Document:

exv10w3

 

Exhibit 10.3

February 22, 2008

VIA HAND DELIVERY

Mr. Hollings C. Renton

Onyx Pharmaceuticals, Inc.

2100 Powell Street

Emeryville, CA 94608

Re: Retirement Agreement

Dear Hollings:

This letter sets forth the terms of the retirement agreement (the “Agreement”) that Onyx
Pharmaceuticals, Inc. (the “Company”) is offering to you to facilitate your retirement from the
Company:

     1. Retirement Date. On March 31, 2008, as you have indicated to the Company, you will retire
from your position as President and Chief Executive Officer and from any other employment-related
office or employment-related position you hold with the Company, and your employment with the
Company will end (the “Retirement Date”). Until the Retirement Date, you will continue to use
reasonably diligent efforts to perform your assigned duties and responsibilities, and continue to
report to the Company’s Board of Directors (the “Board”). During your continued employment through
the Retirement Date, you will receive your regular base salary payments and benefits which you
currently receive. Of course, you must continue to comply with all of the Company’s policies and
procedures during your continued employment and the Board retains the discretion to accelerate the
Retirement Date if you willfully breach in any material way any Company policies or procedures, or
any of your other obligations to the Company, in any such event, after you are given written notice
of the breach in reasonable detail and, if curable, a reasonable opportunity to cure. In addition,
as you have indicated to the Company, effective as of the Retirement Date, you will resign your
position as a director on the Board and the Company will accept that resignation, which will be
reflected in a signed resignation letter to the Board substantially in the form attached hereto as
Exhibit C.

     2. Accrued Salary and Vacation. On the Retirement Date, the Company will pay you all accrued
salary, and all accrued and unused vacation earned through the Retirement Date, subject to standard
payroll deductions and withholdings. You are entitled to these payments by law.

     3. Retirement Benefits. If you: (a) timely sign, and date this Agreement, and allow it to
become effective; and (b) sign and date the Retirement Date Release attached hereto as

 

 

Mr. Hollings C. Renton
February 22, 2008
Page 2

Exhibit A on or within 21 days after the Retirement Date, and allow the Retirement Date
Release to become effective; then the Company will provide you with the following retirement
benefits (the “Retirement Benefits”):

          (a) Retirement Payment. The Company will make a single lump sum retirement payment (the
“Retirement Payment”) of $1,045,000. The Retirement Payment will be subject to required payroll
deductions and withholdings, and will be paid within two (2) business days after the Effective Date
of the Retirement Date Release (as defined in Exhibit A).

          (b) Insurance Benefits. As provided by the federal COBRA law and comparable state insurance
laws (collectively, “COBRA”), and by the Company’s current group health insurance policies, you
will be eligible to continue your current group health insurance benefits at your own expense for a
period of time following the Retirement Date and, later, to convert to an individual policy if you
wish. You will be provided with a separate notice of your COBRA rights and obligations on or after
the Retirement Date. If you timely elect continued coverage under COBRA, as part of this
Agreement, the Company will reimburse your COBRA premiums (including cost of dependent coverage, if
applicable) sufficient to continue your current level of health insurance coverage (including group
medical, dental and vision insurance coverage) for a period of twelve (12) months from the
Retirement Date provided that you remain eligible for COBRA coverage. The Company also will
reimburse you for your documented premiums for your current level of life insurance coverage for
twelve (12) months from the Retirement Date, up to the premium amounts paid by the Company
currently for such insurance coverage.

          (c) Administrative Support. For the twelve (12) month period following the Retirement Date,
the Company will pay up to a maximum amount of $80,000 for reasonable administrative support
services for you, provided by an independent contractor you select, subject to the approval of the
Company which shall not be unreasonably withheld, who will provide such administrative services at
your direction. Payments will be made directly to the independent contractor in response to
invoices specifying the services provided.

          (d) D&O Insurance. The Company covenants that, so long as it maintains any D&O insurance for
any of its officers or directors, you shall at all times be covered by such insurance, whether as a
current officer and director until the Retirement Date, or as a former officer or director or
otherwise after the Retirement Date, with coverage equivalent to the coverage afforded the
Company’s officers and directors at the time; provided, however, that you shall receive such D&O
insurance coverage only for the same period of time as the period for which you are entitled to
indemnification under the terms of your Indemnification Agreement with the Company dated May 7,
1996 (the “Indemnification Agreement,” attached hereto as Exhibit D). The Indemnification
Agreement is incorporated by reference herein; it is not superseded or modified by this Agreement;
and it will continue in full force and effect after the Effective Date of this Agreement.

