Document:

Exhibit 10.1

PONIARD
PHARMACEUTICALS, INC.

KEY EXECUTIVE SEVERANCE AGREEMENT (VP)

This Key Executive
Severance Agreement (VP) (this “Agreement”), dated
as of June 23, 2006, is entered into by and between PONIARD
PHARMACEUTICALS, INC., a Washington corporation (as supplemented by Section 10,
the “Company”), and Caroline M. Loewy (the “Executive”).

The Board of Directors of
the Company (the “Board”) has determined that
it is in the best interests of the Company and its shareholders to ensure that
the Company will have the continued dedication of the Executive,
notwithstanding the fact that the Executive does not have any form of
traditional employment contract or other assurance of job security. The Board
believes it is imperative to diminish any distraction of the Executive arising
from the personal uncertainty and insecurity that arises in the absence of any
assurance of job security by providing the Executive with reasonable
compensation and benefit arrangements in the event of termination of the
Executive’s employment by the Company under certain defined circumstances.

In order to accomplish
these objectives, the Board has caused the Company to enter into this
Agreement.

1.             Term

The initial term of this
Agreement (the “Initial Term”)
shall be for a period of one (1) year from the date of this Agreement as
first appearing; provided, however, that this Agreement shall automatically
renew for successive additional one (1) year periods (“Renewal Terms”), unless notice of
nonrenewal is given by either party to the other party at least nine (9) months
prior to the end of the Initial Term or any Renewal Term, and provided further
that if a Change of Control (as defined in the Change of Control Agreement
referenced in Section 16 hereof) occurs during the Term, the Term shall
automatically extend for the duration of the Employment Period (as defined in
the Change of Control Agreement). The “Term” of
this Agreement shall be the Initial Term plus all Renewal Terms and, if
applicable, the duration of the Employment Period. At the end of the Term, this
Agreement shall terminate without further action by either the Company or the
Executive.

2.             Employment

The Executive and the
Company acknowledge that, except as may otherwise be provided under any other
written agreement between the Executive and the Company, the employment of the
Executive by the Company or by any affiliated or successor company is “at will”
and may be terminated by either the Executive or the Company or its affiliated
companies at any time with or without cause, subject to the termination
payments prescribed herein.

 

 

3.             Attention and Effort

During any period of time
that the Executive remains in the employ of the Company, and excluding any
periods of vacation and sick leave to which the Executive is entitled, the
Executive will devote all her productive time, ability, attention and effort to
the business and affairs of the Company and the discharge of the
responsibilities assigned to her hereunder, and will seek to perform faithfully
and efficiently such responsibilities. It shall not be a violation of this
Agreement for the Executive to (a) serve on corporate, civic or charitable
boards or committees, (b) deliver lectures, fulfill speaking engagements
or teach at educational institutions, (c) manage personal investments, or (d) engage
in activities permitted by the policies of the Company or as specifically
permitted by the Company, so long as such activities do not significantly
interfere with the performance of the Executive’s responsibilities in
accordance with this Agreement. It is expressly understood and agreed that to
the extent any such activities have been conducted by the Executive prior to
the Term, the continued conduct of such activities (or the conduct of
activities similar in nature and scope thereto) during the Term shall not
thereafter be deemed to interfere with the performance of the Executive’s
responsibilities to the Company.

4.             Termination

During the Term,
employment of the Executive may be terminated as follows, but, in any case, the
nondisclosure provisions set forth in Section 7 hereof shall survive the
termination of this Agreement and the termination of the Executive’s employment
with the Company:

4.1          By the Company or the Executive

At any time during the
Term, the Company may terminate the employment of the Executive with or without
Cause (as defined below), and the Executive may terminate her employment for
Good Reason (as defined below) or for any reason, upon giving Notice of
Termination (as defined below).

4.2          Automatic Termination

This Agreement and the
Executive’s employment shall terminate automatically upon the death or Total
Disability of the Executive. The term “Total Disability”
as used herein shall mean the Executive’s inability (with such accommodation as
may be required by law and which places no undue burden on the Company), as
determined by a physician selected by the Company and acceptable to the
Executive, to perform the Executive’s essential duties for a period or periods
aggregating twelve (12) weeks in any three hundred sixty-five (365) day period
as a result of physical or mental illness, loss of legal capacity or any other
cause beyond the Executive’s control, unless the Executive is granted a leave
of absence by the Board.

 2
 

 

 

4.3          Notice of Termination

Any termination by the
Company or by the Executive during the Term shall be communicated by Notice of
Termination to the other party given in accordance with Section 9 hereof. The
term “Notice of Termination” shall
mean a written notice that (a) indicates the specific termination
provision in this Agreement relied upon and (b) to the extent applicable,
sets forth in reasonable detail the facts and circumstances claimed to provide
a basis for termination of the Executive’s employment under the provision so
indicated. The failure by the Executive or the Company to set forth in the
Notice of Termination any fact or circumstance that contributes to a showing of
Good Reason or Cause shall not waive any right of the Executive or the Company
hereunder or preclude the Executive or the Company from asserting such fact or
circumstance in enforcing the Executive’s or the Company’s rights hereunder.

4.4          Date of Termination

“Date
of Termination” means (a) if the Executive’s employment is
terminated by reason of death, the last day of the calendar month in which the
Executive’s death occurs, (b) if the Executive’s employment is terminated
by reason of Total Disability, immediately upon a determination by the
Company of the Executive’s Total Disability, and (c) in all other cases,
ten (10) days after the date of personal delivery or mailing of the Notice
of Termination. The Executive’s employment and performance of services will
continue during such ten (10) day period; provided, however, that the
Company may, upon notice to the Executive and without reducing the Executive’s
compensation during such period, excuse the Executive from any or all of her
duties during such period.

