Document:

exv10w1

 

Exhibit 10.1

ONYX PHARMACEUTICALS, INC.

EXECUTIVE EMPLOYMENT AGREEMENT

for

N. ANTHONY COLES

     This Executive Employment Agreement (“Agreement”) is entered into as of February 22,
2008 (the “Effective Date”), by and between N. Anthony Coles (“Executive”) and Onyx
Pharmaceuticals, Inc., a Delaware corporation (the “Company”).

     Whereas, the Company desires to employ Executive to provide personal services to the
Company, and wishes to provide Executive with certain compensation and benefits in return for his
services; and

     Whereas, Executive wishes to be employed by the Company and provide personal services
to the Company in return for certain compensation and benefits.

     Now, Therefore, in consideration of the mutual promises and covenants contained
herein, it is hereby agreed by and between the parties hereto as follows:

     1. Employment by the Company.

          1.1 Position. Subject to terms set forth herein, the Company agrees to employ Executive in
the positions of President and Chief Executive Officer (“CEO”) and Executive hereby accepts such
employment with a start date of March 31, 2008 or such other mutually agreeable date that may be
determined (the “Start Date”). During the term of his employment with the Company, Executive will
devote his best efforts and substantially all of his business time and attention to the business of
the Company, except as permitted pursuant to Section 4.1 and for vacation periods and reasonable
periods of illness or other incapacities permitted by the Company’s general employment policies.

          1.2 Duties and Location. Executive shall serve in an executive capacity and shall perform
such duties as are customarily associated with the position of CEO and as also may be assigned to
Executive from time to time (provided that such duties are consistent with Executive’s position as
CEO), consistent with the Bylaws of the Company and as required by the Company’s Board of Directors
(the “Board”). Executive will report to the Board. Executive’s primary office location shall be
the Company’s headquarters, which is currently in Emeryville, California. Notwithstanding the
foregoing, the Company reserves the right to reasonably require Executive to perform his duties at
places other than its corporate headquarters from time to time, and to require reasonable business
travel.

          1.3 Policies and Procedures. The employment relationship between the parties shall also be
governed by the general employment policies and practices of the Company, as they may be modified
by the Company within its sole discretion from time to time, including but not limited to those
relating to protection of confidential information

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and assignment of inventions, except that when the terms of this Agreement differ from or are
in conflict with the Company’s general employment policies or practices, this Agreement shall
control.

          1.4 Board of Directors. The Company will use its best efforts to ensure that Executive is
appointed to the Board and Executive agrees to serve as a director of the Company. Executive
agrees that in the event Executive’s employment with the Company is terminated for any reason,
either voluntarily or involuntarily, with or without Cause, Executive shall resign Executive’s
position as a member of the Board simultaneously with the termination of Executive’s employment or
on such other date as requested by the majority of the Board.

     2. Compensation.

          2.1 Salary. Executive shall receive for services to be rendered hereunder an annualized base
salary at the rate of $625,000, payable on the Company’s normal payroll schedule and subject to
payroll withholding and deductions (“Base Salary”). The Base Salary shall be reviewed annually and
may be adjusted as approved by the Board in its discretion; provided, however, that the Base Salary
may only be decreased upon Executive’s written consent.

          2.2 Hiring Bonus. Executive will receive a hiring bonus of $200,000, subject to payroll
deductions and withholdings, and paid within the Company’s first regular payroll period following
the Start Date (the “Hire Bonus”). If Executive’s employment terminates within twelve (12) months
after the Start Date, due to either a termination for Cause (as defined in Section 5.3(b)) by the
Company or a voluntary termination by Executive for any reason, Executive will be required to repay
a prorated portion of the Hire Bonus to the Company no later than thirty (30) days after the
employment termination date. The repayment amount will be calculated by reducing the total gross
amount of the Hire Bonus by 1/12th for each complete month of employment by Executive.

          2.3 Annual Bonus. Executive will be eligible to earn an annual target bonus of one hundred
percent (100%) of the Base Salary in effect during the bonus year (the “Annual Bonus”). Executive
is eligible to receive the full Annual Bonus for the 2008 bonus year, and any Annual Bonus earned
by Executive for 2008 will not be prorated to reflect his mid-year Start Date. Whether the Annual
Bonus is earned, and the amount of the Annual Bonus (if any), will be determined under the terms of
the Company’s Annual Incentive Bonus Program (as adopted by the Compensation Committee of the Board
from time to time), and due to Executive’s position as CEO his performance shall be measured one
hundred percent (100%) by the Company’s achievement of its corporate performance targets, as
determined by the Board on the recommendation of the Board’s Compensation Committee. The Board
will determine, in its sole discretion, the applicable corporate performance targets for each bonus
year, which may include corporate financial goals, strategic goals, and clinical development goals.
In order to be eligible to earn the Annual Bonus, Executive must remain an active employee of the
Company through the end of the applicable work year, and Executive will not earn any Annual Bonus
if his employment

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terminates for any reason before the end of the applicable work year. The Company shall have
the discretion to structure some or all of the Annual Bonus so that it qualifies as
“performance-based compensation” within the meaning of Section 162(m) of the Internal Revenue Code
of 1986, as amended (the “Code”). Executive’s Annual Bonus target will be reviewed annually and
may be adjusted by the Board in its discretion; provided, however, that the Annual Bonus target may
only be decreased upon Executive’s written consent.

          2.4 Standard Company Benefits. Executive shall be entitled to all rights and benefits for
which he is eligible under the terms and conditions of the standard Company benefits and
compensation practices which may be in effect from time to time and provided by the Company to its
employees generally.

          2.5 Equity Awards. Subject to the approval of the Board, Executive shall receive the
following equity awards (the “Equity Awards”), which shall be granted as of the Start Date:

               (a) Option Grant. Executive shall be granted an option to purchase 350,000 shares of Company
Common Stock (the “Option”), at fair market value as of the Start Date as determined by the Board,
pursuant to the Company’s 2005 Equity Incentive Plan (the “Plan”). Except as otherwise provided
herein, subject to Executive’s continuous service to the Company (as defined in the Plan), the
Option will vest and become exercisable over four (4) years, with twenty-five percent (25%) of the
shares covered by the Option vesting and becoming exercisable on the first year anniversary of the
Start Date and the remaining seventy-five percent (75%) of the shares covered by the Option vesting
and becoming exercisable in thirty-six (36) equal monthly installments thereafter. The Option
shall be governed by the terms and conditions set forth in the Plan, and in the applicable stock
option agreement and grant document.

               (b) Time-Vested Restricted Stock Grant. Executive shall be granted a restricted stock award
covering 50,000 shares of Company Common Stock (the “Time-Vested Restricted Stock Grant”), pursuant
to the Plan. Except as otherwise provided herein, subject to Executive’s continuous service to the
Company (as defined in the Plan), the Time-Vested Restricted Stock Grant will vest in a series of
three (3) successive equal annual installments over the three (3)-year period measured from the
Start Date. The Time-Vested Restricted Stock Grant shall be governed by the terms and conditions
set forth in the Plan, and in the applicable Stock Bonus Award Agreement.

               (c) Performance-Vested Restricted Stock Grant. Executive shall be granted a restricted stock
award covering 10,000 shares of Company Common Stock (the “Performance-Vested Restricted Stock
Grant”), pursuant to the Plan. Except as otherwise provided herein, subject to Executive’s
continuous service to the Company (as defined in the Plan), the Performance-Vested Restricted Stock
Grant will vest over a two (2)-year period measured from the Start Date subject to achievement of
performance milestones based on Executive’s performance to be determined by the Board upon
recommendation of the Board’s Compensation Committee. For the 2008 bonus year, the applicable
vesting schedule shall be as follows: (i) 7,500 shares shall vest if at least 150%

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of all applicable 2008 performance milestones are achieved; (ii) 5,000 shares shall vest if at
least 100%, but less than 150%, of all applicable 2008 performance milestones are achieved; (iii)
2,500 shares shall vest if at least 50%, but less than 100%, of all applicable 2008 performance
milestones are achieved; and (iv) no shares shall vest for the 2008 bonus year if less than 50% of
all applicable 2008 performance milestones are achieved. For the 2009 bonus year, the applicable
vesting schedule shall be as follows: (i) 7,500 shares (or all remaining unvested shares, if less)
shall vest if at least 150% of all applicable 2009 performance milestones are achieved; (ii) 5,000
shares (or all remaining unvested shares, if less) shall vest if at least 100%, but less than 150%,
of all applicable 2009 performance milestones are achieved; (iii) 2,500 shares shall vest if at
least 50%, but less than 100%, of all applicable 2009 performance milestones are achieved; and (iv)
no shares shall vest if less than 50% of all applicable 2009 performance milestones are achieved.
The Performance-Vested Restricted Stock Grant shall be governed by the terms and conditions set
forth in the Plan, and in the applicable stock bonus award agreement and grant document. The
Company shall have the discretion to structure some or all of the Performance-Vested Restricted
Stock Grant so that it qualifies as “performance-based compensation” within the meaning of Section
162(m) of the Code.

               (d) Annual Discretionary Grants. At least once each year, after Executive’s first year of
employment, the Board (upon the recommendation of the Compensation Committee of the Board) will
consider whether to grant additional equity awards to Executive, which determination shall be in
the Board’s sole discretion.

          2.6 Relocation Benefits. Effective as of the Start Date, Executive is required to relocate
to, and maintain a residence in, the San Francisco Bay Area. To assist in Executive’s relocation
from New Jersey to the San Francisco Bay Area, Executive shall be entitled to receive the
relocation benefits described in this Section 2.6, provided that he remains an employee in good
standing of the Company as of the date that the particular cost or expense is incurred (the
"Relocation Benefits”). The Relocation Benefits shall be the sole relocation assistance or
benefits that Executive will receive from the Company. After all of Executive’s relocation expenses
have been incurred, the Compensation Committee of the Board will review a final documented
accounting of relocation expenses prepared by Executive, and consider, after discussion with
Executive, whether any additional reimbursement is appropriate. If Executive’s employment
terminates within twelve (12) months after the Start Date, due to either a termination for Cause by
the Company or a voluntary termination by Executive for any reason, Executive will be required to
repay a prorated portion of the Relocation Benefits received by him from the Company at any time,
with such repayment to be made to the Company no later than thirty (30) days after the employment
termination date. The repayment amount will be calculated by reducing the total gross amount of
the Relocation Benefits received by him by 1/12th for each complete month of employment
by Executive. The Relocation Benefits consist of the following:

               (a) House Hunting Trips. The Company will reimburse Executive’s reasonable and customary
out-of-pocket expenses for him, his spouse and his children to travel to and from the San Francisco
Bay Area for two (2) house hunting trips. The reimbursable expenses consist of hotel costs, meals,
airfare (coach class), rental car,

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and related minor expenditures. These expenses must be properly documented and otherwise
comply with the Company’s standard expense reimbursement policy and practice.

               (b) Moving and Temporary Storage Costs. The Company will pay or reimburse the reasonable
costs of standard ground shipment of Executive’s personal belongings and household goods, and
standard ground shipment of up to three (3) automobiles. In addition, the Company will pay
reasonable storage fees for storage of Executive’s household goods for up to thirty-six (36)
months. To the extent that such costs are reimbursed to Executive, these expenses must be properly
documented and otherwise comply with the Company’s standard expense reimbursement policy and
practice.

