Document:

exv10w29

Exhibit 10.29

CLOVIS ONCOLOGY, INC.

2011 EMPLOYEE STOCK PURCHASE PLAN

     1. Purpose. This Clovis Oncology, Inc. 2011 Employee Stock Purchase Plan (the
“Plan”) is intended to advance the interests of Clovis Oncology, Inc, a Delaware
corporation (the “Company”), and its stockholders by providing Eligible Employees of the
Company and each Designated Subsidiary with opportunities to acquire shares of Stock on favorable
terms through payroll deductions. The Plan is intended to qualify as an “employee stock purchase
plan” under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”), and
will be construed so as to extend and limit participation in a manner consistent with the
requirements of Section 423 of the Code. The Plan shall become effective as of the Effective Date,
provided, however, that no Offering Period shall commence under this Plan until the IPO Effective
Date.

     2. Definitions. For purposes of the Plan, the following terms shall be defined as set
forth below:

          (a) “Board” shall mean the Board of Directors of the Company.

          (b) “Committee” shall mean the Compensation Committee of the Board or a subcommittee
thereof consisting solely of not less than two members of the Board who are “non-employee
directors” within the meaning of Rule 16b-3 under the Exchange Act.

          (c) “Company Group” shall mean the Company, together with each Designated Subsidiary.

          (d) “Compensation” shall mean all regular straight-time earnings, including amounts
that would have constituted compensation but for a Participant’s election to defer or reduce
compensation pursuant to any deferred compensation, cafeteria, capital accumulation or any other
similar plan of the Company and excluding all other amounts such as amounts attributable to
overtime, shift premium, incentive compensation, commissions, and bonuses (except to the extent
that the inclusion of any such item is specifically directed by the Committee), determined in a
manner consistent with the requirements of Section 423 of the Code.

          (e) “Designated Subsidiary” shall mean a Subsidiary that has been designated by the
Board from time to time, in its sole discretion, as eligible to participate in the Plan.

          (f) “Effective Date” means the later of (i) the date on which the Board adopts the
Plan, and (ii) the date on which the Plan is approved by the Company’s shareholders.

          (g) “Eligible Employee” shall mean an Employee of the Company or a Designated
Subsidiary (i) who would not, immediately after an option is granted to him hereunder, own shares
possessing five percent (5%) or more of the total combined voting power or value of all classes of
shares of the Company or any Subsidiary (as determined under Section 423(b)(3) of the Code); (ii)
whose customary employment is for more than twenty (20) hours per week; and (iii) whose customary
employment is for more than five (5) months in any calendar year. For purposes of clause (i) of
this subsection (f), the rules of Section 424(d) of the Code with regard to the attribution of
share ownership shall apply in determining the share

 

 

ownership of an individual, and shares which an Employee may purchase under outstanding options shall be
treated as shares owned by the Employee. Notwithstanding anything herein to the contrary,
Employees who are citizens or residents of a foreign jurisdiction (without regard to whether they
are citizens of the United States or resident aliens (within the meaning of Section 7701(b)(1)(A)
of the Code)) shall not be considered Eligible Employees for purposes of the Plan if (x) the grant
of an option hereunder or any Offering to a citizen or foreign resident of such foreign
jurisdiction is prohibited by the laws of such jurisdiction, or (y) compliance with the laws of
such foreign jurisdiction would cause the Plan or any Offering to violate the requirements of
Section 423 of the Code.

          (h) “Employee” shall mean any person, including an officer, who renders services to
the Company or a Designated Subsidiary in the status of an employee within the meaning of Section
3401(c) of the Code. “Employee” shall not include any director of the Company or a Designated
Subsidiary who does not render services to the Company or a Designated Subsidiary in the status of
an employee within the meaning of Section 3401(c) of the Code. For purposes of the Plan, the
employment relationship shall be treated as continuing intact while the individual is on sick leave
or other leave of absence approved by the Company or Designated Subsidiary and meeting the
requirements of Treasury Regulation Section 1.421-7(h)(2). Where the period of leave exceeds
ninety (90) days and the individual’s right to reemployment is not guaranteed either by statute or
by contract, the employment relationship shall be deemed to have terminated on the ninety first
(91st) day of such leave.

          (i) “Employer” shall mean, with respect to a Participant, the member of the Company
Group by which the Participant is principally employed.

          (j) “Enrollment Date” shall mean the first Trading Day of each Offering Period.

          (k) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

          (l) “Exercise Date” shall mean the last Trading Day of each Offering Period.

          (m) “Fair Market Value” shall mean, with respect to the Stock, as of any date: (i) the
closing sale price of the Stock as of such date at the end of the regular trading session, as
reported by the Nasdaq Stock Market, the New York Stock Exchange, the American Stock Exchange or
any national securities exchange on which the Stock is then listed or quoted (or, if no shares were
traded on such date, as of the next preceding date on which there was such a trade); (ii) if the
Stock is not so listed, admitted to unlisted trading privileges, or reported on any national
securities exchange, the closing sale price as of such date at the end of the regular trading
session, as reported by the OTC Bulletin Board or the Pink Sheets, LLC, or other comparable service
(or, if no shares were traded or quoted on such date, as of the next preceding date on which there
was such a trade or quote); or (iii) if the Stock is not so listed or reported, such price as the
Committee determines in its sole discretion in a manner acceptable under Section 423 of the Code.

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          (n) “IPO” shall mean an initial underwritten public offering of the Company’s equity
securities pursuant to an effective Form S-1 registration statement filed under the Securities Act.

          (o) “IPO Effective Date” shall mean the effective date of an IPO.

          (p) “Offering” means any of the offerings to Participants of options to purchase Stock
under the Plan, as described in Section 4 below.

          (q) “Participant” shall mean an Eligible Employee who participates in the Plan
pursuant to Section 5 hereof.

          (r) “Purchase Price” shall mean the lesser of (i) eighty five percent (85%) of the
Fair Market Value of one share of Stock on the Exercise Date, and (ii) eighty five percent (85%) of
the Fair Market Value of one share of Stock on the Enrollment Date; provided, however, that the
Purchase Price may be adjusted by the Committee pursuant to Section 19 hereof; provided, further,
that the Purchase Price shall not be less than the par value of one share of Stock.

          (s) “Securities Act” shall mean the Securities Act of 1933, as amended.

          (t) “Stock” shall mean the Company’s common stock, par value $0.001 per share, or the
number and kind of shares of stock or other securities into which such shares of common stock may
be changed in accordance with Section 13 of the Plan.

          (u) “Subsidiary” shall mean any subsidiary corporation of the Company within the
meaning of Section 424(f) of the Code.

          (v) “Trading Day” shall mean a day on which the principal exchange on which the Stock
is traded is open for trading.

