Document:

Amendment No. 2 to Development and License Agreement

 Exhibit 4.41 
 Portions of this exhibit marked [*] are omitted and requested to be treated confidentially. 
 AMENDMENT NO. 2 
 to 

DEVELOPMENT AND LICENSE AGREEMENT 
 between 
 GLAXO GROUP LIMITED 
 and 
 ADHEREX TECHNOLOGIES INC. 
 THIS AMENDMENT NO. 2 (this “Second Amendment”) effective on this 23rd day of June, 2006 (the “Second Amendment Effective Date”), is entered into by and between Glaxo Group Limited, a company organized under the
laws of England and Wales, having its registered office at GlaxoWellcome House, Berkeley Avenue, Greenford, Middlesex, UB6 0NN United Kingdom (“GGL”) and Adherex Technologies Inc., a company organized under the laws of Canada and
having an office located at 4620 Creekstone Drive, Suite 200, Durham, North Carolina, 27703 USA (“Adherex”): 
 RECITALS

 A. The Parties entered into the Development and License Agreement, effective as of July 14, 2005 (the “Agreement”). 
 B. The Parties entered into Amendment No. 1 to the Agreement, effective December 20, 2005, relating to the ExherinTM Option. 
 C. The Parties now desire to further amend the Agreement in certain respects on the terms and conditions set forth below. 
 NOW THEREFORE, in consideration of the foregoing premises and the mutual covenants set forth below, the Parties, intending to be legally bound, hereby amend the
Agreement and otherwise agree as follows: 
 1. Defined Terms. All terms used in this Second Amendment but not defined herein shall have the same
meaning as set forth in the Agreement. 
 2. Addition of Section 1.98. The following definition is hereby added to the end of Article 1 of the
Agreement to read in its entirety as follows: 
 “1.98 “Option E” means the GGL Option described in
Section 2.4.8.” 
 3. Addition of Section 1.99. The following definition is hereby added to the end of Article 1 of the Agreement to
read in its entirety as follows: 
 “1.99 “Eniluracil [*] Clinical Trials” means those [*] Clinical Trials referred to
hereunder as [*] and [*] for Eniluracil conducted by Adherex, as further described in Appendix 9, attached hereto and incorporated herein. For greater certainty, it does not include the [*] Clinical Trial referred to hereunder as [*], as further
described in Appendix 9.” 
  

 1 

 4. Addition of Section 1.100. The following definition is hereby added to the end of Article 1 of the
Agreement to read in its entirety as follows: 
 “1.100 “[*] Studies” means those [*] studies on Eniluracil conducted by
Adherex as further described in Appendix 10, attached hereto and incorporated herein.” 
 5. Addition of Section 1.101. The following
definition is hereby added to the end of Article 1 of the Agreement to read in its entirety as follows: 
 “1.101 “[*]Trial”
means the clinical trial to be conducted by Adherex as further described in Appendix 11, the current outline of which is attached hereto and incorporated herein.” 
 6. Amendment of Section 1.36. Section 1.36 is hereby amended and restated in its entirety to read follows: 
 “1.36. “GGL Option(s)” means any of Option B, Option C, or Option E which permit GGL to assume Development and Commercialization of Eniluracil and Products from Adherex as set forth in
Section 2.4.” 
 7. Deletion of Section 1.64. Section 1.64 (“Option A”) is hereby deleted in its entirety from the
Agreement. 
 8. Deletion of Section 1.82. Section 1.82 (“[*] Trial”) is hereby deleted in its entirety from the Agreement.

 9. Amendment of Section 1.95. Section 1.95 of the Agreement is hereby amended and restated in its entirety to read follows: 

“1.95 “Trials” means Phase I, Phase II, Phase III, and [*] Trial, as applicable.” 
 10. Amendment of Section 2.1.1. Section 2.1.1 of the Agreement is hereby amended and restated in its entirety to read follows: 
 “2.1.1. [*] Trial. Adherex shall conduct the [*] Trial in accordance with the specifics set forth in Appendix 11.” 
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 2 

 11. Amendment of Section 2.2.1. Section 2.2.1 of the Agreement is hereby amended and restated in its
entirety to read as follows: 
 “2.2.1 Diligence Milestones 
  

			
	 Milestone
	 	 Milestone Date

	[*]	 	[*]
		
	[*]	 	[*]
		
	[*]	 	[*]
		
	[*]	 	[*]

 With respect to the second and fourth milestones described above, the accomplishment of such
milestone in [*] shall be deemed to be the achievement of such milestone, and Licensee shall not be required to satisfy such milestone for [*] under this Section 2.2.1. If and when Adherex is the Licensee, the dates specified above as applied
to Adherex assume the materials transferred to Adherex by GGL under Section 2.5 below conform to the specifications of study drug in the GGL US IND (as defined in Section 7.2) and may reasonably be used by Adherex in Development for the
accomplishment of such milestones. If such materials do not conform to such specifications, or cannot otherwise reasonably be used by Adherex for the accomplishment of such Development milestones, the dates specified above as they apply to Adherex
shall be extended by a reasonable period of time as necessary to permit Adherex to obtain alternative supplies of such materials in quantities and of qualities reasonably sufficient to accomplish those Development milestones. Similarly, if, at the
time GGL exercises a GGL Option, GGL does not have sufficient quantities of materials to resume Development of a Product, the dates above as they apply to GGL shall be extended by a reasonable period of time as necessary to permit GGL to obtain
alternative supplies of such materials in quantities and of qualities reasonably sufficient to accomplish those Development milestones.” 
 12.
Amendment to Section 2.4.1. Section 2.4.1 of the Agreement is hereby deleted in its entirety thereby making Option A null and void. 
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 3 

 13. Amendment to Section 2.4.2. Section 2.4.2 of the Agreement is hereby amended and restated in its
entirety to read as follows: 
 “2.4.2 Option B. Following completion by Adherex of [*], GGL shall have the right, for a limited
period of time as further described below, to terminate Adherex’s license to the Product set forth in Section 4.1 in its entirety and be granted an exclusive license by Adherex under Section 4.2 to research, Develop, make, have made,
use, and Commercialize Eniluracil and Products for all indications in all dosage forms and combinations, formulations, presentations, line extensions and package configurations in all countries of the Territory in which there is a Valid Claim of the
GGL Patents, Adherex Patents, or any Joint Invention Patents. Adherex shall notify GGL in writing within ten (10) business days of completion of [*] (such notice, the “Option B Notice”), and shall promptly provide GGL with information
regarding [*] reasonably necessary for GGL to decide whether or not to exercise its Option including, at a minimum, [*], and any further information in Adherex’s possession reasonably requested by GGL. Upon GGL’s exercise of Option B
within the time period described below, Adherex shall cease all development and commercialization of Eniluracil and the Product in all countries of the Territory in which there is a Valid Claim of the GGL Patents, Adherex Patents, or any Joint
Invention Patents. GGL shall provide Adherex with written notice of its decision whether to exercise Option B within [*] of Adherex’s notice to GGL of completion of [*] and provision to GGL by Adherex of [*] in accordance with this
Section 2.4.2. If GGL does not exercise Option B within such [*] period, Option B shall expire, and GGL shall have no further rights under this Section 2.4.2.” 
 14. Amendment to Section 2.4.3. Section 2.4.3 is hereby amended and restated in its entirety to read as follows: 
 “2.4.3 Option C. Upon Adherex’s [*] and [*], if GGL has not exercised Option B or Option E, GGL shall have the right, for a limited period of time as further described below, to terminate
Adherex’s license to the Product set forth in Section 4.1 in its entirety and be granted an exclusive license by Adherex under Section 4.2 to research, Develop, make, have made, use, and Commercialize Eniluracil and Products for all
indications in all dosage forms and combinations, formulations, presentations, line extensions and package configurations in all countries of the Territory in which there is a Valid Claim of the GGL Patents, Adherex Patents, or any Joint Invention
Patents. Adherex shall notify GGL within ten (10)
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 4 

