Document:

exv10w47

 

Exhibit 10.47

IDM PHARMA, INC.

2008 RETENTION COMPENSATION PLAN

This 2008
Retention Compensation Plan (the “Plan”) is established by IDM Pharma, Inc., a Delaware
corporation (the “Company”), effective as of December 20, 2007 as to non-executive employees and as
of January 10, 2008 as to executive officers (the
“Effective Date”).

1. Purpose of the Plan. The Company considers it essential to the operation of the
Company that certain of its employees be encouraged to remain employed by the Company while the
Company attempts to effect a sale of the Company or substantially all of its assets. The Plan is
meant to supplement and work in conjunction with (and, except as provided herein, not to replace)
the Company’s other incentive programs, such as its option plans, severance arrangements and other
benefits plans, in order to achieve the foregoing purposes.

2. Definitions.

     (a) “Base Salary” shall mean the Participant’s base pay (excluding incentive pay, premium pay,
commissions, overtime, bonuses and other forms of variable compensation), at the rate in effect
during the last regularly scheduled payroll period immediately preceding the Participant’s
Qualifying Termination date. For any Participants that are regular part-time employees, “Base
Salary” shall mean the pro-rata equivalent of the Participant’s base pay which reflects the
part-time status of the Participant.

     (b) “Board” shall mean the Board of Directors of the Company or a committee or management
designee thereof.

     (c) “Cause” shall mean, with respect to a particular Participant, the occurrence of any of the
following: (i) such Participant’s conviction of any felony or any crime involving fraud or
dishonesty that has had or could reasonably be expected to have a material adverse effect on the
business of the Company; (ii) such Participant’s participation (whether by affirmative act or
omission) in a fraud, act of dishonesty or other act of misconduct against the Company or any
employee or agent of any of them that has had or could reasonably be expected to have a material
adverse effect on the business of the Company; (iii) such Participant’s breach of any term of any
contract between such Participant and the Company that has had or could reasonably be expected to
have a material adverse effect on the business of the Company; or (iv) such Participant’s violation
of one or more Company policies that has had or could reasonably be expected to have a material
adverse effect on the business of the Company. Notwithstanding the foregoing, such Participant’s
death or disability shall not constitute Cause. The determination that a termination is for Cause
shall be made in good faith by the Board in its sole discretion.

     (d) “Change of Control” shall mean the first occurrence of any of the following (during the
term of the Plan):

          (i) a merger or consolidation of the Company after which the Company’s stockholders
immediately prior to the merger or consolidation do not have beneficial ownership of at least 50%
of the outstanding voting securities of the new or continuing entity or its parent entity;

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          (ii) a transaction to which the Company is a party and in which a majority of the outstanding
shares of the Company’s capital stock are sold, exchanged or otherwise disposed of, after which the
Company’s stockholders immediately prior to such transaction do not have beneficial ownership of at
least 50% of the outstanding voting securities of the Company or of the entity for which shares of
the Company’s capital stock were exchanged; or

          (iii) a transaction or series of related transactions in which the Company sells, licenses or
otherwise transfers for value all or substantially all of its assets, in order to effect a sale of
the Company’s business as a going concern, to a single purchaser or group of associated purchasers.

     The term Change of Control shall not include any transaction effected exclusively for the
purpose of changing the domicile of the Company.

     (e) “Participation Agreement” shall mean the written instrument setting forth the
Participant’s potential Plan Benefits and other terms of participation in the Plan.

     (f) “Participant” shall mean an individual identified in Exhibit A hereto.

     (g) “Plan Benefits” mean the applicable potential Plan benefits described in Section 3 below
and set forth on the Participant’s Participation Agreement.

     (h) “Qualifying Termination” shall mean termination of a Participant’s employment prior to the
applicable Trigger Date (as defined below) either (i) by the Company involuntarily without Cause;
or (ii) by the Company or its successor in connection with a Change of Control of the Company
involuntarily without Cause; or (iii) due to the Company’s cessation of business operations.

