Document:

Exhibit 10.2

 

 

Amendment
One

to

Consulting
Agreement

 

This Amendment One, effective July 11, 2009, is
made between Poniard Pharmaceuticals, Inc.
(hereinafter referred to as “Poniard”),
300 Elliott Avenue West, Suite 500, Seattle, Washington 98119, and Gary A. Lyons (hereinafter referred to as “Consultant”), 1344 Stratford Court, Del
Mar, California 92014.

 

WHEREAS, Poniard and Consultant are parties to a
Consulting Agreement effective April 1, 2009 (the “Consulting Agreement”);

 

WHEREAS, Poniard has requested further services from
Consultant and Consultant has agreed to provide the same; and

 

WHEREAS, the parties desire to amend the Consulting
Agreement upon the terms and conditions set forth herein.

 

NOW, THEREFORE, the parties agree as follows:

 

1.  The term of
the Consulting Agreement shall be amended by deleting “March 31, 2010” in
the first sentence of Paragraph 1 of the Consulting Agreement and inserting “July 11,
2010.”

 

2.  Paragraphs 3
and 4 of the Consulting Agreement shall be amended and replaced in their
entirety with the following:

 

“3.  General Purpose.  The general purpose of this Agreement is to
engage Consultant to provide business development consulting services to
Poniard, upon Poniard’s request.  To the
extent Poniard requests services, Consultant shall be available and provide
services to Poniard not less than fifty percent (50%) of full-time service,
provided, however, it is recognized that over the term of this Agreement
Consultant’s services are expected to average approximately fifty percent (50%)
of full-time service.  Consultant’s
services shall be performed in conformance with professional standards for
performing services of a similar kind.

 

4.  Compensation.  For consulting services commencing July 11,
2009, Poniard shall pay Consultant monthly the sum of $20,000 per month
(prorated for any partial months) upon receipt of an Invoice for 

 

 

the prior month’s services directed to the attention
of Accounts Payable at Poniard, with electronic courtesy copy to Ronald
Martell.  The Invoice shall provide a
general description of the services rendered for such period, and Poniard shall
provide payment within thirty days of receipt of such Invoice.  In addition, Poniard shall reimburse
Consultant for actual and necessary out-of-pocket expenses incurred, where such
expenses are necessary and related to services rendered under this Agreement;
such expenses should be billed in the same Invoice submitted for services.  In the event of early termination as provided
for in Paragraph 2 hereof, Consultant shall invoice (and Poniard shall pay) for
services and expenses incurred through the date that notice is received.  In addition and subject to approval by the
Equity Awards Subcommittee of the Compensation Committee of the Poniard Board
of Directors, Consultant shall receive 170,000 restricted stock units pursuant
to the terms (including vesting) of a Restricted Stock Unit Award Notice and
Restricted Stock Unit Award Agreement.”

 

3.  Except as
amended by the terms of this Amendment One, the Consulting Agreement shall
remain in full force and effect.

 

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

 

	
   

  	
  Poniard Pharmaceuticals, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Anna Lewak Wight

  
	
   

  	
  Name: Anna Lewak Wight

  
	
   

  	
  Title: Vice President, Legal

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Gary A. Lyons

  
	
   

  	
  Name: Gary A. Lyons

  

 

2

 

CONSULTING
AGREEMENT

 

THIS CONSULTING AGREEMENT is made between Poniard Pharmaceuticals, Inc.
(hereinafter referred to as “Poniard”), with addresses at 300 Elliott Avenue
West, Suite 500, Seattle, Washington 98119, and Gary A. Lyons (hereinafter referred to as “Consultant”), with
address at 1344 Stratford Court, Del Mar, California 92014.

 

THE PARTIES AGREE AS FOLLOWS:

 

1.                                       Effective Date. 
This Agreement shall be effective April 1, 2009.

 

2.                                       Term. 
The term of this Agreement shall be from April 1, 2009 through March 31,
2010.  Either party may terminate this
Agreement immediately with cause, or upon 30 days prior written notice without cause.

 

3.                                       General Purpose. 
The general purpose of this Agreement is to engage Consultant to provide
consulting services on matters of Poniard corporate and business development
activities, working closely with Ronald A. Martell, or his designee.  Such services shall be provided in
conformance with professional standards for performing services of a similar
kind.

