Document:

Exhibit
      10.11

    AMENDMENT
      NO. 3 TO 

    EMPLOYMENT
      AGREEMENT

     

     

    THIS
      AMENDMENT NO. 3 made as of June 30, 2006 (the “Amendment”),
      to
      the EMPLOYMENT AGREEMENT dated November 1, 2003, as amended October 21, 2004
      and
      December 16, 2005 (the “Agreement”),
      by
      and between Hana Biosciences, Inc. (formerly Hudson Health Sciences, Inc.),
      a
      Delaware corporation (the “Company”),
      and
      Mark J. Ahn, Ph.D. (“Executive”).

     

    WHEREAS,
      the parties hereto entered into the Agreement to provide for the terms of
      Executive’s employment by the Company, including the terms of his compensation
      therefor; 

     

    WHEREAS,
      pursuant to Section 5(f)(i) of the Agreement, Executive received Stock Options
      to purchase 350,000 shares of Common Stock of the Company, which Stock Options
      currently represents the right to purchase 493,524 shares of Common Stock at
      an
      exercise price of $0.167, as adjusted for subsequent mergers and stock
      combinations; and as of the date hereof, Executive has exercised the Stock
      Options relating to 164,508 shares of Common Stock, leaving 329,016 shares
      available for issuance pursuant to such Stock Options;

     

    WHEREAS,
      pursuant to Section 5(f)(ii) of the Agreement, Executive was entitled to receive
      additional stock options to maintain his ownership percentage at the levels
      specified therein (the “Anti-Dilution Options”) until the Company has raised
      gross proceeds of sales of equity securities equal to $50 million;

     

    WHEREAS,
      on February 15, 2004, pursuant to Section 5(f)(ii), Executive received an
      Anti-Dilution Option to purchase 184,555 shares of Common Stock (as adjusted)
      at
      an exercise price of $0.167 (as adjusted);

     

    WHEREAS,
      following the completion of the Company’s private placement on February 26, 2004
      and in accordance with Section 5(f)(ii) of the Agreement, Executive received
      an
      Anti-Dilution Option to purchase 79,658 shares of Common Stock at a price of
      $0.337 per share (as adjusted);

     

    WHEREAS,
      following the Company’s private placement in July 20, 2004 and in accordance
      with Section 5(f)(ii) of the Agreement, Executive received an Anti-Dilution
      Option to purchase 194,568 shares of Common Stock at a price of $0.337 per
      share
      (as adjusted);

     

    WHEREAS,
      following the completion of the Company’s private placement in October 2005, at
      which time the Company had raised aggregate gross proceeds from financing
      transactions of more than $32.5 million, Executive was entitled to receive,
      pursuant to Section 5(f)(ii) of the Agreement, an additional Anti-Dilution
      Option to purchase 87,950 shares of Common Stock; however, the Company and
      Executive agreed to delay the issuance of such option until such time as the
      Company’s 2004 Stock Incentive Plan (the “2004 Plan”) had been ratified by the
      Company’s stockholders;

     

    WHEREAS,
      on May 19, 2006, the Company sold 4,701,100 shares of Common Stock for gross
      proceeds of $40.0, and as a result of such offering, Executive is entitled
      to an
      Anti-Dilution Option to purchase 331,312 shares of Common Stock pursuant to
      Section 5(f)(ii) of the Agreement;

     

    WHEREAS,
      the Company’s stockholders ratified and approved the 2004 Plan on May 9,
      2006;

     

    WHEREAS,
      pursuant to Section 409A of the Internal Revenue Code of 1986, as amended (the
      “Code”), which section of the Code was signed into law in November 2005, stock
      options granted at an exercise price less than the fair market value of the
      Common Stock on the date of grant are considered “non-qualified deferred
      compensation” and are subject to certain adverse tax consequences;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    WHEREAS,
      pursuant to certain regulations promulgated by the U.S. Department of Treasury
      under Section 409A provide that an in-the-money stock option granted prior
      to
      the effective date of Section 409A that vests after such date may be amended
      in
      order to comply with Section 409A by, among other things, increasing the option
      exercise price to an amount equal to the fair market value of the Common Stock
      at the date such option was granted, and issuing shares of restricted Common
      Stock having a value equal to the incremental increase in the exercise price
      of
      such option, as amended;

     

    WHEREAS,
      the Company and Executive desire to (1) amend the Agreement in order to provide
      for an issuance of restricted shares of Common Stock in lieu of the
      Anti-Dilution Options to which Executive would be entitled as a result of the
      October 2005 and May 2006 financing transactions, (2) amend the Anti-Dilution
      Options issued on February 15, 2004, February 26, 2004 and July 20, 2004 in
      order to comply with Section 409A of the Code, and (3) confirm that, following
      the effectiveness of the actions and transactions contemplated hereby, Executive
      has no further rights under Section 5(f)(ii) of the Agreement.

