Document:

Exhibit 10.22

 

CFO

 

PONIARD PHARMACEUTICALS, INC.

CHANGE OF CONTROL AGREEMENT

 

This Change of Control Agreement (this “Agreement”),
dated as of February 18, 2009, is entered into by and between PONIARD
PHARMACEUTICALS, INC., a Washington corporation (as supplemented by Section 13
hereof, the “Company”), and Greg Weaver
(the “Executive”).

 

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 Executive, notwithstanding the possibility, threat or occurrence of a
Change of Control (as defined in Section 1 hereof) of the Company.  The Board believes it is imperative to
diminish the inevitable distraction of the Executive arising from the personal
uncertainties and risks created by a pending or threatened Change of Control,
to encourage the Executive’s full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with reasonable compensation and benefit arrangements
upon a Change of Control.

 

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

 

1.                                      Definitions

 

1.1                                 “Change of Control” shall have the definition set forth
in Appendix A hereto, which is hereby incorporated by reference.

 

1.2                                 “Change of Control Date” shall mean the first date on
which a Change of Control occurs.

 

1.3                                 “Employment Period” shall mean the two (2) year
period commencing on the Change of Control Date and ending on the second
anniversary of such date.

 

1.4                                 “Severance Agreement” shall mean the Key Executive
Severance Agreement, dated as of the date hereof, between the parties, as it
may be amended from time to time, that provides for certain benefits related to
termination of the Executive’s employment that are unrelated to a Change of
Control.

 

2.                                      Term

 

The initial
term of this Agreement (“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 at least ninety (90) days prior to the end of the Initial Term or any
Renewal Term; and provided, further, that if a Change of Control occurs during
the Term, the Term shall automatically extend for the duration of the

 

 

Employment Period.  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 Executive.

 

3.                                      Employment

 

3.1                               Employment Period

 

During the Employment Period, the Company hereby agrees to continue the
Executive in its employ or in the employ of its affiliated companies, and the
Executive hereby agrees to remain in the employ of the Company or its
affiliated companies, in accordance with the terms and provisions of this
Agreement; provided, however, that either the Company or the Executive may
terminate the employment relationship subject to the terms of this Agreement.

 

3.2                               Position and Duties

 

During the Employment Period, the Executive’s position, authority,
duties and responsibilities shall be at least commensurate in all material
respects with the most significant of those held, exercised and assigned at any
time during the ninety (90) day period immediately preceding the Change of
Control Date.

 

3.3                               Location

 

During the Employment Period, the Executive’s services shall be
performed at the Company’s offices on the Change of Control Date at which the
Executive was employed (as of the date of this Agreement, Executive’s time is to
be split between the Company’s offices in Seattle, Washington and San
Francisco, California) or any office that is subsequently designated by the
Company and is less than thirty (30) miles from such locations.

 

3.4                               Employment at Will

 

The Executive and the Company acknowledge that, except as may otherwise
be provided under any other written agreement between the Executive and the
Company, the employment of the Executive by the Company or its affiliated
companies is “at will” and may be terminated by either the Executive or the
Company or its affiliated companies at any time with or without cause.  Moreover, if prior to the Change of Control
Date, the Executive’s employment with the Company or its affiliated companies
terminates for any reason, then the Executive shall have no further rights
under this Agreement; provided, however, that the Company may not avoid
liability for any termination payments that would have been required during the
Employment Period pursuant to Section 8 hereof by terminating the Executive
prior to the Employment Period where such termination is carried out in
anticipation of a Change of Control and the principal motivating purpose is to
avoid liability for such termination payments.

 

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4.                                      Attention
and Effort

 

During the Employment Period, and excluding any periods of vacation and
sick leave to which the Executive is entitled, the Executive will devote all of
the Executive’s productive time, ability, attention and effort to the business
and affairs of the Company and the discharge of the responsibilities assigned
to the Executive hereunder, and will use the Executive’s reasonable best
efforts to perform faithfully and efficiently such responsibilities.  It shall not be a violation of this Agreement
for the Executive 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 Executive’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 Executive prior to the Employment Period, the continued
conduct of such activities (or the conduct of activities similar in nature and
scope thereto) during the Employment Period shall not thereafter be deemed to
interfere with the performance of the Executive’s responsibilities to the
Company.

