Document:

Exhibit 10.2

 

 

 

ONCOGENEX TECHNOLOGIES INC.

 

2006 OMNIBUS INCENTIVE PLAN

 

 

 

 

Table of
Contents

 

	
  Section 1.

  	
   

  	
  Purpose

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.

  	
   

  	
  Administration

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Power and Authority of the Committee

  	
   

  	
  3

  
	
  (b)

  	
   

  	
  Power and Authority of the Board

  	
   

  	
  3

  
	
  (c)

  	
   

  	
  Previously Granted Options

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.

  	
   

  	
  Shares Available for Awards

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Shares Available

  	
   

  	
  3

  
	
  (b)

  	
   

  	
  Accounting for Awards

  	
   

  	
  4

  
	
  (c)

  	
   

  	
  Adjustments

  	
   

  	
  4

  
	
  (d)

  	
   

  	
  Limitations on Awards to Insiders

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.

  	
   

  	
  Eligibility

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.

  	
   

  	
  Awards

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Options

  	
   

  	
  5

  
	
  (b)

  	
   

  	
  Stock Appreciation Rights

  	
   

  	
  6

  
	
  (c)

  	
   

  	
  Restricted Stock

  	
   

  	
  6

  
	
  (d)

  	
   

  	
  Restricted Stock Unit Awards

  	
   

  	
  7

  
	
  (e)

  	
   

  	
  Performance Awards

  	
   

  	
  7

  
	
  (f)

  	
   

  	
  Other Stock Grants

  	
   

  	
  7

  
	
  (g)

  	
   

  	
  Other Stock-Based Awards

  	
   

  	
  8

  
	
  (h)

  	
   

  	
  General

  	
   

  	
  8

  
	
  (i)

  	
   

  	
  Additional Conditions in Connection with Awards Granted to
  Participants Employed in Canada

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.

  	
   

  	
  Amendment and Termination; Adjustments

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  Amendments to and Discontinuance of the Plan.

  	
   

  	
  10

  
	
  (b)

  	
   

  	
  Correction of Defects, Omissions and Inconsistencies

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.

  	
   

  	
  Income Tax Withholding

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.

  	
   

  	
  General Provisions

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  No Rights to Awards

  	
   

  	
  12

  
	
  (b)

  	
   

  	
  Award Agreements

  	
   

  	
  12

  
	
  (c)

  	
   

  	
  Plan Provisions Control

  	
   

  	
  12

  
	
  (d)

  	
   

  	
  No Rights of Shareholders

  	
   

  	
  12

  
	
  (e)

  	
   

  	
  No Limit on Other Compensation Arrangements

  	
   

  	
  12

  
	
  (f)

  	
   

  	
  No Right to Employment

  	
   

  	
  12

  
	
  (g)

  	
   

  	
  Governing Law

  	
   

  	
  12

  
	
  (h)

  	
   

  	
  Severability

  	
   

  	
  13

  
	
  (i)

  	
   

  	
  No Trust or Fund Created

  	
   

  	
  13

  
	
  (j)

  	
   

  	
  Other Benefits

  	
   

  	
  13

  
	
  (k)

  	
   

  	
  No Fractional Shares

  	
   

  	
  13

  

 

 

	
  (l)

  	
   

  	
  Headings

  	
   

  	
  13

  
	
  (m)

  	
   

  	
  Conditions Precedent to Issuance of Shares

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.

  	
  Effective Date of the Plan

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 11.

  	
  Term of the Plan

  	
   

  	
  14

  

 

 

ONCOGENEX TECHNOLOGIES INC. 

2006 OMNIBUS INCENTIVE PLAN

 

Section 1.                  Purpose

 

The purpose of the Plan is to promote the interests
of the Company and its shareholders by aiding the Company in attracting and
retaining employees, officers, consultants, independent contractors and
directors capable of assuring the future success of the Company, to offer such
persons incentives to put forth maximum efforts for the success of the Company’s
business and to afford such persons an opportunity to acquire a proprietary
interest in the Company.

 

Section 2.                  Definitions

 

As used in the Plan, the following terms shall have
the meanings set forth below:

 

(a)          “Affiliate”
shall mean (i) any entity that, directly or indirectly through one or more
intermediaries, is controlled by the Company and (ii) any entity in which
the Company has a significant equity interest, in each case as determined by
the Committee.

 

(b)         “Award”
shall mean any Option, Stock Appreciation Right, Restricted Stock, Restricted
Stock Unit, Performance Award, Other Stock Grant or Other Stock-Based Award
granted under the Plan.

 

(c)          “Award
Agreement” shall mean any written agreement, contract or other
instrument or document evidencing any Award granted under the Plan. Each Award
Agreement shall be subject to the applicable terms and conditions of the Plan
and any other terms and conditions (not inconsistent with the Plan) determined
by the Committee.

 

(d)         “Board”
shall mean the Board of Directors of the Company.

 

(e)          “Black-Out
Period” means the period of time during which the Company has
imposed trading restrictions on its Insiders.

 

(f)            “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time, and
any regulations promulgated thereunder.

 

(g)         “Committee”
shall mean a committee of Directors designated by the Board to administer the
Plan, which shall initially be the Company’s compensation committee.

 

(h)         “Control”
when used in the context of determining whether an entity is a Related Entity
of the Company, shall have the meaning ascribed thereto under National
Instrument 45-106 – Prospectus Exempt
Distributions of the Canadian Securities Administrators.

 

(i)             “Company”
shall mean OncoGenex Technologies Inc., a Canadian corporation, and any
successor corporation.

 

(j)             “Director”
shall mean a member of the Board.

 

(k)          “Eligible
Person” shall mean any full time or part-time employee, officer,
consultant, independent contractor or director of or providing services to the
Company or any Related Entity and who the Committee determines to be an
Eligible Person.

 

1

 

(l)             “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(m)       “Fair Market
Value” shall mean, with respect to any property (including, without
limitation, any Shares or other securities), the fair market value of such
property determined by such methods or procedures as shall be established from
time to time by the Committee. Notwithstanding the foregoing and unless
otherwise determined by the Committee and approved by the Toronto Stock
Exchange, the Fair Market Value of a Share as of a given date shall be, if
the Shares are then listed on the Toronto Stock Exchange, the volume weighted
average trading price of one Share as reported on the Toronto Stock Exchange
for the five trading days immediately preceding such date.

 

(n)         “Incentive
Stock Option” shall mean an option granted under Section 6(a) of
the Plan that is intended to qualify as an “incentive stock option” in
accordance with the terms of Section 422 of the Code or any successor
provision.

 

(o)         “Insider
shall have the meaning ascribed thereto in Part VI of the Company Manual of the Toronto Stock
Exchange.

 

(p)         “Non-Qualified
Stock Option” shall mean an option granted under Section 6(a) of
the Plan that is not an Incentive Stock Option.

 

(q)         “Option”
shall mean an Incentive Stock Option or a Non-Qualified Stock Option.

 

(r)            “Other
Stock Grant” shall mean any right granted under Section 6(f) of
the Plan.

 

(s)          “Other
Stock-Based Award” shall mean any right granted under Section 6(g) of
the Plan.

 

(t)            “Participant”
shall mean an Eligible Person designated to be granted an Award under the Plan.

 

(u)         “Performance
Award” shall mean any right granted under Section 6(e) of
the Plan.

 

(v)         “Person”
shall mean any individual or entity, including a corporation, partnership,
limited liability company, association, joint venture or trust.

 

(w)       “Plan”
shall mean the OncoGenex Technologies Inc. 2006 Omnibus Incentive Plan, as
amended from time to time, the provisions of which are set forth herein.

 

(x)           “Related
Entity” means a person that controls or is controlled by the Company
or that is controlled by the same person that controls the Company.

 

(y)         “Restricted
Stock” shall mean any Share granted under Section 6(c) of
the Plan.

 

(z)           “Restricted
Stock Unit” shall mean any unit granted under Section 6(d) of
the Plan evidencing the right to receive a Share (or a cash payment equal to
the Fair Market Value of a Share) at some future date.

 

(aa)    “Security Based
Compensation Arrangement” shall have the meaning ascribed thereto in
Part VI of the Company Manual
of the Toronto Stock Exchange.

 

(bb)  “Securities Act”
shall mean the Securities Act of 1933, as amended.

 

2

 

(cc)    “Share”
or “Shares” shall mean a common
share or common shares of the Company or such other securities or property as
may become subject to Awards pursuant to an adjustment made under Section 4(c) of
the Plan.

 

(dd)  “Stock
Appreciation Right” shall mean any right granted under Section 6(b) of
the Plan.

 

(ee)    “Volume Weighted
Average Trading Price” for a common share of the Company shall mean
the price calculated by dividing the total value by the total volume of the
shares traded for the relevant period as reported on the Toronto Stock
Exchange.

 

Section 3.                  Administration

 

(a)          Power
and Authority of the Committee
The Plan shall be administered by the Committee. Subject to the express
provisions of the Plan and to applicable law, the Committee shall have full
power and authority to:  (i) designate
Participants; (ii) determine the type or types of Awards to be granted to
each Participant under the Plan; (iii) determine the number of Shares to
be covered by (or the method by which payments or other rights are to be
determined in connection with) each Award; (iv) determine the terms and
conditions of any Award or Award Agreement; (v) amend the terms and
conditions of any Award or Award Agreement and accelerate the exercisability or
vesting of any Option or waive any restrictions relating to any Award; (vi) determine
whether, to what extent and under what circumstances Awards may be exercised in
cash, Shares, promissory notes provided, however, that the acceptance of such
promissory notes does not conflict with Section 402 of the Sarbanes-Oxley
Act of 2002, other securities, other Awards or other property, or canceled,
forfeited or suspended; (vii) interpret and administer the Plan and any
instrument or agreement, including an Award Agreement, relating to the Plan; (vii) establish,
amend, suspend or waive such rules and regulations and appoint such agents
as it shall deem appropriate for the proper administration of the Plan; and (ix) make
any other determination and take any other action that the Committee deems
necessary or desirable for the administration of the Plan. Unless otherwise
expressly provided in the Plan, all designations, determinations,
interpretations and other decisions under or with respect to the Plan or any
Award shall be within the sole discretion of the Committee, may be made at any
time and shall be final, conclusive and binding upon any Eligible Person and
any holder or beneficiary of any Award.

