Document:

exv10w2

 

Exhibit 10.2

Pharmion Corporation

2006 Employee Stock Purchase Plan

Offering

Adopted by the Board of Directors April 27, 2006

     In this document, capitalized terms not otherwise defined shall have the same definitions of
such terms as in the Pharmion Corporation 2006 Employee Stock Purchase Plan.

1. Grant; Offering Date.

     (a) The Board hereby authorizes a series of Offerings pursuant to the terms of this Offering
document.

     (b) The Initial Offering shall begin on August 1, 2006. The Initial Offering shall end on
January 31, 2007, unless terminated earlier as provided below. Thereafter, an Offering shall begin
on the day after the Purchase Date of the immediately preceding Offering. The first day of an
Offering is that Offering’s “Offering Date.” A “Purchase Date” is the last day of an Offering.
Each Offering shall be six (6) months in duration, with a single Purchase Date.

     (c) Notwithstanding the foregoing: (i) if any Offering Date falls on a day that is not a
Trading Day, then such Offering Date shall instead fall on the next subsequent Trading Day, and
(ii) if any Purchase Date falls on a day that is not a Trading Day, then such Purchase Date shall
instead fall on the immediately preceding Trading Day.

     (d) Prior to the commencement of any Offering, the Board may change any or all terms of such
Offering and any subsequent Offerings. The granting of Purchase Rights pursuant to each Offering
hereunder shall occur on each respective Offering Date unless prior to such date (i) the Board
determines that such Offering shall not occur, or (ii) no shares of Common Stock remain available
for issuance under the Plan in connection with the Offering.

     (e) Offerings after the Initial Offering shall continue on the terms and conditions set forth
herein, with no action required by the Board for such continuance, subject to the Board’s power to
amend this Offering document or the Plan, or suspend or discontinue the Plan or Offerings.

2. Eligible Employees.

     (a) Each Employee of the Company or of a Subsidiary incorporated in the United States on the
Offering Date of an Offering hereunder who has been an Employee of the Company or a Subsidiary for
a continuous period ending on the applicable Offering Date of at least fifteen (15) days (an
“Eligible Employee”), shall be eligible to participate in such Offering.

     (b) Notwithstanding the foregoing, the following Employees shall not be Eligible
Employees or be granted Purchase Rights under an Offering:

 

 

          (i) part-time or seasonal Employees whose customary employment is less than twenty (20) hours
per week or less than five (5) months per calendar year;

          (ii) five percent (5%) stockholders (including ownership through unexercised and/or unvested
stock options) as described in Section 6(c) of the Plan; or

          (iii) Employees of the Company in jurisdictions outside of the United States if, as of the
Offering Date of the Offering, the grant of such Purchase Rights would not be in compliance with
the applicable laws of any jurisdiction in which the Employee resides or is employed.

3. Purchase Rights.

     (a) Subject to the limitations herein and the Plan, unless a lower percentage has been set by
the Board or a committee thereof prior to the commencement of the Offering, a Participant’s
Purchase Right shall permit the purchase of the number of shares of Common Stock purchasable with
up to ten percent (10%) of such Participant’s Earnings paid during the period of such Offering
beginning immediately after such Participant first commences participation; provided, however, that
no Participant may have more than ten percent (10%) of such Participant’s Earnings applied to
purchase shares of Common Stock under all ongoing Offerings under the Plan and all other plans of
the Company and Related Corporations that are intended to qualify as Employee Stock Purchase Plans.

     (b) For Offerings hereunder, “Earnings” means the base compensation paid to an Eligible
Employee, including all salary and wages (including amounts elected to be deferred by such Eligible
Employee, that would otherwise have been paid, under any cash or deferred arrangement or other
deferred compensation program established by the Company or a Related Corporation), but excluding
overtime pay, commissions, sales incentive compensation, bonuses, and other remuneration paid
directly to such Eligible Employee, profit sharing, the cost of employee benefits paid for by the
Company or a Related Corporation, education or tuition reimbursements, imputed income arising under
any Company or Related Corporation group insurance or benefit program, traveling expenses, business
and moving expense reimbursements, income received in connection with stock options, contributions
made by the Company or a Related Corporation under any employee benefit plan, and similar items of
compensation.

