Document:

Exhibit
10.2

 

 

SUPERGEN, INC.

 

EXECUTIVE EMPLOYMENT AND
CONFIDENTIAL INFORMATION AND INVENTION ASSIGNMENT AGREEMENT

 

This Executive Employment and Confidential Information and Invention
Assignment Agreement (the “Agreement”) is made and entered into as of
January 1, 2004 (the “Effective Date”) by and between SuperGen, Inc.,
a Delaware corporation (the “Company”), and James S. Manuso (“Executive”).

 

RECITALS

 

WHEREAS, the Company and Executive desire to establish the terms on
which the Company will employ Executive as its President and Chief Executive
Officer.

 

NOW, THEREFORE, in consideration of the premises and mutual promises,
covenants, and conditions contained herein, the Company and Executive agree on
the terms and conditions set forth herein as follows:

 

AGREEMENT

 

1.                                      Term.  The Company hereby employs Executive and
Executive hereby accepts employment, on the terms and conditions set forth
herein.  The term of this Agreement
shall commence upon the Effective Date and shall continue until and including December 31,
2006.

 

2.                                      Positions
And Duties.  Executive agrees to
serve the Company as its President and Chief Executive Officer, or in such
other executive capacity as the Board may from time to time request.  During the term of this Agreement, Executive
will have all duties and responsibilities that are reasonably consistent with
these titles and positions and will devote all of his normal business time and
attention to, and use his best efforts to advance, the business of the Company.  Executive agrees not to actively engage in
any other employment, occupation or consulting activity for any direct or
indirect remuneration without the prior approval of the Board of Directors (the
“Board”), except that without the prior approval, Executive may serve on the board
of directors of other companies if in so doing Executive does not violate the
terms of this Agreement.

 

3.                                      Confidential Information.

 

3.1                               Company
Information.  Executive agrees
at all times during the term of his employment and thereafter, to hold in the
strictest confidence, and not to

 

 

use,
except for the benefit of the Company, or to disclose to any person, firm or
corporation without written authorization of the Board, any confidential
Information of the Company, except under a non-disclosure agreement duly
authorized and executed by the Company. 
Executive understands that “Confidential Information” means any
non-public information that relates to the actual or anticipated business or
research and development of the Company, technical data, trade secrets or
know-how, including, but not limited to, research, product plans or other
information regarding Company’s products or services and markets therefor,
customer lists and customers (including, but not limited to, customers of the
Company on whom Executive called with whom Executive became acquainted during
the term of his employment), software developments, inventions, processes,
formulas, technology, designs, drawings, engineering, hardware configuration
information, marketing, finances or other business information.  Executive further understands that
Confidential Information does not include any of the foregoing items that have
become publicly known and made generally available through no wrongful act of
Executive’s or of others who were under confidentiality obligations as to the
item or items involved or improvements or new versions thereof.

 

3.2                               Former
Employer Information.  Executive
agrees that he will not, during his employment with the Company, improperly use
or disclose any proprietary information or trade secrets of any former employer
or other person or entity and that he will not bring onto the premises of the
Company any unpublished document or proprietary information belonging to any
such employer, person or entity unless consented to in writing by such
employer, person or entity.

 

3.3                               Third
Party Information.  Executive
recognizes that the Company has received and in the future will receive from
third parties their confidential or proprietary information subject to a duty
on the Company’s part to maintain the confidentiality of such information and
to use it only for certain limited purposes. 
Executive agrees to hold all such confidential or proprietary
information in the strictest confidence and not to disclose it to any person,
firm or corporation or to use it except as necessary in carrying out
Executive’s work for the Company’s consistent with the Company’s agreement with
such third party.

 

4.                                      Inventions.

 

4.1                               Inventions
Retained And Licensed.  Except
as listed on Exhibit A, Executive does not have any inventions,
original works of authorship, developments, improvements, and trade secrets
which were made by him prior to his employment with the Company (collectively
referred to as “Prior Inventions”), which belong to him, which may relate to
the Company’s proposed business, products or research and development, and
which were not previously assigned to the Company.  If in the course of Executive’s employment with the Company,
Executive incorporates into a Company product, process or service a Prior
Invention owned by Executive or in which Executive has an interest, Executive
hereby grants to the Company a nonexclusive, royalty-free, fully paid-up,
irrevocable, perpetual, worldwide license to

 

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make,
have made, modify, use and sell such Prior Invention as part of or in
connection with such product, process or service, and to practice any method
related thereto.