 

5.                                      Compensation

 

As long as the Executive remains employed by the Company during the
Employment Period, the Company agrees to pay or cause to be paid to the
Executive, and the Executive agrees to accept in exchange for the services
rendered hereunder by the Executive, the following compensation:

 

5.1                               Salary

 

The Executive shall receive an annual base salary (the “Annual
Base Salary”), at least equal to the annual salary established
by the Board or the Compensation Committee of the Board (the “Compensation
Committee”) or the Chief Executive Officer for the fiscal year
in which the Change of Control Date occurs. 
The Annual Base Salary shall be paid in substantially equal installments
and at the same intervals as the salaries of other executives of the Company
are paid.  The Board or the Compensation
Committee or the Chief Executive Officer shall review the Annual Base Salary at
least annually and shall determine in good faith and consistent with any
generally applicable Company policy any increases for future years.

 

5.2                               Bonus

 

In addition to the Annual Base Salary, the Executive shall be awarded,
for each fiscal year ending during the Employment Period, an annual performance
bonus (the “Annual Performance Bonus”) in
cash at least equal to the average annualized (for any fiscal year consisting
of less than twelve (12) full months) bonus paid or payable to the Executive by
the Company and its affiliated companies in respect of the Executive’s
performance during the three fiscal years (or such shorter period of
employment) immediately preceding the fiscal year in which the Change of
Control Date occurs.  Each Annual
Performance Bonus shall be paid in the fiscal year following the fiscal year
for which the Annual Performance Bonus is awarded, but no later than

 

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the fifteenth day of the third month of such subsequent fiscal year,
unless the Executive shall elect to defer the receipt of the Annual Performance
Bonus in accordance with the terms of the Company’s deferred compensation
program.

 

6.                                      Benefits

 

6.1                               Incentive, Retirement and Welfare Benefit
Plans; Vacation

 

As long as the Executive remains employed by the Company during the
Employment Period, the Executive shall be entitled to participate, subject to
and in accordance with applicable eligibility requirements, in such fringe
benefit programs as shall be generally made available to other executives of
the Company and its affiliated companies from time to time during the
Employment Period by action of the Board (or any person or committee appointed
by the Board to determine fringe benefit programs and other emoluments),
including, without limitation, paid vacations; any stock purchase, savings or
retirement plan, practice, policy or program; and all welfare benefit plans,
practices, policies or programs (including, without limitation, medical,
prescription, dental, disability, salary continuance, employee life, group
life, accidental death and travel accident insurance plans or programs).

 

6.2                               Expenses

 

As long as the Executive remains employed by the Company during the
Employment Period, the Executive shall be entitled to receive prompt reimbursement
for all reasonable employment expenses incurred by the Executive in accordance
with the policies, practices and procedures of the Company and its affiliated
companies in effect for the executives of the Company and its affiliated
companies during the Employment Period. 
Without limitation on the foregoing, reimbursement shall be made no
later than the end of the fourth month of the year following the year in which
the expense was incurred.

 

7.                                      Termination

 

During the Employment Period, employment of the Executive may be
terminated as follows, but, in any case, the nondisclosure provisions set forth
in Section 10 hereof shall survive the termination of this Agreement and
the termination of the Executive’s employment with the Company:

 

7.1                               Termination by the Company or the
Executive

 

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

 

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7.2                               Automatic Termination

 

This Agreement and the Executive’s employment during the Employment
Period shall terminate automatically upon the death or Total Disability of the
Executive.  The term “Total
Disability” as used herein shall mean the Executive’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 Executive, to perform the duties set forth in Section 3.2
hereof 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 Executive’s control,
unless the Executive is granted a leave of absence by the Board.  The Executive and the Company hereby
acknowledge that the duties specified in Section 3.2 hereof are essential
to the Executive’s position and that the Executive’s ability to perform those
duties is the essence of this Agreement.