     (c) Notwithstanding the foregoing, the maximum number of shares of Common Stock that a
Participant may purchase on any Purchase Date in an Offering shall be such number of shares as has
a Fair Market Value (determined as of the Offering Date for such Offering) equal to (x) $25,000
multiplied by the number of calendar years in which the Purchase Right under such Offering has been
outstanding at any time, minus (y) the Fair Market Value of any other shares of Common Stock
(determined as of the relevant Offering Date with respect to such shares) that, for purposes of the
limitation of Section 423(b)(8) of the Code, are attributed to any of such calendar years in which
the Purchase Right is outstanding. The amount in clause (y) of the previous sentence shall be
determined in accordance with regulations applicable under Section 423(b)(8) of the Code based on
(i) the number of shares previously purchased with respect to such calendar years pursuant to such
Offering or any other Offering

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under the Plan, or pursuant to any other Company or Related Corporation plans intended to
qualify as Employee Stock Purchase Plans, and (ii) the number of shares subject to other Purchase
Rights outstanding on the Offering Date for such Offering pursuant to the Plan or any other such
Company or Related Corporation Employee Stock Purchase Plan.

     (d) The maximum aggregate number of shares of Common Stock available to be purchased by all
Participants under an Offering shall be the number of shares of Common Stock remaining available
under the Plan on the Offering Date. If the aggregate purchase of shares of Common Stock upon
exercise of Purchase Rights granted under the Offering would exceed the maximum aggregate number of
shares available, the Board shall make a pro rata allocation of the shares available in a uniform
and equitable manner.

4. Purchase Price.

     The purchase price of shares of Common Stock under an Offering shall be the lesser of: (i)
eighty-five percent (85%) of the Fair Market Value of such shares of Common Stock on the applicable
Offering Date, or (ii) eighty-five percent (85%) of the Fair Market Value of such shares of Common
Stock on the applicable Purchase Date, in each case rounded up to the nearest whole cent per share.

5. Participation.

     (a) If an Eligible Employee intends to participate in an Offering, such Eligible Employee
shall elect his or her payroll deduction percentage on such enrollment form as the Company
provides. The completed enrollment form must be delivered to the Company prior to the Offering
Date of the applicable Offering, unless a later time for filing the enrollment form is set by the
Company for all Eligible Employees with respect to a given Offering. Payroll deduction percentages
must be expressed in whole percentages of Earnings, with a minimum percentage of one percent (1%)
and a maximum percentage of ten percent (10%). Except as provided in paragraph (e) below with
respect to the Initial Offering, Contributions may be made only by way of payroll deductions.

     (b) Except as provided in paragraph 5(c) below, a Participant may not increase or decrease his
or her participation level during an Offering.

     (c) A Participant may withdraw from an Offering and receive a refund of his or her
Contributions without interest, at any time prior to the end of the Offering, excluding only the
ten (10) day period immediately preceding such Offering’s Purchase Date (or such shorter period of
time determined by the Company and communicated to Participants), by delivering a withdrawal notice
to the Company or a designated Subsidiary in such form as the Company provides. A Participant who
has withdrawn from an Offering shall not again participate in such Offering, but may participate in
subsequent Offerings under the Plan in accordance with the terms of the Plan and the terms of such
subsequent Offerings.

     (d) Notwithstanding the foregoing or any other provision of this Offering document or of the
Plan to the contrary, neither the enrollment of any Eligible Employee in the Plan nor any forms
relating to participation in the Plan shall be given effect until such time as a registration
statement covering the registration of the shares under the Plan that are subject to

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the Offering has been filed by the Company and has become effective. If the provisions of
this Section 5(d) apply to prevent enrollment prior to the first day of an Offering, the Company
shall establish such procedures as will enable the purposes of the Plan to be satisfied while
complying with applicable securities laws. Such procedures may include, for example, allowing
Participants to participate other than by means of payroll deduction and/or allowing Participants
to increase their level of participation during an Offering.

