Exhibit 10.30


 


PONIARD
PHARMACEUTICALS, INC.

AMENDED AND RESTATED

KEY EMPLOYEE SEVERANCE AGREEMENT


 


This Amended
and Restated Key Employee Severance Agreement (this “Agreement”), dated as
of February 24, 2009, is entered into by and between PONIARD PHARMACEUTICALS,
INC., a Washington corporation (as supplemented by Section 10 hereof, the “Company”), and
Michael K. Jackson (the “Employee”)
to reflect amendments made in December, 2008.


 


The Board of
Directors of the Company (the “Board”) has determined that it is in the best interests
of the Company and its shareholders to ensure that the Company will have the
continued dedication of the Employee, notwithstanding the fact that the
Employee does not have any form of traditional employment contract or other assurance
of job security.  The Board believes it
is imperative to diminish any distraction of the Employee arising from the
personal uncertainty and insecurity that arises in the absence of any assurance
of job security by providing the Employee with reasonable compensation and
benefit arrangements in the event of termination of the Employee’s employment
by the Company under certain defined circumstances.


 


In order to
accomplish these objectives, the Board has caused the Company to enter into
this Agreement.


 


1.                                      Term


 


The initial
term of this Agreement (the “Initial Term”) shall be for a period of one (1) year
from the date of this Agreement as first appearing above; provided, however,
that this Agreement shall automatically renew for successive additional one (1) year
periods (“Renewal Terms”)
unless notice of nonrenewal is given by either party to the other party at
least nine (9) months prior to the end of the Initial Term or any Renewal
Term.  The “Term” of this Agreement shall be the
Initial Term plus all Renewal Terms and, if applicable, the duration of the
Employment Period.  At the end of the
Term, this Agreement shall terminate without further action by either the
Company or the Employee.


 


2.                                      Employment
at Will


 


The Employee
and the Company acknowledge that, except as may otherwise be provided under any
other written agreement between the Employee and the Company, the employment of
the Employee by the Company or any affiliated companies is “at will” and may be
terminated by either the Employee or the Company or its affiliated companies at
any time with or without cause, subject to the termination payments prescribed
herein.


 


3.                                      Attention
and Effort


 


During any
period of time that the Employee remains in the employ of the Company, and
excluding any periods of vacation and sick leave to which the Employee is
entitled, the Employee will devote all of the Employee’s productive time,
ability, attention and effort to the business and affairs of the Company and
the discharge of the responsibilities assigned to the


 

















 


Employee
hereunder, and will seek to perform faithfully and efficiently such
responsibilities.  It shall not be a
violation of this Agreement for the Employee to (a) serve on corporate,
civic or charitable boards or committees, (b) deliver lectures, fulfill
speaking engagements or teach at educational institutions, (c) manage
personal investments, or (d) engage in activities permitted by the
policies of the Company or as specifically permitted by the Company, so long as
such activities do not significantly interfere with the performance of the
Employee’s responsibilities in accordance with this Agreement.  It is expressly understood and agreed that to
the extent any such activities have been conducted by the Employee prior to the
Term, the continued conduct of such activities (or the conduct of activities
similar in nature and scope thereto) during the Term shall not thereafter be
deemed to interfere with the performance of the Employee’s responsibilities to
the Company.


 


4.                                      Termination


 


During the
Term, employment of the Employee may be terminated as follows, but, in any
case, the nondisclosure provisions set forth in Section 7 hereof shall
survive the termination of this Agreement and the termination of the Employee’s
employment with the Company:


 


4.1           Termination by the Company or the Employee


 


At any time
during the Term, the Company may terminate the employment of the Employee with
or without Cause (as defined below), and the Employee may terminate the
Employee’s employment for Good Reason (as defined below) or for any reason,
upon giving a Notice of Termination (as defined below).


 


4.2           Automatic Termination


 


This Agreement
and the Employee’s employment during the Term shall terminate automatically
upon the death or Total Disability of the Employee.  The term “Total Disability” as used herein shall
mean the Employee’s inability (with such accommodation as may be required by
law and which places no undue burden on the Company), as determined by a
physician selected by the Company and acceptable to the Employee, to perform
the Employee’s essential duties for a period or periods aggregating twelve (12)
weeks in any three hundred sixty-five (365) day period as a result of physical
or mental illness, loss of legal capacity or any other cause beyond the Employee’s
control, unless the Employee is granted a leave of absence by the Board.