     

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

     

    1.
      The
      fourth sentence of subparagraph (f)(ii) of Section 5 of the Agreement, as
      previously amended by Amendment No. 1 to the Agreement, is hereby amended and
      restated, as follows:

     

    “With
      respect to any additional Stock Options granted pursuant to this subparagraph
      (ii), such options shall (A) vest in two equal annual installments commencing
      on
      the date the Company’s obligation to issue such additional Stock Options is
      triggered, and (B) have an exercise price equal to the exercise price applicable
      to the Stock Options granted to Executive in accordance with subparagraph (i),
      as adjusted for stock splits, combinations, recapitalizations, mergers and
      the
      like.”

    

    2. In
      lieu
      of the Anti-Dilution Option grant of 87,950 shares of Common Stock (exercisable
      at a price of $0.175 per share) to which Executive was entitled as a result
      of
      the October 2005 financing, the Company shall issue to Executive pursuant to
      the
      2004 Plan, and the Executive shall receive, 85,000 shares of restricted Common
      Stock, which shares shall vest in two equal installments of 42,500 shares each
      on October 24, 2006 and October 24, 2007, respectively. 

    

    3.
       In
      lieu
      of the Anti-Dilution Option grant of 331,312 shares of Common Stock to which
      Executive was entitled as a result of the May 2006 financing, the Company shall
      issue to Executive pursuant to the 2004 Plan, and the Executive shall receive,
      325,000 shares of restricted Common Stock, which shares shall vest in two equal
      installments of 162,500 shares each on May 19, 2007 and May 19, 2008,
      respectively.

    

    4.
       Amendment
      of Original Stock Options.
      In
      accordance with Code Section 409A and certain rules and regulations promulgated
      thereunder, the Stock Options issued to Executive on November 1, 2003 pursuant
      to the original terms of the Agreement shall be amended in order to increase
      the
      exercise price to $0.833 per share, the then fair market value of the Common
      Stock (as adjusted). In consideration for the increase in the exercise price
      of
      such option, the Company shall issue to Executive and Executive shall be
      entitled to receive, pursuant to the 2004 Plan, 57,613 shares of restricted
      Common Stock, which shares shall vest in their entirety on January 1,
      2007.

    

    5.
       Amendment
      of February 15, 2004 Anti-Dilution Option.
      In
      accordance with Code Section 409A and certain rules and regulations promulgated
      thereunder, the Anti-Dilution Option issued to Executive on February 15, 2004
      shall be amended in order to increase the exercise price to $1.014 per share,
      the then fair market value of the Common Stock (as adjusted). In consideration
      for the increase in the exercise price of such option, the Company shall issue
      to Executive and Executive shall be entitled to receive, pursuant to the 2004
      Plan, 4,313 shares of restricted Common Stock, two-thirds of which shares shall
      vest on January 1, 2007 and the remaining one-third shall vest on February
      15,
      2007. 

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    6. Amendment
      of February 26, 2004 Anti-Dilution Option.
      In
      accordance with Code Section 409A and certain rules and regulations promulgated
      thereunder, the Anti-Dilution Option issued to Executive on February 26, 2004
      shall be amended in order to increase the exercise price to $1.68 per share,
      the
      then fair market value of the Common Stock (as adjusted). In consideration
      for
      the increase in the exercise price of such option, the Company shall issue
      to
      Executive and Executive shall be entitled to receive, pursuant to the 2004
      Plan,
      3,765 shares of restricted Common Stock, two-thirds of which shares shall vest
      on January 1, 2007 and the remaining one-third shall vest on February 26,
      2007.

    

    7. Amendment
      of July 20, 2004 Anti-Dilution Option.
      In
      accordance with Code Section 409A and certain rules and regulations promulgated
      thereunder, the Anti-Dilution Option issued to Executive on July 20, 2004 shall
      be amended in order to increase the exercise price to $2.37 per share, the
      then
      fair market value of the Common Stock (as adjusted). In consideration for the
      increase in the exercise price of such option, the Company shall issue to
      Executive and Executive shall be entitled to receive, pursuant to the 2004
      Plan,
      9,196 shares of restricted Common Stock, two-thirds of which shares shall vest
      on January 1, 2007 and the remaining one-third shall vest on July 20,
      2007.

