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                                                                   EXHIBIT 10.09

                            INDEMNIFICATION AGREEMENT

         This Indemnification Agreement ("Agreement") is made as of _________,
2003 by and between CancerVax Corporation, a Delaware corporation (the
"Company"), and ________________ ("Indemnitee").

                                    RECITALS

         WHEREAS, highly competent persons have become more reluctant to serve
corporations as directors or in other capacities unless they are provided with
adequate protection through insurance or adequate indemnification against
inordinate risks of claims and actions against them arising out of their service
to and activities on behalf of the corporation;

         WHEREAS, the Board of Directors of the Company (the "Board") has
determined that, in order to attract and retain qualified individuals, the
Company will attempt to maintain on an ongoing basis, at its sole expense,
liability insurance to protect persons serving the Company and its subsidiaries
from certain liabilities. Although the furnishing of such insurance has been a
customary and widespread practice among United States-based corporations and
other business enterprises, the Company believes that, given current market
conditions and trends, such insurance may be available to it in the future only
at higher premiums and with more exclusions. At the same time, directors,
officers and other persons in service to corporations or business enterprises
are being increasingly subjected to expensive and time-consuming litigation
relating to, among other things, matters that traditionally would have been
brought only against the Company or business enterprise itself. The certificate
of incorporation and bylaws of the Company require indemnification of the
officers and directors of the Company. Indemnitee may also be entitled to
indemnification pursuant to the General Corporation Law of the State of Delaware
("DGCL"). The certificate of incorporation, bylaws and the DGCL expressly
provide that the indemnification provisions set forth therein are not exclusive,
and thereby contemplate that contracts may be entered into between the Company
and members of the Board, officers and other persons with respect to
indemnification;

         WHEREAS, the uncertainties relating to such insurance and to
indemnification have increased the difficulty of attracting and retaining such
persons;

         WHEREAS, the Board has determined that the increased difficulty in
attracting and retaining such persons is detrimental to the best interests of
the Company's stockholders and that the Company should act to assure such
persons that there will be increased certainty of such protection in the future;

         WHEREAS, it is reasonable, prudent and necessary for the Company
contractually to obligate itself to indemnify, and to advance expenses on behalf
of, such persons to the fullest extent permitted by applicable law so that they
will serve or continue to serve the Company free from undue concern that they
will not be so indemnified;
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         WHEREAS, this Agreement is a supplement to and in furtherance of the
certificate of incorporation and bylaws of the Company and any resolutions
adopted pursuant thereto and shall not be deemed a substitute therefor, nor to
diminish or abrogate any rights of Indemnitee thereunder; and

         WHEREAS, Indemnitee does not regard the protection available under the
Company's certificate of incorporation, bylaws and insurance as adequate in the
present circumstances, and may not be willing to serve as an officer or director
without adequate protection, and the Company desires Indemnitee to serve in such
capacity. Indemnitee is willing to serve, continue to serve and to take on
additional service for or on behalf of the Company on the condition that he or
she be so indemnified.

         NOW, THEREFORE, in consideration of the premises and the covenants
contained herein, the Company and Indemnitee do hereby covenant and agree as
follows:

         1.       SERVICES TO THE COMPANY. Indemnitee will serve or continue to
serve as an officer, director or key employee of the Company for so long as
Indemnitee is duly elected or appointed or until Indemnitee tenders his or her
resignation.

         2.       DEFINITIONS. As used in this Agreement:

                  (a)      "Beneficial Owner" shall have the meaning given to
such term in Rule 13d-3 under the Exchange Act; provided, however, that
Beneficial Owner shall exclude any Person otherwise becoming a Beneficial Owner
by reason of the stockholders of the Company approving a merger of the Company
with another entity.

                  (b)      A "Change in Control" shall be deemed to occur upon
the earliest to occur after the date of this Agreement of any of the following
events:

                           (i)      Acquisition of Stock by Third Party. Any
         Person (as defined below) is or becomes the Beneficial Owner, directly
         or indirectly, of securities of the Company representing twenty percent
         (20%) or more of the combined voting power of the Company's then
         outstanding securities;

                           (ii)     Change in Board of Directors. During any
         period of two (2) consecutive years (not including any period prior to
         the execution of this Agreement), individuals who at the beginning of
         such period constitute the Board, and any new director (other than a
         director designated by a person who has entered into an agreement with
         the Company to effect a transaction described in Sections 2(b)(i),
         2(b)(iii) or 2(b)(iv)) whose election by the Board or nomination for
         election by the Company's stockholders was approved by a vote of at
         least two-thirds of the directors then still in office who either were
         directors at the beginning of the period or whose election or
         nomination for election was previously so approved, cease for any
         reason to constitute at least a majority of the members of the Board;

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                           (iii)    Corporate Transactions. The effective date
         of a merger or consolidation of the Company with any other entity,
         other than a merger or consolidation which would result in the voting
         securities of the Company outstanding immediately prior to such merger
         or consolidation continuing to represent (either by remaining
         outstanding or by being converted into voting securities of the
         surviving entity) more than 50.1% of the combined voting power of the
         voting securities of the surviving entity outstanding immediately after
         such merger or consolidation and with the power to elect at least a
         majority of the board of directors or other governing body of such
         surviving entity;

                           (iv)     Liquidation. The approval by the
         stockholders of the Company of a complete liquidation of the Company or
         an agreement or series of agreements for the sale or disposition by the
         Company of all or substantially all of the Company's assets; or

                           (v)      Other Events. There occurs any other event
         of a nature that would be required to be reported in response to Item
         6(e) of Schedule 14A of Regulation 14A (or a response to any similar
         item on any similar schedule or form) promulgated under the Exchange
         Act (as defined below), whether or not the Company is then subject to
         such reporting requirement.

                  (c)      "Corporate Status" describes the status of a person
who is or was a director, officer, trustee, general partner, managing member,
fiduciary, employee or agent of the Company or of any other Enterprise (as
defined below) which such person is or was serving at the request of the
Company.

                  (d)      "Disinterested Director" means a director of the
Company who is not and was not a party to the Proceeding in respect of which
indemnification is sought by Indemnitee.

                  (e)      "Enterprise" shall mean the Company and any other
corporation, limited liability company, partnership, joint venture, trust,
employee benefit plan or other enterprise of which Indemnitee is or was serving
at the request of the Company as a director, officer, trustee, general partner,
managing member, fiduciary, employee or agent.

                  (f)      "Exchange Act" shall mean the Securities Exchange Act
of 1934, as amended.

                  (g)      "Expenses" shall include all reasonable attorneys'
fees, retainers, court costs, transcript costs, fees of experts, witness fees,
travel expenses, duplicating costs, printing and binding costs, telephone
charges, postage, delivery service fees and all other disbursements or expenses
of the type customarily incurred in connection with prosecuting, defending,
preparing to prosecute or defend, investigating, being or preparing to be a
witness in, or otherwise participating in, a Proceeding. Expenses also shall
include Expenses incurred in connection with any appeal resulting from any
Proceeding, including, without limitation, the premium, security for and other
costs relating to any cost bond, supersedeas bond or other appeal bond or its
equivalent. Expenses, however, shall not include amounts paid in settlement by
Indemnitee or the amount of judgments or fines against Indemnitee.

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                  (h)      "Independent Counsel" means a law firm, or a member
of a law firm, that is experienced in matters of corporation law and neither
presently is, nor in the past five years has been, retained to represent: (i)
the Company or Indemnitee in any matter material to either such party (other
than with respect to matters concerning Indemnitee under this Agreement, or of
other indemnitees under similar indemnification agreements), or (ii) any other
party to the Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term "Independent Counsel" shall not include
any person who, under the applicable standards of professional conduct then
prevailing, would have a conflict of interest in representing either the Company
or Indemnitee in an action to determine Indemnitee's rights under this
Agreement. The Company agrees to pay the reasonable fees and expenses of the
Independent Counsel referred to above and to fully indemnify such counsel
against any and all Expenses, claims, liabilities and damages arising out of or
relating to this Agreement or its engagement pursuant hereto.

                  (i)      "Person" shall have the meaning set forth in Sections
13(d) and 14(d) of the Exchange Act; provided, however, that Person shall
exclude (i) the Company, (ii) any trustee or other fiduciary holding securities
under an employee benefit plan of the Company and (iii) any corporation owned,
directly or indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company.

                  (j)      The term "Proceeding" shall include any threatened,
pending or completed action, suit, arbitration, alternate dispute resolution
mechanism, investigation, inquiry, administrative hearing or any other actual,
threatened or completed proceeding, whether brought in the right of the Company
or otherwise and whether of a civil, criminal, administrative or investigative
nature, in which Indemnitee was, is or will be involved as a party or otherwise
by reason of the fact that Indemnitee is or was a director or officer of the
Company, by reason of any action taken (or failure to act) by him or her or of
any action (or failure to act) on his or her part while acting as a director or
officer of the Company, or by reason of the fact that he or she is or was
serving at the request of the Company as a director, officer, trustee, general
partner, managing member, fiduciary, employee or agent of any other Enterprise,
in each case whether or not serving in such capacity at the time any liability
or expense is incurred for which indemnification, reimbursement or advancement
of expenses can be provided under this Agreement.

                  (k)      References to "other enterprise" shall include
employee benefit plans; references to "fines" shall include any excise tax
assessed with respect to any employee benefit plan; references to "serving at
the request of the Company" shall include any service as a director, officer,
employee or agent of the Company which imposes duties on, or involves services
by, such director, officer, employee or agent with respect to an employee
benefit plan, its participants or beneficiaries; and a person who acted in good
faith and in a manner he or she reasonably believed to be in the best interests
of the participants and beneficiaries of an employee benefit plan shall be
deemed to have acted in a manner "not opposed to the best interests of the
Company" as referred to in this Agreement.

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         3.       INDEMNITY IN THIRD-PARTY PROCEEDINGS. The Company shall
indemnify Indemnitee in accordance with the provisions of this Section 3 if
Indemnitee is, or is threatened to be made, a party to or a participant (as a
witness or otherwise) in any Proceeding, other than a Proceeding by or in the
right of the Company to procure a judgment in its favor. Pursuant to this
Section 3, Indemnitee shall be indemnified against all Expenses, judgments,
fines, penalties and amounts paid in settlement (including all interest,
assessments and other charges paid or payable in connection with or in respect
of such Expenses, judgments, fines, penalties and amounts paid in settlement)
actually and reasonably incurred by Indemnitee or on his or her behalf in
connection with such Proceeding or any claim, issue or matter therein, if
Indemnitee acted in good faith and in a manner he or she reasonably believed to
be in or not opposed to the best interests of the Company and, in the case of a
criminal proceeding, he or she had no reasonable cause to believe that his or
her conduct was unlawful.