5.             Termination Payments

In the event of
termination of the Executive’s employment during the Term, all compensation and
benefits shall terminate, except as specifically provided in this Section 5.

5.1          Termination by the Company Other Than
for Cause or by the Executive for Good Reason

If during the Term the
Company terminates the Executive’s employment other than for Cause or the
Executive terminates her employment for Good Reason, the Executive shall be
entitled to:

(a)           receive payment of
the following accrued obligations (the “Accrued Obligations”):

(i)            the Executive’s then current annual
base salary through the Date of Termination to the extent not theretofore paid;
and

 3
 

 

 

(ii)           any compensation previously deferred
by the Executive (together with accrued interest or earnings thereon, if any)
and any accrued vacation pay that would be payable under the Company’s standard
policy, in each case to the extent not theretofore paid;

(b)           for nine (9) months after the
Date of Termination or until the Executive qualifies for comparable medical and
dental insurance benefits from another employer, whichever occurs first, the
Company shall pay the Executive’s premiums for health insurance benefit
continuation for the Executive and her family members, if applicable, that the
Company provides to the Executive under the provisions of the federal
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), to the extent that the Company would have paid
such premiums had the Executive remained employed by the Company (such
continued payment is hereinafter referred to as “COBRA
Continuation”); and

(c)           an amount as severance pay equal to
seventy five percent (75%) of the Executive’s then current annual base salary
for the fiscal year in which the Date of Termination occurs, subject to payment
as set forth in Sections 5.5 and 5.9 hereof.

5.2          Termination for Cause or Other Than
for Good Reason

If during the Term the
Executive’s employment shall be terminated by the Company for Cause or by the
Executive for other than Good Reason, this Agreement shall terminate without
further obligation on the part of the Company to the Executive, other than the
Company’s obligation to pay the Executive the Accrued Obligations to the extent
theretofore unpaid.

5.3          Expiration of Term

In the event the
Executive’s employment is not terminated prior to expiration of the Term, this
Agreement shall terminate without further obligation on the part of the Company
to the Executive.

5.4          Termination Because of Death or Total
Disability

If the Executive’s
employment is terminated during the Term by reason of the Executive’s death or
Total Disability, this Agreement shall terminate automatically without further
obligation on the part of the Company to the Executive or her legal
representatives under this Agreement, other than the Company’s obligation to
pay the Executive the Accrued Obligations (which shall be paid to the Executive’s
estate or beneficiary, as applicable in the case of the Executive’s death) and
to provide COBRA Continuation.

5.5          Payment Schedule

All payments of Accrued
Obligations, or any portion thereof payable pursuant to this Section 5,
shall be made to the Executive within ten (10) working days of the Date of
Termination. Any severance payments payable to the Executive pursuant to Section 5.1(c) shall
be made to the Executive in the form of salary continuation, payable at normal
payroll intervals during the nine (9) month period following the Date of
Termination (“Payment Period”).

 4
 

 

 

5.6          Cause

For purposes of this
Agreement, “Cause” means cause given by
the Executive to the Company and shall include, without limitation, the
occurrence of one or more of the following events:

(a)           a clear refusal to carry out any
material lawful duties of the Executive or any directions of the Board or
senior management of the Company reasonably consistent with those duties;

(b)           persistent failure to carry out any
lawful duties of the Executive or any directions of the Board or senior
management reasonably consistent with those duties; provided, however, that the
Executive has been given reasonable notice and opportunity to correct any such
failure;

(c)           violation by the Executive of a state
or federal criminal law involving the commission of a crime against the Company
or any other criminal act involving moral turpitude;

(d)           current abuse by the Executive of
alcohol or controlled substances; deception, fraud, misrepresentation or
dishonesty by the Executive; or any incident materially compromising the
Executive’s reputation or ability to represent the Company with investors,
customers or the public; or

(e)           any other material violation of any
provision of this Agreement by the Executive, subject to the notice and
opportunity to cure requirements of Section 8 hereof.

5.7          Good Reason

For purposes of this
Agreement, “Good Reason” means:

(a)           reduction of the Executive’s annual
base salary to a level below the level in effect on the date of this Agreement,
regardless of any change in the Executive’s duties or responsibilities;

(b)           the assignment to the Executive of
any duties materially inconsistent with the Executive’s position, authority,
duties or responsibilities or any other action by the Company the results in a
material diminution in such position, authority, duties or responsibilities,
excluding for this purpose an isolated and inadvertent action not taken in bad
faith and that is remedied by the Company promptly after receipt of notice
thereof given by the Executive;

 5
 

 

 

(c)           the Company’s requiring the Executive
to be based at any office or location more than fifty (50) miles from the city
in which the Executive will be employed by the Company, i.e., San Francisco,
California or Seattle, Washington;

(d)           any failure by the Company to comply
with and satisfy Section 10 hereof, provided, however, that the Company’s
successor has received at least ten (10) days’ prior written notice from
the Company or the Executive of the requirements of Section 10 hereof; or

(e)           any other material violation of any
provision of this Agreement by the Company, subject to the notice and
opportunity to cure requirements of Section 8 hereof.

5.8          General Release of Claims

As a condition to the
payment contemplated by Section 5.1(c), the Executive shall execute a
general release of claims against the Company in a form satisfactory to the
Company in its sole discretion. By way of example and not limitation, the
general release of claims will include any claims for wages, bonuses,
employment benefits, or damages of any kind whatsoever, arising out of any
contracts, express or implied, any covenant of good faith and fair dealing,
express or implied, any theory of wrongful discharge, any legal restriction on
the Company’s right to terminate employment, or any federal, state or other
governmental statute or ordinance, including, without limitation, Title VII of
the Civil Rights Act of 1964, the federal Age Discrimination in Employment Act,
the Americans with Disabilities Act, the Family and Medical Leave Act, the
Washington Law Against Discrimination, or any other legal limitation on the
employment relationship.