     3. Eligibility.

          (a) Any Employee who is an Eligible Employee on the Enrollment Date for an Offering Period (as
defined in Section 4 below) shall be eligible to participate in the Plan during such Offering
Period, subject to the requirements of Section 3(b) hereof and the limitations imposed by Section
423(b) of the Code.

          (b) No Eligible Employee shall be granted an option under the Plan if the amount of payroll
deductions that the Eligible Employee has elected to have withheld under such option (pursuant to
Section 5 below) would permit the Eligible Employee to purchase shares of Stock under all “employee
stock purchase plans” (within the meaning of Section 423 of the Code) of the Company or any
Subsidiary to accrue (i.e., become exercisable) at a rate that exceeds twenty five thousand
dollars ($25,000) of the Fair Market Value of such shares of Stock (determined as of the Enrollment
Date) for each calendar year in which such option is outstanding at any time.

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     4. Offering Periods. Options to purchase shares of Stock shall be offered to
Participants under the Plan through a continuous series of Offerings, each continuing for six
months and each of which shall commence on January 1 and July 1 of each year, as the case may be,
and shall terminate on June 30 and December 31 of such year, as the case may be (each such period
being, an “Offering Period”); provided, however, that the first Offering Period under the
Plan and any subsequent Offering Period commenced immediately after a suspension of the Plan shall
have an Enrollment Date and Exercise Date as determined by the Committee in its sole discretion.
Offerings under the Plan shall continue until either (a) the Committee decides, in its sole
discretion, that no further Offerings shall be made because the Stock remaining available under the
Plan is insufficient to make an Offering to all Eligible Employees, or (b) the Plan is terminated
under Section 20 below. Notwithstanding the foregoing, and without limiting the authority of the
Committee under Section 14, 19 and 20 of the Plan, the Committee, in its sole discretion, may (a)
accelerate the Exercise Date of the then current Offering Period and provide for the exercise of
options thereunder by Participants in accordance with Section 8 of the Plan, or (b) accelerate the
Exercise Date of the then current Offering Period and provide that all payroll deductions credited
to the accounts of Participants will be paid to Participants as soon as practicable after such
Exercise Date and that all options for such Offering Period will automatically be canceled and will
no longer be exercisable, if such change is announced at least five (5) days prior to the newly
scheduled Exercise Date. Additionally, notwithstanding anything herein to the contrary, the
Committee shall have the power to change the duration of Offering Periods (including the
commencement dates thereof) with respect to future offerings without shareholder approval if such
change is announced at least twenty-five (25) days prior to the scheduled beginning of the first
Offering Period to be affected thereafter.

     5. Participation.

          (a) Each Eligible Employee may become a Participant with respect to any Offering Period by
completing a subscription agreement authorizing payroll deductions in a form acceptable to the
Committee and filing it with the Company (or its designated third-party stock plan administrator)
fifteen (15) business days (or a different number of days as may be determined by the Committee, in
its sole discretion) prior to the first day of such Offering Period. A Participant’s completion of
a subscription agreement with respect to any Offering Period will enroll such Participant in the
Plan for each subsequent Offering Period on the terms contained therein until the Participant
either submits a new subscription agreement, withdraws from participation under the Plan as
provided in Section 10 hereof, or otherwise becomes ineligible to participate in the Plan.

          (b) Payroll deductions for a Participant shall commence on the first payday following the
Enrollment Date and shall end on the last payday in the Offering Period with respect to which such
authorization is applicable, unless sooner terminated by the Participant as provided in Section 10
hereof.

          (c) During a Participant’s leave of absence approved by his Employer and meeting the
requirements of Treasury Regulation Section 1.421-7(h)(2), such Participant may continue to
participate in the Plan by making cash payments to the Company on each payday equal to the amount
of the Participant’s payroll deductions under the Plan for the payday immediately preceding the
first day of such Participant’s leave of absence. If a leave of absence

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is unapproved or fails to meet the requirements of Treasury Regulation Section 1.421-7(h)(2),
the Participant will automatically cease to participate in the Plan and may not make any further
contributions to the Plan hereunder. In such event, the Company will automatically cease to deduct
the Participant’s payroll under the Plan. The Company will pay to the Participant his total
payroll deductions for the Offering Period, in cash in one lump sum (without interest), as soon as
practicable after the Participant ceases to participate in the Plan.

          (d) The subscription agreement(s) used in connection with the Plan shall be in a form
prescribed by the Committee, and the Committee may, in its sole discretion, determine whether such
agreement shall be submitted in written or electronic form.

     6. Payroll Deductions.

          (a) At the time a Participant files his subscription agreement, such Participant shall elect
to have payroll deductions made on each payday (such amount to be deducted after any applicable
deduction for tax and other withholding) during the Offering Period in an amount from one percent
(1%) to ten percent (10%) of the Compensation which he receives on each pay day during the Offering
Period.

          (b) All payroll deductions made for a Participant shall be credited to his account under the
Plan and shall be withheld in whole percentages only. Except as described in Section 5(c) hereof,
a Participant may not make any additional payments into such account.

          (c) A Participant may discontinue his participation in the Plan as provided in Section 10
hereof, or may increase or decrease the rate of his payroll deductions during the Offering Period
by completing or filing with the Company (or its designated third-party stock plan administrator) a
new subscription agreement authorizing a change in payroll deduction rate. The Committee may, in
its discretion, limit the number of participation rate changes per Participant during any Offering
Period. The change in rate shall be effective with the first full payroll period following five
business (5) days (or a different number of days as may be determined by the Committee, in its sole
discretion) after the Company’s (or its designated third-party stock plan administrator’s) receipt
of the new subscription agreement.

          (d) Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of
the Code and Section 3(b) hereof, a Participant’s payroll deductions may be decreased to zero
percent (0%) at any time during an Offering Period.

          (e) At the time an option is exercised, in whole or in part, or at the time some or all of the
shares of Stock issued under the Plan are disposed of, the Participant must make adequate provision
for any federal, state, or other tax obligations, if any, which arise upon the exercise of the
option or the disposition of the shares of Stock. At any time, the Company may, but shall not be
obligated to, withhold from all of the Participant’s compensation the amount necessary for the
Company to meet applicable withholding obligations, including any withholding required to make
available to the Company any tax deductions or benefits attributable to the sale or early
disposition of shares of Stock by the Participant.