     (e) If an Eligible Employee elects not to authorize payroll deductions for the Initial
Offering, then the Eligible Employee shall not purchase any shares of Common Stock during the
Initial Offering. After the end of the Initial Offering, in order to participate in any subsequent
Offerings, an Eligible Employee must enroll and authorize payroll deductions prior to the
commencement of the Offering, in accordance with Section 5(a) above; provided, however, that once
an Eligible Employee enrolls in an Offering and authorizes payroll deductions (including in
connection with the Initial Offering), the Eligible Employee automatically shall be enrolled for
all subsequent Offerings until he or she elects to withdraw from an Offering pursuant to paragraph
(c) above or terminates his or her participation in the Plan.

6. Purchases.

     Subject to the limitations contained herein, on each Purchase Date, each Participant’s
Contributions (without any increase for interest) shall be applied to the purchase of whole shares,
up to the maximum number of shares permitted under the Plan and the Offering.

7. Notices and Agreements.

     Any notices or agreements provided for in an Offering or the Plan shall be given in writing,
in a form provided by the Company, and unless specifically provided for in the Plan or this
Offering, shall be deemed effectively given upon receipt or, in the case of notices and agreements
delivered by the Company, five (5) days after deposit in the United States mail, postage prepaid.

8. Exercise Contingent on Stockholder Approval.

     The Purchase Rights granted under an Offering are subject to the approval of the Plan by the
stockholders of the Company as required for the Plan to obtain treatment as an Employee Stock
Purchase Plan.

9. Offering Subject to Plan.

     Each Offering is subject to all the provisions of the Plan, and the provisions of the Plan are
hereby made a part of the Offering. The Offering is further subject to all interpretations,
amendments, rules and regulations which may from time to time be promulgated and adopted pursuant
to the Plan. In the event of any conflict between the provisions of an Offering and those of the
Plan (including interpretations, amendments, rules and regulations which may from time to time be
promulgated and adopted pursuant to the Plan), the provisions of the Plan shall control.

4exv10w3

 

Exhibit 10.3

PHARMION CORPORATION

2001 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

(Amended and Restated effective as of June 8, 2006)

          1. Purpose. The Amended and Restated 2001 Non-Employee Director Stock Option Plan
(the “Plan”) is intended to promote the interests of Pharmion Corporation (the “Company”) by
providing equity-based compensation as an inducement to obtain and retain the services of qualified
persons who are neither employees nor officers of the Company to serve as members of the Board of
Directors of the Company (the “Board”) which compensation is tied directly to shareholder return.

          2. Effective Date, Amendments, Duration and Shareholder Approval. Effective as of
June 9, 2006, the Plan amends and restates the Company’s Amended and Restated 2001 Non-Employee
Director Stock Option Plan, adopted by the Board on February 11, 2003 and approved by the
stockholders of the Company on September 23, 2003, which amended and restated the Company’s 2001
Non-Employee Director Stock Option Plan (the “Original Plan”), adopted on April 17, 2001. The
stockholders of the Company approved an amendment to increase the number of shares of Stock that
may be offered under the Plan by an additional 100,000 shares on June 1, 2005, from 375,000 shares
to 475,000 shares. The Plan was further amended and restated effective as of June 8, 2006 to
increase by 2,500 the automatic annual grant to each Non-Employee Director of an option to purchase
shares of Stock, from 5,000 shares to 7,500 shares. The expiration date of the Plan, after which
no awards may be granted hereunder, shall be September 23, 2013; provided, however,
that the administration of the Plan shall continue in effect until all matters relating to the
payment of Awards previously granted have been settled.

          3. Rights to be Granted. Options give an optionee the right for a specified time
period to purchase a specified number of shares of common stock, par value $0.001, of the Company
(the “Stock”). Options granted under the Plan are not intended to be “incentive stock options”
within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

          4. Available Shares. Subject to Section 14 hereof, the aggregate number of shares of
Stock reserved and available for issuance pursuant to awards granted under the Plan is 475,000
shares, as increased annually on the date of each annual meeting of the Company’s stockholders
following an IPO (as defined below) by an amount of shares equal to the lesser of (i) 50,000 shares
of Stock or (ii) such lesser number of shares as determined by the Board. Shares subject to the
Plan are authorized but unissued shares or shares that were once issued and subsequently reacquired
by the Company. If any options granted under the Plan are surrendered before exercise or lapse
without exercise, in whole or in part, the shares reserved therefor revert to and continue to be
available for grant under the Plan.