 

(b)         Power
and Authority of the Board otwithstanding
anything to the contrary contained herein, the Board may, at any time and from
time to time, without any further action of the Committee, exercise the powers
and duties of the Committee under the Plan.

 

(c)          Previously
Granted Options There are outstanding options for the purchase of Shares
granted by the Company to eligible parties pursuant to the Company’s existing
stock option plan (the “Pre-Existing Plan”). Options which are outstanding
under the Pre-Existing Plan as of the effective date of the Plan shall continue
to be exercisable and shall continue to be governed by and be subject to the
terms of the Pre-Existing Plan and the stock option agreements evidencing their
issuance. Notwithstanding the provisions of Section 4(a) below, the
number of Shares that may be issued under the Plan at any time shall be reduced
by (i) the number of Shares subject at such time to options granted and
outstanding under the Pre-Existing Plan, and (ii) the number of Shares
issued under the Pre-Existing Plan after the effective date of this Plan.

 

Section 4.                  Shares Available
for Awards

 

(a)          Shares
Available Subject to
adjustment as provided in Section 4(c) of the Plan, the aggregate
number of Shares that may be issued under the Plan, including Shares issuable
under the Pre-Existing

 

3

 

Plan,
shall be the greater of 1,905,557 Shares and 10% of the issued and outstanding
Shares of the Company from time to time. Shares to be issued under the Plan may
be either authorized but unissued Shares or Shares re-acquired and held in
treasury. Notwithstanding the foregoing, (i) the number of Shares
available for granting Incentive Stock Options under the Plan shall not exceed
the lesser of 1,905,557 and the number of Shares authorized for issuance under
the Plan, subject to adjustment as provided in Section 4(c) of the
Plan and subject to the provisions of Section 422 or 424 of the Code or
any successor provision and (ii) the number of Shares available for
granting Restricted Stock and Restricted Stock Units shall not exceed the lesser of 1,905,557 and the number of
Shares authorized for issuance under the Plan, subject to adjustment as
provided in Section 4(c) of the Plan.

 

(b)         Accounting
for Awards For purposes of
this Section 4, if an Award entitles the holder thereof to receive or
purchase Shares, the number of Shares covered by such Award or to which such
Award relates shall be counted on the date of grant of such Award against the
aggregate number of Shares available for granting Awards under the Plan. Any
Shares that are used by a Participant as full or partial payment to the Company
of the purchase price relating to an Award, including Shares tendered in connection
with the satisfaction of tax obligations relating to an Award, shall again be
available for granting Awards under the Plan. In addition, if any Shares
covered by an Award or to which an Award relates are not purchased or are
forfeited, or if an Award otherwise terminates without delivery of any Shares,
then the number of Shares counted against the aggregate number of Shares
available under the Plan with respect to such Award, to the extent of any such
forfeiture or termination, shall again be available for granting Awards under
the Plan.

 

(c)          Adjustments In the event that the Committee shall
determine that any dividend or other distribution (whether in the form of cash,
Shares, other securities or other property), recapitalization, stock split, reverse
stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase or exchange of Shares or other securities of the
Company, issuance of warrants or other rights to purchase Shares or other
securities of the Company or other similar corporate transaction or event
affects the Shares such that an adjustment is determined by the Committee to be
appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan, then the
Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the
number and type of Shares (or other securities or other property) that
thereafter may be made the subject of Awards, (ii) the number and type of
Shares (or other securities or other property) subject to outstanding Awards
and (iii) the purchase price or exercise price with respect to any Award; provided, however,
that the number of Shares covered by any Award or to which such Award relates
shall always be a whole number. Notwithstanding the above, in the event (i) of
any reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase or exchange of Shares or other securities of the Company or any
other similar corporate transaction or event or (ii) the Company shall
enter into a written agreement to undergo such a transaction or event, the
Committee may, in its sole discretion, cancel any or all outstanding Awards and
pay to the holders of any such Awards that are otherwise vested, in cash, the
value of such Awards based upon the price per share of capital stock received
or to be received by other shareholders of the Company in such event, provided
that if and to the extent required by Code Section 409A and applicable
guidance thereunder this sentence shall not apply to any award that is subject
to Code section 409A.

 

(d)         Limitations
on Awards to Insiders Notwithstanding
any other provision of the Plan, no Participant who is an Insider of the
Company shall be granted an Award in any form which may result in the issuance
of common shares if the aggregate number of common shares of the Company:

 

(i)                                     issued
to Insiders pursuant to the terms of Awards previously granted, within any one
year period, and

 

4

 

(ii)          issuable to Insiders, at
any time,

 

under the Plan or any other security based
compensation arrangement of the Company shall exceed 10% of the common shares
of the Company issued and outstanding at the relevant time.

 

Section 5.                  Eligibility

 

Any Eligible Person shall be eligible to be
designated a Participant. In determining which Eligible Persons shall receive
an Award and the terms of any Award, the Committee may take into account the
nature of the services rendered by the respective Eligible Persons, their
present and potential contributions to the success of the Company or such other
factors as the Committee, in its discretion, shall deem relevant.
Notwithstanding the foregoing, an Incentive Stock Option may only be granted to
full-time or part-time employees (which term as used herein includes, without
limitation, officers and directors who are also employees), and an Incentive
Stock Option shall not be granted to an employee of an Affiliate unless such
Affiliate is also a “subsidiary corporation” of the Company within the meaning
of Section 424(f) of the Code or any successor provision.

 

Section 6.                  Awards

 

(a)          Options The Committee is hereby authorized to grant
Options to Eligible Persons with the following terms and conditions and with
such additional terms and conditions not inconsistent with the provisions of
the Plan as the Committee shall determine:

 

(i)             Exercise Price.
The purchase price per Share purchasable under an Option shall be determined by
the Committee; provided, however, that such purchase price shall
not be less than 100% of the Fair Market Value of a Share on the date of grant
of such Option.

 

(ii)          Option Term. The
term of each Option shall be fixed by the Committee at the time of grant but in
no event may exceed 10 years from the date of grant. The terms of an Option may
provide that if the Option would otherwise expire during or immediately after a
Black-Out Period, then the term of the Option shall be automatically extended
until 10 business days following the expiration of the Black-Out Period,
provided that no Option term shall be extended beyond 10 years from the date of
grant.

 

(iii)       Time and Method of
Exercise. The Committee shall determine the time or times at which an
Option may be exercised in whole or in part and the method or methods by which,
and the form or forms (including, without limitation, cash, Shares, promissory
notes provided, however, that the acceptance of such
promissory notes does not conflict with Section 402 of the Sarbanes-Oxley
Act of 2002, other securities,
other Awards or other property, or any combination thereof, having a Fair
Market Value on the exercise date equal to the applicable exercise price) in
which payment of the exercise price with respect thereto may be made or deemed
to have been made.

 

(iv)      Incentive Stock Options.
Notwithstanding anything in the Plan to the contrary, the following additional
provisions shall apply to the grant of stock options which are intended to
qualify as Incentive Stock Options:

 

(A)      To the extent the aggregate
Fair Market Value (determined as of the grant date) of Shares with respect to
which Incentive Stock Options are exercisable for the first time by a
Participant during any calendar year (under this Plan and all other stock
option

 

5

 

plans of the Company)
exceeds U.S. $100,000, such portion in excess of U.S. $100,000 shall be treated
as a Non-Qualified Stock Option. In the event that the Participant holds two or
more such Options that become exercisable for the first time in the same
calendar year, such limitation shall be applied on the basis of the order in
which such Options are granted.

 

(B)        All Incentive Stock
Options must be granted within ten years from the earlier of the date on which
this Plan was adopted by the Board or the date this Plan was approved by the
shareholders of the Company.

 

(C)        Unless sooner exercised,
all Incentive Stock Options shall expire and no longer be exercisable no later
than 10 years after the date of grant; provided,
however, that in the case of a
grant of an Incentive Stock Option to a Participant who, at the time such
Option is granted, owns (within the meaning of Section 422 of the Code)
shares possessing more than 10% of the total combined voting power of all
classes of shares of the Company or of its Affiliate, such Incentive Stock
Option shall expire and no longer be exercisable no later than 5 years from the
date of grant.

 

(D)       The purchase price per
Share for an Incentive Stock Option shall be not less than 100% of the Fair
Market Value of a Share on the date of grant of the Incentive Stock Option; provided, however,
that, in the case of the grant of an Incentive Stock Option to a Participant
who, at the time such Option is granted, owns (within the meaning of Section 422
of the Code) stock possessing more than 10% of the total combined voting power
of all classes of stock of the Company or of its Affiliate, the purchase price
per Share purchasable under an Incentive Stock Option shall be not less than
110% of the Fair Market Value of a Share on the date of grant of the Inventive
Stock Option.

 

(E)         Any Incentive Stock
Option authorized under the Plan shall contain such other provisions as the
Committee shall deem advisable, but shall in all events be consistent with and
contain all provisions required in order to qualify the Option as an Incentive
Stock Option.

 

(b)         Stock
Appreciation Rights The
Committee is hereby authorized to grant Stock Appreciation Rights to Eligible
Persons subject to the terms of the Plan. Each Stock Appreciation Right granted
under the Plan shall confer on the holder upon exercise the right to receive,
as determined by the Committee, cash or a number of Shares equal to the excess
of (a) the Fair Market Value of one Share on the date of exercise (or, if
the Committee shall so determine, at any time during a specified period before
or after the date of exercise) over (b) the grant price of the Stock
Appreciation Right as determined by the Committee, which grant price shall not
be less than 100% of the Fair Market Value of one Share on the date of grant of
the Stock Appreciation Right. Subject to the terms of the Plan, the grant
price, term, methods of exercise, dates of exercise, methods of settlement and
any other terms and conditions (including conditions or restrictions on the
exercise thereof) of any Stock Appreciation Right shall be as determined by the
Committee.