 


4.3           Notice of Termination


 


Any
termination by the Company or by the Employee during the Term shall be
communicated by a Notice of Termination to the other party given in accordance
with Section 9 hereof.  The term “Notice of Termination”
shall mean a written notice that (a) indicates the specific termination
provision in this Agreement relied upon and (b) to the extent applicable,
sets forth in reasonable detail the facts and circumstances claimed to provide
a basis for termination of the Employee’s employment under the provision so
indicated.  The failure by the Employee
or the Company to set forth in the Notice of Termination any fact or
circumstance that contributes to a showing of Good Reason or Cause shall not
waive any right of the Employee or the Company hereunder or preclude the
Employee or the Company from asserting such fact or circumstance in enforcing
the Employee’s or the Company’s rights hereunder.


 


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4.4           Date of Termination


 


“Date of Termination”
means (a) if the Employee’s employment is terminated by reason of death,
the last day of the calendar month in which the Employee’s death occurs, (b) if
the Employee’s employment is terminated by reason of Total Disability,
immediately upon a determination by the Company of the Employee’s Total
Disability, and (c) in all other cases, ten (10) days after the date
of personal delivery or mailing of the Notice of Termination.  The Employee’s employment and performance of
services will continue during such ten (10) day period; provided, however,
that the Company may, upon notice to the Employee and without reducing the
Employee’s compensation during such period, excuse the Employee from any or all
of the Employee’s duties during such period. 
Notwithstanding anything contained in this Agreement to the contrary,
the date on which a “separation from service” (“Separation
from Service”) pursuant to Section 409A of the Internal
Revenue Code of 1986, as amended (“Code Section 409A”),
occurs shall be the “Date of Termination” or termination of employment for
purposes of determining the timing of payments under this Agreement to the
extent necessary to have such payments and benefits under this Agreement be
exempt from the requirements of Code Section 409A or comply with the
requirements of Code Section 409A.


 


5.                                      Termination
Payments


 


In the event
of termination of the Employee’s employment during the Term, all compensation
and benefits shall terminate, except as specifically provided in this Section 5.


 


5.1           Termination
by the Company Other Than for Cause or by the Employee for Good Reason


 


If during the
Term the Company terminates the Employee’s employment other than for Cause or
the Employee terminates the Employee’s employment for Good Reason, the Employee
shall be entitled to:


 


(a)           receive
payment of the following accrued obligations (the “Accrued Obligations”):


 


(i)            the
Employee’s then current annual base salary through the Date of Termination to
the extent not theretofore paid;


 


(ii)           any
compensation previously deferred by the Employee (together with accrued
interest or earnings thereon, if any); and


 


(iii)          any accrued vacation pay that would be
payable under the Company’s standard policy, in each case to the extent not
theretofore paid;


 


(b)           have
the Company pay for six (6) months after the Date of Termination or until
the Employee qualifies for comparable medical and dental insurance benefits
from another employer, whichever occurs first, the Employee’s premiums for
health insurance benefit continuation for the Employee and the Employee’s
family members, if applicable, that the Company provides to the Employee under
the provisions of the federal Consolidated Omnibus Budget Reconciliation Act of
1985, as amended (“COBRA”),
to


 


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the extent that the Company would have paid such premiums had the
Employee remained employed by the Company (such continued payment is
hereinafter referred to as “COBRA Continuation”); and


 


(c)           an
amount as severance pay equal to fifty percent (50%) of the Employee’s then
current annual base salary for the fiscal year in which the Date of Termination
occurs, subject to payment as set forth in Sections 5.5 and 5.9 hereof.


 


5.2           Termination for Cause or Other Than for Good Reason


 


If during the
Term the Employee’s employment shall be terminated by the Company for Cause or
by the Employee for other than Good Reason, this Agreement shall terminate
without further obligation on the part of the Company to the Employee, other
than the Company’s obligation to pay the Employee the Accrued Obligations to
the extent theretofore unpaid.


 


5.3           Expiration of Term


 


In the event
the Employee’s employment is not terminated prior to expiration of the Term,
this Agreement shall terminate without further obligation on the part of the
Company to the Employee.


