Document:

Exhibit 10.23

PONIARD PHARMACEUTICALS, INC.

CHANGE OF CONTROL AGREEMENT

This Change of Control
Agreement (VP) (this “Agreement”),
dated as of May 7, 2007, is entered into by and between PONIARD
PHARMACEUTICALS, INC., a Washington corporation (as supplemented by
Section 13, the “Company”),
and Ronald A. Martell (the “Executive”).

The Board of Directors of
the Company (the “Board”) has determined that
it is in the best interests of the Company and its shareholders to ensure that
the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined in Section 1 hereof) of the Company.  The Board believes it is imperative to
diminish the inevitable distraction of the Executive arising from the personal
uncertainties and risks created by a pending or threatened Change of Control,
to encourage the Executive’s full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with reasonable compensation and benefit arrangements
upon a Change of Control.

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

1.             Definitions

1.1           “Change of Control”
shall have the definition set forth in Appendix A hereto, which is hereby
incorporated by reference.

1.2           “Change of Control Date”
shall mean the first date on which a Change of Control occurs.

1.3           “Employment Period”
shall mean the two (2) year period commencing on the Change of Control Date and
ending on the second anniversary of such date.

1.4           “Severance Agreement”
shall mean the Key Executive Severance Agreement, dated as of the date hereof,
between the parties, as it may be amended from time to time, that provides for
certain benefits related to termination of the Executive’s employment that are
unrelated to a Change of Control.

2.             Term

The initial term of this
Agreement (“Initial Term”)
shall be for a period of one (1) year from the date of this Agreement as first
appearing above; provided, however, that this Agreement shall automatically
renew for successive additional one (1) year periods (“Renewal
Terms”) unless notice of nonrenewal is given by either party to
the other at least ninety (90) days prior to the end of the Initial Term or any
Renewal Term, and provided further that if a Change in Control occurs during
the Term, the Term shall automatically 

extend for the duration
of the Employment Period.  The “Term” of this Agreement shall be the
Initial Term plus all Renewal Terms and, if applicable, the duration of the
Employment Period.  At the end of the
Term, this Agreement shall terminate without further action by either the
Company or the Executive.

3.             Employment

3.1          Employment Period

During the Employment
Period, the Company hereby agrees to continue the Executive in its employ or in
the employ of its affiliated companies, and the Executive hereby agrees to
remain in the employ of the Company or its affiliated companies, in accordance
with the terms and provisions of this Agreement; provided, however, that either
the Company or the Executive may terminate the employment relationship subject
to the terms of this Agreement.

3.2          Position and Duties

During the Employment
Period, the Executive’s position, authority, duties and responsibilities shall
be at least commensurate in all material respects with the most significant of
those held, exercised and assigned at any time during the ninety (90) day
period immediately preceding the Change of Control Date.

3.3          Location

During the Employment
Period, the Executive’s services shall be performed at the Company’s offices on
the Change of Control Date at which the Executive was employed or any office
that is subsequently designated by the Company and is less than thirty (30) miles
from such location.

3.4          Employment at Will

The Executive and the
Company acknowledge that, except as may otherwise be provided under any other
written agreement between the Executive and the Company, the employment of the
Executive by the Company or its affiliated companies is “at will” and may be
terminated by either the Executive or the Company or its affiliated companies
at any time with or without cause. 
Moreover, if prior to the Change of Control Date, the Executive’s
employment with the Company or its affiliated companies terminates for any
reason, then the Executive shall have no further rights under this Agreement;
provided, however, that the Company may not avoid liability for any termination
payments that would have been required during the Employment Period pursuant to
Section 8 hereof by terminating the Executive prior to the Employment
Period where such termination is carried out in anticipation of a Change of
Control and the principal motivating purpose is to avoid liability for such
termination payments.

 2
 

4.             Attention and Effort

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

5.             Compensation

As long as the Executive
remains employed by the Company during the Employment Period, the Company
agrees to pay or cause to be paid to the Executive, and the Executive agrees to
accept in exchange for the services rendered hereunder by him, the following
compensation:

5.1          Salary

The Executive shall
receive an annual base salary (the “Annual Base Salary”),
at least equal to the annual salary established by the Board or the
Compensation Committee of the Board (the “Compensation Committee”)
or the Chief Executive Officer for the fiscal year in which the Change of
Control Date occurs.  The Annual Base
Salary shall be paid in substantially equal installments and at the same
intervals as the salaries of other executives of the Company are paid.  The Board or the Compensation Committee or
the Chief Executive Officer shall review the Annual Base Salary at least
annually and shall determine in good faith and consistent with any generally
applicable Company policy any increases for future years.

5.2          Bonus

In addition to the Annual
Base Salary, the Executive shall be awarded, for each fiscal year ending during
the Employment Period, an annual bonus (the “Annual
Bonus”) in cash at least equal to the average annualized (for
any fiscal year consisting of less than twelve (12) full months) bonus paid or
payable (including by reason of any deferral and including the value of any
stock awards and the compensation expense disclosed in the Company’s financial
statements for the grant of any stock options) to the Executive by the Company
and its affiliated companies in respect of the three fiscal years immediately
preceding the fiscal year in which the Change of Control Date occurs.  Each Annual Bonus shall be paid no later 

 3
 

than ninety (90) days
after the end of the fiscal year for which the Annual Bonus is awarded, unless
the Executive shall elect to defer the receipt of the Annual Bonus.

6.             Benefits

6.1          Incentive, Retirement and Welfare Benefit Plans; Vacation

During the Employment
Period, the Executive shall be entitled to participate, subject to and in
accordance with applicable eligibility requirements, in such fringe benefit
programs as shall be generally made available to other executives of the
Company and its affiliated companies from time to time during the Employment
Period by action of the Board (or any person or committee appointed by the
Board to determine fringe benefit programs and other emoluments), including,
without limitation, paid vacations; any stock purchase, savings or retirement
plan, practice, policy or program; and all welfare benefit plans, practices,
policies or programs (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental
death and travel accident insurance plans or programs).

6.2          Expenses

During the Employment
Period, the Executive shall be entitled to receive prompt reimbursement for all
reasonable employment expenses incurred by him in accordance with the policies,
practices and procedures of the Company and its affiliated companies in effect
for the executives of the Company and its affiliated companies during the
Employment Period.

