Document:

exv10w35

 

EXHIBIT 10.35

July 5, 2006

Gregory
Schafer

6016 Chabolyn Terrace

Oakland, California 94618

Dear Greg,

          On behalf of Onyx Pharmaceuticals, it is a great pleasure to offer you the position of Vice
President and Chief Financial Officer, reporting to me. In this position you will have
responsibility for the finance & accounting, and information technology functions. In making this
offer, we are expressing our enthusiastic support for the skills and commitment you will bring to
Onyx at this exciting time. We are pleased to offer you the following:

Salary: Your annual salary will be $260,000 paid semi-monthly, less required deductions
and withholdings.

Bonus: You are eligible to receive annual bonus amounts of up to 30% of your base salary
if Onyx achieves its corporate objectives and you achieve the performance objectives set for you.
For 2006, you will receive a sign-on bonus of $35,000, and be eligible to receive a bonus amount of
up to $43,000, for a total bonus of $78,000 (30% of base) for 2006 if target bonus objectives are
achieved. Bonus payments will be subject to required deductions and withholdings. The Company
shall have the sole discretion to determine whether you have earned any bonus set forth in this
paragraph and, if so, the amount of any such bonus.

Stock: Subject to approval by our Board of Directors, you will be granted an option to
purchase 100,000 Onyx shares at the market price on your start date. The options will be issued
pursuant to the Company’s standard Option Agreement and will be subject to the terms of the
governing stock option plan. These options will be exercisable in installments based upon your
continued employment as follows: 25% after the first twelve months, 1/48 per month thereafter, for
a total of a four-year vesting period. In addition to these options, Onyx employees are eligible
for annual option grants based on individual performance.

Benefits: You will be eligible to participate in the Company’s group insurance and
benefits plans pursuant to the terms of these plans, which currently include:

	 	1.	 	Medical coverage provided by Blue Shield; dental and orthodontic coverage
provided by Delta Dental;
	 
	 	2.	 	Life insurance equal to two times your annual salary;
	 
	 	3.	 	Short-Term and Long-Term Disability;
	 
	 	4.	 	Vision Plan;
	 
	 	5.	 	Flex-125 Cafeteria Plan including premiums, and medical expense and dependent
care reimbursement;
	 
	 	6.	 	Employee Stock Purchase Plan;
	 
	 	7.	 	The Onyx 401(k) Plan through Great-West Life;
	 
	 	8.	 	The tuition reimbursement program; and
	 
	 	9.	 	Membership in the Patelco Credit Union.

 

 

You may also choose to have additional Voluntary Term Life for you and your eligible dependents
deducted directly from your paycheck. You will accrue three weeks (120 hours) of vacation per
year. Up to ten paid sick days (eighty hours) may be taken per year in the event of injury or
illness, and there will be ten (10) Company-designated, paid holidays per calendar year.

You will be eligible to enter into the Onyx Executive Change In Control Severance Benefits
Agreement, in the form enclosed with this letter, once you begin your employment. This agreement
will set forth the terms of the change of control benefits that you will be entitled to.

This offer is contingent upon your signing our Proprietary Information Agreement. We ask that you
return one signed copy of the enclosed Proprietary Information Agreement with your offer letter and
keep the other copy for your records.

Onyx is an “at will” employer. This means that either you or Onyx may terminate your employment at
any time, with or without cause, and with or without advance notice. In addition, the employment
terms of this letter supersede any other agreements or promises made to you by anyone, whether oral
or written. No employee or representative of the Company, other than its president, has the
authority to make any express or implied agreement contrary to the foregoing. This offer letter
may only be changed in a written document signed by you and me.

Please indicate your acceptance of the terms of this employment offer by signing and dating one
copy and returning it, along with the signed Proprietary Information Agreement to me as soon as
possible, but no later than July 7, 2006, the offer expiration date.

We enthusiastically anticipate your joining our team. Should you have any questions regarding the
provisions of employment, please do not hesitate to contact me.

Sincerely,

/s/ Laura A. Brege

Laura A. Brege

Executive Vice President, Chief Business Officer

 

I accept Onyx Pharmaceuticals’ offer of employment in the terms stated.

	 	 	 
	/s/ Gregory W. Schafer

	 	/s/ July 7, 2006
	 

	 	 
	Greg Schafer

	 	Date

Start Date July 10, 2006exv10w36

 

EXHIBIT 10.36

Onyx Pharmaceuticals, Inc. 