         4.       INDEMNITY IN PROCEEDINGS BY OR IN THE RIGHT OF THE COMPANY.
The Company shall indemnify Indemnitee in accordance with the provisions of this
Section 4 if Indemnitee is, or is threatened to be made, a party to or a
participant (as a witness or otherwise) in any Proceeding by or in the right of
the Company to procure a judgment in its favor. Pursuant to this Section 4,
Indemnitee shall be indemnified against all Expenses actually and reasonably
incurred by Indemnitee or on his or her behalf in connection with such
Proceeding or any claim, issue or matter therein, if Indemnitee acted in good
faith and in a manner he or she reasonably believed to be in or not opposed to
the best interests of the Company. No indemnification for Expenses shall be made
under this Section 4 in respect of any claim, issue or matter as to which
Indemnitee shall have been finally adjudged by a court to be liable to the
Company, unless and only to the extent that any court in which the Proceeding
was brought or the Delaware Court of Chancery shall determine upon application
that, despite the adjudication of liability but in view of all the circumstances
of the case, Indemnitee is fairly and reasonably entitled to indemnification.

         5.       INDEMNIFICATION FOR EXPENSES OF A PARTY WHO IS WHOLLY OR
PARTLY SUCCESSFUL. Notwithstanding any other provisions of this Agreement, to
the extent that Indemnitee is a party to (or a participant in) and is
successful, on the merits or otherwise, in any Proceeding or in defense of any
claim, issue or matter therein, in whole or in part, the Company shall indemnify
Indemnitee against all Expenses actually and reasonably incurred by him or her
in connection therewith. If Indemnitee is not wholly successful in such
Proceeding but is successful, on the merits or otherwise, as to one or more but
less than all claims, issues or matters in such Proceeding, the Company shall
indemnify Indemnitee against all Expenses actually and reasonably incurred by
him or her or on his or her behalf in connection with each successfully resolved
claim, issue or matter. If Indemnitee is not wholly successful in such
Proceeding, the Company also shall indemnify Indemnitee against all Expenses
reasonably incurred in connection with a claim, issue or matter related to any
claim, issue or matter on which Indemnitee was successful. For purposes of this
Section and without limitation, the termination of any claim, issue or matter in
such a Proceeding by dismissal, with or without prejudice, shall be deemed to be
a successful result as to such claim, issue or matter.

         6.       INDEMNIFICATION FOR EXPENSES OF A WITNESS. Notwithstanding any
other provision of this Agreement, to the extent that Indemnitee is, by reason
of his Corporate Status, a witness in any Proceeding to which Indemnitee is not
a party, he shall be indemnified against all

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Expenses actually and reasonably incurred by him or her or on his or her behalf
in connection therewith.

         7.       ADDITIONAL INDEMNIFICATION.

                  (a)      Notwithstanding any limitation in Sections 3, 4 or 5,
the Company shall indemnify Indemnitee to the fullest extent permitted by law if
Indemnitee is a party to or threatened to be made a party to any Proceeding
(including a Proceeding by or in the right of the Company to procure a judgment
in its favor) against all Expenses, judgments, fines, penalties and amounts paid
in settlement (including all interest, assessments and other charges paid or
payable in connection with or in respect of such Expenses, judgments, fines,
penalties and amounts paid in settlement) actually and reasonably incurred by
Indemnitee in connection with the Proceeding. No indemnity shall be made under
this Section 7(a) on account of Indemnitee's conduct which constitutes a breach
of Indemnitee's duty of loyalty to the Company or its stockholders or is an act
or omission not in good faith or which involves intentional misconduct or a
knowing violation of the law.

                  (b)      For purposes of Section 7(a), the meaning of the
phrase "to the fullest extent permitted by law" shall include, but not be
limited to:

                           (i)      to the fullest extent permitted by the
         provision of the DGCL that authorizes or contemplates additional
         indemnification by agreement, or the corresponding provision of any
         amendment to or replacement of the DGCL; and

                           (ii)     to the fullest extent authorized or
         permitted by any amendments to or replacements of the DGCL adopted
         after the date of this Agreement that increase the extent to which a
         corporation may indemnify its officers and directors.

         8.       EXCLUSIONS. Notwithstanding any other provision in this
Agreement, the Company shall not be obligated under this Agreement to make any
indemnity in connection with any claim made against Indemnitee:

                  (a)      for which payment has actually been received by or on
behalf of Indemnitee under any insurance policy or other indemnity provision,
except with respect to any excess beyond the amount actually received under any
insurance policy or other indemnity provision;

                  (b)      for an accounting of profits made from the purchase
and sale (or sale and purchase) by Indemnitee of securities of the Company
within the meaning of Section 16(b) of the Exchange Act or similar provisions of
state statutory law or common law; or

                  (c)      except as otherwise provided in Sections 13(d)-(f)
hereof, prior to a Change in Control, in connection with any Proceeding (or any
part of any Proceeding) initiated by Indemnitee, including any Proceeding (or
any part of any Proceeding) initiated by Indemnitee against the Company or its
directors, officers, employees or other indemnitees, unless (i) the Board of
Directors of the Company authorized the Proceeding (or any part of any
Proceeding)

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prior to its initiation or (ii) the Company provides the indemnification, in its
sole discretion, pursuant to the powers vested in the Company under applicable
law.

         9.       ADVANCES OF EXPENSES; DEFENSE OF CLAIM.

                  (a)      Notwithstanding any provision of this Agreement to
the contrary, the Company shall advance the expenses incurred by Indemnitee in
connection with any Proceeding within ten (10) days after the receipt by the
Company of a statement or statements requesting such advances from time to time,
whether prior to or after final disposition of any Proceeding. Advances shall be
unsecured and interest free. Advances shall be made without regard to
Indemnitee's ability to repay the expenses and without regard to Indemnitee's
ultimate entitlement to indemnification under the other provisions of this
Agreement. Advances shall include any and all reasonable Expenses incurred
pursuing an action to enforce this right of advancement, including Expenses
incurred preparing and forwarding statements to the Company to support the
advances claimed. Indemnitee shall qualify for advances solely upon the
execution and delivery to the Company of an undertaking providing that
Indemnitee undertakes to repay the advance to the extent that it is ultimately
determined that Indemnitee is not entitled to be indemnified by the Company.
This Section 9(a) shall not apply to any claim made by Indemnitee for which
indemnity is excluded pursuant to Section 8.

                  (b)      The Company will be entitled to participate in the
Proceeding at its own expense.

                  (c)      The Company shall not settle any action, claim or
Proceeding (in whole or in part) which would impose any Expense, judgment, fine,
penalty or limitation on Indemnitee without Indemnitee's prior written consent.

         10.      PROCEDURE FOR NOTIFICATION AND APPLICATION FOR
                  INDEMNIFICATION.

                  (a)      Within sixty (60) days after the actual receipt by
Indemnitee of notice that he or she is a party to or a participant (as a witness
or otherwise) in any Proceeding, Indemnitee shall submit to the Company a
written notice identifying the Proceeding. The omission by Indemnitee to notify
the Company will not relieve the Company from any liability which it may have to
Indemnitee (i) otherwise than under this Agreement and (ii) under this Agreement
only to the extent the Company can establish that such omission to notify
resulted in actual prejudice to the Company.

                  (b)      Indemnitee shall thereafter deliver to the Company a
written application to indemnify Indemnitee in accordance with this Agreement.
Such application(s) may be delivered from time to time and at such time(s) as
Indemnitee deems appropriate in his or her sole discretion. Following such a
written application for indemnification by Indemnitee, Indemnitee's entitlement
to indemnification shall be determined in accordance with Section 11(a) of this
Agreement.

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         11.      PROCEDURE UPON APPLICATION FOR INDEMNIFICATION.

                  (a)      Upon written request by Indemnitee for
indemnification pursuant to Section 10(b), a determination, if required by
applicable law, with respect to Indemnitee's entitlement thereto shall be made
in the specific case: (i) by a majority vote of the Disinterested Directors,
even though less than a quorum of the Board; or (ii) if so requested by
Indemnitee, in his or her sole discretion, by Independent Counsel in a written
opinion to the Board, a copy of which shall be delivered to Indemnitee. If it is
so determined that Indemnitee is entitled to indemnification, payment to
Indemnitee shall be made within ten (10) days after such determination.
Indemnitee shall reasonably cooperate with the person, persons or entity making
such determination with respect to Indemnitee's entitlement to indemnification,
including providing to such person, persons or entity upon reasonable advance
request any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to Indemnitee and
reasonably necessary to such determination. Any costs or expenses (including
attorneys' fees and disbursements) incurred by Indemnitee in so cooperating with
the person, persons or entity making such determination shall be borne by the
Company (irrespective of the determination as to Indemnitee's entitlement to
indemnification) and the Company hereby indemnifies and agrees to hold
Indemnitee harmless therefrom.

                  (b)      In the event the determination of entitlement to
indemnification is to be made by Independent Counsel pursuant to Section 11(a)
hereof, the Independent Counsel shall be selected as provided in this Section
11(b). If a Change in Control shall not have occurred, the Independent Counsel
shall be selected by the Board of Directors, and the Company shall give written
notice to Indemnitee advising him of the identity of the Independent Counsel so
selected. If a Change in Control shall have occurred, the Independent Counsel
shall be selected by Indemnitee (unless Indemnitee shall request that such
selection be made by the Board of Directors, in which event the preceding
sentence shall apply), and Indemnitee shall give written notice to the Company
advising it of the identity of the Independent Counsel so selected. In either
event, Indemnitee or the Company, as the case may be, may, within 10 days after
such written notice of selection shall have been received, deliver to the
Company or to Indemnitee, as the case may be, a written objection to such
selection; provided, however, that such objection may be asserted only on the
ground that the Independent Counsel so selected does not meet the requirements
of "Independent Counsel" as defined in Section 2 of this Agreement, and the
objection shall set forth with particularity the factual basis of such
assertion. Absent a proper and timely objection, the person so selected shall
act as Independent Counsel. If such written objection is so made and
substantiated, the Independent Counsel so selected may not serve as Independent
Counsel unless and until such objection is withdrawn or a court of competent
jurisdiction has determined that such objection is without merit. If, within 20
days after submission by Indemnitee of a written request for indemnification
pursuant to Section 10(b) hereof, no Independent Counsel shall have been
selected and not objected to, either the Company or Indemnitee may petition a
court of competent jurisdiction (the "Court") for resolution of any objection
which shall have been made by the Company or Indemnitee to the other's selection
of Independent Counsel and/or for the appointment as Independent Counsel of a
person selected by the Court or by such other person as the Court shall
designate, and the person with respect to whom all objections are so resolved or
the person so appointed shall act as Independent Counsel under Section 11(a)
hereof. Upon the due commencement of any judicial proceeding or

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arbitration pursuant to Section 13(a) of this Agreement, Independent Counsel
shall be discharged and relieved of any further responsibility in such capacity
(subject to the applicable standards of professional conduct then prevailing).