               (c) Sale and Purchase of Real Estate. If, within three (3) years of the Start Date, Executive
sells his current primary residence located in New Jersey, then the Company will reimburse
Executive’s customary and fully documented non-recurring closing costs incurred by him in
connection with such sale (the “New Jersey Closing Costs”), including real estate commissions (up
to a maximum of six percent (6%) of the sale price), legal and recording fees, title charges,
transfer taxes, and documentary stamps. In addition, if, within three (3) years of the Start Date,
Executive purchases a primary residence in the San Francisco Bay Area, the Company will reimburse
Executive’s customary and fully documented non-recurring closing costs incurred by him in
connection with such purchase (the “California Closing Costs”) up to a maximum total reimbursement
amount (in the aggregate) equal to three percent (3%) of the purchase price. For purposes of
determining the amounts of the New Jersey Closing Costs and California Closing Costs, any payment
of origination points or other premiums on mortgages obtained or maintained by Executive shall be
deemed non-reimbursable costs, and the Company shall reasonably determine which items and costs
constitute non-recurring closing costs.

               (d) Housing Allowances. Executive will be eligible to receive from the Company the following
housing allowances (the “Housing Allowances”), contingent upon his continued employment, as
follows: (i) for twelve (12) months after the Start Date, Executive will receive a monthly
temporary housing allowance of $10,000, the after-tax amount of which shall be used for Executive’s
rental or lease payments, and if he purchases a new residence in the San Francisco Bay Area within
this time period, this monthly allowance shall be used for mortgage payments for such residence;
and (ii) after the one year anniversary of the Start Date, and beginning only after Executive
purchases and resides in a primary residence in the San Francisco Bay Area, Executive will be
eligible to receive monthly mortgage assistance payments of $6,000 (the “Mortgage Assistance
Payments”), the after-tax amount of which shall be used for Executive’s mortgage payments for such
residence, with such Mortgage Assistance Payments to be provided for up to a total of twenty-four
(24) months, provided however that Executive will not be eligible for any Mortgage Assistance
Payments if he fails to purchase a primary residence in the San Francisco Bay Area within three (3)
years of the Start Date. The Housing Allowances (including Mortgage Assistance Payments) will be
subject to required payroll deductions and withholdings, and will not be considered by the Company
part of Executive’s Base Salary, including but not limited to for such purposes as determination of

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the Annual Bonus, the Severance Benefits (discussed in Section 5.2(b)), or for the purposes of
the Change in Control Agreement (discussed in Section 5.5).

               (e) Gross-Up. At the time of the payment of any of the Relocation Benefits pursuant to
Sections 2.6(a)-(c) which are not deductible for federal income tax purposes by Executive (e.g.
non-deductible storage costs), Executive will be entitled to an additional “simplified” gross-up
cash payment from the Company in an amount determined by multiplying the amount of the payment of
such Relocation Benefits by 78.8 percent (78.8%).

     3. Proprietary Information Obligations.

          3.1 Agreement. As a condition of employment, Executive agrees to execute and abide by the
Confidential Information and Inventions Assignment Agreement attached hereto as Exhibit A (the
“Confidential Information Agreement”).

          3.2 Third Party Agreements And Information. Executive represents and warrants that
Executive’s employment by the Company will not conflict with any prior employment or consulting
agreement or other agreement with any third party, and that Executive will perform his duties to
the Company without violating any such agreement. Executive represents and warrants that Executive
does not possess confidential information or materials arising out of prior employment, consulting,
or other third party relationships, which would be used in connection with Executive’s employment
by the Company, except as expressly authorized by that third party. During Executive’s employment
by the Company, Executive will use in the performance of Executive’s duties only information which
is generally known and used by persons with training and experience comparable to Executive’s own,
common knowledge in the industry, otherwise legally in the public domain, or obtained or developed
by the Company or by Executive in the course of Executive’s work for the Company.

     4. Outside Activities During Employment.

          4.1 Exclusive Employment. Except with the prior written consent of the Board, Executive will
not during the term of this Agreement undertake or engage in any other employment, occupation or
business enterprise, other than ones in which Executive is a passive investor. By way of example,
but not limitation, Executive may serve on one or more boards of directors of other companies
(including both for profit and not for profit entities) provided that the advance consent of the
Board is obtained after Executive provides the Board with reasonably detailed information about
such other companies. The Board hereby provides authorization to Executive to continue to serve on
the boards of directors of the following entities, provided that such continued service does not
unreasonably interfere with Executive’s discharge of his duties to the Company: FoldRx
Pharmaceuticals, Inc.; John Hopkins University; and Boston Medical Center. Executive may engage in
civic and not-for-profit activities so long as such activities do not materially interfere with the
performance of his duties hereunder or present a conflict of interest with the Company.

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          4.2 No Adverse Interests. Except as permitted by Section 4.3, Executive agrees not to
acquire, assume or participate in, directly or indirectly, any position, investment or interest
known by him to be adverse or antagonistic to the Company, its business or prospects, financial or
otherwise.

          4.3 Noncompetition. During the term of his employment by the Company, except on behalf of the
Company, Executive will not directly or indirectly, whether as an officer, director, stockholder,
partner, proprietor, associate, representative, consultant, or in any capacity whatsoever engage
in, become financially interested in, be employed by or have any business connection with any other
person, corporation, firm, partnership or other entity whatsoever which are known by him to compete
directly with the Company, throughout the world, in any line of business engaged in (or planned to
be engaged in) by the Company; provided, however, that anything above to the contrary
notwithstanding, he may own, as a passive investor, securities of any publicly traded competitor
corporation, so long as his direct holdings in any one such corporation shall not in the aggregate
constitute more than one percent (1%) of the voting stock of such corporation.

     5. Termination Of Employment.

          5.1 At-Will Relationship. Executive’s employment relationship is at-will and not for any
fixed period. Executive may terminate the relationship at any time for any reason, with or without
advance notice. Similarly, the Company may terminate the employment relationship at any time, with
or without Cause, and with or without advance notice.

          5.2 Termination Without Cause.

               (a) Right To Terminate Without Cause. The Company may terminate Executive’s employment with
the Company at any time without Cause, upon notice to Executive.

               (b) Severance Benefits for Termination Without Cause. Executive shall be eligible to receive
the following as his sole severance benefits (the “Severance Benefits”) in the event that:
Executive’s employment is terminated by the Company without Cause at any time; such termination
without Cause constitutes a “separation from service” with the Company within the meaning of
Treasury Regulation Section 1.409A-1(h); Executive is not eligible for severance benefits under the
Change in Control Agreement; Executive remains in compliance with this Agreement and the
Confidential Information Agreement; and Executive provides the Company (and complies with) an
effective Release as required by Section 6 herein.

                    (i) Severance Pay. Executive will receive severance pay equal to thirty-six (36) months of
the Base Salary in effect as of the employment termination date, subject to required payroll
deductions and withholdings (the “Severance”). One half of the Severance will be paid in a lump
sum within ten (10) business days after the effective date of the Release. The remaining one-half
of the

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Severance will be paid as continuation of Executive’s regular base salary payments (excluding
any special forms of compensation such as the Housing Allowances, any other Relocation Benefits, or
bonus compensation) on the Company’s normal payroll dates for eighteen (18) months, beginning with
the first payroll date following the effective date of the Release.

                    (ii) COBRA Premiums. The Company will pay the monthly premiums to continue Executive’s group
health care coverage (including dependent coverage, if applicable) pursuant to federal COBRA law or
comparable state insurance laws for eighteen (18) months after the termination date, provided that
Executive timely elects continued coverage pursuant to COBRA and remains eligible for such
coverage.

                    (iii) Accelerated Vesting of Equity Awards; Extension of Option Exercise Period. The Option
and Time-Vested Restricted Stock Grant specified in Section 2.5 will be subject to accelerated
vesting (the “Acceleration”), such that an additional number of shares equal to the lesser of
either (A) the number of shares under existing such awards at the termination date that would have
vested if Executive’s employment had continued for eighteen (18) months after the employment
termination date (without giving effect to any other accelerated vesting provision), or (B) all
remaining unvested shares under existing such awards at the termination date, will become vested
and exercisable effective as of the employment termination date. In addition, Executive will be
permitted to exercise any vested shares subject to the Option within twelve (12) months after the
employment termination date, but in no event shall such period exceed the expiration of the term of
the Option as set forth in Executive’s stock option agreement (the “Option Exercise Extension”).

               (c) Withholding Severance Benefits For Breach. The Company shall have the right to withhold
any unpaid portion of the Severance Benefits or not permit the Acceleration or Option Exercise
Extension upon its notice to Executive of the Board’s good faith reasonable belief that Executive
has materially breached this Agreement, the Confidential Information Agreement, or the Release, and
the basis for such reasonable belief shall be stated with specificity in such notice.

          5.3 Termination for Cause.

               (a) Right To Terminate For Cause. The Company may terminate Executive’s employment with the
Company at any time for Cause upon written notice to Executive.

               (b) Cause Definition. “Cause” for termination shall mean, in the reasonable determination of
the Board, that Executive: (i) has committed an intentional act, or acted with gross negligence,
that has materially injured the business of the Company, or has committed (or attempted to commit)
a fraud against the Company; (ii) has intentionally refused or failed to follow lawful and
reasonable directions of the Board, after Executive is provided a reasonable opportunity to be
heard on the issue by the Board; (iii) has habitually neglected Executive’s duties for the Company,
or materially

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breached
any duty to or written agreement with the Company (including but not limited to this Agreement
or the Confidential Information Agreement); or (iv) has been convicted (including a plea of guilty
or no contest) of any felony, or has been convicted (including a plea of guilty or no contest) of
any crime involving moral turpitude or dishonesty. Notwithstanding the foregoing, Cause shall not
exist based on conduct described in clauses (ii) or (iii) above unless the conduct described in
such clause has not been cured within thirty (30) days following Executive’s receipt of written
notice from the Company specifying the particulars of the conduct constituting Cause, provided
however that such written notice from the Company is not required if Executive’s conduct is not
reasonably capable of being cured.

               (c) No Severance Benefits Upon Termination For Cause. In the event Executive’s employment is
terminated at any time with Cause, he will not be entitled to any of the Severance Benefits, pay in
lieu of notice or any other such compensation, except as may be provided in a written Company
severance benefit plan, if any, in effect on the termination date, or as required by law.

          5.4 Termination By Executive.

               (a) Right to Resign. Executive may terminate his employment with the Company at any time upon
written notice to the Company, after which no further compensation will be paid to Executive unless
otherwise provided in the Change in Control Agreement, or required by law.

               (b) No Severance Benefits Upon Resignation. In the event Executive terminates his employment
for any reason, he will not be entitled to any Severance Benefits, pay in lieu of notice or any
other such compensation, unless otherwise provided in the Change in Control Agreement, or required
by law.

          5.5 Change in Control Severance Benefits Agreement. The Company agrees to enter into the
Executive Change in Control Severance Benefits Agreement attached hereto as Exhibit B (the “Change
In Control Agreement”) with Executive, which Executive shall execute within ten (10) days of the
Effective Date of this Agreement if he wishes to accept it.

