Document:

September 30, 2008 10-Q EXHIBIT 10.2

Exhibit 10.2 

SEPARATION AGREEMENT

This Separation Agreement (the "Agreement") is made effective as of September 10, 2008, by and between Leiv
Lea ("Executive") and Pharmacyclics, Inc. (the "Company").

RECITALS

A.Executive serves as the Vice President, Finance and Administration and Chief Financial Officer and Secretary of the Company, and
Executive has expressed his intention to terminate his employment with the Company, effective upon the Termination Date (as defined
below).

B.Executive and the Company wish to enter into this Agreement to set forth the terms and conditions related to Executive's termination
of employment with the Company.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the parties agree as follows:

	Termination Date.  Executive acknowledges that his employment with the Company will end due to his voluntary resignation
effective November 1, 2008 (the "Termination Date").  On the Termination Date, the Company shall pay Executive all
accrued but unpaid salary, and all accrued and unused vacation earned through the Termination Date, subject to any applicable withholding
required under federal, state or local law.  Executive is entitled to these amounts regardless of whether Executive revokes this Agreement (as
described in Section 6(e) below).  

	Separation Payments and Benefits.  The Company hereby agrees, subject to the execution hereof by both parties and Executive's
continued service with the Company through the Termination Date, to provide Executive the severance benefits set forth below, provided that
Executive does not revoke the Agreement as described in Section 6(e) below.  

(a)Severance Payments.  The Company shall provide Executive with severance payments which in aggregate equal
Executive's annual base salary of $267,883.00, which payments shall be made as follows:  (i) a lump sum payment of $22,323.58 on the
Company's first regular payroll date occurring in each of November 2008 and December 2008, and (ii) a lump sum payment of $223,235.84 on
January 2, 2009.    

(b)Stock Options.  As of the Termination Date, Executive shall become fully vested with respect to any previously
unvested portion of any outstanding option to purchase shares of the Company's common stock which was previously granted to Executive
(each, a "Stock Option").  In addition, as of the Termination Date, each Stock Option shall remain exercisable until the
earlier of (i) the date occurring three years after the Termination Date, or (ii) the date on which the right to exercise the Stock Option would have
expired had Executive continued to be employed by the Company for the full term of such Stock Option.

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(c)Healthcare.  In the event that Executive elects, following the Termination Date, to receive continued coverage
under the Company's medical and dental benefit plans pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
("COBRA") for himself and/or his eligible dependents, the Company shall pay the monthly COBRA premium for Executive
for the twelve (12) month period following the Termination Date.   

(d)Taxes.  Executive understands and agrees that all payments under this Agreement will be subject to any
applicable withholding required under federal, state or local law.  

	Transition Services.  Executive agrees that upon reasonable request of the Company, during the period commencing on the
Termination Date and ending on December 31, 2008, Executive shall cooperate with the Company in accomplishing a smooth and orderly
transition of Executive's former job responsibilities to other employees of the Company.  In this regard, Executive agrees to respond in a timely
fashion to the questions which may reasonably be presented by the Company.  Such cooperation and responses shall not entitle Employee to
any additional compensation beyond the severance payments and benefits described above.  In addition, any transition services requested by
the Company pursuant to this Section 3 shall not unreasonably interfere with Executive's other gainful employment or efforts to secure gainful
employment during such period and in no event shall the level of bona-fide services required by this Section 3 exceed 20% of the average level
of bona-fide services performed by Executive during the 36-month period preceding the Termination Date.    

	Full Payment.  Executive acknowledges that the payment and arrangements herein shall constitute full and complete satisfaction
of any and all amounts properly due and owing to Executive as a result of his employment with the Company and the termination thereof.  

	General Release.  In exchange for the severance payments and benefits  provided for in Section 2, Executive releases and
forever discharges the Company and each of its subsidiaries, affiliates, officers, directors, employees, and agents and all of their predecessors
and successors ("Releasees") from any and all claims that legally can be released that Executive may have against the
Releasees, whether known or unknown, arising out of Executive's employment with the Company or the termination of that employment.  This
waiver and release of claims is full and complete, and includes, without limitation, any claim of constructive discharge, harassment, or wrongful
termination, any claims under Title VII of the 1964 Civil Rights Act, the Americans With Disabilities Act, the Age Discrimination in Employment
Act, the Family and Medical Leave Act, the California Fair Employment and Housing Act, the California Family Rights Act, the Employee
Retirement Income Security Act, the state and federal Worker Adjustment Retraining and Notification Acts, or any other applicable federal, state,
or local law, rule, regulation or order, claims for breach of contract or covenant, whether express or implied, negligent or intentional infliction of
emotional distress, misrepresentation, fraud, breach of statute or public policy, defamation, or any claims alleging tort or other wrongful conduct
under common law, as well as any claim for additional compensation in any form, including salary, bonus or incentive compensation, sick leave
benefits, vacation benefits, compensatory time, severance pay,  or otherwise and all other

                                                    2

claims of any kind arising out of my employment,
including claims for attorney's fees and costs.  The matters that are the subject of the release referred to in this Section shall be referred to
collectively as the "Released Matters".  

