Document:

Exhibit 10.1

SEPARATION AGREEMENT

This Separation Agreement (this “Agreement”) is dated as of
March 1, 2006 (the “Effective Date”), and is entered into by and between
Allos Therapeutics, Inc., a Delaware corporation (the “Company”), and
Michael E. Hart (“Executive” and, together with the Company, the “Parties”).

RECITALS

WHEREAS, Executive has been employed by the Company as President, Chief
Executive Officer and Chief Financial Officer of the Company pursuant to an
Employment Agreement, dated as of December 17, 2001, by and between the Company
and Executive (the “Employment Agreement”); and

WHEREAS, the parties have mutually determined that Executive shall
resign from his position as the President and Chief Executive Officer of the
Company on the first day of employment of a new Chief Executive Officer of the
Company (the “Separation Date”), and, in connection with such
separation, the Parties have agreed to settle any and all related agreements
between the Parties and their affiliates in the manner set forth herein.

NOW THEREFORE, in consideration of the promises and mutual covenants
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are expressly acknowledged, the Parties agree and
promise as follows:

Section 1.               Resignation; Consulting.

(a)           Effective
on the Separation Date, Executive shall resign from his position as the
President, Chief Executive Officer and Chief Financial Officer of the Company,
provided that Executive shall resign as Chief Financial Officer as of any
earlier date at the request of a majority of the non-executive members of the
Board.

(b)           Notwithstanding
anything herein to the contrary, in the event that a majority of the
non-executive members of the Board determines prior to the Separation Date and
in good faith that Executive has not performed his services satisfactorily,
Executive shall, upon delivery to Executive of notice of such determination,
resign from all of his officer and other employee positions with the Company
and each of its affiliates, effective as of the date such notice is delivered,
or such later date as is designated in such notice (such date, the “Early
Separation Date”).

(c)           Following
the Separation Date or the Early Separation Date, as applicable, Executive
shall continue to serve on the board of directors of the Company (the “Board”);
provided that Executive shall resign as a director of the Company and
each of its affiliates immediately following a request from a majority of the
non-executive members of the Board.

(d)           Provided
that Executive remains employed through the Separation Date, commencing as of
the date that Executive ceases to serve as a member of the Board, and provided
further that such date of cessation is earlier than December 31, 2007, the
Company shall retain Executive as a consultant commencing on such date and
ending on December 31, 

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2007.  Executive acknowledges that the payments
being made to him and the benefits being provided to him under this Agreement
are partially in consideration of his agreement to provide such consulting
services.  All such consulting services
shall be rendered by Executive personally and the specific type and amount of
such consulting services shall be mutually approved in advance by Executive and
the Board and shall be made with consideration of Executive’s other personal
and professional commitments following the Separation Date.  The time commitment required for consulting
services under this Agreement will generally not exceed 20 hours per month,
although the time commitment required during any specific monthly period,
however, may vary from the time commitment required in other periods.

Section 2.               Termination
Benefits Upon Resignation.  The provisions of
this Section 2 shall apply only if Executive complies with the restrictive
covenants set forth in Section 6 hereof (the “Restricted Covenants”).

(a)           Severance Payments. 
The Company shall continue to pay Executive his base salary (as in
effect on the date of termination) for a period of eighteen (18) months
following the Separation Date or the Early Separation Date.  Such payments shall be payable in accordance
with the Company’s regular payroll practices and such payments are subject to
such deductions or withholdings as the Company is required to make pursuant to
law, or by further agreement with Executive.

(b)           Bonus.

(i)            Executive
hereby acknowledges receipt of his 2005 discretionary bonus as determined by
the compensation committee of the Board.

(ii)           Provided
that Executive remains employed through the Separation Date, Executive shall be
eligible to receive a pro rata portion of his discretionary bonus for the 2006
fiscal year, at the sole and complete discretion of the compensation committee
of the Board, based on the number of days elapsed from January 1, 2006 through
the Separation Date.  Such bonus shall be
paid at the same time as annual bonuses are paid to other senior executives of
the Company.

(c)           Accrued Obligations.  As soon as practicable following the Separation
Date or the Early Separation Date, but in no event later than the time period
required under applicable law, the Company shall pay Executive all earned but
unpaid base salary through the Separation Date or the Early Separation Date and
reimburse Executive for any reasonable unreimbursed expenses incurred in
accordance with Company policy. 
Additionally, Executive shall be entitled to a payment for all accrued
but unused vacation and sick pay that Executive has accrued through the
Separation Date or the Early Separation Date.