    

    8. Executive
      acknowledges and agrees that the grants of restricted stock pursuant to
      paragraphs 2 through 7 of this Amendment shall be the only additional grants
      of
      equity securities of the Company to which Executive is entitled under Section
      5(f)(ii) of the Agreement, as amended to date, and that Executive shall have
      no
      other rights, and the Company shall have no other obligations, pursuant to
      Section 5(f)(ii). For future sales and issuances of equity securities of the
      Company, as provided under Section 5(f)(ii), Executive shall be diluted pro
      rata
      along with all other holders of securities of the Company.

    

    9. All
      capitalized terms used but not defined herein shall have the meanings ascribed
      to them in the Agreement.

    

    10. Except
      as
      amended or modified by this Amendment, the parties hereby confirm all other
      terms and provisions of the Agreement.

    

    11. This
      Amendment may be executed in any number of counterparts, each of which shall
      constitute an original, but all of which together shall constitute one and
      the
      same instrument.

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Amendment No. 3 as of
      the
      date first above written.

     

    

    
      	
              COMPANY:

               

              Hana
                Biosciences, Inc.

               

               

              By: /s/
                John P.
                Iparraguirre                                              
                

              Its:
                Chief Financial Officer

            	
              EXECUTIVE:

               

               

               

               

              /s/
                Mark J.
                Ahn                                       
                

              Mark
                J. Ahn, Ph.D.

            

    

     

    

    

    
      
         

      

      
        3HANA
      BIOSCIENCES, INC.

     

    RESTRICTED
      STOCK AGREEMENT

     

    This
      Restricted Stock Agreement (this
      “Agreement”)
      made
      effective as of June 30, 2006, is by and between Hana Biosciences, Inc., a
      Delaware corporation having a place of business at 400 Oyster Point Boulevard,
      Suite 215, South San Francisco, California 94080 (the “Company”),
      and
      Mark J. Ahn (“Executive”).

     

    INTRODUCTION

     

    A.       Pursuant
      to an Employment Agreement between the Company and Executive dated November
      1,
      2003, as amended October 21, 2004, December 19, 2005, and June 30, 2006, (the
      “Employment
      Agreement”)
      and
      certain Stock Option Agreements between the Company and the Executive dated
      November 1, 2003, February 15, 2004, February 26, 2004, and July 20, 2004 (each
      a “Stock
      Option”
and,
      collectively, the “Stock
      Options”)
      the
      Company granted Executive options to purchase an aggregate of 952,305 shares
      of
      the Company’s common stock, as adjusted to reflect stock splits, combinations,
      mergers and other adjustments prior to the date hereof.

    

    B.       On
      May 9, 2006, Executive exercised a portion of the November 1, 2003 Stock Option
      relating to 164,508 shares, and following such exercise there are 787,797 shares
      remaining available for exercise under the Stock Options.

     

    C.       Due
      to the tax implications of Section 409A of the Internal Revenue Code of 1986,
      as
      amended (the “Code”),
      the
      Company and Executive have agreed to amend the Stock Options in order to
      increase the exercise prices thereof to equal the fair market value of the
      common stock as of the dates of each Stock Option pursuant to an Amendment
      to
      Stock Option Agreements of even date herewith between the Company and
      Executive.

    

    D.       To
      compensate Executive for the increase to the exercise prices, the Company
      desires to issue Executive 74,887 shares of restricted common stock, subject
      to
      the terms set forth herein and subject to the terms of the Stock Incentive
      Plan.

    

    E.       Additionally,
      under Section 5(f) of the Employment Agreement, Executive was entitled to
      receive an aggregate of 419,262 options following the Company’s completion of
      its October 2005 private placement offering and the Company’s completion of its
      May 2006 registered direct offering (the “Anti-Dilution
      Options”).
      In
      lieu of receiving the Anti-Dilution Options, Company desires to issue 410,000
      shares of restricted common stock of the Company to Executive and Executive
      desires to accept such restricted common stock of the Company is lieu of
      receiving the Anti-Dilution Options subject to the terms set forth herein and
      subject to the terms of the Stock Incentive Plan. 