 

(c)          Restricted
Stock The Committee is
hereby authorized to grant Restricted Stock to Eligible Persons with the
following terms and conditions and with such additional terms and conditions
not inconsistent with the provisions of the Plan as the Committee shall
determine:

 

(i)             Restrictions.
Shares of Restricted Stock shall be subject to such restrictions as the
Committee may impose (including, without limitation, a restriction on or
prohibition against the right to receive any dividend or other right or
property with respect thereto), which

 

6

 

restrictions may lapse
separately or in combination at such time or times, in such installments or
otherwise as the Committee may deem appropriate.

 

(ii)          Stock Certificates.
Any Restricted Stock granted under the Plan shall be evidenced by the issuance
of a share certificate or certificates, which shall be held by the Company.
Such certificate or certificates shall be registered in the name of the
Participant and shall bear an appropriate legend referring to the applicable
Award Agreement and possible forfeiture of such shares of Restricted Stock.

 

(iii)       Forfeiture. Except
as otherwise determined by the Committee, upon a Participant’s termination of
employment (as determined under criteria established by the Committee) during
the applicable restriction period, all applicable Shares of Restricted Stock at
such time subject to restriction shall be forfeited and reacquired by the
Company; provided, however, that the Committee may, when it
finds that a waiver would be in the best interest of the Company, waive in
whole or in part any or all remaining restrictions with respect to Shares of
Restricted Stock.

 

(d)         Restricted
Stock Unit Awards

 

The Committee is hereby authorized to grant
Restricted Stock Unit Awards to Eligible Persons evidencing the right in such
Eligible Person to receive a Share (or cash payment equal to the Fair Market
Value of a Share) at some future date.

 

(i)             Restrictions.
A Restricted Stock Unit Award will be subject to a Restricted Stock Unit Award
Agreement containing such terms and conditions, not inconsistent with the
provisions of the Plan, as the Committee shall determine.

 

(ii)          Forfeiture.
Except as otherwise determined by the Committee and as set forth in the
applicable Award Agreement, upon a Participant’s termination of employment (as
determined under criteria established by the Committee) during the applicable
restriction period, all applicable Restricted Stock Units at such time subject
to restriction shall be forfeited and reacquired by the Company; provided, however,
that the Committee may, when it finds that a waiver would be in the best
interest of the Company, waive in whole or in part any or all remaining
restrictions with respect to Restricted Stock Units.

 

(e)          Performance
Awards The Committee
is hereby authorized to grant Performance Awards to Eligible Persons subject to
the terms of the Plan. A Performance Award granted under the Plan (i) may
be denominated or payable in cash, Shares (including, without limitation,
Restricted Stock and Restricted Stock Units), other securities, other Awards or
other property and (ii) shall confer on the holder thereof the right to
receive payments, in whole or in part, upon the achievement of such performance
goals during such performance periods as the Committee shall establish. Subject
to the terms of the Plan, the performance goals to be achieved during any
performance period, the length of any performance period, the amount of any
Performance Award granted, the amount of any payment or transfer to be made
pursuant to any Performance Award and any other terms and conditions of any
Performance Award shall be determined by the Committee.

 

(f)            Other
Stock Grants The Committee
is hereby authorized, subject to the terms of the Plan, to grant to Eligible
Persons Shares without restrictions thereon as are deemed by the Committee to
be consistent with the purpose of the Plan.

 

7

 

(g)         Other
Stock-Based Awards The
Committee is hereby authorized to grant to Eligible Persons, subject to the
terms of the Plan, such other Awards that are denominated or payable in, valued
in whole or in part by reference to, or otherwise based on or related to,
Shares (including, without limitation, securities convertible into Shares), as
are deemed by the Committee to be consistent with the purpose of the Plan.
Shares or other securities delivered pursuant to a purchase right granted under
this Section 6(g) shall be purchased for such consideration, which
may be paid by such method or methods and in such form or forms (including,
without limitation, cash, Shares, promissory notes provided, however,
that the acceptance such promissory notes does not conflict with Section 402
of the Sarbanes-Oxley Act of 2002, other securities, other Awards or other
property or any combination thereof), as the Committee shall determine, the
value of which consideration, as established by the Committee, shall not be
less than 100% of the Fair Market Value of such Shares or other securities as
of the date such purchase right is granted.

 

(h)         General

 

(i)             Consideration for
Awards. Awards may be granted for no cash consideration or for any cash or
other consideration as determined by the Committee and required by applicable
law.

 

(ii)          Awards May Be
Granted Separately or Together. Awards may, in the discretion of the
Committee, be granted either alone or in addition to, in tandem with or in
substitution for any other Award or any award granted under any plan of the
Company or any Affiliate. Awards granted in addition to or in tandem with other
Awards or in addition to or in tandem with awards granted under any such other
plan of the Company or any Affiliate may be granted either at the same time as
or at a different time from the grant of such other Awards or awards.

 

(iii)       Forms of Payment under
Awards. Subject to the terms of the Plan, payments or transfers to be made
by the Company or an Affiliate upon the grant, exercise or payment of an Award
may be made in such form or forms as the Committee shall determine (including,
without limitation, cash, Shares, promissory notes provided, however,
that the acceptance of such promissory notes does not conflict with Section 402
of the Sarbanes-Oxley Act of 2002, other securities, other Awards or other
property or any combination thereof), and may be made in a single payment or
transfer, in installments or on a deferred basis, in each case in accordance
with rules and procedures established by the Committee. Such rules and
procedures may include, without limitation, provisions for the payment or
crediting of reasonable interest on installment or deferred payments or the
grant or crediting of Dividend Equivalents with respect to installment or
deferred payments.

 

(iv)      Limits on Transfer of
Awards. No Award (other than Other Stock Grants) and no right under any
such Award shall be transferable by a Participant otherwise than by will or by
the laws of descent and distribution and the Company shall not be required to
recognize any attempted assignment of such rights by any Participant; provided, however,
that, if so determined by the Committee, a Participant may, in the manner
established by the Committee, designate a beneficiary or beneficiaries to
exercise the rights of the Participant and receive any property distributable
with respect to any Award upon the death of the Participant; provided, further,
that, if so determined by the Committee, a Participant may transfer a
Non-Qualified Stock Option to any Family Member (as such term is defined in the
General Instructions to Form S-8 or successor to such Instructions or such
Form) at any time that such Participant holds such Option, provided that the Participant may not
receive any consideration for such transfer, the Family Member may not make any
subsequent transfers other than by will or by the laws of descent and
distribution and the Company receives written notice of such transfer. Except
as otherwise determined by the Committee (for awards other than an Incentive
Stock Option), each Award or right under any such Award shall be exercisable
during the Participant’s lifetime only by the Participant or, if permissible
under applicable law, by the Participant’s guardian or legal representative.
Except as otherwise determined by the Committee (for Award s other than an
Incentive Stock Option), no

 

8

 

Award or right under any
such Award may be pledged, alienated, attached or otherwise encumbered, and any
purported pledge, alienation, attachment or other encumbrance thereof shall be
void and unenforceable against the Company or any Affiliate.

 

(v)         Term of Awards.
Subject to Section 6(a)(iv)(C), the term of each Award shall be for such
period as may be determined by the Committee.

 

(vi)      Restrictions; Securities
Exchange Listing. All Shares or other securities delivered under the Plan
pursuant to any Award or the exercise thereof shall be subject to such stop
transfer orders and other restrictions as the Committee may deem advisable
under the Plan, applicable United States federal or state, Canadian provincial,
or foreign securities laws and regulatory requirements, and applicable Canadian
corporate laws, and the Committee
may direct appropriate stop transfer orders and cause other legends to be
placed on the certificates for such Shares or other securities to reflect such
restrictions. If the Shares or other securities are traded on a securities
exchange, the Company shall not be required to deliver any Shares or other
securities covered by an Award unless and until such Shares or other securities
have been admitted for trading on such securities exchange.

 

(vii)   Prohibition on Option Repricing.
Except as provided in Section 4(c) hereof, no Option may be amended
to reduce its initial exercise price and no Option shall be canceled and
replaced with an Option or Options having a lower exercise price, without the
approval of the shareholders of the Company or in the case of Options held by
Participants who are not Insiders, unless there would be no material adverse
effect on the Company’s financial statements as prepared in accordance with
Generally Accepted Accounting Principles.

 

(i)             Additional
Conditions in Connection with Awards Granted to Participants Employed in Canada Notwithstanding any other provision of the
Plan, the following additional terms, conditions and restrictions apply to
Awards granted to Participants employed in Canada:

 

(i)             Options.

 

(A)      Payment by the Participant
of the exercise price with respect to an Option may not be made in Shares.

 

(B)        Upon the exercise of an
Option the sole form in which payment to the Participant may be made by the
Company shall be in Shares, unless the Company offers the Participant the right
to elect to receive cash or other consideration in lieu of Shares and the
Participant, in its sole discretion, so elects.

 

(C)        The Committee may not
cancel an Option and pay to the Participant cash in the amount of the excess of
the fair market value of the Shares over the excise price unless the
Participant, in its sole discretion, agrees to receive cash in lieu of Shares.

 

(D)       Tax withholding obligations
may not be satisfied by the Participant electing to have the Company withhold
Shares otherwise to be delivered upon exercise of an Option or by the
Participant delivering Shares to the Company.

 

(E)         No undertakings shall be
given by the Company, any person or partnership non-arm’s length with the
Company or any partnership or trust of which the Company or a non-arm’s length
person is a member or beneficiary, and no agreement shall be entered into by
any such person with the Participant, with respect to any Shares held by the

 

9

 

Participant, including
any agreement or undertaking relating to the redemption, acquisition or
cancellation of the Shares or the reduction of the Company’s paid-up capital.