          5. Administration. The Plan shall be administered by the Board or the Compensation
Committee of the Board or such other committee of the Board comprising of at

 

 

least two people as the Board may appoint to administer the Plan (the entity administering the
plan from time to time is hereafter referred to as the “Committee”). The Committee shall have the
power to construe the Plan, to determine all questions thereunder, and to adopt and amend such
rules and regulations for the administration of the Plan as it may deem desirable.

          6. Award Agreement. Each award granted under the provisions of the Plan shall be
evidenced by an award agreement, in such form as may be approved by the Committee, which agreement
shall be duly executed and delivered on behalf of the Company and by the individual to whom such
award is granted. Each agreement shall contain such terms, provisions, and conditions not
inconsistent with the Plan as may be determined by the Committee.

          7. Eligibility and Limitations. Awards may be granted pursuant to the Plan only to
non-employee members of the Board (each, a “Non-Employee Director”).

          8. Option Price. The exercise price of the Stock covered by the automatic grant of an
option pursuant to Section 8 shall be the “Fair Market Value” of the Stock on the date of grant.
For purposes of the Plan, the Fair Market Value of the Stock as of any date means (i) if the Stock
is listed on a national securities exchange, the closing price on the primary exchange with which
the Stock is listed and traded on the date prior to such date, or, if there is no such sale on that
date, then on the last preceding date on which such a sale was reported; (ii) if the Stock is not
listed on any national securities exchange but is quoted in the NASDAQ National Market System on a
last sale basis, the closing price reported on the date prior to such date, or, if there is no such
sale on that date, then on the last preceding date on which a sale was reported; (iii) if the Stock
is not listed on a national securities exchange nor quoted in the NASDAQ National Market System on
a last sale basis, the amount determined by the Committee to be the fair market value based upon a
good faith attempt to value the Stock accurately and computed in accordance with applicable
regulations of the Internal Revenue Service; or (iv) notwithstanding clauses (i) — (iii) above,
with respect to options granted as of the consummation of an initial public offering (an “IPO”),
the price at which Stock is initially offered to the public in such IPO.

          9. Automatic Grant of Options.

               (a) Catch-Up Grants. Prior to February 11, 2003, pursuant to the terms of the Original Plan,
each Non-Employee Director received an initial grant (an “Original Plan Option”) of an option to
purchase 12,500 (adjusted to take into account the 1 for 4 reverse stock split effective as of
September 25, 2003 (the “Reverse Split”)) shares of Stock either on April 17, 2001, the date of the
adoption of the Original Plan (the “Original Effective Date”), or upon such other date that an
individual became a Non-Employee Director (the date upon which such grant was made, the “Original
Grant Date”). Effective as of February 11, 2003, each Non-Employee Director who has received an
Original Plan Option, other than any Non-Employee Director who has received an option to purchase
shares of Stock pursuant to a consulting or similar arrangement with the Company, shall be
automatically granted, without further action by the Committee, an option to purchase 12,500
(adjusted for the Reverse Split) shares of Stock (a “Catch-Up Option”).

               (b) Initial Grant. Unless action is taken by the Committee to reduce such number, in the
event an individual who was not a Non-Employee Director on February 11,

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2003 subsequently becomes a Non-Employee Director, such Non-Employee Director shall be
automatically granted, on the date upon which such individual first becomes a Non-Employee
Director, without further action by the Committee, an option to purchase 25,000 shares of Stock.

               (c) Annual Grant. Prior to February 11, 2003, pursuant to the terms of the Original Plan, on
the first anniversary of the Original Effective Date, each Non-Employee Director on such date
received a grant of an option to purchase 1,250 (adjusted for the Reverse Split) shares of Stock.
Unless action is taken by the Committee to reduce such number, commencing on the second anniversary
of the Original Effective Date, each year, on the anniversary of the Original Effective Date (or,
if an IPO has occurred, the date of the Company’s Annual Meeting of Stockholders), each
Non-Employee Director shall be automatically granted on such date, without further action by the
Committee, an option to purchase 7,500 shares of Stock.