5.9          Dispute regarding existence of Good
Reason for Termination

In the event the Company
disputes whether Good Reason existed for the Executive to terminate her
employment for Good Reason, the Company shall pay salary continuation as
provided in Section 5.5 until the earliest of (i) settlement by the
parties, (ii) determination by arbitration in accordance with Section 14
hereof that Good Reason did not exist, and (iii) completion of the
payments required by Section 5.5 and Section 5.1(c) hereof. If,
pursuant to Section 14 hereof, an arbitrator determines that Good Reason
did not exist, the arbitrator shall also decide whether the Executive had a
reasonable, good-faith basis for claiming that there was Good Reason to
terminate. If the arbitrator determines that there was not such a basis, the
Executive shall be obligated to repay promptly to the Company the salary
continuation payments; if the arbitrator determines that there was such a
basis, the Executive shall not be obligated to repay the salary continuation.

6.             Representations, Warranties and
Other Conditions

In order to induce the
Company to enter into this Agreement, the Executive represents and warrants to
the Company as follows:

 6
 

 

 

6.1          Health

The Executive is in good
health and knows of no physical or mental disability that, with any
accommodation that may be required by law and that places no undue burden on
the Company, would prevent her from fulfilling her obligations hereunder. The
Executive agrees, if the Company requests, to submit to reasonable periodic
medical examinations by a physician or physicians designated, paid for and
arranged by the Company. The Executive agrees that the examination’s medical
report shall be provided to the Company.

6.2          No Violation of Other Agreements

The Executive represents
that neither the execution nor the performance of this Agreement by the
Executive will violate or conflict in any way with any other agreement by which
the Executive may be bound.

7.             Nondisclosure; Return of Materials

7.1          Nondisclosure

Except as required by her
employment with the Company, the Executive will not, at any time during the
term of employment by the Company, or at any time thereafter, directly,
indirectly or otherwise, use, communicate, disclose, disseminate, lecture upon
or publish articles relating to any confidential, proprietary or trade secret
information without the prior written consent of the Company. The Executive
understands that the Company will be relying on this covenant in continuing the
Executive’s employment, paying her compensation, granting her any promotions or
raises, or entrusting her with any information that helps the Company compete
with others.

7.2          Return of Materials

All documents, records,
notebooks, notes, memoranda, drawings or other documents made or compiled by
the Executive at any time while employed by the Company, or in her possession,
including any and all copies thereof, shall be the property of the Company and
shall be held by the Executive in trust and solely for the benefit of the
Company, and shall be delivered to the Company by the Executive upon
termination of employment or at any other time upon request by the Company.

8.             Notice and Cure of Breach

Whenever a breach of this
Agreement by either party is relied upon as justification for any action taken
by the other party pursuant to any provision of this Agreement, other than
clause (a), (b), (c) or (d) of Section 5.6 hereof, before
such action is taken, the party asserting the breach of this Agreement shall
give the other party at least twenty (20) days’ prior written notice of the
existence and the nature of such breach before taking further action hereunder
and shall give the party purportedly in breach of this Agreement the
opportunity to correct such breach during the twenty (20) day period.

 7
 

 

 

9.             Form of Notice

Every notice required by
the terms of this Agreement shall be given in writing by serving the same upon
the party to whom it was addressed personally or by registered or certified
mail, return receipt requested, at the address set forth below or at such other
address as may hereafter be designated by notice given in compliance with the
terms hereof:

If to the Executive:                                               ____________________________
                                                                                                ____________________________
                                                                                                ____________________________

If to the Company:                                               Poniard
Pharmaceuticals, Inc.
                                                                                                300
Elliott Avenue West, Suite 500
                                                                                                Seattle,
Washington 98119
                                                                                                Attn:  Chief Executive Officer

With a copy to:                                                    Perkins
Coie LLP
                                                                                                1201
Third Avenue, 40th Floor
                                                                                                Seattle,
Washington 98101-3099
                                                                                                Attn:  James R. Lisbakken

Except as set forth in Section 4.4
hereof, if notice is mailed, such notice shall be effective upon mailing.

10.          Assignment

This Agreement is
personal to the Executive and shall not be assignable by the Executive.

The Company shall assign
to and require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all the business and/or
assets of the Company to assume expressly and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place. As used in this Agreement,
the “Company” shall mean Poniard Pharmaceuticals, Inc.
and any affiliated company or successor to its business and/or assets as
aforesaid that assumes and agrees to perform this Agreement by contract,
operation of law or otherwise; and as long as such successor assumes and agrees
to perform this Agreement, the termination of the Executive’s employment by one
such entity and the immediate hiring and continuation of the Executive’s
employment by the succeeding entity shall not be deemed to constitute a
termination or trigger any severance obligation under this Agreement. All the
terms and provisions of this Agreement shall be binding upon and inure to the
benefit of and be enforceable by the parties hereto and their respective
successors and permitted assigns.

 8
 

 

 

11.          Waivers

No delay or failure by
any party hereto in exercising, protecting or enforcing any of its rights,
titles, interests or remedies hereunder, and no course of dealing or
performance with respect thereto, shall constitute a waiver thereof. The
express waiver by a party hereto of any right, title, interest or remedy in a
particular instance or circumstance shall not constitute a waiver thereof in
any other instance or circumstance. All rights and remedies shall be cumulative
and not exclusive of any other rights or remedies.

12.          Amendments In Writing

No amendment,
modification, waiver, termination or discharge of any provision of this
Agreement, or consent to any departure therefrom by either party hereto, shall
in any event be effective unless the same shall be in writing, specifically
identifying this Agreement and the provision intended to be amended, modified,
waived, terminated or discharged and signed by the Company and the Executive,
and each such amendment, modification, waiver, termination or discharge shall
be effective only in the specific instance and for the specific purpose for
which given. No provision of this Agreement shall be varied, contradicted or
explained by any oral agreement, course of dealing or performance or any other
matter not set forth in an agreement in writing and signed by the Company and
the Executive.