 business days of the [*] (such notice, the “Option C Notice”). Adherex shall also promptly
provide GGL with [*] if and as requested by GGL. Upon GGL’s exercise of Option C within the time period described below and subject to Section 2.4.6, Adherex shall cease all Development and Commercialization of Eniluracil and the Product
in all countries of the Territory in which there is a Valid Claim of the GGL Patents, Adherex Patents, or any Joint Invention Patents. GGL shall provide Adherex with written notice of its decision whether to exercise Option C within [*] of receipt
of the Option C Notice from Adherex. If GGL does not exercise Option C within such [*] period, Option C shall expire, and GGL shall have no further rights under this Section 2.4.3.” 
 15. Amendment to Section 2.4.7. Section 2.4.7 is hereby amended and restated in its entirety to read as follows: 
 “2.4.7 Reimbursement of Costs Incurred With Respect to GGL Option Period. If GGL exercises Option B, Option C or Option E, respectively, GGL
shall reimburse Adherex for all amounts approved by GGL in writing and incurred or expended by Adherex during the [*] period following Adherex’s provision of the Option B Notice, Option C Notice, or the Option E Notice, respectively, with
respect to the Development or Commercialization of Eniluracil and any Products during the applicable time period, including but not limited to any amounts incurred under the contracts referenced in Section 4.3.3 that are assumed by GGL,
following provision to GGL of the Option B Notice, Option C Notice or Option E Notice, respectively.” 
 16. Addition of Section 2.4.8.
Section 2.4.8 is hereby added to the Agreement to read in its entirety as follows: 
 “2.4.8 Option E. Following
completion by Adherex of the [*] Trial, if GGL has not exercised Option B or Option C, GGL shall have the right, for a limited period of time as further described below, to terminate Adherex’s license to the Product set forth in
Section 4.1 in its entirety and be granted an exclusive license by Adherex under Section 4.2 to research, Develop, make, have made, use, and Commercialize Eniluracil and Products for all indications in all dosage forms and combinations,
formulations, presentations, line extensions and package configurations in all countries of the Territory in which there is a Valid Claim of the GGL Patents, Adherex Patents, or any Joint Invention Patents. Adherex shall notify GGL in writing within
ten (10) business days of completion of the 
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 5 

 [*] Trial for Eniluracil, [*] (such notice, the “Option E Notice”), and shall promptly provide
GGL with information regarding such trial reasonably necessary for GGL to decide whether or not to exercise its Option including, at a minimum, [*], and any further information in Adherex’s possession reasonably requested by GGL. Upon
GGL’s exercise of Option E within the time period described below, Adherex shall cease all development and commercialization of Eniluracil and the Product in all countries of the Territory in which there is a Valid Claim of the GGL Patents,
Adherex Patents, or any Joint Invention Patents. GGL shall provide Adherex with written notice of its decision whether to exercise Option E within [*] of Adherex’s notice to GGL of completion of the [*] Trial for Eniluracil and provision to GGL
by Adherex of [*] regarding such Trial in accordance with this Section 2.4.8. If GGL does not exercise Option E within such [*] period, Option E shall expire, and GGL shall have no further rights under this Section 2.4.8.” 

17. Amendment to Section 3.1.1. Section 3.1.1 is hereby amended and restated in its entirety to read as follows: 
 “3.1.1 Formation of Transition Team. If GGL exercises Option C or Option E, the Joint Steering Committee shall form a Transition Team (the
“Transition Team”) comprised of equal representatives of Adherex and GGL. The Transition Team shall oversee the orderly and efficient transition of Development and Commercialization on Eniluracil and Products from Adherex to GGL and shall
ensure the transfer of materials and information and provision of assistance from Adherex to GGL as set forth in Section 7.8. The Transition Team shall determine which ongoing Trials of Adherex shall be transferred to GGL and shall work to
ensure uninterrupted provision of Eniluracil to patients receiving Eniluracil under any Trials conducted by Adherex at the time GGL exercises Option C or Option E.” 
 18. Amendment to Section 4.1.1. Section 4.1.1 of the Agreement is hereby amended and restated in its entirety to read as follows: 
 “4.1.1 Termination of License to Adherex. Notwithstanding Section 4.1, the license granted by GGL to Adherex pursuant to Section 4.1
shall terminate immediately upon the earliest to occur of: 
 (a) the date GGL exercises Option B, Option C, or Option E, in accordance with
the provisions of Section 2.4.2, 2.4.3 or 2.4.8, as applicable; 
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 6 

 (b) the date Adherex notifies GGL that Adherex does not intend to Develop or Commercialize, or continue
to Develop or Commercialize, any Products, such notice to be made promptly after Adherex makes such determination; or 
 (c) in the event
Adherex has not exercised Diligent Efforts to Develop or Commercialize a Product, the date GGL notifies Adherex that Adherex has not exercised Diligent Efforts to Develop or Commercialize a Product, subject to the applicable cure period provided in
Section 15.2 and the dispute resolution provisions in Section 16.6.” 
 19. Amendment to Section 7.8.1. Section 7.8.1 is
hereby amended and restated in its entirety to read follows: 
 “7.8.1 By Adherex. Within forty-five (45) days after
GGL’s written notification to Adherex that it has chosen to exercise either Option B, Option C or Option E, Adherex shall immediately transfer to GGL, at Adherex’s cost and expense, all available amounts of Eniluracil drug substance and
all other Adherex Know How reasonably available to Adherex that will assist GGL in the Development and Commercialization of Eniluracil and Products; provided, however, that Adherex shall be able to retain a reasonable amount of Eniluracil and/or
Product for its internal research purposes; provided, further, that any research to be conducted by Adherex after exercise by GGL of an Option shall be done only with the prior written consent of GGL, such consent not to be unreasonably withheld. In
addition, on GGL’s exercise of an Option, Adherex will provide, at a minimum, the materials and assistance set forth in Appendix 6, attached hereto and incorporated herein. On GGL’s exercise of an Option, at GGL’s request and
Adherex’s expense, Adherex shall also transfer to GGL all INDs and other regulatory filings including any [*] made by Adherex or its Affiliates relating to Eniluracil or a Product free and clear of any and all liens, claims, and encumbrances.
If, pursuant to Section 2.4.6, GGL requests that Adherex continue to prosecute and defend [*] after GGL’s exercise of Option C, GGL and Adherex shall agree in good faith on a reasonably appropriate timeframe for the transfer of [*]. After
GGL’s exercise of a GGL Option and in connection with the transfer of any regulatory filings or information, Adherex shall provide GGL, at no cost to GGL as detailed in Appendix 7, and subject to GGL’s use of commercially reasonable
efforts to become enabled with respect to the Development and Commercialization of Products, reasonable assistance as requested by GGL to permit GGL to respond to any governmental inquiries regarding any regulatory filings transferred by Adherex to
GGL.” 
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 7 