 

4.2                               Assignment
of Inventions.  Executive agrees
that Executive will promptly make full written disclosure to the Company, will
hold in trust for the sole right and benefit of the Company, and hereby assigns
to the Company, or its designee, all Executive’s right, title, and interest in
and to any and all inventions, original works of authorship, developments,
concepts, improvements, designs, discoveries, ideas, trademarks or trade
secrets, whether or not patentable or registrable under copyright or similar
laws, which Executive may solely or jointly conceive or develop or reduce to
practice, or cause to be conceived or developed or reduced to practice, during
the period of time Executive is in the employ of the Company (collectively
referred to as “Inventions”), except as provided in Section 4.6 below.  Executive further acknowledges that all
original works of authorship which are made by him (solely or jointly with
others) within the scope of and during the period of his employment with the
Company, and which are protectible by copyright, are “works made for hire,” as
that term is defined in the United States Copyright Act.  Executive understands and agrees that the
decision whether or not to commercialize or market any Invention developed by
Executive solely or jointly with others is within the Company’s sole discretion
and for the Company’s sole benefit and that no royalty will be due to Executive
as a result of the Company’s efforts to commercialize or market any such
Invention.

 

4.3                               Inventions
Assigned To The United States. 
Executive agrees to assign to the United States government all his
right, title, and interest in and to any and all Inventions whenever such full
title is required to be in the United States by a contract between the Company
and the United States or any of its agencies.

 

4.4                               Maintenance
Of Records.  Executive agrees to
keep and maintain adequate and current written records of all Inventions made
by Executive (solely or jointly with others) during the period of his
employment with the Company.  The
records will be in the form of notes, sketches, drawings, and any other format
that may be specified by the Company. 
The records will be available to and remain the sole property of the
Company at all times.

 

4.5                               Patent
And Copyright Registrations. 
Executive agrees to assist the Company, or its designee, at the Company’s
expense, in every proper way to secure the intellectual property rights
relating thereto in any and all countries, including the disclosure to the
Company of all pertinent information and data with respect thereto, the
execution of all applications, specifications, oaths, assignments and all other
instruments which the Company shall deem necessary in order to apply for and
obtain such rights and in order to assign and convey to the Company, its
successors, assigns, and nominees the sole and exclusive rights, title and
interest in and to such Inventions, and any copyrights, patents, mask work
rights or other intellectual property rights relating thereto.  Executive further agrees that his obligation
to execute or cause to be executed when it is in his power to do so, any such
instrument or papers shall continue after the termination of this
Agreement.  If the Company is unable
because of Executive’s mental or physical incapacity or for any other reason to
secure Executive’s

 

3

 

signature to apply for or to pursue any application
for any United States or foreign patents or copyright registrations covering
Inventions or original works of authorship assigned to the Company as above,
then Executive hereby irrevocably designates and appoints the Company and its
duly authorized officers and agents as his agent and attorney in fact, to act
for and in Executive’s behalf and stead to execute and file any such
applications an to do all other lawfully permitted acts to further the
prosecution and issuance of letters patent or copyright registrations thereon
with the same legal force and effect as if executed by Executive.

 

4.6                               Exception
To Assignments.  Executive
understands that the provision of this Agreement requiring assignment of
Inventions to the Company do not apply to any Invention which qualifies fully
under the provisions of California Labor Code section 2870 (attached as Exhibit B).  Executive will advise the Company promptly
in writing of any Inventions that Executive believes meet the criteria in
California Labor Code Section 2870.

 

5.                                      Office.  The Company shall provide Executive with an
office at the location of the Company’s primary business operations that is
consistent with his positions and titles.

 

6.                                      Compensation And Fringe Benefits.

 

6.1                               Base
Salary.  For all services
rendered by Executive pursuant to this Agreement, the Company shall pay
Executive a base salary (the “Base Salary”) at the annual rate of not less than
Four Hundred Thousand Dollars ($400,000). 
The Base Salary shall be paid in periodic installments in accordance
with the Company’s regular payroll practices. 
Executive’s annual salary shall be adjusted annually on January 1 of
each year to compensate for changes in the cost of living.  The amount of each annual cost of living
increase shall be twice the rate determined for such annual period by the
“Consumer Price Index for Urban Wage Earners and Clerical Workers (All Items)
published by the bureau of Labor Statistics, U.S. Department of Labor (1967
equals 100).”