     (i) “Retention Bonus” with respect to a Participant shall mean the Retention Bonus amount, if
any, specified in the Participant’s Participation Agreement.

     (j) “Restricted Stock Unit Award” with respect to a Participant shall mean the Deferred
Issuance Restricted Stock Bonus Award granted to such Participant on December 20, 2007 or January
10, 2008 under the Company’s 2000 Stock Plan for the number of shares of the Company’s common stock
specified in the Participant’s Participation Agreement.

     (k) “Severance Bonus” with respect to a Participant shall mean the amount of Base Salary that
the Participant would have earned if the Participant had continued to be employed by the Company
from the date of the Participant’s Qualifying Termination through the Participant’s Trigger Date.

     (l) “Transaction Bonus” with respect to a Participant shall mean the Transaction Bonus amount,
if any, specified in the Participant’s Participation Agreement.

     (m) “Trigger Date” shall mean either June 30, 2008 or August 31, 2008, as specified in the
Participant’s applicable Participation Agreement.

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3. Operation of the Plan. The Plan will operate through establishment of a potential
Severance Bonus and the grant of a Restricted Stock Unit Award for each Participant, and the
establishment of either a Retention Bonus or a Transaction Bonus for each Participant, which will
be determined by the Board in its sole discretion after consulting with the management of the
Company and set forth on the Participant’s applicable Participation Agreement (collectively, the
“Plan Benefits”). As reflected on the Participation Agreements, Participants will be eligible to
receive as part of their Plan Benefits either a potential Retention Bonus or a Transaction Bonus,
but not both. The Board in its sole discretion will designate the Participants and determine each
Participant’s potential Plan Benefits. Once determined, a Participant’s potential Plan Benefits
may be increased, subject to the terms and conditions of the Participation Agreement and the Plan,
by the Board by notification in writing to the Participant and acceptance by the Participant of any
conditions established for the increase.

4. Eligibility to Participate. An individual shall be eligible to participate in the Plan
if he or she is designated as a Participant in the Plan by the Board, provided he or she accepts
such designation and agrees that participation is subject to such terms as determined by the
Company at the time of designation and set forth in the Participation Agreement.

5. Eligibility for Payment of Plan Benefits. Unless otherwise provided in the
Participation Agreement, payment of Plan Benefits shall be made subject to satisfaction of the
following conditions:

     (a) Severance Bonus Payments. Any Participant who has a Qualifying Termination prior to his
or her applicable Trigger Date shall be entitled to payment of a Severance Bonus in a single lump
sum within 20 days following the effective date of the Release required by Section 5(e) below.

     (b) Retention Bonus Payments. Any Participant who is eligible to receive a Retention Bonus
shall, on the date that is 20 days after the Trigger Date, be entitled to payment of 100% of the
Retention Bonus provided that such Participant is an employee of the Company on the Trigger Date.
Additionally, if a Participant who is eligible to receive a Retention Bonus has a Qualifying
Termination prior to his or her applicable Trigger Date, the Participant shall receive payment of
100% of the Retention Bonus in a single lump sum within 20 days following the effective date of the
Release required by Section 5(e) below.

     (c) Transaction Bonus Payments. Any Participant who is eligible to receive a Transaction
Bonus shall, on the date that is 20 days after a Change of Control that occurs on or prior to
December 31, 2008, be entitled to payment of 100% of the Transaction Bonus provided that such
Participant is an employee of the Company on the effective date of the Change of Control.
Additionally, if a Participant who is eligible to receive a Transaction Bonus has a Qualifying
Termination prior to the effective date of the Change of Control, the Participant shall receive
payment of 100% of the Transaction Bonus in a single lump sum within 20 days following the
effective date of the Release required by Section 5(e) below.

     (d) Restricted Stock Unit Award. The shares subject to the Restricted Stock Unit Award shall
vest on the date indicated on the Participant’s Participation Agreement and as provided in the
grant notice for the Participant’s Restricted Stock Unit Award, subject to

3.