(d)           Supplemental Insurance.  The Executive shall receive, against
presentation of proper receipts, reimbursement on a grossed-up basis, for the
after-tax payment of the premiums that Executive is required to make in order
to maintain his term life insurance coverage and supplemental disability
coverage as in effect immediately prior to the Separation Date or the Early
Separation Date, for a period of twenty-four (24) months following the
Separation Date or the Early Separation Date.

 

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(e)           Continued Health Coverage. 
The Company shall provide Executive the appropriate notice under the
Consolidated Omnibus Budget Reconciliation Act of 1986 (“COBRA”).  Provided that Executive elects group health
insurance COBRA continuation coverage for Executive and his eligible
dependents, until the earlier to occur of (i) the date on which Executive is
eligible for comparable group health insurance coverage provided by a new
employer, or (ii) the date which is eighteen (18) months following the
Separation Date or the Early Separation Date, the Company shall pay for any
monthly COBRA costs payable by Executive.

(f)            Options.

(i)            Vesting.  Provided that Executive remains employed
through the Separation Date, notwithstanding the terms of the Executive’s
option agreements or the terms of the relevant Company incentive plan,
Executive shall continue to vest in his options granted prior to the Effective
Date for a period of one (1) year following the Separation Date.

(ii)           Exercise
Period.

Provided that Executive
remains employed through the Separation Date, all vested options held by
Executive on the Separation Date and those options that become vested by
operation of Section 2((f)(i) hereof shall remain exercisable until the later
of (i) ninety (90) days following Executive’s resignation from the Board or
(ii) ninety (90) days following the last day of Executive’s consulting service.

(iii)          New
Option Grant.  On the Effective Date,
the Company shall grant Executive an option to purchase 50,000 shares of the
common stock, par value $0.001 per share, of the Company (the “Common Stock”)
at an exercise price equal to the fair market value of the Common Stock on the
date of grant.

(A)          Provided
that Executive remains employed through the Separation Date, one hundred
percent (100%) of the options granted pursuant to subsection 2(f)(iii) herein
shall vest on the Separation Date, or earlier at the discretion of the Board,
and shall remain exercisable until the later of (i) ninety (90) days following
Executive’s resignation from the Board or (ii) ninety days following the last
day of Executive’s consulting service. 
If Executive’s employment as President and Chief Executive Officer is
terminated for any reason prior to the Separation Date, the option granted
pursuant to subsection 2(f)(iii) herein shall be immediately forfeited upon
such termination.

(B)           The option granted to Executive
pursuant to subsection 2(f)(iii) herein shall otherwise be subject to the terms
and conditions of the Company’s 2002 Broad Based Equity Compensation Plan (the “2002
Plan”).

 

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Section 3.               Other
Termination of Employment.  Except as
provided in Section 4 hereof and provided that Executive complies with the
Restrictive Covenants, in the event that Executive’s employment as President
and Chief Executive Officer is terminated for any reason other than by
resignation on the Separation Date or the Early Separation Date, Sections 1(d)
and 2 hereof shall not apply and Executive (or his estate in the event of his
death) shall be entitled only to the following:

(i)            continuation
of Executive’s base salary, then in effect, for a period of twelve (12) months
following the date of such termination;

(ii)           payment
of any accrued but unused vacation and sick leave;

(iii)          except
in the case of Executive’s death, reimbursement, on a grossed-up basis, for the
after-tax payment of the premiums of Executive’s supplemental disability plan
and supplemental life insurance plan for a period of twenty-four (24) months;

(iv)          payment
of premiums of Executive’s group health insurance COBRA continuation coverage,
including coverage for Executive’s eligible dependents, for a maximum period of
twelve (12) months following such termination; provided, however,
that the Company shall pay premiums for Executive’s eligible dependents only
for coverage for which those eligible dependents were enrolled immediately
prior to such termination and the Company’s obligation to pay such premiums
shall cease immediately upon Executive’s eligibility for comparable group
health insurance provided by a new employer; and

(v)           Executive’s
options granted prior to the Effective Date shall remain exercisable following
Executive’s termination in accordance with the applicable Company incentive
plan pursuant to which such options were granted.