     7. Grant of Option. On the Enrollment Date of each Offering Period, each Participant
in such Offering Period shall be granted an option to purchase on the Exercise Date

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with respect to such Offering Period (at the applicable Purchase Price) up to a number of the
shares of Stock determined by dividing such Participant’s payroll deductions accumulated prior to
such Exercise Date and retained in the Participant’s account as of the Exercise Date by the
applicable Purchase Price; provided, however, that (i) such purchase shall be subject to the
limitations set forth in Sections 3 and 13 hereof, and (ii) in no event may more than 137,932
shares of Stock be purchased by any Participant during any Offering Period. Exercise of the option
shall occur as provided in Section 8 hereof, unless the Participant has withdrawn from
participation pursuant to Section 10 hereof or otherwise becomes ineligible to participate in the
Plan. The option shall expire on the last day of the Offering Period.

     8. Exercise of Option.

          (a) Unless a Participant withdraws from the Plan as provided in Section 10 hereof or otherwise
becomes ineligible to participate in the Plan, such Participant’s option for the purchase of Stock
shall be exercised automatically on the Exercise Date, and the maximum number of full shares of
Stock subject to the option shall be purchased for such Participant at the applicable Purchase
Price with the accumulated payroll deductions in his account. No fractional shares of Stock shall
be purchased, and any payroll deductions accumulated in a Participant’s account which are not
sufficient to purchase a full share of Stock shall be retained in such Participant’s account for
the subsequent Offering Period. During a Participant’s lifetime, a Participant’s option to
purchase Stock hereunder is exercisable only by him.

          (b) If the Committee determines that, on a given Exercise Date, the number of shares of Stock
with respect to which options are to be exercised may exceed either (i) the number of shares of
Stock that were available for sale under the Plan on the Enrollment Date of the applicable Offering
Period (notwithstanding any authorization of additional shares of Stock for issuance under the Plan
by the Company’s shareholders subsequent to such Enrollment Date); or (ii) the number of shares of
Stock available for sale under the Plan on such Exercise Date, the Committee shall provide that the
Company (or its designated third-party stock plan administrator) shall make a pro rata allocation
of the Stock available for purchase on such Enrollment Date or Exercise Date, as applicable, in as
uniform a manner as shall be practicable and as it shall determine in its sole discretion to be
equitable among all Participants exercising options to purchase Stock on such Exercise Date, and
shall decide, in its sole discretion, to either (x) continue all Offering Periods then in effect or
(y) terminate any or all Offering Periods then in effect pursuant to Section 20 hereof. In the
event of such a pro rata allocation of Stock pursuant to this Section 8(b), the balance of the
amount credited to the account of each Participant that has not been applied to the purchase of
Stock shall be paid to each such Participant in one lump sum in cash as soon as reasonably
practicable after the Exercise Date, without any interest thereon.

     9. Deposit of Stock. As promptly as practicable after each Exercise Date on which a
purchase of Stock occurs, the Company may arrange for the deposit, into each Participant’s account
with any broker designated by the Company to administer this Plan, of the number of shares of Stock
purchased upon exercise of each such Participant’s option.

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     10. Withdrawal.

          (a) At any time prior to the Exercise Date, a Participant, by giving written notice to the
Company (or its designated third-party stock plan administrator) in a form acceptable to the
Committee, may withdraw all but not less than all of the payroll deductions credited to his account
and not yet used to exercise an option under the Plan. All of the Participant’s payroll deductions
credited to his account during the Offering Period, plus any balance retained in his account from a
prior Offering Period, if any, shall be paid to such Participant as soon as reasonably practicable
after receipt of notice of withdrawal, and such Participant’s option for the Offering Period shall
be automatically terminated, and no further payroll deductions for the purchase of Stock shall be
made for such Offering Period. If a Participant withdraws from an Offering Period, payroll
deductions shall not resume at the beginning of any subsequent Offering Period unless the
Participant delivers to the Company (or its designated third-party stock plan administrator) a new
subscription agreement in accordance with the terms of Section 5(a) hereof.

          (b) A Participant’s withdrawal from an Offering Period shall not have any effect upon his
eligibility to participate in any similar plan which may hereafter be adopted by the Company or in
Offering Periods which commence after the termination of the Offering Period from which the
Participant withdraws.

     11. Termination of Employment. Upon a Participant’s ceasing to be an Eligible
Employee, for any reason, such Participant shall be deemed to have elected to withdraw from the
Plan, and the payroll deductions credited to such Participant’s account during the Offering Period,
plus any balance retained in his account from a prior Offering Period, if any, shall be paid to
him, or in the case of his death, to the person or persons entitled thereto under Section 15
hereof, as soon as reasonably practicable, and such Participant’s option for the Offering Period
shall be automatically terminated.

     12. Interest. No interest shall accrue on the payroll deductions or lump sum
contributions of a Participant in the Plan.

     13. Stock Subject to Plan.

          (a) Subject to adjustment upon changes in capitalization of the Company as provided in Section
19 hereof, the number of shares of Stock reserved and available for delivery under the Plan shall
equal 189,656, as the same may, at the discretion of the Board, be increased annually on the date
of each annual meeting of the Company’s stockholders by an amount of shares equal to the lowest of
(A) the number of shares representing one percent (1%) of the Company’s outstanding shares of Stock
on such date, (B) 344,828 shares, and (C) such lesser number of shares as determined by the Board.
If any option granted under the Plan shall for any reason terminate without having been exercised,
the shares of Stock not purchased under such option shall again become available for issuance under
the Plan. The shares of Stock subject to the Plan may be unissued shares or reacquired shares
bought on the market or otherwise.

          (b) Except as otherwise provided herein, with respect to Stock subject to an option granted
under the Plan, a Participant shall not be deemed to be a shareholder of the

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Company, and the Participant shall not have any of the rights or privileges of a shareholder,
until such Stock has been issued to the Participant or his nominee following exercise of the
Participant’s option. No adjustments shall be made for dividends (ordinary or extraordinary,
whether in cash securities, or other property) or distributions or other rights for which the
record date occurs prior to the date of such issuance, except as otherwise expressly provided
herein.

     14. Administration. The Plan will be administered by the Committee. To the extent
consistent with corporate law, the Committee may delegate to any officers of the Company the
duties, power and authority of the Committee under the Plan pursuant to such conditions or
limitations as the Committee may establish; provided, however, that only the Committee may exercise
such duties, power and authority with respect to Participants who are subject to Section 16 of the
Exchange Act. The Committee may exercise its duties, power and authority under the Plan in its
sole discretion without the consent of any Participant or other party, unless the Plan specifically
provides otherwise. Each determination, interpretation or other action made or taken by the
Committee pursuant to the provisions of the Plan will be final, conclusive and binding for all
purposes and on all persons, including, without limitation, the Company, the stockholders of the
Company, the Participants and their respective successors-in-interest. No member of the Committee
shall be liable for any action or determination made in good faith with respect to the Plan or any
option granted under the Plan.