     

    AGREEMENT

     

    Now,
      Therefore,
      it is
      agreed as follows:

     

    1.       Grant
      of Stock.
      Subject
      to the terms and provisions of this Agreement and the Company’s 2004 Stock
      Incentive Plan, as amended, (the “Stock
      Incentive Plan”),
      the
      Company hereby grants to Executive 484,887 shares of Company common stock (such
      shares are referred to hereinafter as the “Shares”).
      Upon
      the execution of this Agreement, the Shares shall be registered on the books
      of
      the Company, and the Company shall cause the transfer agent and registrar of
      its
      common stock to issue certificates in Executive’s name evidencing the Shares,
      each certificate for an amount of Shares equaling the number of Shares which
      vest on each date set forth in Paragraph 4 hereof (collectively, the
“Stock
      Certificates”).
      Executive shall immediately thereafter deposit with the Company, together with
      corresponding stock powers endorsed in blank by Executive, the Stock
      Certificates to be held by the Company until such time as the restrictions
      set
      forth herein and under the Stock Incentive Plan have lapsed for the respective
      Shares pursuant to paragraph 4 of this Agreement. The Stock Certificates shall
      each bear a legend in substantially the following form:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The
      transferability of this certificate and the shares of Common Stock represented
      by it are subject to the terms and conditions of a Restricted Stock Agreement
      dated June 30, 2006 entered into between the registered owner and the Company.
      A
      copy of the agreement is on file in the office of the secretary of the
      Company.

    

     

    2.       Rights
      of Executive.
      Upon
      the execution of this Agreement and issuance of the Shares, Executive shall
      become a stockholder with respect to the Shares and shall have all of the rights
      of a stockholder with respect to the Shares, including the right to vote the
      Shares and to receive all dividends and other distributions paid with respect
      to
      the Shares; provided,
      however,
      that
      the Shares shall be subject to the restrictions set forth in paragraph 3 of
      this
      Agreement.

     

    3.       Restrictions.
      Executive agrees that, in addition to the restrictions set forth in the Stock
      Incentive Plan, at all times prior to the vesting of the Shares as contemplated
      by paragraph 4 hereof:

     

           (a)       Executive
      shall not sell, transfer, pledge, hypothecate or otherwise encumber the Shares;
      and

     

           (b)       If
      Executive’s employment with the Company is terminated for any reason whatsoever,
      or Executive violates the terms of any confidentiality agreement,
      non-solicitation covenant or covenant not to compete, however delineated, then,
      subject to paragraph 4 hereof, Executive shall, for no consideration, forfeit
      and transfer to the Company all of the Shares that remain subject to the
      restrictions set forth in this paragraph 3.

     

    4.       Lapse
      of Restrictions.
      The
      restrictions set forth in paragraph 3 shall lapse: (i) with respect to 42,500
      Shares on October 24, 2006; (ii) with respect to 57,613 Shares on January 1,
      2007; (iii) with respect to 4,313 Shares on February 15, 2007; (iv) with respect
      to 3,765 Shares on February 26, 2007; (v) with respect to 162,500 Shares on
      May
      19, 2007; (vi) with respect to 9,196 Shares on July 21, 2007; (vii) with respect
      to 42,500 Shares on October 24, 2007; and (viii) with respect to 162,500 of
      the
      Shares on May 19, 2008. Upon request of Executive at any time after the date
      that the restrictions set forth in paragraph 3 of this Agreement have lapsed
      with respect to any Shares and such Shares have become vested, free and clear
      of
      all restrictions, except as provided in the Stock Incentive Plan, the Company
      shall remove any restrictive notations placed on the books of the Company and
      the respective Stock Certificates in connection with such
      restrictions.

     

    5.       Copy
      of 2004 Stock Incentive Plan.
      By the
      execution of this Agreement, Executive acknowledges receipt of a copy of the
      Stock Incentive Plan, the terms of which are hereby incorporated herein by
      reference and made a part hereof by reference as if set forth in
      full.

     

        
      6.         Administration.
      This
      Agreement shall at all times be subject to the terms of the Stock Incentive
      Plan. The Board of Directors of the Company (the “Board”)
      or, if
      delegated to a committee of the Board of Directors of the Company under the
      Stock Incentive Plan, the committee (the “Committee”)
      shall
      have the sole and complete discretion with respect to all matters reserved
      to it
      by the Stock Incentive Plan and decisions of the Board or the Committee with
      respect thereto and to this Agreement shall be final and binding upon Executive.
      In the event of any conflict between the terms of this Agreement and the Stock
      Incentive Plan, the provisions of the Stock Incentive Plan shall govern and
      control.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    7.       Continuation
      of Employment.
      This
      Agreement shall not confer upon Executive, and shall not be construed to confer
      upon Executive, any right to continue in the employ of the Company for any
      period of time, and shall not limit the rights of the Company in its sole
      discretion (absent any other agreements to the contrary), to terminate the
      employment of Executive at any time, with or without cause, for any reason
      or no
      reason, or to change Executive’s job responsibilities or rate of
      compensation.