13.          Applicable Law

This Agreement shall in
all respects, including all matters of construction, validity and performance,
be governed by, and construed and enforced in accordance with, the laws of the
State of Washington, without regard to any rules governing conflicts of
laws.

14.          Arbitration; Attorneys’ Fees

Except in connection with
enforcing Section 7 hereof, for which legal and equitable remedies may be
sought in a court of law, any dispute arising under this Agreement shall be
subject to arbitration. The arbitration proceeding shall be conducted in
accordance with the Commercial Arbitration Rules of the American
Arbitration Association (the “AAA Rules”) then
in effect, conducted by one (1) arbitrator either mutually agreed upon or
selected in accordance with the AAA Rules. The arbitration shall be conducted
in King County, Washington, under the jurisdiction of the Seattle office of the
American Arbitration Association. The arbitrator shall have authority only to
interpret and apply the provisions of this Agreement, and shall have no
authority to add to, subtract from or otherwise modify the terms of this
Agreement. Any demand for arbitration must be made within sixty (60) days of
the event(s) giving rise to the claim that this Agreement has been
breached. The arbitrator’s decision shall be final and binding, and each party
agrees to be bound by the arbitrator’s award, subject only to an appeal
therefrom in accordance with the laws of the State of Washington. Either party
may obtain judgment upon the arbitrator’s award in the Superior Court of King
County, Washington.

 9
 

 

 

If it becomes necessary
to pursue or defend any legal proceeding, whether in arbitration or court, in
order to resolve a dispute arising under this Agreement, the prevailing party
in any such proceeding shall be entitled to recover its reasonable costs and
attorneys’ fees.

15.          Severability

If any provision of this
Agreement shall be held invalid, illegal or unenforceable in any jurisdiction,
for any reason, including, without limitation, the duration of such provision,
its geographical scope or the extent of the activities prohibited or required
by it, then, to the full extent permitted by law, (a) all other provisions
hereof shall remain in full force and effect in such jurisdiction and shall be
liberally construed in order to carry out the intent of the parties hereto as
nearly as may be possible, (b) such invalidity, illegality or
unenforceability shall not affect the validity, legality or enforceability of
any other provision hereof, and (c) any court or arbitrator having
jurisdiction thereover shall have the power to reform such provision to the
extent necessary for such provision to be enforceable under applicable law.

16.          Coordination With Change of Control
Agreement

The Company and the
Executive are contemporaneously with this Agreement entering into a Change of
Control Agreement (the “Change of Control Agreement”),
which agreement provides for certain forms of severance and benefit payments in
the event of termination of Executive’s employment under certain defined
circumstances. This Agreement is in addition to the Change of Control
Agreement, providing certain assurances to the Executive in circumstances that the
Change of Control Agreement does not cover, and in no way supersedes or
nullifies the Change of Control Agreement. Nevertheless, it is possible that a
termination of employment by the Company or by the Executive may fall within
the scope of both agreements. In such event, payments made to the Executive
under Section 5.1 hereof shall be coordinated with payments made to the
Executive under Section 8.1 of the Change of Control Agreement as follows:

(a)           Accrued Obligations under this
Agreement need not be paid if paid under the Change of Control Agreement;

(b)           COBRA Continuation under this
Agreement need not be provided if provided under the Change of Control
Agreement; and

(c)           the severance payment required under Section 5.1(c) hereof
need not be paid during the first six (6) months of the Payment Period if
a severance payment is made under Section 8.1(d) of the Change of
Control Agreement; provided that the remaining one-third balance of the
severance payment required under Section 5.1(c) hereof shall be paid
during the Offset Period as provided herein.

 10
 

 

 

17.          Excess Parachute Payments

Unless provided by Section 8.8
of the Change of Control Agreement, if any portion of the payments or benefits
under this Agreement or any other agreement or benefit plan of the Company
(including stock options) would be characterized as an “excess parachute
payment” to the Executive under Section 280G of the Internal Revenue Code
of 1986, as amended (the “Code”), the Executive shall
be paid any excise tax that the Executive owes under Section 4999 of the
Code as a result of such characterization, such excise tax to be paid to the
Executive at least ten (10) days prior to the date that she is obligated
to make the excise tax payment. The determination of whether and to what extent
any payments or benefits would be “excess parachute payments” and the date by
which any excise tax shall be due, shall be determined in writing by recognized
tax counsel selected by the Company and reasonably acceptable to the Executive.

18.          Entire Agreement

Except as described in Section 16
hereof, this Agreement constitutes the entire agreement between the Company and
the Executive with respect to the subject matter hereof, and all prior or
contemporaneous oral or written communications, understandings or agreements
between the Company and the Executive with respect to such subject matter, are
hereby superseded and nullified in their entireties, except that the
Proprietary Information and Invention Agreement between the Executive and the
Company shall continue in full force and effect to the extent not superseded by
Section 10 hereof.

19.          Withholding

The Company may withhold
from any amounts payable under this Agreement such federal, state or local
taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

20.          Counterparts

This Agreement may be
executed in counterparts, each of which counterpart shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

IN WITNESS WHEREOF, the parties have executed and
entered into this Agreement effective on the date first set forth above.

	
  

  	
   

  	
  PONIARD PHARMACEUTICALS, INC.

  
	
   

  	
  By:

  	
  /s/ Gerald McMahon

  
	
   

  	
   

  	
  Name: Gerald McMahon

  
	
   

  	
   

  	
  Its: Chairman, CEO & President

  

 

 11
 

 

 

	
  

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Caroline M. Loewy

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Caroline M. Loewy

  

 

 12Exhibit 10.2

PONIARD PHARMACEUTICALS,
INC.