Notwithstanding the foregoing, Executive does not release the following claims and rights:  (a) Executive's
rights under this Agreement; (b) any claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of
applicable state law; (c) Executive's right, if any, to indemnity pursuant to the
California Labor Code; or (d) any other claims determined by law to be non-waivable.  

	Acknowledgements Related to ADEA.  Executive understands and acknowledges that:

	This Agreement constitutes a voluntary waiver of any and all rights and claims he has against the Company as of the date of the execution
of this Agreement, including rights or claims arising under the federal Age Discrimination in Employment Act, 29 U.S.C. 621, et
seq.

	He has waived rights or claims pursuant to this Agreement and in exchange for consideration, the value of which exceeds payment or
remuneration to which Executive was already entitled.

	He is hereby advised that he may consult with an attorney of his choosing concerning this Agreement prior to executing it.

	He has been afforded a period of at least twenty one (21) days to consider the terms of this Agreement, and in the event he should decide
to execute this Agreement in fewer than twenty one (21) days, he has done so with the express understanding that he has been given and
declined the opportunity to consider this Agreement for a full twenty one (21) days, and waives the balance of the twenty-one (21) day
period.

	He may revoke this Agreement at any time during the seven (7) days following the date of execution of this Agreement by providing written
notice to an authorized representative of the Company, and this Agreement shall not become effective or enforceable until such revocation
period has expired.  Executive understands that if he revokes this Agreement, he shall not be entitled to any of the benefits provided by this
Section 2 of this Agreement.

	California Section 1542 Waiver.  Executive acknowledges that he has read the provisions of California Civil Code Section 1542,
which provides as follows:

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of
executing the release, which if known to him or her must have materially affected his or her settlement with the debtor.

                                                    3

and that he expressly waives, relinquishes and forfeits all rights and benefits accorded by the provisions of California Civil Code
Section 1542 with respect to the Released Matters.

	Executive Representations.  Executive warrants and represents that (a) he has not initiated any adversarial proceedings of any
kind against the Company or any other Releasee, (b) he has been paid all compensation, wages, bonuses, commissions, and/or benefits to
which he may be entitled and no other compensation, wages, bonuses, commissions and/or benefits are due to him, except as described in this
Agreement, (c) he has no known workplace injuries or occupational diseases and has been provided and/or has not been denied any leave
requested under the Family and Medical Leave Act or the California Family Rights Act, and (d) on or before the Termination Date, Executive will
return to the Company all Company property in his possession.  

	No Assignment.  Executive warrants and represents that no portion of any of the Released Matters, and no portion of any recovery
or settlement to which Executive might be entitled, has been assigned or transferred to any other person, firm or corporation not a party to this
Agreement, in any manner, including by way of subrogation or operation of law or otherwise.  If any claim, action, demand or suit should be
made or instituted against the Company or any affiliate of the Company because of any such purported assignment, subrogation or transfer,
Executive agrees to indemnify and hold harmless the Company or any affiliate of the Company against such claim, action, suit or demand,
including necessary expenses of investigation, attorneys' fees and costs.

	Miscellaneous.  This Agreement is the entire agreement between the parties with regard to the subject matter hereof.
The Company and Executive acknowledge that the termination of the Executive's employment with the Company is intended to constitute a
separation from service for purposes of Section 409A of the Internal Revenue Code of 1986, as amended, and the related treasury regulations
promulgated thereunder.  Executive acknowledges that there are no other agreements, written, oral or implied, and that he may not rely on any
prior negotiations, discussions, representations or agreements.  This Agreement may be modified only in writing, and such writing must be
signed by both parties and recited that it is intended to modify this Agreement.  This Agreement will bind the heirs, personal representatives,
successors and assigns of both Executive and the Company, and inure to the benefit of both Executive and the Company and their heirs,
successors and assigns.  If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination
will not affect any other provision of this Agreement and the provision in question will be modified by the court so as to be rendered enforceable
insofar as possible under applicable law.  This Agreement will be deemed to have been entered into and will be construed and enforced in
accordance with the laws of the State of California without regard to conflicts of law principles.  This Agreement may be executed in separate
counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.  