 


5.4           Termination Because of Death or Total Disability


 


If during the
Term the Employee’s employment is terminated by reason of the Employee’s death
or Total Disability, this Agreement shall terminate automatically without
further obligation on the part of the Company to the Employee or the Employee’s
legal representatives under this Agreement, other than the Company’s obligation
to pay the Employee the Accrued Obligations (which shall be paid to the
Employee’s estate or beneficiary, as applicable in the case of the Employee’s
death) and to provide COBRA Continuation.


 


5.5           Payment Schedule


 


All payments
of Accrued Obligations, or any portion thereof payable pursuant to this Section 5,
other than deferred compensation pursuant to Section 5.1(a)(ii) hereof,
shall be made to the Employee within ten (10) working days of the Date of
Termination.  Deferred compensation
pursuant to Section 5.1(a)(ii) hereof shall be payable pursuant to
the terms of the deferred compensation program. 
Any severance payments payable to the Employee pursuant to Section 5.1(c) hereof
shall be made to the Employee in the form of salary continuation, payable at
normal payroll intervals during the six (6) month period following the
Date of Termination.  Notwithstanding the
preceding provisions of this Section 5.5, if any payment or benefit
pursuant to this Agreement constitutes a “deferral of compensation” subject to
Code Section 409A (after taking into account, to the maximum extent
possible, any applicable exemptions) (a “409A Payment”)
treated as payable to a Specified Employee (as defined in Section 19.1
hereof) upon Separation from Service, the provisions of Section 19.1 hereof
shall apply.  Section 5.8 hereof
must be satisfied to receive payments and benefits under this Agreement.


 


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5.6           Cause


 


For purposes
of this Agreement, “Cause”
means cause given by the Employee to the Company and shall include, without
limitation, the occurrence of one (1) or more of the following events:


 


(a)           a
clear refusal to carry out any material lawful duties of the Employee or any
directions of the Board or senior management of the Company reasonably
consistent with those duties;


 


(b)           persistent
failure to carry out any lawful duties of the Employee or any directions of the
Board or senior management reasonably consistent with those duties; provided,
however, that the Employee has been given reasonable notice and opportunity to
correct any such failure;


 


(c)           violation
by the Employee of a state or federal criminal law involving the commission of
a crime against the Company or any other criminal act involving moral
turpitude;


 


(d)           current
abuse by the Employee of alcohol or controlled substances; deception, fraud,
misrepresentation or dishonesty by the Employee; or any incident materially
compromising the Employee’s reputation or ability to represent the Company with
investors, customers or the public; or


 


(e)           any
other material violation of any provision of this Agreement by the Employee,
subject to the notice and opportunity-to-cure requirements of Section 8
hereof.


 


5.7           Good Reason


 


For purposes
of this Agreement, “Good
Reason” means:


 


(a)           material
reduction of the Employee’s annual base salary to a level below the level in
effect on the date of this Agreement, regardless of any change in the Employee’s
duties or responsibilities;


 


(b)           the
assignment to the Employee of any duties materially inconsistent with the
Employee’s position, authority, duties or responsibilities or any other action
by the Company that results in a material diminution in such position,
authority, duties or responsibilities, excluding for this purpose an isolated
and inadvertent action not taken in bad faith and that is remedied by the
Company promptly after receipt of notice thereof given by the Employee;


 


(c)           the
Company’s requiring the Employee to be based at any office or location more
than fifty (50) miles from the city in which the Employee is currently employed
by the Company, i.e., San Francisco, California or Seattle, Washington;


 


(d)           any
failure by the Company to comply with and satisfy Section 10 hereof;
provided, however, that the Company’s successor has received at least ten (10) days’
prior


 


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written notice from the Company or the Employee of the requirements of Section 10
hereof; or


 


(e)           any
other material violation of any provision of this Agreement by the Company;


 


provided, however, that the
Employee has notified the Company of such salary reduction, assignment,
failure, situation or violation within ninety (90) days of its occurrence and
there has been compliance with the notice and opportunity-to-cure requirements
of Section 8 hereof.