KEY EXECUTIVE SEVERANCE AGREEMENT (VP)

This Key Executive
Severance Agreement (VP) (this “Agreement”), dated
as of July 1, 2006, is entered into by and between PONIARD
PHARMACEUTICALS, INC. (formerly NeoRx Corporation), a Washington corporation
(as supplemented by Section 10, the “Company”), and Cheni
Kwok (the “Executive”).

The Board of
Directors of the Company (the “Board”) has
determined that it is in the best interests of the Company and its shareholders
to ensure that the Company will have the continued dedication of the Executive,
notwithstanding the fact that the Executive does not have any form of
traditional employment contract or other assurance of job security. The Board
believes it is imperative to diminish any distraction of the Executive arising
from the personal uncertainty and insecurity that arises in the absence of any
assurance of job security by providing the Executive with reasonable
compensation and benefit arrangements in the event of termination of the
Executive’s employment by the Company under certain defined circumstances.

In order to
accomplish these objectives, the Board has caused the Company to enter into
this Agreement.

1.             Term

The initial term
of this Agreement (the “Initial Term”)
shall be for a period of one (1) year from the date of this Agreement as
first appearing; provided, however, that this Agreement shall automatically
renew for successive additional one (1) year periods (“Renewal Terms”), unless notice of
nonrenewal is given by either party to the other party at least nine (9) months
prior to the end of the Initial Term or any Renewal Term, and provided further
that if a Change of Control (as defined in the Change of Control Agreement
referenced in Section 16 hereof) occurs during the Term, the Term shall
automatically extend for the duration of the Employment Period (as defined in
the Change of Control Agreement). The “Term” of
this Agreement shall be the Initial Term plus all Renewal Terms and, if
applicable, the duration of the Employment Period. At the end of the Term, this
Agreement shall terminate without further action by either the Company or the
Executive.

2.             Employment

The Executive and
the Company acknowledge that, except as may otherwise be provided under any
other written agreement between the Executive and the Company, the employment
of the Executive by the Company or by any affiliated or successor company is “at
will” and may be terminated by either the Executive or the Company or its
affiliated companies at any time with or without cause, subject to the
termination payments prescribed herein.

 

 

3.             Attention and Effort

During any period
of time that the Executive remains in the employ of the Company, and excluding
any periods of vacation and sick leave to which the Executive is entitled, the
Executive will devote all her productive time, ability, attention and effort to
the business and affairs of the Company and the discharge of the
responsibilities assigned to her hereunder, and will seek to perform faithfully
and efficiently such responsibilities. It shall not be a violation of this
Agreement for the Executive to (a) serve on corporate, civic or charitable
boards or committees, (b) deliver lectures, fulfill speaking engagements
or teach at educational institutions, (c) manage personal investments, or (d) engage
in activities permitted by the policies of the Company or as specifically
permitted by the Company, so long as such activities do not significantly
interfere with the performance of the Executive’s responsibilities in
accordance with this Agreement. It is expressly understood and agreed that to
the extent any such activities have been conducted by the Executive prior to
the Term, the continued conduct of such activities (or the conduct of
activities similar in nature and scope thereto) during the Term shall not
thereafter be deemed to interfere with the performance of the Executive’s
responsibilities to the Company.

4.             Termination

During the Term,
employment of the Executive may be terminated as follows, but, in any case, the
nondisclosure provisions set forth in Section 7 hereof shall survive the
termination of this Agreement and the termination of the Executive’s employment
with the Company:

4.1          By the Company or the Executive

At any time during
the Term, the Company may terminate the employment of the Executive with or
without Cause (as defined below), and the Executive may terminate her
employment for Good Reason (as defined below) or for any reason, upon giving
Notice of Termination (as defined below).

4.2          Automatic Termination

This Agreement and
the Executive’s employment shall terminate automatically upon the death or
Total Disability of the Executive. The term “Total
Disability” as used herein shall mean the Executive’s inability
(with such accommodation as may be required by law and which places no undue
burden on the Company), as determined by a physician selected by the Company
and acceptable to the Executive, to perform the Executive’s essential duties
for a period or periods aggregating twelve (12) weeks in any three hundred
sixty-five (365) day period as a result of physical or mental illness, loss of
legal capacity or any other cause beyond the Executive’s control, unless the
Executive is granted a leave of absence by the Board.

 2
 

 

 

4.3          Notice of Termination

Any termination by
the Company or by the Executive during the Term shall be communicated by Notice
of Termination to the other party given in accordance with Section 9
hereof. The term “Notice of Termination” shall
mean a written notice that (a) indicates the specific termination
provision in this Agreement relied upon and (b) to the extent applicable,
sets forth in reasonable detail the facts and circumstances claimed to provide
a basis for termination of the Executive’s employment under the provision so
indicated. The failure by the Executive or the Company to set forth in the
Notice of Termination any fact or circumstance that contributes to a showing of
Good Reason or Cause shall not waive any right of the Executive or the Company
hereunder or preclude the Executive or the Company from asserting such fact or
circumstance in enforcing the Executive’s or the Company’s rights hereunder.

4.4          Date of Termination

“Date
of Termination” means (a) if the Executive’s employment is
terminated by reason of death, the last day of the calendar month in which the
Executive’s death occurs, (b) if the Executive’s employment is terminated
by reason of Total Disability, immediately upon a determination by the Company
of the Executive’s Total Disability, and (c) in all other cases, ten (10) days
after the date of personal delivery or mailing of the Notice of Termination. The
Executive’s employment and performance of services will continue during such
ten (10) day period; provided, however, that the Company may, upon notice
to the Executive and without reducing the Executive’s compensation during such
period, excuse the Executive from any or all of her duties during such period.

5.             Termination Payments

In the event of
termination of the Executive’s employment during the Term, all compensation and
benefits shall terminate, except as specifically provided in this Section 5.