(Signature page follows)

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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of the date indicated next to
their respective signatures below.

 

 

	 	 	
EXECUTIVE

	
Date: September 12, 2008
	 	
/s/ Leiv Lea

Leiv Lea

 

	 	 	
PHARMACYCLICS, INC.

 

	
Date: September 15, 2008
	 	
By: /s/ Robert W. Duggan

Robert W. Duggan

Its: Chairman and Interim CEOSeptember 30, 2008 10-Q EXHIBIT 10.3

Exhibit 10.3 

PHARMACYCLICS, INC.

2004 INCENTIVE AWARD PLAN

RESTRICTED STOCK AWARD GRANT NOTICE AND

RESTRICTED STOCK AWARD AGREEMENT

Pharmacyclics, Inc., a Delaware corporation, (the "Company"), pursuant to its 2004
Incentive Award Plan (the "Plan"), hereby grants to the individual listed below
("Participant"), the number of shares of the Company's common stock set forth below (the
"Shares").  This Restricted Stock Award is subject to all of the terms and conditions as set forth herein and in the
Restricted Stock Award Agreement attached hereto as Exhibit A (the "Restricted Stock Agreement")
(including without limitation the Restrictions on the Shares set forth in the Restricted Stock Agreement) and the Plan, each of which are
incorporated herein by reference.  Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this
Grant Notice and the Restricted Stock Agreement.

	
Participant:
	 
	
Grant Date:
	 
	
Total Number of Shares of
Restricted Stock:
	 
	
Purchase Price:
	 
	
Vesting Schedule:
	 

By his or her signature and the Company's signature below, Participant agrees to be bound by the terms and conditions
of the Plan, the Restricted Stock Agreement and this Grant Notice.  Participant has reviewed the Restricted Stock Agreement, the Plan and this
Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all
provisions of this Grant Notice, the Restricted Stock Agreement and the Plan.  Participant hereby agrees to accept as binding, conclusive and
final all decisions or interpretations of the Board or Committee as administrator of the Plan (the "Administrator") upon
any questions arising under the Plan, this Grant Notice or the Restricted Stock Agreement.  If Participant is married, his or her spouse has
signed the Consent of Spouse attached to this Grant Notice as Exhibit B.

	
PHARMACYCLICS, INC.: 
	
PARTICIPANT:

	
By: _____________________
	
By: _____________________

	
Print Name: _____________________
	
Print Name: _____________________

	
Title: _____________________
	
  

	
Address: _____________________

             _____________________

             _____________________
	
Address: _____________________

             _____________________

EXHIBIT A

TO RESTRICTED STOCK AWARD GRANT NOTICE

PHARMACYCLICS, INC. RESTRICTED STOCK AWARD AGREEMENT

Pursuant to the Restricted Stock Award Grant Notice (the "Grant Notice") to which this
Restricted Stock Award Agreement (the "Agreement") is attached, Pharmacyclics, Inc., a Delaware corporation (the
"Company") has granted to Participant the right to receive the number of shares of Restricted Stock under the 2004
Incentive Award Plan, as amended from time to time (the "Plan"), as set forth in the Grant Notice.

ARTICLE I.

  GENERAL

1.1    Definitions.  All capitalized terms used in this Agreement without definition
shall have the meanings ascribed in the Plan and the Grant Notice.

1.2    Incorporation of Terms of Plan.  The Award is subject to the terms and conditions of the Plan which are
incorporated herein by reference.  In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall
control.

ARTICLE II.

  AWARD OF RESTRICTED STOCK

2.1    Award of Restricted Stock.  

(a)Award.  In consideration of the Participant's agreement to remain in the service or employ of the Company
or one of its Subsidiaries, and for other good and valuable consideration which the Administrator has determined exceeds the aggregate par
value of the Stock subject to the Award (as defined below), as of the Grant Date, the Company issues to the Participant the Award described in
this Agreement (the "Award").  The number of shares of Restricted Stock (the "Shares")
subject to the Award is set forth in the Grant Notice.  The Participant is an Employee, Consultant or member of the Board.

(b)Purchase Price; Book Entry Form.  The purchase price of the Shares is set forth on the Grant Notice.  The
Shares will be issued in uncertificated form.  At the sole discretion of the Administrator, the Shares will be issued in either (i) uncertificated form,
with the Shares recorded in the name of the Participant in the books and records of the Company's transfer agent with appropriate notations
regarding the restrictions on transfer imposed pursuant to this Agreement, and upon vesting and the satisfaction of all conditions set forth in
Section 2.2(c), the Company shall cause certificates representing the Shares to be issued to the Participant; or (ii) certificate form pursuant to
the terms of Sections 2.1(c) and (d). 