 

7.3                               Notice of Termination

 

Any termination by the Company or by the Executive during the
Employment Period shall be communicated by a Notice of Termination to the other
party given in accordance with Section 12 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 Executive’s employment under the provision so
indicated.  The failure by the Executive
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 Executive or the Company hereunder or preclude the
Executive or the Company from asserting such fact or circumstance in enforcing
the Executive’s or the Company’s rights hereunder.

 

7.4                               Date of Termination

 

During the Employment Period, “Date of Termination”
means (a) if the Executive’s employment is terminated by reason of death,
the last day of the calendar month in which the Executive’s death occurs, (b) if
the Executive’s employment is terminated by reason of Total
Disability, immediately upon a determination by the Company of the
Executive’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 Executive’s employment
and performance of services will continue during such ten (10) day period;
provided, however, that the Company may, upon notice to the Executive and
without reducing the Executive’s compensation during such period, excuse the
Executive from any or all of the Executive’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

 

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exempt from the requirements of Code Section 409A
or comply with the requirements of Code Section 409A.

 

8.                                      Termination
Payments

 

In the event of termination of the Executive’s employment during the
Employment Period, all compensation and benefits set forth in this Agreement
shall terminate except as specifically provided in this Section 8.

 

8.1                               Termination by the Company Other Than for
Cause or by the Executive for Good Reason

 

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

 

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

 

(i)                                     the Annual Base
Salary through the Date of Termination to the extent not theretofore paid;

 

(ii)                                  the product of (x) the
Annual Performance Bonus payable with respect to the fiscal year in which the
Date of Termination occurs and (y) a fraction the numerator of which is
the number of days in the current fiscal year through the Date of Termination,
and the denominator of which is three hundred sixty-five (365);

 

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

 

(iv)                              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 one (1) year after the Date of Termination or until
the Executive qualifies for comparable medical and dental insurance benefits
from another employer, whichever occurs first, the Executive’s premiums for
health insurance benefit continuation for the Executive and the Executive’s
family members, if applicable, that the Company provides to the Executive under
the provisions of the federal Consolidated Omnibus Budget Reconciliation Act of
1985, as amended (“COBRA”), to the extent that
the Company would have paid such premiums had the Executive remained employed
by the Company (such continued payment is hereinafter referred to as “COBRA Continuation”);

 

(c)                                  an
amount as severance pay equal to one (1) times the Annual Performance
Bonus payable with respect to the fiscal year in which the Date of Termination
occurs;

 

(d)                                 an
amount as severance pay equal to one (1) times the Annual Base Salary for
the fiscal year in which the Date of Termination occurs; and

 

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(e)                                  immediate
vesting of all outstanding stock options previously granted to the Executive by
the Company.

 

8.2                               Termination for Cause or Other Than for
Good Reason

 

If during the Employment Period the Executive’s employment shall be
terminated by the Company for Cause or by the Executive for other than Good
Reason, this Agreement shall terminate without further obligation on the part
of the Company to the Executive, other than the Company’s obligation to pay the
Executive (a) the Annual Base Salary through the Date of Termination, (b) 
the amount of any compensation previously deferred by the Executive in
accordance with the terms of the Company’s deferred compensation program, and (c) any
accrued vacation pay that would be payable under the Company’s standard policy,
in each case to the extent theretofore unpaid.

 

8.3                               Expiration of Term

 

In the event the Executive’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 Executive, other than the
Company’s obligation to pay the Executive the product of (a) the Annual
Performance Bonus payable with respect to the fiscal year in which the Term
expired and (b) a fraction the numerator of which is the number of days in
the current fiscal year through the end of the Term and the denominator of
which is three hundred sixty-five (365). 
Such payment will be made in the fiscal year following the fiscal year
in which the Term expired no later than the fifteenth day of the third month of
such subsequent fiscal year.