7.             Termination

During the Employment
Period, employment of the Executive may be terminated as follows, but, in any
case, the nondisclosure provisions set forth in Section 10 hereof shall
survive the termination of this Agreement and the termination of the Executive’s
employment with the Company:

7.1          By the Company or the Executive

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

7.2          Automatic Termination

This Agreement and the
Executive’s employment during the Employment Period shall terminate
automatically upon the death or Total Disability of the Executive.  The term “Total Disability”
as used herein shall mean the Executive’s inability (with such accommodation as
may be required by law and which places no undue burden on the Company), as
determined by a physician selected by the Company and acceptable to the 

 4
 

Executive, to perform the
duties set forth in Section 3.2 hereof for a period or periods aggregating
twelve (12) weeks in any three hundred sixty-five (365) day period as a result
of physical or mental illness, loss of legal capacity or any other cause beyond
the Executive’s control, unless the Executive is granted a leave of absence by
the Board.  The Executive and the Company
hereby acknowledge that the duties specified in Section 3.2 hereof are
essential to the Executive’s position and that Executive’s ability to perform
those duties is the essence of this Agreement.

7.3          Notice of Termination

Any termination by the
Company or by the Executive during the Employment Period shall be communicated
by the Notice of Termination to the other party given in accordance with
Section 12 hereof.  The term “Notice of Termination” shall mean a written notice that
(a) indicates the specific termination provision in this Agreement relied
upon and (b) to the extent applicable, sets forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated.  The failure by the Executive or the Company
to set forth in the Notice of Termination any fact or circumstance that
contributes to a showing of Good Reason or Cause shall not waive any right of
the Executive or the Company hereunder or preclude the Executive or the Company
from asserting such fact or circumstance in enforcing the Executive’s or the
Company’s rights hereunder.

7.4          Date of Termination

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

8.             Termination Payments

In the event of
termination of the Executive’s employment during the Employment Period, all
compensation and benefits set forth in this Agreement shall terminate except as
specifically provided in this Section 8.

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

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

 5
 

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

(i)            the Annual Base Salary through the Date of Termination to
the extent not theretofore paid;

(ii)           the product of (x) the Annual Bonus payable with
respect to the fiscal year in which the Date of Termination occurs and (y) a
fraction the numerator of which is the number of days in the current fiscal
year through the Date of Termination, and the denominator of which is three
hundred sixty-five (365); provided that, in the event that the Executive is
entitled to an amount in respect of the Annual Bonus under Section 8.1(c),
he shall receive the amount payable under Section 8.1(c) first and the
amount payable under this Section 8.1(a)(ii) only to the extent it exceeds
the amount payable under Section 8.1(c); and

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

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

(c)           an amount equal to fifty percent
(50%) of the Annual Bonus that would have been paid to the Executive for the
fiscal year in which the Date of Termination falls but for the termination of
the Executive’s employment;

(d)           an amount as severance pay equal to
fifty percent (50%) of the Annual Base Salary for the fiscal year in which the
Date of Termination occurs; and

(e)           immediate vesting of all outstanding
stock options previously granted to the Executive by the Company.

8.2          Termination for Cause or Other Than for Good Reason

If during the Employment
Period the Executive’s employment shall be terminated by the Company for Cause
or by the Executive for other than Good Reason, this Agreement shall terminate
without further obligation on the part of the Company to the Executive, other
than the Company’s obligation to pay the Executive (a) the Annual Base
Salary through the Date of Termination, (b)  the amount of any
compensation previously deferred by the Executive, and (c) any accrued
vacation pay that would be payable under the Company’s standard policy, in each
case to the extent theretofore unpaid.

 6
 

8.3          Expiration of Term

In the event the
Executive’s employment is not terminated prior to expiration of the Term, this
Agreement shall terminate without further obligation on the part of the Company
to the Executive, other than the Company’s obligation to pay the Executive the
product of (a) the Annual Bonus payable with respect to the fiscal year in
which the Term expired and (b) a fraction the numerator of which is the
number of days in the current fiscal year through the end of the Term and the
denominator of which is three hundred sixty-five (365).

8.4          Termination Because of Death or Total Disability

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

8.5          Payment Schedule

All payments of Accrued
Obligations, or any portion thereof payable pursuant to this Section 8,
shall be made to the Executive within ten (10) working days of the Date of
Termination.  Any payments payable to the
Executive pursuant to Section 8.1(c) and (d) hereof shall be made to the
Executive in a lump sum within ten (10) working days of the Date of
Termination.

8.6          Cause

For purposes of this
Agreement, “Cause” means cause given by
the Executive to the Company and shall include, without limitation, the
occurrence of one (1) or more of the following events:

(a)           a clear refusal to carry out any material lawful duties of
the Executive or any directions of the Board or senior management of the
Company, all reasonably consistent with the duties described in Section 3.2
hereof;

(b)           persistent failure to carry out any lawful duties of the
Executive described in Section 3.2 hereof or any directions of the Board or
senior management reasonably consistent with the duties herein set forth to be
performed by the Executive, provided, however, that the Executive has been
given reasonable notice and opportunity to correct any such failure;

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

 7
 

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

(e)           any other material violation of any provision of this
Agreement by the Executive, subject to the notice and opportunity-to-cure
requirements of Section 11 hereof.

8.7          Good Reason

For purposes of this
Agreement, “Good Reason” means

(a)           the assignment to the Executive of
any duties materially inconsistent with the Executive’s position, authority,
duties or responsibilities as contemplated by Section 3.2 hereof or any
other action by the Company that results in a material diminution in such
position, authority, duties or responsibilities, excluding for this purpose an
isolated and inadvertent action not taken in bad faith and that is remedied by
the Company promptly after receipt of notice thereof given by the Executive;

(b)           any failure by the Company to comply
with any of the provisions of Section 5 or Section 6 hereof, other
than an isolated and inadvertent failure not taken in bad faith and that is
remedied by the Company promptly after receipt of notice thereof given by the
Executive;

(c)           the Company’s requiring the Executive
to be based at any office or location other than that described in Section 3.3
hereof;

(d)           any failure by the Company to comply
with and satisfy Section 13 hereof; provided, however, that the Company’s
successor has received at least ten (10) days’ prior written notice from the
Company or the Executive of the requirements of Section 13 hereof; or

(e)           any other material violation of any
provision of this Agreement by the Company, subject to the notice and
opportunity-to-cure requirements of Section 11 hereof.

8.8          Excess Parachute Limitation

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

 8
 

in writing by recognized
tax counsel selected by the Company and reasonably acceptable to the Executive.