 

4.                                       Compensation. 
During the term of this Agreement, Poniard shall pay Consultant the sum
of $2,000 per day (assuming 8 hour day), for up to five days per month, once
monthly upon receipt of an Invoice for the prior month’s services directed to
the attention of Accounts Payable at Poniard, with electronic courtesy copy to
Ronald Martell.   The Invoice shall
provide a general description of the services rendered for such period, and
Poniard shall provide payment within thirty days of receipt of such
Invoice.  In addition, Poniard shall
reimburse Consultant for actual and necessary out-of-pocket expenses incurred,
where such expenses are necessary and related to services rendered under this
Agreement; such expenses should be billed in the same Invoice submitted for
services.  Consultant’s service fees are
subject to an annual maximum of $120,000 for services, which maximum cannot be
exceeded without the prior written approval of Poniard before such services are
rendered. In the event of early termination as provided for in paragraph 2
hereof, Consultant shall invoice (and Poniard shall pay) for services and
expenses incurred through the date that notice is received.

 

5.                                       Independent Contractor. 
The parties understand and hereby acknowledge that nothing in this
Agreement shall be construed to create any relationship other than that of an
independent contractor relationship. 
Consultant is not an agent, employee, officer or trustee of Poniard, and
Consultant is not authorized to transact business, enter into agreements or
otherwise make commitments on behalf of Poniard.  Poniard will not pay or withhold federal,
state or local income tax or other payroll tax of any kind on behalf of
Consultant or Consultant’s employees. 
Consultant is not eligible for, not entitled to, and shall not
participate in, any of Poniard’s pension, health or other benefit plans.  Consultant is responsible for the payment of
all required payroll taxes, whether federal, state, or local in nature,
including, but not limited to income taxes, Social Security taxes, Federal
Unemployment Compensation taxes, and any other fees, charges, licenses, or
payments required by law.  Consultant agrees,
consistent with Consultant’s status as an independent contractor, that
Consultant will not apply for unemployment compensation benefits in connection
with the performance of consulting services. Consultant indemnifies Poniard and
holds it harmless against any fines, payments, damages, assessments, or
attorney fees in the event a court or administrative agency shall find that
Consultant is an employee of Poniard.

 

3

 

Consultant represents that Consultant retains the
rights to control the manner in which the consulting services are performed and
that Poniard is contracting for specified accomplished tasks; that the
consulting services are of a different nature than the services normally
performed by Poniard or that the consulting services will be performed outside
the Poniard facility; and that Consultant is pursuing work in an independently
established business of the same nature as the consulting services.

 

6.                                       Confidentiality.  All data,
materials and information submitted or made available to Consultant by Poniard
or by any other person or entity at the direction of Poniard, unless otherwise
publicly available, and all data, materials and information, and other work
developed by Consultant under this Agreement, shall be utilized by Consultant
in connection with this Agreement only, shall be maintained in confidence and
shall not be made available by Consultant to any other person or entity.  Consultant will ensure Consultant’s agents,
employees, officers, and trustees are bound to confidentiality of Poniard data,
materials and information to the same extent that Consultant is bound under
this Agreement.

 

7.                                       Ownership.

 

(a)                                  Poniard shall exclusively own all data,
information, and other work developed or obtained by Consultant pursuant to
this Agreement, either alone or with others, including all inventions,
discoveries, concepts and ideas, whether patentable or not, including but not
limited to articles, processes, methods, formulas, systems and techniques, as well
as improvements and derivations and know-how related thereto (hereinafter
referred to as “Inventions”).

 

(b)                                 Consultant hereby assigns to Poniard or
its designee all of Consultant’s right, title and interest in and to any
Inventions, any patent applications relating thereto, and any patents granted
thereon, and will execute any such formal Assignment documents that Poniard may
request from time to time.  Consultant
shall disclose such Inventions to Poniard promptly and in writing.  When requested, and at Poniard’s expense,
Consultant will assist Poniard or Poniard’s designee, in efforts to protect
Poniard’s proprietary and patent rights to such Inventions.

 

(c)                                  Immediately upon termination of this
Agreement for any reason, all such data, information, and other work, in
whatever form, shall be turned over to Poniard.

 

(d)                                 For purposes of this Agreement any
copyrightable work (hereinafter referred to as “Work”) developed in the course
of performance under this Agreement shall be deemed “work made for hire” under
federal copyright law, and all ownership rights to such Work belong to Poniard.