          5.6 Deferred Compensation. All payments provided under this Agreement are intended to
constitute separate payments for purposes of Treasury Regulation Section 1.409A-2(b)(2). If
Executive is a “specified employee” of the Company or any affiliate thereof (or any successor
entity thereto) within the meaning of Section 409A(a)(2)(B)(i) of the Code on the date of a
termination without Cause that constitutes a “separation from service” with the Company within the
meaning of Treasury Regulation Section 1.409A-1(h) (a “Covered Termination”), then any Severance
paid pursuant to Section 5.2(b)(i) (the “Payments”) shall be delayed until the earlier of: (i) the
date that is six (6) months after the date of the Covered Termination, or (ii) the date of
Executive’s death (such date, the “Delayed Payment Date”), and the Company (or the successor entity
thereto, as applicable) shall (A) pay to Executive a lump sum amount equal to the sum of the
Payments that otherwise would have been paid to Executive on or

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before the Delayed Payment Date, without any adjustment on account of such delay, and (B)
continue the Payments in accordance with any applicable payment schedules set forth for the balance
of the period specified herein. Notwithstanding the foregoing, (i) Payments scheduled to be paid
from the date of a Covered Termination through March 15 of the calendar year following such
termination shall be paid as scheduled pursuant to the “short-term deferral” rule set forth in
Treasury Regulation Section 1.409A-1(b)(4); (ii) Payments scheduled to be paid following such March
15 shall be paid as scheduled to the maximum extent permitted pursuant to an “involuntary
separation from service” as permitted by Treasury Regulation Section 1.409A-1(b)(9)(iii), but in no
event later than the last day of the second taxable year following the taxable year of the Covered
Termination; and (iii) any excess Payments shall be subject to delay as provided in the previous
sentence. Amounts paid pursuant to Section 5.2(b)(ii) are intended to be paid pursuant to the
exception provided by Treasury Regulation Section 1.409A-1(b)(9)(v)(B). Amounts paid pursuant to
Section 5.2(b)(iii) are intended to be paid pursuant to the exception provided by Treasury
Regulation Section 1.409A-1(b)(5)(E).

     6. Release. Within the applicable timeframe on or after Executive’s employment
termination date, Executive shall provide the Company with an executed and effective general
release of all known and unknown claims substantially in the form attached hereto as Exhibit C (the
“Release”), as a condition of receipt of any Severance Benefits under Section 5.2(b) of this
Agreement.

     7. Cooperation with Company.

          7.1 Cooperation Obligation. During and after the term of Executive’s employment, Executive
will cooperate with the Company by providing truthful and accurate information without legal
compulsion, in responding to the reasonable requests of the Company’s Chairman of the Board, Chief
Executive Officer or General Counsel, in connection with any and all existing or future litigation,
arbitrations, mediations or investigations brought by or against the Company, or its or their
respective affiliates, agents, officers, directors or employees, whether administrative, civil or
criminal in nature, with respect to Executive possesses relevant information. In such matters,
Executive agrees to provide the Company with reasonable advice, assistance and information,
including offering and explaining evidence, providing truthful sworn statements, and participating
in discovery and trial preparation and testimony. Executive also agrees to promptly send the
Company copies of all correspondence (for example, but not limited to, subpoenas) received by
Executive in connection with any such legal proceedings, unless Executive is expressly prohibited
by law from so doing.

          7.2 Expenses and Fees. The Company will reimburse Executive for reasonable out-of-pocket
expenses incurred by Executive as a result of his cooperation provided under Section 7.1, within
thirty (30) days of the presentation of appropriate documentation thereof, in accordance with the
Company’s standard reimbursement policies and procedures. After termination of Executive’s
employment, if Executive is then not receiving any severance benefits under this Agreement or the
Change in Control Agreement, the Company also will pay Executive a fee of $400 per hour for the
time Executive devotes to matters as requested by the Company under Section 7.1 (the “Fees”).

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The Company will not deduct or withhold any amount from the Fees for taxes, social security,
or other payroll deductions, but will issue an IRS Form 1099 with respect to the Fees. Executive
acknowledges that in cooperating in the manner described in Section 7.1, he will be serving as an
independent contractor, not a Company employee, and he will be entirely responsible for the payment
of all income taxes and any other taxes due and owing as a result of the payment of Fees.
Executive hereby indemnifies the Company and its officers, directors, agents, attorneys, employees,
shareholders, subsidiaries, and affiliates and holds them harmless from any liability for any
taxes, penalties, and interest that may be assessed by any taxing authority with respect to the
Fees, with the exception of the employer’s share of employment taxes subsequently determined to be
applicable, if any.

     8. General Provisions.

          8.1 Notices. Any notices provided hereunder must be in writing and shall be deemed effective
upon the earlier of personal delivery (including personal delivery by facsimile), the next day
after sending by overnight courier, or five (5) business days after deposit in the United States
mail, to the Company at its corporate headquarters, attention of the Chairman of the Board of
Directors, and to Executive at his address as listed in the Company’s payroll records.

          8.2 Severability. Whenever possible, each provision of this Agreement will be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law
or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any
other provision or any other jurisdiction, but this Agreement will be reformed, construed and
enforced in such jurisdiction to the extent possible in keeping with the intent of the parties
pursuant to applicable law.

          8.3 Waiver. If either party should waive any breach of any provisions of this Agreement, the
waiving party shall not thereby be deemed to have waived any preceding or succeeding breach of the
same or any other provision of this Agreement.

          8.4 Complete Agreement. This Agreement, including its exhibits, constitutes the complete,
final, and exclusive embodiment of the agreement between Executive and the Company with regard to
the subject matter hereof. It is entered into without reliance on any promise or representation
other than those expressly contained herein, and it supersedes and replaces any other agreements,
representations or promises made to Executive by anyone, whether oral or written, concerning such
subject matter. Other than changes to Executive’s employment terms which are within the discretion
of the Company or the Board to make (as provided herein, by law, or pursuant to the articles and
by-laws of the Company), the terms of this Agreement cannot be modified or amended except in a
writing approved by the Board and signed by a duly authorized officer or director of the Company
and Executive.

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          8.5 Counterparts. This Agreement may be executed in separate counterparts, any one of which
need not contain signatures of more than one party, but all
of which taken together will constitute one and the same Agreement. Signatures transmitted
via facsimile shall be deemed equivalent to originals.

          8.6 Headings. The headings of the sections hereof are inserted for convenience only and shall
not be deemed to constitute a part hereof nor to affect the meaning thereof.

          8.7 Successors and Assigns. This Agreement is intended to bind and inure to the benefit of
and be enforceable by Executive and the Company, and their respective successors, assigns, heirs,
executors and administrators, except that Executive may not assign any of his duties hereunder and
he may not assign any of his rights hereunder without the written consent of the Company, which
shall not be withheld unreasonably.

          8.8 Survival. Executive’s duties under the Confidential Information Agreement and Section 7
(Cooperation With Company) of this Agreement shall survive termination of his employment with the
Company.

          8.9 Attorneys’ Fees. If either party hereto brings any action to enforce his or its rights
hereunder, the party successful in enforcing this Agreement shall be entitled to recover his or its
reasonable attorneys’ fees and costs incurred in connection with such action

          8.10 Dispute Resolution. To aid in the rapid and economical resolution of any disputes which
may arise under this Agreement, Executive and the Company agree that any and all claims, disputes
or controversies of any nature whatsoever arising from or regarding the interpretation,
performance, negotiation, execution, enforcement or breach of this Agreement, Executive’s
employment, or the termination of Executive’s employment, including but not limited to any
statutory claims, shall be resolved by confidential, final and binding arbitration conducted before
a single arbitrator with JAMS, Inc. (“JAMS”) in San Francisco, California, in accordance with JAMS’
then-applicable arbitration rules. The parties acknowledge that by agreeing to this arbitration
procedure, they waive the right to resolve any such dispute through a trial by jury, judge or
administrative proceeding. Executive will have the right to be represented by legal counsel at any
arbitration proceeding. The arbitrator shall: (a) have the authority to compel adequate discovery
for the resolution of the dispute and to award such relief as would otherwise be available under
applicable law in a court proceeding; and (b) issue a written statement signed by the arbitrator
regarding the disposition of each claim and the relief, if any, awarded as to each claim, the
reasons for the award, and the arbitrator’s essential findings and conclusions on which the award
is based. The Company shall bear JAMS’ arbitration fees and administrative costs. Nothing in this
Agreement shall prevent either party from obtaining injunctive relief in court to prevent
irreparable harm pending the conclusion of any such arbitration. Any awards or orders in such
arbitrations may be entered and enforced as judgments in the federal and state courts of any
competent jurisdiction. The arbitrator, and not a court, shall be authorized to determine whether
the provisions of this paragraph apply to a dispute, controversy or claim sought to be resolved in
accordance with these arbitration procedures.

12.

 

          8.11 Choice of Law. All questions concerning the construction, validity and interpretation of
this Agreement will be governed by the law of the State of California, without giving effect to
choice of law principles.

     In Witness Whereof, the parties have executed this Agreement on the day and year
first written above.

	 	 	 	 	 	 	 
	 	 	Onyx Pharmaceuticals, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Hollings C. Renton
 

Hollings C. Renton
	 	 
	 

	 	 	 	Chief Executive Officer	 	 

N. Anthony Coles, an Individual

	 	 	 
	/s/ N. Anthony Coles
 

	 	 

13.

 

Exhibit A

CONFIDENTIAL INFORMATION AND INVENTIONS ASSIGNMENT AGREEMENT

     In consideration of my employment or continued employment by Onyx Pharmaceuticals, Inc or its
subsidiaries or affiliates (the “Company”), and the compensation paid to me now and during my
employment with the Company, I agree to the terms of this Agreement as follows:

1. Confidential Information Protections.

     1.1 Nondisclosure; Recognition of Company’s Rights. At all times during and after my
employment, I will hold in confidence and will not disclose, use, lecture upon, or publish any of
Company’s Confidential Information (defined below), except as may be required in connection with my
work for Company, or as expressly authorized in writing by an officer of Company. I will obtain
such officer’s written approval before publishing or submitting for publication any material
(written, oral, or otherwise) that relates to my work at Company and/or incorporates any
Confidential Information. I hereby assign to Company any rights I have or may acquire in any and
all Confidential Information and recognize that all Confidential Information shall be the sole and
exclusive property of Company and its assigns.

     1.2 Confidential Information. The term “Confidential Information” shall mean any and all
confidential knowledge, data or information related to Company’s business or its actual or
demonstrably anticipated research or development, including without limitation (a) trade secrets,
inventions, ideas, processes, computer source and object code, data, formulae, programs, other
works of authorship, know-how, improvements, discoveries, developments, designs, techniques,
methodologies, techniques, processes, assay systems, procedures, tests, formulations, gene
sequences and loci, compounds, micro-organisms or other cell types, proteins, peptides, genetic and
other biological material, computer programs, algorithms, software, reports, documentation,
equipment, and devices; (b) information regarding products, services, plans for research and
development, unpublished test results, clinical trials, marketing and business plans, budgets,
financial statements, contracts, prices, suppliers, and customers; (c) information regarding the
skills and compensation of Company’s employees, contractors, and any other service providers of
Company; and (d) the existence of any business discussions, negotiations, or agreements between
Company and any third party.

     1.3 Third Party Information. I understand that Company has received and in the future will
receive from third parties confidential or proprietary information (“Third Party Information")
subject to a duty on Company’s part to maintain the confidentiality of such information and to use
it only for certain limited purposes. During and after the term of my employment, I will hold
Third Party Information in strict confidence and will not disclose to anyone (other than Company
personnel who need to know such information in connection with their work for Company) or use,
Third Party Information, except in connection with my work for Company or unless expressly
authorized by an officer of Company in writing.