 

8.4                               Termination Because of Death or Total
Disability

 

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

 

8.5                               Payment Schedule

 

All payments of Accrued Obligations, or any portion thereof payable pursuant
to this Section 8, other than deferred compensation pursuant to Section 8.1(a)(iii) hereof,
shall be made to the Executive within ten (10) working days of the Date of
Termination.  Deferred compensation
pursuant to Section 8.1(a)(iii) hereof shall be payable pursuant to
the terms of the deferred compensation program. 
Any severance payments payable to the Executive pursuant to
Sections 8.1(c) and 8.1(d) hereof shall be made to the
Executive in a lump sum within ten (10) working days of the Date of
Termination.  Notwithstanding the preceding provisions of this Section 8,
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

 

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Employee (as defined in Section 21.1 hereof) upon Separation from
Service, the provisions of Section 21.1 hereof shall apply.  Section 8.9 hereof must be satisfied to
receive payments and benefits under this Agreement.

 

8.6                               Cause

 

For purposes of this Agreement, “Cause” means cause
given by the Executive 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 Executive or any
directions of the Board or senior management of the Company, all reasonably
consistent with the duties described in Section 3.2 hereof;

 

(b)                                 persistent
failure to carry out any lawful duties of the Executive described in Section 3.2
hereof or any directions of the Board or senior management reasonably
consistent with the duties herein set forth to be performed by the Executive;
provided, however, that the Executive has been given reasonable notice and
opportunity to correct any such failure;

 

(c)                                  violation
by the Executive 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 Executive of alcohol or controlled substances; deception, fraud,
misrepresentation or dishonesty by the Executive; or any incident materially
compromising the Executive’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 Executive,
subject to the notice and opportunity-to-cure requirements of Section 11
hereof.

 

8.7                               Good Reason

 

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

 

(a)                                  the
assignment to the Executive of any duties materially inconsistent with the
Executive’s position, authority, duties or responsibilities as contemplated by Section 3.2
hereof 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
Executive;

 

(b)                                 any
failure by the Company to comply with any of the provisions of Section 5
or Section 6 hereof, other than an isolated and inadvertent failure not
taken in bad faith and that is remedied by the Company promptly after receipt
of notice thereof given by the Executive;

 

(c)                                  the
Company’s requiring the Executive to be based at any office or location other
than that described in Section 3.3 hereof;

 

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(d)                                 any
failure by the Company to comply with and satisfy Section 13 hereof;
provided, however, that the Company’s successor has received at least ten (10) days’
prior written notice from the Company or the Executive of the requirements of Section 13
hereof; or

 

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

 

provided, however, that the Executive has notified
the Company of such 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 11 hereof.

 

8.8                               Excess Parachute Limitation

 

If any portion of the payments or benefits for the Executive under this
Agreement, the Severance Agreement, or any other agreement or benefit plan of the
Company (including a stock option plan) would be characterized as an “excess
parachute payment” to the Executive under Section 280G of the Internal
Revenue Code of 1986, as amended (the “Code”), the
Executive shall be paid any excise tax that the Executive owes under Code Section 4999
as a result of such characterization, such excise tax to be paid to the
Executive at least ten (10) days prior to the date that the Executive 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 Executive.  Without limitation on the foregoing, the
payments made pursuant to this Section 8.8 shall be made no later than the
end of the year following the year in which the Executive remits such excise
tax to the Internal Revenue Service.

 

8.9                               General
Release of Claims

 

As a condition to receiving the payments and benefits under this Section 8
other than Accrued Obligations set forth in Sections 8.1(a)(i) and 8.1(a)(iv) hereof,
the Executive 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
acceptable to the Company, in its reasonable 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.  To the extent any payment or benefit is a
409A Payment, the provisions of Section 21.3 hereof shall apply.

 

9.                                      Representations,
Warranties and Other Conditions

 

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

 

9.1                               Health

 

The Executive 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 Executive from
fulfilling the Executive’s obligations hereunder.