Stock Bonus Award Grant Notice

(2005 Equity Incentive Plan)

Onyx Pharmaceuticals, Inc. (the “Company”), pursuant to Section 7(b) of the Company’s 2005 Equity
Incentive Plan (the “Plan”), hereby awards to Participant the right to acquire that number of
shares of the Company’s Common Stock set forth below (the “Award”). This Award shall be evidenced
by a Stock Bonus Award Agreement (the “Award Agreement”). This Award is subject to all of the
terms and conditions as set forth herein and in the applicable Award Agreement and the Plan, each
of which are attached hereto and incorporated herein in their entirety.

	 	 	 
	Participant:
	 	 
	 

	 	 
	Date of Grant:
	 	 
	 

	 	 
	Vesting Commencement Date:
	 	 
	 

	 	 
	Number of Shares Subject to Award:
	 	 
	 

	 	 
	Payment for Common Stock:

	 	Participant’s services to the Company

Vesting Schedule: The shares subject to the Award shall vest with respect to 1/6
of the shares on the date six (6) months from the Vesting Commencement Date, and with respect
to the remaining shares in a series of ten (10) successive equal quarterly installments over the
two-and-one-half (21/2)-year period measured from the six (6)-month anniversary of the Vesting
Commencement Date; provided, however, that the Participant’s Continuous Service has not terminated
prior to each such vesting date.

Additional Terms/Acknowledgements: Participant acknowledges receipt of, and understands and agrees
to, this Stock Bonus Award Grant Notice, the Award Agreement, and the Plan. Participant further
acknowledges that as of the Date of Grant, this Stock Bonus Award Grant Notice, the Award Agreement
and the Plan set forth the entire understanding between Participant and the Company regarding the
acquisition of the Common Stock pursuant to the Award specified above and supersede all prior oral
and written agreements on that subject with the exception of (i) Awards previously granted and
delivered to Participant under the Plan, and (ii) the following agreements only:

	 	 	 	 	 
	 

	 	Other Agreements:
	 	Executive Change In Control Severance Benefits
Agreement

	 	 	 	 	 	 	 
	Onyx Pharmaceuticals, Inc.	 	Participant
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 
	 	 
	 

	 	Signature
	 	 	 	Signature
	 
	 	 	 	 	 	 
	Title:

	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Attachments: Award Agreement and 2005 Equity Incentive Plan

 

 

Onyx Pharmaceuticals, Inc. 

2005 Equity Incentive Plan

Stock Bonus Award Agreement

          Pursuant to the Stock Bonus Award Grant Notice (“Grant Notice”) and this Stock Bonus Award
Agreement (“Agreement”), Onyx Pharmaceuticals, Inc. (the “Company”) has awarded you (“Participant”)
the right to acquire shares of Common Stock from the Company pursuant to Section 7(b) of the
Company’s 2005 Equity Incentive Plan (the “Plan”) for the number of shares indicated in the Grant
Notice (collectively, the “Award”). The Award is granted in exchange for past or future services
to be rendered by you to the Company or an Affiliate. In the event additional consideration is
required by law so that the Common Stock acquired under this Agreement is deemed fully paid and
nonassessable, the Board shall determine the amount and character of such additional consideration
to be paid. Defined terms not explicitly defined in this Agreement but defined in the Plan shall
have the same definitions as in the Plan.

          The details of your Award, in addition to those set forth in the Grant Notice, are as follows.

          1. Acquisition of Shares. By signing the Grant Notice, you hereby agree to acquire
from the Company, and the Company hereby agrees to issue to you, the aggregate number of shares of
Common Stock specified in your Grant Notice for the consideration set forth in Section 3 and
subject to all of the terms and conditions of the Award and the Plan. You may not acquire less
than the aggregate number of shares specified in the Grant Notice.

          2. Closing. Your acquisition of the shares shall be consummated as follows:

               (a) You will acquire beneficial ownership of the shares by delivering your Grant Notice,
executed by you in the manner required by the Company, to the Corporate Secretary of the Company,
or to such other person as the Company may designate, during regular business hours, on the date
that you have executed the Grant Notice (or at such other time and place as you and the Company may
mutually agree upon in writing) (the “Closing Date”) along with any consideration, other than your
past or future services, required to be delivered by you by law on the Closing Date and such
additional documents as the Company may then require.

               (b) The shares under the Award shall be maintained by the Company’s transfer agent in
restricted book entry form. From time to time the Company may provide written instructions to its
transfer agent to release such shares from restricted book entry form. You agree that
certificates representing shares under the Award cannot be issued for any of such shares that are
Unvested Shares. The Company shall instruct the transfer agent to release Vested Shares from
restricted book entry form upon the vesting of such shares, and to transfer such Vested Shares
electronically to your broker, which shall be E*Trade.