 

6.2                               Bonuses.

 

(a)                                  Executive
shall be entitled to a guaranteed bonus of One Hundred Thousand Dollars
($100,000) on December 31 of each year during the term of this Agreement,
provided that he remains continuously employed by the Company through each
applicable date (the “Guaranteed Bonus”), excepting for the first year of
employment, during which Executive may take down all or part of the guaranteed
bonus at any time after January 1, 2004. 
The Guaranteed Bonus for the second and third years of Executive’s
employment will be paid no later than January 31 of the following year for
which such Guaranteed Bonus is earned in accordance with the Company’s normal
payroll practices and policies.

 

(b)                                 Executive
shall be eligible to receive an annual performance-based bonus of Two Hundred
and Fifty Thousand Dollars ($250,000) based upon

 

4

 

achievement
of certain criteria to be specified by the compensation committee of the Board
(“Compensation Committee”), including (without limitation) revenue and
profitability targets and/or other organizational and strategic milestones (the
“Performance Bonus”; and together with the Guaranteed Bonus, the
“Bonuses”).  The Performance Bonus shall
be based upon achieving performance objectives during each calendar year and
shall be payable no later than March 31 of the following year in accordance
with the Company’s normal payroll practices and policies.

 

6.3                               Stock Options.

 

(a)                                  Executive
shall be permitted to participate in any stock option and similar plans as
adopted by the Company from time to time for the grant of stock options and
other equity incentives to the Company’s employees.  On the Effective Date and on each anniversary thereafter during
the term of this Agreement (subject to Executive’s continuous employment with
the Company through each such anniversary), the Company shall grant Executive a
stock option, which will be, to the extent possible under the $100,000 rule of
Section 422(d) of the Internal Revenue Code of 1986, as amended (the “Code”),
an “incentive stock option” (as defined in Section 422 of the Code), under the
Company’s 2003 Stock Plan (the “Plan”) to purchase 250,000 shares of the
Company’s common stock (as adjusted for stock splits and stock combinations
that may occur after the date of this Agreement), which each such option shall
have a per share exercise price equal to the fair market value of the Company’s
common stock on the applicable date of grant (each an “Annual Option” and collectively,
the “Annual Options”).  Subject to the
accelerated vesting provisions set forth herein, each Annual Option will vest
as to 1/12th of the shares subject to such option each month following its date
of grant, so that each Annual Option will be fully vested and exercisable one
year from its grant date, subject to Executive’s continuous service to the
Company through each relevant vesting date. 
Notwithstanding the above, in the event of a Change in Control (as
defined in Section 8.1 below) of the Company prior to the granting of all
Annual Options, then the securities underlying all of the then remaining yet
unvested Annual Options shall be accelerated with respect to their vesting and
shall be granted in their entirety to Executive.

 

(b)                                 On
the Effective Date, the Company shall grant Executive a stock option, which
will be, to the extent possible under the $100,000 rule of Section 422(d) of
the Code, an “incentive stock option” (as defined in Section 422 of the Code),
under the Plan to purchase 1,000,000 shares of the Company’s common stock,
which such option shall have a per share exercise price equal to the fair
market value of the Company’s common stock on the Effective Date (the
“Performance Option” and together with the Annual Options, the “Options”).  The Performance Option shall vest upon the
Company’s achievement of the following performance milestones, subject to
Executive’s continuous employment with the Company through the date any such
performance milestone is achieved:

 

•                  50,000
shares subject to the Performance Option will vest upon European approval of
Orathecin;

 

5

 

•                  50,000
shares subject to the Performance Option will vest upon European approval of
Decitabine;

 

•                  200,000
shares subject to the Performance Option will vest upon the securing of a
significant corporate partner for one or more of the Company’s drugs or
$25,000,000 in additional financing;

 

•                  200,000
shares subject to the Performance Option will vest upon the Company achieving annual
gross sales of $30,000,000 or more;

 

•                  50,000
shares subject to the Performance Option will vest upon the acquisition from a
third party of at least one Phase II or more advanced stage compound;

 

•                  100,000
shares subject to the Performance Option will vest upon completion of Phase III
of a compound acquired during Executive’s tenure as the Company’s Chief
Executive Officer during the term of this Agreement;

 

•                  100,000
shares subject to the Performance Option will vest upon FDA approval of a
compound acquired by the Company during the term of this Agreement; and

 

•                  250,000
shares subject to the Performance Option will vest upon achievement of
additional milestone(s) to be agreed upon with the Board.