     4. Consulting Agreement. You will serve as a consultant to the Company under the terms
specified below, commencing on the Retirement Date and continuing through the

 

 

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February 22, 2008
Page 3

earlier of the following (the “Consulting Period”): (a) three (3) years and one day after the
Retirement Date; (b) ten (10) days after you give written notice of termination of the Consulting
Period in your discretion, at any time following three (3) months after the commencement of the
Consulting Period; or (c) the date that the Company terminates the Consulting Period due to any
willful material breach by you of this Agreement or the Proprietary Information Agreement (as
defined in Section 4(d)), in any such event, after you are given written notice of the breach in
reasonable detail and, if curable, a reasonable opportunity to cure.

          (a) Consulting Services. You agree to provide consulting services to the Company in any area
of your expertise upon request by the Chief Executive Officer (“CEO”) of the Company. During the
Consulting Period, you will report directly to the CEO, or as otherwise specified by the CEO. You
agree to exercise a reasonable degree of professionalism and utilize your expertise and creative
talents in performing these services. For the first three (3) months after the Retirement Date,
your consulting services will include providing transition assistance and briefing to the CEO for
up to a maximum of forty (40) hours per month. During the remaining portion of the Consulting
Period, you agree: (i) to make yourself available to provide up to ten (10) hours of consulting
services per month as requested by the CEO; and (ii) to research and prepare written reports to the
CEO on a quarterly basis concerning applicable market trends, scientific and commercial
opportunities, and the competitive environment (the “Quarterly Reports”).

          (b) Consulting Fees and Benefits.

               (i) Consulting Fees. During the Consulting Period, you will be paid consulting fees of
$625.00 per hour (“Consulting Fees”) for each hour or portion thereof that you actually provide
consulting services to the Company as described in Section 4(a). You shall invoice these fees (and
any legitimate out-of-pocket expenses you incur in good faith in providing Consulting Services to
the Company) to the Company as often as monthly, and the Company shall pay you such fees and
expenses within fifteen (15) days after receipt of each such invoice.

               (ii) Independent Contractor Relationship. During the Consulting Period, your consulting
relationship with the Company will be that of an independent contractor, and nothing in this
Agreement is intended to, or should be construed to, create a partnership, agency, joint venture or
employment relationship. As an independent contractor, during the Consulting Period you will not
be entitled to, and will not receive, except as expressly set forth otherwise herein, any of the
benefits which the Company may make available to its employees, including, but not limited to,
group health or life insurance, profit-sharing, 401(k) Plan matching contributions, or retirement
benefits, other than any rights you may otherwise have with respect to such benefits due to your
status as a former employee including your rights to continued group health insurance coverage
pursuant to COBRA.

               (iii) Taxes and Withholding. You are solely responsible for, and will file, on a timely
basis, all tax returns and payments required to be filed with, or made to, any federal, state or
local tax authority with respect to the performance of consulting services and

 

 

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February 22, 2008
Page 4

receipt of Consulting Fees under this Agreement. You are solely responsible for, and must
maintain adequate records of, expenses incurred in the course of performing services under this
Agreement. The Company will not withhold from the Consulting Fees any amount for taxes, social
security or other payroll deductions. The Company will regularly report the Consulting Fees paid
to you by filing Form 1099-MISC with the Internal Revenue Service as required by law. You hereby
acknowledge that you will be entirely responsible for payment of any such taxes.

               (iv) Stock Option. Your outstanding stock options and restricted stock awards (the “Equity
Awards”) will continue to vest during the Consulting Period, provided that you remain in compliance
with the terms of this Agreement. You will have one (1) year to exercise any vested shares
following the end of the Consulting Period, provided, however, that in no event will any exercise
period be extended beyond the original term of the applicable option grant. The Equity Awards
which are options that vest during the Consulting Period will cease being incentive stock options
under Section 422 of the Internal Revenue Code due to the extension of your vesting period beyond
your employment termination. The Company represents and warrants to you that the applicable equity
plan documents and agreements allow for and do not prohibit the continued vesting and additional
time to exercise provided in this Agreement.

          (c) Limitations on Authority. You will have no responsibilities or authority as a consultant
to the Company other than as provided above. As a consultant, you agree not to represent or
purport to represent the Company in any manner whatsoever to any third party unless expressly
authorized by the CEO or Board, in writing, to do so.

          (d) Proprietary Information and Inventions. You agree that Sections 1, 4 and 5 (excluding the
second paragraph of Section 5) of the Proprietary Information, Inventions and Non-Solicitation
Agreement between you and the Company dated March 30, 1993 (the “Proprietary Information Agreement”
a copy of which is attached hereto as Exhibit B) shall govern any Company information to which you
have access or which you develop, or inventions made by you, while performing consulting services
during the Consulting Period.