 20. Amendment to Section 8.1. Section 8.1 of the Agreement is hereby amended and restated in its
entirety to read as follows: 
 “8.1 Development Milestone Payments. In consideration for the license granted to Adherex
under the GGL Patents and GGL Know How and the license which may be granted to GGL under the Adherex Patents and Adherex Know How, each Party will pay to the other the non-refundable, non-creditable Milestone Payments as specified in
Section 8.1.1 and 8.1.2 within forty-five (45) days following notification of achievement of the particular milestone and receipt from the other Party of an invoice for the milestone amount. In the event a Party achieves a Development
milestone specified below, such Party will promptly, but in no event more than ten (10) days after the achievement of each such milestone, notify the other Party in writing of the achievement of same. Notwithstanding the foregoing, if one or
more milestone(s) do(es) not occur (e.g., for Option B, [*], but a later milestone is achieved (e.g., [*]), then all previous milestone(s) for which the applicable milestone payment(s) has (have) not been made will be paid at the time of achievement
of such subsequent milestone (e.g., if [*] is received without the requirement of completing the [*], then both [*] milestone and the [*] milestone would be paid following receipt of the [*]). The Milestone Payments will be made only one time for a
Product regardless of how many times such Development milestones are achieved for such Product and will be payable only for the first Product to reach that milestone; provided, however, that, notwithstanding the foregoing, where a Milestone Payment
is payable for [*] as specifically identified below, the Milestone Payment will be made each time a Product [*]. All milestone payments will apply whether Products are single or Combination Products; provided, however, that if a particular milestone
has already been achieved for a Product, the same milestone shall not be payable for a Combination Product which incorporates the Product or incorporates as one of its constituent APIs an API incorporated in the Product.” 
 21. Amendment to Section 8.1.2. Section 8.1.2 is hereby amended and restated in its entirety to read follows: 
 “8.1.2 Development Milestones to Adherex. If GGL exercises any of the GGL Options, it shall make the following Milestone Payments to Adherex
upon the achievement of the indicated Development milestone 
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 8 

 under such Option for the first Product to achieve such milestone and, as indicated, for each [*]. For
clarity, if GGL exercises an Option, it shall have no obligation to pay any Development milestone identified under an Option that GGL did not exercise, but GGL shall be required to pay all Development milestones identified under the Option exercised
regardless of when the milestones were achieved, prior to or after exercise of the Option. 
 GGL exercises OPTION B:

  

			
	 Milestone
	 	 Amount

	[*]	 	US$[*]
	[*]	 	US$[*]
	[*]	 	US$[*]
	[*]	 	US$[*]

 GGL exercises OPTION C: 
  

			
	 Milestone
	 	 Amount

	[*]	 	US$[*]
	[*]	 	US$[*]
	[*]	 	US$[*]

 GGL exercises OPTION E: 
  

			
	 Milestone
	 	 Amount

	[*]	 	US$[*]
	[*]	 	US$[*]
	[*]	 	US$[*]”

 22. Amendment of Section 8.4. Section 8.4 is hereby amended and restated in its entirety to read
follows: 
 “8.4 Royalties to Adherex on GGL Exercise of GGL Option. As further consideration for the acquisition of license
rights under the Adherex Patents under Section 4.2, and in those countries of the Territory 
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 9 

 in which there is a Valid Claim of a GGL Patent or an Adherex Patent claiming the manufacture, use or
sale of Product in the country of sale at the time such Net Sales occur, and if GGL exercises any of the GGL Options, GGL shall pay Adherex, within forty-five (45) days following the end of each calendar quarter, a tiered royalty based on
year-to-date, Annual Net Sales of each Product, on a Product by Product basis, for the previous calendar quarter, at the rates specified below. For the avoidance of doubt, different Products containing the same API(s) (including but not limited to
Combination Products and novel formulations) will not be deemed to be one and the same Product for the purposes of calculating total aggregate Net Sales and associated royalties on Annual Net Sales for purposes of this Section 8.4. All
royalties on Annual Net Sales will apply whether a Product is Developed and Commercialized as a single or Combination Product. 
 If GGL
exercises OPTION B: 
  

			
	 Annual Net Sales
	 	 Percentage of
 Annual Net Sales

	Annual Net Sales [*]	 	[*]%
	Annual Net Sales [*]	 	[*]%

 If GGL exercises OPTION C: 
  

			
	 Annual Net Sales
	 	 Percentage of
 Annual Net Sales

	Annual Net Sales [*]	 	[*]%
	Annual Net Sales [*]	 	[*]%

 If GGL exercises OPTION E: 
  

			
	 Annual Net Sales
	 	 Percentage of
 Annual Net Sales

	Annual Net Sales [*]	 	[*]%
	Annual Net Sales [*]	 	[*]%

 For clarification, the royalty rates set forth in this Section 8.4 are meant to be applied in
turn, with the higher royalty rate to be applied on incremental Net Sales above the lower threshold. By way of example, under Option B, [*], subject to Sections 8.4.1 and 8.4.2.” 
 23. Amendment of Section 8.4.2. Section 8.4.2 is hereby amended and restated in its entirety to read follows: 
 “8.4.2 [*].” 
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 10 

 24. Amendment to Section 13.2. Section 13.2 of the Agreement is hereby amended and restated in its
entirety to read follows: 
 “13.2 Royalties to Adherex on Exercise or Expiration of GGL Option. If GGL exercises any of the GGL
Options, GGL will pay Adherex the following percentages of any royalties that GGL receives from [*] on Net Sales by [*] of Product in the [*] Territory: 
 (a) If GGL exercises Option B, GGL will pay Adherex [*] percent ([*]%) of any royalties received by GGL from [*]; 
 (b) If GGL exercises Option C, GGL will pay Adherex [*] percent ([*]%) of any royalties received by GGL from [*]; and 
 (c) If GGL
exercises Option E, GGL will pay Adherex [*] percent ([*]%) of any royalties received by GGL from [*].” 
 25. Amendment to Section 15.4.1.
Section 15.4.1 is hereby amended and restated in its entirety to read follows: 
 “15.4.1 Effect of Termination for Material
Breach. 
 (a) Material Breach by GGL. In the event this Agreement is terminated by Adherex pursuant to
Section 15.3 for material breach by GGL: 
 (i) Prior to exercise of a GGL Option, all licenses granted by GGL to
Adherex and its Affiliates under this Agreement prior to termination will survive, subject to Adherex’s continued obligation to pay milestones, royalties, portions of any amounts recovered from Third Parties in settlement or as recovery for
infringement, and a portion of any amounts received under the [*] Agreements to GGL hereunder if Adherex continues the Development and Commercialization of Eniluracil or a Product consistent with Sections 8.1.1, 8.2.2, 8.3, 8.5.3, 12.2, and 13.1.1,
subject to any adjustments to such amounts consistent with Sections 8.6 through 8.10; or 
 (ii) After exercise of a GGL
Option, Adherex shall become the Licensee by virtue of such termination and shall have the right to continue Development and Commercialization of Eniluracil or a Product, by itself or its Affiliates or through a Third Party, subject to 