9.             Representations, Warranties and Other Conditions

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

9.1          Health

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

9.2          No Violation of Other Agreements

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

10.          Nondisclosure; Return of Materials

10.1        Nondisclosure

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

10.2        Return of Materials

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

 9
 

11.          Notice and Cure of Breach

Whenever a breach of this
Agreement by either party is relied upon as justification for any action taken by
the other party pursuant to any provision of this Agreement, other than
clause (a), (b), (c) or (d) of Section 8.6 hereof, before such action
is taken, the party asserting the breach of this Agreement shall give the other
party at least twenty (20) days’ prior written notice of the existence and the
nature of such breach before taking further action hereunder and shall give the
party purportedly in breach of this Agreement the opportunity to correct such
breach during the twenty (20) day period.

12.          Form of Notice

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

If to the Executive:                                               Ronald
A. Martell
                                                                                                 49
Wisteria Way
                                                                                                 Basking
Ridge, New Jersey 07920

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

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

Except as set forth in
Section 7.4 hereof, if notice is mailed, such notice shall be effective
upon mailing.

13.          Assignment

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

The Company shall assign
to and require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all the business and/or
assets of the Company to assume expressly and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.  As used in this Agreement, “Company”
shall mean Poniard Pharmaceuticals, Inc. and any successor to its business
and/or assets as aforesaid that assumes and agrees to perform this Agreement by
operation of law, or otherwise.  All the 

 10
 

terms and provisions of
this Agreement shall be binding upon and inure to the benefit of and be
enforceable by the parties hereto and their respective successors and permitted
assigns.

14.          Waivers

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

15.          Amendments in Writing

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

16.          Applicable Law

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

17.          Arbitration; Attorneys’ Fees

Except in connection with
enforcing Section 10 hereof, for which legal and equitable remedies may be
sought in a court of law, any dispute arising under this Agreement shall be
subject to arbitration.  The arbitration
proceeding shall be conducted in accordance with the Commercial Arbitration
Rules of the American Arbitration Association (the “AAA
Rules”) then in effect, conducted by one arbitrator either
mutually agreed upon or selected in accordance with the AAA Rules.  The arbitration shall be conducted in King
County, Washington, under the jurisdiction of the Seattle office of the
American Arbitration Association.  The
arbitrator shall have authority only to interpret and apply the provisions of
this Agreement, and shall have no authority to add to, subtract from or
otherwise modify the terms of this Agreement. 
Any demand for arbitration must be made within sixty (60) days of the
event(s) giving rise to the claim that this Agreement has been breached.  The arbitrator’s decision shall be final and
binding, and each party agrees to be bound to by the arbitrator’s award,
subject only to an appeal therefrom in accordance with the laws of the State of
Washington.  Either party may obtain
judgment upon the arbitrator’s award in the Superior Court of King, County,
Washington.

 11
 

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

18.          Severability

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

19.          Entire Agreement

Except as described in
Section 22 hereof, this Agreement constitutes the entire agreement between
the Company and the Executive with respect to the subject matter hereof, and
all prior or contemporaneous oral or written communications, understandings or agreements
between the Company and the Executive with respect to such subject matter, are
hereby superseded and nullified in their entireties, except that the
Proprietary Information and Invention Agreement between the Company and the
Executive shall continue in full force and effect to the extent not superseded
by Section 10 hereof.

20.          Withholding

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

21.          Counterparts

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

22.          Coordination with Severance Agreement

The Severance Agreement
that the parties are entering into contemporaneously with this Agreement
provides for certain forms of severance and benefit payments in the event of
termination of the Executive’s employment. 
This Agreement is in addition to the Severance Agreement and in no way
supersedes or nullifies the Severance Agreement.  Nevertheless, it is possible that termination
of employment by the Company or by the Executive may fall within the scope of
both agreements.  In such event, payments
made to the Executive under 

 12
 

Section 8.1 hereof shall
be coordinated with payments made to the Executive under Section 5.1 of
the Severance Agreement as follows:

(a)           Accrued Obligations under this
Agreement shall be paid first, in which case Accrued Obligations need not be
paid under the Severance Agreement;

(b)           COBRA Continuation under this
Agreement shall be provided first, in which case COBRA Continuation need not be
provided under the Severance Agreement; and

(c)           the severance payment required under
Section 8.1(d) hereof shall be paid first, in which case only that portion of
any severance payment required under Section 5.1(c) of the Severance
Agreement in excess of the severance payment required under Section 8.1(d)
hereof shall be paid in accordance with the provisions of the Severance
Agreement.

 13
 

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

	
  

  	
  PONIARD PHARMACEUTICALS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ GERALD McMAHON

  
	
   

  	
   

  	
  Name: Gerald McMahon, Ph.D.

  
	
   

  	
   

  	
  Its: Chairman and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RONALD A. MARTELL

  
	
   

  	
   

  	
  Name: Ronald A. Martell

  

 

 14

APPENDIX A

For purposes of this
Agreement, a “Change of Control” shall
mean:

(a)           A “Board
Change” that, for purposes of this Agreement, shall have
occurred if a majority (excluding vacant seats) of the seats on the Board are
occupied by individuals who were neither (i) nominated by a majority of
the Incumbent Directors nor (ii) appointed by directors so nominated.  An “Incumbent Director”
is a member of the Board who has been either (i) nominated by a majority
of the directors of the Company then in office or (ii) appointed by
directors so nominated, but excluding, for this purpose, any such individual
whose initial assumption of office occurs as a result of either an actual or
threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A
promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person (as hereinafter
defined) other than the Board; or

(b)           The acquisition by any individual,
entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act) (a “Person”) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of (i) twenty percent (20%) or more of either (A) the then
outstanding shares of Common Stock of the Company (the “Outstanding
Company Common Stock”) or (B) the combined voting power of
the then outstanding voting securities of the Company entitled to vote
generally in the election of directors (the “Outstanding
Company Voting Securities”), in the case of either (A) or
(B) of this clause (i), which acquisition is not approved in advance by a
majority of the Incumbent Directors, or (ii) thirty-three percent (33%) or
more of either (A) the Outstanding Company Common Stock or (B) the
Outstanding Company Voting Securities, in the case of either (A) or (B) of
this clause (ii), which acquisition is approved in advance by a majority of the
Incumbent Directors; provided, however, that the following acquisitions shall
not constitute a Change of Control: 
(x) any acquisition by the Company, (y) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company
or any corporation controlled by the Company, or (z) any acquisition by
any corporation pursuant to a reorganization, merger or consolidation, if,
following such reorganization, merger or consolidation, the conditions
described in clauses (i), (ii) and (iii) of subsection (c) of this
Appendix A are satisfied; or