 

(ii)          Restricted Stock Unit
Awards. Restricted Stock Unit Awards shall be settled in Shares, unless the
Company offers the Participant the right to receive cash in lieu of Shares and
the Participant, in its sole discretion, so elects.

 

(iii)       Restricted Stock.
Participants employed in Canada are not eligible to receive a grant of
Restricted Stock pursuant to Section 6(c) of the Plan.

 

(iv)      Other Awards. With
respect to any other Award granted to a Participant employed in Canada, the
Committee shall have the right, but not the obligation, to take account of
Canadian income tax considerations in determining the terms and conditions of
the Award or any other amendment thereto.

 

Section 7.                  Amendment and
Termination; Adjustments

 

(a)          Amendments
to and Discontinuance of the Plan.

 

(i)             Subject to regulatory
approval and the limitations in subsections (iii) and (iv) below, the
Board may, without shareholder approval, at any time amend or discontinue the
Plan, including, without limitation, amending any of the provisions of the Plan
relating to:

 

(A)      The persons who are eligible
for the grant of Awards (including the provisions of sections 3 and 5 of the
Plan relevant thereto);

 

(B)        The authority of the
Committee and the Board in respect of the grant of Awards (including the
provisions of sections 1, 3 and 6 of the Plan relevant thereto);

 

(C)        The extension of the term
of any Award held by a Participant who is not an Insider, provided the term of
any Option shall not be more than ten years from the date of grant;

 

(D)       The procedure for the
tendering of a notice of exercise of Awards and the exercise of Awards
(including the provisions of section 6 of the Plan relevant thereto);

 

(E)         The acceleration of
vesting and the exercise of Awards in the event of a take-over bid (including
the provisions of section 3 of the Plan relevant thereto);

 

(F)         The purchase of
outstanding Options by the Company in the event of a take-over bid (including
the provisions of section 4(c) of the Plan relevant thereto);

 

(G)        The adjustment in Shares
in the event that the authorized capital of the Company as presently
constituted is consolidated into a lesser number of Shares or subdivided into a
greater number of Shares (including the provisions of section 4(c) of
the Plan relevant thereto);

 

(H)       The interpretation by the
Board of any questions of interpretation of the Plan (including the provisions
of section 3 of the Plan relevant thereto);

 

10

 

(I)            The determination of
the exercise price of the Options (including the provisions of section 6(a) of
the Plan relevant thereto), provided the exercise price is determined in
accordance with the rules or approval of the Toronto Stock Exchange; and

 

(J)           Any other matter which
does not expressly require the approval of shareholders of the Company under
subsection (iii) below;

 

(ii)          Subject to regulatory
approval and the limitations of subsections (iii) and (iv) below, the
Board may amend the terms of any outstanding Award provided that the terms of
such amendment are made in accordance with the Plan;

 

(iii)       Subject to regulatory approval,
the Board may amend any of the provisions of the Plan relating to the
following, provided the Board obtains the approval of the shareholders of the
Company in respect thereof:

 

(A)      The limitations on grants of
Options to Insiders, the extension of the term of any Award held by an Insider
and the number of Shares that may be reserved for issuance to Insiders
(including the provisions of section 4(e) of the Plan relevant
thereto); or

 

(B)        The maximum number of
shares reserved for issuance upon exercise of Options available under the
Pre-Existing Plan (including the provisions of section 4(a) of the
Plan relevant thereto); and

 

(iv)      None of the amendments
listed in (i), (ii) or (iii) above may, without the consent of any
holder of Awards under the Plan, be made if such amendment will have the effect
of impairing, derogating from or otherwise adversely affecting such holder’s
rights under the Plan, unless additional similar rights comparable thereto, or
other compensation of equal or greater value, is given to such holder.

 

(b)         Correction
of Defects, Omissions and Inconsistencies The Committee may correct any defect, supply any omission or reconcile
any inconsistency in the Plan or any Award in the manner and to the extent it
shall deem desirable to carry the Plan into effect.

 

Section 8.                  Income Tax
Withholding

 

In order to comply with all applicable United
States, Canadian and foreign federal, state, provincial or local income tax
laws or regulations, the Company may take such action as it deems appropriate
to ensure that all applicable federal, state, provincial or local payroll,
withholding, income or other taxes, which are the sole and absolute
responsibility of a Participant, are withheld or collected from such
Participant. In order to assist a Participant in paying all or a portion of the
federal, state, provincial and local taxes to be withheld or collected upon
exercise or receipt of (or the lapse of restrictions relating to) an Award, the
Committee, in its discretion and subject to such additional terms and
conditions as it may adopt, may permit the Participant to satisfy such tax
obligation by (i) electing to have the Company withhold a portion of the
Shares otherwise to be delivered upon exercise or receipt of (or the lapse of
restrictions relating to) such Award with a Fair Market Value equal to the
amount of such taxes or (ii) delivering to the Company Shares other than
Shares issuable upon exercise or receipt of (or the lapse of restrictions
relating to) such Award with a Fair Market Value equal to the amount of such
taxes. The election, if any, must be made on or before the date that the amount
of tax to be withheld is determined.

 

11

 

Section 9.                  General
Provisions

 

(a)          No
Rights to Awards No Eligible
Person or other Person shall have any claim to be granted any Award under the
Plan, and there is no obligation for uniformity of treatment of Eligible
Persons or holders or beneficiaries of Awards under the Plan. The terms and
conditions of Awards need not be the same with respect to any Participant or
with respect to different Participants.

 

(b)         Award
Agreements No Participant
will have rights under an Award granted to such Participant unless and until an
Award Agreement shall have been duly executed on behalf of the Company and, if
requested by the Company, signed by the Participant.

 

(c)          Plan
Provisions Control In the
event that any provision of an Award Agreement conflicts with or is
inconsistent in any respect with the terms of the Plan as set forth herein or
subsequently amended, the terms of the Plan shall control.

 

(d)         No
Rights of Shareholders Except
with respect to Shares of Restricted Stock as to which the Participant has been
granted the right to vote, neither a Participant nor the Participant’s legal
representative shall be, or have any of the rights and privileges of, a
shareholder of the Company with respect to any Shares issuable to such
Participant upon the exercise or payment of any Award, in whole or in part,
unless and until such Shares have been issued in the name of such Participant
or such Participant’s legal representative without restrictions thereto.

 

(e)          No
Limit on Other Compensation Arrangements Nothing contained in the Plan shall prevent the Company or any
Affiliate from adopting or continuing in effect other or additional
compensation arrangements, and such arrangements may be either generally
applicable or applicable only in specific cases.

 

(f)            No
Right to Employment The
grant of an Award shall not be construed as giving a Participant the right to
be retained in the employ, or as giving a director of the Company or an
Affiliate the right to continue as a director or an Affiliate of the Company or
any Affiliate, nor will it affect in any way the right of the Company or an
Affiliate to terminate such employment at any time, with or without cause. In
addition, the Company or an Affiliate may at any time dismiss a Participant
from employment, or terminate the term of a director of the Company or an
Affiliate, free from any liability or any claim under the Plan or any Award,
unless otherwise expressly provided in the Plan or in any Award Agreement.
Nothing in this Plan shall confer on any person any legal or equitable right
against the Company or any Affiliate, directly or indirectly, or give rise to
any cause of action at law or in equity against the Company or an Affiliate.
The Awards granted hereunder shall not form any part of the wages or salary of
any Eligible Person for purposes of severance pay or termination indemnities,
irrespective of the reason for termination of employment. Under no
circumstances shall any person ceasing to be an employee of the Company or any
Affiliate be entitled to any compensation for any loss of any right or benefit
under the Plan which such employee might otherwise have enjoyed but for
termination of employment, whether such compensation is claimed by way of
damages for wrongful or unfair dismissal, breach of contract or otherwise. By
participating in the Plan, each Participant shall be deemed to have accepted
all the conditions of the Plan and the terms and conditions of any rules and
regulations adopted by the Committee and shall be fully bound thereby.

 

(g)         Governing
Law The validity,
construction and effect of the Plan or any Award, and any rules and
regulations relating to the Plan or any Award, shall be determined in
accordance with the internal laws, and not the law of conflicts, of the
Province of British Columbia.

 

12

 

(h)         Severability If any provision of the Plan or any Award is
or becomes or is deemed to be invalid, illegal or unenforceable in any
jurisdiction or would disqualify the Plan or any Award under any law deemed
applicable by the Committee, such provision shall be construed or deemed amended
to conform to applicable laws, or if it cannot be so construed or deemed
amended without, in the determination of the Committee, materially altering the
purpose or intent of the Plan or the Award, such provision shall be stricken as
to such jurisdiction or Award, and the remainder of the Plan or any such Award
shall remain in full force and effect.

 

(i)             No
Trust or Fund Created Neither
the Plan nor any Award shall create or be construed to create a trust or
separate fund of any kind or a fiduciary relationship between the Company or
any Affiliate and an Eligible Person or any other Person. To the extent that
any Person acquires a right to receive payments from the Company or any
Affiliate pursuant to an Award, such right shall be no greater than the right
of any unsecured general creditor of the Company or any Affiliate.

 

(j)             Other
Benefits No compensation or
benefit awarded to or realized by any Participant under the Plan shall be
included for the purpose of computing such Participant’s compensation under any
compensation-based retirement, disability, or similar plan of the Company
unless required by law or otherwise provided by such other plan.

 

(k)          No
Fractional Shares No
fractional Shares shall be issued or delivered pursuant to the Plan or any
Award, and the Committee shall determine whether cash shall be paid in lieu of
any fractional Shares or whether such fractional Shares or any rights thereto
shall be canceled, terminated or otherwise eliminated.

 

(l)             Headings Headings are given to the Sections and
subsections of the Plan solely as a convenience to facilitate reference. Such
headings shall not be deemed in any way material or relevant to the
construction or interpretation of the Plan or any provision thereof.

