SERVICES TO BE SUPPLIED HEREUNDER, INCLUDING, BUT NOT LIMITED TO ANY EXPRESS OR IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 

  

	 	(b)	BCCA makes no representations, warranties or guarantees of any kind, either express or implied, with respect to the usefulness of any data or other results arising from
the Work or with respect to any Confidential Information it may disclose to Celator. BCCA makes no representations, conditions or warranties, either express or implied with respect to the Prior Intellectual Property, Celator-Sponsored Intellectual
Property or Royalty-Bearing Products. BCCA specifically disclaims any implied warranty, condition, or representation of non-infringement or merchantability or fitness for a particular purpose. Celator expressly and unconditionally assumes all risk
with respect to its use of such Intellectual Property. Celator hereby acknowledges that the Work shall be of an experimental and exploratory nature, that BCCA does not guarantee any particular results from the performance of the Work, and that it
has been advised by BCCA to undertake its own due diligence with respect to the Work to be performed by BCCA. 

  

	 	(c)	Celator makes no representations, warranties or guarantees of any kind, express or implied, with respect to any specifications, protocols, procedures or processes
provided, specified or agreed to by Celator under this Agreement, and in particular, Celator makes no representation, warranty or guarantee that such specifications, protocols, procedures or processes shall be fit for any particular purpose, and
BCCA shall be obligated to satisfy itself that such specifications, protocols, procedures and processes are suitable for and compatible with BCCA’s facilities and proposed Work under this Agreement. 

  

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 13.4 No Consequential Damages 
 SAVE AND EXCEPT FOR THE INDEMNIFICATION OBLIGATIONS CONTAINED IN SECTION 14.1, NEITHER PARTY SHALL BE LIABLE FOR ANY LOST PROFITS, SPECIAL, INCIDENTAL, CONSEQUENTIAL OR INDIRECT DAMAGES SUFFERED BY THE
OTHER PARTY ARISING FROM ANY DEFECT, ERROR OR FAILURE TO PERFORM UNDER THIS AGREEMENT, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, EVEN IF THE SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, PROVIDED THAT THE FOREGOING LIMITATION
SHALL NOT APPLY WHERE ANY SUCH DAMAGES ARISE FROM THE WILFUL MISCONDUCT OF EITHER PARTY. 
 13.5 BCCA Limitation of Liability 

Notwithstanding anything otherwise provided, BCCA’s total liability, whether under the express or implied terms of this Agreement, in tort (including
negligence), or common law, for any loss or damage suffered by Celator, whether direct or indirect, special or any other similar or like damage that may arise or does arise from any breaches of this Agreement by BCCA, its board of directors,
officers, employees, faculty, students and agents shall be limited to the amount of the royalty payments paid or that become payable by Celator to BCCA under this Agreement and to the fair market realizable value of the shares issued to BCCA by
Celator. 
 Article 14 Indemnification 
 14.1 General Indemnities 
  

	 	(a)	Celator hereby agrees to defend, save harmless and indemnify BCCA and its respective directors, officers, employees, faculty, students and agents (in this subsection,
the “BCCA Indemnified Parties”) from and against any and all Claims by Third Parties of whatsoever kind or nature (including but not limiting the generality of the foregoing, in respect of death, injury, loss or damage to any person
or property) arising out of: 

  

	 	(i)	the receipt or use by Celator of any of BCCA’s Confidential Information, Celator-Sponsored Intellectual Property, and Prior Intellectual Property or any data or
other results arising from the Project; 

  

	 	(ii)	the conduct of any clinical trials in which any Royalty-Bearing Product is used; 

 

	 	(iii)	the work of Celator personnel on BCCA premises pursuant to Subsection 3.13(c); 

 

	 	(iv)	products liability Claims arising from the manufacture, marketing, distribution and sale of any Royalty-Bearing Products, including recalls; 

 

	 	(v)	any breach by Celator of any of its representations, warranties or covenants made under this Agreement; or 

 

	 	(vi)	Celator’s negligence or wilful misconduct; 

 except to the proportionate extent that such Claims were caused by the negligence or wrongful misconduct of the BCCA Indemnified Parties or any of them or a breach of an express representation, warranty
or covenant by BCCA Indemnified Parties. 
 14.2 Indemnification Procedure 
 If BCCA becomes aware of any written Claim against any Person indemnified under this Article 14 (in this section, an “Indemnified Person”) for which it reasonably believes that Celator
may be required to indemnify such Person, BCCA shall, as soon as reasonably practicable after forming such belief, give notice of the Claim to Celator, including full particulars of the Claim to the extent known, provided, however, that the failure
to give timely notice to the Celator as contemplated hereby shall not release Celator from any liability to indemnify any Persons indemnified under this Article 14, and the following shall apply: 