     15. Designation of Beneficiary.

          (a) A Participant may file a written designation of a beneficiary who is to receive any Stock
and cash, if any, from such Participant’s account under the Plan in the event of such Participant’s
death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such
Participant of such Stock and cash. In addition, a Participant may file a written designation of a
beneficiary who is to receive any cash from the Participant’s account under the Plan in the event
of such Participant’s death prior to exercise of the option. To the extent required under
applicable law, spousal consent shall be required for such designation to be effective if the
Participant is married and the designated beneficiary is not the Participant’s spouse.

          (b) Such beneficiary designation may be changed by the Participant at any time by written
notice to the Company. In the event of the death of a Participant and in the absence of a
beneficiary validly designated under the Plan who is living at the time of such Participant’s
death, the Company shall deliver such Stock and/or cash to the executor or administrator of the
estate of the Participant, or if no such executor or administrator has been appointed (to the
knowledge of the Company), the Company may, in its discretion, deliver such Stock and/or cash to
the spouse or to any one or more dependents or relatives of the Participant, or if no spouse,
dependent, or relative is known to the Company, then to such other person as the Company may
designate.

     16. Transferability. Neither payroll deductions credited to a Participant’s account
nor any rights with regard to the exercise of an option or to receive Stock under the Plan may be
assigned, transferred, pledged, or otherwise disposed of in any way by the Participant (other than
by will, the laws of descent and distribution, or as provided in Section 15 hereof). Any such
attempt at assignment, transfer, pledge, or other disposition shall be without effect, except that

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the Company may treat such act as an election to withdraw funds from an Offering Period in
accordance with Section 10 hereof.

     17. Use of Funds. All payroll deductions received or held by the Company under the
Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated
to segregate such payroll deductions.

     18. Reports. Individual accounts shall be maintained for each Participant in the
Plan. Statements of account shall be given to Participants following each Offering Period, which
statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of
shares of Stock purchased, and the remaining cash balance, if any.

     19. Adjustments Upon Changes in Capitalization, Merger, Amalgamation, Asset Sale,
Dissolution or Liquidation.

     (a) Changes in Capitalization. The number of shares of Stock which have been
authorized for issuance under the Plan but not yet placed under option, the maximum number of
shares of Stock each Participant may purchase in each Offering Period (pursuant to Section 7
hereof), as well as the price per share of Stock and the number of shares of Stock covered by each
option under the Plan which has not yet been exercised shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Stock resulting from a stock split, reverse
stock split, stock dividend, combination, or reclassification of the Stock, or any other increase
or decrease in the number of shares of Stock effected without receipt of consideration by the
Company; provided, however, that conversion of any convertible securities of the Company shall not
be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made
by the Committee, whose determination in that respect shall be final, binding, and conclusive on
all Participants and the Company. Except as expressly provided herein, no issuance by the Company
of shares of any class, or securities convertible into shares of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price of shares of Stock
subject to an option.

     (b) Merger, Amalgamation, Asset Sale, Dissolution or Liquidation. In the event of a
proposed merger or amalgamation of the Company with or into another corporation or a proposed sale
of all or substantially all of the assets of the Company, each outstanding option shall be assumed
or an equivalent option substituted by the successor corporation or a parent or subsidiary of the
successor corporation. In the event that the successor corporation or a parent or subsidiary of
the successor corporation refuses to assume or substitute for the option, or in the event of the
proposed dissolution, or liquidation of the Company, the Offering Period then in progress shall be
shortened by the Committee by setting a new Exercise Date (the “New Exercise Date”), which
shall occur no later than immediately prior to the effective date of such proposed merger,
amalgamation, sale, dissolution or liquidation, as applicable. The Company shall notify each
Participant in writing, at least ten (10) business days prior to the New Exercise Date, that the
Exercise Date for the Participant’s option has been changed to the New Exercise Date and that the
Participant’s option shall be exercised automatically on the New Exercise Date, unless prior to
such New Exercise Date the Participant has withdrawn from the Offering Period as provided in
Section 10 hereof.

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     20. Amendment or Termination.

          (a) The Board may at any time and for any reason terminate or amend the Plan. Except as
provided in Section 19 hereof, no such termination shall affect options previously granted,
provided that an Offering Period may be terminated by the Board if the Board determines that the
termination of the Offering Period or the Plan is in the best interests of the Company and its
shareholders. Except as provided in Section 19 hereof and this Section 20, no amendment may make
any change in any option theretofore granted which adversely affects the rights of any Participant
without the consent of such Participant. To the extent necessary to comply with Section 423 of the
Code (or any successor rule or provision or any other applicable law, regulation, or stock exchange
rule), the Company shall obtain shareholder approval of any amendment in such a manner and to such
a degree as required.

          (b) Without shareholder consent and without regard to whether any Participant’s rights may be
considered to have been “adversely affected,” the Committee shall be entitled to change the
Offering Periods (but in no event may an Offering Period have a duration in excess of twenty seven
(27) months), limit the frequency and/or number of changes in the amount withheld during an
Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other
than U.S. dollars, permit payroll withholding in excess of the amount designated by a Participant
in order to adjust for delays or mistakes in the Company’s processing of properly completed
withholding elections, establish reasonable waiting and adjustment periods and/or accounting and
crediting procedures to ensure that amounts applied toward the purchase of Stock for each
Participant properly correspond with amounts withheld from the Participant’s Compensation, and
establish such other limitations or procedures as the Committee determines in its sole discretion
advisable which are consistent with the Plan.

          (c) In the event the Board determines that the ongoing operation of the Plan may result in
unfavorable financial accounting consequences, the Board may, in its discretion and, to the extent
necessary or desirable, modify, or amend the Plan to reduce or eliminate such financial accounting
consequences, including, but not limited to:

               (i) altering the Purchase Price for any Offering Period including an Offering Period underway
at the time of the change in Purchase Price;

               (ii) shortening any Offering Period so that the Offering Period ends on a new Exercise Date,
including an Offering Period underway at the time of the Committee action; and

               (iii) allocating shares.

     Such modifications or amendments shall not require shareholder approval or the consent of any
Participants.

     21. Notices. All notices or other communications by a Participant to the Company
under or in connection with the Plan shall be deemed to have been duly given when received in the
form specified by the Company at the location, or by the person, designated by the Company for the
receipt thereof.

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     22. Conditions to Issuance of Stock.

          (a) The Company shall not be required to issue or deliver to a Participant any certificate or
certificates for shares of Stock purchased upon the exercise of options prior to fulfillment of all
the following conditions:

               (i) The admission of such shares of Stock to listing on all stock exchanges, if any, on which
the Stock is then listed;

               (ii) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Committee shall, in its absolute discretion, determine to be necessary or
advisable;

               (iii) Such Participant’s payment to the Company of all amounts which it is required to
withhold under federal, state or local law upon exercise of the option; and

               (iv) The lapse of such reasonable period of time following the exercise of the option as the
Committee may from time to time establish for reasons of administrative convenience.