 

(m)       Conditions
Precedent to Issuance of Shares
Shares shall not be issued pursuant to the exercise or payment of the purchase
price relating to an Award unless such exercise or payment and the issuance and
delivery of such Shares pursuant thereto shall comply with all relevant
provisions of law, including, without limitation, the Securities Act, the
Exchange Act, the rules and regulations promulgated thereunder, the
requirements of any applicable stock exchange, the Canada Business Corporations Act, and other applicable
Canadian and provincial law. As a condition to the exercise or payment of the
purchase price relating to such Award, the Company may require that the person
exercising or paying the purchase price represent and warrant that the Shares
are being purchased only for investment and without any present intention to
sell or distribute such Shares if, in the opinion of counsel for the Company,
such a representation and warranty is required by law.

 

Section 10.           Effective Date of the
Plan

 

The Plan shall be effective upon its adoption by the
Board, provided, however, that in the event the Plan is not
approved by the shareholders of the Company within one year thereafter or the
Company does not complete an initial public offering of its Shares by December 31,
2006, the Plan will be terminated and all Awards granted under the Plan will be
terminated and deemed null and void, provided,
however, that with respect to any
Shares (including Shares of Restricted Stock) issued under the Plan prior to
such termination, the Plan shall be deemed to be effective.

 

13

 

Section 11.           Term of the Plan

 

No Award shall be granted under the Plan after ten
years from earlier of date of adoption of Plan by Board or date of shareholder
approval or any earlier date of discontinuation or termination established
pursuant to Section 7(a) of the Plan. However, unless otherwise
expressly provided in the Plan or in an applicable Award Agreement, any Award
theretofore granted may extend beyond such date, and the authority of the
Committee provided for hereunder with respect to the Plan and any Awards, and
the authority of the Board to amend the Plan, shall extend beyond the
termination of the Plan.

 

This
Plan was adopted by the Board on August 14, 2006.

 

This
Plan was approved by Shareholders on September 1, 2006.

 

14Exhibit 10.3

 

EMPLOYMENT AGREEMENT

 

THIS
AGREEMENT made as of the 21st day of December,
2001

 

BETWEEN:

 

OncoGenex
Technologies Inc., a Corporation incorporated under the laws
of Canada and having an office at Vancouver, British Columbia

 

(together
with any subsidiaries hereinafter referred to as the “Company”)

 

OF THE FIRST PART

 

AND:

 

Scott D.
Cormack, executive, domiciled at Calgary, Alberta

 

(hereinafter
referred to as the “Executive”)

 

OF THE SECOND PART

 

WHEREAS
the Company is a biotechnology company engaged in the development of
therapeutics and diagnostics for cancer;

 

AND
WHEREAS the Company and the Executive wish to enter into this
Employment Agreement under the terms and conditions herein;

 

AND
WHEREAS during the course of the Executive’s employment with
the Company, the Executive will be introduced to, have contact with, and
his/her services may be solicited by, one or more of the clients of the
Company;

 

AND
WHEREAS the Executive will acquire knowledge, experience and
expertise, as well as detailed knowledge of the Company’s confidential customer
and supplier lists and information, marketing techniques, price lists, trade
secrets and other property which is and shall be the property of the Company,
and the disclosure, loss or, unauthorized use of which would substantially harm
the business of the Company;

 

 

NOW
THEREFORE THIS AGREEMENT WITNESSES that for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereby agree as follows:

 

ARTICLE 1

TERM OF EMPLOYMENT

 

1.1           The
term of employment under this Agreement shall commence on January 1st,
2002 (the “Effective Date”) and shall be for
an indefinite term, subject to termination as provided for in Article 7
hereof. In accordance with the other terms of this Agreement, the Executive
shall devote himself full-time to his employment duties and responsibilities
with the Company.

 

ARTICLE 2

DUTIES AND RESPONSIBILITIES

 

2.1           The
Executive shall serve the Company as an executive officer in the position of President
and Chief Executive Officer.

 

2.2           The
Executive shall report to the Board and shall undertake and perform the
following duties and responsibilities:

 

(a)           actively
engage with the Board to ensure that the initiatives of the management team are
aligned with the strategic direction and objectives for the Company that have
been established by the Board;

 

(b)           provide
overall direction for the Company in order for it to implement agreed
strategies in order to meet Company goals and objectives;

 

(c)           make
decisions in line with organizational goals, leading to desired results, and
will be responsible and accountable for results;

 

(d)           create
and sustain the organizational culture and environment needed to achieve
objectives and results and recruit and retain a high performance operating
team;

 

(e)           oversee
the management and administration of the Company; and

 

(f)            perform
such other duties and responsibilities as may be assigned or vested in him by
the Board from time to time and which are consistent with the duties and
responsibilities of a President and Chief Executive Officer.

 

2.3           The
Executive agrees, during the continuance of his employment, to devote his
entire working time, services, skill and ability to such employment and to
serve at all times with loyalty and honesty in the best interests of the
Company. Subject to this Section 2.3, the Executive may engage in other
activities for any charitable or other non-profit institution

 

2

 

and
may accept External Directorships. For the purposes of this Section 2.3, “External Directorships” shall mean any board of directors,
advisory board or counsel for a for-profit organization. Attached hereto as
Appendix B are the Executive’s External Directorships, as amended from time to
time. The Executive, at his sole discretion, shall be permitted to terminate
such External Directorships and, with the prior approval of the Board, accept
other External Directorships, provided always that i) such External
Directorships shall not exceed three (3); ii) such External Directorships shall
comply with the non-competition provisions contained in Article 8 hereof;
iii) the Executive will not devote more than six (6) one-half (0.5) days
per board per year; and, iv) such External Directorships do not materially and
adversely affect the Executives ability to perform his functions in accordance
with this Agreement, in which case, such number of External Directorships as
authorized herein may be reduced in number by the Board such that the Executive
is able to perform his functions in accordance with this Agreement.

 

ARTICLE 3 

BASE COMPENSATION

 

3.1           In
consideration of the services provided by the Executive hereunder, the Company
shall, as of the Effective Date, pay to the Executive an annual base salary in
the amount of One Hundred and Seventy Thousand Dollars ($170,000) as increased
from time to time in accordance with Section 3.2 (“Base Salary”),
payable in such manner as may be agreeable to the Parties and in compliance
with any applicable legislation. Upon Relocation (as defined in Section 6.1),
the Executive’s Base Salary will be increased to One Hundred and Ninety
Thousand Dollars ($190,000).

 

3.2           Such
Base Salary shall be reviewed by the Compensation Committee of the Board every
twelve (12) months based on the Executive’s performance, corporate cash flow,
achievement of corporate objectives and in accordance with Company policies. Any
recommended increase shall first be approved by the Board.

 

3.3           The
Executive shall be eligible to participate in any bonus plans (“Bonus”) offered by the Company to its executives in
accordance with the terms thereof as established by the Board and as amended
from time to time. Initially, the Executive shall be eligible for a Bonus
constituting 40% of the Base Salary. Such Bonus shall constitute a contractual
obligation and shall be considered as part of the Executive’s compensation. The
Bonus shall be based on mutually agreed upon objectives as established by the
Board and the Executive, both acting reasonably. Any Bonus awarded for the
Executive’s performance during the 12 month period immediately following the
Effective Date will be allocated to the achievement of particular milestones
and overall performance as described in Appendix A. New milestones for the
Bonus in subsequent fiscal years will be set on an annual basis by the
Compensation Committee and approved by the Board.

 

3

 

ARTICLE 4 

INCENTIVE COMPENSATION

 

4.1           The
Executive shall participate in the Company’s share option plan (the “Plan”) as set forth in Appendix C attached hereto and in
accordance with its terms as amended from time to time.

 

4.2           Notwithstanding
the terms of the Plan, if the Company notifies the Executive of the
termination, without just cause, of his employment, or the Executive resigns as
a result of Constructive Dismissal (as defined in Section 7.3 hereof), any
options (“Options”) to purchase shares in the
capital of the Company which have been granted to the Executive, whether under
the Plan or otherwise, and which have not yet vested, shall automatically vest
and be exercisable upon the date of such notification and the Executive shall
be entitled to exercise such Options along with any other Options which had
previously vested but were unexercised at the time of notification of
termination within a period of 120 days after such notification, but not
thereafter.

 

4.3           Notwithstanding the terms of the Plan, upon the
occurrence of a Change of Control (as defined in the Plan attached hereto as
Appendix C), then one half of any Options under the Plan or otherwise which
have not yet vested at the time of the Change of Control shall automatically vest upon the date of closing of the sale or issuance of the
securities triggering the Change of Control. In addition, if the Executive is
terminated without just cause after such Change of Control, all remaining
Options under the Plan or otherwise which have not yet vested shall
automatically vest. The Executive shall be entitled to exercise the Options
which vest pursuant to the application of this Section 4.3 together with
any Options which had previously vested but were not yet exercised at the time
of the Change of Control.

 

4.4           Notwithstanding the
terms of the Plan, if the Company completes a Qualified IPO (as defined in the
Plan), then three quarters of any of the Options whether under the Plan or
otherwise which have not yet vested at the time of the Qualified IPO shall
automatically vest on the date the Company becomes a reporting issuer. The
Executive shall be entitled to exercise the Options which vest pursuant to the
application of this Section 4.4 together with any Options which had
previously vested but were not yet exercised at the time of the Qualified IPO.

 

4.5           The
exercise of any Options shall at all times be subject to obtaining any
applicable regulatory or legal approval.

 

4.6           Except
as otherwise provided in Article 4 herein, the terms of the Plan shall
govern. In the event of any inconsistency between the Plan and Article 4
herein, the terms of this Article 4 shall prevail.

 

4

 

ARTICLE 5

BENEFITS

 

5.1           Group Insurance and
Pension

 

The Executive shall be eligible for any group medical,
dental, insurance and pension programs applicable to the executives of the
Company, upon the establishment of such programs by the Company and as per the
terms and conditions of such programs. The Company hereby undertakes to
establish as soon as possible, a medical, dental and insurance program covering,
at a minimum, 80% of such costs. The Company hereby agrees to pay or reimburse
the Executive for provincial health care programs not paid through source
deductions.