  

- 26 - 

	 	(a)	Celator shall have the right, by prompt notice to the Indemnified Person, to assume the defence of the Claim with counsel reasonably satisfactory to the Indemnified
Person, and at the cost of Celator; 

  

	 	(b)	if Celator does not so assume the defence of the Claim, the Indemnified Person may assume the defence with counsel of its choice at the sole expense of Celator;

  

	 	(c)	if Celator assumes the defence of the Claim, the Indemnified Person may participate therein through counsel of its choice, but the cost of such counsel shall be borne
solely by the Indemnified Person; 

  

	 	(d)	any party not assuming the defence of any such Claim shall render all reasonable assistance to the party assuming the defence, and all out-of-pocket costs of this
assistance shall be borne solely by Celator; and 

  

	 	(e)	no Claim shall be settled other than by the party defending the Claim, and then only with the consent of the other party, which shall not be unreasonably withheld,
provided, however, that the Indemnified Person shall have no obligation to consent to any settlement of any Claim which imposes on the Indemnified Person any liability or obligation which cannot be assumed and performed in full by Celator.

 Article 15 Termination 
 15.1 Termination for Convenience 
 Either party may terminate this Agreement, in whole or in
respect of a particular R&D Work Schedule, for convenience: 
  

	 	(a)	upon 120 days prior written notice delivered to the other party; or 

  

	 	(b)	in the event that either Dr. Bally or Dr. Mayer become unable or unwilling to continue the Work in respect of an R&D Work Schedule and a mutually
acceptable substitute is not available, upon 60 days prior written notice delivered to the other party. 

 15.2 Termination for
Breach 
  

	 	(a)	Either party may terminate this Agreement, in whole or in respect of a particular R&D Work Schedule, if the other party commits any material breach or material
default in any of the terms or conditions of this Agreement and: 

  

	 	(i)	such breach or default is reasonably curable within 45 days after receipt of notice thereof and such breach or default is not cured within 45 days after receipt of
written notice thereof; or 

  

	 	(ii)	such default is not reasonably curable within 45 days after receipt of written notice thereof and such breach or default is not cured within such further period as may
be reasonably necessary for the curing of such breach or default. 

 The party giving notice may, at its option and
in addition to any other remedies which it may have at law or in equity, terminate this Agreement or the particular R&D Work Schedule by sending notice of the termination in writing to the other party to such effect and such termination shall be
effective as of the date of the receipt of such notice. 
 15.3 Termination on Bankruptcy 

Either party may terminate this Agreement if at any time during the Term the other party files in any court or agency pursuant to any statute or
regulation of Canada or any province thereof, or of any individual state or foreign country: 
  

	 	(a)	a petition in bankruptcy or insolvency; 

  

	 	(b)	a petition for reorganization in connection with a bankruptcy or insolvency; 

  

- 27 - 

	 	(c)	a petition for an arrangement in connection with a bankruptcy or insolvency; 

 

	 	(d)	a petition for the appointment of a receiver or trustee of the party or of its assets; 

 

	 	(e)	if the other party proposes a written agreement of composition or extension of its debts; 

 

	 	(f)	if the other party is served with an involuntary petition against it, filed in any insolvency proceeding, and the petition is not dismissed within 60 days after the
filing thereof; 

  

	 	(g)	if the other party proposes or is a party to any dissolution or liquidation; or 

 

	 	(h)	if the other party makes an assignment for the benefit of creditors. 