 

(e)                                  Should such Work not constitute a “work
made for hire” under copyright law, Consultant hereby grants, transfers,
assigns, and conveys to Poniard and its successors and assigns, the entire
right, title and interest in the Work or any part thereof, including but not
limited to the right to reproduce, prepare derivative works, distribute by
sale, license or other transfer; to perform publicly, to display and to secure
copyrights or patents and renewals, reissues and extensions of any such
copyrights or patents in the United States of America or any foreign country.

 

8.                                       Indemnification. 
Poniard shall hold Consultant harmless from and indemnify Consultant
from any and all liability, loss or damage resulting from failure of Poniard to
comply with applicable governmental requirements or from the negligence or
willful misconduct of Poniard and Poniard’s agents or employees; provided,
however, that the foregoing indemnity 

 

4

 

shall not apply to claims
arising solely out of the negligence or willful misconduct of Consultant.   Similarly, Consultant shall hold Poniard
harmless from and indemnify Poniard from any and all liability, loss or damage
resulting from the failure of Consultant to comply with applicable governmental
requirements or from the negligence or willful misconduct of Consultant,
Consultant’s agents or employees, pertaining to the services to be carried out
pursuant to this Agreement; provided, however, that the foregoing indemnity
shall not apply to claims arising solely out of the negligence or willful
misconduct of Poniard, its officers, employees or agents.

 

9.                                       Debarment.  Consultant
represents and warrants that neither Consultant or Consultant’s employees, nor
any other person retained by Consultant to perform the services under this
Agreement (1) is under investigation by the FDA for debarment action or is
presently debarred pursuant to the Generic Drug Enforcement Act of 1992, as
amended (21 U.S.C. Sec. 301, et seq), or (2) has a disqualification
hearing pending or has been disqualified by the FDA pursuant to 21 CFR Sec.
312.70 or its successor provisions.  In
addition, Consultant represents and warrants that Consultant has not engaged in
any conduct or activity which could lead to any of the above mentioned
disqualification or debarment actions. 
If during the term of this Agreement, Consultant or any person employed
or retained by Consultant to perform the services under this Agreement (1) comes
under investigation by FDA for debarment action or disqualification, (2) is
debarred or disqualified, or (3) engages in any conduct or activity which
could lead to any of the above-mentioned disqualification or debarment actions,
Consultant shall immediately notify Poniard. 
For the purposes of this section, reference to the FDA and the Generic
Drug Enforcement Act shall also be deemed a reference to any other governmental
or regulatory authorities having jurisdiction over the subject matter of the
services under this Agreement or any other laws and regulations application to
such services.

 

10.                                 Conflict of Interest. 
Consultant certifies that Consultant does not have any conflict of
interest or other contractual impediment that could preclude Consultant from
carrying out Consultant’s duties and obligations under this Agreement.  Further, Consultant certifies that neither
Consultant nor Consultant’s agents, employees, officers or trustees have any
financial interest in Poniard, and will not benefit financially or otherwise by
results of Consultant’s services under this Agreement, other than the fees
stated in Paragraph 4 hereof.

 

11.                                 Insider Trading. 
Consultant acknowledges and understands that the purchase and sale of
securities on the basis of material nonpublic information, commonly referred to
as “inside information”, or the selective disclosure of inside information to
others who may trade, is prohibited by federal and state laws.  Consultant agrees to comply with all securities
laws and regulations, and Consultant will not use any inside information gained
through Consultant’s relationship with Poniard to trade in the securities of
Poniard or any other company to which the inside information may apply.

 

12.                                 Compliance with
Applicable Laws.  Consultant warrants and represents that
Consultant will comply with all federal, state, and local laws applicable to
performance of the work under this Agreement.

 

13.                                 Authority and Adherence. 
Consultant warrants that Consultant has the authority to enter into this
Agreement and that entering into this Agreement is not restricted or prohibited
by any existing agreement to which Consultant is a party.  Further, Consultant shall require 

 

5

 

Consultant’s officers, employees, affiliates,
associates, agents, contractors and other personnel to adhere to the terms of
this Agreement.

 

14.                                 Assignment and
Subcontract.  This Agreement may not be assigned or
subcontracted by Consultant without the express written consent of Poniard.