 

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 11 

 Adherex’s continued obligation to pay milestones, royalties, portions of any amounts recovered from
Third Parties in settlement or as recovery for infringement, and a portion of any amounts received under the [*] Agreements to GGL hereunder consistent with Sections 8.1.1, 8.2.2, 8.3, 8.5.3, 12.2, and 13.1.1, subject to any adjustments to such
amounts consistent with Sections 8.6 through 8.10; and 
 (iii) Regardless of timing, 
 (I) All licenses granted by Adherex to GGL or its Affiliates under this Agreement will terminate; 
 (II) Adherex will retain all of its rights to bring an action against GGL for damages and any other available remedies in law or equity
and will be entitled to set-off against any monies payable to GGL hereunder against all amounts Adherex reasonably believes constitute its damages incurred by such breach, subject to final judicial resolution or settlement; 
 (III) GGL, at its sole expense, will promptly transfer to Adherex, or will cause its designee(s) to transfer to Adherex, ownership of all
regulatory filings, approvals, correspondence, and conversation logs made or filed for each Product (to the extent that any are held in GGL’s or such designee(s)’s name and to the extent not previously transferred to Adherex)
(collectively, “GGL Filings”), such transfer to be as permitted by applicable Laws, and GGL will otherwise fully cooperate to permit Adherex to fully exercise its rights hereunder; and 
 (IV) GGL, at its sole expense, promptly shall return to Adherex, or destroy at Adherex’s request, all relevant records and materials
in its possession or control containing Confidential Information of Adherex; provided, however, that GGL may keep one copy of such Confidential Information for archival purposes only in accordance with Section 10.5. 
 (b) Material Breach by Adherex. In the event this Agreement is terminated by GGL pursuant to Section 15.3 for material
breach by Adherex: 
 (1) Termination by GGL for Material Breach Prior to Exercise or Expiration of GGL Option B and GGL
Option E: 
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 12 

 (i) All licenses granted by Adherex to GGL or its Affiliates under this Agreement prior
to termination will terminate; 
 (ii) All licenses granted by GGL to Adherex under this Agreement will terminate;

 (iii) GGL shall have the right, in the absence of any Valid Claims of any Adherex Patents which would be infringed by, or
the use of any Adherex Know-How which is not in the public domain in, the Development or Commercialization of Eniluracil or a Product, to continue Development and Commercialization of Eniluracil or a Product, by itself or its Affiliates or through a
Third Party, provided, 
 (I) GGL shall not by virtue of such termination have or be granted any licenses from Adherex; and

 (II) GGL shall not be obligated to pay any milestones or royalties to Adherex hereunder if, in the absence of any Valid
Claims of any Adherex Patents which would be infringed by, or the use of any Adherex Know-How which is not in the public domain in, the Development or Commercialization of Eniluracil or a Product, GGL continues the Development and Commercialization
of Eniluracil or a Product other than royalties pursuant to Section 8.5.3, which shall be payable to Adherex based on any Net Sales of any Product enjoying Regulatory Exclusivity due to an [*]; 
 (iv) GGL will retain all of its rights to bring an action against Adherex for damages and any other available remedies in law or equity
and will be entitled to set-off against any monies payable to Adherex hereunder against all amounts GGL reasonably believes constitute its damages incurred by such breach, subject to final judicial resolution or settlement; 
 (v) Adherex, at its sole expense, promptly shall return to GGL, or destroy at GGL’s request, all relevant records and materials in
its possession or control containing Confidential Information of GGL; provided, however, that Adherex may keep one copy of such Confidential Information for archival purposes only in accordance with Section 10.5. 
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 13 

 (2) Termination by GGL for Material Breach at Any Time After Expiration of GGL Option
B and GGL Option E: 
 (i) All licenses granted by Adherex to GGL or its Affiliates under this Agreement prior to
termination will survive, subject to GGL’s continued obligation to pay milestones and royalties to Adherex hereunder if GGL continues the Development and Commercialization of Eniluracil or a Product consistent with Sections 8.1.2 (Option C),
8.2.1, 8.4, 8.5.3, 12.2, and 13.2, subject to any adjustments to such amounts consistent with Sections 8.6 through 8.10; 
 (ii) All licenses granted by GGL to Adherex under this Agreement will terminate; 
 (iii) GGL shall have the right
to continue Development and Commercialization of Eniluracil or a Product, by itself or its Affiliates or through a Third Party, provided, 
 (I) if, at the time of such termination, GGL does not have any licenses from Adherex, GGL shall become the Licensee by virtue of such termination, and 
 (II) GGL shall be obligated to pay milestones, royalties, portions of any amounts recovered from Third Parties in settlement or as
recovery for infringement, and a portion of any amounts received under the [*] Agreements to Adherex hereunder if GGL continues the Development and Commercialization of Eniluracil or a Product consistent with Sections 8.1.2 (Option C), 8.2.1, 8.4,
8.5.3, 12.2, and 13.2, subject to any adjustments to such amounts consistent with Sections 8.6 through 8.10; 
 (iv) GGL will
retain all of its rights to bring an action against Adherex for damages and any other available remedies in law or equity and will be entitled to set-off against any monies payable to Adherex hereunder against all amounts GGL reasonably believes
constitute its damages incurred by such breach, subject to final judicial resolution or settlement; 
 (v) Adherex, at its
sole expense, will promptly transfer to GGL, or will cause its designee(s) to transfer to GGL, ownership of all regulatory filings, approvals, correspondence, all Trial information and data, and conversation logs made or filed for each Product (to
the extent that any are held in Adherex’s or such designee(s)’s name) 
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 14 

 and information and data set forth in Appendix 7, to the extent not previously transferred to GGL
(collectively, “Adherex Filings”), such transfer to be as permitted by applicable Laws, and Adherex will otherwise fully cooperate to permit GGL to fully exercise its rights hereunder; and 
 (vi) Adherex, at its sole expense, promptly shall return to GGL, or destroy at GGL’s request, all relevant records and materials in
its possession or control containing Confidential Information of GGL; provided, however, that Adherex may keep one copy of such Confidential Information for archival purposes only in accordance with Section 10.5.” 
 26. Deletion of Appendix 5. Appendix 5 is hereby deleted in its entirety from the Agreement. 
 27. Amendment to Appendix 7. Appendix 7 is hereby amended and restated in its entirety to read as follows: 
 “APPENDIX 7 
 MATERIALS AND SUPPORT TO BE PROVIDED TO GGL OR ITS 
 AFFILIATE BY ADHEREX ON EXERCISE OF GGL OPTIONS 
 On Exercise of Option B: 
  

	 	•	 	[*]; 

  

	 	•	 	[*] 

  

	 	•	 	[*]. 