5.1          Termination by the Company Other Than
for Cause or by the Executive for Good Reason

If during the Term
the Company terminates the Executive’s employment other than for Cause or the
Executive terminates her employment for Good Reason, the Executive shall be
entitled to:

(a)           receive payment of the following
accrued obligations (the “Accrued Obligations”):

(i)            the Executive’s
then current annual base salary through the Date of Termination to the extent
not theretofore paid; and

 3
 

 

 

(ii)           any compensation
previously deferred by the Executive (together with accrued interest or
earnings thereon, if any) and any accrued vacation pay that would be payable
under the Company’s standard policy, in each case to the extent not theretofore
paid;

(b)           for nine (9) months after the
Date of Termination or until the Executive qualifies for comparable medical and
dental insurance benefits from another employer, whichever occurs first, the
Company shall pay the Executive’s premiums for health insurance benefit
continuation for the Executive and her family members, if applicable, that the
Company provides to the Executive under the provisions of the federal
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), to the extent that the Company would have paid
such premiums had the Executive remained employed by the Company (such
continued payment is hereinafter referred to as “COBRA
Continuation”); and

(c)           an amount as severance pay equal to
seventy five percent (75%) of the Executive’s then current annual base salary
for the fiscal year in which the Date of Termination occurs, subject to payment
as set forth in Sections 5.5 and 5.9 hereof.

5.2          Termination for Cause or Other Than
for Good Reason

If during the Term
the Executive’s employment shall be terminated by the Company for Cause or by
the Executive for other than Good Reason, this Agreement shall terminate
without further obligation on the part of the Company to the Executive, other
than the Company’s obligation to pay the Executive the Accrued Obligations to
the extent theretofore unpaid.

5.3          Expiration of Term

In the event the
Executive’s employment is not terminated prior to expiration of the Term, this
Agreement shall terminate without further obligation on the part of the Company
to the Executive.

5.4          Termination Because of Death or Total
Disability

If the Executive’s
employment is terminated during the Term by reason of the Executive’s death or
Total Disability, this Agreement shall terminate automatically without further
obligation on the part of the Company to the Executive or her legal
representatives under this Agreement, other than the Company’s obligation to
pay the Executive the Accrued Obligations (which shall be paid to the Executive’s
estate or beneficiary, as applicable in the case of the Executive’s death) and
to provide COBRA Continuation.

5.5          Payment Schedule

All payments of Accrued
Obligations, or any portion thereof payable pursuant to this Section 5,
shall be made to the Executive within ten (10) working days of the Date of

 4
 

 

 

Termination. Any
severance payments payable to the Executive pursuant to Section 5.1(c) shall
be made to the Executive in the form of salary continuation, payable at normal
payroll intervals during the nine (9) month period following the Date of
Termination (“Payment Period”).

5.6          Cause

For purposes of
this Agreement, “Cause” means cause given by
the Executive to the Company and shall include, without limitation, the occurrence
of one or more of the following events:

(a)           a clear refusal to carry out any
material lawful duties of the Executive or any directions of the Board or
senior management of the Company reasonably consistent with those duties;

(b)           persistent failure to carry out any
lawful duties of the Executive or any directions of the Board or senior
management reasonably consistent with those duties; provided, however, that the
Executive has been given reasonable notice and opportunity to correct any such
failure;

(c)           violation by the Executive of a state
or federal criminal law involving the commission of a crime against the Company
or any other criminal act involving moral turpitude;

(d)           current abuse by the Executive of
alcohol or controlled substances; deception, fraud, misrepresentation or
dishonesty by the Executive; or any incident materially compromising the
Executive’s reputation or ability to represent the Company with investors,
customers or the public; or

(e)           any other material violation of any
provision of this Agreement by the Executive, subject to the notice and
opportunity to cure requirements of Section 8 hereof.

5.7          Good Reason

For purposes of
this Agreement, “Good Reason” means:

(a)           reduction of the Executive’s annual
base salary to a level below the level in effect on the date of this Agreement,
regardless of any change in the Executive’s duties or responsibilities;

(b)           the assignment to the Executive of
any duties materially inconsistent with the Executive’s position, authority,
duties or responsibilities or any other action by the Company the results in a
material diminution in such position, authority, duties or responsibilities,
excluding for this purpose an isolated and inadvertent action not taken in bad
faith and that is remedied by the Company promptly after receipt of notice
thereof given by the Executive;

 5
 

 

 

(c)           the Company’s requiring the Executive
to be based at any office or location more than fifty (50) miles from the city
in which the Executive will be employed by the Company, i.e., San Francisco,
California or Seattle, Washington;

(d)           any failure by the Company to comply
with and satisfy Section 10 hereof, provided, however, that the Company’s
successor has received at least ten (10) days’ prior written notice from
the Company or the Executive of the requirements of Section 10 hereof; or

(e)           any other material violation of any
provision of this Agreement by the Company, subject to the notice and
opportunity to cure requirements of Section 8 hereof.

5.8          General Release of Claims

As a condition to
the payment contemplated by Section 5.1(c), the Executive shall execute a
general release of claims against the Company in a form satisfactory to the
Company in its sole discretion. By way of example and not limitation, the
general release of claims will include any claims for wages, bonuses,
employment benefits, or damages of any kind whatsoever, arising out of any
contracts, express or implied, any covenant of good faith and fair dealing,
express or implied, any theory of wrongful discharge, any legal restriction on
the Company’s right to terminate employment, or any federal, state or other
governmental statute or ordinance, including, without limitation, Title VII of
the Civil Rights Act of 1964, the federal Age Discrimination in Employment Act,
the Americans with Disabilities Act, the Family and Medical Leave Act, the
Washington Law Against Discrimination, or any other legal limitation on the
employment relationship.