          (b) The obligation of the Company to make a payment of Stock or otherwise shall be subject to
all applicable laws, rules and regulations, and to such approvals by governmental agencies as may
be required. Notwithstanding any terms or conditions of any option to the contrary, the Company
shall be under no obligation to offer to sell or to sell and shall be prohibited from offering to
sell or selling any Stock pursuant to an option unless such Stock has been properly registered for
sale with the Securities and Exchange Commission pursuant to the Securities Act or unless the
Company has received an opinion of counsel, satisfactory to the Company, that such Stock may be
offered or sold without such registration pursuant to an available exemption therefrom and the
terms and conditions of such exemption have been fully complied with. The Company shall be under
no obligation to register for sale or resale under the Securities Act any of the Stock to be
offered or sold under the Plan or any Stock issued upon exercise or settlement of options. If the
Stock offered for sale or sold under the Plan is offered or sold pursuant to an exemption from
registration under the Securities Act, the Company may restrict the transfer of such Stock and may
legend the share certificates representing such Stock in such manner as it deems advisable to
ensure the availability of any such exemption.

     23. Term of Plan. The Plan shall become effective as of the Effective Date. The Plan
shall be deemed to be approved by the Company’s shareholders if it receives the affirmative vote of
the Company’s shareholders in accordance with the by-laws of the Company. Subject to approval by
the shareholders of the Company in accordance with this Section 23, the Plan shall be in effect
until the tenth (10th) anniversary of the date of the initial adoption of the Plan by
the Board, unless sooner terminated under Section 20 hereof. In the event the Company’s
shareholders do not approve this Plan pursuant to this Section 23, neither this Plan nor any
elections made hereunder shall be of any force or effect, any outstanding option shall be cancelled
for no consideration, and all amounts deducted from each Participant’s paycheck shall be repaid to
such Participant as soon as practicable without interest.

- 11 -

 

     24. Equal Rights and Privileges. All Eligible Employees will have equal rights and
privileges under this Plan so that this Plan qualifies as an “employee stock purchase plan” within
the meaning of Section 423 of the Code. Any provision of this Plan that is inconsistent with this
requirement to provide equal rights and privileges will, without further act or amendment by the
Company, the Board or the Committee, be reformed to comply with the equal rights and privileges
requirement of Section 423 of the Code.

     25. Section 409A. The options to purchase Stock under the Plan are not intended to
constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code.
However, if at any time the Committee determines that the options may be subject to Section 409A of
the Code, the Committee shall have the right, in its sole discretion, to amend the Plan and any
outstanding options as it may determine is necessary or desirable either to exempt the options from
the application of Section 409A of the Code or to cause the options to comply with the requirements
of Section 409A of the Code.

     26. No Employment Rights. Nothing in the Plan shall be construed to give any person
(including any Eligible Employee or Participant) the right to remain in the employ of the Company
or a Subsidiary, or to affect the right of the Company or any Subsidiary to terminate the
employment of any person (including any Eligible Employee or Participant) at any time, with or
without cause.

     27. Notice of Disposition of Stock; Transfer Restrictions. If required by the
Company, each Participant shall give prompt notice to the Company (at its local Human Resources
office), or cause a designated third-party stock administrator to give prompt notice to the
Company, of any disposition or other transfer of any Stock purchased upon exercise of an option
hereunder if such disposition or transfer is made either (a) within two (2) years from the
Enrollment Date of the Offering Period in which the Stock was purchased or (b) within one (1) year
after the Exercise Date on which such Stock was purchased. Such notice shall specify the date of
such disposition or other transfer and the amount realized, in cash, other property, assumption of
indebtedness, or other consideration, by the Participant in such disposition or other transfer.
Notwithstanding anything herein to the contrary, no Participant shall be permitted to dispose of or
transfer any Stock purchased pursuant to an option hereunder prior to the date that is twelve (12)
months following the date upon which such Stock was so purchased. The Committee may provide, in
its sole discretion, that the Stock purchased pursuant to an option hereunder shall be held in book
entry form, rather than delivered to the Participant, through the expiration of such twelve (12)
month period. If certificates representing the shares of Stock are registered in the name of the
Participant, the Committee may require that such certificates bear an appropriate legend referring
to the terms, conditions, and restrictions applicable to such Stock and that the Company retain
physical possession of the certificates.

     28. Governing Law. Subject to any applicable provisions of United States federal law
(including, without limitation, Section 423(b) of the Code), the validity and enforceability of
this Plan shall be governed by and construed in accordance with the laws of the State of Delaware,
without regard to otherwise governing principles of conflicts of law.

* * *

- 12 -exv10w30

Exhibit 10.30

CLOVIS ONCOLOGY, INC.

2011 CASH BONUS PLAN

Section 1. Purpose. The purpose of this Clovis Oncology, Inc. 2011 Cash Bonus Plan (this
“Plan”) is to attract, retain and motivate selected executive officers of Clovis Oncology,
Inc. (the “Company”) and its subsidiaries and affiliates (together with the Company, and
their and its successors and assigns, the “Company Group”) in order to promote the Company
Group’s growth and profitability. It is intended that any Bonus (as defined in Section 5(c))
payable under this Plan be considered “performance-based compensation” within the meaning of
Section 162(m)(4)(C) of the Internal Revenue Code of 1986, as amended (the “Code”), and the
regulations thereunder, and this Plan shall be limited, construed and interpreted accordingly.

Section 2. Administration.

     (a) General. Subject to Section 2(d), this Plan shall be administered by a committee (the
“Committee”) appointed by the Board of Directors of the Company (the “Board”),
whose members shall serve at the pleasure of the Board. The Committee at all times shall be
composed of at least two directors of the Company, each of whom is an “outside director” within the
meaning of Section 162(m) of the Code and Treasury Regulation Section 1.162-27(e)(3). Unless
otherwise determined by the Board, the Committee shall be the Compensation Committee of the Board;
provided, however, that if the Compensation Committee does not satisfy the
requirements set forth in the prior sentence, the Committee shall be the 162(m) Committee (if such
committee is then constituted) to the extent necessary for any Bonus payable under this Plan to be
considered “performance-based compensation” within the meaning of Section 162(m) of the Code and
the regulations thereunder.

