Document:

Exhibit 10.11

 

Sunesis Pharmaceuticals Bonus Program

 

Proposed to the Compensation Committee February 1, 2002

Amended January 6, 2005

 

 

Sunesis Pharmaceuticals has designed a Bonus
Program to provide an incentive to employees to achieve individual, group and
corporate objectives.  The program is
also intended to maintain the Company’s competitive position with respect to
compensation, and to enhance our ability to attract and retain superior
talent.  Under the proposed plan, all
regular Sunesis employees in good standing are eligible to receive a
bonus.  Bonuses for employees hired
during the plan year are prorated according to time of service.

 

Program
Objectives

 

The Bonus Program is structured to be
competitive in the Northern California Biotechnology Industry Marketplace, with
its bonus targets “at market” – i.e. close to the average of a group of
appropriate comparators especially in the lower tiers of our salary
structure.  

 

The Bonus Program is intended to reinforce
the following values:

 

•       Achievement of Company Objectives

 

•       Achievement of Department/Group/Team
objectives

 

•       Recognition of individual contributions
and effort

 

2004 Bonus
Pool

 

Six tiers of positions are proposed, with
bonus targets ranging from 6% to 25% of base pay.  The bonus target for executive officers is
25% of base pay.  These bonus targets
were applied to all staff and prorated for new hires, and accrued throughout
the year, assuming an 85% of target payout. 
The accrual amounts to 10.51% of payroll, or $1,163,101.

 

Administration
of the Process

 

•                  A bonus pool is incorporated into the Company’s
base budget and is accrued throughout the year.

 

•                  Employees are eligible for bonus amounts as a
percentage of base pay (the “target amount”), depending on the position they
hold.  The bonus pool is calculated by
adding the target amounts for all eligible employees.

 

•                  At year-end, the Company’s Management and
Compensation Committee determine the degree to which the Company has met its
overall objectives for the year and the pool is adjusted accordingly.  For example, if the Company has not
accomplished all of its objectives, the pool available for bonus payout may be
adjusted downward by the Compensation Committee.  In the event the Company has exceeded its
objectives, the Compensation Committee may elect to increase the size of the
pool.

 

•                  Once the size of the bonus pool has been
determined, target bonuses of employees are adjusted accordingly.  For example, if an employee’s target bonus is
10% of annualized salary, and the Compensation Committee has determined that
the bonus pool should be 80% of the base amount, the employee’s target bonus is
adjusted to 80% of 10% (8%).

 

•                  Bonus awards to individual employees will be
adjusted upward or downward based on the accomplishment of group and individual
objectives, and upon individual effort and teamwork.  Individual bonuses are intended to reflect
the employee’s performance.  All such
adjustments will be made within the context of not exceeding the size of the
overall bonus pool.

 

•                  For non-executive employees, the bonus amount
is determined by the Executive Committee with input from Department Heads and
Supervisors.  For Executive Committee
members, the 

 

 

bonus amount is determined
by the Compensation Committee of the Board of Directors with input from the
Chief Executive Officer.

 

•                  Regular communication is provided throughout
the year to update employees on progress toward accomplishment of Company and
Group goals.Exhibit 10.12

 

SUNESIS PHARMACEUTICALS INC.

 

CONSULTING
AGREEMENT

 

This Consulting Agreement (“Agreement”)
is entered into and effective as of August 8, 2005 (the “Effective Date”),
between Sunesis Pharmaceuticals Inc., a Delaware Corporation (“Sunesis”) and
James A. Wells, Ph.D. (“Consultant”).

 

The parties agree as
follows:

 

1.                             Services.  Consultant agrees to (i) act as a member
of Sunesis’ Scientific Advisory Board (“SAB”), including attending and
participating in each SAB Meeting and acting as its chairman (hereinafter “SAB
Responsibilities”); and (ii) provide consulting services as is
mutually agreed by the parties and further described in the attached Exhibit A
(hereinafter “Consulting Responsibilities”) (collectively, the “Services”).

 

2.                             Compensation.  As consideration for Consultant’s performance
of Services, Sunesis shall pay Consultant as set forth below.

 

a)              For
SAB Responsibilities: Consultant shall receive $1,500 per day for
participation at each SAB Meeting.

 

b)             For
Consulting Responsibilities: 
Consultant shall be paid $5000 for two (2) days of consulting per
month (approx. 1⁄2 day per week per month). 
Additional consulting days will be paid at a rate of $3,000 per
day.  Sunesis will make payments for
services performed under this paragraph 2b on a monthly basis based on receipt
of Consultant’s invoice.

 

In
addition to the above, any granted Sunesis Incentive Stock Options (ISOs) held
by Consultant will be converted to Non-Qualified Stock Options (NQSOs), and all
unvested stock options will continue to vest during the next twelve (12) months
commencing on the 1st day of each month after the Effective
Date.  At the end of such 12 month period
vesting will end.

 

3.                             Expenses.  Sunesis shall reimburse Consultant for
reasonable travel and related expenses incurred in the course of performing the
Services hereunder.  Sunesis shall make
payments for such expenses within thirty (30) days after receipt of Consultant’s
invoice therefor.

 

4.                             Confidentiality.  Consultant shall maintain in confidence and
not publish or otherwise disclose to third parties or use for any purpose other
than providing the Services hereunder any Confidential Information of Sunesis,
unless otherwise approved in writing by Sunesis.  As used in this Agreement “Confidential
Information” shall mean any information or other subject matter disclosed to
Consultant by Sunesis in connection with Consultant’s performance of the
Services.  Notwithstanding the foregoing,
Confidential Information shall not include

 

	
  #1483 SAB/BOD and Consulting Agreement

  	
  ver.18-Jul-2005

  
	
  James A. Wells, Ph.D.

