Document:

Exhibit 10.5

STOCK OPTION GRANT PROGRAM 

FOR

NONEMPLOYEE DIRECTORS UNDER THE 

PONIARD PHARMACEUTICALS, INC. 2004 INCENTIVE 

COMPENSATION PLAN

(as amended June 15, 2005, September 27, 2006 and
February 7, 2007)

The
following provisions set forth the terms of the stock option grant program (the
“Program”) for nonemployee directors of Poniard Pharmaceuticals, Inc. (the
“Company”) under the Company’s 2004 Incentive Compensation Plan (the
“Plan”).  The following terms are intended
to supplement, not alter or change, the provisions of the Plan, and in the
event of any inconsistency between the terms contained herein and in the Plan,
the Plan shall govern.  All capitalized
terms that are not defined herein shall be as defined in the Plan.

1.             Eligibility

Each
director of the Company elected or appointed to the Board who is not otherwise
an employee of the Company or any Related Corporation (an “Eligible Director”)
shall be eligible to receive New Grants and Annual Grants under the Plan, as
discussed below.

2.             New
Grants

Each
Eligible Director shall receive a nonqualified stock option to purchase 20,000
shares of Common Stock (“New Grant”) upon such Eligible Director’s initial
election or appointment to the Board. 
New Grants shall vest and become exercisable in two equal installments
according to the schedule set forth in Section 4 below.

3.             Annual
Grants

Beginning
with the 2004 annual meeting of shareholders, each Eligible Director shall
automatically receive a nonqualified stock option to purchase 10,000 shares of
Common Stock immediately following each year’s annual meeting of shareholders
(each, an “Annual Grant”); provided that any Eligible Director who received a
New Grant within five months prior to an annual meeting of shareholders shall
not receive an Annual Grant until the next year’s annual meeting.  Annual Grants shall vest and become
exercisable in two equal installments according to the schedule set forth in
Section 4.

4.             Vesting
and Exercisability

Options shall vest and
become exercisable according to the following schedule:

(a)           New
Grants

 

 

	
  Period of Optionee’s Continuous

  Service as a Director From

  the Date the Option Is Granted 

  	
   

  	
  Portion of Grant

  That Is Vested and Exercisable

  	
   

  
	
  One year

  	
   

  	
  50

  	
  %

  
	
  Two years

  	
   

  	
  100

  	
  %

  

 

(b)           Annual
Grants

 

 

	
  Period of Optionee’s Continuous

  Service as a Director From

  the Date the Option Is Granted 

  	
   

  	
  Portion of Grant

  That Is Vested and Exercisable

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Upon first
  annual meeting of shareholders after grant

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Upon second annual
  meeting of shareholders after grant

  	
   

  	
  100

  	
  %

  

 

Subject to the
exercisability schedule described above, each option may be exercised in whole
or in part at any time; provided, however, that an option may not be exercised
for less than a reasonable number of shares at any one time, as determined by
the Plan Administrator.

5.             Option Exercise Price

The
exercise price of an option shall be the fair market value of the Common Stock
on the date of grant.

6.             Manner
of Option Exercise

An option shall be
exercised by giving the required notice to the Company, stating the number of
shares of Common Stock with respect to which the option is being exercised,
accompanied by payment in full for such Common Stock, which payment may be, to
the extent permitted by applicable laws and regulations, in whole or in part
(a) in cash or check, (b) in shares of Common Stock owned by the
Eligible Director for at least six months (or any shorter period necessary to
avoid a charge to the Company’s earnings for financial reporting purposes)
having a fair market value equal to the aggregate option exercise price, or
(c) if and so long as the Common Stock is registered under the Exchange
Act, by delivery of a properly executed 

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exercise notice,
together with irrevocable instructions to a broker, to promptly deliver to the
Company the amount of proceeds to pay the exercise price, all in accordance
with the regulations of the Federal Reserve Board.

7.             Term
of Options

Each
option shall expire upon the earlier of ten years from the date of grant or
five years after an Eligible Director’s termination of service as a director,
as follows:

(a)           In the event that an Eligible
Director ceases to be a director of the Company for any reason other than the
death of the Eligible Director, the unvested portion of any option granted to
such Eligible Director shall terminate immediately and the vested portion of
the option may be exercised by the Eligible Director only within five years
after the date he or she ceases to be a director of the Company or prior to the
date on which the option expires by its terms, whichever is earlier.

(b)           In the event of the death of an
Eligible Director, the unvested portion of any option granted to such Eligible
Director shall terminate immediately and the vested portion of the Option may
be exercised only within five years after the date the Eligible Director ceases
to be a director or prior to the date on which the option expires by its terms,
whichever is earlier, by the personal representative of the Eligible Director’s
estate, the person(s) to whom the Eligible Director’s rights under the option
have passed by will or the applicable laws of descent and distribution or the
beneficiary designated pursuant to Section 12 of the Plan.

8.             Transferability

During an Eligible Director’s
lifetime, an option may be exercised only by the Eligible Director or a
permitted assignee or transferee of the Eligible Director (as provided
below).  No options granted under the
Program may be sold, assigned, pledged or transferred by the Eligible Director
or made subject to attachment or similar proceedings other than by
(a) will or the applicable laws of descent and distribution, (b) gift
or other transfer to either (i) a spouse or other immediate family member
or (ii) any trust, partnership or other entity in which the Eligible
Director or such Eligible Director’s spouse or other immediate family member
has a substantial beneficial interest; or (c) the designation by an
Eligible Director in writing during the Eligible Director’s lifetime of a beneficiary
to receive and exercise options in the event of the Eligible Director’s death
(as provided in Section 12 of the Plan); provided, however, that any option so
assigned or transferred shall be subject to 
the terms and conditions of the Plan and the instrument evidencing the
option.  Any attempt to transfer, assign,
pledge, hypothecate or otherwise dispose of any option under the Plan or of any
right or privilege conferred thereby, contrary to the provisions of the Plan,
or 

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the sale or levy
or any attachment or similar process upon the rights and privileges conferred
hereby, shall be null and void.