          (e) Other Work Activities. Throughout the Consulting Period, you retain the right to engage
in employment, consulting, or other work relationships in addition to your work for the Company,
provided that such other employment, consulting, or work relationships do not interfere in any
material way with your continuing obligations to the Company or otherwise create a material
conflict of interest with the Company; provided, however, that (a) you may continue your service on
the Boards on which you currently serve, and (b) you may undertake any such activity with the prior
written approval of the Company, which approval shall not be unreasonably withheld. The Company
will make reasonable arrangements to enable you to perform your work for the Company at such times
and in such a manner so that it will not interfere with other activities in which you may engage.
If you willfully and materially breach Section 4(e) or the Proprietary Information Agreement, in
any such event, after you are given written notice of the breach in reasonable detail and, if
curable, a reasonable opportunity to cure,

 

 

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February 22, 2008
Page 5

then, in addition to any other remedies, the Company’s obligation to pay you Consulting Fees
will cease immediately, the Company will have the right to terminate the Consulting Period as
provided in Section 4 of this Agreement, and you will not receive option vesting after the date of
your material breach.

     5. Other Compensation or Benefits. You acknowledge that, except as expressly provided in this
Agreement, you have not earned and will not receive from the Company any additional compensation,
including but not limited to salary or bonuses, severance or employee benefits during your
continued employment or after the Retirement Date. By way of example, but not limitation, you
acknowledge and agree that you are not eligible for any bonus compensation for 2008. You further
acknowledge and agree that you are not currently entitled to receive any Change in Control
severance benefits (including without limitation any accelerated vesting of your stock options
provided for in your stock option agreements or the Company’s stock option plan). In addition, you
agree that the Executive Change in Control Severance Benefits Agreement between you and the Company
remains effective through the Retirement Date and terminates thereafter.

     6. Proprietary Information Obligations. You acknowledge and reaffirm your obligations under
your Proprietary Information Agreement which continue during your continued employment, and both
during and after the Consulting Period.

     7. Return of Company Property. You agree to return to the Company, on the Retirement Date or
earlier if requested by the Company, all Company documents (and all copies thereof) and other
property of the Company in your possession or control, including, but not limited to, Company
files, notes, correspondence, memoranda, notebooks, drawings, records, reports, lists, compilations
of data, proposals, agreements, drafts, minutes, studies, plans, forecasts, purchase orders,
financial and operational information, product and training information, research and development
information, contact lists or directories, sales and marketing information, personnel and
compensation information, vendor information, promotional literature and instructions, product
specifications and manufacturing information, computer-recorded information, electronic information
(including e-mail and correspondence), other tangible property and equipment (including, but not
limited to, computer equipment, facsimile machines, and cellular telephones), credit cards, entry
cards, identification badges and keys; and any materials of any kind that contain or embody any
proprietary or confidential information of the Company (and all reproductions thereof in whole or
in part); provided, however, that you may keep the Company’s laptop computer and Blackberry
provided to you by the Company (collectively, the “Computer Equipment”), and the Company transfers
its ownership rights in such Computer Equipment to you effective as of the Effective Date of the
Retirement Date Release. The Computer Equipment is provided in its “as is” condition and without
warranty or guarantee of any kind. You agree that you will make a diligent and timely search to
locate any such documents, property and information. In addition, with respect to any personally
owned computer, server, or e-mail system, or the Computer Equipment, which you have used to
receive, store, review, prepare or transmit any Company confidential or proprietary data, materials
or information, then you agree to provide the Company, no later than the

 

 

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February 22, 2008
Page 6

Retirement Date, with a computer-useable copy of all such information and then permanently
delete and expunge such Company confidential or proprietary information from those systems without
retaining any reproductions (in whole or in part); and you agree to provide the Company access to
your system and the Computer Equipment as requested to verify that the necessary copying and/or
deletion is done. Your timely compliance with this Section 7 is a precondition to your eligibility
for the Retirement Benefits. Notwithstanding the foregoing, you will not be required to return, on
the Retirement Date, any documents or other property that you determine in your reasonable judgment
you need to retain for your use in connection with your consulting relationship with the Company,
which you must identify in written form and provide to the CEO to approve for your retention (which
approval will not be unreasonably withheld), provided, however, that any such retained documents
and property (with the exception of the Computer Equipment) must be immediately returned upon
termination of the Consulting Period or any earlier written demand by the CEO.