 

Participant’s continued service with the Company through such applicable vesting date (the
“Vesting Date”). Additionally, if there is a Qualifying Termination of the Participant prior to
the Vesting Date, the shares subject to the Restricted Stock Unit Award shall fully vest on the
effective date of the Release required by Section 5(e) below. Vesting of the shares shall also
fully accelerate in the event of a Change of Control that occurs prior to the Vesting Date, subject
to the Participant’s continued service with the Company through the date immediately prior to the
effective date of the Change of Control. Any vested shares subject to the Restricted Stock Unit
Award will be issued to the Participant as provided in the grant notice for the Participant’s
Restricted Stock Unit Award.

     (e) Effective Release Requirement. Payment of any Plan Benefits triggered by a Qualifying
Termination of the Participant’s employment are conditioned upon the Participant’s delivery of a
release and waiver in the form attached as Exhibit B hereto or such other form as may be required
by the Company (the “Release”), and permitting the Release to become fully effective in accordance
with its terms; provided further that as a condition to receiving such Plan benefits, the
Participant must deliver the executed Release to the Company within the time period set forth
therein, but in no event later than 45 days following the date of the Qualifying Termination.
Failure to timely satisfy the foregoing effective Release delivery requirement will result in a
Participant’s forfeiture of the right to receive Plan benefits in connection with a Qualifying
Termination.

     (f) Section 409A Compliance. Payment of Plan Benefits are intended to be payable pursuant to
the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations and
thereby exempt from application of Section 409A of the Internal Revenue Code.

6. Unsecured Benefits. The Participant’s sole right to Plan benefits including the
Severance Bonus, Retention Bonus, Transaction Bonus and the shares subject to the Restricted Stock
Unit Award shall be as a general unsecured creditor of the Company and any acquiring or surviving
company.

7. Parachute Payments. Anything in the Plan to the contrary notwithstanding, if any
payment or benefit a Participant would receive from the Company pursuant to the Plan or otherwise
(“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the
Internal Revenue Code of 1986, as amended (the
“Code”), and (ii) but for this sentence, be subject
to the excise tax imposed by Section 4999 of the Code (the
“Excise Tax”), then such Payment shall
be equal to the Reduced Amount. The “Reduced Amount” shall be either (1) the largest portion of
the Payment that would result in no portion of the Payment being subject to the Excise Tax or (2)
the Payment or a portion thereof after payment of the applicable Excise Tax, whichever amount after
taking into account all applicable federal, state and local employment taxes, income taxes, and the
Excise Tax (all computed at the highest applicable marginal rate), results in such Participant’s
receipt, on an after-tax basis, of the greatest amount of the Payment to the Participant. If a
reduction in payments or benefits constituting “parachute payments” is necessary so that the
Payment equals the Reduced Amount, reduction shall occur in the following order unless the
Participant elects in writing a different order (provided, however, that such election shall be
subject to Company approval if made on or after the date on which the event that triggers the
Payment occurs): reduction of cash payments; cancellation of accelerated vesting of stock awards;
reduction of employee benefits. In the event

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that acceleration of vesting of stock award compensation is to be reduced, such acceleration of
vesting shall be cancelled in the reverse order of the date of grant of the Participant’s stock
awards unless such Participant elects in writing a different order for cancellation. The
accounting firm engaged to make the determinations hereunder shall provide its calculations,
together with detailed supporting documentation, to the Company and the Participant within 15
calendar days after the date on which the Participant’s right to a Payment is triggered (if
requested at that time by the Company or the Participant) or such other time as requested by the
Company or the Participant. If the accounting firm determines that no Excise Tax is payable with
respect to a Payment, either before or after the application of the Reduced Amount, it shall
furnish the Company and the Participant with an opinion reasonably acceptable to such Participant
that no Excise Tax will be imposed with respect to such Payment. The Company shall be entitled to
rely upon the accounting firm’s determinations, which shall be final and binding on all persons.
Any reduction of a Participant’s Plan Benefits shall not increase the Plan Benefits of any other
Participant.