     1.4 No Improper Use of Information of Prior Employers and Others. I represent that my
employment by Company does not and will not breach any agreement with any former employer,
including any noncompete agreement or any agreement to keep in confidence or refrain from using
information acquired by me in confidence or trust prior to my employment by Company. I further
represent that I have not entered into, and will not enter into, any agreement, either written or
oral, in conflict with my obligations under this Agreement. During my employment by Company, I
will not improperly use or disclose any confidential information or trade secrets of any former
employer or other third party, nor will I bring onto the premises of Company or use any unpublished
documents or any property belonging to any former employer or other third party, in violation of
any lawful agreements with that former employer or third party. I will use in the performance of
my duties only information that is generally known and used by persons with training and experience
comparable to my own, is common knowledge in the industry or otherwise legally in the public
domain, or is otherwise provided or developed by Company.

2. Inventions.

     2.1 Inventions and Intellectual Property Rights. As used in this Agreement, the term
“Invention” means any ideas, concepts, information, materials, processes, methods, data, programs,
know-how, improvements, discoveries, developments, designs, artwork, formulae, other patentable or
copyrightable works, and techniques and all Intellectual Property Rights in any of the items listed
above. The term “Intellectual Property Rights” means all trade secrets, copyrights, trademarks,
mask work rights, patents and other intellectual property rights recognized by the laws of any
jurisdiction or country.

     2.2 Prior Inventions. I have disclosed on Exhibit A a complete list of all Inventions that
(a) I have, or I have caused to be, alone or jointly with others, conceived, developed, or reduced
to practice prior to the commencement of my employment by Company; (b) in which I have an ownership
interest or which I have a license to use; and (c) I wish to have excluded from the scope of this
Agreement (collectively referred to as “Prior Inventions”). If no Prior Inventions are listed in
Exhibit A, I warrant that there are no Prior Inventions. I agree that I will not incorporate, or
permit

1

 

to be incorporated, Prior Inventions in any Company Inventions (defined below) without
Company’s prior written consent. If, in the course of my employment with Company, I incorporate a
Prior Invention into a Company process, machine or other work, I hereby grant Company a
non-exclusive, perpetual, fully-paid and royalty-free, irrevocable and worldwide license, with
rights to sublicense through multiple levels of sublicensees, to reproduce, make derivative works
of, distribute, publicly perform, and publicly display in any form or medium, whether now known or
later developed, make, have made, use, sell, import, offer for sale, and exercise any and all
present or future rights in, such Prior Invention.

     2.3 Assignment of Company Inventions. Inventions assigned to the Company or to a third party
as directed by the Company pursuant to the section titled “Government or Third Party” are referred
to in this Agreement as “Company Inventions.” Subject to the section titled “Government or Third
Party” and except for Inventions that I can prove qualify fully under the provisions of California
Labor Code section 2870 and that I have set forth in Exhibit A, I hereby assign and agree to assign
in the future (when any such Inventions or Intellectual Property Rights are first reduced to
practice or first fixed in a tangible medium, as applicable) to Company all my right, title, and
interest in and to any and all Inventions (and all Intellectual Property Rights with respect
thereto) made, conceived, reduced to practice, or learned by me, either alone or with others,
during the period of my employment by Company.

     2.4 Obligation to Keep Company Informed. During the period of my employment and for one (1)
year after my employment ends, I will promptly and fully disclose to Company in writing (a) all
Inventions authored, conceived, or reduced to practice by me, either alone or with others,
including any that might be covered under California Labor Code section 2870, and (b) all patent
applications filed by me or in which I am named as an inventor or co-inventor.

     2.5 Government or Third Party. I agree that, as directed by the Company, I will assign to a
third party, including without limitation the United States, all my right, title, and interest in
and to any particular Company Invention.

     2.6 Enforcement of Intellectual Property Rights and Assistance. During and after the period
of my employment, I will assist Company in every proper way to obtain and enforce United States and
foreign Intellectual Property Rights relating to Company Inventions in all countries. If the
Company is unable to secure my signature on any document needed in connection with such purposes, I
hereby irrevocably designate and appoint Company and its duly authorized officers and agents as my
agent and attorney in fact, which appointment is coupled with an interest, to act on my behalf to
execute and file any such documents and to do all other lawfully permitted acts to further such
purposes with the same legal force and effect as if executed by me.

     2.7 Incorporation of Software Code. I agree that I will not incorporate into any Company
software or otherwise deliver to Company any software code licensed under the GNU General Public
License or Lesser General Public License or any other license that, by its terms, requires or
conditions the use or distribution of such code on the disclosure, licensing, or distribution of
any source code owned or licensed by Company.

3. Records. I agree to keep and maintain adequate and current records (in the form of
notes, sketches, drawings and in any other form that is required by the Company) of all Inventions
made by me during the period of my employment by the Company, which records shall be available to,
and remain the sole property of, the Company at all times.

4. Additional Activities. I agree that (a) during the term of my employment by Company, I
will not, without Company’s express written consent, engage in any employment or business activity
directly related to or competitive with the business in which the Company is now or becomes
involved, or would otherwise conflict with my obligations to the Company. To protect the Company’s
Intellectual Property Rights, and because of the position in the Company that I hold, I agree that
during my employment with the Company whether full-time or part-time and for a period of one year
after my last day of employment with the Company, I will not (a) directly or indirectly, solicit,
induce or encourage, or attempt to solicit, induce, or encourage or otherwise cause any employee,
consultant or independent contractor of the Company to terminate his or her relationship with the
Company in order to become an employee, independent contractor, or consultant to or for any other
person or entity (or any such employee, consultant or independent contractor who has terminated
their relationship with the Company within the six months prior to the date of the action
prohibited hereunder), or (b) directly or indirectly solicit the business of any client or customer
of the Company (other than on behalf of the Company) if such solicitation would involve the
unauthorized use or disclosure of the Company’s Confidential Information.

5. Return Of Company Property.  Upon termination of my employment or upon Company’s
request at any other time, I will deliver to Company all of Company’s property, equipment, and
documents, together with all copies thereof, and any other material containing or disclosing any
Inventions, Third Party Information or Confidential Information and certify in writing that I have
fully complied with the foregoing obligation. I agree that I will not copy, delete, or alter any
information contained upon my Company computer or Company equipment before I return it to Company.
In addition, if I have used any personal computer, server, or e-mail system to receive, store,
review, prepare or transmit any Company information, including but not limited to, Confidential
Information, I agree to provide the Company with a computer-useable copy of all such Confidential
Information and then permanently delete and expunge such Confidential Information from those
systems; and I agree to provide the Company access to my system as reasonably requested to verify
that the necessary copying and/or deletion is

2

 

completed. I further agree that any property situated on Company’s premises and owned by Company is subject to
inspection by Company’s personnel at any time with or without further notice. Prior to the
termination of my employment or promptly after termination of my employment, I will cooperate with
Company in attending an exit interview and certify in writing that I have complied with the
requirements of this section.

6. Notification Of New Employer. In the event that I leave the employ of Company, I
hereby consent to the notification of my new employer of my rights and obligations under this
Agreement, by Company providing a copy of this Agreement or otherwise.

7. General Provisions.

     7.1 Governing Law and Venue. This Agreement and any action related thereto will be governed,
controlled, interpreted and defined by and under the laws of the State of California, without
giving effect to any conflicts of laws principles that require the application of the law of a
different state. I hereby expressly consent to the personal jurisdiction and venue in the state
and federal courts for the county in which Company’s principal place of business is located for any
lawsuit filed there against me by Company arising from or related to this Agreement.

     7.2 Severability. If any provision of this Agreement is, for any reason, held to be invalid
or unenforceable, the other provisions of this Agreement will be unimpaired and the invalid or
unenforceable provision will be deemed modified so that it is valid and enforceable to the maximum
extent permitted by law.

     7.3 Survival. This Agreement shall survive the termination of my employment and the
assignment of this Agreement by Company to any successor-in-interest or other assignee and be
binding upon my heirs and legal representatives.

     7.4 Employment. I agree and understand that nothing in this Agreement shall give me any right
to continued employment by Company, and it will not interfere in any way with my right or Company’s
right to terminate my employment at any time, with or without cause and with or without advance
notice.

     7.5 Notices. Each party must deliver all notices or other communications required or
permitted under this Agreement in writing to the other party at the address listed on the signature
page, by courier, by certified or registered mail (postage prepaid and return receipt requested),
or by a nationally-recognized express mail service. Notice will be effective upon receipt or
refusal of delivery. If delivered by certified or registered mail, notice will be considered to
have been given five (5) business days after it was mailed, as evidenced by the postmark. If
delivered by courier or express mail service, notice will be considered to have been given on the
delivery date reflected by the courier or express mail service receipt. Each party may change its
address for receipt of notice by giving notice of such change to the other party.

     7.6 Injunctive Relief. I acknowledge that, because my services are personal and unique and
because I will have access to the Confidential Information of Company, any breach of this Agreement
by me would cause irreparable injury to Company for which monetary damages would not be an adequate
remedy and, therefore, will entitle Company to injunctive relief (including specific performance).
The rights and remedies provided to each party in this Agreement are cumulative and in addition to
any other rights and remedies available to such party at law or in equity.

     7.7 Waiver. Any waiver or failure to enforce any provision of this Agreement on one occasion
will not be deemed a waiver of any other provision or of such provision on any other occasion.

     7.8 Export. I agree not to export, directly or indirectly, any U.S. technical data acquired
from Company or any products utilizing such data, to countries outside the United States, because
such export could be in violation of the United States export laws or regulations.

     7.9 Entire Agreement. The obligations pursuant to sections of this Agreement titled
“Confidential Information Protections” and “Inventions” shall apply at any time during which I was
previously employed, or am in the future employed by Company or, to the fullest extent permitted by
law, to any time during which I was previously engaged, or am in the future engaged, by Company as
an independent contractor, if no other agreement governs nondisclosure and assignment of inventions
during such period. This Agreement is the final, complete and exclusive agreement of the parties
with respect to the subject matter hereof and supersedes and merges all prior communications
between us with respect to such matters. No modification of or amendment to this Agreement, or any
waiver of any rights under this Agreement, will be effective unless in writing and signed by me and
an officer of the Company. Any subsequent change or changes in my duties, salary or compensation
will not affect the validity or scope of this Agreement.

3

 

     This Agreement shall be effective as of the first day of my employment with Company.

	 	 	 	 	 	 	 	 	 	 	 
	     EMPLOYEE: 	 	 	 	ONYX PHARMACEUTICALS, INC.: 	 	 
	     I have read, understand, and
accept this agreement and have
been given the opportunity to
discuss it with independent
legal counsel.	 	 	 	Accepted and agreed:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 

(Signature)
	 	 	 	 	 	 

(Signature)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	Title:

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	Date:

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	Address:

	 	 	 	 	 	Address:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

4

 

EXHIBIT A TO

CONFIDENTIAL INFORMATION AND

INVENTIONS ASSIGNMENT AGREEMENT

INVENTIONS

     1. Prior Inventions Disclosure. The following is a complete list of all Prior Inventions (as
provided in Section 2.2 of the attached Employee Confidential Information and Inventions Assignment
Agreement, defined herein as the “Agreement”):

	 	 	 	 	 	 	 	 	 
	 	 	o	 	None	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	o	 	See immediately below:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	o
	 	Additional sheets attached.	 	 