          3. Consideration. Unless otherwise required by law, the shares of Common Stock to be
delivered to you on the Closing Date shall be deemed paid, in whole or in part in exchange for past
and future services to be rendered to the Company or an Affiliate in the amounts and to the extent
required by law.

 

 

          4. Vesting. The shares will vest as provided in the Vesting Schedule set forth in
your Grant Notice, provided that vesting shall cease upon the termination of your Continuous
Service. “Vested Shares” shall mean shares that have vested in accordance with the Vesting
Schedule, and “Unvested Shares” shall mean shares that have not vested in accordance with the
Vesting Schedule.

          5. Right of Reacquisition. The Company shall simultaneously with the termination of
your Continuous Service automatically reacquire (the “Reacquisition Right”) for no consideration
all of the Unvested Shares, unless the Company agrees to waive its Reacquisition Right as to some
or all of the Unvested Shares. Any such waiver shall be exercised by the Company by written notice
to you or your representative within ninety (90) days after the termination of your Continuous
Service, and the Company will in such case also instruct its transfer agent to release to you the
number of Unvested Shares not being reacquired by the Company. If the Company does not waive its
reacquisition right as to all of the Unvested Shares, then upon such termination of your Continuous
Service, the transfer agent shall, upon the instruction of the Company, transfer to the Company the
number of Unvested Shares the Company is reacquiring. The Reacquisition Right shall expire when
all of the shares have become Vested Shares.

          6. Capitalization Changes. The number of shares of Common Stock subject to your
Award and referenced in your Grant Notice may be adjusted from time to time for changes in
capitalization pursuant to Section 12(a) of the Plan.

          7. Certain Corporate Transactions. In the event of a Corporate Transaction as
defined in the Plan, the Reacquisition Right may be assigned by the Company to the successor of the
Company (or such successor’s parent corporation), if any, in connection with such transaction. To
the extent the Reacquisition Right remains in effect following such transaction, it shall apply to
the new capital stock or other property received in exchange for the Common Stock in consummation
of the transaction, but only to the extent the Common Stock was at the time covered by such right.

          8. Securities Law Compliance. You may not be issued any Common Stock under your
Award unless the shares of Common Stock are either (i) then registered under the Securities Act of
1933, as amended (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 shall not receive
such Common Stock if the Company determines that such receipt would not be in material compliance
with such laws and regulations.

          9. Execution of Documents. You hereby acknowledge and agree that the manner selected
by the Company by which you indicate your consent to your Grant Notice is also deemed to be your
execution of your Grant Notice and of this Agreement. You further agree that such manner of
indicating consent may be relied upon as your signature for establishing your execution of any
documents to be executed in the future in connection with your Award.

          10. Rights as Stockholder. Subject to the provisions of this Agreement, you shall
have all rights and privileges of a stockholder of the Company with respect to the Unvested Shares.
You shall be deemed to be the holder of such shares for purposes of receiving any

 

 

dividends that may be paid with respect to such shares and for purposes of exercising any
voting rights relating to such shares, even if some or all of the shares are Unvested Shares.

          11. Transfer Restrictions. In addition to any other limitation on transfer created
by applicable securities laws, you shall not sell, assign, hypothecate, donate, encumber, or
otherwise dispose of any interest in the Common Stock while such shares of Common Stock are
Unvested Shares or continue to be held by the Company’s transfer agent in restricted book entry
form; provided, however, that an interest in such shares may be transferred pursuant to a qualified
domestic relations order as defined in the Internal Revenue Code of 1986, as amended (the “Code”)
or Title I of the Employee Retirement Income Security Act of 1974, as amended. After any Common
Stock has been released to you from restricted book entry form, you shall not sell, assign,
hypothecate, donate, encumber, or otherwise dispose of any interest in the Common Stock except in
compliance with the provisions herein, applicable securities laws and the Company’s policies,
including its Trading Window Policy and Insider Trading Policy and Policy Against Trading on the
Basis of Inside Information. Notwithstanding the foregoing, by delivering written notice to the
Company, in a form satisfactory to the Company, you may designate a third party who, in the event
of your death, shall thereafter be entitled to receive any distribution of Common Stock pursuant to
this Agreement.

          12. Non-transferability of the Award. Your Award (except for Vested Shares issued
pursuant thereto) is not transferable except by will or by the laws of descent and distribution.
In the event of the termination of your Continuous Service prior to the Closing Date, the closing
contemplated in this Agreement shall not occur.

          13. Restrictive Legends. The Common Stock issued under your Award shall be endorsed
with appropriate legends, if any, as determined by the Company.