     (b) Role of the Committee. The Committee shall have complete control over the administration
of this Plan, and shall have the authority in its sole and absolute discretion to: (i) exercise all
of the powers granted to it under this Plan, including designating individuals as participants in
this Plan in accordance with Section 4 and establishing the Performance Goals (as defined in
Section 5(a)) in accordance with Section 5(a); (ii) construe, interpret and implement this Plan;
(iii) prescribe, amend and rescind rules and regulations relating to this Plan, including rules and
regulations governing its own operations; (iv) make all determinations and take all actions
necessary or advisable in administering this Plan (including, without limitation, calculating the
size of the Bonus payable to each Participant (as defined in Section 4(a)) and certifying the
attainment of the Performance Goals); (v) correct any defect, supply any omission and reconcile any
inconsistency in this Plan; and (vi) amend this Plan to reflect changes in or interpretations of
applicable law, rules or regulations.

     (c) Procedures; Decisions Final. Actions of the Committee shall be made by the vote of a
majority of its members. The determination of the Committee on all matters relating to this Plan
and any amounts payable thereunder shall be final, binding and conclusive on all parties.

     (d) Delegation. The Committee may allocate among its members and may delegate some or all of
its authority or administrative responsibility to such individual or individuals who are not
members of the Committee as it shall deem necessary or appropriate; provided,
however,

 

the Committee may not delegate any of its authority or administrative responsibility hereunder
if such delegation would cause any Bonus payable under this Plan not to be considered
“performance-based compensation” within the meaning of Section 162(m)(4)(C) of the Code and the
regulations thereunder, and any such attempted delegation shall not be effective and shall be void
ab initio.

     (e) No Liability. No member of the Board or the Committee or any employee of the Company
Group (each such person a “Covered Person”) shall have any liability to any person
(including, without limitation, any Participant) for any action taken or omitted to be taken or any
determination made in good faith with respect to this Plan, any Award or any Bonus. Each Covered
Person shall be indemnified and held harmless by the Company against and from any loss, cost,
liability or expense (including attorneys’ fees) that may be imposed upon or incurred by such
Covered Person in connection with or resulting from any action, suit or proceeding to which such
Covered Person may be a party or in which such Covered Person may be involved by reason of any
action taken or omitted to be taken under this Plan and against and from any and all amounts paid
by such Covered Person, with the Company’s approval, in settlement thereof, or paid by such Covered
Person in satisfaction of any judgment in any such action, suit or proceeding against such Covered
Person, provided that the Company shall have the right, at its own expense, to assume and defend
any such action, suit or proceeding and, once the Company gives notice of its intent to assume the
defense, the Company shall have sole control over such defense with counsel of the Company’s
choice. The foregoing right of indemnification shall not be available to a Covered Person to the
extent that a court of competent jurisdiction in a final judgment or other final adjudication, in
either case, not subject to further appeal, determines that the acts or omissions of such Covered
Person giving rise to the indemnification claim resulted from such Covered Person’s bad faith,
fraud or willful misconduct. The foregoing right of indemnification shall not be exclusive of, and
shall not be deemed to limit or modify, any other rights of indemnification or the advancement of
expenses to which Covered Persons may be entitled under the Company’s certificate of incorporation
or by-laws, as a matter of law, or otherwise, or any other power that the Company may have to
indemnify such persons or hold them harmless.

Section 3. Performance Period.

     The Committee shall designate the periods (each a “Performance Period”) with respect
to which a Participant may be granted the opportunity to earn one or more payouts to the extent
consistent with Treasury Regulation Section 1.162-27(e)(2). The first Performance Period shall
commence on January 1, 2012. Unless otherwise determined by the Committee, the Performance Period
shall be the Company’s fiscal year.

Section 4. Eligibility and Participation.

     (a) Participants. Prior to the 90th day after the beginning of the Performance
Period, or otherwise in a manner not inconsistent with Treasury Regulation Section 1.162-27(e)(2)
(the “Participation Date”), the Committee shall designate those executive officers of the
Company Group who shall participate in this Plan for each Performance Period (the
“Participants”).

2

 

     (b) Changes During a Performance Period. Except as provided below, the Committee shall have
the authority at any time (i) during the Performance Period to remove Participants from this Plan
for that Performance Period and (ii) prior to the Participation Date (or otherwise in a manner not
inconsistent with Treasury Regulation Section 1.162-27(e)(2)) to add Participants to this Plan for
a particular Performance Period.

Section 5. Bonus Amounts.

     (a) Establishment of Performance Goals and Formula. By the Participation Date (or otherwise
in a manner not inconsistent with Treasury Regulation Section 1.162-27(e)(2)), the Committee shall
establish the objective performance goals (the “Performance Goals”) for a Performance
Period in writing while the outcome of the Performance Goals is substantially uncertain. At the
same time the Performance Goals are established, the Committee shall prescribe a formula to
determine the amount of the bonus which may be payable based upon the level of attainment of the
Performance Goals during the Performance Period (the Participant’s “Award”).

     (b) Performance Goals. The Performance Goals shall be based on one or more of the following
business criteria (either separately or in combination) with regard to the Company (or a
subsidiary, division, other operational unit or administrative department of the Company):

          (i) enterprise value or value creation targets;

          (ii) after-tax or pre-tax profits (including net operating profit after taxes) or net income,
including without limitation that attributable to continuing and/or other operations;

          (iii) after-tax or pre-tax margins;

          (iv) revenues;

          (v) operational cash flow or earnings before income tax or other exclusions (including free
cash flow, cash flow per share or earnings before interest, taxes, depreciation and amortization);

          (vi) reduction of, or limiting the level of increase in, all or a portion of the Company
Group’s bank debt or other long-term or short-term public or private debt or other similar
financial obligations of the Company Group, which may be calculated net of cash balances and/or
other offsets and adjustments as may be established by the Committee;

          (vii) consummation of debt and equity offerings;

          (viii) equity capital raised;

          (ix) earnings per share, earnings per diluted share or earnings per share from continuing
operations;

3

 

          (x) return on capital employed (including, without limitation, return on invested capital or
return on committed capital), return on revenues, return on assets and return on stockholders’
equity;

          (xi) market share;

          (xii) the fair market value of the shares of the Company’s common stock, par value $0.001 per
share (the “Common Stock”);

          (xiii) the growth in the value of an investment in the Common Stock assuming the reinvestment
of dividends;

          (xiv) reduction of, or limiting the level of increase in, all or a portion of controllable
expenses or costs or other expenses or costs (including selling, general and administrative
expenses or costs (excluding advertising) as a percentage of sales);

          (xv) economic value added targets based on a cash flow return on investment formula;

          (xvi) customer satisfaction or service measures or indices;

          (xvii) employee satisfaction;

          (xviii) efficiency or productivity measures;

          (xix) asset management (e.g., inventory and receivable levels);

          (xx) compliance goals (e.g., regulatory and legal compliance); or

          (xxi) strategic business objectives, goals or initiatives.