                  (c)      The Company agrees to pay the reasonable fees of
Independent Counsel and to fully indemnify such Independent Counsel against any
and all Expenses, claims, liabilities and damages arising out of or relating to
this Agreement or its engagement pursuant hereto.

         12.      PRESUMPTIONS AND EFFECT OF CERTAIN PROCEEDINGS.

                  (a)      In making a determination with respect to entitlement
to indemnification hereunder, the person or persons or entity making such
determination shall presume that Indemnitee is entitled to indemnification under
this Agreement if Indemnitee has submitted a request for indemnification in
accordance with Section 10(b) of this Agreement, and the Company shall have the
burden of proof to overcome that presumption in connection with the making by
any person, persons or entity of any determination contrary to that presumption.
Neither the failure of the Company (including by the Board or Independent
Counsel) to have made a determination prior to the commencement of any action
pursuant to this Agreement that indemnification is proper in the circumstances
because Indemnitee has met the applicable standard of conduct, nor an actual
determination by the Company (including by the Board or Independent Counsel)
that Indemnitee has not met such applicable standard of conduct, shall be a
defense to the action or create a presumption that Indemnitee has not met the
applicable standard of conduct.

                  (b)      If the person, persons or entity empowered or
selected under Section 11 of this Agreement to determine whether Indemnitee is
entitled to indemnification shall not have made a determination within sixty
(60) days after receipt by the Company of the request therefor, the requisite
determination of entitlement to indemnification shall be deemed to have been
made and Indemnitee shall be entitled to such indemnification, absent (i) a
misstatement by Indemnitee of a material fact, or an omission of a material fact
necessary to make Indemnitee's statement not materially misleading, in
connection with the request for indemnification or (ii) a prohibition of such
indemnification under applicable law; provided, however, that such 60-day period
shall be extended for a reasonable time, not to exceed an additional thirty (30)
days, if the person, persons or entity making the determination with respect to
entitlement to indemnification in good faith requires such additional time for
the obtaining or evaluating of documentation and/or information relating
thereto.

                  (c)      The termination of any Proceeding or of any claim,
issue or matter therein, by judgment, order, settlement or conviction, or upon a
plea of nolo contendere or its equivalent, shall not (except as otherwise
expressly provided in this Agreement) of itself adversely affect the right of
Indemnitee to indemnification or create a presumption that Indemnitee did not
act in good faith and in a manner which he or she reasonably believed to be in
or not opposed to the best interests of the Company or, with respect to any
criminal Proceeding, that Indemnitee had reasonable cause to believe that his or
her conduct was unlawful.

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                  (d)      For purposes of any determination of good faith,
Indemnitee shall be deemed to have acted in good faith if Indemnitee's action is
based on the records or books of account of the Enterprise, including financial
statements, or on information supplied to Indemnitee by the officers of the
Enterprise in the course of their duties, or on the advice of legal counsel for
the Enterprise or on information or records given or reports made to the
Enterprise by an independent certified public accountant or by an appraiser or
other expert selected by the Enterprise. The provisions of this Section 12(d)
shall not be deemed to be exclusive or to limit in any way the other
circumstances in which Indemnitee may be deemed or found to have met the
applicable standard of conduct set forth in this Agreement.

                  (e)      The knowledge and/or actions, or failure to act, of
any other director, trustee, partner, managing member, fiduciary, officer, agent
or employee of the Enterprise shall not be imputed to Indemnitee for purposes of
determining the right to indemnification under this Agreement.

         13.      REMEDIES OF INDEMNITEE.

                  (a)      In the event that (i) a determination is made
pursuant to Section 11 of this Agreement that Indemnitee is not entitled to
indemnification under this Agreement, (ii) advancement of Expenses is not timely
made pursuant to Section 9 of this Agreement, (iii) no determination of
entitlement to indemnification shall have been made pursuant to Section 11(a) of
this Agreement within the time period specified in Section 12(b) of this
Agreement, (iv) payment of indemnification is not made pursuant to Section 5, 6,
7 or the last sentence of Section 11(a) of this Agreement within ten (10) days
after receipt by the Company of a written request therefor or (v) payment of
indemnification pursuant to Section 3 or Section 4 of this Agreement is not made
within ten (10) days after a determination has been made that Indemnitee is
entitled to indemnification, Indemnitee shall be entitled to an adjudication by
a court of his or her entitlement to such indemnification or advancement of
Expenses. Alternatively, Indemnitee, at his or her option, may seek an award in
arbitration to be conducted by a single arbitrator pursuant to the Commercial
Arbitration Rules of the American Arbitration Association. The Company shall not
oppose Indemnitee's right to seek any such adjudication or award in arbitration.

                  (b)      In the event that a determination shall have been
made pursuant to Section 11(a) of this Agreement that Indemnitee is not entitled
to indemnification, any judicial proceeding or arbitration commenced pursuant to
this Section 13 shall be conducted in all respects as a de novo trial, or
arbitration, on the merits and Indemnitee shall not be prejudiced by reason of
that adverse determination. In any judicial proceeding or arbitration commenced
pursuant to this Section 13 the Company shall have the burden of proving
Indemnitee is not entitled to indemnification or advancement of Expenses, as the
case may be, and the Company may not refer to or introduce into evidence any
determination pursuant to Section 11(a) of this Agreement adverse to Indemnitee
for any purpose. If Indemnitee commences a judicial proceeding or arbitration
pursuant to this Section 13, Indemnitee shall not be required to reimburse the
Company for any advances pursuant to Section 9 until a final determination is
made with respect to Indemnitee's entitlement to indemnification (as to which
all rights of appeal have been exhausted or lapsed).

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                  (c)      If a determination shall have been made pursuant to
Section 11(a) of this Agreement that Indemnitee is entitled to indemnification,
the Company shall be bound by such determination in any judicial proceeding or
arbitration commenced pursuant to this Section 13, absent (i) a misstatement by
Indemnitee of a material fact, or an omission of a material fact necessary to
make Indemnitee's statement not materially misleading, in connection with the
request for indemnification or (ii) a prohibition of such indemnification under
applicable law.

                  (d)      In the event that Indemnitee, pursuant to this
Section 13, seeks a judicial adjudication of or an award in arbitration to
enforce his or her rights under, or to recover damages for breach of, this
Agreement, Indemnitee shall be entitled to recover from the Company, and shall
be indemnified by the Company against, any and all Expenses actually and
reasonably incurred by him or her in such judicial adjudication or arbitration.
If it shall be determined in said judicial adjudication or arbitration that
Indemnitee is entitled to receive part but not all of the indemnification or
advancement of Expenses sought, Indemnitee shall be entitled to recover from the
Company, and shall be indemnified by the Company against, any and all Expenses
reasonably incurred by Indemnitee in connection with such judicial adjudication
or arbitration.

                  (e)      The Company shall be precluded from asserting in any
judicial proceeding or arbitration commenced pursuant to this Section 13 that
the procedures and presumptions of this Agreement are not valid, binding and
enforceable and shall stipulate in any such court or before any such arbitrator
that the Company is bound by all the provisions of this Agreement.

                  (f)      The Company shall indemnify Indemnitee to the fullest
extent permitted by law against all Expenses and, if requested by Indemnitee,
shall (within ten (10) days after the Company's receipt of such written request)
advance such Expenses to Indemnitee, which are incurred by Indemnitee in
connection with any judicial proceeding or arbitration brought by Indemnitee for
(i) indemnification or advances of Expenses by the Company under this Agreement
or any other agreement or provision of the Company's certificate of
incorporation or bylaws now or hereafter in effect or (ii) recovery or advances
under any insurance policy maintained by any person for the benefit of
Indemnitee, regardless of whether Indemnitee ultimately is determined to be
entitled to such indemnification, advance or insurance recovery, as the case may
be.

         14.      NON-EXCLUSIVITY; SURVIVAL OF RIGHTS; INSURANCE; SUBROGATION.

                  (a)      The rights of indemnification and to receive
advancement of Expenses as provided by this Agreement shall not be deemed
exclusive of any other rights to which Indemnitee may at any time be entitled
under applicable law, the Company's certificate of incorporation, the Company's
bylaws, any agreement, a vote of stockholders, a resolution of directors or
otherwise. No amendment, alteration or repeal of this Agreement or of any
provision hereof shall limit or restrict any right of Indemnitee under this
Agreement in respect of any action taken or omitted by such Indemnitee in his
Corporate Status prior to such amendment, alteration or repeal. To the extent
that a change in Delaware law, whether by statute or judicial decision, permits
greater indemnification or advancement of Expenses than would be afforded
currently under the Company's bylaws and this Agreement, it is the intent of the
parties hereto

                                       11

<PAGE>

that Indemnitee shall enjoy by this Agreement the greater benefits so afforded
by such change. No right or remedy herein conferred is intended to be exclusive
of any other right or remedy, and every other right and remedy shall be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law, in equity or otherwise. The assertion or
employment of any right or remedy hereunder or otherwise, shall not prevent the
concurrent assertion or employment of any other right or remedy.

                  (b)      To the extent that the Company maintains an insurance
policy or policies providing liability insurance for directors, officers,
trustees, partners, managing members, fiduciaries, employees or agents of the
Company or of any other Enterprise which such person serves at the request of
the Company, Indemnitee shall be covered by such policy or policies in
accordance with its or their terms to the maximum extent of the coverage
available for any such director, trustee, partner, managing member, fiduciary,
officer, employee or agent under such policy or policies. If, at the time the
Company receives notice from any source of a Proceeding as to which Indemnitee
is a party or a participant (as a witness or otherwise), the Company has
director and officer liability insurance in effect, the Company shall give
prompt notice of such Proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf
of Indemnitee, all amounts payable as a result of such Proceeding in accordance
with the terms of such policies.