 

5.2           Vacation

 

The Executive shall be entitled to 20 Business Days
(as defined in Section 12.11) of annual paid vacation during each year. Unused
vacation may not be carried over for more than twelve months after the
completion of each fiscal year.

 

5.3           Expenses

 

The
Executive shall be reimbursed for all out-of-pocket expenses incurred on behalf
of the Company within 15 days following receipt of an expense report received
by the Company in respect of such expenses.

 

ARTICLE 6

RELOCATION OF THE EXECUTIVE

 

6.1           Timing

 

The
Executive shall relocate to the City of Vancouver, or other centre proximal to
the City of Vancouver within eight (8) months after the Effective Date
(the “Relocation”); provided, however
that the Executive shall not be required to relocate until 30 days
following the Second Closing as defined in the Investment Agreement of even
date herewith. Notwithstanding the immediately preceding sentence, and subject
to Section 6.2 and Section 6.3, the Executive may at his sole
discretion, relocate in accordance with this Article 6 prior to the Second
Closing as defined in the Investment Agreement of even date herewith.

 

6.2           Moving Expenses

 

The
Company shall reimburse the Executive for all out-of-pocket expenses in respect
of the Relocation up to a maximum of Twenty-Five Thousand Dollars ($25,000).

 

5

 

6.3           Relocation Loan

 

In
consideration for the difference between housing prices in the Executive’s
current city of residence and the City of Vancouver, the Company shall advance
to the Executive, an interest-free loan (the “Loan”)
in an amount representing the difference between the Executive’s current
residence and a similar residence in the City of Vancouver, considering
equivalent neighborhoods and locations; provided, however that the Loan shall
not exceed One Hundred and Fifty Thousand Dollars ($150,000). The Loan shall be
repayable to the Company over a term of Ten (10) years except if the CEO
resigns or is terminated for just cause in which case the loan shall be
repayable in full within 60 days of such resignation or termination. The Company
shall increase the Executive’s Base Salary, such that the Executive shall not
be out-of-pocket for any taxes payable as a result of the Loan being considered
a taxable benefit.

 

ARTICLE 7 

TERMINATION OF THIS AGREEMENT

 

7.1           Notwithstanding
any other provisions herein but subject to Section 12.8 hereof, and
without prejudice to rights accrued to the Executive to the Date of Termination
(as defined herein), this Agreement shall terminate automatically upon the
death of the Executive or on the Date of Termination. The “Date of
Termination” will be, as applicable, the date the Company terminates
the Executive in accordance with Section 7.2, or the date the Company
requests the Executive to cease his duties under this Agreement or the
Executive resigns for Constructive Dismissal in accordance with Section 7.4
hereof, or the date the Executive commences his retirement in accordance with Section 7.5
hereof, or the date determined in accordance with Section 7.6 hereof.

 

7.2           Nothing
in this Agreement shall restrict or impair the Company’s right to terminate the
employment of the Executive without compensation:

 

(a)           at
any time by notice in writing from the Company to the Executive for just cause,
which without limiting the generality of the foregoing, shall include:

 

(i)            serious
misconduct;

(ii)           breach
of fiduciary duty;

(iii)          failure to obey the lawful direction of the
Board;

(iv)          fraud;

(v)           theft;

(vi)          willful
breach or habitual neglect of significant and material duties the Executive is
required to perform; and

(vii)         material breach of a restrictive covenant of
this Agreement.

 

(b)           the
Executive declines to relocate to Vancouver in accordance with Article 6;

 

(c)           if the
Executive shall become permanently disabled, at any time by notice in writing
from the Company to the Executive. For purposes of this subsection 7.2
(c), the Executive shall be deemed to be permanently disabled immediately
following:

 

6

 

(i)            any period of 365 consecutive days during which he is prevented,
notwithstanding reasonable efforts to accommodate the disability, from
performing his essential duties as an executive of the Company for more than
182 days in the aggregate by reason of illness or mental or physical
disability; or

 

(ii)           his being found of unsound mind or
incapable of managing his own affairs by the final judgement or order of a
court of competent jurisdiction.

 

7.3           For
the purposes of this Agreement, “Constructive Dismissal”
shall be deemed to have occurred if there exists any material adverse change
without the prior written consent of the Executive in the title, status,
position, job function, compensation or reporting responsibilities of the
Executive from those current on the Effective Date.

 

7.4           At
any time, the Company may terminate the Executive in accordance with this Section 7.4.
In the event employment of the Executive is terminated by the Company for
reasons other than for just cause, or the Executive resigns as a result of a
Constructive Dismissal, the Executive shall be entitled to the following:

 

(a)           twelve
(12) months compensation in lieu of notice inclusive of Base Salary and Bonus
(the “Severance”), which Severance will be
calculated as an average of the Base Salary plus Bonus paid to the Executive in
the two year period (or such lesser period as is applicable in the event the
Executive is terminated in accordance with this Section 7.4 less than 2
years from the Effective Date) immediately prior the commencement of the
Severance Period (as defined herein). The foregoing amounts may be paid to the
Executive in a lump sum or by salary continuance for the twelve (12) month
period following termination (such twelve month period being the “Severance Period”) at the Company’s sole discretion;

 

(b)           any
payment to the Executive under this Section 7.4 shall be deemed to include
all required termination and/or severance payments pursuant to the provisions
of the Employment Standards Act (British
Columbia) as amended from time to time; and

 

(c)           to
the extent that such insurance plans permit, continued entitlement under all
group medical, dental and insurance plans, excluding short and long term
disability plans and pension plan, to which the Executive is entitled at the
time of termination of employment; such continuation of benefit entitlement
shall be for a period equal to the Severance Period or until the date the
Executive becomes employed elsewhere wherein comparable benefits are provided,
whichever date comes first. To the extent the continuance of certain benefit
plans is not permitted including short and long term disability, the Company
shall pay to the Executive, no later than thirty (30) days after the Date of
Termination, an amount equal to fifteen per cent (15%) of the Executive’s Base
Salary in effect immediately prior to the Date of Termination for the Severance
Period.

 

7

 

7.5           This
Agreement is terminated, without prejudice to rights accrued to the Executive
to the Date of Termination, when the Executive commences his retirement.

 

7.6           The Executive may, by providing two months notice in writing to the
Company (the “Notice Period”),
terminate this Agreement and his employment with the Company. In such
circumstance, the Company may request that the Executive cease duties prior to
the expiry of the Notice Period. The Company shall, in such event, pay to the
Executive an amount equal to the difference between what the Executive would
have received had the employment of the Executive been continued for the Notice
Period and the amount actually paid by the Company to the Executive during the
Notice Period. In the event the Executive provides such notice to the Company,
the “Date of Termination” shall mean
the last day on which the Executive works for the Company.

 

ARTICLE 8 

NON-COMPETITION

 

8.1           During
the term of this Agreement and for twelve (12) months following the termination
of this Agreement, the Executive will not, within Canada or the United States,
without the written consent of the Company:

 

(a)           own or have any interest directly in, save and
except for an interest of less 5% in a publicly traded company;

 

(b)           act as an officer, director, agent, employee or
consultant of; or

 

(c)           assist in any way or in any capacity,

 

any person, firm, association, syndicate,
partnership, joint venture, collaboration, corporation or other entity that is
engaged in a business that is substantially similar to or that competes with
the Business.

 

8.2           The
term “Business” as used herein means the
development and commercialization of the Company Intellectual Property and such
other business plans as approved by the Board from time to time.

 

ARTICLE 9 

NON-SOLICITATION

 

9.1           The
Executive will not, for a period of twelve (12) months from the Date of
Termination of this Agreement:

 

(a)           directly or indirectly, either personally,
through an agent or by letters, circulars or advertisements, contact for the
purpose of solicitation or actually solicit any person, firm, association,
syndicate, joint venture, 

 

8

 

collaboration, corporation, business entity or
crown corporation who/which is or was a customer of the Company on or at any
time within the two years before the Date of Termination of this Agreement, or
who was scheduled to become a customer of the Company within twelve months
prior to the Date of Termination of this Agreement.

 

(b)           induce or attempt to induce any person:

 

(i)                  who was an employee of the Company
at the Date of Termination of this Agreement; or

 

(ii)                 who has been, during the six months before the
Date of Termination, an employee of the Company;

 

to leave the employ of the Company, whether to
join the Executive in a similar enterprise or otherwise.

 

(c)           either directly or indirectly, solicit, divert
or take away any staff, temporary personnel, trade, or business from the
Company, or otherwise compete for accounts or personnel which become known to
him or her through his or her relationship with the Company and agrees not to
influence or attempt to influence any of the Company’s customers, suppliers, or
resellers or personnel not to do business with the Company or take any action
which may be reasonably foreseen to result in harm to the Company.

 

ARTICLE 10 

CONFIDENTIALITY

 

Delivery of
Records

 

10.1         Any and
all computer code, data, notes, diagrams, reports, notebook pages, memoranda,
and like materials, including Confidential Information, as defined in Section 10.3
below, received from or developed for the Company and any copies or excerpts
thereof shall remain the property of the Company. Upon the termination of the
Executive’s relationship with the Company as established under this Agreement,
or at any time during the term hereof at the request of the Company, the
Executive shall deliver to the Company all such materials and other property
belonging to the Company or developed in connection with the Business.

 

Confidentiality

 

10.2         In the
course of carrying out and performing his or her duties and responsibilities to
the Company, the Executive shall obtain access to and be entrusted with
Confidential Information, as defined in Section 10.3 below, relating to
the Business.