9.             Amendment

The
Board may amend the provisions contained herein in such respects as it deems
advisable.  Any such amendment shall not,
without the consent of the Eligible Director, impair or diminish any rights of
an Eligible Director under an outstanding option.

10.          Effective Date

The
Program shall become effective on the date approved by the Company’s Board.

Provisions
of the Plan (including any amendments) that are not discussed above, to the
extent applicable to Eligible Directors, shall continue to govern the terms and
conditions of options granted to Eligible Directors.

Effective:  May 18, 2004

Section 2
amended: June 15, 2005 

Sections
2 and 3 amended:  September 27, 2006 (to
reflect one-for-six reverse 

stock split effective September 22, 2006 and to reflect change of company name)

Sections
2 and 3 amended:  February 7, 2007 (to
increase "New Grant" to 20,000 shares from 8,333 shares and
"Annual Grant" to 10,000 shares from 3,333 shares)

 4Exhibit 10.6

PONIARD PHARMACEUTICALS, INC.

NONQUALIFIED STOCK OPTION AGREEMENT

UNDER THE RESTATED 2004 INCENTIVE COMPENSATION PLAN

(Nonemployee Directors)

THIS AGREEMENT is made between
Poniard Pharmaceuticals, Inc. (“Poniard”) and «Name».  Capitalized terms not explicitly defined in
this Agreement but defined in the Poniard Pharmaceuticals, Inc. 2004 Incentive
Compensation Plan (the “Plan”) shall have the same definitions as in the Plan.

Grant Date.  The effective date of this Agreement is «Date» (the “Grant Date”).

Grant.  The Board of Directors hereby grants to you
an Option to purchase «Shares» shares
(the “Shares”) of Poniard Common Stock at the Option price of $«Price» per share (the “Option”).  The Option is granted pursuant to the Stock
Option Grant Program for Nonemployee Directors (the “Program”) under the Plan
and is subject to the terms and conditions of the Program and the Plan.

Nonqualified Stock Option. This Option is granted as a nonqualified stock option, which is not
intended to qualify as an “incentive stock option” as that term is used under
Section 422 of the Internal Revenue Code of 1986, as amended.

Term.  The term of the Option is ten years from the
Grant Date, unless sooner terminated.

Exercise.  During your lifetime only you or a permitted
transferee or assignee can exercise the Option. 
The Plan permits exercise of the Option by the personal representative
of your estate or the beneficiary thereof following your death.

Termination of Option.  The unvested portion of the
Option will terminate automatically and without further notice immediately upon
termination of your service as a member of the Board of Directors of Poniard (a
“Director”) for any reason.  The vested
portion of the Option will remain exercisable for five years after the date you
cease to be a Director or until the date the Option expires by its terms,
whichever is earlier.

It is your responsibility to be aware of the date on
which the Option terminates and is no longer exercisable.

Vesting and Exercisability.  Subject to your continuous
services as a Director, fifty percent (50%) of the Option will vest and become
exercisable immediately following the «Mt1» annual
meeting of shareholders.  Subject to your
continuous services as a Director, the remaining fifty percent (50%) of the
Option will vest and become exercisable immediately following the «Mt2» annual meeting of shareholders.

Terms of Payment.  The Option price must be paid in full at the
time of exercise in cash or by check acceptable to the Compensation Committee or
to the extent permitted by the Compensation Committee, in Poniard Common Stock
(which generally must have been held for at least six months), delivery of an
exercise notice, together with irrevocable instructions to a broker to deliver
to Poniard the amount of proceeds necessary to pay the exercise price, or any
other form of consideration permitted by 
the Compensation Committee, or a combination thereof, as the
Compensation Committee may determine. 
Common Stock delivered as full or partial payment upon exercise will be
valued at the fair market value of the Common Stock.  In addition, you must pay or otherwise make
provision for any applicable tax withholding amounts that may become due on
exercise before Poniard will be obligated to issue any Shares to you.

Dividend, Stock Split, Combination or Reclassification.  If, from
time to time, during the term of this Agreement, there is any stock dividend,
stock split, combination of shares, or reclassification of the outstanding
Common Stock, then any and all new, substituted or additional shares to which
you are entitled by reason of this Agreement will be included in the word
“Shares” for all purposes of this Agreement with the same force and effect as
the Shares presently subject to this Agreement and there will be a
corresponding adjustment to the price for each Share.

Acceptance and Acknowledgment.  By your signature below, you
accept the Option described above and in the Plan and the Program, and
acknowledge receipt of a copy of this Agreement, the Plan, the Program and the
Plan Summary.  You also acknowledge that
you have read and understand the Plan and the Program, including the provisions
of Section 13 of the Plan.

	
  

  	
   

  	
  PONIARD PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Anna Lewak Wight

  
	
   

  	
   

  	
   

  	
  Vice President, Legal

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PARTICIPANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Taxpayer I.D.:

  	
   

  
								

 

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