                  (c)      In the event of any payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all papers required and take all
action necessary to secure such rights, including execution of such documents as
are necessary to enable the Company to bring suit to enforce such rights.

                  (d)      The Company shall not be liable under this Agreement
to make any payment of amounts otherwise indemnifiable hereunder (or for which
advancement is provided hereunder) if and to the extent that Indemnitee has
otherwise actually received such payment under any insurance policy, contract,
agreement or otherwise.

                  (e)      The Company's obligation to indemnify or advance
Expenses hereunder to Indemnitee who is or was serving at the request of the
Company as a director, officer, trustee, partner, managing member, fiduciary,
employee or agent of any other Enterprise shall be reduced by any amount
Indemnitee has actually received as indemnification or advancement of expenses
from such Enterprise.

         15.      DURATION OF AGREEMENT. This Agreement shall continue until and
terminate upon the later of: (a) ten (10) years after the date that Indemnitee
shall have ceased to serve as a director or officer of the Company or as a
director, officer, trustee, partner, managing member, fiduciary, employee or
agent of any other corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise which Indemnitee served at the request of the
Company; or (b) one (1) year after the final termination of any Proceeding
(including any rights of appeal thereto) then pending in respect of which
Indemnitee is granted rights of indemnification or advancement of Expenses
hereunder and of any Proceeding commenced by Indemnitee pursuant

                                       12

<PAGE>

to Section 13 of this Agreement relating thereto (including any rights of appeal
of any Section 13 Proceeding).

         16.      SEVERABILITY. If any provision or provisions of this Agreement
shall be held to be invalid, illegal or unenforceable for any reason whatsoever:
(a) the validity, legality and enforceability of the remaining provisions of
this Agreement (including, without limitation, each portion of any Section of
this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that is not itself invalid, illegal or unenforceable) shall not
in any way be affected or impaired thereby and shall remain enforceable to the
fullest extent permitted by law; (b) such provision or provisions shall be
deemed reformed to the extent necessary to conform to applicable law and to give
the maximum effect to the intent of the parties hereto; and (c) to the fullest
extent possible, the provisions of this Agreement (including, without
limitation, each portion of any Section of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that is not itself
invalid, illegal or unenforceable) shall be construed so as to give effect to
the intent manifested thereby.

         17.      ENFORCEMENT AND BINDING EFFECT.

                  (a)      The Company expressly confirms and agrees that it has
entered into this Agreement and assumed the obligations imposed on it hereby in
order to induce Indemnitee to serve as a director or officer of the Company, and
the Company acknowledges that Indemnitee is relying upon this Agreement in
serving as a director or officer of the Company.

                  (b)      This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and
supersedes all prior agreements and understandings, oral, written and implied,
between the parties hereto with respect to the subject matter hereof, including
that certain Indemnification Agreement, dated _____________, between the Company
and Indemnitee.

                  (c)      The indemnification and advancement of expenses
provided by or granted pursuant to this Agreement shall apply to Indemnitee's
service as an officer, director or key employee of the Company prior to the date
of this Agreement.

                  (d)      The indemnification and advancement of expenses
provided by or granted pursuant to this Agreement shall continue as to a person
who has ceased to be a director, officer, employee or agent and shall inure to
the benefit of the heirs, executors and administrators of such a person.

         18.      MODIFICATION AND WAIVER. No supplement, modification or
amendment of this Agreement shall be binding unless executed in writing by the
parties hereto. No waiver of any of the provisions of this Agreement shall be
deemed or shall constitute a waiver of any other provisions of this Agreement
nor shall any waiver constitute a continuing waiver.

         19.      NOTICE BY INDEMNITEE. Indemnitee agrees promptly to notify the
Company in writing upon being served with any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding
or matter which may be subject to

                                       13

<PAGE>

indemnification or advancement of Expenses covered hereunder. The failure of
Indemnitee to so notify the Company shall not relieve the Company of any
obligation which it may have to Indemnitee under this Agreement or otherwise.

         20.      NOTICES. All notices, requests, demands and other
communications under this Agreement shall be in writing and shall be deemed to
have been duly given (a) if delivered by hand and receipted for by the party to
whom said notice or other communication shall have been directed or (b) mailed
by certified or registered mail with postage prepaid, on the third business day
after the date on which it is so mailed:

                  (a)      If to Indemnitee, at the address indicated on the
signature page of this Agreement, or such other address as Indemnitee shall
provide in writing to the Company.

                  (b)      If to the Company to:

                                    CancerVax Corporation
                                    2110 Rutherford Road
                                    Carlsbad, California 92008
                                    Attn.: General Counsel

or to any other address as may have been furnished to Indemnitee in writing by
the Company.

         21.      CONTRIBUTION. To the fullest extent permissible under
applicable law, if the indemnification provided for in this Agreement is
unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of
indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee,
whether for judgments, fines, penalties, excise taxes, amounts paid or to be
paid in settlement and/or for Expenses, in connection with any claim relating to
an indemnifiable event under this Agreement, in such proportion as is deemed
fair and reasonable in light of all of the circumstances of such Proceeding in
order to reflect: (i) the relative benefits received by the Company and
Indemnitee as a result of the event(s) and/or transaction(s) giving rise to such
Proceeding; and/or (ii) the relative fault of the Company (and its directors,
officers, employees and agents) and Indemnitee in connection with such event(s)
and/or transaction(s).

         22.      APPLICABLE LAW AND CONSENT TO JURISDICTION. This Agreement and
the legal relations among the parties shall be governed by, and construed and
enforced in accordance with, the laws of the State of Delaware, without regard
to its conflict of laws rules. Except with respect to any arbitration commenced
by Indemnitee pursuant to Section 13(a) of this Agreement, the Company and
Indemnitee hereby irrevocably and unconditionally (i) agree that any action or
proceeding arising out of or in connection with this Agreement shall be brought
only in the Chancery Court of the State of Delaware (the "Delaware Court"), and
not in any other state or federal court in the United States of America or any
court in any other country, (ii) consent to submit to the exclusive jurisdiction
of the Delaware Court for purposes of any action or proceeding arising out of or
in connection with this Agreement, (iii) appoint, to the extent such party is
not a resident of the State of Delaware, irrevocably Corporation Service
Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808, as its
agent in the State of Delaware as such party's agent for acceptance of legal
process in connection with any

                                       14

<PAGE>

such action or proceeding against such party with the same legal force and
validity as if served upon such party personally within the State of Delaware,
(iv) waive any objection to the laying of venue of any such action or proceeding
in the Delaware Court and (v) waive, and agree not to plead or to make, any
claim that any such action or proceeding brought in the Delaware Court has been
brought in an improper or inconvenient forum.

         23.      IDENTICAL COUNTERPARTS. This Agreement may be executed in one
or more counterparts, each of which shall for all purposes be deemed to be an
original but all of which together shall constitute one and the same Agreement.
Only one such counterpart signed by the party against whom enforceability is
sought needs to be produced to evidence the existence of this Agreement.

         24.      MISCELLANEOUS. Use of the masculine pronoun shall be deemed to
include usage of the feminine pronoun where appropriate. The headings of the
sections and paragraphs of this Agreement are inserted for convenience only and
shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       15

<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Agreement to be signed
as of the day and year first above written.

CANCERVAX CORPORATION,                       INDEMNITEE
a Delaware corporation

By: ____________________________             ________________________________
Name: __________________________                     [NAME]
Title: _________________________

                                             Address: _______________________
                                             ________________________________
                                             ________________________________

                                       16
<PAGE>
Schedule to Exhibit 10.09

The preceding form of Indemnification Agreement will be entered into between the
Company and the following individuals to be effective upon completion of the
offering:

David F. Hale
Martin A. Mattingly
Hazel M. Aker
William R. LaRue
John Petricciani
Debra J. Arnold
Guy Gammon
Robert L. Jones
Dennis E. Van Epps
Ivor Royston
Michael G. Carter
Cam L. Garner
Robert E. Kiss
James Clayburn La Force, Jr.
Donald L. Morton
Barclay A. Phillips
Phillip M. Schneider
Gail S. Schoettler<PAGE>

                                                                   Exhibit 10.41

                              CANCERVAX CORPORATION

                           THIRD AMENDED AND RESTATED
                             STOCKHOLDERS' AGREEMENT

                                 AUGUST 13, 2003

<PAGE>

                           THIRD AMENDED AND RESTATED
                             STOCKHOLDERS' AGREEMENT

         This THIRD AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT (this
"AGREEMENT") is dated as of the 13th day of August, 2003 (the "EFFECTIVE DATE"),
and is entered into by and among CANCERVAX CORPORATION, a Delaware corporation
(the "COMPANY"), THE DONALD L. MORTON FAMILY TRUST created under trust dated
June 2, 1989 (the "MORTON FAMILY TRUST"), the DONALD L. MORTON, M.D., GRANTOR
RETAINED ANNUITY TRUST dated September 6, 2002 (the "MORTON ANNUITY TRUST" and
collectively, with the Morton Family Trust, the "MORTON TRUST"), ONCOVAC, INC.,
a California corporation ("ONCOVAC" and collectively, with the Morton Trust, the
"MORTON ENTITIES"), the investors listed on Exhibit A hereto (each, an
"INVESTOR" and collectively, the "INVESTORS") and JOHN WAYNE CANCER INSTITUTE, a
California non-profit corporation ("JWCI"), with respect to Sections 4, 6, 7, 8
and 9 only.

         This Agreement supercedes and replaces that certain Second Amended and
Restated Stockholders' Agreement, effective as of March 15, 2002, by and among
the Company, certain of the Morton Entities, JWCI and the other parties named
therein the ("PRIOR AGREEMENT").

                                    RECITALS

         A.       The Morton Trust is the beneficial owner of 20,076,531 shares
of the Company's Junior Preferred Stock ("JUNIOR PREFERRED STOCK") (such number
of shares of Junior Preferred Stock including any shares of the Company's Common
Stock ("COMMON STOCK") issuable upon conversion thereof, being referred to as
the "MORTON JUNIOR SHARES"). The Morton Entities are the beneficial owners of
2,437,993 shares of the Company's Series A Preferred Stock ("SERIES A PREFERRED
STOCK") (such number of shares of Series A Preferred Stock, including any shares
of Common Stock issuable upon conversion thereof, being referred to herein as
the "MORTON A SHARES"). The Morton Junior Shares and the Morton A Shares (as
adjusted for stock splits, stock dividends, recapitalizations and the like with
respect to such shares) are collectively referred to as the "STOCK."