(c)Legend.  Certificates representing Shares issued pursuant to this Agreement shall, until all
restrictions on transfer imposed pursuant to this Agreement lapse or shall have been removed and new certificates are issued, bear the
following legend (or such other legend as shall be determined by the Administrator):

                                                    A-1

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY BE SUBJECT TO CERTAIN VESTING
REQUIREMENTS AND MAY BE SUBJECT TO FORFEITURE UNDER THE TERMS OF THAT CERTAIN RESTRICTED STOCK AWARD
AGREEMENT, DATED __________, BY AND BETWEEN PHARMACYCLICS, INC. AND THE REGISTERED OWNER OF SUCH SHARES,
AND SUCH SHARES MAY NOT BE, DIRECTLY OR INDIRECTLY, OFFERED, TRANSFERRED, SOLD, ASSIGNED, PLEDGED,
HYPOTHECATED OR OTHERWISE DISPOSED OF UNDER ANY CIRCUMSTANCES, EXCEPT PURSUANT TO THE PROVISIONS OF
SUCH AGREEMENT."

(d)Escrow.  The Secretary of the Company or such other escrow holder as the Administrator may
appoint may retain physical custody of the certificates representing the Shares until all of the restrictions on transfer imposed pursuant to this
Agreement lapse or shall have been removed; in such event the Participant shall not retain physical custody of any certificates representing
unvested Shares issued to him.

2.2    Restrictions.

(a)Forfeiture.  Any Award which is not vested as of the date the Participant ceases to be an Employee or
Consultant of the Company or one of its Subsidiaries or a member of the Board of the Company shall thereupon be forfeited immediately and
without any further action by the Company.  For purposes of this Agreement, "Restrictions" shall mean the
restrictions on sale or other transfer set forth in Section 3.2 and the exposure to forfeiture set forth in this Section 2.2(a).

(b)Vesting and Lapse of Restrictions.  Subject to Section 2.2(a), the Award shall vest and restrictions shall
lapse in accordance with the vesting schedule set forth on the Grant Notice.  

(c)Tax Withholding; Conditions to Issuance of Certificates.  Notwithstanding any other provision of this
Agreement (including without limitation Section 2.1(b)): 

	No new certificate shall be delivered to the Participant or his legal representative unless and until the Participant or
his legal representative shall have paid to the Company the full amount of all federal and state withholding or other taxes applicable to the
taxable income of Participant resulting from the grant of Shares or the lapse or removal of the restrictions.   

	The Company shall not be required to issue or deliver any certificate or certificates for any Shares prior to the
fulfillment of all of the following conditions:  (A) the admission of the Shares to listing on all stock exchanges on which such Stock is then listed,
(B) the completion of any registration or other qualification of the Shares under any state or federal law or under rulings or regulations of the
Securities and Exchange Commission or other governmental regulatory body, which the Administrator shall, in its sole and absolute discretion,
deem necessary and advisable, (C) the obtaining of any approval or other clearance from any state or federal governmental agency that the
Administrator shall, in its absolute discretion, determine to be necessary or advisable and (D) the lapse of any such reasonable period of time
following the date the Restrictions lapse as the Administrator may from time to time establish for reasons of administrative
convenience.

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ARTICLE III.

  OTHER PROVISIONS

3.1    Section 83(b) Election.  Participant understands that Section 83(a) of
the Code taxes as ordinary income the difference between the amount, if any, paid for the shares of Stock and the Fair Market Value of such
shares at the time the Restrictions on such shares lapse.  Participant understands that, notwithstanding the preceding sentence, Participant
may elect to be taxed at the time of the Grant Date, rather that at the time the Restrictions lapse, by filing an election under Section 83(b)
of the Code (an "83(b) Election") with the Internal Revenue Service within 30 days of the Grant Date. In the event
Participant files an 83(b) Election, Participant will recognize ordinary income in an amount equal to the difference between the amount, if any,
paid for the shares of Stock and the Fair Market Value of such shares as of the Grant Date.  Participant further understands that an additional
copy of such 83(b) Election form should be filed with his or her federal income tax return for the calendar year in which the date of this
Agreement falls.  Participant acknowledges that the foregoing is only a summary of the effect of United States federal income taxation with
respect to the award of Restricted Stock hereunder, and does not purport to be complete. Participant further acknowledges that the Company is
not responsible for filing the Participant's 83(b) Election, and the Company has directed Participant to seek independent advice regarding the
applicable provisions of the INTERNAL REVENUE Code, the income tax laws of any municipality, state or foreign country in which Participant
may reside, and the tax consequences of Participant's death.