          14. 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 service of the Company or any Affiliate, or on the part of the
Company or any Affiliate to continue such service. In addition, nothing in your Award shall
obligate the Company or any Affiliate, their respective stockholders, boards of directors, or
employees to continue any relationship that you might have as an Employee or Consultant of the
Company or any Affiliate.

          15. Withholding Obligations. At the time your Award is granted, or at any time
thereafter as requested by the Company, you hereby authorize withholding from any amounts payable
to you, or otherwise agree to make adequate provision in cash for, any sums required to satisfy the
federal, state, local and foreign tax withholding obligations of the Company or any Affiliate, if
any, which arise in connection with your Award. In the Company’s sole discretion, the Company may
elect, and you hereby authorize the Company, to withhold Vested Shares in such amounts as the
Company determines are necessary to satisfy your obligation pursuant to the preceding sentence.
Unless the tax withholding obligations of the Company and/or any Affiliate are satisfied, the
Company shall have no obligation to instruct its transfer agent to release shares under the Award
from restricted book entry form, and you agree that you shall in such case have no right to receive
such shares.

          16. Tax Consequences. You agree to review with your own tax advisors the federal,
state, local and foreign tax consequences of this investment and the transactions

 

 

contemplated by this Agreement. You shall rely solely on such advisors and not on any
statements or representations of the Company or any of its agents. You understand that you (and
not the Company) shall be responsible for your own tax liability that may arise as a result of this
investment or the transactions contemplated by this Agreement. You understand that Section 83 of
the Code taxes as ordinary income to you the fair market value of the shares of Common Stock as of
the date any restrictions on the shares lapse (that is, as of the date on which part or all of the
shares vest). In this context, “restriction” includes the right of the Company to reacquire the
shares pursuant to its Reacquisition Right. You understand that you may elect to be taxed on the
fair market value of the shares at the time the shares are acquired rather than when and as the
Company’s Reacquisition Right expires by filing an election under Section 83(b) of the Code with
the Internal Revenue Service within thirty (30) days after the date you acquire the shares pursuant
to your Award. YOU ACKNOWLEDGE THAT IT IS YOUR SOLE RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE
A TIMELY ELECTION UNDER CODE SECTION 83(b), EVEN IF YOU REQUEST THE COMPANY OR ITS REPRESENTATIVES
TO MAKE THE FILING ON YOUR BEHALF. You further acknowledge that you are aware that should you file
an election under Section 83(b) of the Code and then subsequently forfeit the shares, you will not
be able to report as a loss the value of any shares forfeited and will not get a refund of any of
the tax paid.

          17. Notices. Any notice or request required or permitted hereunder shall be given in
writing to each of the other parties hereto and shall be deemed effectively given on the earlier of
(i) the date of personal delivery, including delivery by express courier, or (ii) the date that is
five (5) days after deposit in the United States Post Office (whether or not actually received by
the addressee), by registered or certified mail with postage and fees prepaid, addressed at the
following addresses, or at such other address(es) as a party may designate by ten (10) days’
advance written notice to each of the other parties hereto:

	 	 	 	 	 
	 

	 	Company:
	 	Onyx Pharmaceuticals, Inc.
	 

	 	 	 	Attn: Stock Administrator
	 

	 	 	 	2100 Powell Street
	 

	 	 	 	Emeryville, CA 94608
	 
	 	 	 	 
	 

	 	Participant:
	 	Your address as on file with the Company
	 

	 	 	 	at the time notice is given

          18. Headings. The headings of the Sections in this Agreement are inserted for
convenience only and shall not be deemed to constitute a part of this Agreement or to affect the
meaning of this Agreement.

          19. Miscellaneous.

               (a) The rights and obligations of the Company under your Award shall be transferable by the
Company 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.

 

 

               (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.

               (d) This Agreement shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or national securities exchanges as may be required.

               (e) All obligations of the Company under the Plan and this Agreement shall be binding on any
successor to the Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business
and/or assets of the Company.

          20. 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.

          21. 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 benefits under any employee benefit plan (other than the 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 or all of the employee benefit plans of the
Company or any Affiliate.

          22. Choice of Law. The interpretation, performance and enforcement of this Agreement
shall be governed by the law of the state of California without regard to that state’s conflicts of
laws rules.

          23. 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.

          24. Other Documents. You hereby acknowledge receipt or the right to receive a
document providing the information required by Rule 428(b)(1) promulgated under the Securities Act.
In addition, you acknowledge receipt of the Company’s Trading Window Policy and Insider Trading
Policy and Policy Against Trading on the Basis of Inside Information.

* * * * *

 

 

          This Stock Bonus Award Agreement shall be deemed to be signed by the Company and the
Participant upon the signing by the Participant of the Stock Bonus Award Grant Notice to which it
is attached.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]