         B.       The Prior Agreement provides that an amendment or modification
to the Prior Agreement may be effected by a written instrument executed by (i)
the Company, (ii) the Morton Family Trust, and (iii) the Investors holding not
less than sixty percent (60%) of the outstanding Series A Preferred Stock and
the Series B Preferred Stock (or any shares of Common Stock issued or issuable
upon conversion thereof), voting together as a single class.

         C.       The undersigned Investors constitute holders of not less than
sixty percent (60%) of the outstanding Series A Preferred Stock and Series B
Preferred Stock (or any shares of Common Stock issued or issuable upon the
conversion thereof), voting together as a single class, and, therefore, are
entitled to bind all other holders of Series A Preferred Stock and Series B
Preferred Stock who are parties to the Prior Agreement.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the mutual promises,
representations, warranties, covenants and conditions set forth in this
Agreement, the parties hereby agree as follows:

<PAGE>

         1.       Restrictions on Transfer. Except as permitted by the terms of
this Agreement, no Morton Entity may make any sale, exchange, transfer,
assignment, gift, pledge, encumbrance, hypothecation or alienation of any shares
of Stock, or any interest in such shares, whether voluntarily or involuntarily
or by operation of law (hereinafter collectively referred to as a "TRANSFER").
Furthermore, except for transfers of the Morton Junior Shares to the spouse,
lineal descendant or antecedent, father, mother, brother, sister, child, adopted
child or grandchild or adopted grandchild of Donald L. Morton, M.D. ("MORTON")
or Morton's spouse or the spouse of any child, adopted child, grandchild or
adopted grandchild of Morton or Morton's spouse, or any trust for the benefit of
Morton or any of the foregoing for the primary purpose of estate or tax
planning, the Morton Trust shall not transfer any Morton Junior Shares which
shall be subject to a prohibition on transfer (the "TRANSFER RESTRICTIONS")
until such Transfer Restrictions terminate as set forth in Section 2 below. Any
Morton Junior Shares subject to Transfer Restrictions are hereinafter sometimes
referred to as "RESTRICTED SHARES."

         2.       Transfer Restrictions.

                  (a)      Termination of Transfer Restrictions. The Transfer
Restrictions shall terminate with respect to any and all Morton Junior Shares in
accordance with the following provisions:

                           (i)      As of the effectiveness of this Agreement,
the Transfer Restrictions have lapsed with respect to 14,053,569 of the Morton
Junior Shares held by the Morton Trust.

                           (ii)     The Transfer Restrictions shall lapse with
respect to the remaining Restricted Shares in a series of successive equal
monthly installments of 334,609 shares on the fifteenth (15th) day of each of
the eighteen (18) months after the Effective Date.

                           (iii)    The Transfer Restrictions shall lapse with
respect to any remaining Restricted Shares in the event that (A) Morton dies or
suffers a Permanent Disability (as defined below), (B) the Company receives
approval of a biological license application from the U.S. Food and Drug
Administration ("FDA") for the melanoma vaccine currently under development by
the Company, or a human monoclonal antibody product for the treatment of cancer,
or (C) a Change of Control (as defined below) occurs. "PERMANENT DISABILITY"
means the inability of Morton to engage in any substantially gainful activity by
reason of any medically determinable physical or mental impairment expected to
result in death or to be of continuous duration of twelve months or more.
"CHANGE OF CONTROL" means consummation of either (a) a merger or consolidation
of the Company with or into any other entity or person, or (b) a sale, lease,
exchange, or other transfer in one transaction or series of related transactions
of all or substantially all of the Company's outstanding securities or all or
substantially all of the Company's assets; provided, however, that a Change of
Control shall not include a Related Party Transaction. "RELATED PARTY
TRANSACTION" means (i) a merger or consolidation of the Company in which the
holders of the voting securities of the Company immediately prior to the merger
or consolidation hold at least a majority of the voting securities in the
Successor Entity immediately after the merger or consolidation, (ii) a sale,
lease, exchange, or other transaction in one transaction or a series of related
transactions, of all or substantially all of the Company's assets to a wholly
owned subsidiary entity, (iii) a reincorporation of the Company, or (iv) a
transaction undertaken for the sole purpose of creating a holding company that
will be owned in

                                        3

<PAGE>

substantially the same proportion by the persons who held the Company's
securities immediately before such transaction. "SUCCESSOR ENTITY" means the
surviving entity, the successor entity, or its parent entity, as applicable.

                  All Morton Junior Shares as to which the Transfer Restrictions
lapse shall, however, continue to be subject to all the terms of this Agreement
(other than this Section 2), including the right of first refusal contained in
Section 3 and the co-sale rights contained in Section 4.

                  (b)      Additional Stock or Substituted Securities. In the
event of any stock dividend, stock split, recapitalization or other change
affecting the Company's outstanding Common Stock as a class effected without
receipt of consideration, then any new, substituted or additional securities or
other property (including money paid other than as a regular cash dividend)
which is by reason of any such transaction distributed with respect to the
Morton Junior Shares shall be immediately subject to the Transfer Restrictions,
but only to the extent the Morton Junior Shares are at the time covered by such
restrictions. Appropriate adjustments to reflect the distribution of such
securities or property shall be made to the number of Morton Junior Shares at
the time subject to the Transfer Restrictions hereunder in order to reflect the
effect of any such transaction upon the Company's capital structure.

         3.       Right of First Refusal.

                  (a)      Notice to the Company and the Investors.

                           (i)      In the event any Morton Entity desires to
transfer any Stock (the "MORTON TRANSFEROR") other than as specifically provided
in Sections 2 or 6, the Morton Transferor must deliver a notice in writing by
certified mail ("NOTICE") to the Company stating (A) the Morton Transferor's
bona fide intention to sell or transfer such shares, (B) the number of such
shares to be sold or transferred, (C) the price, if any, for which it proposes
to sell or transfer such shares, and (D) the name of the proposed purchaser or
transferee.

                           (ii)     In the event the proposed transfer is
partially or completely in exchange for assets other than cash, then such assets
shall be deemed to have a cash value in the amount determined by the Board in
its sole good faith opinion, in which case such cash value ascertained by the
Board, when added to any cash to be exchanged and then divided by the number of
shares of Stock to be transferred, shall be deemed the price per share set forth
in the Notice. In the event of a gift, property settlement or other transfer in
which the proposed purchaser or transferee is not paying the full price for the
Stock, which transfer is not otherwise exempted from the terms of Sections 3 and
4 hereof, the price shall be deemed to be the fair market value of the Stock as
determined in good faith by the Board.

                  (b)      Company Right of First Refusal. The Company shall
have an exclusive, irrevocable option (the "COMPANY OPTION"), at any time within
thirty (30) days of receipt of the Notice, to purchase some or all of the Stock
to which the Notice refers at the price per share specified in the Notice (as
determined in Section 3(a)). The Company shall exercise the Company Option by
written notice signed by an officer of the Company and delivered or mailed to
the Morton Transferor (the "COMPANY SETTLEMENT NOTICE"), which notice shall
specify the

                                        4

<PAGE>

time, place and date for settlement of such purchase. Any exercise of the
Company Option shall require the approval of the Company's Board, including one
director elected solely by the holders of Series A Preferred Stock and one
director elected solely by the holders of Series B Preferred Stock.

                  (c)      Company Settlement. Within ten (10) days of receipt
of the Company Settlement Notice, the Morton Transferor must deliver to the
Company all certificates for the Stock being acquired by the Company which are
not already in the Company's custody, together with proper assignments in blank
of the Stock and with such other documents as may be required by the Company to
provide reasonable assurance that each necessary endorsement is genuine and
effective, and the Company must thereupon deliver to the Morton Transferor full
cash payment for the Stock being acquired, provided that if the terms of payment
set forth in the Notice were other than cash against delivery, the Company shall
pay for said shares in accordance with Section 3(a)(ii).

                  (d)      Investor Right of First Refusal. In the event that
the Company does not exercise the Company Option as to all the shares to be sold
or transferred in accordance with Section 3 hereof, the Company shall not later
than thirty (30) days from the date of receipt of the Notice give written notice
to the Investors of the Company's nonexercise (or partial exercise) of the
Company Option, which notice shall enclose the Notice and the details of the
Company's partial exercises (if any), and shall specify the procedures by which
each Investor may exercise the option to purchase not more than its Pro Rata
Share (as defined in Section 3(f) below) of the remaining shares of Stock (the
"INVESTOR OPTION"). For thirty (30) calendar days following the expiration of
the Company Option, each Investor may exercise its Investor Option at the same
price and upon the same terms as set forth in the Notice. Any Investor desiring
to exercise its Investor Option shall deliver to the Company and to the Morton
Transferor a written notice of election to purchase the shares with respect to
which the Investor Option is to be exercised. The Company shall, within three
(3) days after the end of such thirty (30) day period, inform each Investor
purchasing all the shares available to such Investor (a "FULLY-EXERCISING
INVESTOR") of any other Investor's failure to do likewise. During the ten (10)
day period commencing after receipt of such information, each Fully-Exercising
Investor shall be entitled to give written notice to the Company and the Morton
Transferor of its election (the "INVESTOR OVER-ALLOTMENT OPTION") to purchase
that portion of the shares for which Investors were entitled to subscribe but
which were not subscribed for by the Investors equal to the proportion that the
Pro Rata Share of such Fully-Exercising Investor bears to the Pro Rata Shares of
all of the Fully-Exercising Investors who wish to purchase some of the
unsubscribed shares, or such other proportions as the Fully-Exercising Investors
shall determine.