 


5.8           General Release of Claims


 


As a condition
to receiving the payments and benefits under this Section 5 other than
Accrued Obligations set forth in Sections 5.1(a)(i) and 5.1(a)(iv) hereof,
the Employee shall execute (and not later revoke) a general release and waiver
of all claims against the Company, which release and waiver shall be in a form
satisfactory to the Company, in its sole discretion, and delivered to the
Company no later than the seventh day of the third month of the fiscal year
following the year in which the Date of Termination occurs.  By way of example and not limitation, the
general release and waiver of claims will include any claims for wages,
bonuses, employment benefits, or damages of any kind whatsoever, arising out of
any contracts, express or implied, any covenant of good faith and fair dealing,
express or implied, any theory of wrongful discharge, any legal restriction on
the Company’s right to terminate employment, or any federal, state or other
governmental statute or ordinance, including, without limitation, Title VII of
the Civil Rights Act of 1964, the federal Age Discrimination in Employment Act,
the Americans with Disabilities Act, the Family and Medical Leave Act, the
Washington Law Against Discrimination, or any other legal limitation on the
employment relationship.  To the extent
any payment or benefit is a 409A Payment, the provisions of Section 19.3
hereof shall apply.


 


5.9           Dispute Regarding Existence of Good Reason for
Termination


 


In the event the
Company disputes whether Good Reason existed for the Employee to terminate the
Employee’s employment for Good Reason, the Company shall pay salary
continuation as provided in Section 5.5 until the earliest of (a) settlement
by the parties, (b) determination by arbitration in accordance with Section 14
hereof that Good Reason did not exist, and (c) completion of the payments
required by Section 5.5 and Section 5.1(c) hereof.  If, pursuant to Section 14 hereof, an
arbitrator determines that Good Reason did not exist, the arbitrator shall also
decide whether the Employee had a reasonable, good-faith basis for claiming
that there was Good Reason to terminate. 
If the arbitrator determines that there was not such a basis, the
Employee shall be obligated to repay promptly to the Company the salary
continuation payments; if the arbitrator determines that there was such a
basis, the Employee shall not be obligated to repay the salary continuation.


 


6.                                      Representations,
Warranties and Other Conditions


 


In order to induce
the Company to enter into this Agreement, the Employee represents and warrants
to the Company as follows:


 


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6.1           Health


 


The Employee
is in good health and knows of no physical or mental disability that, with any
accommodation that may be required by law and that places no undue burden on
the Company, would prevent the Employee from fulfilling the Employee’s obligations
hereunder.  The Employee agrees, if the
Company requests, to submit to reasonable periodic medical examinations by a
physician or physicians designated by, paid for and arranged by the Company.  The Employee agrees that each examination’s
medical report shall be provided to the Company.


 


6.2           No Violation of Other Agreements


 


The Employee
represents that neither the execution nor the performance of this Agreement by
the Employee will violate or conflict in any way with any other agreements or
obligations by which the Employee may be bound.


 


7.                                      Nondisclosure;
Return of Materials


 


7.1           Nondisclosure


 


Except as
required by the Employee’s employment with the Company, the Employee will not,
at any time during the term of employment by the Company, or at any time
thereafter, directly, indirectly or otherwise, use, communicate, disclose,
disseminate, lecture upon or publish articles relating to any confidential,
proprietary or trade secret information of the Company without the prior
written consent of the Company.  The
Employee understands that the Company will be relying on this Agreement in
continuing the Employee’s employment, paying the Employee’s compensation,
granting the Employee any promotions or raises, or entrusting the Employee with
any information that helps the Company compete with others.


 


7.2           Return of Materials


 


All documents,
records, notebooks, notes, memoranda, drawings or other documents made or
compiled by the Employee at any time while employed by the Company, or in the
Employee’s possession, including any and all copies thereof, shall be the
property of the Company and shall be held by the Employee in trust and solely
for the benefit of the Company, and shall be delivered to the Company by the
Employee upon termination of employment or at any other time upon request by
the Company.


 


8.                                      Notice
and Cure of Breach


 


Whenever a
breach of this Agreement by either party is relied upon as justification for
any action taken by the other party pursuant to any provision of this
Agreement, other than clause (a), (b), (c) or (d) of Section 5.6
hereof, before such action is taken, the party asserting the breach of this
Agreement shall give the other party at least twenty (20) days’ prior written
notice of the existence and the nature of such breach before taking further
action hereunder and shall give the party purportedly in breach of this
Agreement the opportunity to correct such breach during the twenty (20) day
period.