(c)           Approval by the shareholders of the
Company of a reorganization, merger or consolidation, in each case, unless,
immediately following such reorganization, merger or consolidation,
(i) more than sixty percent (60%) of, respectively, the then outstanding
shares of common stock of the corporation resulting from such reorganization,
merger or consolidation and the combined voting power of the then outstanding
voting securities of such corporation entitled to vote generally in the
election of directors is then beneficially owned, directly or indirectly, by
all or substantially all the individuals and entities who were 

the beneficial owners,
respectively, of the Outstanding Company Common Stock and the Outstanding
Company Voting Securities immediately prior to such reorganization, merger or
consolidation in substantially the same proportion as their ownership
immediately prior to such reorganization, merger or consolidation of the
Outstanding Company Common Stock and the Outstanding Company Voting Securities,
as the case may be, (ii) no Person (excluding the Company, any employee
benefit plan (or related trust) of the Company or such corporation resulting
from such reorganization, merger or consolidation and any Person beneficially
owning, immediately prior to such reorganization, merger or consolidation,
directly or indirectly, thirty-three percent (33%) or more of the Outstanding
Company Common Stock or the Outstanding Company Voting Securities, as the case
may be) beneficially owns, directly or indirectly, thirty-three percent (33%)
or more of, respectively, the then outstanding shares of common stock of the
corporation resulting from such reorganization, merger or consolidation or the
combined voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors, and (iii) at
least a majority of the members of the board of directors of the corporation
resulting from such reorganization, merger or consolidation were the Incumbent
Directors at the time of the execution of the initial agreement providing for
such reorganization, merger or consolidation; or

(d)           Approval by the shareholders of the
Company of (i) a complete liquidation or dissolution of the Company or
(ii) the sale or other disposition of all or substantially all the assets
of the Company, other than to a corporation with respect to which immediately
following such sale or other disposition, (A) more than sixty percent
(60%) of, respectively, the then outstanding shares of common stock of such corporation
and the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially all the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Company Common Stock and the Outstanding Company Voting Securities
immediately prior to such sale or other disposition in substantially the same
proportion as their ownership, immediately prior to such sale or other
disposition, of the Outstanding Company Common Stock and the Outstanding
Company Voting Securities, as the case may be, (B) no Person (excluding
the Company, any employee benefit plan (or related trust) of the Company or
such corporation and any Person beneficially owning, immediately prior to such
sale or other disposition, directly or indirectly, thirty-three percent (33%)
or more of the Outstanding Company Common Stock or the Outstanding Company
Voting Securities, as the case may be) beneficially owns, directly or
indirectly, thirty-three percent (33%) or more of, respectively, the then
outstanding shares of common stock of such corporation and the combined voting
power of the then outstanding voting securities of such corporation entitled to
vote generally in the election of directors, and (C) at least a majority
of the members of the board of directors of such corporation were approved by a
majority of the Incumbent Directors at the time of the execution of the initial
agreement or action of the Board providing for such sale or other disposition
of the Company’s assets.

 

 2Exhibit 10.1

EMPLOYMENT
AGREEMENT

EMPLOYMENT
AGREEMENT (“Agreement”) dated as of March 17, 2006 (the “Effective
Date”) between Aon Corporation, a Delaware corporation with offices located at
200 East Randolph Street, Chicago, Illinois 60601 (the “Company”), and Michael
D. Rice, residing at 2 S. 050 Hawthorne Lane, Wheaton, Illinois (the “Employee”).

R E C I T
A L S

WHEREAS, the
Company and the Employee wish to continue the employment by the Company of the
Employee;

NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth below, the
parties agree:

Section 1.   Employment Title and Term.

The Company agrees
to employ the Employee as Chairman of ARSA, or in such other capacity as the
Company’s Chief Executive Officer requests the Employee to serve, and the
Employee agrees to serve in such capacity with the duties set forth in Section
4 for a term (the “Term of Employment”) beginning on the Effective Date and
ending on December 31, 2007, unless renewed pursuant to Section 3 hereof, or
terminated during the Term of Employment as fully set forth in Section 3.

Section 2.   Consideration; Compensation During Term of Employment.

(a)   Consideration.   The consideration for entering into
this Agreement shall be the performance of services by the Employee pursuant to
this Agreement and the employment of the Employee by the Company as well as the
other payments and benefits provided under this Section 2.

(b)   Base Salary.   Unless the Company fixes a higher rate
for the Employee during the Term of Employment, beginning on January 1, 2006
the Company shall pay compensation to the Employee at the rate of $800,000 per
year (the “Base Salary”), payable in accordance with the usual payroll schedule
of the Company.

(c)   Bonus.   Employee shall be eligible to participate in
all annual incentive compensation and equity compensation programs appropriate
to his position, in accordance with the provisions of such plans, including the
guidelines established in May 2005 (known as the Senior Management Compensation
Plan) for annual incentive compensation awards to 

 1
 

Policy Committee members
under the shareholder-approved Senior Officer Incentive Compensation Plan.

(d)   Stock Awards and Stock Options.   The Employee currently
possesses awards of stock and stock options (“Awards”) under the Aon Stock
Incentive Plan (the “Plan. The Plan provides that the Awards which are granted
cease vesting on the termination of Employee’s employment with the Company.
However, in recognition of Employee’s value to the Company and pursuant to the
modifications to the Awards approved by the Organization and Compensation
Committee of the Company’s board of directors (the “Board”) on November 18,
2004, and notwithstanding any provision of the Plan to the contrary or
otherwise, said Awards, and additional awards of stock and stock options that
are granted hereafter pursuant to the Plan (also “Awards”), shall continue to
vest in accordance with the Plan vesting provisions so long as the Employee
continues to make himself available as a consultant to the Company at the
Company’s reasonable request upon terms to be mutually agreed upon, and so long
as Employee abides by the restrictive covenants set forth in Section 4 herein
the term of which shall be deemed extended for the period of the vesting of the
Awards, (i) in the event of the termination by the Company of Employee’s
employment without cause or the termination of the Employee’s employment following
the expiration of this Agreement without renewal or extension, or (ii) in the
event of the retirement of Employee from the Company.  Furthermore,
in the event of Employee’s death or total disability at any time, such Awards
shall continue to vest pursuant to the vesting provisions of the Plan.