 

15.                                 Advertisement. 
Consultant may not use the name Poniard Pharmaceuticals, Inc. or
any variation thereof for advertising or publicity purposes without first
obtaining the written consent of Poniard.

 

16.                                 Governing Law; Jurisdiction. 
This Agreement is governed by the laws of the State of Washington,
without regard to any conflicts-of-law principle that directs the application
of another jurisdiction’s laws.  Venue of
any suit or proceeding arising out of or relating to this Agreement shall lie
exclusively in the state or federal courts located in King County, Washington,
and each party hereby irrevocably and unconditionally submits to the exclusive
jurisdiction of such courts.  Further, if
either party is reasonably required to initiate legal action under this
Agreement, the prevailing party shall be entitled to recover its reasonable
attorney’s fees and costs from the other party.

 

17.                                 No Presumption Against
Drafter.  For purposes of this Agreement, the parties
hereby waive any rule of construction that requires that ambiguities in
this Agreement be construed against the drafter.

 

18.                                 Notices. 
Each notice required or permitted to be given pursuant to this Agreement
shall be in writing and shall be deemed sufficiently given if delivered by fax
or by an express/overnight delivery service provided by a commercial carrier,
properly addressed to the other party at the address designated in the first
paragraph of this Agreement, or to such other address as may be designated in writing.  Notices shall be considered received on the
date faxed or on the date of the dated receipt from the commercial carrier.

 

19.                                 Waiver. 
A delay or failure by either party to exercise any right under this
Agreement will not constitute a waiver of that or any similar or future right.

 

20.                                 Severability. 
If any provision of this Agreement is declared invalid by any Court,
then such provision shall be deemed automatically modified to conform to the
requirements for validity as declared at such time, and as so modified, shall
be deemed a provision of this Agreement as though originally included
herein.  In the event that the provision
invalidated is of such a nature that it cannot be modified, the provision shall
be deemed deleted from this Agreement as though the provision had never been
included herein.  In either case, the
remaining provisions of this Agreement shall remain in effect.

 

21.                                 Survival of Obligations. 
The provisions of paragraph 6, 7, 8, 11, 16 and 19 shall survive
termination or expiration of this Agreement.

 

22.                                 Counterparts/Facsimile. 
This Agreement may be signed in separate counterparts, and PDF or
facsimile signatures will be accepted as originals

 

23.                                 Entire Agreement. 
This Agreement represents the entire understanding of the parties and
may not be modified except by written agreement of the parties and supersedes
all prior written and/or oral agreements.

 

6

 

	
  Poniard Pharmaceuticals, Inc.

  	
   

  	
  Consultant

  
	
  By:

  	
  /s/Ronald A. Martell

  	
   

  	
  By:

  	
  /s/Gary A. Lyons

  
	
  Name: Ronald A. Martell

  	
   

  	
  Name: Gary A. Lyons

  
	
  Title: President & COO

  	
   

  	
   

  
					

 

7Exhibit 10.3

 

 

PONIARD
PHARMACEUTICALS, INC.

AMENDED AND RESTATED 2004 INCENTIVE COMPENSATION

PLAN

 

RESTRICTED
STOCK UNIT AWARD NOTICE

 

Poniard Pharmaceuticals, Inc.
(the “Company”)
hereby grants to you (“Participant”)
a Restricted Stock Unit Award (the “Award”). 
The Award is subject to all the terms and conditions set forth in this
Restricted Stock Unit Award Notice (the “Award Notice”) and the Restricted Stock Unit
Award Agreement (the “Award
Agreement”) and the Poniard Pharmaceuticals, Inc. Amended
and Restated 2004 Incentive Compensation Plan (the “Plan”), which are
incorporated into this Award Notice in their entirety.

 

	
  Participant:

  	
  Gary A. Lyons

  
	
   

  	
   

  
	
  Grant
  Date:

  	
  July 11, 2009

  
	
   

  	
   

  
	
  Vesting
  Commencement Date:

  	
  July 11, 2009

  
	
   

  	
   

  
	
  Number
  of Restricted Stock Units Subject to Award (the “Units”):

  	
  170,000

  
	
   

  	
   

  
	
  Vesting
  Schedule:

  	
  50% of the Units will
  vest on each of the first two anniversaries of the Vesting Commencement Date
  (subject to your continuous service as set forth in the attached Award
  Agreement). Notwithstanding the foregoing, any outstanding, unvested Units
  will become fully vested upon a Corporate Partnering Transaction or a
  Corporate Transaction. The terms “Corporate Partnering Transaction” and “Corporate Transaction” are
  defined in Section 3 of the Award Agreement.