                  (e)      Investor Settlement. If the Company Option, the
Investor Option and the Investor Over-Allotment Option (collectively, the
"OPTIONS") are exercised for all of the Stock in the Notice, promptly upon
expiration of the Options, the Company shall deliver a notice in writing to the
Morton Transferor and each Investor and/or assignee who elected to acquire a
portion of the Stock subject to the Investor Option (the "INVESTOR SETTLEMENT
NOTICE") setting forth the number of shares of Stock to be sold to each Investor
and/or assignee and the price thereof. Within ten (10) days of receipt of the
Investor Settlement Notice, the Morton Transferor must deliver to the Company
any certificates for the Stock being acquired by the Investors and/or assignees
which are not already in the Company's custody, together with proper assignments
in

                                        5

<PAGE>

blank of the Stock and with such other documents as may be required by the
Company to provide reasonable assurance that each necessary endorsement is
genuine and effective. Within ten (10) days of receipt of the Investor
Settlement Notice, each Investor and/or assignee acquiring a portion of the
Stock must deliver to the Company (a) full cash payment for the portion of the
subject Stock being so acquired, provided that if the terms of payment set forth
in the Notice were other than cash against delivery, the Investors electing to
acquire a portion of the subject Stock and/or their assignees shall pay for such
shares in accordance with Section 3(a)(ii); and, if applicable, (b) evidence
satisfactory to the Company that such assignee has become a party to this
Agreement. The Company shall thereafter promptly remit full payment for the
Stock acquired hereby to the Morton Transferor and deliver the new or assigned
certificates to the Investors and/or assignees, as appropriate. In the event
that the Options are not exercised for all of the Stock in the Notice, the
Morton Transferor shall have sixty (60) days to (subject to the right of co-sale
in Section 4) transfer all of the Stock as specified in the Notice.

                  (f)      Determination of Pro Rata Share. For purposes of this
Section 3, each Investor's "PRO RATA SHARE" is the ratio of (i) the total number
of shares of Common Stock, Series A Preferred Stock, Series B Preferred Stock
and Series C Preferred Stock held by such Investor as of the date of the Notice
(on an as-converted to Common Stock basis) to (ii) the total aggregate shares of
Common Stock, Series A Preferred Stock, Series B Preferred Stock and Series C
Preferred Stock held by all Investors as of such date (on an as-converted to
Common Stock basis).

                  (g)      Recapitalization/Merger. In the event of any stock
dividend, stock split, recapitalization or other transaction affecting the
Company's outstanding Common Stock as a class effected without receipt of
consideration, then any new, substituted or additional securities or other
property which is by reason of such transaction distributed with respect to the
Stock shall be immediately subject to the Company Option and the Investor Option
hereunder, but only to the extent the Stock is at the time covered by such
right.

         4.       Co-Sale Rights in Sales by a Morton Entity.

                  (a)      Morton Co-Sale Notice. In the event that the Company
and/or the Investors have waived or failed to timely exercise the Options to
purchase all of the Stock proposed to be transferred by a Morton Transferor, the
Company shall deliver, promptly upon expiration of the Options, a notice in
writing to each Investor and JWCI (the "MORTON CO-SALE NOTICE") reiterating the
names of the prospective transferee or transferees, the number of shares of
Stock proposed to be transferred, and the price per share at which such shares
are proposed to be transferred.

                  (b)      Grant of Co-Sale Rights. Each Investor and JWCI shall
have the right, exercisable upon written notice to the Morton Transferor within
fifteen (15) business days after receipt of the Morton Co-Sale Notice, to
participate in the sale of the Stock on the same terms and conditions as those
set forth in the Morton Co-Sale Notice. To the extent one or more of the
Investors or JWCI exercise such right of participation, the number of shares
that the Morton Transferor may sell in the transaction shall be correspondingly
reduced. The right of participation of each of the Investors and JWCI shall be
subject to the terms and conditions set forth in this Section:

                                        6

<PAGE>

                           (i)      Each Investor and JWCI shall be deemed to
own the number of shares of Common Stock held of record by such Investor or
JWCI, as applicable, plus the number of shares of Common Stock which are
issuable upon conversion of any shares of the Company's Preferred Stock
("PREFERRED STOCK") held by such Investor or JWCI.

                           (ii)     Each Investor and JWCI may sell all or any
part of a number of shares equal to the product obtained by multiplying (A) the
aggregate number of shares of Stock covered by the Morton Co-Sale Notice by (B)
a fraction, the numerator of which is the number of shares of Common Stock and
the number of shares of Common Stock which are issuable upon conversion of
shares of Preferred Stock at the time owned by such Investor, or JWCI, as
appropriate, and the denominator of which is the combined number of shares of
Common Stock and the number of shares of Common Stock which are issuable upon
conversion of shares of Preferred Stock at the time owned by the Morton
Transferor and all of the Investors and JWCI.

                           (iii)    If any Investor or JWCI fails to elect to
fully participate in the Morton Transferor sale pursuant to this Section 4, the
Morton Transferor shall give notice of such failure to each of the Investors and
JWCI who did so elect (the "PARTICIPANTS"). Such notice may be made by telephone
if confirmed in writing within two days. The Participants shall have five days
from the date such notice was given to agree to sell their pro rata share of the
unsold portion. For purposes of this paragraph, a Participant's pro rata share
shall be the ratio of (x) the number of shares of Common Stock and the number of
shares of Common Stock which are issuable upon conversion of shares of Preferred
Stock at the time owned by such Participant to (y) the combined number of shares
of Common Stock and the number of shares of Common Stock which are issuable upon
conversion of shares of Preferred Stock at the time owned by the Morton
Transferor and all of the Participants.

                           (iv)     In the event that the Participants elect to
participate with respect to all or a portion of their respective pro rata share
of the Morton Transferor sale made available to them pursuant to subsection
4(b)(iii) above, each Participant may effect its participation in the sale by
delivering to the Morton Transferor for transfer to the purchase offeror one or
more certificates, properly endorsed for transfer, which represent:

                                    (A)      the number of shares of Common
Stock which the party elects to sell pursuant to this Section 4(b); or

                                    (B)      that number of shares of the
Company's Preferred Stock which is at such time convertible into the number of
shares of Common Stock which the party has elected to sell pursuant to this
Section 4(b); provided, however, that if the purchase offeror objects to the
delivery of Preferred Stock in lieu of Common Stock, the party may convert and
deliver Common Stock.

                  (c)      Payment of Proceeds. The stock certificates which the
Participants deliver to the Morton Transferor pursuant to Section 4(b) shall be
transferred by the Morton Transferor to the purchase offeror in consummation of
the sale of the Stock pursuant to the terms and conditions specified in the
Morton Co-Sale Notice, and the Morton Transferor shall promptly thereafter remit
to each Investor and JWCI that portion of the sale proceeds to which the
Participant is entitled by reason of its participation in such sale. To the
extent that the purchase

                                        7

<PAGE>

offeror refuses to purchase shares from a Participant exercising its right of
co-sale hereunder, the Morton Transferor shall not sell to such purchase offeror
unless or until, simultaneous with such sale, the Morton Transferor shall
purchase such shares from such Participant on the same terms and conditions
specified in the Morton Co-Sale Notice.

                  (d)      Non-Exercise. The exercise or non-exercise of the
rights of the Investors and JWCI hereunder to participate in one or more sales
of Stock made by a Morton Entity shall not adversely affect their rights to
participate in subsequent Stock sales by such Morton Entity.

                  (e)      Transfer of Stock Upon Failure to Exercise Right of
Co-Sale. If none of the Investors or JWCI elects to participate in the sale of
any of the Stock subject to the Morton Co-Sale Notice, the Morton Transferor
may, not later than sixty (60) days following the Investors' and JWCI's receipt
of the Morton Co-Sale Notice, conclude a transfer of not less than all of the
Stock covered by the Morton Co-Sale Notice on terms and conditions not more
favorable to the transferor than those described in the Morton Co-Sale Notice.
Any proposed transfer on terms and conditions more favorable than those
described in the Morton Co-Sale Notice, as well as any subsequent proposed
transfer of any Stock by the Morton Transferor, shall again be subject to, and
require compliance with, the provisions of Sections 3 and 4 hereof.

         5.       Co-Sale Rights in Sales by Investors.

                  (a)      Investor Co-Sale Notice. In the event that an
Investor (a "TRANSFERRING INVESTOR") desires to transfer any shares of Series A
Preferred Stock (or any shares of Common Stock issued or issuable upon the
conversion thereof) (the "INVESTOR SHARES") other than as specifically provided
in Section 6 below, the Transferring Investor shall deliver a notice in writing
to the Morton Entities (the "INVESTOR CO-SALE NOTICE") stating the names of the
prospective transferee or transferees, the number of Investor Shares proposed to
be transferred and the price per share at which such shares are proposed to be
transferred.

                  (b)      Grant of Co-Sale Rights. The Morton Entities shall
have the right, exercisable upon written notice to the Transferring Investor
within fifteen (15) business days after receipt of the Investor Co-Sale Notice
by the Morton Entities, to participate in the sale of the shares on the same
terms and conditions as those set forth in the Investor Co-Sale Notice. The
right of participation of the Morton Entities shall be subject to the terms and
conditions set forth in this Section:

                           (i)      Each Morton Entity shall be deemed to own
the number of shares of Series A Preferred Stock held of record by such Morton
Entity plus the number of shares of Common Stock held by such Morton Entity
which were issued upon conversion of any shares of Series A Preferred Stock (the
"MORTON CO-SALE SHARES").

                           (ii)     Each Morton Entity may sell all or any part
of a number of shares equal to the product obtained by multiplying (A) the
aggregate number of shares covered by the Investor Co-Sale Notice by (B) a
fraction, the numerator of which is the number of Morton Co-Sale Shares at the
time owned by such Morton Entity and the denominator of which is the combined
number of shares of Series A Preferred Stock and the number of shares of Common

                                        8

<PAGE>

Stock which are issuable upon conversion of shares of Series A Preferred Stock
at the time owned by the Morton Entities and the Transferring Investor.

                           (iii)    If any Morton Entity fails to elect to fully
participate in the Transferring Investor sale pursuant to this Section 5, the
Transferring Investor shall give notice of such failure to any Morton Entity who
did so elect (the "MORTON PARTICIPANTS"). Such notice may be made by telephone
if confirmed in writing within two days. The Morton Participants shall have five
days from the date such notice was given to agree to sell their pro rata share
of the unsold portion. For purposes of this paragraph, a Morton Participant's
pro rata share shall be the ratio of (x) the number of shares of Series A
Preferred Stock and Common Stock (on an as-converted basis) held by such Morton
Participant to (y) the total number of shares of Series A Preferred Stock and
Common Stock (on an as-converted basis) held by the Morton Participants and the
Transferring Investor.

                           (iv)     Each Morton Entity may effect its
participation in the sale by delivering to the Transferring Investor for
transfer to the purchase offeror one or more certificates, properly endorsed for
transfer, which represent the number of shares of Series A Preferred Stock or
Common Stock which such Morton Entity elects to sell pursuant to this Section
5(b).