(e)   Fringe Benefits.   During the course of employment, the
Employee shall enjoy the customary benefits that are generally afforded to
employees of the Company. The Employee also shall be entitled to participate in
employee benefit plans now or hereafter provided or made available to the
Company’s employees generally, such as group medical, life, disability
insurance, pension plan, flexible spending accounts for dependent care and
health care and long term care. Nothing in this Agreement shall require the
Company to establish, maintain or continue any of the benefits already in
existence or hereafter adopted for employees of the Company and nothing in this
Agreement shall restrict the right of the Company to amend, modify or terminate
such fringe benefit programs.

(f)   Vacation Time.   The Employee shall be entitled to paid
vacation time in accordance with usual Company policies and procedures. The
Company shall not pay the Employee any additional compensation for any vacation
time not used by the Employee except as required by law.

(g)   Business Travel, Entertainment Expenses, Club, Auto.   In
accordance with Company policies and procedures and on prescribed Company
forms, the Company will reimburse the Employee for business expenses and
entertainment expenses incurred by the Employee.

 2
 

Section 3.   Renewal; Termination.

(a)   Renewal.   This Agreement may be renewed upon (i) the
issuance by the Company of a notice of renewal (“Notice of Renewal”) to the
Employee at least ninety (90) days prior to the end date of the Term of Employment
or any renewal period thereof and (ii) the written acceptance of the Notice of
Renewal by the Employee within (60) days thereafter.

(b)   Termination.

(i)   Death or Disability.   This
Agreement shall be terminated immediately upon the death, total disability (as
defined under the Aon Long Term Disability Plan or its successor plan) or other
event or condition rendering the Employee unable to perform substantially all
of his duties and obligations under this Agreement; provided, however, that the
Awards shall continue to vest as provided in Section 2(d) of this Agreement,
and in the event of Employee’s total disability an amount equal to the Base
Salary shall be paid for the remainder of the Term of Employment in accordance
with the Company’s normal payroll schedule, which such amount shall be reduced
by the amount of disability insurance benefits payable to Employee pursuant to
Company-sponsored disability insurance coverages.

(ii)   Without Cause.   This
Agreement may be terminated by the Company or the Employee without Cause (as
such term is defined herein) on no less than ninety (90) days advance notice
(the “Notice Period”). If the Employee’s employment under this Agreement is
terminated without Cause by the Company, the Company shall pay Employee all accrued
but unpaid benefits as of the date of such termination. In addition, so long as
Employee continues to abide by the provisions of Sections 4(d), 4(e) and 6
herein notwithstanding the expiration of the period specified therein, the
Company shall continue to pay Employee an amount equal to the Base Salary as
and when it would be paid to its employees generally until the end of the
initial Term of Employment or, if renewed, until the end of any such renewal
period, and the Awards shall continue to vest as provided in Section 2(d)
herein. A change in the Employee’s title, duties or responsibilities in
accordance with this Agreement shall not be deemed a termination of the
Employee’s employment without Cause.

Notwithstanding anything to the contrary in the foregoing
paragraph, the Company may require Employee to leave Company premises
immediately upon the giving of notice. Such a requirement shall not relieve the
Company of its obligations to continue Base Salary or benefits during the
Notice Period.

 3
 

In the event Employee terminates this Agreement
without Cause, the Company shall only be required to pay Employee all accrued
but unpaid Base Salary and benefits as of the date of such termination.

(iii)   For Cause.   The
Company may at any time terminate the Employee’s employment under this
Agreement immediately for Cause (as hereinafter defined). The Company’s
decision in this regard shall be taken by the Board. The Employee will be given
at least seven days advance written notice of any meeting at which the Board
proposes to put forward for a vote a decision on whether or not to terminate
the Employee for Cause and the written notice shall describe in reasonable
detail the basis on which the Board may conclude that Cause exists. The
Employee shall have the opportunity to appear in person and to make such
written and/or oral presentation to such meeting of the Board as the Employee
thinks necessary. If a majority of the Board authorizes by affirmative vote a
termination for Cause at such meeting (whether or not the Employee makes any
oral or written presentations at such meeting) such determination shall be
effective once such decision is confirmed in writing and communicated to the
Employee. As used in this Agreement, the term “Cause” shall mean any one or
more of the following: (A) any failure or inability (other than by reason of
physical or mental disability determined in accordance with Section 3(b)(i)) of
the Employee to perform his material duties under this Agreement to the
satisfaction of at least a majority of the members of the Board, including,
without limitation, any refusal by the Employee to perform such duties or to
perform such specific directives of the Chief Executive Officer which are consistent
with the scope and nature of the Employee’s duties and responsibilities under
this Agreement; (B) any intentional act of fraud, embezzlement or theft by the
Employee in connection with his duties hereunder or in the course of his
employment hereunder or the Employee’s admission or conviction of, or plea of
nolo contender to, a felony or of any crime involving moral turpitude, fraud,
embezzlement, theft or misrepresentation; (C) any gross negligence or willful
misconduct of the Employee in connection with his duties hereunder or during
the course of his employment that results in a monetary loss to the Company, or
damage to the reputation of the Company; (D) any breach by the Employee of any
one or more of the covenants contained in Section 4 or 6 hereof; or (E) any
violation of any statutory or common law duty of loyalty to the Company or any
of its subsidiaries in connection with his duties hereunder or during the
course of his employment. The exercise of the right of the Company to terminate
this Agreement pursuant to this Section 3(b)(iii) shall not abrogate the rights
or remedies of the Company in respect of the breach giving rise to such
termination.

In the event of a termination for “Cause,” the Company
shall only be required to pay Employee all accrued but unpaid Base Salary and
benefits as of the date of such termination.

 4
 

(iv)   As of the effective date of termination, Employee agrees
that the Secretary of the Company may, as an irrevocable proxy and in Employee’s
name and stead, execute all documents and things which the Company deems
necessary and desirable to effect Employee’s resignation as an officer or
director of the Company and its subsidiaries and affiliates.

(v)   Upon the effective date of termination, or other expiration
of this Agreement, the obligations of the parties under this Agreement, other
than the Employee’s obligations under Sections 3(c), 4, 5 and 6, and the
Company’s obligations under Sections 3(b)(i) through (iii), shall cease;
provided further that any other provision which contemplates performance or
observance by either or both parties subsequent to any termination of this
Agreement shall survive any termination of this Agreement and continue in full
force and effect.

(vi)   Any agreement herein by the Company to continue to pay Base
Salary or any other benefits after the termination of employment shall be in
lieu of, and not in addition to, any benefits provided by the Aon Severance
Plan.