 Termination by a party under this Section 15.3 will be considered termination for breach under Section 15.2 except that no notice and cure time for the breach shall be required, and the
consequences of termination and parties’ respective rights and remedies will be as set out in Section 15.2 
 15.4 Costs on
Termination 
 If this Agreement is terminated by either party prior to Acceptance of any Work by Celator, for any reason except a breach
hereof by BCCA, Celator shall pay BCCA for all Work performed by BCCA prior to the effective date of such termination, in such amount as may be agreed between the parties. For greater certainty, such costs shall include all non-cancellable
obligations of BCCA, including payments in lieu of reasonable notice for BCCA Personnel assigned to the Work who cannot be re-assigned to another project of BCCA. In the event that amounts have been paid in excess of the amount owing, BCCA shall
refund to Celator any amounts it has received from Celator in excess of those owing hereunder. 
 15.5 Transfer of Technology 

 

	 	(a)	On expiration or earlier termination of this Agreement, in whole, through any means and for any reason, BCCA shall provide Celator at Celator’s cost with
reasonable co-operation and assistance in the transfer of copies or drafts, to the extent they exist, Prior Intellectual Property and Celator-Sponsored Intellectual Property assigned or licensed to Celator under this Agreement, to the extent not
already transferred to Celator as required to enable Celator’s reasonably competent staff to use such Intellectual Property in the commercialisation of Royalty-Bearing Products. 

 

	 	(b)	On expiration or earlier termination of this Agreement, in whole or in respect of a particular R&D Work Schedule, through any means and for any reason, BCCA shall
at Celator’s cost provide Celator with reasonable co-operation and assistance in the transfer of copies or drafts, to the extent they exist, of any Deliverables and Work in progress relating to the subject matter of the termination, in a form
and with content reasonably satisfactory to Celator, as required to enable Celator’s reasonably competent staff to assume the conduct of such Work. 

  

	 	(c)	Following transfer of the Intellectual Property and other information under Subsections 15.5(a) and 15.5(b), at such time and place as may be mutually agreed by the
parties, BCCA shall conduct a technical review meeting with Celator to address issues raised by Celator regarding the Intellectual Property, Deliverables and Work so transferred. 

15.6 Return of Confidential Information 

On expiration or earlier termination of this Agreement, each party shall: 
  

	 	(a)	promptly cease all use of the Confidential Information of the other party and ensure that its employees cease all use thereof; and 

 

	 	(b)	upon written request of the other party, 

  

	 	(i)	return to the other party all copies of the Confidential Information of the other party in its control or possession, subject to the retention of one (1) complete
copy for archival purposes and to satisfy any applicable legal requirements; and 

  

- 28 - 

	 	(ii)	destroy any and all copies or other reproductions or extracts of the Confidential Information of the other party and all other documents, computer files, memoranda,
notes or other writings prepared based on such Confidential Information; 

 except to the extent that any such Confidential
information is required by the parties to perform any surviving obligations under this Agreement. 
 15.7 Payment on Termination

 Upon termination of this Agreement, Celator shall pay to BCCA all sums that are due pursuant to Article 5. 

15.8 Survival 
 Expiration or earlier
termination of this Agreement through any means and for any reason shall not relieve the parties of any obligation accruing prior thereto, including, but not limited to, the obligations to continue the Work as set out in Article 3 until the
effective date of such termination and the obligation to pay money under Article 5. Notwithstanding the expiration or earlier termination of this Agreement, the following provisions shall survive the expiration or earlier termination of this
Agreement and such termination shall be without prejudice to the rights and remedies of either party with respect to the antecedent breach of any of the provisions of this Agreement: 

 

	 	(a)	Article 1 (Interpretation); 

  

	 	(b)	Section 3.12 (Research Samples); 

  

	 	(c)	Article 6 (Royalty Payments); 

  

	 	(d)	Article 7 (Taxes) except Subsection 7.1(c); 

  

	 	(e)	Article 8 (Intellectual Property); 

  

	 	(f)	Article 9 (Patents; Prosecution and Litigation); 

  

	 	(g)	Article 10 (Confidentiality; Publicity; Publications); 

  

	 	(h)	Section 11.1 (Maintenance of Research Records); 

  

	 	(i)	Section 12.3 (Regulatory Approvals) and Section 12.4 (Recalls); 

  

	 	(j)	Article 13 (Representations, Warranties and Covenants); 

  

	 	(k)	Article 14 (Indemnification); 

  

	 	(l)	Article 15 (Termination); and 

  

	 	(m)	Article 16 (General Provisions). 