                  (c)      Payment of Proceeds. The stock certificates which the
Morton Participants deliver to the Transferring Investor pursuant to Section
5(b) shall be transferred by the Transferring Investor to the purchase offeror
in consummation of the sale of the Investor Shares pursuant to the terms and
conditions specified in the Investor Co-Sale Notice, and the Transferring
Investor shall promptly thereafter remit to each Morton Participant that portion
of the sale proceeds to which such Morton Participant is entitled by reason of
its participation in such sale. To the extent that the purchase offeror refuses
to purchase shares from a Morton Participant exercising its right of co-sale
hereunder, the Transferring Investor shall not sell to such purchase offeror
unless or until, simultaneous with such sale, the Transferring Investor shall
purchase such shares from such Morton Participant on the same terms and
conditions specified in the Investor Co-Sale Notice.

                  (d)      Non-Exercise. The exercise or non-exercise of the
rights of the Morton Entities hereunder to participate in one or more sales of
the Investor Shares made by the Investors shall not adversely affect the Morton
Entities' rights to participate in subsequent sales of Investor Shares by the
Investors.

                  (e)      Transfer of Stock Upon Failure to Exercise Right of
Co-Sale. If no Morton Entity elects to participate in the sale of the Investor
Shares subject to the Investor Co-Sale Notice, the Transferring Investor may,
not later than sixty (60) days following the Morton Entities' receipt of the
Investor Co-Sale Notice, conclude a transfer of not less than all of the
Investor Shares covered by the Investor Co-Sale Notice on terms and conditions
not more favorable to the transferor than those described in the Investor
Co-Sale Notice. Any proposed transfer on terms and conditions more favorable
than those described in the Investor Co-Sale Notice, as well as any subsequent
proposed transfer of any Investor Shares by the Transferring Investor, shall
again be subject to, and require compliance with, the provisions of Section 5
hereof.

                                        9

<PAGE>

         6.       Exempt Transfers.

                  (a)      Permitted Transactions by a Morton Entity.
Notwithstanding the foregoing, the rights of first refusal and co-sale rights of
the Company and the Investors set forth in Sections 3 and 4 and JWCI's co-sale
rights set forth in Section 4 shall not apply to (i) a gratuitous transfer of
the Stock made to a partnership or corporation or trust that is controlled by
Morton or a spouse or issue, including adopted children, of Morton, or to a
non-profit organization (or any employee thereof, provided that such transfers
are not made to any service providers of the Company and do not detrimentally
impact the Company as relates to FDA or NIH conflict of interest guidelines),
(ii) a transfer of title to the Stock effected pursuant to Morton's will or the
laws of intestate succession, (iii) transfers of the Stock to Morton's spouse,
lineal descendant or antecedent, father, mother, brother, sister, child, adopted
child or grandchild or adopted grandchild of Morton or Morton's spouse or the
spouse of any child, adopted child, grandchild or adopted grandchild of Morton
or Morton's spouse, or any trust for the benefit of Morton or any of the
foregoing, or (iv) as to the Morton A Shares only, the pledge of such shares to
an institutional investor that is reasonably acceptable to the Company;
provided, however, that each such transfer must be made in accordance with
applicable securities laws and the transferee shall furnish the Company and the
Investors and JWCI with written agreements, documents and opinions, in form and
substance reasonably acceptable to the Company and its counsel, to be bound by
and comply with all provisions of this Agreement and any documents or agreements
entered into in connection herewith. Such transferred Stock shall remain "STOCK"
hereunder, and such transferee shall be treated as a "MORTON ENTITY" for the
purposes of this Agreement.

                  (b)      Indemnification by Morton. Each of the Morton
Entities agrees to indemnify, defend, and hold harmless the Company and the
Investors and each of their respective officers, directors, stockholders,
affiliates, employees and agents against any and all threatened or pending
claims, suits, actions, losses and damages of any kind (including, without
limitation, all costs and expenses and reasonable attorneys' fees) or
proceedings brought against the Company arising in any manner arising from a
transfer pursuant to subsection 6(a) above.

                  (c)      Permitted Transactions by Investors. Notwithstanding
the foregoing, the co-sale rights of the Morton Entities set forth in Section 5
shall not apply to a gratuitous transfer of the Investor Shares made to a
transferee or assignee who is a general or limited partner or member or
stockholder (or retired general or limited partner or member) of an Investor or
the estate of such a partner or member (or retired general or limited or
member), or to any fund, partnership, corporation or company that is an
affiliate of an Investor or a spouse or issue, including adopted children, of an
Investor or to a trust for the exclusive benefit of any of the foregoing persons
or to a beneficial owner of Investor Shares for which Athenian Venture Partners
II L.P. serves as nominee, provided, however, that the transferee shall furnish
the Company with a written agreement to be bound by and comply with all
provisions of this Agreement; provided, further, that the foregoing co-sale
rights of the Morton Entities set forth in Section 5 shall not apply to a
transfer by CancerVax Research Foundation of its Investor Shares to any
tax-exempt, public charitable organization in order to comply with the minimum
distribution requirements for private foundations under 26 U.S.C. Section 4942.
Such transferred Investor Shares shall remain "INVESTOR SHARES" hereunder, and
such transferee shall be treated as an "INVESTOR" for the purposes of this
Agreement.

                                       10

<PAGE>

         7.       Prohibited Transfers.

                  (a)      Grants.

                           (i)      Investor Grant. In the event a Morton Entity
should sell any Stock in contravention of the participation rights of the
Investors and JWCI under this Agreement as described in Section 4 above (an
"MORTON PROHIBITED TRANSFER"), the Investors and JWCI shall have, in addition to
such other remedies as may be available at law, in equity or hereunder, the put
option provided in Section 7(b).

                           (ii)     Morton Grant. In the event an Investor
should sell any Investor Shares in contravention of the participation rights of
the Morton Entities under this Agreement as described in Section 5 above (an
"INVESTOR PROHIBITED TRANSFER"), the Morton Entities shall have, in addition to
such other remedies as may be available at law, in equity or hereunder, the put
option provided in Section 7(c).

                  (b)      Investor/JWCI Put Option. In the event of a Morton
Prohibited Transfer, each Investor and JWCI shall have the option to sell to
such Morton Entity a number of shares of Common Stock (either directly or
through delivery of Series A Preferred Stock, Series B Preferred Stock or Series
C Preferred Stock, or, in the case of JWCI, Junior Preferred Stock) equal to the
number of shares which such Investor or JWCI, as the case may be, would have
been entitled to sell had the Morton Prohibited Transfer been effected in
accordance with Section 4 hereof, on the following terms and conditions:

                           (i)      The price per share at which the shares are
to be sold to the Morton Entity shall be equal to the price per share paid to
such Morton Entity by the third-party purchaser or purchasers of the Stock in
the Morton Prohibited Transfer. Such Morton Entity shall also reimburse each
Investor and JWCI for any and all reasonable fees and expenses, including
reasonable legal fees and expenses, incurred pursuant to the exercise or the
attempted exercise of the Investors' and JWCI's rights under Section 4 hereof.

                           (ii)     The Investors and JWCI shall deliver to such
Morton Entity, within ninety (90) days after the later of the dates on which the
Investors and JWCI received notice from such Morton Entity or otherwise become
aware of the Morton Prohibited Transfer, the certificate or certificates
representing shares to be sold, each certificate to be properly endorsed for
transfer.

                           (iii)    Such Morton Entity shall, upon receipt of
the certificates for the repurchased shares, pay the aggregate Section 7(b)(i)
purchase price therefor, by certified check or bank draft made payable to the
order of the Investors and JWCI exercising such option, and shall reimburse such
parties for any additional reasonable expenses, including reasonable legal fees
and expenses, incurred in effecting such purchase and resale.

                  (c)      Morton Put Option. In the event of an Investor
Prohibited Transfer, each Morton Entity shall have the option to sell to the
transferring Investor a number of shares of Common Stock (either directly or
through delivery of Series A Preferred Stock) equal to the number of shares
which such Morton Entity would have been entitled to sell had the Investor

                                       11

<PAGE>

Prohibited Transfer been effected in accordance with Section 5 hereof, on the
following terms and conditions:

                           (i)      The price per share at which the shares are
to be sold to the Investors shall be equal to the price per share paid to the
transferring Investor by the third-party purchaser or purchasers of the Investor
Shares in the Investor Prohibited Transfer. Such transferring Investor shall
also reimburse each Morton Entity for any and all reasonable fees and expenses,
including reasonable legal fees and expenses, incurred pursuant to the exercise
or the attempted exercise of the Morton Entities' rights under Section 5 hereof.

                           (ii)     The Morton Entities shall deliver to the
transferring Investor, within ninety (90) days after the later of the dates on
which a Morton Entity become aware of the Investor Prohibited Transfer, the
certificate or certificates representing shares to be sold, each certificate to
be properly endorsed for transfer.

                           (iii)    The transferring Investor shall, upon
receipt of the certificates for the repurchased shares, pay the aggregate
Section 7(c)(i) purchase price therefor, by certified check or bank draft made
payable to the order of each Morton Entity exercising such option, and shall
reimburse such Morton Entity for any additional reasonable expenses, including
reasonable legal fees and expenses, incurred in effecting such purchase and
resale.

                  (d)      Notwithstanding the foregoing, any attempt by a
Morton Entity to transfer Stock in violation of Sections 3 or 4 hereof or by an
Investor to transfer Investor Shares in violation of Section 5 hereof, whether
voluntary or involuntary, shall be void and the Company agrees it will not
effect such a transfer nor will it treat any alleged transferee as the
stockholder of such shares without the written consent of (i) the holders of at
least sixty percent (60%) of the shares held by the Investors (with respect to a
violation of Sections 3 or 4 hereof) and JWCI (with respect to a violation of
Section 4 hereof) or (ii) Morton (with respect to a violation of Section 5
hereof).