8. Right To Interpret, Amend Plan; Other Arrangements.

     (a) Exclusive Discretion. The Board will have the exclusive discretion and authority (i) to
establish rules, forms and procedures for the administration of the Plan, (ii) to construe and
interpret the Plan and (iii) to decide any and all questions of fact, interpretation, definition,
computation or administration arising in connection with the operation of the Plan including, but
not limited to, the eligibility to participate in the Plan and the amount of benefits paid under
the Plan. Such rules, interpretations, computations and other actions of the Board will be final
and binding on all persons.

     (b) Term Of Plan; Amendment; Binding Nature Of Plan.

          (i) Notwithstanding anything to the contrary in this Section 8, the Plan shall terminate
immediately prior to January 1, 2009 unless the Board approves an extension of the Plan.

          (ii) Subject to the other provisions of this Section 8, the Company’s obligations to provide
benefits hereunder to which Participants have accrued rights to benefits on or prior to December
31, 2008 shall survive until all such benefits have been paid.

          (iii) The Board, in its sole discretion, may amend the Plan or the benefits provided hereunder
at any time on or prior to December 31, 2008; provided, however, that no such amendment or
termination shall adversely affect the right to any unpaid benefit of any Participant whose
Qualifying Termination or Trigger Date has occurred prior to amendment or termination of the Plan.
In addition, following a Change of Control, no such amendment or termination may adversely affect
the benefits to which Participant would become entitled under the Plan upon a Qualifying
Termination if the Plan had not been so amended or terminated, without the consent of the affected
Participant.

          (iv) Any action amending the Plan shall be in writing and executed by an officer of the
Company duly authorized by the Board and by any Participant whose consent is required pursuant to
Section 8(b)(iii).

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9. No Guarantee of Employment. The Plan is intended to provide a financial incentive to
Participants and is not intended to confer any rights to continued employment upon Participants,
whose employment shall remain at-will and subject to termination by either the Company or
Participant at any time, with or without cause or notice.

10. No Assignment or Transfer by Participant. None of the rights, benefits, obligations
or duties under the Plan may be assigned or transferred by any Participant except by will or under
the laws of descent and distribution. Any purported assignment or transfer by any such Participant
shall be void.

11. Governing Law. The rights and obligations of a Participant under the Plan shall be
governed by and interpreted, construed and enforced in accordance with the laws of the State of
California without regard to its or any other jurisdiction’s conflicts of laws principles.

12. Withholding of Compensation. The Company shall deduct and withhold from the Plan
Benefits payable to Participants hereunder, or compensation or other amounts otherwise payable in
connection with such Participants’ employment, any amounts required to be deducted and withheld by
the Company under the provisions of any applicable federal, state and local statute, law,
regulation, ordinance or order. Unless the Company’s withholding obligations are satisfied the
Company shall have no obligation to pay Plan Benefits.

13. Assumption by Acquirer. The Company’s obligations to pay Plan benefits to
Participants hereunder shall be deemed to have been appropriately satisfied if the acquiring or
surviving person or entity in a Change of Control assumes such obligations and pays such Plan
Benefits as provided hereunder.

6.exv10w48

 

Exhibit 10.48

IDM Pharma, Inc.

2000 Stock Plan

2008 Retention Compensation plan

Deferred Issuance Restricted Stock Bonus Agreement

     Pursuant to the Deferred Issuance Restricted Stock Bonus Grant Notice (“Grant Notice”) and
this Deferred Issuance Restricted Stock Bonus Agreement (collectively, the “Award”) and in
consideration of your past services, IDM Pharma, Inc. (the “Company”) has awarded you a deferred
issuance restricted stock bonus under its 2000 Stock Plan (the “Plan”) and its 2008 Retention
Compensation Plan and its accompanying Participation Agreement (the “Retention Plan”) for the
number of shares of the Company’s Common Stock subject to the Award as indicated in the Grant
Notice. Your Award is granted to you effective as of the Date of Grant set forth in the Grant
Notice for this Award (the “Effective Date”). Capitalized terms not explicitly defined in this
Deferred Issuance Restricted Stock Bonus Agreement but defined in the Plan or the Retention Plan
shall have the same definitions as in the Plan or Retention Plan.