  

 

Additional
Terms/Acknowledgement:  You acknowledge receipt of,
and understand and agree to, this Award Notice, the Award Agreement and the
Plan.  You further acknowledge that as of
the Grant Date, this Award Notice, the Award Agreement and the Plan set forth
the entire understanding between you and the Company regarding the Award and
supersede all prior oral and written agreements on the subject.

 

 

	
  PONIARD
  PHARMACEUTICALS, INC.  

  	
   

  	
  PARTICIPANT  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/Anna Lewak Wight 

  	
   

  	
  By:

  	
  /s/Gary A. Lyons 

  
	
  Name: Anna Lewak Wight 

  	
   

  	
  Name: Gary A. Lyons 

  
	
  Title: Vice President,
  Legal

  	
   

  	
  Address: [Address
  Inserted]

  
					

 

 

Attachments:

1.  Restricted Stock Unit Award Agreement

2.  Plan Summary for the Plan

 

2

 

PONIARD
PHARMACEUTICALS, INC.

AMENDED
AND RESTATED 2004 INCENTIVE COMPENSATION

PLAN

 

RESTRICTED
STOCK UNIT AWARD AGREEMENT

 

Pursuant
to your Restricted Stock Unit Award Notice (the “Award Notice”) and this Restricted Stock
Unit Award Agreement (this “Award Agreement”), Poniard Pharmaceuticals, Inc.
(the “Company”)
has granted you a Restricted Stock Unit Award (the “Award”) under its
Amended and Restated 2004 Incentive Compensation Plan (the “Plan”) for the number
of Restricted Stock Units indicated in your Award Notice.  Capitalized terms not explicitly defined in
the Award Notice or in this Award Agreement but defined in the Plan have the
same definitions as in the Plan.

 

The details of the Award are as follows:

 

1.                                      Vesting

 

The Award will vest as
set forth in the Award Notice (the “Vesting Schedule”).  One share of the
Company’s Common Stock will be issuable for each Restricted Stock Unit that
vests.  Restricted Stock Units that have
vested and are no longer subject to forfeiture according to the Vesting
Schedule are referred to herein as “Vested Units.”  Restricted Stock Units that have not vested
and remain subject to forfeiture under the Vesting Schedule are referred to
herein as “Unvested
Units.”  The Unvested
Units will vest (and to the extent so vested cease to be Unvested Units
remaining subject to forfeiture) in accordance with the Vesting Schedule (the
Unvested and Vested Units are collectively referred to herein as the “Units”).

 

As soon as practicable
after Unvested Units become Vested Units, but in no event later than 45 days
after vesting, the Company will settle the Vested Units by issuing to you one
share of the Company’s Common Stock for each Vested Unit.

 

2.                                      Termination of Consulting
Services

 

In the event that your
consulting services with the Company pursuant to the consulting agreement
between you and the Company effective April 1, 2009, as amended by
Amendment One effective July 11, 2009 (the “Consulting Agreement”), terminate or are
terminated for any reason, other than a termination by the Company for reasons
other than Cause within one year after the Vesting Commencement Date, all
Unvested Units as of the date of such termination will be forfeited by you
automatically to the Company without payment of any consideration to you.  You will have no further rights, and the
Company will have no further obligations to you, with respect to any such
Unvested Units.

 

Notwithstanding the
Vesting Schedule, if the Company terminates your consulting services pursuant
to the Consulting Agreement for reasons other than Cause within one year after
the Vesting Commencement Date, you automatically will become vested as of your
termination date in 50% of the Unvested Units.

 

3

 

For purposes of this
Award Agreement, “Cause”
has the meaning set forth in the Plan and, in addition to that definition,
means a material breach by you of the Consulting Agreement (including, but not
limited to, failure or inability to provide the services required by the
Consulting Agreement).  The Plan
Administrator will notify you in writing of any termination of your consulting
services for reasons of Cause; provided, however, that with respect to a
material breach of the Consulting Agreement, you will have a least 20 days
after the date of such notice to correct the breach, after which time your
consulting services will be deemed terminated if you have not cured the breach
by such date.  Any determinations by the
Plan Administrator with respect to a termination of your consulting services
for reasons of Cause will be conclusive and binding on you.