     2. Due to a prior confidentiality agreement, I cannot complete the disclosure under Section 1
above with respect to inventions or improvements generally listed below and the proprietary rights
and obligations with respect to which I owe to the following party(ies):

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Invention or Improvement	 	Party(ies)	 	 
	 	 	 	 	 	 	Relationship	 	 	 	 
	 

	 	 	1.	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	3.	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

	 	 
	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	 	 	o
	 	Additional sheets attached.

     3. Limited Exclusion Notification.

     This is to notify you in accordance with Section 2872 of the California Labor Code
that the foregoing Agreement between you and Company does not require you to assign or offer to
assign to Company any Invention that you develop entirely on your own time without using Company’s
equipment, supplies, facilities or trade secret information, except for those Inventions that
either:

 

 

     a. Relate at the time of conception or reduction to practice to Company’s business, or actual
or demonstrably anticipated research or development; or

     b. Result from any work performed by you for Company.

     To the extent a provision in the foregoing Agreement purports to require you to assign an
Invention otherwise excluded from the preceding paragraph, the provision is against the public
policy of this state and is unenforceable.

     This limited exclusion does not apply to any patent or Invention covered by a contract between
Company and the United States or any of its agencies requiring full title to such patent or
Invention to be in the United States.

 

 

Exhibit B

EXECUTIVE CHANGE IN CONTROL SEVERANCE BENEFITS AGREEMENT

 

 

Exhibit C

RELEASE AGREEMENT

(To be signed on or within twenty-one (21) days after the employment termination date.)

     1. Consideration. I understand that my employment with Onyx Pharmaceuticals, Inc. (the
"Company”) terminated effective                     , 20___(the “Separation Date”). The Company has agreed
that if I timely sign this Release Agreement (“Release”) and allow it to become effective, the
Company will provide me certain Severance Benefits pursuant to the terms of the Executive
Employment Agreement (the “Agreement”) between myself and the Company. I understand that I am not
entitled to the Severance Benefits unless I timely sign this Release and allow it to become
effective.

     2. General Release. In exchange for the Severance Benefits to be provided to me under the
Agreement that I am not otherwise entitled to receive, I hereby generally and completely release,
acquit and forever discharge the Company and its parent, subsidiary, and affiliated entities, along
with its and their predecessors and successors and their respective directors, officers, employees,
shareholders, stockholders, partners, agents, attorneys, insurers, affiliates and assigns
(collectively, the “Released Parties”), of and from any and all claims, liabilities and
obligations, both known and unknown, that arise from or are in any way related to events, acts,
conduct, or omissions occurring at any time prior to and including the date that I sign this
Release (collectively, the “Released Claims”). The Released Claims include, but are not limited
to: (a) all claims arising out of or in any way related to my employment with the Company, or the
termination of that employment; (b) all claims related to my compensation or benefits from the
Company, including salary, bonuses, commissions, other incentive compensation, vacation pay and the
redemption thereof, expense reimbursements, severance payments, fringe benefits, stock, stock
options, or any other ownership or equity interests in the Company; (c) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing
(including but not limited to claims based on or arising from the Agreement); (d) all tort claims,
including but not limited to claims for fraud, defamation, emotional distress, and discharge in
violation of public policy; and (e) all federal, state, and local statutory claims, including but
not limited to claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims
arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with
Disabilities Act of 1990 (as amended), the federal Age Discrimination in Employment Act of 1967 (as
amended) (the “ADEA”), and the California Fair Employment and Housing Act (as amended).
Notwithstanding the foregoing, the following are not included in the Released Claims (the “Excluded
Claims”): (a) any rights or claims for indemnification I may have pursuant to any written
indemnification agreement with the Company to which I am a party, the charter, bylaws, or under
applicable law; (b) any rights which are not waivable as a matter of law; or (c) any claims for
breach of the Agreement arising after the date that I sign the Release. In addition, nothing in
this Release prevents me from filing, cooperating with, or participating in any investigation or
proceeding before the Equal Employment Opportunity

 

 

Commission, the Department of Labor, the California Department of Fair Employment and Housing,
or any other government agency, except that I hereby waive my right to any monetary benefits in
connection with any such claim, charge, investigation or proceeding. I hereby represent and
warrant that, other than the Excluded Claims, I am not aware of any claims I have or might have
against any of the Released Parties that are not included in the Released Claims.

     3. ADEA Waiver. I acknowledge that I am knowingly and voluntarily waiving and releasing any
rights I may have under the ADEA, that the consideration given for the Release is in addition to
anything of value to which I was already entitled, and that I have been advised by this writing, as
required by the ADEA, that: (a) my release of claims does not apply to any rights or claims that
arise after the date I sign this Release; (b) I should consult with an attorney prior to signing
this Release (although I may choose voluntarily not to do so); (c) I have twenty-one (21) days to
consider this Release (although I may choose voluntarily to sign it sooner); (d) I have seven (7)
days following the date I sign this Release to revoke it by providing written notice of my
revocation to the Chairman of the Company’s Board of Directors; and (e) this Release will not be
effective until the date upon which the revocation period has expired unexercised, which will be
the eighth day after I sign this Release (“Effective Date”).

     4. Section 1542 Waiver. In giving the general release herein, which includes claims which may
be unknown to me at present, I acknowledge that I have read and understand Section 1542 of the
California Civil Code, which reads as follows: “A general release does not extend to claims which
the creditor does not know or suspect to exist in his or her favor at the time of executing the
release, which if known by him or her must have materially affected his or her settlement with the
debtor.” I hereby expressly waive and relinquish all rights and benefits under that section and
any law of any other jurisdiction of similar effect with respect to my release of claims, including
but not limited to any unknown or unsuspected claims herein.

     5. Representations. I hereby represent that I have been paid all compensation owed and for
all hours worked, have received all the leave and leave benefits and protections for which I am
eligible, pursuant to the Family and Medical Leave Act or otherwise, and have not suffered any
on-the-job injury for which I have not already filed a workers’ compensation claim.

     6. Additional Covenants. In addition to the above: (a) I hereby acknowledge and reaffirm my
continuing obligations to the Company under the terms of my Confidential Information and Inventions
Assignment Agreement; (b) I agree not to disparage the Company or any of the other Released Parties
in any manner likely to be harmful to its or their business, business reputations, or personal
reputations; (c) I agree to return, no later than my employment termination date, all Company
property, documents, information, and materials, including but not limited to any and all
embodiments (e.g., notes, computer-recorded information) of the Company’s proprietary or
confidential information (and all reproductions thereof, in whole or in part) in my possession or
control; and (d) I will not voluntarily provide assistance, information or advice, directly or
indirectly (including through agents or attorneys), to any person or entity in connection with any
claim or cause of action of any kind brought against the Company or its officers,

 

 

directors, or affiliated entities, nor induce or encourage any person or entity to bring such
claims; provided that it shall not violate this covenant if I testify truthfully when required to
do so by a valid subpoena or under similar compulsion of law.

	 	 	 	 	 
	Understood and Agreed:	 	 
	 
	 	 	 	 
	N. Anthony Coles, an Individual	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Date:exv10w2

 

Exhibit 10.2

EXECUTIVE CHANGE IN CONTROL

SEVERANCE BENEFITS AGREEMENT

     This Executive Change in Control Severance Benefits Agreement (the “Agreement”) is
entered into as of the 22nd day of February, 2008 (the “Effective Date”), between N. Anthony
Coles (“Executive”) and Onyx Pharmaceuticals, Inc. (the “Company”). This Agreement
is intended to provide Executive with certain compensation and benefits in the event that Executive
is subject to certain qualifying terminations of employment in connection with a Change in Control.
Certain capitalized terms used in this Agreement are defined in Article 5.

     The Company and Executive hereby agree as follows:

ARTICLE 1

Scope of and Consideration for this Agreement

     1.1 The Company desires to employ Executive in the positions of President and Chief Executive
Officer, and Executive wishes to be employed by the Company in such position.

     1.2 The Company and Executive wish to set forth the compensation and benefits that Executive
shall be entitled to receive upon a Covered Termination.

     1.3 The duties and obligations of the Company to Executive under this Agreement shall be in
consideration for Executive’s employment with the Company, and, with respect to the benefits
described in Article 2 and any Gross-Up Payment described in Section 3.2, Executive’s execution of
an effective Release in accordance with Section 3.1.

ARTICLE 2

Severance Benefits 

     2.1 Severance Benefits. Upon a Covered Termination, Executive shall be entitled to receive
the benefits set forth in Sections 2.2, 2.3, 2.4, 2.5, and 2.6.

     2.2 Cash Severance Benefits. The Company shall make a cash severance payment in a lump sum to
Executive in an amount equal to the sum of (i) four (4) times Executive’s Base Salary.

     2.3 Health Continuation Coverage.

          (a) Provided that Executive is eligible for, and has made the necessary elections pursuant to
COBRA under a health, dental, or vision plan sponsored by the Company, Executive shall be entitled
to payment by the Company of all of the projected applicable premiums in a lump sum (inclusive of
premiums for Executive’s dependents for such health, dental, or vision plan coverage as in effect
immediately prior to the date of the Covered Termination) for such health, dental, or vision plan
coverage for a period of twenty-four (24)

 1.

 

months following the date of the Covered Termination, with such coverage counted as coverage
pursuant to COBRA.

          (b) For purposes of this Section 2.3, (i) references to COBRA shall be deemed to refer also to
analogous provisions of state law, and (ii) any applicable insurance premiums that are paid by the
Company shall not include any amounts payable by Executive under a Code Section 125 health care
reimbursement plan, which amounts, if any, are the sole responsibility of Executive.

     2.4 Continued Life Insurance Benefit. The Company shall pay the portion of the premiums of
Executive’s group life insurance coverage that the Company paid prior to the Covered Termination.
Executive shall be entitled to twenty-four (24) months of such premium payments, but in no event
shall such premium payments be made following the effective date of Executive’s coverage by a life
insurance plan or policy of a subsequent employer. Executive shall be required to notify the
Company in writing immediately if Executive becomes covered by a life insurance plan or policy of a
subsequent employer.

     2.5 Outplacement Assistance. On behalf of Executive, the Company shall reimburse Executive
for reasonable outplacement services actually incurred for a period of one (1) year following a
Covered Termination with an outplacement service provider selected by the Company; provided,
however, that the total cost to the Company of such outplacement services shall not exceed forty
thousand dollars ($40,000).

     2.6 Stock Awards. The stock awards granted to Executive on or after the effective date of
this Agreement shall contain the following provisions:

          (a) Vesting and Exercisability. The vesting and exercisability of Executive’s outstanding
stock options and the vesting of Executive’s outstanding restricted stock awards shall be
accelerated in full following a Covered Termination.

          (b) Term. Executive shall have twelve (12) months following a Covered Termination in which to
exercise any outstanding stock options, but in no event shall such period exceed the expiration of
the term of the stock option as set forth in the stock option agreement.

ARTICLE 3

Limitations and Conditions on Benefits

     3.1 Release Prior to Payment of Benefits. Upon the occurrence of a Covered Termination, and
prior to the provision or payment of any benefits under this Agreement on account of such Covered
Termination, Executive must execute a general waiver and release in substantially the form attached
hereto and incorporated herein as Exhibit A, Exhibit B, or Exhibit C, as appropriate (each a
“Release”), and such release must become effective in accordance with its terms. The Company may
modify the Release in its discretion to comply with changes in applicable law until the date of a
Covered Termination. Such Release shall specifically relate to all of Executive’s rights and
claims in existence at the time of such execution and shall confirm Executive’s obligations under
the Company’s standard form of proprietary information and inventions agreement. It is understood
that, as specified in the

 2.