          10. Period of Option. The options granted hereunder shall expire on a date which is
ten (10) years after the date of grant of the options.

          11. Exercise of Option. Options shall be exercised by the delivery to the Company at
its principal office or at such other address as may be established by the Committee of written
notice of the number of shares of Stock with respect to which the option is being exercised
accompanied by payment in full of the purchase price of such shares. Unless otherwise determined
by the Committee at the time of grant, payment for such shares may be made in cash or by bank check
(acceptable to the Committee) or, in the discretion of the Committee, (i) in shares of Stock
(valued at the Fair Market Value at the time the Option is exercised) having in the aggregate a
value equal to the aggregate exercise price, which either (a) have been held by the Non-Employee
Director for at least six-months, or (b) were acquired from a person other than the Company, (ii)
in other property having a Fair Market Value on the date of exercise equal to the aggregate
exercise price, or (iii) following the date of an IPO, by delivering to the Committee a copy of
irrevocable instructions to a stockbroker to deliver promptly to the Company an amount of sale or
loan proceeds sufficient to pay the aggregate exercise price; provided, however, that the Company
shall not directly or indirectly, extend or maintain credit, or arrange for the extension of
credit, in the form of a personal loan to or for any Non-Employee Director under (iii) above, or
otherwise, in violation of Section 402 of the Sarbanes-Oxley Act of 2002.

          12. Exercisability and Vesting of Shares; Non-Transferability of Options.

               (a) Exercisability. Options automatically granted under the Plan pursuant to Section 8 shall
be immediately exercisable and shall vest in accordance with the applicable vesting provisions
contained in subsection (b) hereof. In the event an optionee elects to exercise an option granted
pursuant to Section 8 which is partially or wholly nonvested, the Stock received in respect of the
nonvested portion of the option (the “Special Restricted Stock”) shall initially be nonvested and
subject to repurchase by the Company upon an optionee’s ceasing to be a member of the Board for any
reason, at the exercise price paid per share, with the Special Restricted Stock vesting, and the
Company’s repurchase right on such Special Restricted Stock lapsing, on the same date or dates that
such nonvested portion of the option would

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otherwise have vested (had it remained unexercised) in accordance with subsection (ii) and
(iii) of subsection 11(b) hereof; provided, however, that in no event shall any additional shares
of Special Restricted Stock vest after the optionee’s cessation from service as a Non-Employee
Director.

               (b) Vesting.

                    (i) Each Original Plan Option and each Catch-Up Option shall vest as to 25% on the Original
Grant Date, and the remainder shall vest ratably on each of the first three anniversaries of the
Original Grant Date.

                    (ii) Each initial grant of options pursuant to Section 8(b) which is granted at any time on or
after February 11, 2003 shall vest ratably on each of the first four anniversaries of the date of
grant of such options.

                    (iii) Each annual grant of options described in Section 8(c) hereof shall vest 100% on the
first anniversary of the date of grant of such options.

               (c) Legend on Certificates. The certificates representing shares of Stock acquired under the
Plan shall carry such appropriate legend, and such written instructions shall be given to the
Company’s transfer agent, as may be deemed necessary or advisable by the Committee or counsel to
the Company.

               (d) Non-Transferability. Unless otherwise determined by the Committee, either at the time of
grant or prior to the time of transfer, options granted pursuant to the Plan shall not be
assignable or transferable other than by will or the laws of descent and distribution, and shall be
exercisable during an optionee’s lifetime only by him.

          13. Termination of Option Rights.

               (a) In the event an optionee ceases to be a member of the Board for any reason, all unvested
options shall be forfeited back to the Company and any then unexercised options granted to such
optionee which were exercisable at the time the optionee ceased to be a member of the Board may be
exercised until the earlier of the last day of the option term or the date that is three months
after the date of such termination as a Board member.

               (b) In addition to the Company’s right to repurchase Special Restricted Stock as described in
Section 11(a), at any time prior to an IPO, in the event an optionee ceases to be a member of the
Board for any reason, the Committee may, in its discretion, and on terms it considers appropriate,
require an optionee, or the executors or administrators of an optionee’s estate, to sell back to
the Company all shares of Stock (other than Special Restricted Stock) at a price equal to the Fair
Market Value at the time of repurchase.