  	
   

  
	
  SV\471941.1

  	
   

  

 

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information
that: (i) was publicly known and generally available in the public domain
prior to the time of disclosure to Consultant, (ii) becomes publicly known
and generally available after disclosure to Consultant through no action or
inaction of Consultant; or (iii) is in the possession of Consultant,
without confidentiality restrictions, prior to the time of disclosure to
Consultant as shown by Consultant’s files and records immediately prior to the
time of disclosure.

 

5.                             Ownership of
Materials.  All Confidential information, including
without limitation, tangible materials received from Sunesis shall remain the
property of Sunesis, and Consultant shall deliver all such Confidential
Information to Sunesis upon expiration or termination of this Agreement, or
earlier if so requested by Sunesis.

 

6.                             Assignment of
Discoveries.  Consultant will promptly disclose and assign
to Sunesis Consultant’s entire right, title and interest in all
Discoveries.  “Discoveries” as used in
this Agreement shall mean all technical or business innovations, whether or not
patentable or copyrightable, which are made by Consultant in the course of
performing the Services, and/or at the request of Sunesis, or are based upon or
incorporate any Confidential Information of Sunesis.

 

7.                             Duty to Assist.  As requested by Sunesis, Consultant shall
take all steps reasonably necessary to assist Sunesis in obtaining and
enforcing in its own name any patent, copyright or other protection, which
Sunesis elects to obtain or enforce for the Discoveries.  Consultant’s obligation to assist Sunesis in
obtaining and enforcing patents, copyrights and other protections shall
continue beyond the termination of Consultant’s relationship with Sunesis, but
Sunesis shall compensate Consultant at a reasonable rate after the termination
of such relationship for time actually spent at Sunesis’ request providing such
assistance.

 

8.                             No Conflict.  Consultant represents that Consultant’s
compliance with the terms of this Agreement and provision of Services hereunder
will not violate any duty which Consultant may have to any other person or
entity (such as a present or former employer), including obligations concerning
providing services to others, confidentiality of proprietary information and
assignment of inventions, ideas, patents or copyrights, and Consultant agrees
that Consultant will not do anything in the performance of Services hereunder
that would violate any such duty.  In
addition, Consultant agrees that, during the term of this Agreement, prior to
performing any services for or otherwise participating in a company developing,
discovering or commercializing technology or products that are competitive with
Sunesis, Consultant shall first notify Sunesis in writing.  It is understood that in such event, Sunesis
will review whether Consultant’s activities are consistent with remaining a
member of Sunesis’ SAB.

 

9.                             Legal Relationship.   Consultant shall not be an employee of
Sunesis or any of its affiliates, or entitled to participate in any employee
benefit plan of Sunesis or receive any benefit available to employees of
Sunesis, including insurance, worker’s compensation, retirement and vacation
benefits.  Consultant shall not have any
authority to, and shall not, make any representation or promise or enter into
any agreement on behalf of Sunesis.

 

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10.                       Term and Termination.  The initial term of this Agreement shall be
for a period of one (1) year from the Effective Date.  Thereafter and subject to Sunesis’
re-evaluation of the terms and conditions, this Agreement shall automatically
renew for subsequent one (1) year periods unless otherwise terminated by
either party upon prior written notice. 
Either party upon thirty (30) days prior notice may terminate this
Agreement.  The provisions of Sections 4,
5, 6, 7, and 11 shall survive expiration or termination of this Agreement for
any reason.

 

11.                       Miscellaneous.  This Agreement shall be governed by the laws
of the State of California, without reference to its conflicts of laws
provisions.  This Agreement and the
agreements referred to herein, including the Indemnification Agreement dated January 12,
2005 between the parties, is the only and entire agreements between the parties
and supersede all prior agreement and representations.  This Agreement may be amended or modified
only by a writing signed by both parties. If any provision of this Agreement
shall be found by a court to be void, invalid or unenforceable, the same shall
be reformed to comply with applicable law or stricken if not so conformable, so
as not to affect the validity or enforceability of the remainder of this
Agreement.  This Agreement may be
executed in counterparts, each of which shall be deemed as original, but both
of which together shall constitute one and the same instrument.

 

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

 

	
  Sunesis Pharmaceuticals, Inc.

  	
  Consultant

  	
   

  
	
  341
  Oyster Point Boulevard

  	
  1341
  Columbus Avenue

  	
   

  
	
  South San
  Francisco, California 94080

  	
  Burlingame,
  California 94010

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Daniel N.
  Swisher, Jr.

  	
   

  	
  By:

  	
  /s/ James A.
  Wells, Ph.D.

  	
   

  
	
   

  	
      Daniel N. Swisher, Jr. 

  	
   

  	
   

  	
      James
  A. Wells, Ph.D.

  	
   

  
	
   

  	
      Chief Executive Officer

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date Signed:

  	
  8/5/05

  	
   

  	
  Date Signed:

  	
  8/5/05

  	
   

  
									

 

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EXHIBIT A

 

CONSULTING SERVICES

 

Consulting
services to be provided by Consultant to Sunesis shall include, but not limited
to:

 

•                                          Review and
support of research collaborations, in particular BIIB kinase collaborations.

 

•                                          Advise on
portfolio management and specific program activities, and selection and
prioritization of new targets for internal discovery efforts.

 

•                                          Assist with
outreach efforts among scientific and oncology communities.

 

•                                          Participate
in the review and discussion of strategic and corporate matters with Sunesis’
CEO.

 

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