 

applicable Release, Executive has a certain number of calendar days to consider whether to
execute such Release. If Executive does not execute such Release within the applicable period, no
benefits shall be provided or payable under this Agreement pursuant to a Covered Termination. It
is further understood that if Executive is age 40 or older at the time of a Covered Termination,
Executive may revoke the applicable Release within seven (7) calendar days after its execution. If
Executive revokes such Release within such subsequent seven (7) day period, no benefits shall be
provided or payable under this Agreement pursuant to such Covered Termination.

     3.2 Parachute Payments.

          (a) Parachute Payment Limitation. If any payment or benefit (including payments and benefits
pursuant to this Agreement) Executive would receive in connection with a Change in Control from the
Company or otherwise (“Payment”) would (i) constitute a “parachute payment” within the meaning of
Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by
Section 4999 of the Code (the “Excise Tax”), then the Company shall cause to be determined, before
any amounts of the Payment are paid to Executive, which of the following two alternative forms of
payment shall be paid to Executive: (i) payment in full of the entire amount of the Payment (a
“Full Payment”), or (ii) payment of only a part of the Payment so that Executive receives the
largest payment possible without the imposition of the Excise Tax (a “Reduced Payment”). A Full
Payment shall be made in the event that the quotient obtained by dividing (i) the excess of (a) the
Full Payment, over (b) the Reduced Payment, by (ii) the Reduced Payment, is greater than ten
percent (10%). A Reduced Payment shall be made in the event that the quotient obtained by dividing
(i) the excess of (a) the Full Payment, over (b) the Reduced Payment, by (ii) the Reduced Payment,
is less than or equal to ten percent (10%). If a Reduced Payment is made, (i) the Payment shall be
paid only to the extent permitted under the Reduced Payment alternative, and Executive shall have
no rights to any additional payments and/or benefits constituting the Payment, and (ii) reduction
in payments and/or benefits shall occur in the following order unless Executive elects in writing a
different order (provided, however, that such election shall be subject to Company approval if made
on or after the date on which the event that triggers the Payment occurs): (1) reduction of cash
payments; (2) cancellation of accelerated vesting of equity awards other than stock options; (3)
cancellation of accelerated vesting of stock options; and (4) reduction of other benefits paid to
Executive. In the event that acceleration of compensation from Executive’s equity awards is to be
reduced, such acceleration of vesting shall be canceled in the reverse order of the date of grant
unless Executive elects in writing a different order for cancellation.

          (b) Gross-Up Payment. If it is determined that the Payment would result in an Excise Tax, the
Company shall pay and Executive shall be entitled to receive an additional payment (a “Gross-Up
Payment”) from the Company in an amount that after the payment of all taxes (including, without
limitation, (i) any income or employment taxes, (ii) any interest or penalties imposed with respect
to such taxes, and (iii) any additional excise tax imposed by Section 4999 of the Code) on the
Gross-Up Payment, Executive shall retain an amount equal to the full Excise Tax. For purposes of
determining the amount of the Gross-Up Payment, Executive shall be deemed to have: (x) paid federal
income taxes at the highest marginal rate of federal income and employment taxation for the
calendar year in which the Gross-Up Payment is to be made, and (y) paid applicable state and local
income taxes at the highest rate of taxation for

 3.

 

the calendar year in which the Gross-Up Payment is to be made, net of the maximum reduction in
federal income taxes which could be obtained from deduction of such state and local taxes. Except
as otherwise provided herein, Executive shall not be entitled to any additional payments or other
indemnity arrangements in connection with the Payment or the Gross-Up Payment.

          (c) The independent registered public accounting firm engaged by the Company for general audit
purposes as of the day prior to the effective date of the Change in Control shall make all
determinations required to be made under this Section 3.2. If the independent registered public
accounting firm so engaged by the Company is serving as accountant or auditor for the individual,
entity or group effecting the Change in Control, the Company shall appoint a nationally recognized
independent registered public accounting firm to make the determinations required hereunder. The
Company shall bear all expenses with respect to the determinations by such independent registered
public accounting firm required to be made hereunder.

          (d) The independent registered public accounting firm engaged to make the determinations
hereunder shall provide its calculations, together with detailed supporting documentation, to the
Company and Executive within fifteen (15) calendar days after the date on which Executive’s right
to a Payment is triggered (if requested at that time by the Company or Executive) or such other
time as requested by the Company or Executive. If the independent registered public accounting
firm determines that no Excise Tax is payable with respect to a Payment, either before or after the
application of the Reduced Amount, it shall furnish the Company and Executive with an opinion
reasonably acceptable to Executive that no Excise Tax will be imposed with respect to such Payment.
Any good faith determinations of the accounting firm made hereunder shall be final, binding and
conclusive upon the Company and Executive.

     3.3 Certain Reductions and Offsets. To the extent that any federal, state or local laws,
including, without limitation, the Worker Adjustment and Retraining Notification Act (the “WARN
Act”) or any other so-called “plant closing” laws, require the Company to give advance notice or
make a payment of any kind to Executive because of Executive’s involuntary termination due to a
layoff, reduction in force, plant or facility closing, sale of business, change in control, or any
other similar event or reason, the benefits payable under this Agreement shall be correspondingly
reduced. The benefits provided under this Agreement are intended to satisfy any and all statutory
obligations that may arise out of Executive’s involuntary termination of employment for the
foregoing reasons, and the parties shall construe and enforce the terms of this Agreement
accordingly.

     3.4 Mitigation. Except as otherwise specifically provided herein, Executive shall not be
required to mitigate damages or the amount of any payment provided under this Agreement by seeking
other employment or otherwise, nor shall the amount of any payment provided for under this
Agreement be reduced by any compensation earned by Executive as a result of employment by another
employer or by any retirement benefits received by Executive after the date of a Covered
Termination.

     3.5 Application of Section 409A. All payments provided under this Agreement are intended to
constitute separate payments for purposes of Treasury Regulation Section 1.409A-2(b)(2). If
Executive is a “specified employee” of the Company or any affiliate thereof (or any

 4.

 

successor entity thereto) within the meaning of Section 409A(a)(2)(B)(i) of the Code on the
date of a Covered Termination, then the cash severance payment provided under Section 2.2 and the
lump sum health continuation coverage benefits provided under Section 2.3 (the “Payments”) shall be
delayed until the earlier of: (i) the date that is six (6) months after the date of the Covered
Termination, or (ii) the date of Executive’s death (such date, the “Delayed Payment Date”), and the
Company (or the successor entity thereto, as applicable) shall pay to Executive a lump sum amount
equal to the sum of the Payments that otherwise would have been paid to Executive on or before the
Delayed Payment Date without any adjustment on account of such delay. The continued life insurance
benefit provided under Section 2.4 is intended to qualify for the exception for reimbursements or
in-kind benefits provided under Treasury Regulation Section 1.409A-3(i)(1)(iv). The outplacement
assistance payments provided under Section 2.5 is intended to qualify for the exception for
reimbursements provided under Treasury Regulation Section 1.409A-1(9)(v)(A). The Gross-Up Payment
provided under Section 3.2(b) shall be paid by the end of Executive’s taxable year next following
the Executive’s taxable year in which the Executive remits the related taxes as provided under
Treasury Regulation Section 1.409A-3(i)(1)(v).

     3.6 Tax Withholding. All such payments under this Agreement shall be subject to applicable
withholding for federal, state and local income and employment taxes.

     3.7 Indebtedness of Executive. If Executive is indebted to the Company on the effective date
of a Covered Termination, the Company reserves the right to offset any severance payments under
this Agreement by the amount of such indebtedness.

ARTICLE 4

Other Rights and Benefits

     Nothing in the Agreement shall prevent or limit Executive’s continuing or future participation
in any benefit, bonus, incentive or other plans, programs, policies or practices provided by the
Company and for which Executive may otherwise qualify, nor shall anything herein limit or otherwise
affect such rights as Executive may have under other agreements with the Company. Except as
otherwise expressly provided herein, amounts that are vested benefits or that Executive is
otherwise entitled to receive under any plan, policy, practice or program of the Company at or
subsequent to the date of a Change in Control shall be payable in accordance with such plan,
policy, practice or program.

ARTICLE 5

Definitions

     Unless otherwise provided, for purposes of the Agreement, the following definitions shall
apply:

     5.1 “Base Salary” means the greater of (i) Executive’s annual base salary (excluding incentive
pay, premium pay, commissions, relocation assistance or benefits, housing allowances, overtime,
bonuses, and other forms of special or variable compensation) as in effect on the date

 5.

 

of a Covered Termination, or (ii) Executive’s annual base salary (excluding incentive pay,
premium pay, commissions, relocation assistance or benefits, housing allowances, overtime, bonuses,
and other forms of special or variable compensation) as in effect on the date of a Change in
Control.

     5.2 “Board” means the Board of Directors of the Company.

     5.3 “Change in Control” means one or more of the following events:

          (a) There is consummated a sale or other disposition of all or substantially of assets of the
Company (other than a sale to an entity where at least fifty percent (50%) of the combined voting
power of the voting securities of such entity are owned by the stockholders of the Company in
substantially the same proportions as their ownership of the Company immediately prior to such
sale).

          (b) Any person, entity or group (other than the Company, a subsidiary or affiliate of the
Company, or a Company employee benefit plan, including any trustee of such plan acting as trustee)
becomes the beneficial owner, directly or indirectly, of securities of the Company representing
fifty percent (50%) or more of the combined voting power of the Company’s then outstanding
securities other than by virtue of a merger, consolidation or similar transaction.

          (c) There is consummated a merger, consolidation or similar transaction involving (directly or
indirectly) the Company and, immediately after the consummation of such transaction, the
stockholders immediately prior to the consummation of such transaction do not own, directly or
indirectly, outstanding voting securities representing more than fifty percent (50%) of the
combined outstanding voting power of the surviving entity in such transaction or more than fifty
percent (50%) of the combined outstanding voting power of the parent of the surviving entity in
such transaction.

     5.4 “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

     5.5 “Code” means the Internal Revenue Code of 1986, as amended.

     5.6 “Company” means Onyx Pharmaceuticals, Inc. or, following a Change in Control, the
surviving entity resulting from such transaction, or any subsequent surviving entity resulting from
any subsequent Change in Control.

     5.7 “Constructive Termination” means that Executive voluntarily terminates employment
resulting in a “separation from service” with the Company within the meaning of Treasury Regulation
Section 1.409A-1(h) within a period of ninety (90) days after Executive provides written notice to
the Company of the initial occurrence of one of the following actions taken without Executive’s
written consent (which written notice must reasonably specify the particulars of the action);
provided, however, following the receipt of notice by the Company, the Company shall have a period
of thirty (30) days during which to remedy the action giving rise to a Constructive Termination;
provided, further, if such action is remedied by the Company during such period, Constructive
Termination shall be deemed not to have occurred:

 6.

 

          (a) the assignment to Executive of duties or responsibilities that result in a material
diminution in Executive’s function as in effect immediately prior to the effective date of the
Change in Control, which diminution shall include the failure of the entity resulting from the
Change in Control to employ Executive as its Chief Executive Officer;

          (b) a material reduction in Executive’s Base Salary, annual target bonus, or aggregate
employee benefits;

          (c) a change in Executive’s business location of more than thirty-five (35) miles from the
business location immediately prior to the effective date of the Change in Control;

          (d) a material breach by the Company of any provision of this Agreement; or

          (e) any failure by the Company to obtain the assumption of this Agreement by any successor or
assign of the Company, such assumption to be effective no later than the effective date of a Change
in Control.