     

    8.       Withholding
      of Tax.
      To the
      extent that the receipt of the Shares or the lapse of any restrictions thereon
      results in income to Executive for federal or state income-tax purposes,
      Executive shall deliver to the Company at the time of such receipt or lapse,
      as
      the case may be, such amount of money or shares of unrestricted stock as the
      Company may require to meet its withholding obligation under applicable tax
      laws
      or regulations, and, if Executive fails to do so, the Company is authorized
      to
      withhold from any cash or stock remuneration then or thereafter payable to
      Executive any tax required to be withheld by reason of such resulting
      compensation income. The Executive may have Shares withheld to satisfy the
      withholding tax obligation pursuant to an election under the Stock Incentive
      Plan.

     

    9.       Section
      83(b) Election.
      Executive understands that he (and not the Company) shall be responsible for
      his
      own federal, state, local or foreign tax liability and any of his other tax
      consequences that may arise as a result of the transactions contemplated by
      this
      Agreement. Executive shall rely solely on the determinations of his tax advisors
      or his own determinations, and not on any statements or representations by
      the
      Company or any of its agents, with regard to all such tax matters. Executive
      understands that Section 83 of the Code, taxes as ordinary income the difference
      between the amount paid for the Shares and the fair market value of the Shares
      as of the date any restrictions on the Shares lapse. In this context,
“restriction” includes without limitation the vesting restrictions set forth in
      paragraph 4 hereof. “Restriction” with respect to officers, directors and 10%
      stockholders also means the period during which such officer, director and
      10%
      stockholders could be subject to suit under Section 16(b) of the Securities
      Exchange Act of 1934 in connection with a sale. Executive understands that
      Executive may elect to be taxed at the time the Shares are received rather
      than
      when and as the restrictions on the Shares lapse or expire by filing an election
      under Section 83(b) of the Code with the Internal Revenue Service within 30
      days
      from the date of the acquisition. In the event Executive files an election
      under
      Section 83(b) of the Code, such election shall contain all information required
      under the applicable treasury regulation(s) and Executive shall deliver a copy
      of such election to the Company contemporaneously with filing such election
      with
      the Internal Revenue Service.

     

    EXECUTIVE
      ACKNOWLEDGES THAT IT IS EXECUTIVE’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO
      FILE TIMELY THE ELECTION UNDER SECTION 83(B) OF THE CODE, EVEN IF EXECUTIVE
      REQUESTS THAT THE COMPANY OR ITS REPRESENTATIVES MAKE THIS FILING ON EXECUTIVE’S
      BEHALF.

     

    10.       Governing
      Law.
      This
      Agreement, in its interpretation and effect, shall be governed by the laws
      of
      the State of Delaware applicable to contracts executed and to be performed
      therein.

     

    11.       Amendments.
      This
      Agreement may be amended only by a written agreement executed by the Company
      and
      Executive.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    12.       Entire
      Agreement.
      This
      Agreement embodies the entire agreement made between the parties hereto with
      respect to matters covered herein and shall not be modified except in accordance
      with paragraph 11 of this Agreement.

     

    13.       Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original, but all of which shall constitute but one and the same
      agreement. Signatures hereto may be delivered by facsimile or other means of
      electronic transmission, and signatures so delivered shall be valid and binding
      to the same extent as original signatures.

     

    SIGNATURES
      APPEAR ON FOLLOWING PAGE

     

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    In
      Witness Whereof,
      the
      parties have executed this Restricted Stock Agreement to be effective as of
      the
      date first set forth above.

     

    
      	 	 	 
	 	HANA
              BIOSCIENCES, INC.:
	 
 	 
 	 
 
	 	By:  	/s/
              John P. Iparraguirre
	 	
              
John
              P. Iparraguirre
	 	Vice
              President, Chief Financial Officer
	 	
            
	 	
              EXECUTIVE:

            
	 	 
	 	 
	 	
              /s/
                Mark J. Ahn
                
                

            
	 	
              Print
                Name: Mark J. Ahn

            

     

    
      
         

      

      
        5

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