Following any such
termination of Executive’s employment, except as set forth in this Section 3,
Executive shall have no further rights to any compensation or any other benefits
under this Agreement.

Section 4.               Change in Control.  Notwithstanding anything herein to the
contrary and provided Executive complies with the Restrictive Covenants, in the
event that Executive suffers a “Change in Control Termination” (as defined in the
Employment Agreement) prior to the Separation Date, then in lieu of any other
post-termination payments or benefits described herein, including without
limitation those described Sections 2 and 3 hereof, Executive shall instead be
entitled to the payments and benefits described in Section 11(e), “Change in
Control Severance Benefits,” of the Employment Agreement, and Section 1(d)
hereof shall not apply.  To the extent
necessary to comply with Section 409A of the Internal Revenue Code, the parties
hereto agree to delay the payment of the “Change in Control Severance Benefits”
provided in Section 11(e) of the Employment Agreement for six months.  Once such six month period has expired, the
Company shall promptly make all such payments which were delayed during such
period.

Section 5.               Termination Date.  The date upon which Executive’s employment as
President and Chief Executive Officer is terminated, whether is described in
Sections 2, 3 or 4 hereof, is hereinafter referred to as the “Termination
Date”.

 

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Section 6.               Restrictive Covenants.  Executive acknowledges that the restrictive
covenants set forth in the Proprietary Information, Inventions,
Non-Competition, and Non-Solicitation Agreement, attached to the Employment
Agreement as Exhibit A, and Sections 12 and 13 of the Employment Agreement
shall remain in full force and effect following the Termination Date and
Executive further agrees to comply with the terms of such restrictive
covenants.

Section 7.               Release.  Notwithstanding anything herein to the
contrary, Executive shall not be entitled to any benefits pursuant to this
Agreement prior to the time in which he executes a full general release of
claims against the Company and its affiliates substantially in the form
attached to the Employment Agreement as Exhibit B.

Section 8.               Non-Disparagement.  Executive agrees that, except as required by
applicable law, or compelled by process of law, at any time following the date
hereof, neither Executive, nor anyone acting on his behalf, shall hereafter
make any derogatory, disparaging or critical statement about the Company, the
Company’s subsidiaries or affiliates, or any of the Company’s current officers,
directors, employees, or shareholders or any persons who were officers,
directors, employees, or shareholders of the Company.  The Company agrees that, except as required
by applicable law, or compelled by process of law, neither it, nor anyone
acting on its behalf, shall hereafter make any derogatory, disparaging or critical
statement about the Executive.

Section 9.               Cooperation by Executive.

(a)           Following
the Termination Date, Executive will reasonably cooperate in all reasonable
respects with the Company and its affiliates in connection with any and all
existing or future litigation, actions or proceedings (whether civil, criminal,
administrative, regulatory, or otherwise) brought by or against the Company or
any of its affiliates, to the extent the Company reasonably deems Executive’s
cooperation necessary.  Executive shall
be reimbursed for all reasonable out-of-pocket expenses incurred by his as a
result of such cooperation.

(b)           For
the period commencing on the Effective Date and ending on the Termination Date,
Executive shall devote his full business time, attention, skill and best
efforts to the performance of his duties as the Company’s President, Chief
Executive Officer and (if applicable) Chief Financial Officer.

Section 10.             Indemnification.  The Company acknowledges that (a) its by-laws
(or those of one or more of its affiliates) contain provisions indemnifying
directors and officers to the fullest extent permitted by applicable law and
(b) Executive is covered by such provisions (as such provisions are in effect
on the Termination Date) to the extent permitted by applicable law even after
the Termination Date with respect to such matters occurring during the course
of Executive’s employment before the Termination Date, subject to the terms of
such by-law provisions (as such provisions are in effect on the Termination
Date).

Section 11.             Confidentiality of Agreement.  Executive hereby agrees to keep the terms of
this Agreement confidential; provided, that the obligations of Executive under
this Section 11 shall not apply to disclosures required by applicable law, regulation
or order of a court or governmental agency, to either Executive’s counsel, or
to Executive’s immediate family.

 

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Section 12.             Opportunity for Advice.  By signing this Agreement, Executive
acknowledges that with the advice of the Company, he has had a reasonable
opportunity to consider advice from his legal counsel.  Fully understanding these terms, Executive is
entering into this Agreement knowingly and voluntarily.  The Company hereby agrees to pay the
reasonable fees and expenses of the Executive’s legal counsel incurred in
connection with the negotiation and review of this Agreement, up to a maximum
of $10,000.