5.9          Dispute regarding existence of Good
Reason for Termination

In the event the
Company disputes whether Good Reason existed for the Executive to terminate her
employment for Good Reason, the Company shall pay salary continuation as
provided in Section 5.5 until the earliest of (i) settlement by the
parties, (ii) determination by arbitration in accordance with Section 14
hereof that Good Reason did not exist, and (iii) completion of the
payments required by Section 5.5 and Section 5.1(c) hereof. If,
pursuant to Section 14 hereof, an arbitrator determines that Good Reason
did not exist, the arbitrator shall also decide whether the Executive had a
reasonable, good-faith basis for claiming that there was Good Reason to
terminate. If the arbitrator determines that there was not such a basis, the
Executive shall be obligated to repay promptly to the Company the salary
continuation payments; if the arbitrator determines that there was such a
basis, the Executive shall not be obligated to repay the salary continuation.

6.             Representations, Warranties and
Other Conditions

In order to induce
the Company to enter into this Agreement, the Executive represents and warrants
to the Company as follows:

 6

 

 

6.1          Health

The Executive is
in good health and knows of no physical or mental disability that, with any
accommodation that may be required by law and that places no undue burden on
the Company, would prevent her from fulfilling her obligations hereunder. The
Executive agrees, if the Company requests, to submit to reasonable periodic
medical examinations by a physician or physicians designated, paid for and
arranged by the Company. The Executive agrees that the examination’s medical
report shall be provided to the Company.

6.2          No Violation of Other Agreements

The Executive
represents that neither the execution nor the performance of this Agreement by
the Executive will violate or conflict in any way with any other agreement by
which the Executive may be bound.

7.             Nondisclosure; Return of Materials

7.1          Nondisclosure

Except as required
by her employment with the Company, the Executive will not, at any time during
the term of employment by the Company, or at any time thereafter, directly,
indirectly or otherwise, use, communicate, disclose, disseminate, lecture upon
or publish articles relating to any confidential, proprietary or trade secret
information without the prior written consent of the Company. The Executive
understands that the Company will be relying on this covenant in continuing the
Executive’s employment, paying her compensation, granting her any promotions or
raises, or entrusting her with any information that helps the Company compete
with others.

7.2          Return of Materials

All documents,
records, notebooks, notes, memoranda, drawings or other documents made or
compiled by the Executive at any time while employed by the Company, or in her
possession, including any and all copies thereof, shall be the property of the
Company and shall be held by the Executive in trust and solely for the benefit
of the Company, and shall be delivered to the Company by the Executive upon
termination of employment or at any other time upon request by the Company.

8.             Notice and Cure of Breach

Whenever a breach
of this Agreement by either party is relied upon as justification for any
action taken by the other party pursuant to any provision of this Agreement,
other than clause (a), (b), (c) or (d) of Section 5.6
hereof, before such action is taken, the party asserting the breach of this
Agreement shall give the other party at least twenty (20) days’ prior written
notice of the existence and the nature of such breach before taking further
action hereunder 

 7
 

 

 

and shall give the party
purportedly in breach of this Agreement the opportunity to correct such breach
during the twenty (20) day period.

9.             Form of Notice

Every notice
required by the terms of this Agreement shall be given in writing by serving
the same upon the party to whom it was addressed personally or by registered or
certified mail, return receipt requested, at the address set forth below or at
such other address as may hereafter be designated by notice given in compliance
with the terms hereof:

	
  If to the Executive:

  	
  Cheni Kwok

  
	
   

  	
  10 Scenic Way #108

  
	
   

  	
  San Mateo, California 94403

  
	
   

  	
   

  
	
  If to the
  Company:

  	
  Poniard Pharmaceuticals, Inc.

  
	
   

  	
  300 Elliott Avenue West, Suite 500

  
	
   

  	
  Seattle, Washington 98119

  
	
   

  	
  Attn: Chief Executive Officer

  
	
   

  	
   

  
	
  With a copy to:

  	
  Perkins Coie LLP

  
	
   

  	
  1201 Third Avenue, 40th Floor

  
	
   

  	
  Seattle, Washington 98101-3099

  
	
   

  	
  Attn: James R. Lisbakken

  

 

Except as set forth in Section 4.4 hereof, if
notice is mailed, such notice shall be effective upon mailing.

10.          Assignment

This Agreement is
personal to the Executive and shall not be assignable by the Executive.

The Company shall
assign to and require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all the business
and/or assets of the Company to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. As used in this
Agreement, the “Company” shall mean Poniard
Pharmaceuticals, Inc. and any affiliated company or successor to its
business and/or assets as aforesaid that assumes and agrees to perform this
Agreement by contract, operation of law or otherwise; and as long as such
successor assumes and agrees to perform this Agreement, the termination of the
Executive’s employment by one such entity and the immediate hiring and
continuation of the Executive’s employment by the succeeding entity shall not
be deemed to constitute a termination or trigger any severance obligation under
this Agreement. All the terms and provisions of this Agreement shall be binding
upon and inure to the benefit of and be enforceable by the parties hereto and
their respective successors and permitted assigns.

 8
 

 

 

11.          Waivers

No delay or
failure by any party hereto in exercising, protecting or enforcing any of its
rights, titles, interests or remedies hereunder, and no course of dealing or
performance with respect thereto, shall constitute a waiver thereof. The
express waiver by a party hereto of any right, title, interest or remedy in a
particular instance or circumstance shall not constitute a waiver thereof in
any other instance or circumstance. All rights and remedies shall be cumulative
and not exclusive of any other rights or remedies.

12.          Amendments In Writing

No amendment,
modification, waiver, termination or discharge of any provision of this
Agreement, or consent to any departure therefrom by either party hereto, shall
in any event be effective unless the same shall be in writing, specifically
identifying this Agreement and the provision intended to be amended, modified,
waived, terminated or discharged and signed by the Company and the Executive,
and each such amendment, modification, waiver, termination or discharge shall
be effective only in the specific instance and for the specific purpose for
which given. No provision of this Agreement shall be varied, contradicted or
explained by any oral agreement, course of dealing or performance or any other
matter not set forth in an agreement in writing and signed by the Company and
the Executive.