(c)   The
Employee agrees that, prior to the commencement of any new employment in the
insurance business, the Employee will furnish the prospective new employer with
a copy of this Agreement. The Employee also agrees that the Company may advise
any prospective new employer of the Employee of the existence and terms of this
Agreement and furnish the prospective new employer with a copy of this
Agreement.

Section 4.   Recitals; Duties; Covenant Not To Compete.

(a)   Recitals.   Aon Group, Inc., a Maryland corporation with
its executive headquarters in Chicago, Illinois, and its subsidiaries and
affiliates (and divisions thereof) including the Company (collectively “Aon Group”)
are in the business of providing conventional and alternative risk management
products and services covering the businesses of insurance brokerage,
reinsurance brokerage, benefits consulting, compensation consulting human
resources consulting, managing underwriting and related insurance services,
including accounting, claims management and handling, contract wording,
information systems and actuarial (the “Business”) as well as soliciting and
servicing the insurance and reinsurance needs of numerous commercial and
individual clients which are national and international and are not confined to
any geographic area. An essential element of the Business is the development
and maintenance of personal contacts and relationships with clients. Because of
these contacts and relationships, it is common for Aon Group’s clients to
develop an identification with the employee who serves its insurance needs
rather than with Aon Group itself. Aon Group, however, invests considerable
time and money necessary for a relationship between its employee and a client
to develop and be maintained, in that Aon Group pays the employee’s salary and
reimburses the employee for business expenses. Aon Group also assists 

 5
 

its employees in
servicing clients by making available to these employees legal advice,
accounting support, advertising and other corporate services.

The personal
identification of clients of Aon Group with an Aon Group employee creates the
potential for the employee’s appropriation of the benefits of the relationships
developed with clients on behalf of and at the expense of Aon Group. Since Aon
Group would suffer irreparable harm if an employee left the Company’s employ
and solicited the insurance or other related business of clients of the Company
and Aon Group, it is reasonable to protect the Company and Aon Group against
solicitation activities by an employee for a limited period of time after an
employee leaves the Company so that Aon Group may renew or restore its business
relationship with its clients.

The Company and
the Employee acknowledge and agree that the covenant contained in Sections 4(d)
and (e) below is reasonably necessary for the protection of the Company and Aon
Group and is reasonably limited with respect to the activities it prohibits,
its duration (particularly in the context of annual and multi-year
insurance renewal periods), its geographical scope and its effect on the
Employee and the public. The parties acknowledge that the purpose and effect of
the covenant simply is to protect the Company and Aon Group for a limited
period of time from unfair competition by the Employee.

(b)   Duties.   The Employee agrees during the course of
employment to serve as Chairman of ARSA or in such other capacity as the Chief
Executive Officer requests the Employee to serve and to well perform such other
duties and assignments relating to the business of the Company as the
management of the Company directs.

(c)   Exclusivity.   During the course of employment the
Employee shall, except during customary vacation periods and periods of
illness, devote his entire business time and attention to the performance of
the duties hereunder and to promoting the best interests of the Company. The
Employee shall not, either during or outside of normal business hours, directly
or indirectly, engage in any aspect of the insurance or risk management
business for or on behalf of any entity other than the Company, nor
intentionally engage in any activity inimical to the best interests of the
Company.

(d)   Covenant Not to Compete.   The Employee hereby covenants
and agrees that, except with the prior written consent of the Company, the
Employee will not, for the longer of either two (2) years after the end of
employment, or the period during which the Company is making Base Salary
payments to the Employee pursuant to Section 3(b)(ii), compete directly or
indirectly in any way with the Business. For the purposes of this Agreement, “compete
directly or indirectly in any way with the Business” means to enter into or
attempt to enter into (on Employee’s own behalf or on behalf of any other
person or entity) any business relationship of the same type or kind as the
business relationship which exists between Aon Group and its clients or
customers to provide services related to the Business for any individual,
partnership, corporation, association or other entity who or which was a client
or customer for whom the 

 6
 

Employee was the producer
or on whose account Employee worked or became familiar with during the twenty-four
(24) months prior to the end of employment. “Client” or “customer” means any
person or entity listed on the books of Aon Group as such.

The Employee
acknowledges that there is no general geographical restriction contained in the
preceding paragraph because the restriction applies only to the specified
clients and customers of Aon Group.

Nothing in this
Agreement shall prohibit the Employee from obtaining a livelihood for himself
or his family by being engaged in the insurance business. The intent of the
parties is that the restrictive covenant of non-competition by the
Employee is limited to those clients and customers of Aon Group, as reflected
by the books of Aon Group, during the twenty-four (24) months prior to the end
of the Employee’s employment with the Company.

(e)   Covenant Not to Hire.   The Employee hereby also agrees
not to induce or attempt to induce, or to cause any person or other entity to
induce or attempt to induce, any person who is an employee of Aon Group to
leave the employ of Aon Group during the term of the covenant set forth herein.

Section 5.   Company’s Right to Injunctive Relief; Attorneys’ Fees.

The Employee
acknowledges that the Employee’s services to the Company are of a unique
character which gives them a special value to the Company, the loss of which
cannot reasonably or adequately be compensated in damages in an action at law,
and that a breach of Section 4 and 6 of this Agreement will result in
irreparable and continuing harm to the Company or Aon Group, or both, and that
therefore, in addition to any other remedy which the Company or Aon Group, or
both, may have at law or in equity, the Company and Aon Group shall be entitled
to injunctive relief for a breach of this Agreement by the Employee. In the
event that any action is filed relating to section 4 or 6 of this Agreement,
the prevailing party in the action shall recover from the non-prevailing party,
in addition to any other sum that either party may be called upon to pay, a
reasonable sum for the prevailing party’s attorney’s fees.

Section 6.   Trade Secrets and Confidential Information.

(a)   The
Employee acknowledges that the Company’s and Aon Group’s business depend to a
significant degree upon the possession of information which is not generally
known to others, and that the profitability of the business of the Company and
Aon Group requires that this information remain proprietary to the Company and
Aon Group.

(b)   The
Employee shall not, except as required in the course of employment by the
Company, disclose or use during or subsequent to the course of employment, any
trade secrets or confidential or proprietary information relating to the
business of the Company or Aon Group of which the Employee becomes aware by
reason of being employed by the Company or 

 7
 

to which Employee gains
access during his employment by the Company and which has not been publicly
disclosed (other than by Employee in breach of this provision). Such
information includes client and customer lists, data, records, computer
programs, manuals, processes, methods and intangible rights which are either
developed by the Employee during the course of employment or to which the
Employee has access. All records and equipment and other materials relating in
any way to any confidential information relating to clients or to the business
of the Company or Aon Group shall be and remain the sole property of the
Company and Aon Group during and after the end of employment.