     8. Nonsolicitation. You agree that during your continued employment and the Consulting
Period, and for one year following the termination of the Consulting Period, you will not, either
directly or through others, solicit or attempt to solicit any employee, consultant, or independent
contractor of the Company to terminate his or her relationship with the Company in order to become
an employee, consultant or independent contractor to or for any other person or entity.

     9. Nondisparagement. You agree not to disparage the Company or the Company’s officers,
directors, employees, shareholders, parents, subsidiaries, affiliates, and agents, in any manner
likely to be harmful to them or their business, business reputation or personal reputation, and the
Company (through its officers and directors) agrees not to disparage you in any manner likely to be
harmful to your business, business reputation or personal reputation; provided that the parties may
respond accurately and fully to any question, inquiry or request for information when required by
legal process

     10. Dispute Resolution. To aid in the rapid and economical resolution of any disputes which
may arise under this Agreement, you and the Company agree that any and all claims, disputes or
controversies of any nature whatsoever arising from or regarding the interpretation, performance,
negotiation, execution, enforcement or breach of this Agreement, your employment, or the
termination of your employment, including but not limited to any statutory claims, shall be
resolved by confidential, final and binding arbitration conducted before a single arbitrator with
JAMS, Inc. (“JAMS”) in San Francisco, California, in accordance with JAMS’ then-applicable
arbitration rules. The parties acknowledge that by agreeing to this arbitration procedure, they
waive the right to resolve any such dispute through a trial by jury, judge or administrative
proceeding. You will have the right to be represented by legal counsel at any arbitration
proceeding. The arbitrator shall: (a) have the authority to compel adequate discovery for the
resolution of the dispute and to award such relief as would otherwise be available under applicable
law in a court proceeding; and (b) issue a written statement signed by the arbitrator regarding the
disposition of each claim and the relief, if any, awarded as to each claim, the reasons for the
award, and the arbitrator’s essential findings and conclusions on which

 

 

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February 22, 2008
Page 7

the award is based. The Company shall bear JAMS’ arbitration fees and administrative costs.
Nothing in this Agreement shall prevent either you or the Company from obtaining injunctive relief
in court to prevent irreparable harm pending the conclusion of any such arbitration. Any awards or
orders in such arbitrations may be entered and enforced as judgments in the federal and state
courts of any competent jurisdiction. The arbitrator, and not a court, shall be authorized to
determine whether the provisions of this paragraph apply to a dispute, controversy or claim sought
to be resolved in accordance with these arbitration procedures.

     11. No Voluntary Adverse Action. You agree that you will not voluntarily (except in response
to legal compulsion) assist any person in bringing or pursuing any proposed or pending litigation,
arbitration, administrative claim or other formal proceeding against the Company, its parent or
subsidiary entities, affiliates, officers, directors, employees or agents, provided, however, that
you are not hereby precluded from bringing any such an action on your own behalf with respect to
any Excluded Claims (as defined in Section 15).

     12. Cooperation. You agree to cooperate fully with the Company in connection with its actual
or contemplated defense, prosecution, or investigation of any claims or demands by or against third
parties, or other matters arising from events, acts, or failures to act that occurred during the
period of your employment by the Company. Such cooperation includes, without limitation, making
yourself available to the Company upon reasonable notice, without subpoena, to provide complete,
truthful and accurate information in witness interviews, depositions, and trial testimony. The
Company will reimburse you for reasonable out-of-pocket expenses you incur in connection with any
such cooperation (excluding foregone wages, salary, or other compensation) and will make reasonable
efforts to accommodate your scheduling needs. In addition, you agree to execute all documents (if
any) necessary to carry out the terms of this Agreement.

     13. Disclosure of Agreement. You hereby acknowledge and agree that this Agreement and a
description of the terms set forth herein will be filed by the Company with the Securities and
Exchange Commission pursuant to its obligations as a reporting company under the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, and
consequently shall be publicly available. The Company will prepare a press release regarding your
retirement for your approval (which shall not be unreasonably withheld), and all public statements
regarding your retirement shall have substantially the same tone and substance as the press
release.

     14. No Admissions. Nothing contained in this Agreement shall be construed as an admission by
you or the Company of any liability, obligation, wrongdoing or violation of law.