 

3.                                      Corporate Partnering Transaction
and Corporate Transaction

 

3.1          In
the event of a Corporate Partnering Transaction, all outstanding Unvested Units
will become Vested Units upon consummation of such transaction.  For purposes of this Award Agreement, “Corporate Partnering Transaction”
means a transaction in which the Company grants an unrelated third party the
exclusive rights for the United States and Europe to sell, or co-promote with the
Company, Picoplatin for all indications in exchange for payments to the Company
consisting of upfront and milestone payments and royalties and/or profit
sharing.  The Plan Administrator has the
discretion to determine achievement of a Corporate Partnering Transaction and
any such determination will be binding on you.

 

3.2          In
the event of a Corporate Transaction (as defined in this Section 3.2), all
outstanding Unvested Units will become Vested Units immediately prior to such
Corporate Transaction.  For purposes of
this Award Agreement, “Corporate
Transaction” has the meaning set forth in the Plan, except that
it does not include a transaction in which the holders of the outstanding
voting securities of the Company immediately prior to the Corporate Transaction
beneficially own at least 50% of the outstanding voting securities of the
successor or surviving company (or its parent) immediately after the Corporate
Transaction.

 

4.                                      Securities Law Compliance

 

4.1          You
represent and warrant that you (a) have been furnished with a copy of the
Plan and the prospectus for the Plan and all information which you deem
necessary to evaluate the merits and risks of receipt of the Award, (b) have
had the opportunity to ask questions and receive answers concerning the information
received about the Award and the Company, and (c) have been given the
opportunity to obtain any additional information you deem necessary to verify
the accuracy of any information obtained concerning the Award and the Company.

 

4.2          You
hereby agree that you will in no event sell or distribute all or any part of
the Company’s Common Stock that you may receive pursuant to settlement of the
Units (the “Shares”)
unless (a) there is an effective registration statement under the
Securities Act of 1933, as amended (the “Securities Act”), and applicable state
securities laws covering any such transaction involving the Shares or (b) the
Company receives an opinion of your legal counsel (concurred in by legal
counsel for the Company) stating that such transaction is 

 

4

 

exempt from registration
or the Company otherwise satisfies itself that such transaction is exempt from
registration.  You understand that the
Company has no obligation to you to register the Shares with the Securities and
Exchange Commission and has not represented to you that it will so register the
Shares.

 

4.3          You confirm that you have been advised, prior to your
receipt of the Shares, that neither the offering of the Shares nor any offering
materials have been reviewed by any administrator under the Securities Act or
any other applicable securities act (the “Acts”) and that the Shares cannot be resold
unless they are registered under the Acts or unless an exemption from such
registration is available.

 

4.4          You
hereby agree to indemnify the Company and hold it harmless from and against any
loss, claim or liability, including attorneys’ fees or legal expenses, incurred
by the Company as a result of any breach by you of, or any inaccuracy in, any
representation, warranty or statement made by you in this Award Agreement or
the breach by you of any terms or conditions of this Award Agreement.

 

5.                                      Transfer Restrictions

 

Units may not be sold,
transferred, assigned, encumbered, pledged or otherwise disposed of, whether
voluntarily or by operation of law.

 

6.                                      No Rights as Shareholder

 

You will not have voting
or other rights as a shareholder of the Company with respect to the Units.

 

7.                                      Independent Tax Advice

 

You acknowledge that
determining the actual tax consequences to you of receiving or disposing of the
Units and any Shares received in settlement of the Units may be
complicated.  These tax consequences will
depend, in part, on your specific situation and may also depend on the
resolution of currently uncertain tax law and other variables not within the
control of the Company.  You are aware
that you should consult a competent and independent tax advisor for a full
understanding of the specific tax consequences to you of receiving the Units
and receiving or disposing of the Shares. 
Prior to executing the Award Notice, you either have consulted with a
competent tax advisor independent of the Company to obtain tax advice
concerning the receipt of the Units and the receipt or disposition of the
Shares in light of your specific situation or you have had the opportunity to
consult with such a tax advisor but chose not to do so.