 

9

 

10.3         The term
“Confidential Information” as used in
this Agreement means all trade secrets, proprietary information and other data
or information (and any tangible evidence, record or representation thereof),
whether prepared, conceived or developed by an employee or consultant of the
Company or received by the Company from an outside source which is maintained
in confidence by the Company or from any of its customers to obtain a
competitive advantage over competitors who do not have access to such trade
secrets, proprietary information, or other data or information. Without
limiting the generality of the foregoing, Confidential Information includes:

 

(a)           any
ideas, improvements, know-how, research, inventions, innovations, products,
services, sales, scientific or other formulae, patterns, processes, methods,
machines, manufactures, compositions, processes, procedures, tests, treatments,
developments, technical data, designs, devices, patterns, concepts, computer
programs, computer code, creative development, training or service manuals,
plans for new or revised services or products or other plans, items or strategy
methods on compilation of information, or works in process that relate to the
Business, or that result from its marketing, research and/or development
activities;

 

(b)           any
information relating to the relationship of the Company with any clients,
customers, suppliers, principals, contacts or prospects of the Company and any
information relating to the requirements, specifications, proposals, orders,
contracts or transactions of or with any such clients, customers, suppliers,
principals, contacts or prospects of the Company, including but not limited to
client lists;

 

(c)           any
sales plan, marketing material, plan or survey, business plan or opportunity,
product or service development plan or specification, business proposal or
business agreement; and

 

(d)           any
information relating to the present or proposed Business.

 

10.4         The
Executive agrees that the Confidential Information is and will remain the
exclusive property of the Company. The Executive also agrees that the
Confidential Information:

 

(a)           constitutes
a proprietary right which the Company is entitled to protect; and

 

(b)           constitutes
information and knowledge not generally known to the trade.

 

10.5         The
Executive understands that the Company has from time to time in its possession
information belonging to others or which is claimed by others to be
confidential or proprietary and which the Company has agreed to keep
confidential. The Executive agrees that all such information shall be
Confidential Information for the purposes of this Agreement.

 

10.6         For
purposes of the copyright laws of the United States of America, to the extent,
if any, that such laws are applicable to any Confidential Information, it shall
be considered a work made for hire and the Company shall be considered the
author thereof.

 

10

 

10.7         The
Executive acknowledges and agrees that any Confidential Information disclosed
to the Executive is in the strictest confidence and the Executive agrees to
maintain and hold in strict confidence all Confidential Information disclosed
to him or her. The disclosure of any such Confidential Information by the
Executive in any form whatsoever except (i) as required in performance by
the Executive of his duties hereunder and in furtherance of the best interest
of the Company, (ii) as authorized by the Company including under a
Company approved non-disclosure agreement, or (iii) as permitted under section 10.10
of this Agreement, is and shall be considered a fundamental breach of this
Agreement and shall entitle the Company to terminate immediately this Agreement
without further payment to the Executive.

 

10.8         Except
in accordance with this Article 10, the Executive shall not:

 

(a)           duplicate, transfer, disclose or use nor allow
any other person to duplicate, transfer or disclose any of the Confidential
Information; or

 

(b)           incorporate, in whole or in part, within any
domestic or foreign patent application that is not for the benefit of the
Company, any proprietary or Confidential Information disclosed to the Executive
by the Company.

 

10.9         The
Executive will safeguard all Confidential Information to which the Executive
has access at all times so that it is not exposed to or used by unauthorized
persons, and will exercise at least the same degree of care that he would use
to protect his or her own confidential information.

 

10.10       The
restrictive obligations set forth above shall not apply to the disclosure or
use of any Confidential Information which:

 

(a)           is or later becomes publicly known under
circumstances involving no breach of this Agreement by the Executive;

 

(b)           is already known to the Executive outside his
or her work for the Company at the time of receipt of the Confidential
Information;

 

(c)           is lawfully made available to the Executive by
a third party; or

 

(c)           is required by law to be disclosed
but only to the extent of such requirement and the Executive shall immediately
notify in writing the Board of the Company upon receipt of any request for such
disclosure.

 

ARTICLE 11

INTELLECTUAL PROPERTY

 

11.1         As used in this Article 11,
the following words and phrases are defined as follows:

 

11

 

(a)           “UBC Licenses”
means the licenses entered into by the University of British Columbia and the
Company effective November 1, 2001 which define the terms under which the
Company has acquired an exclusive license to certain technology.

 

(b)           “Company
Intellectual Property” means all ideas, concepts, business and trade
names, trademarks, know-how, trade secrets, inventions, improvements, devices,
methods, processes and discoveries, whether patentable or not, and whether or
not reduced to writing or other tangible form or to actual or constructive
practice which either:  (i) are part of the technology licensed
to the Company under the UBC Licenses; or (ii) are otherwise developed or
acquired on behalf of or by the Company.

 

11.2         The Executive
acknowledges and agrees that the Company is currently engaged in the
development and commercialization of the Company Intellectual Property (the “Technology”). In consideration of the Executive’s employment
by the Company, the Executive hereby transfers and assigns to the Company all
intellectual property rights, arising during the term of this Agreement in and
to all ideas, know-how, discoveries, inventions, documents or other information
relating to the Technology as well as any copyright and other rights in any
designs, plans, specifications, documents or other work relating to the
Technology.

 

11.3         The
Executive agrees that any and all ideas, discoveries, inventions and
improvements thereon (“Inventions”)
which he may conceive or make during the period of his employment, either alone
or jointly with others, whether or not reduced to practice, relating or in any
way appertaining to or connected with the Technology shall be the sole and
exclusive property of the Company. The Executive will, whenever so requested by
the Company, execute any and all applications, assignments, and other
instruments which the Company shall deem necessary in order to apply for and
obtain letters patent of Canada or foreign countries for said Inventions or for
any other reason.

 

11.4         The
Executive further acknowledges and agrees that all copyright and other rights
in any designs, plans, specifications, documents or other work (“Work”) he creates during the period of his employment with
the Company, whether or not such Work is created in the course of his
employment, relating to the Technology or to the Business, shall be the sole
and exclusive property of the Company. The Executive hereby assigns all such
rights to the Company. The Executive will, whenever so requested by the
Company, execute any and all applications, assignments, and other instruments
which the Company shall deem necessary in order to apply for and obtain
registration of copyright in any Work in Canada or foreign countries.

 

11.5         The
Executive waives all moral rights or author’s rights in any Work he may create.

 

11.6         At
the commencement of his employment, and at all times during the term of this
Agreement, the Executive will promptly disclose to the Company all Inventions
he has

 

12

 

conceived
or created, whether in the course of his employment or otherwise, relating to
the Business.

 

11.7         The
foregoing obligations shall continue beyond the termination of the term of this
Agreement with respect to any and all Inventions or Work conceived or made by
the Executive during the term hereof and shall be binding on the Executive’s
assigns, executors, administrators or other legal representatives.

 

ARTICLE 12

MISCELLANEOUS

 

12.1         This
Agreement shall be the whole and complete agreement between the Parties with
respect to the employment of the Executive; it replaces and supersedes any and
all previous verbal or written agreements that may have been entered into, and
may not be amended or modified except by written amendment signed between the
Parties hereto.

 

12.2         In the event that any
part of this Agreement shall be determined at any time to be invalid, such
provisions shall be deemed severable and deleted herefrom and the remainder of
this Agreement shall constitute the whole agreement of the Parties hereto and
shall, except as hereinbefore provided, continue in full force and effect.

 

12.3         The Executive hereby
confirms that he is not a party to any agreement or under any other obligation
to anyone, including any former employer nor does the Executive have any other
interest which is inconsistent with or in conflict with or which would prevent,
limit or impair the Executive’s performance of any obligations hereunder which
the Executive has not disclosed in writing to the Company. The Executive
acknowledges that the Company is not requesting the Executive disclose any
confidential information which the Executive may have obtained from a former employer.

 

12.4         The Executive
acknowledges that a breach by the Executive of any of the covenants contained
in sections 8, 9, 10 and 11 of this Agreement shall result in damages to the
Company and that the Company could not be adequately compensated for such
damages by a monetary award. Accordingly, in the event of any such breach, in
addition to all other remedies available to the Company at law or in equity,
the Company shall be entitled as a matter of right to apply to a court of
competent jurisdiction for such relief by way of restraining order, temporary
or permanent injunction, decree or otherwise, as may be appropriate to ensure
compliance with the provisions of this Agreement.

 

12.5         The Executive
acknowledges that the restrictions contained in sections 8, 9, 10 and 11 are
reasonable and valid and the Executive hereby waives all defences to the strict
enforcement thereof by the Company.

 

12.6         The Executive acknowledges that he has had
independent legal advice regarding the execution of this Agreement and that he
understands the contents of this agreement and that

 

13

 

he or she is executing the same voluntarily and without pressure from
the Company or anyone on its behalf.

 

12.7         This
Agreement shall enure to the benefit of and be binding upon the Parties hereto,
their respective successors, heirs, representatives, administrators and the
assigns of the Company. The Executive shall not assign or transfer this
Agreement or any of his rights or obligations hereunder.

 

12.8         The
provisions of Articles 4, 8, 9, 10, 11 and 12 shall survive the termination of
this Agreement.

 

12.9         Any
amount payable under this Agreement shall be paid in Canadian currency.

 

12.10       This Agreement shall be governed by and
construed according to the laws of the Province of British Columbia, and both
Parties hereby agree that the Courts of the Province of British Columbia have
exclusive jurisdiction in any dispute, action, cause or action or otherwise
that may arise from this Agreement.

 

12.11       Any
notice or other communication or writing required or permitted to be given
under this Agreement or for the purposes of this Agreement shall be in writing
and shall be sufficiently given if delivered personally, or if transmitted by
facsimile transmission (with original to follow by mail) or other form of
recorded communication, tested prior to transmission, to:

 

(a)           if
to the Company:

D-9, 2733 Heather Street

Vancouver, British Columbia V5Z 3J5

Telephone:     604-875-5686

Facsimile:      604-875-5604

Attention:      Dr. Martin
Gleave

 

(b)           if
to the Executive:

Scott
D. Cormack

409 –
18 Avenue N.W.