 On Exercise of Option C*: 

 

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*]: 

 [*]; 
 [*]; 
 [*];

 [*]; 
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 15 

 [*]; 
 [*] 
  

	 	•	 	[*]; 

  

	 	•	 	[*]; 

  

	 	•	 	[*]; 

  

	 	•	 	[*]; 

  

	 	•	 	[*]; 

  

	 	•	 	[*]; 

  

	 	•	 	[*]; 

  

	 	•	 	[*]; 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	*	[*] 

 On Exercise of Option E: 
  

	 	•	 	[*]. 

  

	 	•	 	[*] 

  

	 	  	[*] 

  

	 	  	[*] 

  

	 	  	[*] 

  

	 	  	[*] 

  

	 	  	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 16 

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*]” 

 28. Addition of Appendices. Appendices 9, 10 and 11
attached hereto are hereby added in their entirety to the Agreement by this Second Amendment and incorporated by reference herein. 
 29. Binding
Effect. This Second Amendment shall be binding upon and inure to the benefit of the Parties hereto, their permitted successors, legal representatives and assigns. 
 30. Waiver. No waiver of any term or condition of this Second Amendment will be effective unless set forth in a written instrument that explicitly refers to this Second Amendment that is duly executed by or on
behalf of the waiving Party. No waiver by any Party of any term or condition of this Second Amendment, in any one or more instances, will be deemed to be or construed as a waiver of the same or any other term or condition of this Second Amendment on
any prior, concurrent or future occasion. Except as expressly set forth in this Second Amendment, all rights and remedies available to a Party, whether under this Second Amendment or afforded by Law or otherwise, will be cumulative and not in the
alternative to any other rights or remedies that may be available to such Party. 
 31. Severability. If any provision of this Seond Amendment is
held to be invalid, illegal or unenforceable in any respect, that provision will be limited or eliminated to the minimum extent necessary so that this Second Amendment will otherwise remain in full force and effect and enforceable. 
  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 17 

 32. Governing Law. This Seond Amendment will be construed, and the respective rights of the Parties determined,
according to the substantive law of the State of North Carolina without regard to the provisions governing conflict of laws. 
 33.
Counterparts. This Second Amendment may be executed in any two counterparts, each of which, when executed, will be deemed to be an original and both of which together will constitute one and the same document. 
 IN WITNESS WHEREOF, Glaxo Group Limited and Adherex Technologies Inc., by their duly authorized representatives, have executed this Amendment No. 2 as of the Second
Amendment Effective Date. 
  
  

											
	GLAXO GROUP LIMITED	 		 		 	ADHEREX TECHNOLOGIES INC.
						
	By:	 	 /s/ Paul Williamson
	 		 		 	By:	 	 /s/ William P. Peters

	Name:	 	Paul Williamson	 		 		 	Name:	 	William P. Peters, M.D., Ph.D., MBA
	Title:	 	for and on behalf of Edinburgh	 		 		 	Title:	 	Chairman and CEO
	Pharmaceutical Industries Limited	 		 		 		 	
	Corporate Director	 		 		 		 	

  

 18 

 APPENDIX 9 
 ENILURACIL [*] CLINICAL TRIALS 
  

	1.	[*] 

  

	2.	[*] 

  

	3.	[*] 

  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 19 

 APPENDIX 10 
 [*] STUDIES 
  

	1.	[*]. 

  

	2.	[*]. 

  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 20 

 APPENDIX 11 
 [*]TRIAL 
 [*] 
 [*] 
  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

 [*] 
  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	 	•	 	[*] 

  

	[*]	Confidential treatment requested; certain information omitted and filed separately with the SEC. 

  

 21Settlement Agreement and General Release, dated June 30, 2006

 Exhibit 10.2 
 SETTLEMENT AGREEMENT AND GENERAL RELEASE 
 This Settlement Agreement and Release
(“Agreement”) is made and entered into this 30th day of June 2006, by and between THE BOARD OF TRUSTEES
OF THE UNIVERSITY OF ALABAMA, a public corporation and one of its divisions, THE UNIVERSITY OF ALABAMA IN HUNTSVILLE (collectively “UAH”), on the one hand, and NEKTAR THERAPEUTICS AL, CORPORATION and NEKTAR
THERAPEUTICS (collectively “NEKTAR”) and J. MILTON HARRIS (“HARRIS”), on the other hand. 
 RECITALS 
 A. WHEREAS, on July 14, 2005, UAH filed a Complaint against NEKTAR in the United States
District Court for the Northern District of Alabama entitled The Board of Trustees of the University of Alabama, a public corporation, v. Nektar Therapeutics AL, Corporation and Nektar Therapeutics, Civil Action No. 05-cv-01514-JEO
(collectively, including amendments, “The Litigation”), asserting, inter alia, claims under contract, tort, conversion, and patent infringement theories and seeking, inter alia, a judicial declaration of ownership of United
States Patent No. 5,252,714 (“the 714 Patent”), as more fully set forth in the pleadings on file in this matter; 
 B.
WHEREAS, on August 3, 2005, UAH amended its Complaint to add HARRIS as an individual defendant and to assert, inter alia, additional claims against HARRIS and NEKTAR under theories of fraud, breach of
contract, breach of fiduciary duties, patent infringement, and conversion, and seeking a declaratory judgment on any patents not assigned to UAH, as more fully set forth in the pleadings on file in this matter; 
  

 1 

 C. WHEREAS, the said complaint and amended complaint were subsequently amended on two occasions and
additional claims were asserted against NEKTAR and HARRIS, as more fully set forth in the pleadings on file in this matter; 
 D. WHEREAS, Nektar Therapeutics AL, Corporation filed a counterclaim against UAH on November 7, 2005, seeking recovery under various tort theories for royalty payments wrongfully made to UAH, as more fully set forth in
the pleadings on file in this matter; 
 E. WHEREAS, UAH, on the one hand, and NEKTAR and HARRIS, on the other hand,
each expressly deny any wrongdoing or liability for the matters alleged against them, and neither party admits guilt or liability toward the other party; 
 F. WHEREAS, the Parties now desire to settle all claims asserted one against the other in The Litigation and to fully and finally satisfy and resolve any and all disputes between them, without further litigation,
expense, delay, or inconvenience. 
 TERMS AND CONDITIONS 
 NOW, THEREFORE, in consideration of the mutual covenants and promises set forth below and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties agree as follows: 
 1. Initial Payment: On or before July 5,
2006, NEKTAR and HARRIS will pay to UAH the sum of $15,000,000.00 (FIFTEEN MILLION DOLLARS) (the “Initial Payment”). NEKTAR and HARRIS will make the Initial Payment to UAH by electronic funds
transfer pursuant to written instructions to be provided to Augusta S. Dowd (“Dowd”), counsel for NEKTAR, or her successor or designee, by Stancil Starnes (“Starnes”), counsel for UAH, or by his successor or
designee. 
  