         8.       Termination. Subject to Section 7(d), the right of first
refusal and the co-sale rights of an Investor under Sections 3 and 4 hereof,
JWCI's co-sale rights under Section 4 hereof, the correlative obligations of the
Morton Entities to such Investor and JWCI with respect to its Stock and the
Morton Entities' co-sale rights and correlative obligations under Section 5
hereof shall terminate at such time as such Investor or JWCI shall no longer be
the owner of any shares of the Company's capital stock. Unless sooner terminated
in accordance with the preceding sentence, the rights and obligations under
Sections 3, 4, 5 and 6 hereof shall terminate upon the occurrence of any one of
the following events:

                  (a)      the liquidation, dissolution or indefinite cessation
of the business operations of the Company;

                  (b)      the execution by the Company of a general assignment
for the benefit of creditors or the appointment of a receiver or trustee to take
possession of the property and assets of the Company;

                                       12

<PAGE>

                  (c)      immediately prior to the closing of a bona fide firm
commitment underwritten public offering of the Company's Common Stock registered
under the Securities Act of 1933, as amended, on Form S-1 (or any successor form
designated by the Securities and Exchange Commission) that results in a
post-money valuation of the Company of at least $300,000,000 (based on the
offering price of the Company's Common Stock in such offering and including all
shares of Common Stock outstanding immediately after such offering and all
shares of Common Stock then issuable upon exercise of outstanding options to
purchase or rights to subscribe for Common Stock and conversion of all
convertible securities) and aggregate proceeds to the Company of at least
$50,000,000;

                  (d)      the first date on which shares of the Company's
Common Stock are held of record by more than five hundred (500) persons;

                  (e)      immediately prior to the consummation of a merger,
consolidation, reorganization or other transaction or series of related
transactions resulting in the exchange of outstanding shares of the Company's
securities such that the stockholders of the Company prior to such transaction
owns, directly or indirectly, less than fifty percent (50%) of the voting power
of the surviving entity;

                  (f)      immediately prior to the consummation of a sale,
transfer or other disposition of all or substantially all of the Company's
assets; or

                  (g)      the date on which this Agreement is terminated in
writing by the Company, the Morton Trust, JWCI and the holders of sixty percent
(60%) of the shares held by the Investors.

         9.       Miscellaneous Provisions.

                  (a)      Bank Holding Company Act. The Company agrees to
cooperate and use its reasonable best efforts to take, or cause to be taken, all
reasonably necessary or appropriate action to ensure compliance with any legal
restriction to which any Investor is subject under the Bank Holding Company Act
of 1956, as amended, and the regulations promulgated thereunder.

                  (b)      Stockholder Rights. Until such time as the Company
actually exercises the Company Option and/or the Investors actually exercise the
Investor Option or the Investor Over-Allotment Option, the Morton Entities (or
any successors in interest) shall have all the rights of a stockholder
(including voting and dividend rights) with respect to the Stock subject,
however, to the transfer restrictions of Section 1.

                  (c)      Notice. All notices required or permitted hereunder
shall be in writing and shall be deemed effectively given: (i) upon personal
delivery to the party to be notified; (ii) when sent by confirmed telex or
facsimile if sent during normal business hours of the recipient, if not, then on
the next business day; (iii) five days after having been sent by registered or
certified mail, return receipt requested, postage prepaid; or (iv) one day after
deposit with a nationally recognized overnight courier, specifying next day
delivery, with written verification of receipt. All communications shall be sent
to the address as set forth on the signature page hereof or at

                                       13

<PAGE>

such other address as such party may designate by advance written notice to the
other parties hereto.

                  (d)      Severability. In the event one or more of the
provisions of this Agreement should, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Agreement, and
this Agreement shall be construed and interpreted in such manner as to be
effective and valid under applicable law.

                  (e)      Waiver or Modification. Any amendment or modification
of this Agreement shall be effective only if evidenced by a written instrument
executed by (i) the Morton Trust, (ii) the Company and (iii) Investors, or their
assignees, holding not less than sixty percent (60%) of the Series A Preferred
Stock, Series B Preferred Stock and Series C Preferred Stock, voting together as
a single class; provided, however, that any amendment or modification that
adversely affects JWCI shall require the prior written consent of JWCI.

                  (f)      Governing Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of California as applied
in contracts among California residents entered into and performed entirely
within California.

                  (g)      Attorneys' Fees. In the event of any dispute
involving the terms hereof, the prevailing parties shall be entitled to collect
legal fees and expenses from the other party to the dispute.

                  (h)      Further Assurances. Each party agrees to act in
accordance herewith and not to take any action which is designed to avoid the
intention hereof.

                  (i)      Ownership. The Morton Entities represent and warrant
that they are the sole legal and beneficial owner of the shares of Stock subject
to this Agreement and that no other person or entity has any interest in such
shares. Notwithstanding the foregoing, the parties hereto acknowledge that
Morton's wife may or may not have a community property interest in such shares
(provided, however, any such interest is subject to the terms of the Transaction
Documents (as defined in that certain Series C Preferred Stock Purchase
Agreement, dated as of the date hereof, by and among the Company and certain of
the Investors (the "PURCHASE AGREEMENT")) and that the Morton Family Trust is
the sole shareholder of OncoVac.

                  (j)      Successors and Assigns. This Agreement and the rights
and obligations of the parties hereunder shall inure to the benefit of, and be
binding upon, their respective successors, assigns and legal representatives.

                  (k)      Aggregation of Stock. For the purposes of determining
the availability of any rights under this Agreement, the holdings of transferees
and assignees of an individual or a partnership who are spouses, ancestors,
lineal descendants or siblings of such individual or partners or retired
partners of such partnership (including spouses and ancestors, lineal
descendants and siblings of such partners or spouses who acquire Common Stock by
gift, will or intestate succession) shall be aggregated together with the
individual or partnership, as the case may be, for the purpose of exercising any
rights or taking any action under this Agreement.

                                       14

<PAGE>

                  (l)      Counterparts. This Agreement may be executed in two
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

                  (m)      Separate Counsel. Each Morton Entity acknowledges and
agrees that it has been provided the opportunity and encouraged to consult with
counsel of such its own choosing with respect to this Agreement and that Latham
& Watkins LLP solely represents the interests of the Company and Morrison &
Foerster LLP and Heller Ehrman White & McAuliffe LLP solely represent the
interests of certain of the Investors.

                  (n)      Legend. Each certificate representing (1) shares of
Stock now or hereafter owned by a Morton Entity and (2) Series A Preferred
Stock, Series B Preferred Stock or Series C Preferred Stock (or any shares of
Common Stock issued or issuable upon the conversion thereof) now or hereafter
owned by an Investor shall be endorsed with the following legends:

                           (i)      "THESE SECURITIES HAVE NOT
         BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
         AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED
         OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION
         STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER
         SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE
         COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS
         SOLD PURSUANT TO RULE 144 OF SUCH ACT."

                           (ii)     "THE SALE OR TRANSFER OF THE
         SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO
         THE TERMS AND CONDITIONS OF A CERTAIN STOCKHOLDERS'
         AGREEMENT AMONG THE STOCKHOLDER, THE COMPANY AND CERTAIN
         HOLDERS OF STOCK OF THE COMPANY. COPIES OF SUCH AGREEMENT
         MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF
         THE COMPANY."

                  (o)      Power of Attorney. Pursuant to the Prior Agreement,
Morton's spouse appointed Morton as her true and lawful attorney in fact, for
her and in her name, place and stead, and for her use and benefit, to agree to
any amendment or modification of this Agreement and to execute such further
instruments and take such further actions as may reasonably be necessary to
carry out the intent of this Agreement. Such power of attorney shall remain in
full force and effect, and Morton's agreement to the amendment and restatement
of this Agreement shall be deemed to be binding upon Morton's spouse.

                  (p)      Amendment and Restatement of Prior Agreement. As of
the Effective Date, this Agreement hereby amends, restates and completely
supersedes the Prior Agreement and such agreement shall be terminated, void and
of no further effect as of the Effective Date.

                                       15

<PAGE>

                  (q)      Assignment. Each Investor, JWCI and Morton Entity may
assign its rights under this Agreement to the extent assigned in connection with
a transfer of stock in the Company, to any person or entity; provided, that,
such person or entity is not a direct competitor of the Company; provided,
further, that such transferee shall furnish the Company with written agreements,
documents, and opinions, in form and substance reasonably acceptable to the
Company and its counsel, to be bound by and comply with all provisions of this
Agreement and applicable securities laws; provided, further, that such transfer
of stock is otherwise permitted or not prohibited by the terms of this
Agreement.

                  (r)      Entire Agreement. This Agreement and the documents
referenced herein constitute the entire agreement among the parties with respect
to the subject matter hereof and thereof and supersede all prior agreements and
understandings, both written and oral, among the parties with respect to the
subject matter hereof and thereof, and no party shall be liable or bound to any
other party in any manner by any warranties, representations or covenants except
as specifically set forth herein and therein with respect to the subject matter
hereof and thereof.

                  (s)      Facsimile. This Agreement may be executed and
delivered by facsimile and upon such delivery the facsimile signature will be
deemed to have the same effect as if the original signature had been delivered
to the other party.

                  (t)      Definitions. For purposes of this Agreement, the term
"affiliate" shall have the meaning ascribed to it in Rule 501 of the Securities
Act of 1933, as amended.

                  [Remainder of page intentionally left blank]

                                       16

<PAGE>

         The parties hereto have executed this Agreement as of the date first
written above.

COMPANY:                              CANCERVAX CORPORATION

                                      By: /s/ David Hale
                                          ______________________________________
                                          David F. Hale, Chief Executive Officer

                           Address:       2110 Rutherford Road
                                          Carlsbad, CA 92008

            [COUNTERPART SIGNATURE PAGE TO THIRD AMENDED AND RESTATED
                STOCKHOLDERS' AGREEMENT OF CANCERVAX CORPORATION]

<PAGE>

STOCKHOLDERS:
                                      _________________________________________

                                      By: _____________________________________

                                      Address:

            [COUNTERPART SIGNATURE PAGE TO THIRD AMENDED AND RESTATED
                STOCKHOLDERS' AGREEMENT OF CANCERVAX CORPORATION]

<PAGE>

                                CONSENT OF SPOUSE

         I, _______________________, the spouse of Dr. Donald L. Morton, a party
to the foregoing Third Amended and Restated Stockholders' Agreement
("Agreement"), effective as of August 13, 2003, of CancerVax Corporation, a
Delaware corporation (the "Company"), acknowledge that I have reviewed the
Agreement. I hereby appoint my spouse as my attorney-in-fact with respect to the
exercise of any rights under the Agreement and agree to be bound by the
provisions of the Agreement insofar as I may have any rights in the Agreement or
any shares of the Company under the community property laws of the state of our
residence or similar laws relating to marital property in effect in the state of
our residence as of the date of the signing of the Agreement or thereafter. I
have been advised that I may have my own attorney review the Agreement and
associated documents, and have either consulted an attorney of my choice or
voluntarily elected not to consult legal counsel for this purpose.

Effective: August 13, 2003

                                           Signature:___________________________

                                           Print Name:__________________________

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