     5.8 “Covered Termination” means an Involuntary Termination Without Cause or a Constructive
Termination, either of which occurs within twenty-four (24) months following the effective date of
a Change in Control.

     5.9 “Involuntary Termination Without Cause” means Executive’s dismissal or discharge for
reasons other than Cause resulting in a “separation from service” with the Company within the
meaning of Treasury Regulation Section 1.409A-1(h). For this purpose, “Cause” means that, in the
reasonable determination of the Company, Executive (i) has committed an intentional act or acted
with gross negligence that has materially injured the business of the Company; (ii) has
intentionally refused or failed to follow lawful and reasonable directions of the Board or the
appropriate individual to whom Executive reports, after Executive is provided a reasonable
opportunity to be heard on the issue by the Board; (iii) has willfully and habitually neglected
Executive’s duties for the Company; or (iv) has been convicted of a felony involving moral
turpitude that is likely to inflict or has inflicted material injury on the business of the
Company. Notwithstanding the foregoing, Cause shall not exist based on conduct described in clause
(ii) or (iii) unless the conduct described in such clause has not been cured within thirty (30)
days following Executive’s receipt of written notice from the Company specifying the particulars of
the conduct constituting Cause.

ARTICLE 6

General Provisions

     6.1 Employment Status. This Agreement does not constitute a contract of employment or impose
upon Executive any obligation to remain as an employee, or impose on the Company any obligation (i)
to retain Executive as an employee, (ii) to change the status of Executive as an at-will employee
or (iii) to change the Company’s policies regarding termination of employment.

 7.

 

     6.2 Notices. Any notices provided hereunder must be in writing, and such notices or any other
written communication shall be deemed effective upon the earlier of personal delivery (including
personal delivery by facsimile) or the third day after mailing by first class mail, to the Company
at its primary office location and to Executive at Executive’s address as listed in the Company’s
payroll records. Any payments made by the Company to Executive under the terms of this Agreement
shall be delivered to Executive either in person or at the address as listed in the Company’s
payroll records.

     6.3 Severability. Whenever possible, each provision of this Agreement will be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law
or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any
other provision or any other jurisdiction, but this Agreement will be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable provisions had never
been contained herein.

     6.4 Waiver. If either party should waive any breach of any provisions of this Agreement, he
or it shall not thereby be deemed to have waived any preceding or succeeding breach of the same or
any other provision of this Agreement.

     6.5 Arbitration. Unless otherwise prohibited by law or specified below, all disputes, claims
and causes of action, in law or equity, arising from or relating to this Agreement or its
enforcement, performance, breach, or interpretation, including but not limited to statutory claims,
shall be resolved solely and exclusively by final and binding arbitration held in San Francisco,
California through JAMS, Inc. (“JAMS”) under the then existing JAMS employment law arbitration
rules. However, nothing in this Section 6.5 is intended to prevent either party from obtaining
injunctive relief in court to prevent irreparable harm pending the conclusion of any such
arbitration. By agreeing to this arbitration procedure, both Executive and the Company waive the
right to resolve any such dispute through a trial by jury or judge or administrative proceeding.
The arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of
the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a
written arbitration decision, to include the arbitrator’s essential findings and conclusions and a
statement of the award. The arbitrator shall be authorized to award any or all remedies that
Executive or the Company would be entitled to seek in a court of law. The Company shall pay all
JAMS’ arbitration fees in excess of the amount of court fees that would be required if the dispute
were decided in a court of law. Each party in any such arbitration shall be responsible for its
own attorneys’ fees, costs and necessary disbursement; provided, however, that in the event one
party refuses to arbitrate and the other party seeks to compel arbitration by court order, if such
other party prevails, it shall be entitled to recover reasonable attorneys’ fees, costs and
necessary disbursements. Pursuant to California Civil Code Section 1717, each party warrants that
it was represented by counsel in the negotiation and execution of this Agreement, including the
attorneys’ fees provision herein.

     6.6 Complete Agreement. This Agreement, including Exhibit A, Exhibit B and Exhibit C,
constitutes the entire agreement between Executive and the Company and is the complete, final, and
exclusive embodiment of their agreement with regard to this subject matter.

 8.

 

It is entered into without reliance on any promise or representation other than those
expressly contained herein.

     6.7 Amendment or Termination of Agreement; Continuation of Agreement. This Agreement may be
changed or terminated only upon the mutual written consent of the Company and Executive. The
written consent of the Company to a change or termination of this Agreement must be signed by an
executive officer of the Company (other than Executive) after such change or termination has been
approved by the Board. Unless so terminated, this Agreement shall continue in effect for as long as
Executive continues to be employed by the Company or by any surviving entity following any Change
in Control. In other words, if, following a Change in Control, Executive continues to be employed
by the surviving entity without a Covered Termination and the surviving entity then undergoes a
Change in Control, following which Executive is terminated by the subsequent surviving entity in a
Covered Termination, then Executive shall receive the benefits described in Article 2 hereof.

     6.8 Counterparts. This Agreement may be executed in separate counterparts, any one of which
need not contain signatures of more than one party, but all of which taken together will constitute
one and the same Agreement. Signatures transmitted via facsimile shall be deemed equivalent to
originals.

     6.9 Headings. The headings of the Articles and Sections hereof are inserted for convenience
only and shall not be deemed to constitute a part hereof nor to affect the meaning thereof.

     6.10 Successors and Assigns. This Agreement is intended to bind and inure to the benefit of
and be enforceable by Executive, and the Company, and any surviving entity resulting from a Change
in Control and upon any other person who is a successor by merger, acquisition, consolidation or
otherwise to the business formerly carried on by the Company, and their respective successors,
assigns, heirs, executors and administrators, without regard to whether or not such person actively
assumes any rights or duties hereunder; provided, however, that Executive may not assign any duties
hereunder and may not assign any rights hereunder without the written consent of the Company, which
consent shall not be withheld unreasonably.

     6.11 Choice of Law. All questions concerning the construction, validity and interpretation of
this Agreement will be governed by the law of the State of California, without regard to such
state’s conflict of laws rules.

     6.12 Construction of Agreement. In the event of a conflict between the text of the Agreement
and any summary, description or other information regarding the Agreement, the text of the
Agreement shall control.

     6.13 Circular 230 Disclaimer. The following disclaimer is provided in accordance with the
Internal Revenue Service’s Circular 230 (21 C.F.R. Part 10). Any tax advice contained in this
Agreement is intended to be preliminary, for discussion purposes only, and not final. Any such
advice is not intended to be used for marketing, promoting or recommending any transaction or for
the use of any person in connection with the preparation of any tax return.

 9.

 

Accordingly, this advice is not intented or written to be used, and it can not be used, by
any person for the purpose of avoiding tax penalties that may be imposed on such person.

     In Witness Whereof, the parties have executed this Agreement on the Effective Date
written above.

	 	 	 	 	 	 	 
	Onyx
	 	Pharmaceuticals, Inc.
	 	 	 	Executive
	 
	By:
	 	/s/ Hollings C. Renton
	 	 	 	/s/ N. Anthony Coles
	 

	 	 
	 	 	 	 
	 

	 	     Hollings C. Renton
	 	 	 	     N. Anthony Coles
	 

	 	     Chief Executive Officer	 	 	 	 

	 	 	 
	Exhibit A:

	 	Release (Individual Termination – Age 40 or Older)
	Exhibit B:

	 	Release (Individual and Group Termination – Under Age 40)
	Exhibit C:

	 	Release (Group Termination – Age 40 or Older)

 10.

 

Exhibit A

RELEASE

(Individual Termination – Age 40 or Older)

     Certain capitalized terms used in this Release are defined in the Executive Change in Control
Severance Benefits Agreement (the “Agreement”) which I have executed and of which this Release is a
part.

     I hereby acknowledge and reaffirm my continuing obligations under the Company’s proprietary
information and inventions agreement that I signed in connection with my employment.

     I acknowledge that I have read and understand Section 1542 of the California Civil Code which
reads as follows: “A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if known by him or
her must have materially affected his or her settlement with the debtor.” I hereby expressly waive
and relinquish all rights and benefits under that section and any law of any jurisdiction of
similar effect with respect to my release of any claims, including but not limited to my release of
unknown and unsuspected claims.

     Except as otherwise set forth in this Release, in exchange for the benefits I will receive
under the Agreement which I am not otherwise entitled to receive, and as required by the Agreement,
I hereby generally and completely release, acquit and forever discharge the Company and its parent,
subsidiary, and affiliated entities, along with its and their predecessors and successors and their
respective directors, officers, employees, shareholders, stockholders, partners, agents, attorneys,
insurers, affiliates and assigns (collectively, the “Released Parties”), of and from any and all
claims, liabilities and obligations, both known and unknown, that arise from or are in any way
related to events, acts, conduct, or omissions occurring at any time prior to and including the
date that I sign this Release (collectively, the “Released Claims”). The Released Claims include,
but are not limited to: (a) all claims arising out of or in any way related to my employment with
the Company, or the termination of that employment; (b) all claims related to my compensation or
benefits from the Company, including salary, bonuses, commissions, other incentive compensation,
vacation pay and the redemption thereof, expense reimbursements, severance payments, fringe
benefits, stock, stock options, or any other ownership or equity interests in the Company; (c) all
claims for breach of contract, wrongful termination, and breach of the implied covenant of good
faith and fair dealing (including but not limited to claims based on or arising from the
Agreement); (d) all tort claims, including but not limited to claims for fraud, defamation,
emotional distress, and discharge in violation of public policy; and (e) all federal, state, and
local statutory claims, including but not limited to claims for discrimination, harassment,
retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964
(as amended), the federal Americans with Disabilities Act of 1990 (as amended), the federal Age
Discrimination in Employment Act of 1967 (as amended) (the “ADEA”), and the California Fair
Employment and Housing Act (as amended). Notwithstanding the foregoing, the following are not
included in the Released Claims (the “Excluded Claims”): (a) any rights or claims for
indemnification I may have pursuant to any written indemnification

 1.

 

agreement with the Company to which I am a party, the charter, bylaws, or under applicable law;
(b) any rights which are not waivable as a matter of law; or (c) any claims for breach of the
Agreement arising after the date that I sign the Release. In addition, nothing in this Release
prevents me from filing, cooperating with, or participating in any investigation or proceeding
before the Equal Employment Opportunity Commission, the Department of Labor, the California
Department of Fair Employment and Housing, or any other government agency, except that I hereby
waive my right to any monetary benefits in connection with any such claim, charge, investigation or
proceeding. I hereby represent and warrant that, other than the Excluded Claims, I am not aware of
any claims I have or might have against any of the Released Parties that are not included in the
Released Claims.

     I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have
under the ADEA, that the consideration given for the Release is in addition to anything of value to
which I was already entitled, and that I have been advised by this writing, as required by the
ADEA, that: (a) my release of claims does not apply to any rights or claims that arise after the
date I sign this Release; (b) I should consult with an attorney prior to signing this Release
(although I may choose voluntarily not to do so); (c) I have twenty-one (21) days to consider this
Release (although I may choose voluntarily to sign it sooner); (d) I have seven (7) days following
the date I sign this Release to revoke it by providing written notice of my revocation to the
Chairman of the Company’s Board of Directors; and (e) this Release will not be effective until the
date upon which the revocation period has expired unexercised, which will be the eighth day after I
sign this Release (the “Effective Date”).