     15. General Release. In exchange for the consideration provided to you by this Agreement that
you are not otherwise entitled to receive, you hereby generally and completely release, acquit and
forever discharge the Company, and its parent, subsidiary, and affiliated entities, along with its
and their predecessors and successors and their respective directors, officers, employees,
shareholders, stockholders, partners, agents, attorneys, insurers, affiliates and assigns
(collectively, the “Released Parties”), of and from any and all claims, liabilities and

 

 

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February 22, 2008
Page 8

obligations, both known and unknown, that arise from or are in any way related to events,
acts, conduct, or omissions occurring at any time prior to and including the date that you sign
this Agreement (collectively, the “Released Claims”). The Released Claims include, but are not
limited to: (a) all claims arising out of or in any way related to your employment with the
Company, or the termination of that employment; (b) all claims related to your compensation or
benefits from the Company, including salary, bonuses, commissions, other incentive compensation,
vacation pay and the redemption thereof, expense reimbursements, severance payments, fringe
benefits, stock, stock options, or any other ownership or equity interests in the Company; (c) all
claims for breach of contract, wrongful termination, and breach of the implied covenant of good
faith and fair dealing; (d) all tort claims, including but not limited to claims for fraud,
defamation, emotional distress, and discharge in violation of public policy; and (e) all federal,
state, and local statutory claims, including but not limited to claims for discrimination,
harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights
Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990 (as amended), the
federal Age Discrimination in Employment Act of 1967 (as amended) (the “ADEA”), and the California
Fair Employment and Housing Act (as amended). Notwithstanding the foregoing, the following are not
included in the Released Claims (the “Excluded Claims”): (a) any rights or claims for
indemnification you may have pursuant to any written indemnification agreement with the Company to
which you are a party (including but not limited to the Indemnification Agreement), the charter,
bylaws, or operating agreements of the Company, or under applicable law; (b) any rights which are
not waivable as a matter of law; (c) any claims arising from this Agreement or any breach of this
Agreement; (d) any vested or vesting rights under any Company pension, retirement, equity or other
benefit plans, (e) claims for health and other insurance benefits based on claims already submitted
or which are covered claims properly submitted in the future, or (f) claims arising out of events,
acts or omissions after the date you sign this Agreement. In addition, nothing in this Agreement
prevents you from filing, cooperating with, or participating in any investigation or proceeding
before the Equal Employment Opportunity Commission, the Department of Labor, the California
Department of Fair Employment and Housing, or any other government agency, except that you hereby
waive your right to any monetary benefits in connection with any such claim, charge, investigation
or proceeding. You hereby represent and warrant that, other than the Excluded Claims, you are not
aware of any claims you have or might have against any of the Released Parties that are not
included in the Released Claims.

     16. ADEA Waiver. You hereby acknowledge that you are knowingly and voluntarily waiving and
releasing any rights you may have under the ADEA, and that the consideration given for the waiver
and release you have given in this Agreement is in addition to anything of value to which you were
already entitled. You further acknowledge that: (a) your waiver and release do not apply to any
rights or claims that may arise after the date you sign this Agreement; (b) you should consult with
an attorney prior to signing this Agreement (although you may voluntarily decide not to do so); (c)
you have twenty-one (21) days to consider this Agreement (although you may choose voluntarily to
sign this Agreement sooner); (d) you have seven (7) days following the date you sign this Agreement
to revoke this Agreement (in a written revocation sent to and received by the Company’s Chief
Executive Officer); and (e) this

 

 

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February 22, 2008
Page 9

Agreement will not be effective until the date upon which the revocation period has expired,
which will be the eighth day after you sign this Agreement, provided that you do not revoke it (the
“Effective Date”).

     17. Section 1542 Waiver. In giving the release herein, which includes claims which may be
unknown to you at present, you acknowledge that you have read and understand Section 1542 of the
California Civil Code, which reads as follows:

A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if
known by him or her must have materially affected his or her settlement with the
debtor. 

(California Civil Code section 1542)

You hereby expressly waive and relinquish all rights and benefits under that section and any law or
legal principle of similar effect in any jurisdiction with respect to your release of claims in
this Agreement, including your release of unknown and unsuspected claims.

     18. Entire Agreement. This Agreement, including all exhibits, constitutes the complete, final
and exclusive embodiment of the entire agreement between you and the Company with regard to the
subject matter hereof. It supersedes any and all other agreements entered into by and between you
and the Company on its subject matter. It is entered into without reliance on any promise or
representation, written or oral, other than those expressly contained herein. It may not be
modified except in a written agreement approved by the Board and signed by you and a duly
authorized officer of the Company. Each party has carefully read this Agreement, has been afforded
the opportunity to be advised of its meaning and consequences by his or its respective attorneys,
and signed the same of his or its own free will. Any ambiguity in this Agreement shall not be
construed against either party as the drafter.