Article 16 General Provisions 
 16.1 Amendments 
 No party shall claim any amendment, modification, or release from any
provision hereof by mutual agreement, acknowledgement or acceptance or purchase order forms or otherwise, unless in writing signed by an authorised representative of each party. 
 16.2 Assignment 
 This Agreement shall not be assigned by any party, in whole or in part,
without the prior written consent of the other party, which consent shall not be unreasonably withheld, provided, however, that Celator may assign its rights and obligations pursuant to this Agreement to: 

 

	 	(a)	any of its Affiliates; 

  

	 	(b)	any Third Party with which it may merge or consolidate; or 

  

	 	(c)	any Third Party to which it may transfer substantially all of its assets 

  

- 29 - 

 (any and all of the aforementioned being an “Assignee”) 

provided that, at or prior to the time of such assignment such Assignee shall, by an agreement in writing in form and substance satisfactory to BCCA,
agree to be bound by the terms of this Agreement as if such Assignee had entered into this Agreement in the place and stead of Celator, to assume, observe, perform and be bound by, jointly and severally with Celator, all the obligations and
liabilities of Celator under this Agreement, and provided that Celator and the Assignee shall at all times be jointly and severally liable for any loss, damage or expense arising out of the breach of this Agreement. 

16.3 Counterparts; Facsimile 
 This
Agreement may be executed in any number of counterparts (either originally or by facsimile), each of which shall be deemed to be an original and all of which taken together shall be deemed to constitute one and the same instrument. 

16.4 Dispute Resolution 
 In the event of
any dispute arising between the parties concerning this Agreement, its enforceability, or its interpretation, the following procedure shall apply: 
  

	 	(a)	Prior to engaging in any formal dispute resolution with respect to any dispute, controversy or claim arising out of or in relation to this Agreement or the breach,
termination or invalidity of this Agreement (each, a “Dispute”), the Chief Executive Officers of the parties shall attempt to resolve the Dispute for a period not less than 30 days. 

 

	 	(b)	Except any Dispute with respect to Intellectual Property matters, any Dispute that cannot be settled amicably by agreement of the parties pursuant to Subsection
(a) shall be finally settled by a single arbitrator appointed pursuant to the provisions of the Commercial Arbitration Act of British Columbia, or any successor legislation then in force, provided that the appointed arbitrator shall have
appropriate experience in the biopharmaceutical industry. 

  

	 	(c)	The place of arbitration shall be Vancouver, British Columbia, Canada and the language to be used in the arbitration proceedings shall be English.

  

	 	(d)	The award rendered in any arbitration shall be final and binding upon both parties. The judgement rendered by the arbitrator(s) shall include costs of arbitration,
reasonable legal fees and reasonable costs for any expert and other witnesses. 

  

	 	(e)	Nothing in this Agreement shall be deemed as preventing either party from seeking injunctive relief (or any other provisional remedy) from any court having jurisdiction
over the parties and the subject matter of the Dispute as necessary to protect either party’s name, Confidential Information or Intellectual Property. 

 

	 	(f)	Notwithstanding the provisions of Subsections 16.4(b) through 16.4(e) inclusive, either party shall be free to submit any Dispute relating to Intellectual Property
matters to any court having jurisdiction over the parties and the subject matter of the Dispute and to seek such relief and remedies as are available in that court. 

 16.5 Enurement 
 This Agreement shall be binding upon and shall inure to the benefit of the
parties hereto and their successors and permitted assigns. 
 16.6 Further Assurances 

The parties shall execute and deliver such further instruments and do such further acts as may be required to implement the intent of this Agreement.

  

- 30 - 

 16.7 Independent Legal Advice 
 The parties hereto each acknowledge that they have not relied upon the other party to this Agreement for advice, whether legal or otherwise, in connection with this Agreement and the parties hereto
further acknowledge that they have each been advised to seek independent legal advice with respect to same. 
 16.8 Injunction

 Each party agrees that the other parties may be irreparably damaged if any provision of this Agreement is not performed in accordance with
its terms. Accordingly, each party will be entitled to apply for an injunction or injunctions to prevent breaches of any of the provisions of this Agreement by the other parties, without showing or proving any actual or threatened damage,
notwithstanding any rule of law or equity to the contrary, and may specifically enforce such provisions by an action instituted in a court having jurisdiction. These specific remedies are in addition to any other remedy to which the parties may be
entitled at law or in equity. 
 16.9 Insurance 
  

	 	(a)	Celator shall, without limiting its obligations and liabilities herein, obtain and maintain at its own expense comprehensive or commercial general liability insurance
including, but not necessarily limited to, blanket contractual liability, products and completed operations liability. Such coverage shall be written on an occurrence basis in an amount not less than $2,000,000 for any one occurrence or in the
aggregate with respect to products and completed operations and shall be with insurers licensed in the Province of British Columbia. Such insurance shall include the BCCA, its directors, officers, employees (and volunteers if applicable), students
and agents as additional insureds and shall provide 30 days written notice of cancellation or material change to BCCA. Celator shall provide evidence of such coverage to BCCA prior to commencement of any Work to be performed under this Agreement and
such evidence shall be in a form satisfactory to BCCA. BCCA may request from time to time further evidence of coverage and/or certified copies of policies and Celator agrees to provide same. 