     In addition, Performance Goals may be based upon the attainment of specified levels of Company
Group (or subsidiary, division, other operational unit or administrative department of the Company)
performance under one or more of the measures described above relative to the performance of other
corporations or the historic performance of the Company Group and may be combined with cost of
capital, assets, invested capital and stockholder equity to form an appropriate measure of
performance. To the extent permitted by Section 162(m) of the Code, unless the Committee provides
otherwise at the time of establishing the performance goals, for each fiscal year of the Company,
the Committee may (i) designate additional business criteria on which the performance goals may be
based or (ii) provide for objectively determinable adjustments, modifications or amendments, as
determined in accordance with GAAP, to any of the performance criteria described above for one or
more of the items of gain, loss, profit or expense: (A) determined to be extraordinary or unusual
in nature or infrequent in occurrence, (B) related to the disposal of a segment of a business, (C)
related to a change in accounting principle under GAAP, (D) related to discontinued operations that
do not qualify as a segment of business under GAAP, and (E) attributable to the business operations
of any entity acquired by the Company Group during the fiscal year. To the extent any such
provision would create

4

 

impermissible discretion under Section 162(m) of the Code or otherwise violate Section 162(m)
of the Code, such provision shall be of no force or effect.

     (c) Committee Discretion to Determine Bonus. Following the completion of each Performance
Period, the Committee shall calculate each Participant’s Award based on the level of attainment of
the Performance Goals and the pre-set formula. The Committee has the sole discretion to determine
whether all or any portion of a Participant’s Award shall be paid, and the specific amount, if any,
to be paid to each Participant, subject in all cases to the terms, conditions and limits of this
Plan. The Committee may, at any time, establish (and, once established, rescind, waive or amend)
additional conditions and terms of payment of Awards (including, but not limited to, the
achievement of other financial, strategic or individual goals, which may be objective or
subjective) as it may deem desirable in carrying out the purposes of this Plan. Notwithstanding
anything to the contrary in this Plan, the Committee may, in its sole discretion, reduce (but not
increase) the Award amount for any Participant for a particular Performance Period at any time
prior to the payment of Awards to Participants pursuant to Section 6. The portion of an Award that
the Committee determines to pay to a Participant for a Performance Period, is herein referred to as
his or her “Bonus”.

     (d) Maximum Bonus. Notwithstanding anything to the contrary in Section 5(c), under no
circumstances shall the Bonus payable to any single Participant for any annual Performance Period
exceed $10,000,000.

     (e) Certification. Following the completion of each Performance Period and prior to any Bonus
payment, the Committee shall certify in writing whether the Performance Goals for the Performance
Period have been met and, if they have been met, certify the amount of the applicable Bonus.

     (f) Termination During a Performance Period. If a Participant’s employment with the Company
Group terminates for any reason before the end of a Performance Period, the Participant shall not
be entitled to any Bonus under this Plan for that Performance Period unless otherwise provided in
the terms of the Award or otherwise determined by the Committee in connection with specified
terminations of employment. A Participant who is terminated for gross misconduct after the end of
the Performance Period shall forfeit participation in this Plan, and no Bonus shall be payable to
such a Participant.

Section 6. Payment of Bonus Amount.

     Each Participant’s Bonus shall be payable by the Company Group, at the discretion of the
Committee, in cash and/or a Company equity-based award of equivalent value (provided that in
determining the number of shares of Common Stock (whether restricted or unrestricted) that is
equivalent to a dollar amount, that dollar amount shall be divided by the average of the high and
low sales price per share of Common Stock on the principal exchange or market on which the Common
Stock is then listed for the last preceding date on which there was a sale of such Common Stock on
such exchange or market (with fractional shares being rounded to the nearest whole share)). The
cash portion of the Bonus (i) shall be paid by March 15th in the fiscal year after the
fiscal year in which the Performance Period in which they are earned is completed, generally at
such time as bonuses are paid by the Company for the relevant fiscal year, but not

5

 

before the Committee certifies in writing that the Performance Goals for such Performance
Period were met, unless otherwise determined pursuant to Section 7(n) and (ii) shall be paid in
U.S. dollars. Any equity-based award shall be granted under a stockholder-approved equity-based
compensation plan subject to such terms and conditions (including vesting requirements) as the
Committee and the administrative committee of the plan under which such equity-based award is
granted may determine.

     Subject to approval by the Committee and to any requirements imposed by the Committee in
connection with such approval, each Participant may be entitled to defer receipt, under the terms
and conditions of any applicable deferred compensation plan of the Company Group and the
requirements of Section 409A of the Code, of part or all of any payments otherwise due under this
Plan.

     No Participant shall have any right to payment of any amounts under this Plan unless and until
the Committee determines (i) the amount of such Participant’s Bonus, (ii) that such Bonus shall be
paid, and (iii) the method and timing of its payment.

Section 7. General Provisions.

     (a) Amendment and Termination. The Board or the Committee may at any time and from time to
time modify, alter, amend, suspend, discontinue or terminate this Plan, except that no
modification, alteration, amendment, suspension, discontinuation or termination (i) may impair the
rights of a Participant under any Award theretofore granted without the Participant’s consent,
except for an amendment made to comply with applicable law, stock exchange rules or accounting
rules or (ii) cause an Award not to be deductible under, or to cease to be deductible under,
Section 162(m) of the Code. In addition, no amendment that would require stockholder approval
under applicable law (including, without limitation, in order for any Bonus paid pursuant to this
Plan to constitute “performance-based compensation” within the meaning of Section 162(m)(4)(C) of
the Code) or stock exchange rules shall be effective without the approval of the stockholders of
the Company as required by such law (including, without limitation, Section 162(m) of the Code and
the regulations thereunder) or stock exchange rules.

     (b) Nonassignability. No rights of any Participant under this Plan may be sold, exchanged,
transferred, assigned, pledged, hypothecated or otherwise disposed of (including through the use of
any cash-settled instrument), either voluntarily or involuntarily by operation of law, other than
by will or by the laws of descent and distribution. Any sale, exchange, transfer, assignment,
pledge, hypothecation or other disposition in violation of the provisions of this Section 7(b)
shall be void and shall not be recognized or given effect by the Company Group.

     (c) Plan Creates No Employment Rights. Nothing in this Plan shall confer upon any Participant
the right to continue in the employ of the Company Group for the Performance Period or thereafter
or affect any right which the Company Group may have to terminate such employment.

6

 

     (d) Choice of Forum.

          (i) Jurisdiction. The Company Group and each Participant, as a condition to such
Participant’s participation in this Plan, hereby irrevocably submit to the exclusive jurisdiction
of any state or federal court of appropriate jurisdiction located in 20th Judicial
District of Colorado over any suit, action or proceeding arising out of or relating to or
concerning this Plan that is not otherwise arbitrated or resolved according to Section 7(e). The
Company Group and each Participant, as a condition to such Participant’s participation in this
Plan, acknowledge that the forum designated by this Section 7(d) has a reasonable relation to this
Plan and to the relationship between such Participant and the Company Group. Notwithstanding the
foregoing, nothing herein shall preclude the Company Group from bringing any action or proceeding
in any other court for the purpose of enforcing the provisions of Section 7(d).