     19. Attorneys’ Fees. If either you or the Company brings any action to enforce rights under
this Agreement, the party successful in enforcing this Agreement shall be entitled to recover
reasonable attorneys’ fees and costs (including in collection and on appeal) incurred by that party
in connection with such action.

     20. Successors and Assigns. This Agreement will bind the heirs, personal representatives,
successors, assigns, executors and administrators of each party, and will inure to the benefit of
each party, its heirs, successors and assigns. The Company agrees to obtain the assumption of this
Agreement by any successor or assign of the Company. Any failure by the Company to obtain such
assumption shall be a material breach which automatically accelerates the vesting of all of your
unvested Equity Awards.

     21. Applicable Law. This Agreement will be deemed to have been entered into and will be
construed and enforced in accordance with the laws of the State of California without regard to
conflict of laws principles.

 

 

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February 22, 2008
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     22. Severability; Waiver of Breach. If any provision of this Agreement is determined to be
invalid or unenforceable, in whole or in part, this determination will not affect any other
provision of this Agreement and the provision in question shall be deemed modified so as to be
rendered enforceable in a manner consistent with the intent of the parties, insofar as possible
under applicable law. Any waiver of a breach of this Agreement, or rights hereunder, shall be in
writing and shall not be deemed to be a waiver of any successive breach or rights hereunder.

     23. Counterparts. This Agreement may be executed in two counterparts, each of which will be
deemed an original, all of which together constitutes one and the same instrument. Facsimile
signatures are as effective as original signatures.

If this Agreement is acceptable to you, please sign below within twenty-one (21) days of your
receipt of this Agreement, and return the fully signed original to me. If you do not sign this
Agreement within the aforementioned timeframe and promptly return it to me, then the Company’s
offer of Retirement Benefits contained herein will expire.

We wish you the best in your retirement, and look forward to continuing to work with you prior to
and during the Consulting Period.

Sincerely,

	 	 	 	 	 
	Onyx Pharmaceuticals, Inc.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Paul Goddard
 

     Paul Goddard, Chairman
	 	 
	 	 	     Compensation Committee, Board of Directors

Exhibit A — Retirement Date Release

Exhibit B — Proprietary Information, Inventions and Non-Solicitation Agreement

Exhibit C — Form of Board Resignation Letter

Exhibit D — Indemnification Agreement

	 	 	 
	Understood and Agreed:
	 	 
	 
	     /s/ Hollings C. Renton
 

Hollings C. Renton

	 	 
	 
	 	 
	Date: February 22, 2008
	 	 

 

 

Exhibit A

RETIREMENT DATE RELEASE

(To be signed on or within 21 days after the Retirement Date)

     Pursuant to the terms of the Retirement Agreement (the “Agreement”) between Onyx
Pharmaceuticals, Inc. (the “Company”) and me dated February 22, 2008, and as a condition of the
Retirement Benefits to be provided to me under the Agreement, I hereby provide the following
Retirement Date Release (the “Release”). I understand that I am not entitled to the Retirement
Benefits unless I timely sign this Release and allow it to become effective.

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

A-1

 

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

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

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

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

	 	 	 	 	 
	Understood and Agreed:	 	 
	 
	 	 	 	 
	 	 	 
	Hollings C. Renton	 	 
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 

A-2

 

Exhibit B

PROPRIETARY INFORMATION, INVENTIONS AND NON-SOLICITATION AGREEMENT

B-1 

 

Exhibit C

FORM OF BOARD RESIGNATION LETTER

March 31, 2008

Board of Directors

Onyx Pharmaceuticals, Inc.

2100 Powell Street

Emeryville, CA 94608

Re: Resignation of Director Position

To the Board:

This letter confirms my resignation from my position as a director on the Board of Directors of
Onyx Pharmaceuticals, Inc., effective March 31, 2008. I am extremely honored and pleased to have
been a member of the Board for the previous fifteen years, and to have worked with all of you as a
member of the Onyx Pharmaceuticals team during my long tenure with the Company.

My best wishes for the continued success of the Company, and I look forward to assisting with the
Company’s future successes in my new role as a consultant to the Company.

	 	 	 	 	 
	Sincerely,	 	 
	 
	 	 	 	 
	 	 	 
	Hollings C. Renton	 	 

C-1 

 

Exhibit D

INDEMNIFICATION AGREEMENT

D-1EX-10.44

 

Exhibit 10.43

 NACCO Industries, Inc.