 2 

 2. Installment Payments: Beginning July 1, 2007, and for the next nine
(9) consecutive years thereafter, to conclude on July 1, 2016, NEKTAR shall pay to UAH the sum of $1,000,000.00 (ONE MILLION DOLLARS) per year for each year of the said ten (10) year period (“Installment
Payments”). NEKTAR shall make the Installment Payments by electronic funds transfer pursuant to written instructions to be provided to Dowd by Starnes. Harris shall have no obligation or responsibility to make any payment of the
Installment Payments to UAH. Full responsibility for payment of the Installment Payments shall be solely that of NEKTAR. 
 3.
Default of Installment Payments: If NEKTAR fails to pay any of the Installment Payments by the deadline of July 1st as required in paragraph 2, then UAH shall provide reasonable written notice to NEKTAR of NEKTAR’s default,
sent to the attention of the office of the General Counsel of Nektar Therapeutics (150 Industrial Road, San Carlos, CA 94070), with a copy to the Chief Financial Officer of Nektar Therapeutics (150 Industrial Road, San Carlos, CA 94070), following
the receipt of which NEKTAR shall have five (5) business days in which to cure the default. Should NEKTAR fail to cure the default within such five business day period, then the unpaid balance of the Installment Payments will become due
immediately. In addition, should NEKTAR fail to pay any of the Installment Payments by the deadline of July 1st as set forth in paragraph 2, and fail to cure such default as provided herein, the license described in paragraph 11 will be terminated and NEKTAR will lose any and all rights to the use of United States Patent No. 5,252,714
(entitled “Preparation and Use of Polyethylene Glycol Propionaldehyde”) (the “714 Patent”). 
  

 3 

 4. Security: If the cash, cash equivalents and investments1, as recorded on the quarterly financial statements of Nektar Therapeutics falls below $150,000,000.00 (ONE HUNDRED FIFTY
MILLION DOLLARS) in any quarter, or is reasonably likely to fall below $150,000,000.00 (ONE HUNDRED FIFTY MILLION DOLLARS) in the next quarter based on the quarterly financial statements of Nektar Therapeutics, then upon the written request of UAH
directed to the attention of the office of the General Counsel of Nektar Therapeutics (150 Industrial Road, San Carlos, CA 94070) with a copy to the Chief Financial Officer of Nektar Therapeutics (150 Industrial Road, San Carlos, CA 94070), Nektar
Therapeutics shall provide a letter of credit in favor of UAH in the amount of $1,000,000.00 (ONE MILLION DOLLARS) from a federally chartered bank. The $1,000,000.00 (ONE MILLION DOLLAR) letter of credit shall be renewed annually unless and
until the cash, cash equivalents and investments of Nektar Therapeutics, as reflected on the quarterly financial statements of Nektar Therapeutics, shall exceed $150,000,000.00 (ONE HUNDRED FIFTY MILLION DOLLARS). In addition, should the cash, cash
equivalents and investments of Nektar Therapeutics as stated in the quarterly financial statements of Nektar Therapeutics fall below $75,000,000.00 (SEVENTY -FIVE MILLION DOLLARS) in any given quarter, UAH shall have the right to demand that Nektar
escrow the remaining balance owed on the Installment Payments in a federally chartered bank for the exclusive benefit of UAH; provided, however, that UAH shall first provide written notice to Nektar Therapeutics sent to the attention of the office
of the General Counsel of Nektar Therapeutics, with a copy to the Chief Financial Officer of Nektar Therapeutics, of the deficiency in the cash, cash equivalents and investments and UAH shall allow Nektar 
  

	1	For purposes of this Agreement, the term “cash, cash equivalents and investments” shall mean all highly liquid investments with a maturity at the date of
purchase of three months or less, and shall include demand deposits held in banks, interest bearing money market funds, commercial paper, federal and municipal government securities, and repurchase agreements. 

  

 4 

 Therapeutics fourteen (14) business days after such written notice in which to cure the deficiency or the remaining
balance on the Installment Payments shall be escrowed by Nektar in a federally chartered bank for the exclusive benefit of UAH and the remaining Installment Payments shall be paid to UAH from these escrowed funds as they become due under paragraph
2. 
 5. Use of Settlement Proceeds: One of the major considerations that led Defendants to agree to settle this matter is the
desire and hope that UAH will utilize the settlement proceeds to advance UAH’s educational mission by providing a stable source of financial support to endowment beneficiaries and money for scholarships that promote Chemistry, Biology and
Biotechnology programs. 
 In an effort to attempt to amicably further a reconciliation of the Parties’ relationships, representatives
of UAH will meet with Defendants’ representatives within thirty (30) days from the completion of this settlement at an agreed-upon date, place and time to consider specific suggestions by Defendants for the use of the funds. 
 UAH reserves the right to use the settlement proceeds in any manner it deems appropriate consistent with the rules and policies of the Board of Trustees
of the University of Alabama. It currently plans, subject to any legal restrictions or prior contractual or policy obligations, to apply the funds towards its endowment and to fund scholarships for the entire campus, including Chemistry, Biology and
Biotechnology programs. 
 6. Satisfaction of Claims: HARRIS’ payment to UAH as set forth in Paragraph 1 and
NEKTAR’s payments to UAH as set forth in Paragraphs 1 and 2 above represent full and complete satisfaction of UAH’s claims against NEKTAR and HARRIS and against NEKTAR’s and
HARRIS’ past, present and future officers, directors, trustees, agents, attorneys, affiliates, consultants, employers, employees, heirs, successors, assigns, departments, 

  

 5 

 
operating units and other representatives, and the successors and assigns thereof. UAH’s acceptance of the settlement amount, which reflected and
accounted for NEKTAR’s counterclaims against UAH, also represents full and complete satisfaction of NEKTAR’s claims against UAH and against UAH’S past, present and future officers, directors, trustees,
agents, attorneys, affiliates, consultants, employers, employees, heirs, successors, assigns, departments, operating units and other representatives, and the successors and assigns thereof. 
 7. Dismissal of The Litigation: Upon receipt of the Initial Payment referenced in Paragraph 1 above, counsel for the Parties shall file a
Stipulation and Order of Dismissal in the form attached hereto as Exhibit “A”, dismissing The Litigation with prejudice, each party to bear its own costs and attorneys’ fees. The United States District Court for the Northern District
of Alabama, Northeastern Division, shall retain jurisdiction for the enforcement of the Settlement Agreement and Releases. 
 8.
UAH’s Full Release of NEKTAR and HARRIS: UAH, for itself, its past, present, and future officers, directors, trustees, employees, agents, attorneys, affiliates, consultants, departments, operating units, and other
representatives, and their successors and assigns, hereby releases and forever discharges NEKTAR and HARRIS and all of their past, present and future officers, directors, trustees, employers, employees, heirs, successors, assigns,
agents, attorneys, affiliates, consultants, departments, operating units, and all other representatives and their successors and assigns, from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, damages, actions,
causes of action, suits, rights, demands, costs, losses, debts, and expenses of any nature whatsoever, known or unknown, suspected or unsuspected (collectively referred to herein as the “Claim” or “Claims”) under federal, state
or other law, whether the same be based upon statute, contract, tort, or other basis, 