Section 13.             Entire Agreement.  This Agreement represents the entire
agreement of the parties with respect to Executive’s engagement and termination
thereof, and supersedes all prior negotiations, discussions, correspondence,
communications, understandings and agreements between the parties relating to
the subject matter of this Agreement.

Section 14.             Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE.

Section 15.             Severability.  In the event that any provision or portion of
this Agreement shall be determined to be invalid or unenforceable for any
reason, in whole or in part, the remaining provisions of this Agreement shall
be unaffected thereby and shall remain in full force and effect to the fullest
extent permitted by law.

Section 16.             Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which
together shall be considered one and the same agreement.

*              *              *

[Remainder of page intentionally left blank.]

 

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IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date and year first above
written.

	
   

  	
  /s/ Michael E. Hart

  
	
   

  	
  Michael E. Hart

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ALLOS
  THERAPEUTICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Stephen J. Hoffman

  
	
   

  	
  Name:

  	
  Stephen J. Hoffman

  
	
   

  	
  Title:

  	
  Chairman

  

 

 

7Exhibit 10.2

 

ALLOS
THERAPEUTICS, INC.

2000 STOCK
INCENTIVE COMPENSATION PLAN

NONQUALIFIED STOCK OPTION LETTER AGREEMENT

TO:         Michael E. Hart

We are pleased to inform you that you have been
selected by Allos Therapeutics, Inc. (the “Company”) to receive a stock option
(the “Option”) to purchase shares (the “Option Shares”) of the Company’s Common
Stock under the Company’s 2000 Non-Qualified Stock Option Plan (the “Plan”).

The terms of the Option are as set forth in (i) this
Agreement, (ii) the Plan, a copy of which has been provided to you, and (iii)
that certain Separation Agreement by and between the Company and you, dated
March 3, 2006 (the “Separation Agreement”). 
The Plan and the Separation Agreement are incorporated by reference into
this Agreement, which means that this Agreement is limited by and subject to
the express terms and provisions of the Plan and the Separation Agreement.  Capitalized terms that are not defined in
this Agreement have the meanings given to them in the Plan.

The most important terms of the Option are summarized
as follows:

 

	
  Grant
  Date:

  	
  March 3, 2006

  
	
  Grant ID:

  	
  «GrantID»

  
	
  Number of Shares:

  	
  50,000

  
	
  Exercise Price:

  	
  $3.55 per share

  
	
  Expiration Date:

  	
  March 3, 2016

  
	
  Vesting Base Date:

  	
  Not Applicable

  
	
  Type of Option:

  	
  Nonqualified Stock Option

  

Vesting and Exercisability:  Pursuant
to the terms of the Separation Agreement, provided you (i) comply with the
restrictive covenants set forth in Section 6 of the Separation Agreement (the “Restrictive Covenants”) and (ii) remain employed by the
Company through the Separation Date (as defined in the Separation Agreement),
one hundred percent (100%) of the Option will vest and become exercisable on
the Separation Date, or earlier at the discretion of the Board.

Termination of Option:  Pursuant to the terms of the Separation Agreement, the
unvested portion of the Option will terminate automatically and without further
notice immediately upon termination (voluntary or involuntary) of your
employment or service relationship with the Company prior to the Separation
Date.  Following the Separation Date, the
vested portion of the Option will terminate automatically and without further
notice on the earlier of the following dates:

 

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(a)           ninety
(90) days after the later of (i) your resignation from the Company’s
Board of Directors, or (ii) the termination of your consulting relationship
with the Company, if any, as contemplated by Section 1(d) of the Separation
Agreement;

(b)           immediately
upon your material breach of any of the provisions of the Separation Agreement,
including the Restrictive Covenants; and

(c)           the
Expiration Date.

If you die while the Option is exercisable, the Option
may be exercised until one year after the date of death or the Expiration Date,
whichever is earlier.

It is your responsibility to be aware of the date
your Option terminates.

Method of Exercise:  You may
exercise the Option by giving written notice to the Company, in form and
substance satisfactory to the Company, which will state the election to
exercise the Option and the number of shares of Common Stock for which you are
exercising the Option.  The written
notice must be accompanied by full payment of the exercise price for the number
of shares of Common Stock you are purchasing.