 

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The Executive 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
Executive agrees that each examination’s medical report shall be provided to
the Company.

 

9.2                               No Violation of Other Agreements

 

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

 

10.                               Nondisclosure;
Return of Materials

 

10.1                        Nondisclosure

 

Except as required by the Executive’s employment with the Company, the
Executive 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 Executive understands that the Company will be relying on this
Agreement in continuing the Executive’s employment, paying the Executive’s
compensation, granting the Executive any promotions or raises, or entrusting
the Executive with any information that helps the Company compete with others.

 

10.2                        Return of Materials

 

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

 

11.                               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 8.6
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.

 

12.                               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,

 

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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 Executive:

  	
  Greg Weaver

  
	
   

  	
  9129 143rd Avenue SE

  
	
   

  	
  Newcastle, Washington
  98059

  
	
   

  	
   

  
	
  If to the Company:

  	
  Poniard
  Pharmaceuticals, Inc.

  
	
   

  	
  300 Elliott Avenue West,
  Suite 500

  
	
   

  	
  Seattle, Washington  98119

  
	
   

  	
  Attn:  Chief Executive Officer

  
	
   

  	
   

  
	
  With a copy to:

  	
  Perkins Coie LLP

  
	
   

  	
  1201 Third Avenue,
  Suite 4800

  
	
   

  	
  Seattle, Washington  98101-3099

  
	
   

  	
  Attn:  James R. Lisbakken

  

 

Except as set forth in Section 7.4 hereof, if
notice is mailed, such notice shall be effective upon mailing.

 

13.                               Assignment

 

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

 

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.  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.

 

14.                               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 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.

 

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15.                               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 Executive, 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 Executive.

 

16.                               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.

 

17.                               Arbitration;
Attorneys’ Fees

 

Except in connection with enforcing Section 10 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 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
Executive from being subject to any additional tax pursuant to Code Section 409A(a)(1)(B),
any amounts payable to the Executive 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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18.                               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.

 

19.                               Entire
Agreement

 

Except as described in Section 23 hereof, this Agreement
constitutes the entire agreement between the Company and the Executive with
respect to the subject matter hereof, and all prior or contemporaneous oral or
written communications, understandings or agreements between the Company and
the Executive with respect to such subject matter are hereby superseded and
nullified in their entireties, except that the Proprietary Information and
Invention Agreement between the Company and the Executive shall continue in
full force and effect to the extent not superseded by Section 10 hereof.

 

20.                               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.

 

21.                               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, 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-1(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 Executive for or
with respect to any taxes, penalties or interest that may be imposed upon the Executive pursuant to Code Section 409A.

 

13

 

21.1                        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 Executive’s
Separation from Service, the Executive is
a Specified Employee, then to the extent required for the Executive not to incur additional
taxes pursuant to Code Section 409A, no such 409A Payment shall be made to
the Executive earlier than the
earlier of (a) six (6) months after the Executive’s Separation from Service or (b) the date of the
Executive’s death.  Should this Section 21
result in the delay of benefits, any such benefit shall be made available to
the Executive by the Company
during such delay period at the Executive’s
expense.  Should this Section 21.1
result in a delay of payments or benefits to the Executive, on the first day any such payments or benefits may be
made without incurring additional tax pursuant to Code Section 409A (the “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 21.1 as well as reimbursement of the
amount the Executive 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 21.1,
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.

 

21.2                        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 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 Executive;
and (c) the 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 Executive.  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.

 

21.3                        Release

 

Subject to Section 21.1 hereof, (a) to the extent that the Executive is required to execute and
deliver a release to receive a 409A Payment and (b) this Agreement
provides for such 409A

 

14

 

Payment to be provided prior to the 55th day following the Executive’s Separation from Service,
such 409A Payment will be provided upon the 55th day following the Executive’s Separation from Service,
provided that the release in the form acceptable to the Company, in its
reasonable 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 21.3,
interest for the delay and the opportunity for the Executive 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 21.1 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 Executive’s Separation from Service,
such 409A Payment shall not be provided to the Executive to the extent that providing such 409A Payment would
cause such 409A Payment to fail to comply with Code Section 409A.