 

8.                                      Book Entry Registration
of Shares

 

The Company will issue
the Shares by registering the Shares in book entry form with the Company’s
transfer agent in your name and the applicable restrictions will be noted in
the records of the Company’s transfer agent and in the book entry system.

 

5

 

9.                                      Withholding

 

You are solely
responsible for all taxes owed in connection with this Award (e.g., at vesting
and/or upon receipt of the Shares), including any domestic or foreign tax
withholding obligations required by law, whether national, federal, state or
local, including FICA or any other tax obligation.

 

10.                               General Provisions

 

10.1        Notices.  Whenever any
notice is required or permitted hereunder, such notice must be in writing and
personally delivered or sent by mail. 
Any notice required or permitted to be delivered hereunder will be
deemed to be delivered on the date on which it is personally delivered, or,
whether actually received or not, on the third business day after it is
deposited in the United States mail, certified or registered, postage prepaid,
addressed to the person who is to receive it at the address that such person
has theretofore specified by written notice delivered in accordance
herewith.  You or the Company may change,
by written notice to the other, the address previously specified for receiving
notices.  Notices delivered to the
Company should be addressed as follows:

 

Poniard Pharmaceuticals, Inc.

 

Attn:  Chief
Financial Officer

7000 Shoreline Court, Suite 270

South San Francisco, California 94080

 

10.2        Assignment. 
The Company may assign its rights under this Award Agreement at any
time, whether or not such rights are then exercisable, to any person or entity
selected by the Company’s Board.

 

10.3        No Waiver.  No waiver of
any provision of this Award Agreement will be valid unless in writing and
signed by the person against whom such waiver is sought to be enforced, nor
will failure to enforce any right hereunder constitute a continuing waiver of
the same or a waiver of any other right hereunder.

 

10.4        Undertaking. 
You hereby agree to take whatever additional action and execute whatever
additional documents the Company may deem necessary or advisable in order to
carry out or effect one or more of the obligations or restrictions imposed on
either you or the Units pursuant to the express provisions of this Award
Agreement.

 

10.5        Agreement Is Entire Contract. 
This Award Agreement, the Award Notice and the Plan constitute the
entire contract between the parties hereto with regard to the subject matter
hereof and supersede all prior oral or written agreements on the subject.  This Award Agreement is made pursuant to the
provisions of the Plan and will, except as otherwise set forth in this Award
Agreement, be construed in conformity with the express terms and provisions of
the Plan.

 

6

 

10.6        Successors and Assigns. 
The provisions of this Award Agreement will inure to the benefit of, and
be binding on, the Company and its successors and assigns and you and your
legal representatives, heirs, legatees, distributees, assigns and transferees
by operation of law, whether or not any such person will have become a party to
this Award Agreement and agreed in writing to join herein and be bound by the
terms and conditions hereof.

 

10.7        No Employment or Service Contract. 
Nothing in this Award Agreement will affect in any manner whatsoever the
right or power of the Company, or Related Corporations, to terminate your
employment or services on behalf of the Company, for any reason, with or
without Cause.

 

10.8        Section 409A Compliance. 
The Company makes no representations or warranties to you with respect
to any tax, economic or legal consequences of the Award Notice or this Award
Agreement or any payments or other benefits provided hereunder, including
without limitation under Section 409A of the Code, and no provision of the
Award Notice or this Award Agreement will be interpreted or construed to
transfer any liability for failure to comply with Section 409A of the Code
from you or any other individual to the Company or any of its affiliates.  By executing Award Notice, you will be deemed
to have waived any claim against the Company and its affiliates with respect to
any such tax, economic or legal consequences. 
Notwithstanding any other provision
in the Award Notice, this Award Agreement or the Plan to the contrary, the
Company, to the extent it deems necessary or advisable in its sole discretion,
reserves the right, but will not be required, to unilaterally amend or modify
the Award Notice or this Award Agreement so that the Award qualifies for exemption
from or complies with Section 409A of the Code; provided, however, that
the Company makes no representations that the Award will be exempt from or
comply with Section 409A of the Code and makes no undertaking to preclude Section 409A
of the Code from applying to the Award.

 

10.9        Counterparts. 
The Award Notice may be executed in two or more counterparts, each of
which will be deemed an original, but which, upon execution, will constitute
one and the same instrument.

 

7

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