 


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9.                                      Form of
Notice


 


Every notice
required by the terms of this Agreement shall be given in writing by serving
the same upon the party to whom it was addressed personally or by registered or
certified mail, return receipt requested, at the address set forth below or at
such other address as may hereafter be designated by notice given in compliance
with the terms hereof:


 


	
  If to the Employee:

  	
  Michael K. Jackson

  11719 NE 105th Lane

  Kirkland, WA 98033-5039

  
	
   

  	
   

  
	
  If to the Company:

  	
  Poniard
  Pharmaceuticals, Inc.

  300 Elliott Avenue West, Suite 500

  Seattle, WA 98119

  Attn: Chief Executive Officer

  
	
   

  	
   

  
	
  With a copy to:

  	
  Perkins Coie LLP

  1201 Third Avenue, Suite 4800

  Seattle, WA 98101-3099

  Attn: James R. Lisbakken

  



 


Except as set forth in Section 4.4
hereof, if notice is mailed, such notice shall be effective upon mailing.


 


10.                               Assignment


 


This Agreement
is personal to the Employee and shall not be assignable by the Employee.


 


The Company
shall assign to and require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all the
business and/or assets of the Company to assume expressly and agree to perform
this Agreement in the same manner and to the same extent that the Company would
be required to perform it if no such succession had taken place.  As used in this Agreement, “Company” shall mean
Poniard Pharmaceuticals, Inc. and any affiliated company or successor to
its business and/or assets as aforesaid that assumes and agrees to perform this
Agreement by contract, operation of law or otherwise; and as long as such
successor assumes and agrees to perform this Agreement, the termination of the
Employee’s employment by one such entity and the immediate hiring and
continuation of the Employee’s employment by the succeeding entity shall not be
deemed to constitute a termination or trigger any severance obligation under
this Agreement.  All the terms and
provisions of this Agreement shall be binding upon and inure to the benefit of
and be enforceable by the parties hereto and their respective successors and
permitted assigns.


 


11.                               Waivers


 


No delay or
failure by any party hereto in exercising, protecting or enforcing any of its
rights, titles, interests or remedies hereunder, and no course of dealing or
performance with


 


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respect
thereto, shall constitute a waiver thereof. 
The express waiver by a party hereto of any right, title, interest or
remedy in a particular instance or circumstance shall not constitute a waiver
thereof in any other instance or circumstance. 
All rights and remedies shall be cumulative and not exclusive of any
other rights or remedies.


 


12.                               Amendments
in Writing


 


No amendment,
modification, waiver, termination or discharge of any provision of this
Agreement, or consent to any departure therefrom by either party hereto, shall
in any event be effective unless the same shall be in writing, specifically
identifying this Agreement and the provision intended to be amended, modified,
waived, terminated or discharged and signed by the Company and the Employee,
and each such amendment, modification, waiver, termination or discharge shall
be effective only in the specific instance and for the specific purpose for
which given.  No provision of this Agreement
shall be varied, contradicted or explained by any oral agreement, course of
dealing or performance or any other matter not set forth in an agreement in
writing and signed by the Company and the Employee.


 


13.                               Applicable
Law


 


This Agreement
shall in all respects, including all matters of construction, validity and
performance, be governed by, and construed and enforced in accordance with, the
laws of the State of Washington, without regard to any rules governing
conflicts of laws.


 


14.                               Arbitration;
Attorneys’ Fees


 


Except in
connection with enforcing Section 7 hereof, for which legal and equitable
remedies may be sought in a court of law, any dispute arising under this
Agreement shall be subject to arbitration. 
The arbitration proceeding shall be conducted in accordance with the
Commercial Arbitration Rules of the American Arbitration Association (the “AAA Rules”) then in
effect, conducted by one (1) arbitrator either mutually agreed upon or
selected in accordance with the AAA Rules. 
The arbitration shall be conducted in King County, Washington, under the
jurisdiction of the Seattle office of the American Arbitration
Association.  The arbitrator shall have
authority only to interpret and apply the provisions of this Agreement, and
shall have no authority to add to, subtract from or otherwise modify the terms
of this Agreement.  Any demand for
arbitration must be made within sixty (60) days of the event(s) giving
rise to the claim that this Agreement has been breached.  The arbitrator’s decision shall be final and
binding, and each party agrees to be bound by the arbitrator’s award, subject
only to an appeal therefrom in accordance with the laws of the State of
Washington.  Either party may obtain
judgment upon the arbitrator’s award in the Superior Court of King County,
Washington.