  

 6 

 
including but not limited to: (i) those Claims asserted and those which could have been asserted in The Litigation; (ii) any and all Claims
arising from or relating to HARRIS’ employment, past employment or separation from employment, with UAH; (iii) any and all Claims arising from UAH’s patent policy, faculty handbook or any other guideline, policy,
procedure, obligation, term or condition of HARRIS’ employment; (iv) any and all claims arising from or relating to the License Agreement entered between UAH and Shearwater Polymers, Inc. and any amendment or revision thereto; (v) any
and all claims related to U.S. Patent No. 5,252,714; (vi) any and all Claims arising from, or relating to, any facts that occurred up to the time UAH executes this Agreement; (vii) any and all Claims to the purchase price, or
any components of the purchase price paid by Nektar Therapeutics for Shearwater Corporation or any successor entity to Shearwater Corporation; (viii) any and all Claims relating to HARRIS’ work at UAH, Shearwater Corporation,
Shearwater Polymers, Inc., Nektar Therapeutics AL, Corp. or any successor entity or assign thereof or any future employer of HARRIS; (ix) any Claims of ownership, title, right or interest of any sort whatsoever, to any past, present or
future patent application, patent, technology, discovery, invention, trade secret, proprietary information, research and development, concepts, or intellectual property of any type, nature, or description whatsoever, owned, assigned or claimed by
NEKTAR and/or HARRIS or their past, present and future officers, directors, trustees, employers, employees, agents, attorneys, affiliates, consultants, departments, operating units, and all other representatives and their successors
and assigns. UAH agrees not to file any claim or lawsuit against any party asserting any Claims released in this Agreement and irrevocably and unconditionally waives and releases any and all rights to recovery or relief arising from any
Claims that are released in this Paragraph. 
  

 7 

 9. NEKTAR and HARRIS’ Full Release of UAH: NEKTAR and HARRIS, for themselves,
their past, present, and future officers, directors, trustees, employees, agents, attorneys, affiliates, consultants, departments, operating units, and other representatives, and their successors and assigns, hereby releases and forever discharges
UAH and all of its past, present and future officers, directors, trustees, employers, employees, heirs, successors, assigns, agents, attorneys, affiliates, consultants, departments, operating units, and all other representatives and their
successors and assigns, from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, damages, actions, causes of action, suits, rights, demands, costs, losses, debts, and expenses of any nature whatsoever, known or
unknown, suspected or unsuspected (collectively referred to herein as the “Claim” or “Claims”) under federal, state or other law, whether the same be based upon statute, contract, tort, or other basis, including but not
limited to: (i) those Claims asserted and those which could have been asserted in The Litigation; (ii) any and all Claims arising from or relating to HARRIS’ employment, past employment or separation from employment, with
UAH; (iii) any and all Claims arising from UAH’s patent policy, faculty handbook or any other guideline, policy, procedure, obligation, term or condition of HARRIS’ employment; (iv) any and all claims arising
from or relating to the License Agreement entered between UAH and Shearwater Polymers, Inc. and any amendment or revision thereto; (v) any and all claims related to U.S. Patent No. 5,252,714; (vi) any and all Claims arising from, or
relating to, any facts that occurred up to the time the Parties execute this Agreement; (vii) any and all Claims to the purchase price, or any components of the purchase price paid by Nektar Therapeutics for Shearwater Corporation or any
successor entity to Shearwater Corporation; (viii) any and all Claims relating to HARRIS’ work at UAH, Shearwater Corporation, Shearwater Polymers, Inc., Nektar Therapeutics AL, Corp. or any 
  

 8 

 
successor entity or assign thereof or any future employer of HARRIS; (ix) any Claims of ownership, title, right or interest of any sort
whatsoever, to any past, present or future patent application, patent, technology, discovery, invention, trade secret, proprietary information, research and development, concepts, or intellectual property of any type, nature, or description
whatsoever, owned, assigned or claimed by NEKTAR and/or HARRIS or their past, present and future officers, directors, trustees, employers, employees, agents, attorneys, affiliates, consultants, departments, operating units, and all
other representatives and their successors and assigns. NEKTAR and HARRIS agree not to file any claim or lawsuit against any party asserting any Claims released in this Agreement and irrevocably and unconditionally waives and releases any and
all rights to recovery or relief arising from any Claims that are released in this Paragraph. 
 10. Termination of 1993 License
Agreement: As a condition to this settlement NEKTAR insists the parties agree that there has been no default or breach of any of the obligations of the 1993 License Agreement. Therefore, the parties further agree as follows: 
 The License Agreement between UAH and Shearwater Polymers, Inc. (“Shearwater”) dated June 17, 1993 (the “1993 License Agreement”)
is hereby terminated in its entirety and, notwithstanding anything to the contrary in the 1993 License Agreement, any and all rights, obligations and liabilities of UAH and Shearwater under the 1993 License Agreement are hereby extinguished in their
entirety. UAH hereby affirms that neither Nektar nor any of its affiliates or their respective employees or agents, is in default or in breach of any of the obligations of Shearwater under the 1993 License Agreement, nor has Shearwater or Nektar or
any of their affiliates or their respective employees or agents ever defaulted or committed a breach of any of the obligations of Shearwater under the 1993 License Agreement. Accordingly, UAH 

  

 9 

 
acknowledges and agrees that neither Nektar nor any of its affiliates or their respective employees or agents, owes to UAH any royalties or other payments of
any kind whatsoever under the 1993 License Agreement, the 714 patent, or the new license agreement described in Paragraph 11 below. UAH further agrees that it shall be solely responsible for any and all payments of any kind whatsoever owed by UAH to
Dr. M. R. Sedeghat-Herati arising from or relating to the 714 Patent, the 1993 License Agreement, or the new license agreement described in Paragraph 11 below or this Agreement. 
 11. Grant of New License Agreement: Concurrently with the termination of the License Agreement, UAH hereby grants to Nektar a fully
paid up, royalty-free, worldwide, assignable, transferable, sole and exclusive (even as to UAH) license, with the right to grant and authorize sublicenses, under United States Patent No. 5,252,714 (entitled “Preparation and Use of
Polyethylene Glycol Propionaldehyde”) (the “714 Patent”), to make, have made, use, sell, offer for sale, import and offer to import products. Moreover, with the grant of such license, UAH acknowledges and agrees that Nektar has
the right to grant a sublicense to Amgen, Inc. under the 714 Patent, to make, have made, use, sell, offer for sale, import and offer to import products. In addition to the grant of a sublicense by Nektar to Amgen, Inc., Nektar has the right to grant
further sublicenses under the 714 Patent, to make, have made, use, sell, offer for sale, import and offer to import products, without the approval or consent of UAH, and without the payment of any royalties or any duty of accounting to UAH,
even if any sublicensees pay royalties, manufacturing revenues or other amounts to Nektar. 
 12. Taxes, Interest or Penalties:
UAH shall be solely responsible for the payment of any and all applicable federal and state or other taxes, interest or penalties that are owed by UAH for any payments made to UAH under this Agreement. 
  