Form of Payment: 
You may
pay the Option exercise price, in whole or in part, in cash, by check or,
unless the Plan Administrator determines otherwise, by (a) tendering (either
actually or by attestation) mature shares of Common Stock (generally shares you
have held for a period of at least six months) having a fair market value on
the day prior to the date of exercise equal to the exercise price (you should
consult your tax advisor before exercising the Option with stock you received
upon the exercise of an incentive stock option); (b) if and so long as the
Common Stock is registered under the Securities Exchange Act of 1934, as
amended, delivery of a properly executed exercise notice together with
irrevocable instructions to a broker to deliver promptly to the Company the
amount of sale or loan proceeds necessary to pay the exercise price, all in
accordance with the regulations of the Federal Reserve Board; or (c) such
other consideration as the Plan Administrator may permit.

Withholding Taxes: 
As a condition
to the exercise of the Option, you must make such arrangements as the Company
may require for the satisfaction of any federal, state or local withholding tax
obligations that may arise in connection with such exercise.  The Company has the right to retain without
notice sufficient shares of stock to satisfy the withholding obligation.  Unless the Plan Administrator determines
otherwise, you may satisfy the withholding obligation by electing to have the
Company withhold from the shares to be issued upon exercise that number of
shares having a fair market value equal to the amount required to be withheld
(up to the minimum required federal tax withholding rate).  The Company may also deduct from the shares
to be issued upon exercise any other amounts due from you to the Company.

Limited Transferability: 
During your lifetime only you can exercise the Option.  The Option is not transferable except by will
or by the applicable laws of descent and 

 

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distribution, unless the Plan Administrator permits
otherwise.  The Plan provides for
exercise of the Option by a designated beneficiary or the personal
representative of your estate.

Registration:  At the present
time, the Company has an effective
registration statement with respect to the Option Shares.  The Company intends to maintain this
registration but has no obligation to do so. 
In the event that such registration ceases to be effective, you will not
be able to exercise the Option unless exemptions from registration under
federal and state securities laws are available; such exemptions from
registration are very limited and might be unavailable.  By accepting the Option, you
hereby acknowledge that you have read and understand Section 14.3 of the
Plan.

Binding Effect:  This Agreement
will inure to the benefit of the successors and assigns of the Company and be
binding upon you and your heirs, executors, administrators, successors and
assigns.

Limitation on Rights; No Right to Future Grants;
Extraordinary Item of Compensation:  By entering
into this Agreement and accepting the grant of the Option evidenced hereby, you
acknowledge: (a) that the Plan is discretionary in nature and may be
suspended or terminated by the Company at any time; (b) that the grant of
the Option is a one-time benefit which does not create any contractual or other
right to receive future grants of options, or benefits in lieu of options;
(c) that all determinations with respect to any such future grants,
including, but not limited to, the times when options will be granted, the
number of shares subject to each option, the option price, and the time or
times when each option will be exercisable, will be at the sole discretion of
the Company; (d) that your participation in the Plan is voluntary;
(e) that the value of the Option is an extraordinary item of compensation
which is outside the scope of your employment contract, if any; (f) that
the Option is not part of normal or expected compensation for purposes of
calculating any severance, resignation, redundancy, end of service payments,
bonuses, long-service awards, pension or retirement benefits or similar
payments; (g) that the vesting of the Option ceases upon termination of
employment or service relationship with the Company for any reason except as
may otherwise be explicitly provided in the Plan or this Agreement or otherwise
permitted by the Plan Administrator; (h) that the future value of the
underlying Option Shares is unknown and cannot be predicted with certainty; and
(i) that if the underlying Option Shares do not increase in value, the
Option will have no value.

 

3

 

Please execute the following Acceptance and
Acknowledgment and return it to the Stock Plan Administrator.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
  ALLOS THERAPEUTICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marc H. Graboyes

  
	
   

  	
   

  	
  Marc H. Graboyes

  
	
   

  	
   

  	
  Vice President, General Counsel

  
				

 

 

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ACCEPTANCE AND ACKNOWLEDGMENT

I, a resident of the State of Colorado, accept the
Option described in this Agreement, the Plan and the Separation Agreement, and
acknowledge receipt of a copy of this Agreement and a copy of the Plan.  I have read and understand the Plan.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Taxpayer I.D. Number

  	
   

  	
  Address

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

5

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