     I hereby represent that I have been paid all compensation owed and for all hours worked, have
received all the leave and leave benefits and protections for which I am eligible, pursuant to the
Family and Medical Leave Act or otherwise, and have not suffered any on-the-job injury for which I
have not already filed a workers’ compensation claim.

     In addition to the above: (a) I agree not to disparage the Company or any of the other
Released Parties in any manner likely to be harmful to its or their business, business reputations,
or personal reputations; (b) I agree to return, no later than my employment termination date, all
Company property, documents, information, and materials, including but not limited to any and all
embodiments (e.g., notes, computer-recorded information) of the Company’s proprietary or
confidential information (and all reproductions thereof, in whole or in part) in my possession or
control; and (c) I will not voluntarily provide assistance, information or advice, directly or
indirectly (including through agents or attorneys), to any person or entity in connection with any
claim or cause of action of any kind brought against the Company or its officers, directors, or
affiliated entities, nor induce or encourage any person or entity to bring such claims; provided
that it shall not violate this covenant if I testify truthfully when required to do so by a valid
subpoena or under similar compulsion of law.

	 	 	 	 	 
	 	 	[Executive]
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

 2.

 

Exhibit B

RELEASE

(Individual and Group Termination – Under Age 40)

     Certain capitalized terms used in this Release are defined in the Executive Change in Control
Severance Benefits Agreement (the “Agreement”) which I have executed and of which this Release is a
part.

     I hereby acknowledge and reaffirm my continuing obligations under the Company’s proprietary
information and inventions agreement that I signed in connection with my employment.

     I acknowledge that I have read and understand Section 1542 of the California Civil Code which
reads as follows: “A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if known by him or
her must have materially affected his or her settlement with the debtor.” I hereby expressly waive
and relinquish all rights and benefits under that section and any law of any jurisdiction of
similar effect with respect to my release of any claims, including but not limited to my release of
unknown and unsuspected claims.

     Except as otherwise set forth in this Release, in exchange for the benefits I will receive
under the Agreement which I am not otherwise entitled to receive, and as required by the Agreement,
I hereby generally and completely release, acquit and forever discharge the Company and its parent,
subsidiary, and affiliated entities, along with its and their predecessors and successors and their
respective directors, officers, employees, shareholders, stockholders, partners, agents, attorneys,
insurers, affiliates and assigns (collectively, the “Released Parties”), of and from any and all
claims, liabilities and obligations, both known and unknown, that arise from or are in any way
related to events, acts, conduct, or omissions occurring at any time prior to and including the
date that I sign this Release (collectively, the “Released Claims”). The Released Claims include,
but are not limited to: (a) all claims arising out of or in any way related to my employment with
the Company, or the termination of that employment; (b) all claims related to my compensation or
benefits from the Company, including salary, bonuses, commissions, other incentive compensation,
vacation pay and the redemption thereof, expense reimbursements, severance payments, fringe
benefits, stock, stock options, or any other ownership or equity interests in the Company; (c) all
claims for breach of contract, wrongful termination, and breach of the implied covenant of good
faith and fair dealing (including but not limited to claims based on or arising from the
Agreement); (d) all tort claims, including but not limited to claims for fraud, defamation,
emotional distress, and discharge in violation of public policy; and (e) all federal, state, and
local statutory claims, including but not limited to claims for discrimination, harassment,
retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964
(as amended), the federal Americans with Disabilities Act of 1990 (as amended), and the California
Fair Employment and Housing Act (as amended). Notwithstanding the foregoing, the following are not
included in the Released Claims (the “Excluded Claims”): (a) any rights or claims for
indemnification I may have pursuant to any written indemnification agreement with the Company to
which I am a party, the charter, bylaws, or under applicable

 1.

 

law; (b) any rights which are not waivable as a matter of law; or (c) any claims for breach of the
Agreement arising after the date that I sign the Release. In addition, nothing in this Release
prevents me from filing, cooperating with, or participating in any investigation or proceeding
before the Equal Employment Opportunity Commission, the Department of Labor, the California
Department of Fair Employment and Housing, or any other government agency, except that I hereby
waive my right to any monetary benefits in connection with any such claim, charge, investigation or
proceeding. I hereby represent and warrant that, other than the Excluded Claims, I am not aware of
any claims I have or might have against any of the Released Parties that are not included in the
Released Claims.

     I acknowledge that the consideration given under the Agreement for the waiver and release in
the preceding paragraph hereof is in addition to anything of value to which I was already entitled.
I further acknowledge that I have been advised by this writing that: (a) my waiver and release do
not apply to any rights or claims that may arise on or after the date I sign this Release; (b) I
have the right to consult with an attorney prior to signing this Release (although I may choose
voluntarily not to do so); and (C) I have twenty-one (21) days to consider this Release (although I
may choose voluntarily to sign this Release earlier). This Release will be effective as of the
date that I sign and return it to the Company (the “Effective Date”).

     I hereby represent that I have been paid all compensation owed and for all hours worked, have
received all the leave and leave benefits and protections for which I am eligible, pursuant to the
Family and Medical Leave Act or otherwise, and have not suffered any on-the-job injury for which I
have not already filed a workers’ compensation claim.

     In addition to the above: (a) I agree not to disparage the Company or any of the other
Released Parties in any manner likely to be harmful to its or their business, business reputations,
or personal reputations; (b) I agree to return, no later than my employment termination date, all
Company property, documents, information, and materials, including but not limited to any and all
embodiments (e.g., notes, computer-recorded information) of the Company’s proprietary or
confidential information (and all reproductions thereof, in whole or in part) in my possession or
control; and (c) I will not voluntarily provide assistance, information or advice, directly or
indirectly (including through agents or attorneys), to any person or entity in connection with any
claim or cause of action of any kind brought against the Company or its officers, directors, or
affiliated entities, nor induce or encourage any person or entity to bring such claims; provided
that it shall not violate this covenant if I testify truthfully when required to do so by a valid
subpoena or under similar compulsion of law.

	 	 	 	 	 
	 	 	[Executive]
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

 2.

 

Exhibit C

RELEASE

(Group Termination – Age 40 or Older)

     Certain capitalized terms used in this Release are defined in the Executive Change in Control
Severance Benefits Agreement (the “Agreement”) which I have executed and of which this Release is a
part.

     I hereby acknowledge and reaffirm my continuing obligations under the Company’s proprietary
information and inventions agreement that I signed in connection with my employment.

     I acknowledge that I have read and understand Section 1542 of the California Civil Code which
reads as follows: “A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if known by him or
her must have materially affected his or her settlement with the debtor.” I hereby expressly waive
and relinquish all rights and benefits under that section and any law of any jurisdiction of
similar effect with respect to my release of any claims, including but not limited to my release of
unknown and unsuspected claims.

     Except as otherwise set forth in this Release, in exchange for the benefits I will receive
under the Agreement which I am not otherwise entitled to receive, and as required by the Agreement,
I hereby generally and completely release, acquit and forever discharge the Company and its parent,
subsidiary, and affiliated entities, along with its and their predecessors and successors and their
respective directors, officers, employees, shareholders, stockholders, partners, agents, attorneys,
insurers, affiliates and assigns (collectively, the “Released Parties”), of and from any and all
claims, liabilities and obligations, both known and unknown, that arise from or are in any way
related to events, acts, conduct, or omissions occurring at any time prior to and including the
date that I sign this Release (collectively, the “Released Claims”). The Released Claims include,
but are not limited to: (a) all claims arising out of or in any way related to my employment with
the Company, or the termination of that employment; (b) all claims related to my compensation or
benefits from the Company, including salary, bonuses, commissions, other incentive compensation,
vacation pay and the redemption thereof, expense reimbursements, severance payments, fringe
benefits, stock, stock options, or any other ownership or equity interests in the Company; (c) all
claims for breach of contract, wrongful termination, and breach of the implied covenant of good
faith and fair dealing (including but not limited to claims based on or arising from the
Agreement); (d) all tort claims, including but not limited to claims for fraud, defamation,
emotional distress, and discharge in violation of public policy; and (e) all federal, state, and
local statutory claims, including but not limited to claims for discrimination, harassment,
retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964
(as amended), the federal Americans with Disabilities Act of 1990 (as amended), the federal Age
Discrimination in Employment Act of 1967 (as amended) (the “ADEA”), and the California Fair
Employment and Housing Act (as amended). Notwithstanding the foregoing, the following are not
included in the Released Claims (the “Excluded Claims”): (a) any rights or claims for
indemnification I may have pursuant to any written indemnification

 1.

 

agreement with the Company to which I am a party, the charter, bylaws, or under applicable law;
(b) any rights which are not waivable as a matter of law; or (c) any claims for breach of the
Agreement arising after the date that I sign the Release. In addition, nothing in this Release
prevents me from filing, cooperating with, or participating in any investigation or proceeding
before the Equal Employment Opportunity Commission, the Department of Labor, the California
Department of Fair Employment and Housing, or any other government agency, except that I hereby
waive my right to any monetary benefits in connection with any such claim, charge, investigation or
proceeding. I hereby represent and warrant that, other than the Excluded Claims, I am not aware of
any claims I have or might have against any of the Released Parties that are not included in the
Released Claims.

     I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have
under the ADEA, that the consideration given for the Release is in addition to anything of value to
which I was already entitled, and that I have been advised by this writing, as required by the
ADEA, that: (a) my release of claims does not apply to any rights or claims that arise after the
date I sign this Release; (b) I should consult with an attorney prior to signing this Release
(although I may choose voluntarily not to do so); (c) I have forty-five (45) days to consider this
Release (although I may choose voluntarily to sign it sooner); (d) I have seven (7) days following
the date I sign this Release to revoke it by providing written notice of my revocation to the
Chairman of the Company’s Board of Directors; and (e) this Release will not be effective until the
date upon which the revocation period has expired unexercised, which will be the eighth day after I
sign this Release (the “Effective Date”).

     In addition, I acknowledge that I have received with this Release a written disclosure as
required under Title 29 U.S. Code Section 626(f)(1)(H)), which includes information concerning the
job titles and ages of all employees who were terminated as part of this group termination, the
criteria used by the Company in selecting employees for the group termination, and the job titles
and ages of all employees of the Company in the same job classification or organizational unit who
were not terminated as part of this group termination.

     I hereby represent that I have been paid all compensation owed and for all hours worked, have
received all the leave and leave benefits and protections for which I am eligible, pursuant to the
Family and Medical Leave Act or otherwise, and have not suffered any on-the-job injury for which I
have not already filed a workers’ compensation claim.

 2.

 

     In addition to the above: (a) I agree not to disparage the Company or any of the other
Released Parties in any manner likely to be harmful to its or their business, business reputations,
or personal reputations; (b) I agree to return, no later than my employment termination date, all
Company property, documents, information, and materials, including but not limited to any and all
embodiments (e.g., notes, computer-recorded information) of the Company’s proprietary or
confidential information (and all reproductions thereof, in whole or in part) in my possession or
control; and (c) I will not voluntarily provide assistance, information or advice, directly or
indirectly (including through agents or attorneys), to any person or entity in connection with any
claim or cause of action of any kind brought against the Company or its officers, directors, or
affiliated entities, nor induce or encourage any person or entity to bring such claims; provided
that it shall not violate this covenant if I testify truthfully when required to do so by a valid
subpoena or under similar compulsion of law.

	 	 	 	 	 
	 	 	[Executive]
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

 3.

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