 

21.4                        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 or more installments, for purposes of Section 409A, each
installment shall be treated as a separate payment.

 

22.                               Counterparts

 

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

 

23.                               Coordination
With Severance Agreement

 

The Severance Agreement that the parties are entering into
contemporaneously with this Agreement provides for certain forms of severance
and benefit payments in the event of termination of the Executive’s
employment.  This Agreement is in
addition to the Severance Agreement and in no way supersedes or nullifies the
Severance Agreement.  Nevertheless, it is
possible that termination of employment by the Company or by the Executive may
fall within the scope of both agreements. 
In such event, payments made to the Executive under Section 8.1
hereof shall be coordinated with payments made to the Executive under Section 5.1
of the Severance Agreement as follows:

 

(a)                                  Accrued
Obligations under this Agreement shall be paid first, in which case Accrued
Obligations need not be paid under the Severance Agreement;

 

(b)                                 COBRA
Continuation under this Agreement shall be provided first, in which case COBRA
Continuation need not be provided under the Severance Agreement;

 

(c)                                  the
severance payment required under Section 8.1(d) hereof shall be paid
first in connection with a Change of Control that constitutes a change in
ownership or effective control of the Company or in the ownership of a
substantial portion of the assets of the Company within the meaning of
subsection (a)(2)(A)(v) of Code Section 409A, in which case only that
portion of

 

15

 

any severance payment required under Section 5.1(c) of the
Severance Agreement that is in excess of the severance payment required under Section 8.1(d) hereof
shall be paid in accordance with the provisions of the Severance Agreement; and

 

(d)                                 the
severance payment required under Section 8.1(d) hereof (and paid
pursuant to Section 8.5 hereof) need not be paid to the extent a severance
payment is made under Section 5.1(c) of the Severance Agreement in
connection with a Change of Control that does not constitute a change in
ownership or effective control of the Company or in the ownership of a
substantial portion of the assets of the Company within the meaning of
subsection (a)(2)(A)(v) of Code Section 409A, i.e., the credit from Section 5.1(c) of
the Severance Agreement is applied to the amount due under Section 8.1(d) hereof
and therefore only that portion of any severance payment required under Section 8.1(d) hereof
that is in excess of the total severance payment required under Section 5.1(c) of
the Severance Agreement shall be paid in accordance with the provisions of this
Agreement.

 

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

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Greg Weaver

  
	
   

  	
   

  	
  Name:

  	
  Greg Weaver

  

 

16

 

APPENDIX A

 

For purposes of this Agreement, a “Change of Control”
shall mean:

 

(a)                                  A
“Board Change” that, for purposes of this Agreement,
shall have occurred if a majority (excluding vacant seats) of the seats on the
Board are occupied by individuals who were neither (i) nominated by a
majority of the Incumbent Directors nor (ii) appointed by directors so
nominated.  An “Incumbent
Director” is a member of the Board who has been either (i) nominated
by a majority of the directors of the Company then in office or (ii) appointed
by directors so nominated, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of either an actual or
threatened election contest (as such terms are used in former Rule 14a-11
of Regulation 14A promulgated under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”)) or other
actual or threatened solicitation of proxies or consents by or on behalf of a
Person (as hereinafter defined) other than the Board; or

 