SUPPLEMENTAL ANNUAL INCENTIVE COMPENSATION PLAN

(Amended and Restated Effective January 1, 2008)

1. Purpose of the Plan

     The purpose of the NACCO Industries, Inc. Supplemental Annual Incentive Compensation Plan
(Amended and Restated as of January 1, 2008) (the “Plan”) is to further the profits and growth of
NACCO Industries, Inc. (the “Company”) by enabling the Company to attract and retain key employees
of the Company by offering annual incentive compensation to those key employees who will be in a
position to help the Company to meet its financial and business objectives.

2. Definitions

	 	(a)	 	“Award” means cash paid to a Participant under this Plan for any Award Term in
an amount determined in a manner not inconsistent with the terms hereof.
	 
	 	(b)	 	“Award Term” means the calendar year.
	 
	 	(c)	 	“Committee” means the Compensation Committee of the Company’s Board of
Directors or any other committee appointed by the Company’s Board of Directors to
administer this Plan in accordance with Section 3, so long as any such committee
consists of not less than two directors of the Company and so long as each member of
the Committee is an “outside director” for purposes of Section 162(m).
	 
	 	(d)	 	“Covered Employee” means any Participant who is a “covered employee” for
purposes of Section 162(m) or any Participant who the Committee determines in its sole
discretion could become a “covered employee.”
	 
	 	(e)	 	“Participant” means any person who is classified as a salaried employee of the
Company who, in the judgment of the Committee, occupies a key position in which his
efforts may significantly contribute to the profits or growth of the Company.
Employees of the Company’s subsidiaries shall not be eligible to participate in this
Plan.
	 
	 	(f)	 	“Payment Period” means the period from January 1st through March
15th of the calendar year following the end of an Award Term.
	 
	 	(g)	 	“Retire” means a termination of employment that entitles the Participant to
immediate commencement of his pension benefits under The Combined Defined

1

 

	 	 	 	Benefit Plan of NACCO Industries, Inc. and Its Subsidiaries or, for Participants who
are not members of such plan, a termination of employment after reaching age 60 with
at least 15 years of service with the Company.
	 
	 	(h)	 	“Section 162(m)” means Section 162(m) of the Internal Revenue Code of 1986, as
amended, or any successor provision.
	 
	 	(i)	 	“Target Award” means a dollar amount equal to the amount of cash to be paid to
a Participant under the Plan assuming that all performance targets are met.

3. Administration

     This Plan shall be administered by the Committee. The Committee shall have complete authority
to interpret all provisions of this Plan consistent with law, to prescribe the form of any
instrument evidencing any Target Award or Award under this Plan, to adopt, amend and rescind
general and special rules and regulations for its administration, and to make all other
determinations necessary or advisable for the administration of this Plan. Notwithstanding the
foregoing, no such action may be taken by the Committee that would cause any Awards made to a
Participant who is a Covered Employee to be includable as “applicable employee remuneration” of
such Participant. A majority of the Committee shall constitute a quorum, and the action of members
of the Committee present at any meeting at which a quorum is present, or acts unanimously approved
in writing, shall be the act of the Committee. All acts and decisions of the Committee with
respect to any questions arising in connection with the administration and interpretation of this
Plan, including the severability of any or all of the provisions hereof, shall be conclusive, final
and binding upon the Company and all present and former Participants, all other employees of the
Company, and their respective descendants, successors and assigns. No member of the Committee
shall be liable for any such act or decision made in good faith.

4. Eligibility

     Each Participant, including directors of the Company who are also salaried employees of the
Company, shall be eligible to participate in this Plan and receive Awards in accordance with
Section 5; provided, however, that (a) a Participant must be actively employed by the Company on
December 31st of the Award Term (or die, become permanently disabled or Retire during
such Award Term) in order to be eligible to receive an Award for such Award Term and (b) the Award
of a Participant who is employed on December 31st of an Award Term but is not employed
for the entire Award Term shall be paid in a pro-rated amount based on the number of days the
Participant was actually employed by the Company during such Award Term. Notwithstanding the
foregoing, the Committee shall have the discretion to grant an Award to a Participant who does not
meet the foregoing requirements; provided that no such action may be taken by the Committee that
would cause any Awards made to a Covered Employee to be includable as “applicable employee
remuneration” of such Participant, as such term is defined in Section 162(m).

2

 

5. Awards

     The Committee may, from time to time and upon such conditions as it may determine, authorize
the payment of Awards to Participants, which shall be not inconsistent with, and shall be subject
to all of the requirements of, the following provisions:

	 	(a)	 	Not later than the ninetieth day of each Award Term and prior to the completion
of 25% of such Award Term, the Committee shall approve (i) a Target Award to be granted
to each Participant and (ii) one or more performance targets and formulas for
determining the amount of each Award. Performance targets shall be based upon the
return on total capital employed, return on equity, return on tangible assets employed,
economic value income, net income, market share, sales development or support costs of
the Company and/or its subsidiaries; provided, however, that performance targets that
are used in the Plan will not be used in the Company’s Annual Incentive Compensation
Plan for the same Award Term.
	 