 

	 	(b)	In the event that Celator conducts clinical trials on products containing Celator-Sponsored Intellectual Property, Celator shall procure insurance coverage written on
an occurrence basis in an amount not less than $10,000,000. If Celator fails to obtain such insurance coverage on an timely basis, BCCA shall have the option, but not the obligation, to obtain such insurance coverage and Celator shall promptly
reimburse BCCA the cost thereof. 

  

	 	(c)	BCCA shall obtain and maintain comprehensive or commercial general liability insurance, including but not necessarily limited to, blanket contractual liability written
in an amount not less than $2,000,000 per occurrence. BCCA shall also obtain and maintain “all risks” property insurance covering machinery and equipment owned by BCCA, including loaned equipment provided by Celator pursuant to
Section 3.11. 

  

	 	(d)	Notwithstanding anything contained in this Section 16.9, Celator acknowledges that BCCA is insured for “all risk” property insurance and
comprehensive/commercial general liability coverage as a member entity under the provisions of the Health Care Protection Program (HCPP) and Celator confirms that BCCA is deemed to be in compliance with the provisions of Section 16.9(b)
provided that BCCA remains insured under HCPP throughout the term of this Agreement. 

 16.10 Interest 

Celator shall pay interest on all amounts not paid when due under this Agreement calculated on the basis of the prime rate offered by the Bank of Montreal
offered to its best customers plus 4% per annum on the outstanding balance, calculated and compounded monthly, or pro-rated portion thereof, from the date such amounts become due and payable. 

16.11 Notices 
 All notices or other
documents that either of the parties hereto are required or may desire to deliver to the other party hereto may be delivered only by: personal delivery; by registered or certified mail (return receipt requested and postage prepaid); express courier
service (receipt verified); or facsimile transmission (with confirmation notice sent as described above) at the address for such party set forth below or at such other address as that party may hereinafter designate in writing to the other. Any
notice shall be deemed to have been received: 

  

- 31 - 

	 	(a)	on the date of delivery, if delivered personally or by express courier; 

  

	 	(b)	on the fifth Business Day following the date of mailing if sent by registered or certified mail; or 

 

	 	(c)	on the next Business Day following the date of transmission if sent by facsimile transmission. 

 

			
	 If to Celator:
  

Celator Technologies Incorporated
 604 West
Broadway
 Vancouver, British Columbia

V5Z 1G1 CANADA
  

Attention:       Chief Executive Officer

 

Telephone:     (604) 708-5858

Facsimile:      (604) 708-5883
	  	 With a copy to:
  

Farris, Vaughan, Wills & Murphy
 P.O. Box
10026, Pacific Centre South
 Toronto Dominion Bank Tower
 700 West Georgia Street, 26th Floor
 Vancouver, British Columbia

V7Y 1B3 CANADA
  

Attention:       R. Hector MacKay-Dunn

 

Telephone:     (604) 684-9151

Facsimile:      (604) 661-9349

		
	 If to BCCA:
  
 British Columbia Cancer Agency
 600 West 10th Avenue

Vancouver, British Columbia
 V5Z 4E6
CANADA
  
 General Matters:

 

Attention:       Chief Executive Office

 

Telephone:     (604) 877-6000

Facsimile:      (604) 877-6063

 
 Scientific Matters:

 

Attention:       Dr. Lawrence Mayer

                   
      Department of Advanced Therapeutics
  
 Telephone:     (604) 877-6098 ext. 3153
 Facsimile:      (604) 877-6063
  
 Financial Matters:
  
 Attention:       Finance Department
  

Telephone:     (604) 877-6042

Facsimile:      (604) 877-6063
	  	 With a copy to:
  

Alexander Holburn Beaudin & Lang
 2700-700
West Georgia Street
 Vancouver, BC
 V7Y
1B8 CANADA
  

Attention:       F. Stuart Lang

 

Telephone:     (604) 643-2122

Facsimile:      (604) 669-7642

 16.12 No Waiver 
 No condoning, excusing or overlooking by any party of any default or breach by the another party in respect of any terms of this Agreement shall operate as a waiver of such party’s rights under this
Agreement in respect of any continuing or subsequent default or breach, and no waiver shall be inferred from or implied by anything done or omitted by such party, save only an express waiver in writing. 