13.          Applicable Law

This Agreement
shall in all respects, including all matters of construction, validity and
performance, be governed by, and construed and enforced in accordance with, the
laws of the State of Washington, without regard to any rules governing
conflicts of laws.

14.          Arbitration; Attorneys’ Fees

Except in
connection with enforcing Section 7 hereof, for which legal and equitable
remedies may be sought in a court of law, any dispute arising under this
Agreement shall be subject to arbitration. The arbitration proceeding shall be
conducted in accordance with the Commercial Arbitration Rules of the
American Arbitration Association (the “AAA Rules”) then
in effect, conducted by one (1) arbitrator either mutually agreed upon or
selected in accordance with the AAA Rules. The arbitration shall be conducted
in King County, Washington, under the jurisdiction of the Seattle office of the
American Arbitration Association. The arbitrator shall have authority only to
interpret and apply the provisions of this Agreement, and shall have no
authority to add to, subtract from or otherwise modify the terms of this
Agreement. Any demand for arbitration must be made within sixty (60) days of
the event(s) giving rise to the claim that this Agreement has been
breached. The arbitrator’s decision shall be final and binding, and each party
agrees to be bound by the arbitrator’s award, subject only to an appeal
therefrom in accordance with the laws of the State of Washington. Either party may
obtain judgment upon the arbitrator’s award in the Superior Court of King
County, Washington.

 9
 

 

 

If it becomes
necessary to pursue or defend any legal proceeding, whether in arbitration or
court, in order to resolve a dispute arising under this Agreement, the
prevailing party in any such proceeding shall be entitled to recover its
reasonable costs and attorneys’ fees.

15.          Severability

If any provision
of this Agreement shall be held invalid, illegal or unenforceable in any
jurisdiction, for any reason, including, without limitation, the duration of
such provision, its geographical scope or the extent of the activities
prohibited or required by it, then, to the full extent permitted by law, (a) all
other provisions hereof shall remain in full force and effect in such
jurisdiction and shall be liberally construed in order to carry out the intent
of the parties hereto as nearly as may be possible, (b) such invalidity,
illegality or unenforceability shall not affect the validity, legality or
enforceability of any other provision hereof, and (c) any court or
arbitrator having jurisdiction thereover shall have the power to reform such
provision to the extent necessary for such provision to be enforceable under
applicable law.

16.          Coordination With Change of Control
Agreement

The Company and
the Executive are contemporaneously with this Agreement entering into a Change
of Control Agreement (the “Change of Control Agreement”),
which agreement provides for certain forms of severance and benefit payments in
the event of termination of Executive’s employment under certain defined
circumstances. This Agreement is in addition to the Change of Control
Agreement, providing certain assurances to the Executive in circumstances that
the Change of Control Agreement does not cover, and in no way supersedes or
nullifies the Change of Control Agreement. Nevertheless, it is possible that a
termination of employment by the Company or by the Executive may fall within
the scope of both agreements. In such event, payments made to the Executive
under Section 5.1 hereof shall be coordinated with payments made to the
Executive under Section 8.1 of the Change of Control Agreement as follows:

(a)           Accrued Obligations under this
Agreement need not be paid if paid under the Change of Control Agreement;

(b)           COBRA Continuation under this
Agreement need not be provided if provided under the Change of Control
Agreement; and

(c)           the severance payment required under Section 5.1(c) hereof
need not be paid during the first six (6) months of the Payment Period if
a severance payment is made under Section 8.1(d) of the Change of
Control Agreement; provided that the remaining one-third balance of the
severance payment required under Section 5.1(c) hereof shall be paid
during the Offset Period as provided herein.

 10
 

 

 

17.          Excess Parachute Payments

Unless provided by
Section 8.8 of the Change of Control Agreement, if any portion of the
payments or benefits under this Agreement or any other agreement or benefit
plan of the Company (including stock options) would be characterized as an “excess
parachute payment” to the Executive under Section 280G of the Internal
Revenue Code of 1986, as amended (the “Code”), the
Executive shall be paid any excise tax that the Executive owes under Section 4999
of the Code as a result of such characterization, such excise tax to be paid to
the Executive at least ten (10) days prior to the date that he is
obligated to make the excise tax payment. The determination of whether and to
what extent any payments or benefits would be “excess parachute payments” and
the date by which any excise tax shall be due, shall be determined in writing
by recognized tax counsel selected by the Company and reasonably acceptable to
the Executive.

18.          Entire Agreement

Except as
described in Section 16 hereof, this Agreement constitutes the entire
agreement between the Company and the Executive with respect to the subject
matter hereof, and all prior or contemporaneous oral or written communications,
understandings or agreements between the Company and the Executive with respect
to such subject matter, are hereby superseded and nullified in their
entireties, except that the Proprietary Information and Invention Agreement
between the Executive and the Company shall continue in full force and effect
to the extent not superseded by Section 10 hereof.

19.          Withholding

The Company may withhold from any amounts payable
under this Agreement such federal, state or local taxes as shall be required to
be withheld pursuant to any applicable law or regulation.

20.          Counterparts

This Agreement may
be executed in counterparts, each of which counterpart shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 11
 

 

 

IN WITNESS WHEREOF, the
parties have executed and entered into this Agreement effective on the date
first set forth above.

	
  

  	
  PONIARD PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gerald McMahon

  
	
   

  	
   

  	
  Name:

  	
  Gerald McMahon

  
	
   

  	
   

  	
  Its:

  	
  Chairman, CEO & President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Cheni Kwok

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Cheni Kwok

  

 

 12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]