3.2    Restricted Stock Not Transferable.  No Shares subject to the Restrictions herein or any interest or right
therein or part thereof shall be liable for the debts, contracts or engagements of the Participant or his successors in interest or shall be subject
to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary
or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including
bankruptcy), and any attempted disposition thereof shall be null and void and of no effect; provided, however, that this Section 3.2
notwithstanding, with the consent of the Administrator, the Shares may be transferred to certain persons or entities related to Participant,
including but not limited to certain members of Participant's family, charitable institutions or trusts or other entities whose beneficiaries or
beneficial owners are members of Participant's family or to such other persons or entities as may be expressly approved by the Administrator,
pursuant to any such conditions and procedures the Administrator may require.

3.3    Rights as Stockholder.  Except as otherwise provided herein, upon the Grant Date the Participant shall
have all the rights of a stockholder with respect to the Shares, subject to the Restrictions herein, including the right to vote the Shares and the
right to receive any cash or stock dividends paid to or made with respect to the Shares; provided, however, that at the discretion of the
Company, and prior to the delivery of Shares, the Participant may be required to execute a stockholders agreement in such form as shall be
determined by the Company.

3.4    Not a Contract of Employment.  Nothing in this Agreement or in the Plan shall confer upon the Participant
any right to continue to serve as an employee or other service provider of the Company or any of its Subsidiaries.

3.5    Governing Law.   The laws of the State of Delaware shall govern the interpretation, validity, administration,
enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of
laws.

                                                    A-3

3.6    Conformity to Securities Laws.  The Participant acknowledges that the Plan and this Agreement are
intended to conform to the extent necessary with all provisions of the Securities Act of 1933, as amended, and the Exchange Act, and any and
all regulations and rules promulgated thereunder by the Securities and Exchange Commission, including without limitation Rule 16b-3 under the
Exchange Act.  Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Awards are granted, only in such a
manner as to conform to such laws, rules and regulations.  To the extent permitted by applicable law, the Plan and this Agreement shall be
deemed amended to the extent necessary to conform to such laws, rules and regulations.

3.7    Amendment, Suspension and Termination.  To the extent permitted by the Plan, this Agreement may be
wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator or the
Board, provided, that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this
Agreement shall adversely affect the Award in any material way without the prior written consent of the Participant.

3.8    Notices.  Any notice to be given under the terms of this Agreement to the Company shall be addressed to
the Company in care of the Secretary of the Company at the address given beneath the signature of the Company's authorized officer on the
Grant Notice, and any notice to be given to Participant shall be addressed to Participant at the address given beneath Participant's signature on
the Grant Notice.  By a notice given pursuant to this Section 3.8, either party may hereafter designate a different address for notices to be given
to that party.  Notices required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or
upon deposit in the United States mail by certified mail, with postage and fees prepaid.

3.9    Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or
multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company.  Subject to the Restrictions,
this Agreement shall be binding upon Participant and his or her heirs, executors, administrators, successors and assigns.

3.10    Limitations Applicable to Section 16 Persons.  Notwithstanding any other provision of the Plan or this
Agreement, if Participant is subject to Section 16 of the Exchange Act, the Plan and this Agreement shall be subject to any additional limitations
set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act)
that are requirements for the application of such exemptive rule.  To the extent permitted by applicable law, this Agreement shall be deemed
amended to the extent necessary to conform to such applicable exemptive rule.

                                                    A-4

EXHIBIT B

TO RESTRICTED STOCK AWARD GRANT NOTICE

CONSENT OF SPOUSE

I, ____________________, spouse of _______________, have read and approve the foregoing Agreement.
In consideration of issuing to my spouse the shares of the common stock of Pharmacyclics, Inc. set forth in the Agreement, I hereby appoint my
spouse as my attorney-in-fact in respect to the exercise of any rights under the Agreement and agree to be bound by the provisions of the
Agreement insofar as I may have any rights in said Agreement or any shares of the common stock of Pharmacyclics, Inc. issued pursuant
thereto under the community property laws or similar laws relating to marital property in effect in the state of our residence as of the date of the
signing of the foregoing Agreement.

	
Dated: _______________, _____
	 	
________________________________   

Signature of Spouse

   

   

   

   

   

                                                    B-1

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