          (ii) Acceptance of Jurisdiction. The agreement by the Company Group and each Participant as
to forum is independent of the law that may be applied in the action, and the Company Group and
each Participant, as a condition to such Participant’s participation in this Plan, (i) agree to
such forum even if the forum may under applicable law choose to apply non-forum law, (ii) hereby
waive, to the fullest extent permitted by applicable law, any objection which the Company Group or
such Participant now or hereafter may have to personal jurisdiction or to the laying of venue of
any such suit, action or proceeding in any court referred to in Section 7(d)(i), (iii) undertake
not to commence any suit, action or proceeding arising out of or relating to or concerning this
Plan in any forum other than the forum described in this Section 7(d) and (iv) agree that, to the
fullest extent permitted by applicable law, a final and non-appealable judgment in any such suit,
action or proceeding in any such court shall be conclusive and binding upon the Company Group and
each Participant.

          (iii) Service of Process. Each Participant, as a condition to such Participant’s
participation in this Plan, hereby irrevocably appoints the General Counsel of the Company as such
Participant’s agent for service of process in connection with any action, suit or proceeding
arising out of or relating to or concerning this Plan that is not otherwise arbitrated or resolved
according to Section 7(e), who shall promptly advise such Participant of any such service of
process.

          (iv) Confidentiality. Each Participant, as a condition to such Participant’s participation in
this Plan, agrees to keep confidential the existence of, and any information concerning, a dispute,
controversy or claim described in this Section 7(d), except that a Participant may disclose
information concerning such dispute, controversy or claim to the arbitrator or court that is
considering such dispute, controversy or claim or to such Participant’s legal counsel (provided
that such counsel agrees not to disclose any such information other than as necessary to the
prosecution or defense of the dispute, controversy or claim).

     (e) Dispute Resolution. Subject to the provisions of Section 7(d), any dispute, controversy
or claim between the Company Group and a Participant, arising out of or relating to or concerning
this Plan or any Award shall be finally settled by binding arbitration in Colorado before, and in
accordance with the rules then obtaining of, The Nasdaq Stock Market, Inc. (“Nasdaq”) or,
if Nasdaq declines to arbitrate the matter (or if the matter otherwise is not arbitrable by it),
the American Arbitration Association (the “AAA”) in accordance with the

7

 

commercial arbitration rules of the AAA. Prior to arbitration, all claims maintained by a
Participant must first be submitted to the Committee in accordance with claims procedures
determined by the Committee.

     (f) Governing Law. All rights and obligations under this Plan shall be governed by and
construed in accordance with the laws of the State of Colorado, without regard to principles of
conflict of laws.

     (g) Tax Withholding. In connection with any payments to a Participant or other event under
this Plan that gives rise to a federal, state, local or other tax withholding obligation relating
to this Plan (including, without limitation, FICA tax), (i) the Company Group may deduct or
withhold (or cause to be deducted or withheld) from any payment or distribution to such Participant
whether or not pursuant to this Plan or (ii) the Committee shall be entitled to require that such
Participant remit cash (through payroll deduction or otherwise), in each case in an amount
sufficient in the opinion of the Company Group to satisfy the amount required by law to be
withheld.

     (h) Severability. If any of the provisions of this Plan is finally held to be invalid,
illegal or unenforceable (whether in whole or in part), such provision shall be deemed modified to
the extent, but only to the extent, of such invalidity, illegality or unenforceability and the
remaining provisions shall not be affected thereby.

     (i) No Third Party Beneficiaries. This Plan shall not confer on any person other than the
Company Group and any Participant any rights or remedies hereunder.

     (j) Successors and Assigns. The terms of this Plan shall be binding upon and inure to the
benefit of the Company Group and its successors and assigns and each permitted successor or assign
of each Participant as provided in Section 7(b).

     (k) Plan Headings. The headings in this Plan are for the purpose of convenience only and are
not intended to define or limit the construction of the provisions hereof.

     (l) Construction. In the construction of this Plan, the singular shall include the plural,
and vice versa, in all cases where such meanings would be appropriate.

     (m) Effective Date. This Plan shall become effective immediately prior to the effective date
(the “Effective Date”) of an initial underwritten public offering of the Company’s equity
securities pursuant to an effective Form S-1 registration statement filed under the Securities Act
of 1933, as amended.

     (n) Section 409A of the Code. The Company Group intends that Bonus payments under this Plan
shall be exempt from Section 409A of the Code as short-term deferrals and shall not constitute
“deferred compensation” within the meaning of Section 409A of the Code (absent a valid deferral
election under the terms of another plan or arrangement maintained by the Company Group). This
Plan shall be interpreted, construed and administered in accordance with the foregoing intent, so
as to avoid the imposition of taxes and penalties on Participants pursuant to Section 409A of the
Code. The Company Group shall have no liability to any Participant or

8

 

otherwise if this Plan or any Bonus paid or payable hereunder is subject to the additional tax
and penalties under Section 409A of the Code.

     (o) No Funding. The Company Group shall be under no obligation to fund or set aside amounts
to pay obligations under this Plan. Participants shall have no rights to any amounts under this
Plan other than as a general unsecured creditor of the Company Group.

     (p) No Rights to Other Payments; No Limitation on Other Payments. The provisions of this Plan
provide no right or eligibility to a Participant to any other payouts from the Company Group under
any other alternative plans, schemes, arrangements or contracts the Company Group may have with any
employees or group of employees of the Company Group. Nothing in this Plan shall preclude or limit
the ability of the Company Group to pay any compensation to a Participant under any other plan or
compensatory arrangement whether or not in effect on the date this Plan was adopted.

     (q) No Effect on Benefits. Awards and payments under this Plan shall constitute special
discretionary incentive payments to the Participants and shall not be required to be taken into
account in computing the amount of salary or compensation of the Participants for the purpose of
determining any contributions to or any benefits under any pension, retirement, profit-sharing,
bonus, life insurance, severance or other benefit plan of the Company Group or under any agreement
with a Participant, unless the Company Group or such other arrangement specifically provides
otherwise.

     (r) Term of Plan. This Plan shall continue until suspended, discontinued or terminated by the
Board or the Committee in its sole discretion. No Award shall be granted based on the business
criteria set forth in Section 5(b) on or after the first stockholder meeting that occurs after the
close of the third (3rd) calendar year following the calendar year in which the
Effective Date occurs, unless the stockholders of the Company re-approve the business criteria on
or before such stockholder meeting.

* * *

9

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