(c)   Upon
termination of employment, the Employee shall promptly return to the Company
all materials and all copies or tangible embodiments of materials involving any
confidential information in the Employee’s possession or control. The Employee
agrees to represent in writing to the Company upon termination of employment
that he has complied with the provisions of this Section 6.

Section 7.   Mergers and Consolidations; Assignability.

The rights and
obligations under this Agreement shall inure to the benefit of and be binding
upon the Company and its successors and assigns. By way of explanation, and
without limiting the generality of the foregoing sentence, if the Company or
any entity resulting from any merger or consolidation referred to in this
Section 7 is merged with or consolidated into any other entity or entities, or
if substantially all of the assets of the Company or any such entity are sold
or otherwise transferred to another entity, the provisions of this Agreement
shall be binding upon and shall inure to the benefit of the continuing entity
in or the entity resulting from such merger or consolidation or the entity to
which such assets are sold or transferred. This Agreement shall not be
assignable by the Employee, but in the event of his death it shall be binding
upon and inure to the benefit of the Employee’s legal representatives to the
extent required to effectuate its terms.

Section 8.   Miscellaneous.

(a)   Integration.   Except as is otherwise provided herein,
this Agreement contains all of the terms and conditions agreed upon by the
parties relating to the subject matter of this Agreement and supersedes all
prior and contemporaneous agreements (excluding the letter agreement between
the parties hereto of even date herewith that summarizes the Employee’s
eligibility for certain stock awards, which letter agreement is not superceded
hereby), negotiations, correspondence, undertakings and communications of the
parties, whether oral or written, respecting the subject matter of this
Agreement.

This Agreement may
not be amended, altered or modified without the prior written consent of both
parties and such instrument must acknowledge that it is an amendment or
modification of this Agreement.

 8
 

(b)   Waiver.   Waiver of any term or condition of this
Agreement by any party shall not be construed as a waiver of a subsequent
breach or failure of the same term or condition, or a waiver of any other term
or condition of this Agreement. Any waiver must be in writing.

(c)   Captions.   The captions in this Agreement are not part
of its provisions, are merely for reference and have no force or effect. If any
caption is inconsistent with any provision of this Agreement, such provision
shall govern.

(d)   Governing Law and Choice of Forum.   The validity,
interpretation, construction, performance, enforcement and remedies of or
relating to this Agreement, and the rights and obligations of the parties
hereunder, shall be governed by and construed in accordance with the
substantive laws of the State of Illinois, without regard to the conflict of
law principles, rules or statutes of any jurisdiction.

(e)   Agreement To Be Available In Future Proceedings.   During
the period of employment, and after employment termination, Employee agrees to
voluntarily make himself available to the Company and its legal counsel, at
Company’s request, without the necessity of obtaining a subpoena or court
order, in the Company’s investigation, preparation, prosecution and/or defense
of any actual or potential legal proceeding, regulatory action, or internal
matter. Employee agrees to provide any information reasonably within his
recollection. The Company will reimburse Employee for reasonable out-of-pocket
expenses actually incurred as a result of such requests, or, at Company’s
option, will arrange to advance Employee’s expenses or incur such expenses
directly. If such request is made after the termination of employment, it must
be reasonable in terms of time required. To the extent that any
post-termination request involves performance of acts other than testimony in
any legal or administrative proceeding, Employee shall be compensated at a
reasonable rate to be agreed upon by the parties.

(f)   Severability.   To the extent that the terms set forth
in this Agreement or any word, phrase, clause or sentence is found to be
illegal or unenforceable for any reason, such word, phrase, clause or sentence
shall be modified or deleted in such manner so as to afford the Company and Aon
Group the fullest protection commensurate with making this Agreement, as
modified, legal and enforceable under applicable laws, and the balance of this
Agreement shall not be affected thereby, the balance being construed as severable
and independent.

(g)   Notice.   All notices given hereunder shall be in
writing and shall be sent by registered or certified mail or delivered by hand
and, if intended for the Company, shall be addressed to it or delivered to it
at its principal office for the attention of the Secretary of the Company. If
intended for the Employee, notices shall be delivered personally or shall be
addressed (if sent by mail) to the Employee’s then current residence address as
shown on the Company’s records, or to such other address as the Employee
directs in a notice to the Company. All notices shall be deemed to be given on
the date received at the address of the addressee or, if delivered personally,
on the date delivered.

 9
 

(h)   Gender.   The use of the male gender in this Agreement
includes the female gender.

(i)   Arbitration.   Except for a dispute arising in relation
to the provisions of Sections 4 and 6 herein, any dispute between Employee and
the Company concerning the employment of the Employee by the Company terms of
this Agreement, including whether a breach has occurred, will be settled by
arbitration and will be governed by the rules and procedures set forth below:

(i)   Governing
Law.   Notwithstanding any other choice of law provisions
in the Agreement, the interpretation and enforcement of the arbitration
provisions of this Agreement shall be governed exclusively by the Federal
Arbitration Act, (“FAA”), 9 U.S.C. 1 et seq.,
provided that they are enforceable under the FAA, and shall otherwise be
governed by the law of the State of Illinois without regard to conflict of law
principles).

(ii)   Scope
of Arbitration.   Except as provided below, the parties
agree to submit to arbitration, in accordance with these provisions, any and
all disputes arising from or related to the employment relationship created by
this Agreement and any other disputes between the parties arising from or
related to their employment relationship and alleging common law tort
violations or violations of state or federal statutory rights. The parties
further agree that the arbitration process agreed upon herein shall be the exclusive
means for resolving all disputes made subject to arbitration herein and that
the decision of the arbitrator shall be final and binding and may be entered in
any court of competent jurisdiction.

(iii)   Time
Limits on Submitting Disputes.   The parties agree and
understand that one of the objectives of this arbitration agreement is to
resolve disputes expeditiously as well as fairly, and that it is the obligation
of both parties, to those ends, to raise any disputes subject to arbitration
hereunder in an expeditious manner. Accordingly, the parties agree to waive all
statutes of limitations that might otherwise be applicable and agree further
that, as to any dispute that can be brought hereunder, a demand for arbitration
must be postmarked or delivered in person to the other party no later than one
(1) year after the dispute arises. In the absence of a timely submitted written
demand for arbitration, an arbitrator has no authority to resolve the disputes
or render an award and no arbitrator has authority hereunder to determine the
timeliness of an arbitration demand.