     1. Vesting. Subject to the limitations contained herein, your Award will vest in
accordance with the vesting schedule provided in the Grant Notice, provided that vesting will cease
upon the termination of your Continuous Service. Your Award is also subject to the vesting
acceleration provisions set forth in the Retention Plan.

     2. Number of Shares. The number of shares subject to your Award may be adjusted from
time to time for capitalization adjustments, as provided in the Section 12(a) of the Plan.

     3. Securities Law Compliance. You may not be issued any shares under your Award
unless the shares are either (i) then registered under the Securities Act or (ii) the Company has
determined that such issuance would be exempt from the registration requirements of the Securities
Act. Your Award must also comply with other applicable laws and regulations governing the Award,
and you will not receive such shares if the Company determines that such receipt would not be in
material compliance with such laws and regulations.

     4. Limitations on Transfer. Your Award is not transferable, except by will or by the
laws of descent and distribution. In addition to any other limitation on transfer created by
applicable securities laws, you agree not to assign, hypothecate, donate, encumber or otherwise
dispose of any interest in any of the shares of Common Stock held by you under the Award until the
shares are issued to you in accordance with Section 6 of this Agreement. After the shares have
been issued to you, you are free to assign, hypothecate, donate, encumber or otherwise dispose of
any interest in such shares provided that any such actions are in compliance with the provisions
herein and applicable securities laws.

     5. Dividends. You shall be entitled to receive payments equal to any cash dividends
and other distributions paid with respect to a corresponding number of shares covered by your
Award, provided that if any such dividends or distributions are paid in shares, the Fair Market
Value of such shares shall be converted into additional shares covered by the Award, and

 

 

further provided that such additional shares shall be subject to the same forfeiture
restrictions and restrictions on transferability as apply to the shares subject to the Award with
respect to which they relate.

          (a) Date of Issuance. The Company will issue to you a number of shares of the
Company’s Common Stock equal to the number of vested shares subject to your Award, including any
additional shares received pursuant to Section 5 above that relate to those vested shares, on the
earlier of (i) the sixty (60) month anniversary of the Effective Date, (ii) in the event of your
Qualifying Termination that is a “separation from service” from the Company and its Affiliates for
purposes of Section 409A of the Code, within twenty (20) days following your satisfaction of the
conditions required for an issuance of such vested shares to you as set forth in Section 5(e) the
Retention Plan, or (iii) your death or Disability, as defined below.

          (b) Notwithstanding anything to the contrary set forth herein, if at the time the shares would
otherwise be issued to you as a result of your Qualifying Termination, you are subject to the
distribution limitations contained in Code Section 409A applicable to “key employees” as defined in
Code Section 416(i), share issuances to you as a result of your Qualifying Termination shall not be
made before the date which is six (6) months following the date of your Qualifying Termination, or,
if earlier, the date of your death that occurs within such six (6) month period.

          (c) Notwithstanding anything to the contrary set forth herein, if the date of issuance of your
shares would occur on a date during which you are prohibited by Company policy or applicable
securities or exchange rules from trading the stock of the Company, the vested shares shall not be
issued to you until the earlier of (i) the next business date during which trading Company shares
is not prohibited, or (ii) sixty (60) days following the date the shares would otherwise be issued
to you pursuant to this Section 6.

          (d) For purposes of this Agreement, “Disability” means you are (i) unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not
less than twelve (12) months, or (ii) by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous
period of not less than twelve (12) months, receiving income replacement benefits for a period of
not less than three (3) months under an accident and health plan covering employees of the Company.

     6. Restrictive Legends. The shares issued under your Award shall be endorsed with
appropriate legends determined by the Company.

     7. Award not a Service Contract. Your Award is not an employment or service
contract, and nothing in your Award shall be deemed to create in any way whatsoever any obligation
on your part to continue in the employ of the Company or an Affiliate, or on the part of the
Company or an Affiliate to continue your employment. In addition, nothing in your Award shall
obligate the Company or an Affiliate, their respective stockholders, boards of directors, Officers
or Employees to continue any relationship that you might have as a Director or Consultant for the
Company or an Affiliate.