Calgary, Alberta T2M 0T5

Telephone:     403-284-3646

Facsimile:      403-283-6753

 

or to such other address as the party to
whom such notice is to be given shall have last notified the party giving the
same in the manner provided in this Section. Any notice so delivered shall be
deemed to have been given and received on the day it is so delivered at such
address, provided that such day is not a Business Day then the notice shall be
deemed to have been given and received on the Business Day next following the
day it is so delivered. Any notice so transmitted by facsimile transmission or
other form of

 

14

 

recorded communication shall be deemed to
have been given and received on the day of its confirmed transmission (as
confirmed by the transmitting medium), provided that if such day is not a
Business Day then the notice shall be deemed to have been given and received on
the Business Day next following such day. “Business Day”
means any day that is not a Saturday, Sunday or civic or statutory holiday in
the Province of British Columbia;

 

12.12       No amendment or waiver of
any provision of this Agreement shall be binding on any party unless consented
to in writing by such party and approved by the Board in the case of the
Company. No waiver of any provision of this Agreement shall constitute a waiver
of any other provision nor shall any waiver constitute a continuing waiver
unless otherwise provided.

 

IN
WITNESS WHEREOF this Agreement has been executed the 21 day
of December,  2001 by the parties hereto.

 

 

	
  SIGNED, SEALED
  AND DELIVERED

  	
  )

  	
   

  
	
  in the presence
  of

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  /s/ [illegible]

  	
   

  	
  )

  	
  /s/ Scott
  Cormack

  	
   

  
	
  Witness)

  	
  )

  	
  SCOTT
  D. CORMACK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ONCOGENEX
  TECHNOLOGIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Martin
  Gleave

  	
   

  
					

 

15

 

APPENDIX A

 

ONCOGENEX TECHNOLOGIES INC.

 

 

Bonus Plan – Milestones

 

Any bonus paid will be allocated to the achievement of particular
milestones and overall performance as follows:

 

(a)   20% of Base Salary for successfully filing an
IND for OGX-011

(b)   10% of Base Salary for selection, as approved
by the Board, of a second product for pre-clinical development

(c)   5% of Base Salary for overall company
performance.

(d)   5% of Base Salary for the completion of at
least one additional licensing agreement with UBC, other academic institution
or company which results in the company acquiring additional drug target(s) or
therapeutic(s).

 

16

 

APPENDIX B

 

EXTERNAL BOARD
APPOINTMENTS

 

1)             Salpep Biotechnology Inc.

 

2)             Kinexus Bioinformatics Corporation

 

3)             Milestone Medica Corporation Advisory Board

 

17

 

APPENDIX C

 

ONCOGENEX TECHNOLOGIES INC.

 

STOCK OPTION PLAN

 

18

 

SCHEDULE ”A”

 

ONCOGENEX
TECHNOLOGIES INC.

 

STOCK OPTION
PLAN

OPTION AGREEMENT

 

This
Option Agreement is entered into between OncoGenex Technologies Inc. (the “Company”) and the Optionee named below pursuant to the
Company Stock Option Plan as amended (the “Plan”), a copy
of which is attached hereto, and confirms that:

 

1.             on January 1, 2002 (the “Grant Date”);

 

2.             Scott D. Cormack (the “Optionee”);

 

3.             was granted the option (the “Option”)
to purchase 570,000 common shares (the “Option Shares”)
of the Company;

 

4.             for the price (the “Option Price”)
of $0.80 per share;

 

5.             which shall be exercisable (“Vested”)
in whole or in part in the following amounts on or after the following dates:

 

i)      as to 140,000 shares, as at the Effective Date of the Optionee’s
Employment Agreement.

 

ii)     as to 26,875 shares, at the end of every calendar quarter starting on March 31,
2002.

 

6.             terminating on the January 1, 2009 (the “Expiry Date”);

 

all
on the terms and subject to the conditions set out in the Plan. For greater
certainty, once Option Shares have become Vested, they continue to be
exercisable until the termination or cancellation thereof as provided in this
Option Agreement and the Plan.

 

By
signing this Option Agreement, the Optionee acknowledges that the Optionee has
read and understands the Plan and agrees to the terms and conditions of the
Plan and this Option Agreement.

 

In
order to exercise this Option, the Optionee must deliver to the Company:

 

(a)           a notice of exercise in the form attached hereto as Exhibit No. 1,
duly completed and executed together with a certified cheque for payment for
all Option Shares in respect of which the Option is exercised; and

 

 

(b)           if required by the Company in order for the Company to comply with the
Shareholders’ Agreement (as defined in the Plan), a counterpart to the
Shareholders’ Agreement in a form acceptable to the Company duly and originally
executed by the Optionee.

 

IN WITNESS WHEREOF
the parties hereto have executed this Option Agreement as of the 1st day of January ,
2002.

 

 

	
  SIGNED, SEALED
  AND DELIVERED

  	
  )

  	
   

  
	
  in the presence
  of

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
   

  	
   

  	
  )

  	
   

  
	
  Witness

  	
  )

  	
  OPTIONEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ONCOGENEX
  TECHNOLOGIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

20

 

EXHIBIT NO. 1 TO OPTION
AGREEMENT

 

EXERCISE
FORM

 

TO:                         OncoGenex Technologies Inc.

 

D-9, 2733 Heather Street

Vancouver, British Columbia V5Z 3J5

Telephone:      604-875-5686

Facsimile:       604-875-5604

Attention:       
Dr. Martin Gleave

 

I,
the undersigned holder of the attached Option Agreement with OncoGenex
Technologies Inc. (the “Company”),
hereby exercise my Option and agree to acquire             
common shares of the Company (the “Acquired Shares”)
and enclose a certified cheque in the amount of $             
representing the exercise price (Option Price multiplied by number of shares
being acquired) for the Acquired Shares.

 

I
hereby request that the Company issue the Acquired Shares to me under the
OncoGenex Technologies Inc. Stock Option Plan and irrevocably direct that the
Acquired Shares be issued registered in the following name and address and
delivered as follows:

 

	
  Name in Full

  	
   

  	
  Registered Address

  	
   

  	
  Delivery Address

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

(PLEASE
PRINT IN FULL THE NAME IN WHICH CERTIFICATES ARE TO BE ISSUED.)

 

DATED
this          day of                              ,
          .

 

	
   

  	
   

  
	
   

  	
  Signature of Optionee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name of Optionee

  

 

21

 

EMPLOYMENT
AMENDING AGREEMENT

 

THIS AGREEMENT, made as of the 10th day of August, 2005

 

BETWEEN:

 

ONCOGENEX TECHNOLOGIES INC. a corporation incorporated under the laws of Canada and having an
office at Vancouver, British Columbia

 

(together with any subsidiaries hereinafter referred
to as the “Company”).

 

OF THE FIRST PART

 

AND:

 

SCOTT CORMACK,
an individual residing in Richmond, British Columbia

 

(hereinafter referred to as the “Executive”)

 

OF THE SECOND PART

 

WHEREAS the Company and the Executive entered into
an employment agreement dated December 21, 2001 (the “Employment Agreement”)
relating to the employment of the Executive;

 

AND
WHEREAS the Company
and the Executive wish to amend the terms of the Employment Agreement as
provided herein;

 

NOW THEREFORE in consideration of the mutual covenants and
agreements herein contained and other good and valuable consideration (the
receipt and sufficiency of which are hereby acknowledged) the parties agree as
follows:

 

1.             CONSTRUCTION

 

Terms
having a capitalized first letter and not otherwise defined herein shall have
the meaning ascribed to them in the Employment Agreement.

 

2.             AMENDMENT

 

2.1           Article 3.1
of the Employment Agreement is hereby deleted and replaced with the following:

 

“3.1         In consideration of the services provided by the Executive hereunder,
the Company shall, as of January 1, 2006, pay to the Executive an annual
base salary in the amount of Two Hundred and Eighty Thousand Dollars ($280,000)
as increased from time to time in accordance with Section 3.2 (“Base Salary”), payable in such manner as may be agreeable to
the Parties and in compliance with any applicable legislation.”

 

 

2.2           Article 4.2
of the Employment Agreement is hereby deleted and replaced with the following:

 

“4.2         Notwithstanding the terms of the Plan, if the Company notifies the
Executive of the termination, without just cause, of his employment, or the
Executive resigns as a result of Constructive Dismissal (as defined in Section 7.3
hereof), any options (“Options”) to
purchase shares in the capital of the Company which have been granted to the
Executive i) prior to July 13, 2005, whether under the plan or otherwise,
and which have not yet vested, shall automatically vest and be exercisable upon
the date of such notification and the Executive shall be entitled to exercise
such Option within a period of 7 years from the grant date of such options, but
not thereafter, ii) after July 13, 2005, whether under the Plan or
otherwise, and which at the date of termination were vested, shall be
exercisable by the Executive until the expiry date specified in the Option
agreement or the date which is 365 days after such notification, whichever is
sooner, but not thereafter.”

 

3.             GENERAL

 

The
Employment Agreement as amended by this Agreement comprises the entire
agreement between the Parties with respect to the Executive’s provision of
services to the Corporation and replaces and supersedes any and all previous
verbal or written agreements that may have been entered into.  For clarity, except as provided in Article 2
herein, the Employment Agreement remains unamended and in full force and effect
between the parties to this Agreement. 
This Agreement may not be amended or modified except by written
amendment signed between the Parties hereto.

 

This
Agreement may be executed by the parties in separate counterparts and by
facsimile, each of which such counterparts when so executed and delivered shall
be deemed to constitute one and the same instrument.

 

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

 

	
   

  	
  ONCOGENEX TECHNOLOGIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Per:

  	
  /s/ Martin Gleave

  
	
   

  	
   

  	
  (Authorized Signatory)

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Sherry Tryssenaar

  	
   

  	
  /s/ Scott Cormack

  
	
  Witness

  	
   

  	
  SCOTT CORMACK

  
	
  S. Tryssenaar

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]