 10 

 13. Non-Disparagement: Each Party agrees that its executive officers and directors will not
denigrate, disparage or discredit the other party; provided, however, that no casual, unintentional or inadvertent failure to comply with the provisions of this paragraph shall be deemed a breach or default under this Agreement. 
 14. Public Disclosure: The Parties agree that they will coordinate efforts to insure that any initial public pronouncement, public
statement, press release, or disclosure, including information disseminated to the press regarding or relating to The Litigation or this Agreement, is the result of a joint and collaborative effort between the Parties and agreed to in writing by UAH
and Nektar Therapeutics; provided, however, that the Parties may make disclosures without the consent of any other Party as required by law, rule or regulation including as required under the rules of any stock exchange and in its filings with the
SEC. 
 15. Survivability: This Agreement shall be binding on all successors of NEKTAR, HARRIS, and UAH.

 16. Compromise of Disputed Claims: The Parties acknowledge and agree that this Agreement is in compromise and settlement of
all disputes between them and that nothing contained in this Agreement constitutes or will be treated as an admission of liability or wrongdoing by any party. 
 17. Voluntary and Independent Execution: The Parties acknowledge that they have read this Agreement, have had the opportunity to confer with an attorney prior to executing the Agreement, understand the
terms recited in this Agreement, and execute this Agreement voluntarily, willingly, and without coercion. 
 18. Legal Authority to
Execute: The Parties and the individuals signing on their behalf expressly warrant that each of the undersigned individuals has the right, power, legal capacity, and authority to enter into this Agreement on behalf of each of them and to
bind the Parties. 
  

 11 

 19. Alabama Law Governs: This Agreement shall be governed by and construed in accordance
with the laws of Alabama, without regard to choice of law principles. 
 20. Alabama Forum Selection Clause: Any action arising
from or related to this agreement shall be filed in the state or federal courts of Madison County, Alabama or, if required by law, with the Board of Adjustment of the State of Alabama. 
 21. Immunity: Nothing in this agreement should be construed as a waiver of any immunity enjoyed by the University and its employees, agents
and assignees. 
 22. Severability: Should any of the non-material provisions of this Agreement be declared or be determined by
any court to be illegal, void, invalid, or unenforceable by a court of competent jurisdiction, the validity of the remaining parts, terms, or provisions shall not be affected thereby, and said illegal or invalid part, term, or provision shall be
deemed not to be a part of this Agreement. It is the intention of the Parties hereto that if any term or provision of this Agreement is capable of two constructions, one of which would render the term or provision void and the other of which would
render the term or provision valid, then the term or provision shall have the meaning that renders it valid. 
 23. Entire
Agreement: This Agreement (including Exhibit A attached hereto) set forth the entire agreement and understanding between the Parties on the subject matter hereof, and supersede all prior discussions and negotiations between them. This
Agreement shall be binding upon and shall inure to the benefit of the Parties hereto, their respective heirs, administrators, beneficiaries, representatives, executors, successors, and assigns. This Agreement may be amended, modified, or
supplemented only by a written instrument executed 

  

 12 

 
by the Parties affected thereby, and such amendment shall be binding upon their respective heirs, administrators, beneficiaries, executors, successors, and
assigns. Neither one or more waivers by one or more of the Parties of a breach of, or a default under, any of the provisions of the Agreement, nor one or more failures of one or more of the Parties to enforce any of the provisions of the Agreement,
shall thereafter be construed as a waiver of any subsequent breach or default of a similar nature, or as a waiver of any provisions, rights, or privileges under the Agreement. 
 24. Termination of Relationship: The Parties agree and acknowledge that this Agreement shall terminate all relationships, affiliations,
agreements, obligations and understandings existing up to the time of execution of this Agreement between UAH, on the one hand, and NEKTAR and/or HARRIS, on the other hand, except for the Shearwater Scholarship for UAH Academic Excellence in
Chemistry and the Shearwater Corporation Biotechnology Fellowships. 
 25. Counterparts: This Agreement may be executed by the
Parties in one or more counterparts, and may be executed on telefaxed copies, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. This document shall have no force and effect until and
unless signed by all parties listed below. 
 26. Return of Confidential Documents: Within thirty (30) days of the
electronic transfer of the Initial Payment to Starnes, each party shall either: (a) destroy all confidential documents by any other party and shall so certify the fact of such destruction to counsel for the other parties; or (b) shall
return all confidential documents to counsel for the producing party. 
  

 13 

 27. Captions: The captions or headings in this Agreement are made for convenience and
general reference only, and shall not be constructed to describe, define or limit the scope or intent of the provisions of this Agreement. 
 28. Necessary Action: Each party shall perform any further acts and execute and deliver any documents that may be reasonably necessary to carry out the provisions of this Agreement. 
 IN WITNESS WHEREOF, the Parties have executed this Agreement as manifested by their signatures below on this 30th day of June, 2006. 
 PLEASE READ CAREFULLY. THIS SETTLEMENT AGREEMENT AND GENERAL 
 RELEASE INCLUDE A RELEASE OF KNOWN AND UNKNOWN CLAIMS. 
  

 14 

							
	/s/ Ralph H. Smith	 		 	
	THE BOARD OF TRUSTEES OF THE UNIVERSITY OF ALABAMA	 		 	
	BY:	 	RALPH H. SMITH	 		 	
	ITS:	 	GENERAL COUNSEL	 		 	
		 		 		 	
			
	/s/ FRANK FRANZ	 		 	
	THE UNIVERSITY OF ALABAMA IN HUNTSVILLE	 		 	
	BY:	 	FRANK FRANZ	 		 	
	ITS:	 	PRESIDENT	 		 	
			
	/s/ Nevan Elam	 		 	
	NEKTAR THERAPEUTICS AL, CORPORATION	 		 	
	BY:	 	NEVAN ELAM	 		 	
	ITS:	 	GENERAL COUNSEL	 		 	
			
	/s/ Nevan Elam	 		 	
	NEKTAR THERAPEUTICS	 		 	
	BY:	 	NEVAN ELAM	 		 	
	ITS:	 	GENERAL COUNSEL	 		 	
			
	/s/ J. Milton Harris	 		 	
	J. MILTON HARRIS	 		 	

  

 15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]