	 	(b)	 	Prior to the end of the Payment Period, the Committee shall approve (i) a
preliminary calculation of the amount of each Award based upon the application of the
formula and actual performance to the Target Awards previously determined in accordance
with Section 5(a); and (ii) a final calculation of the amount of each Award to be paid
to each Participant for the Award Term. Such approval shall be certified by the
Committee before any Award is paid with respect to the Award Term. Notwithstanding the
foregoing, (1) the Committee shall have the power to decrease the amount of any Award
below the amount determined in accordance with Section 5(b)(i); (2) the Committee shall
have the power to increase the amount of any Award above the amount determined in
accordance with Section 5(b)(i); provided, however, that no such increase or change may
be made that would cause any amount paid to a Participant who is a Covered Employee to
be includable as “applicable employee remuneration” of such Participant, as such term
is defined in Section 162(m) and (3) no Award, including any Award equal to the Target
Award, shall be payable under the Plan to any Participant except as determined by the
Committee.
	 
	 	(c)	 	Promptly following the determination of Awards for the Participants pursuant to
Section 5(b)(ii) and, in any event, prior to the end of the Payment Period, the Company
shall pay the amount of such Awards to the Participants in cash, subject to all
withholdings and deductions pursuant to Section 6.
	 
	 	(d)	 	No Award may be paid for any year to a Participant in excess of $800,000.

6. Withholding Taxes

     Any Award paid to a Participant under this Plan shall be subject to all applicable federal,
state and local income tax, social security and other withholdings and deductions.

3

 

7. Amendment and Termination

     The Committee may alter or amend this Plan from time to time or terminate it in its entirety;
provided, however, that no such action shall, without the consent of a Participant, affect the
rights in an outstanding Award of such Participant that was previously approved by the Committee
for an Award Term but has not been paid; and further provided, however, that no amendment may be
made that would cause any amount paid to a Participant who is a Covered Employee to be includable
as “applicable employee remuneration” of such Participant, as such term is defined in Section
162(m).

8. General Provisions

	 	(a)	 	No Right of Employment. Neither the adoption or operation of this Plan, nor
any document describing or referring to this Plan, or any part thereof, shall confer
upon any employee any right to continue in the employ of the Company, or shall in any
way affect the right and power of the Company to terminate the employment of any
employee at any time with or without assigning a reason therefor to the same extent as
the Company might have done if this Plan had not been adopted.
	 
	 	(b)	 	Governing Law. The provisions of this Plan shall be governed by and construed
in accordance with the laws of the State of Delaware.
	 
	 	(c)	 	Miscellaneous. Headings are given to the sections of this Plan solely as a
convenience to facilitate reference. Such headings, numbering and paragraphing shall
not in any case be deemed in any way material or relevant to the construction of this
Plan or any provisions thereof. The use of the masculine gender shall also include
within its meaning the feminine. The use of the singular shall also include within its
meaning the plural, and vice versa.
	 
	 	(d)	 	Limitation on Rights of Employees; No Trust. No trust has been created by the
Company for the payment of Awards under this Plan; nor have the employees been granted
any lien on any assets of the Company to secure payment of such benefits. This Plan
represents only an unfunded, unsecured promise to pay by the Companyand a participant
hereunder is a mere unsecured creditor of the Company
	 
	 	(e)	 	Payment to Guardian. If an Award is payable to a minor, to a person declared
incompetent or to a person incapable of handling the disposition of his property, the
Committee may direct payment of such Award to the guardian, legal representative or
person having the care and custody of such minor, incompetent or person. The Committee
may require such proof of incompetency, minority, incapacity or guardianship as it may
deem appropriate prior to the distribution of such Award. Such distribution shall
completely discharge the Company from all liability with respect to such Award.

4

 

	 	(f)	 	Code Section 409A. This Plan is intended to be exempt from the requirements of
Section 409A of the Internal Revenue Code of 1986, as amended, and applicable Treasury Regulations
issued thereunder, and shall be administered in a manner that is consistent with such intent.

9. Approval by Stockholders

     The Plan was approved by the stockholders of the Company effective as of January 1, 2006.

10. Effective Date

     This amended and restated Plan shall become effective as of January 1, 2008.

5

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