(b)                                 The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act) (a “Person”) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under
the Exchange Act) of (i) twenty percent (20%) or more of either (A) the
then outstanding shares of Common Stock of the Company (the “Outstanding
Company Common Stock”) or (B) the combined voting power of
the then outstanding voting securities of the Company entitled to vote
generally in the election of directors (the “Outstanding
Company Voting Securities”), in the case of either
subclause (A) or (B) of this clause (i), which
acquisition is not approved in advance by a majority of the Incumbent
Directors, or (ii) thirty-three percent (33%) or more of either (A) the
Outstanding Company Common Stock or (B) the Outstanding Company Voting
Securities, in the case of either subclause (A) or (B) of
this clause (ii), which acquisition is approved in advance by a majority
of the Incumbent Directors; provided, however, that the following acquisitions
shall not constitute a Change of Control: 
(x) any acquisition by the Company, (y) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company, or (z) any acquisition by
any corporation pursuant to a reorganization, merger or consolidation, if,
following such reorganization, merger or consolidation, the conditions
described in clauses (i), (ii) and (iii) of subsection (c) of
this Appendix A are satisfied; or

 

(c)                                  Approval
by the shareholders of the Company of a reorganization, merger or
consolidation, in each case, unless, immediately following such reorganization,
merger or consolidation, (i) more than sixty percent (60%) of,
respectively, the then outstanding shares of common stock of the corporation
resulting from such reorganization, merger or consolidation and the combined
voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors is then beneficially
owned, directly or indirectly, by all or substantially all the individuals and
entities who were the beneficial owners, respectively, of the Outstanding
Company Common Stock and the Outstanding Company Voting Securities immediately
prior to such reorganization, merger or consolidation in substantially the same

 

 

proportion as their ownership immediately prior to such reorganization,
merger or consolidation of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities, as the case may be, (ii) no Person
(excluding the Company, any employee benefit plan (or related trust) of the
Company or such corporation resulting from such reorganization, merger or
consolidation and any Person beneficially owning, immediately prior to such
reorganization, merger or consolidation, directly or indirectly, thirty-three
percent (33%) or more of the Outstanding Company Common Stock or the
Outstanding Company Voting Securities, as the case may be) beneficially owns,
directly or indirectly, thirty-three percent (33%) or more of, respectively,
the then outstanding shares of common stock of the corporation resulting from
such reorganization, merger or consolidation or the combined voting power of
the then outstanding voting securities of such corporation entitled to vote
generally in the election of directors, and (iii) at least a majority of
the members of the board of directors of the corporation resulting from such
reorganization, merger or consolidation were the Incumbent Directors at the
time of the execution of the initial agreement providing for such
reorganization, merger or consolidation; or

 

(d)                                 Approval
by the shareholders of the Company of (i) a complete liquidation or
dissolution of the Company or (ii) the sale or other disposition of all or
substantially all the assets of the Company, other than to a corporation with
respect to which immediately following such sale or other disposition, (A) more
than sixty percent (60%) of, respectively, the then outstanding shares of
common stock of such corporation and the combined voting power of the then
outstanding voting securities of such corporation entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly,
by all or substantially all the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Company Common Stock and
the Outstanding Company Voting Securities immediately prior to such sale or
other disposition in substantially the same proportion as their ownership,
immediately prior to such sale or other disposition, of the Outstanding Company
Common Stock and the Outstanding Company Voting Securities, as the case may be,
(B) no Person (excluding the Company, any employee benefit plan (or related
trust) of the Company or such corporation and any Person beneficially owning,
immediately prior to such sale or other disposition, directly or indirectly,
thirty-three percent (33%) or more of the Outstanding Company Common Stock or
the Outstanding Company Voting Securities, as the case may be) beneficially
owns, directly or indirectly, thirty-three percent (33%) or more of,
respectively, the then outstanding shares of common stock of such corporation
or the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors, and (C) at
least a majority of the members of the board of directors of such corporation
were approved by a majority of the Incumbent Directors at the time of the
execution of the initial agreement or action of the Board providing for such
sale or other disposition of the Company’s assets.

 

2Exhibit 10.23

 

	
  February 3,
  2009

  	
  -REVISED
  OFFER -

  
	
   

  	
   

  
	
  Greg Weaver, CPA, MBA

  	
   

  

 

Dear Greg:

 

It
is with great pleasure that Poniard Pharmaceuticals, Inc. offers you the position
of Chief Financial Officer and Sr. Vice President, Finance, reporting to Jerry
McMahon, Ph.D., Chairman & Chief Executive Officer, on and subject to
the terms below.