16.13 Relationship of Parties 
 It is not
the intent of the parties hereto to form any partnership or joint venture. Each party shall, in relation to its obligations hereunder, be deemed to be and shall be an independent contractor, and nothing in this Agreement shall be construed to give
such party the power or authority to act as agent for the other parties for any purpose, or to bind or commit the other parties in any way whatsoever. 

  

- 32 - 

 16.14 Rights and Remedies 
 The rights and remedies available under this Agreement shall be cumulative and not alternative and shall be in addition to and not a limitation of any rights and remedies otherwise available to the
parties at law or in equity. No exercise of a specific right or remedy by any party precludes it from or prejudices it in exercising another right or pursuing another remedy or maintaining an action to which it may otherwise be entitled either at
law or in equity. 
 16.15 Severability 
 In the event that any article, section, clause, paragraph or subparagraph of this Agreement shall be held to be indefinite, invalid, illegal or otherwise voidable or unenforceable for any reason
whatsoever, the unenforceability or invalidity shall not affect the enforceability or the validity of the remaining portions of this Agreement, and such unenforceable or invalid article, section, clause, paragraph or subparagraph shall be severable
from the remainder of this Agreement. 
 IN WITNESS WHEREOF the parties hereto have hereunto executed this Agreement effective as of the
beginning of the Initial Term, regardless of the date of execution. 
  

					
	 CELATOR TECHNOLOGIES INCORPORATED
 by its authorised signatory:
	 		 	 BRITISH COLUMBIA CANCER AGENCY
 by its authorised signatory:

			
	  /s/ Lawrence D. Mayer	 		 	  /s/ Simon Sutcliffe
	 Lawrence D. Mayer, PhD.

Founder, Director and C.E.O.
	 		 	Dr. Simon Sutcliffe, M.D.
			
	Date:      May 10,
2001                                         
                       	 		 	Date:      November 5,
2001                                         
               
			
	  /s/ Marcel Bally	 		 	 
	 Marcel Bally, PhD.
 Founder,
Director and C.S.O.
	 		 	
			
	Date:      May 20,
2001                                         
                       	 		 	

 EXHIBIT A 
 RESEARCH AND DEVELOPMENT (R&D) WORK SCHEDULE 
 This R&D Work Schedule forms a part
of the Collaborative Research Agreement between Celator Technologies Incorporated (“Celator”) and British Columbia Cancer Agency (“BCCA”) dated
                                     (the “Agreement”).

  

			
	Principal Investigator:            	  	 
	Department:	  	 
	Telephone:	  	 
	Facsimile:	  	 
	e-mail:	  	 

  

	1.	DESCRIPTION OF THE WORK 

  

	1.1	Services. The Services to be performed under the Agreement shall comprise the following: 

 

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
  

	1.2	Deliverables. The Deliverables to be delivered by BCCA to Celator shall comprise the following: 

 

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

  

- A-2 - 

	1.3	Research Samples. Celator shall provide the following Research Samples to BCCA, the receipt of which shall be acknowledged in writing, in connection with the
performance of the Work under the Agreement: 

  

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
                                  
                                         
                                         
                                         
                                         
                                         
           

                      
                                         
                                         
                                         
                                         
                                         
                      
  

	2.	PAYMENT AND TIMETABLE 

  

	2.1	Payment Amount. The Payment Amount payable by Celator to BCCA on Acceptance of the Work set out in this R&D Work Schedule shall be a total of
$                     in accordance with the attached budget submitted by BCCA to Celator. 

 

	2.2	Delivery Schedule. The Work shall be performed and completed by BCCA: 

 

	 ̈	by                           
      [date]; or 

  

	 ̈	in accordance with the following milestone schedule: 

  

							
	MILESTONE	 	DELIVERY DATE	 	AMOUNT DUE	 	INDICATION
OF
ACCEPTANCE
	[description of that portion of the Work comprising each milestone and any
Deliverables to be delivered at such milestone]	 	[date by which such milestone must be completed by BCCA]	 	[amount due from Celator upon Acceptance of the Work for such milestone]	 	[signature of Celator’s investigator indicating acceptance of work for
such milestone]
	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  

- A-3 - 

 This R&D Work Schedule is agreed to between the parties as of the dates set forth below. 