(iv)   Availability
of Provisional Relief.   These arbitration provisions
shall not prevent the Company or the Employee, as the case may be, from obtaining
relief from a court of competent jurisdiction to enforce the obligations of
Sections 4 or 6 of the Agreement.

(v)   American
Arbitration Association Rules Apply as Modified Herein.   Any
arbitration hereunder shall be conducted under the National Rules for the
Resolution of Employment Disputes of the American Arbitration Association (“AAA”),
as modified herein.

 10
 

(vi)   Invoking
Arbitration.   Either party may invoke the arbitration
procedures described herein, by submitting to the other, in person or by mail,
a written demand for arbitration, containing a statement of the matter to be
arbitrated sufficient to establish the timeliness of the demand. The parties
shall then have fourteen (14) days within which they may identify a mutually
agreeable arbitrator. After the fourteen (14) day period has expired, the
parties shall prepare and submit to the American Arbitration Association a
joint submission, with the Company paying the appropriate administrative fee.
In their submission to the AAA, the parties shall either designate a mutually
acceptable arbitrator or request a panel of arbitrators from the AAA according
to the procedure described in (vii) below.

(vii)   Arbitrator
Selection.   In the event the parties cannot agree upon
an arbitrator within fourteen days after the demand for arbitration is
received, their joint submission to the AAA shall request a panel of nine (9)
arbitrators who are practicing attorneys with professional experience in the
field of labor and/or employment law, and the parties shall attempt to select
an arbitrator from the panel according to AAA procedures. In the event that the
parties are unsuccessful, they shall request a second panel of nine comparably
qualified arbitrators and repeat the selection process. If the parties remain
unable to select an arbitrator, then they shall request from AAA a third panel
of three comparably qualified arbitrators, from which the AAA shall reject the
least preferred candidate of each party, and select the candidate with the
highest joint ranking of the parties.

In the event of
the death or disability of an arbitrator, the parties shall select a new
arbitrator as provided above. The substitute arbitrator shall have the power to
determine the extent to which he or she shall act on the record already made in
arbitration.

(viii)   Prehearing
Procedures.   In order to achieve the objectives of a
just, fair, and expeditious resolution of the dispute, the arbitrator may
either, upon accepting assignment as arbitrator, (i) promptly conduct a
preliminary hearing or (ii) require the submission of written statements, or
both, in which event, each party shall be entitled to make a brief statement of
their respective positions, and at which time the arbitrator shall establish a
timetable for prehearing activities and the conduct of the hearing, and may
address initial requests from the parties for prehearing disclosure of
information. At the preliminary hearing and/or thereafter, arbitrator shall
have the discretion and authority to order, upon request or otherwise, the prehearing
disclosure of information to the parties, including, without limitation,
production of requested documents, exchange of witness lists and summaries of
the testimony of proposed witnesses, and examination by deposition of potential
witnesses. Pursuant to these same objectives, the arbitrator shall have the
authority, upon request or otherwise, to conference with the parties of their
designated representatives concerning any matter, and to set or modify
timetables for all aspects of the arbitration proceeding.

 11
 

(ix)   Stenographic
Record.   There shall be a stenographic record of the
arbitration hearing, unless the parties agree to record the proceedings by
other reliable means. The costs of recording the proceedings shall be borne by
the Company.

(x)   Location.   Unless
otherwise agreed by the parties, arbitration hearings shall take place in the
city and state where the office of the Company is located in which the Employee
was primarily employed during the term of the Agreement, at a place designated
by the AAA.

(xi)   Posthearing
Briefs.   After the close of the arbitration hearing, and
on any issue concerning prehearing procedures, the arbitrator may allow the
parties to submit written briefs.

(xii)   Confidentiality.   All
arbitration proceedings hereunder shall be confidential. Neither party shall
disclose any information about the evidence adduced by the other in the
arbitration proceeding or about documents produced by the other in connection
with the proceeding, except in the course of a judicial, regulatory, or
arbitration proceeding, or as may be requested by governmental authority or
legal process. Before making any disclosure permitted by the preceding
sentence, the party shall give the other party reasonable (under the
circumstances) written notice of the intended disclosure and an opportunity to
protect its interests. Expert witnesses and stenographic reports shall be
requested to sign appropriate nondisclosure agreements.

(xiii)   Costs.   All
expenses of such arbitration, including but not limited to the Employee’s
reasonable legal fees and disbursements, shall be borne by the Company unless
the arbitrators determine that Employee’s position was frivolous or taken in
bad faith (in which case Employee shall bear his own legal fees and
disbursements and the Parties shall equally divide the costs of the arbitration
and the AAA).

(xiv)   Remedies.   The
arbitrator shall have authority to award any remedy or relief that a court of
the State of Illinois could grant in conformity to applicable law, except that
the arbitrator shall have no authority to award attorneys’ fees (except as
provided in the Agreement) or punitive damages, can suggest but not order
reinstatement, and shall offset from any award of compensation any and all
amounts the prevailing party has received from collateral sources as
compensation for the same injury, that are not themselves subject to
reimbursement as a consequence of the award.

(xv)   Law
Governing the Arbitrator’s Award.   In rendering an
award, the arbitrator shall determine the rights and obligations of the parties
according to federal law and the substantive law of the State of Illinois
(excluding conflicts of laws principles), and the arbitrator’s decision shall
be governed by state and federal substantive law, including state and federal
discrimination laws, as though the matter were before a court of law.

 12
 

(xvi)   Written
Awards and Enforcement.   Any arbitration award shall be
accompanied by a written statement containing a summary of the issues in
controversy, a description of the award, and an explanation of the reasons for
the award. The parties agree that a competent court shall enter judgment upon
the award of the arbitrator, provided it is in conformity with the terms of
this Agreement.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

 13
 

IN
WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.

	
  

  	
  AON CORPORATION

  
	
   

  	
   

  
	
   

  	
  BY:

  	
   /s/ Greg Case

  
	
   

  	
   

  	
  Gregory C. Case

  
	
   

  	
   

  	
  Chief Executive Officer

  

 

I have read the
above Agreement and understand and agree to be bound by its terms.

	
  

  	
   /s/ Michael
  D. Rice

  
	
  

  	
  Michael D. Rice

  

 

 14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]