 


If it becomes
necessary to pursue or defend any legal proceeding, whether in arbitration or
court, in order to resolve a dispute arising under this Agreement, the
prevailing party in any such proceeding shall be entitled to recover its
reasonable costs and attorneys’ fees.  To
the extent necessary to prevent the Employee from being subject to any
additional tax pursuant to Code Section 409A(a)(1)(B), any amounts payable
to the Employee pursuant to this paragraph shall be paid in no event later than
the year following the year during which such costs and fees were incurred.


 


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15.                               Severability


 


If any
provision of this Agreement shall be held invalid, illegal or unenforceable in
any jurisdiction, for any reason, including, without limitation, the duration
of such provision, its geographical scope or the extent of the activities
prohibited or required by it, then, to the full extent permitted by law, (a) all
other provisions hereof shall remain in full force and effect in such
jurisdiction and shall be liberally construed in order to carry out the intent
of the parties hereto as nearly as may be possible, (b) such invalidity,
illegality or unenforceability shall not affect the validity, legality or
enforceability of any other provision hereof, and (c) any court or
arbitrator having jurisdiction thereover shall have the power to reform such
provision to the extent necessary for such provision to be enforceable under
applicable law.


 


16.                               Excess
Parachute Payments


 


If any portion
of the payments or benefits under this Agreement or any other agreement or
benefit plan of the Company (including stock options) would be characterized as
an “excess parachute payment” to the Employee under Section 280G of the
Internal Revenue Code of 1986, as amended (the “Code”), the Employee shall be paid any
excise tax that the Employee owes under Code Section 4999 as a result of
such characterization, such excise tax to be paid to the Employee at least ten (10) days
prior to the date that the Employee is obligated to make the excise tax
payment.  The determination of whether
and to what extent any payments or benefits would be “excess parachute payments”
and the date by which any excise tax shall be due shall be determined in
writing by recognized tax counsel selected by the Company and reasonably
acceptable to the Employee.  Without
limitation on the foregoing, the payments made pursuant to this Section 16
shall be made no later than the end of the year following the year in which the
Employee remits such excise tax to the Internal Revenue Service.


 


17.                               Entire
Agreement


 


This Agreement
supersedes and replaces the Amended and Restated Key Employee Severance
Agreement, dated as of June 30, 2008, between the parties and constitutes
the entire agreement between the Company and the Employee with respect to the
subject matter hereof, and all prior or contemporaneous oral or written
communications, understandings or agreements between the Company and the
Employee with respect to such subject matter are hereby superseded and
nullified in their entireties, except that the Proprietary Information and
Invention Agreement between the Employee and the Company shall continue in full
force and effect to the extent not superseded by Section 7 hereof.


 


18.                               Withholding


 


The Company
may withhold from any amounts payable under this Agreement such federal, state
or local taxes as shall be required to be withheld pursuant to any applicable
law or regulation.


 


19.                               409A
Interpretation Provision


 


The parties
intend that this Agreement and the payments and benefits provided hereunder be
exempt from the requirements of Code Section 409A to the maximum extent
possible,


 


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whether
pursuant to the short-term deferral exception described in Treasury Regulation Section 1.409A-1(b)(4),
the involuntary separation pay plan exception described in Treasury Regulation Section 1.409A-l(b)(9)(iii),
or otherwise.  To the extent Code Section 409A
is applicable to this Agreement, the parties intend that this Agreement comply
with the deferral, payout and other limitations and restrictions imposed under
Code Section 409A.  Notwithstanding
anything herein to the contrary, this Agreement is intended to be interpreted
and operated to the fullest extent possible so that the payments and benefits
under this Agreement either shall be exempt from the requirements of Code Section 409A
or shall comply with the requirements of such provision; provided, however,
that notwithstanding anything to the contrary in this Agreement in no event
shall the Company be liable to the Employee for or with respect to any taxes,
penalties or interest that may be imposed upon the Employee pursuant to Code Section 409A.