 

			
	 CELATOR TECHNOLOGIES INCORPORATED
 by its authorised signatory:
  

_______________________________________
 Lawrence
D. Mayer, PhD.
 Founder, Director and C.E.O.
  

Date:     ________________________________
  

_______________________________________
 Marcel
Bally, PhD.
 Founder, Director and C.S.O.
  

Date:     ________________________________
	  	 BRITISH COLUMBIA CANCER AGENCY
 by its authorised signatory:
  

_______________________________________
 Dr.
Simon Sutcliffe, M.D.
  
 Date:    
________________________________

  
  

Notice of Completion received on: _____________________________ (Date) 
 Accepted by Celator on: _____________________________ (Date) 

 EXHIBIT B 
 PRIOR INTELLECTUAL PROPERTY 
 Inventions 

 

					
	 Invention Title
	  	 Named Inventors
	  	Date of Invention 
Disclosure
			
	Lipid Carrier Compositions with protected surface reactive functions	  	Marcel Bally, Lawrence Mayer, Wai Ming Li	  	November 23, 1999
			
	Low cholesterol containing liposomes for use in drug delivery	  	Marcel Bally, Lawrence Mayer, Nancy Dos Santos, Ludger Ichenstein	  	August 31, 2000
			
	Cryostable liposome compositions	  	Lawrence Mayer, Marcel Bally, Ludger Ichenstein, Nancy Dos Santos	  	December 11, 2000
			
	Method for encapsulation of anticancer drugs in cholesterol free liposomes	  	Lawrence Mayer, Marcel Bally, Nancy Dos Santos	  	August 31, 2000
			
	A hybrid CTL-epitope delivery system comprising a liposomal formulation of the antenopedia homeodoman	  	Ghania Chikh, Marcel Bally, Marie-Paule Redelmeier-Schutze	  	February 27, 2001
			
	DNA-triggered drug release from liposomes for tumor specific drug delivery	  	Lawrence Mayer, Marcel Bally	  	December 11, 2000

 Patents and Patent Applications 
  

															
	 Patent Title
	  	Priority
Date	  	Patent
No.	  	Serial
No.	  	Issue
Date	  	Status	  	Named
Inventors	  	Ownership
								
	Lipid Carrier Compositions with protected surface reactive functions	  	Dec.
10/99	  	N/A	  	9458957	  	N/A	  	PCT phase	  	Lawrence Mayer,
Marcel Bally,
Gigi Chiu,
Wai Ming Li	  	
								
	Low Cholesterol containing liposomes for controlled drug delivery	  	May
10/00	  	N/A	  	60203399	  	N/A	  	US
provisional
application	  	Marcel Bally,
Lawrence Mayer,
Nancy Dos Santos	  	

 EXHIBIT C 
 MILESTONES FOR ASSIGNMENT OF 
 CELATOR-SPONSORED INTELLECTUAL PROPERTY

  

	A	Corporate Governance 

 The
corporate governance of Celator shall be established in accordance with the attached guidelines released by the Toronto Stock Exchange (“TSE”) in the 1994 Dey report “Where Were the Directors” to the extent adopted by the
majority of companies that comprise the TSE biotech subindex. 
 (See for reference:
http://tse.com/cgibin/uni_framset.cgi?content=news/news_rel/news_187.html) 
  

	B	Financial Stability 

 Celator shall
achieve all of the following criteria of financial stability: 
  

	 	1.	Solvency Test 

  

	 	•	 	 Sufficient operating capital for 12 months of operating at the forecast burn rate. 

 

	 	2.	Capitalization (fundraising) 

  

	 	•	 	 Cumulative $10 million Canadian raised through private and/or public offering of Celator securities. 

 

	C	Commercial Development of Intellectual Property 

  

	 	1.	Clinical Trials 

  

	 	•	 	 One of Celator’s product candidates containing Celator-Sponsored Intellectual Property shall receive authorization to commence a Phase I clinical
trial. 