 

The
terms and conditions of the offer have been approved by the Compensation
Committee of Poniard’s Board of Directors, but the offer is subject to final
approval by the Board of Directors.

 

Your
start date will be February 18, 2009 and your annual base salary is $290,000,
which will be paid semi-monthly. In the event that the company requires you to
move your residence to the Bay Area, the company will also pay for reasonable
relocation expenses, i.e. travel to the Bay Area for house-hunting purposes for
you and your family and moving your household goods.

 

You
will be eligible for an annual bonus of up to 30% (target) of your annual base
salary, based on the Compensation Committee’s determination of the company’s achievement
of corporate milestones approved by the Board of Directors.  Your annual
bonus eligibility for 2009 will be prorated from the date you commence
employment.

 

You
will also be eligible for the severance and change of control agreements
currently in effect for non-CEO officers.

 

You
will also be granted a stock option to purchase 200,000 shares of Poniard
common stock pursuant to the terms of the company’s 2004 Incentive Compensation
Plan (“Plan”), which grant will be effective upon your first day of employment
and the exercise price will be equal to the closing price of Poniard common
stock on the day of grant, i.e., your first day of employment.  The stock
option will vest 25% after the end of one year and the balance will vest in
equal monthly amounts over the next three years.

 

You
are eligible to participate in Poniard’s insured benefits on the first day of
employment.  Currently, the company pays the full cost of participation by
employees, spouses/partners and dependent children in our comprehensive
medical, dental and vision plans, and provides term life insurance, term
accidental death and dismemberment insurance and a Long Term Disability
Plan.  Poniard also has a 401(k) Plan and currently matches 5% of the
employee’s contribution up to a maximum of $500. Employees are immediately
vested in the company match.

 

 

Poniard
observes 10 holidays, plus employees receive three personal holidays to use
during the calendar year (these days are pro-rated for individuals who start
after the first quarter of the calendar year).  Your personal holidays
must be used by December 31 of each year.  Vacation hours are
calculated using the employee’s start date through a continuous 12-month period
of employment.  Full-time employees earn 10.00 hours of vacation time per
month up to a maximum of 120 hours per year, subject to the vacation
policies of the company.

 

Poniard
has an at-will relationship with each of its employees.  That means that
either the company or you can terminate the employment relationship at any
time, for any reason deemed appropriate.  No manager or officer of Poniard
is authorized to alter the at-will relationship unless it is done in writing
and signed by the Chief Executive Officer.

 

Employment
at Poniard is contingent upon the signing of Poniard’s Invention and
Proprietary Information Agreement, which must be signed and witnessed on your
first day of work and not prior to that date. 
A copy of the company’s Invention and Proprietary Information Agreement
is enclosed for your review. Employment is further contingent on satisfactory
clearance of a background screen, and a background release form is enclosed for
your review and signature.

 

All
new employees must provide documentation of eligibility to work in the United
States.  A copy of the federal government’s I-9 form is enclosed, which
lists the type of documentation necessary to meet this requirement. 
Please bring this form and appropriate documentation with you on your first day
of work.

 

Please
indicate your acceptance of the terms of this offer, contingent on Board
approval, by signing below, and return the signed offer letter and background
release form to me by February 6, 2009. 
If you have any questions, please feel free to call me at (650)745-4407
or (650)491-4540.

 

Poniard
has an exciting future and we believe your contributions will have a positive
effect on our success.  We look forward to having you join us.

 

Sincerely,

 

 

Melanie Smith

Human Resources Manager

 

Enclosures

 

I have read and accept the terms and conditions of
employment as outlined above.

 

 

	
  /s/ Greg Weaver

  	
   

  	
  February 4, 2009

  
	
  Greg
  Weaver, CPA, MBA

  	
   

  	
  Date

  

 

2

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