          14. Adjustments Upon Changes in Capitalization and other Matters.

               (a) Awards granted under the Plan, any agreements evidencing such awards and the maximum
number of shares of Stock subject to all awards under the Plan may be

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subject to adjustment or substitution, as determined by the Committee in its sole discretion,
as to the number, price or kind of a share of Stock or other consideration subject to such awards
or as otherwise determined by the Committee to be equitable (i) in the event of changes in the
outstanding Stock or in the capital structure of the Company by reason of stock dividends, stock
splits, reverse stock splits, recapitalizations, reorganizations, mergers, consolidations,
combinations, exchanges, or other relevant changes in capitalization occurring after the date of
grant of any such option or (ii) in the event of any change in applicable laws or any change in
circumstances which results in or would result in any substantial dilution or enlargement of the
rights granted to, or available for, participants in the Plan, or (iii) for any other reason which
the Committee, in its sole discretion, determines otherwise warrants equitable adjustment because
it interferes with the intended operation of the Plan. The Company shall give each participant
notice of an adjustment hereunder and, upon notice, such adjustment shall be conclusive and binding
for all purposes.

               (b) Notwithstanding the above, in the event of any of the following:

                    (i) the Company is merged or consolidated with another corporation or entity such that after
such merger or consolidation the Company is not the surviving entity or the ultimate parent of the
surviving entity;

                    (ii) all or substantially all of the assets of the Company or the Stock are acquired by
another person or entity;

                    (iii) the reorganization or liquidation of the Company; or

                    (iv) the Company shall enter into a written agreement to undergo an event described in clauses
(i), (ii) or (iii) above,

then the Committee may, in its discretion and upon at least 10 days advance notice to the affected
persons, cancel any outstanding options and pay to the holders thereof, in cash or Stock, the value
of such options based upon the price per share of Stock received or to be received by other
shareholders of the Company in the event. The terms of this Section 14 may be varied by the
Committee in any particular option agreement.

          15. Compliance with the Law.

               (a) The Company is relieved from any liability for the nonissuance or non-transfer or any
delay in issuance or transfer of any shares of Stock subject to award under the Plan which results
from the inability of the Company to obtain, or any delay in obtaining from any regulatory body
having jurisdiction, all requisite authority to issue or transfer shares of Stock of the Company
upon exercise of the options under the Plan or shares of Stock issued as a result of such exercise
of the options, if counsel for the Company deems such authority necessary for lawful issuance or
transfer of any such shares. Appropriate legends may be placed on the stock certificates
evidencing shares issued pursuant to any award to reflect such transfer restrictions.

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               (b) Each award granted under the Plan is subject to the requirement that if at any time the
Committee determines, in its discretion, that the listing, registration or qualification of shares
of Stock issuable pursuant to an award is required by any securities exchange or under any state or
Federal law, or that the consent or approval of any governmental regulatory body is necessary or
desirable as a condition of, or in connection with, the grant of an award or the issuance of shares
of Stock pursuant to an award, no shares of Stock shall be issued, in whole or in part, unless such
listing, registration, qualification, consent or approval has been effected or obtained free of any
conditions or with such conditions as are acceptable to the Committee.

          16. Representation of Optionee. The Company may require the optionee to deliver
written warranties and representations upon exercise of the option that are necessary to show
compliance with federal and state securities laws including to the effect that a purchase of shares
under the option is made for investment and not with a view to their distribution (as that term is
used in the Securities Act of 1933).

          17. Termination and Amendment of Plan. The Board may at any time terminate the Plan
or make such modification or amendment thereof as it deems advisable. Termination or any
modification or amendment of the Plan shall not, without consent of a participant, affect his
rights under an option previously granted to him.

*                *                *

As adopted by the Board of Directors of Pharmion Corporation as of February 11, 2003, amended and
restated as of February 11, 2003, amended and restated as of September 23, 2003, amended as of June
1, 2005 and further amended and restated effective as of June 8, 2006.

By:   /s/ Patrick J. Mahaffy                         

Title:   President and Chief Executive Officer

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