 


19.1         Payments to
Specified Employees


 


To the extent
that any payment or benefit pursuant to this Agreement constitutes a 409A
Payment treated as payable upon Separation from Service, then, if on the date
of the Employee’s Separation from Service, the Employee is a Specified
Employee, then to the extent required for the Employee not to incur additional
taxes pursuant to Code Section 409A, no such 409A Payment shall be made to
the Employee earlier than the earlier of (a) six (6) months after the
Employee’s Separation from Service or (b) the date of the Employee’s
death.  Should this Section 19
result in the delay of benefits, any such benefit shall be made available to
the Employee by the Company during such delay period at the Employee’s
expense.  Should this Section 19.1
result in a delay of payments or benefits to the Employee, on the first day any
such payments or benefits may be made without incurring additional tax pursuant
to Code Section 409A (“409A Payment Date”),
the Company shall make such payments and provide such benefits as provided for
in this Agreement, provided that any amounts that would have been payable
earlier but for the application of this Section 19.1 as well as
reimbursement of the amount the Employee paid for benefits pursuant to the
preceding sentence, shall be paid in a lump sum on the 409A Payment Date.  For purposes of this Section 19.1, the
term “Specified Employee” shall
have the meaning set forth in Code Section 409A, as determined in
accordance with the methodology established by the Company.


 


19.2         Reimbursements


 


For purposes
of complying with Code Section 409A and without extending the payment
timing otherwise provided in this Agreement, taxable reimbursements under this
Agreement, subject to the following sentence and to the extent required to
comply with Code Section 409A, will be made no later than the end of the
calendar year following the calendar year the expense was incurred.  To the extent required to comply with Code Section 409A,
any taxable reimbursements and any in-kind benefit under this Agreement will be
subject to the following:  (a) payment
of such reimbursements or in-kind benefits during one (1) calendar year
will not affect the amount of such reimbursements or in-kind benefits provided
during any other calendar year (other than for medical reimbursement
arrangements as excepted under Treasury Regulation Section 1.409A-3(i)(1)(iv)(B) solely
because the arrangement provides for a limit on the amount of expenses that may
be reimbursed under such arrangement over some or all of the period the
arrangement remains in effect); (b) such right to reimbursements or
in-kind benefits is not subject to liquidation or exchange for another form of
compensation to the Employee; and (c) the


 


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right to
reimbursements under this Agreement will be in effect for the lesser of the
time specified in this Agreement or ten (10) years plus the lifetime of
the Employee.  Any taxable reimbursements
or in-kind benefits shall be treated as not subject to Code Section 409A to the
maximum extent provided by Treasury Regulation Section 1.409A-1(b)(9)(v) or
otherwise under Code Section 409A.


 


19.3         Release


 


Subject to Section 19.1
hereof, (a) to the extent that the Employee is required to execute and
deliver a release to receive a 409A Payment and (b) this Agreement
provides for such 409A Payment to be provided prior to the 55th day following
the Employee’s Separation from Service, such 409A Payment will be provided upon
the 55th day following the Employee’s Separation from Service, provided that
the release in the form acceptable to the Company, in its sole discretion, has
been executed, delivered and effective prior to such time.  To the extent there is a delay in providing a
409A Payment because of the provisions of this Section 19.3, interest for
the delay and the opportunity for the Employee to pay for benefits in the
interim with subsequent reimbursement from the Company shall be provided in a
manner consistent with that set forth in Section 19.1 hereof.  If a release is required for a 409A Payment
and such release is not executed, delivered and effective by the 55th day
following the Employee’s Separation from Service, such 409A Payment shall not
be provided to the Employee to the extent that providing such 409A Payment
would cause such 409A Payment to fail to comply with Code Section 409A.


 


19.4         No
Acceleration; Separate Payments


 


No 409A
Payment payable under this Agreement shall be subject to acceleration or to any
change in the specified time or method of payment, except as otherwise provided
under this Agreement and consistent with Code Section 409A.  If under this Agreement, a 409A Payment is to
be paid in two (2) or more installments, for purposes of Section 409A,
each installment shall be treated as a separate payment.


 


20.                               Counterparts


 


This Agreement
may be executed in counterparts, each of which counterpart shall be deemed an
original, but all of which together shall constitute one and the same
instrument.


 


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IN WITNESS
WHEREOF, the parties have executed and entered into this Agreement effective on
the date first set forth above.


 


	
   

  	
  PONIARD PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Anna Lewak Wight

  
	
   

  	
   

  	
  Name: Anna Lewak Wight

  
	
   

  	
   

  	
  Its: Vice President, Legal

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael K. Jackson

  
	
   

  	
   

  	
  Name:
  Michael K. Jackson

  



 


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