  

- C-2 - 

 CURRENT TSE GUIDELINES 
 The TSE adopted the 1994 Corporate Governance Committee’s 14 recommendations as best practice guidelines, rather than hard and fast rules. Every year, listed companies must disclose and explain any differences between their corporate governance practices and
the guidelines. 
 Guidelines in Section 474 of the TSE Company Manual 
 1. The board of directors of every corporation should explicitly assume responsibility for the stewardship of the corporation and, as part of the overall stewardship responsibility, should assume
responsibility for the following matters: 
 a) adoption of a strategic planning process; 

b) the identification of the principal risks of the corporation’s business and ensuring the implementation of appropriate systems to manage these
risks; 
 c) succession planning, including appointing, training and monitoring senior management; 

d) a communications policy for the corporation; and 
 e) the integrity of the corporation’s internal control and management information systems. 

2. The board of directors of every corporation should be constituted with a majority of individuals who qualify as unrelated directors. An unrelated
director is a director who is independent of management and is free from any interest and any business or other relationship which could, or could reasonably be perceived to, materially interfere with the director’s ability to act with a view
to the best interests of the corporation, other than interests and relationships arising from shareholding. 
 A related director is a director
who is not an unrelated director. If the corporation has a significant shareholder, in addition to a majority of unrelated directors, the board should include a number of directors who do not have interests in or relationships with either the
corporation or the significant shareholder and which fairly reflects the investment in the corporation by shareholders other than the significant shareholder. A significant shareholder is a shareholder with the ability to exercise a majority of the
votes for the election of the board of directors. 
 3. The application of the definition of “unrelated director” to the circumstances
of each individual director should be the responsibility of the board which will be required to disclose on an annual basis whether the board has a majority of unrelated directors or, in the case of a corporation with a significant shareholder,
whether the board is constituted with the appropriate number of directors which are not related to either the corporation or the significant shareholder. Management directors are related directors. The board will also be required to disclose on an
annual basis the analysis of the application of the principles supporting this conclusion. 
 4. The board of directors of every corporation
should appoint a committee of directors composed exclusively of outside, i.e., non-management, directors, a majority of whom are unrelated directors, with the responsibility for proposing to the full board new nominees to the board and for assessing
directors on an ongoing basis. 
 5. Every board of directors should implement a process to be carried out by the nominating committee or other
appropriate committee for assessing the effectiveness of the board as a whole, the committees of the board and the contribution of individual directors. 
 6. Every corporation, as an integral element of the process for appointing new directors, should provide an orientation and education program for new recruits to the board. 

7. Every board of directors should examine its size and, with a view to determining the impact of the number upon effectiveness, undertake where
appropriate, a program to reduce the number of directors to a number which facilitates more effective decision-making. 

  

- C-3 - 

 8. The board of directors should review the adequacy and form of the compensation of directors and ensure
the compensation realistically reflects the responsibilities and risk involved in being an effective director. 
 9. Committees of the board of
directors should generally be composed of outside directors, a majority of whom are unrelated directors, although some board committees, such as the executive committee, may include one or more inside directors. 

10. Every board of directors should expressly assume responsibility for, or assign to a committee of directors the general responsibility for, developing
the corporation’s approach to governance issues. This committee would, amongst other things, be responsible for the corporation’s response to these governance guidelines. 
 11. The board of directors, together with the CEO, should develop position descriptions for the board and for the CEO, involving the definition of the limits to management’s responsibilities. In
addition, the board should approve or develop the corporate objectives which the CEO is responsible for meeting. 
 12. Every board of directors
should have in place appropriate structures and procedures to ensure that the board can function independently of management. An appropriate structure would be to (i) appoint a chair of the board who is not a member of management with
responsibility to ensure the board discharges its responsibilities or (ii) adopt alternate means such as assigning this responsibility to a committee of the board or to a director, sometimes referred to as the “lead director”.
Appropriate procedures may involve the board meeting on a regular basis without management present or may involve expressly assigning the responsibility for administering the board’s relationship to management to a committee of the board.

 13. The audit committee of every board of directors should be composed only of outside directors. The roles and responsibilities of the audit
committee should be specifically defined so as to provide appropriate guidance to audit committee members as to their duties. The audit committee should have direct communication channels with the internal and external auditors to discuss and review
specific issues as appropriate. The audit committee duties should include oversight responsibility for management reporting on internal control. While it is management’s responsibility to design and implement an effective system of internal
control, it is the responsibility of the audit committee to ensure that management has done so. 
 14. The board of directors should implement a
system which enables an individual director to engage an outside advisor at the expense of the corporation in appropriate circumstances. The engagement of the outside advisor should be subject to the approval of an appropriate committee of the
board.

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