 

 

     8. Withholding Obligations.

          (a) On or before the time you receive a distribution of shares pursuant to your Award, or at
any time thereafter as requested by the Company, you hereby authorize withholding from payroll
and/or any other amounts payable to you, and otherwise agree to make adequate provision for any
sums required to satisfy the federal, state, local and foreign tax withholding obligations of the
Company or an Affiliate, if any, which arise in connection with your Award.

          (b) Unless the tax withholding obligations of the Company and/or any Affiliate are satisfied,
the Company shall have no obligation to issue a certificate for such shares of Common Stock subject
to your Award.

     9. Unsecured Obligation. Your Award is unfunded, and as a holder of a vested Award,
you shall be considered an unsecured creditor of the Company with respect to the Company’s
obligation, if any, to issue shares pursuant to this Agreement. You shall not have voting or any
other rights as a stockholder of the Company with respect to the shares purchased pursuant to this
Agreement until such shares are issued to you pursuant to Section 6 of this Agreement. Upon such
issuance, you will obtain full voting and other rights as a stockholder of the Company. Nothing
contained in this Agreement, and no action taken pursuant to its provisions, shall create or be
construed to create a trust of any kind or a fiduciary relationship between you and the Company or
any other person.

     10. Notices. Any notices provided for in your Award or the Plan shall be given in
writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by
the Company to you, five (5) days after deposit in the United States mail, postage prepaid,
addressed to you at the last address you provided to the Company.

     11. Miscellaneous.

          (a) The rights and obligations of the Company under your Award shall be transferable to any
one or more persons or entities, and all covenants and agreements hereunder shall inure to the
benefit of, and be enforceable by the Company’s successors and assigns. Your rights and obligations
under your Award may only be assigned with the prior written consent of the Company.

          (b) You agree upon request to execute any further documents or instruments necessary or
desirable in the sole determination of the Company to carry out the purposes or intent of your
Award.

          (c) You acknowledge and agree that you have reviewed your Award in its entirety, have had an
opportunity to obtain the advice of counsel prior to executing and accepting your Award and fully
understand all provisions of your Award.

     12. Governing Plan Document. Your Award is subject to all the provisions of the
Plan, the provisions of which are hereby made a part of your Award, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time be promulgated and
adopted pursuant to the Plan. In the event of any conflict between the provisions of your Award
and those of the Plan, the provisions of the Plan shall control.

 

 

     13. Severability. If all or any part of this Agreement or the Plan is declared by
any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity
shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or
invalid. Any Section of this Agreement (or part of such a Section) so declared to be unlawful or
invalid shall, if possible, be construed in a manner which will give effect to the terms of such
Section or part of a Section to the fullest extent possible while remaining lawful and valid.

     14. Effect on Other Employee Benefit Plans. The value of the Award subject to this
Agreement shall not be included as compensation, earnings, salaries, or other similar terms used
when calculating the Employee’s benefits under any employee benefit plan sponsored by the Company
or any Affiliate, except as such plan otherwise expressly provides. The Company expressly reserves
its rights to amend, modify, or terminate any of the Company’s or any Affiliate’s employee benefit
plans.

     15. Amendment. This Agreement may not be modified, amended or terminated except by
an instrument in writing, signed by you and by a duly authorized representative of the Company.
Notwithstanding the foregoing, this Agreement may be amended solely by the Board by a writing which
specifically states that it is amending this Agreement, so long as a copy of such amendment is
delivered to you, and provided that no such amendment adversely affecting your rights hereunder may
be made without your written consent. Without limiting the foregoing, the Board reserves the right
to change, by written notice to you, the provisions of this Agreement in any way it may deem
necessary or advisable to carry out the purpose of the grant as a result of any change in
applicable laws or regulations or any future law, regulation, ruling, or judicial decision,
provided that any such change shall be applicable only to rights relating to that portion of the
Award which is then subject to restrictions as provided herein.

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