 

(c)                                  Each
Option shall have a term of ten (10) years from its date of grant, subject to
earlier termination in connection with Executive’s termination of service to
the Company as provided in the Option Agreements.  The Options will be subject to the terms, definitions and
provisions of the Plan and the stock option agreements to be executed by and
between Executive and the Company (the “Option Agreements”), all of which
documents will have terms substantially identical to that of Executive’s
predecessor as Chief Executive Officer and are incorporated herein by
reference.

 

6.4                               Life
Insurance.  During the term of
the Agreement, the Company will pay the full premium on a $4 million key person
life insurance policy covering Executive. 
Executive will be entitled to select personal beneficiaries for 25% of
the proceeds of the insurance policy. 
The Company will provide Executive with additional cash compensation at
the end of each calendar year to fully offset taxes attributable to Executive
as a result of payment of the life insurance premiums by the Company.

 

6.5                               Other
Benefits.  Executive shall be
entitled to participate in such group life, pension, disability, accident,
hospital and medical insurance plans, and such

 

6

 

other
plan or plans which may be instituted by the Company for the benefit of its
executive employees generally, upon such terms as may be therein provided of
general application to all executive employees of the Company and such other
benefits as are mutually deemed appropriate by the Compensation Committee and
Executive to the position held by Executive and to the discharge of Executive’s
duties.  Executive shall be entitled to
not less than twenty (20) business days’ vacation per year, with remuneration,
which shall be coordinated with the vacation periods of other officers of the
Company in a manner that will minimize disruption of the Company’s management
efforts.

 

6.6                               Additional
Compensation.  Executive shall also be eligible to
receive such additional salary or other incentive compensations as the
Compensation Committee may, in its sole discretion, determine from time to
time.

 

7.                                      Expenses.

 

7.1                               Automobile
Expense.   Up to a maximum of
Twenty Thousand Dollars ($20,000) annually, the Company will lease and pay for
the maintenance of an automobile selected by Executive for his exclusive
use.  The Company will also pay for
automobile insurance for the Executive, up to a maximum of Three Thousand
Dollars ($3,000) annually.

 

7.2                               Business
Expenses.  The Company will pay
or reimburse Executive for reasonable travel, entertainment or other expenses
incurred by Executive in the furtherance of or in connection with the
performance of Executive’s duties hereunder in accordance with the Company’s
established policies.  Executive shall
furnish the Company with evidence of the incurrence of such expenses within a
reasonable period of time from the date that they were incurred.

 

7.3                               Relocation
Expenses.  The Company will pay
or reimburse Executive for all reasonable relocation expenses incurred by
Executive in connection with his and his family’s relocation from New York to
California, including, but not limited to short-term hotel costs or apartment
rental for Executive for a period not to exceed three (3) months, house-hunting
travel by Executive’s spouse and all household goods moving costs.  The total of all such amounts will not
exceed $60,000.  The Company will
provide Executive with additional cash compensation at the end of the calendar
year to fully offset taxes attributable to Executive as a result of payment of
such reasonable relocation expenses by the Company.

 

8.                                      Termination Benefits.

 

8.1                               Termination
Benefits.  If Executive’s
employment with the Company is terminated by the Company as a result of an
“Involuntary Termination” (as defined below) within one (1) year
following a “Change in Control” (as defined below), Executive shall be entitled
to receive the following severance benefits: 
(1) a lump sum payment equivalent to one (1) year of Executive’s
then current Base Salary; and (2) a lump sum payment equivalent to any unpaid
amount of the Bonuses referenced in

 

7

 

Section
6.2, up to a maximum of Five Hundred Thousand Dollars ($500,000); and (3) full
acceleration of the vesting of any then unvested stock options held by
Executive.

 

For the purposes of this Agreement, “Involuntary Termination” means (i)
without Executive’s express written consent, a significant reduction of
Executive’s duties, position or responsibilities relative to Executive’s
duties, position or responsibilities in effect immediately prior to such
reduction; (ii) without Executive’s express written consent, a substantial
reduction, without good business reasons, of the facilities and prerequisites
(including office space and location) available to Executive immediately prior
to such reduction; (iii) without Executive’s express written consent, a
material reduction by the Company of Executive’s base salary as in effect
immediately prior to such reduction; (iv) without Executive’s express written
consent, a material reduction by the Company in the kind or level of employee
benefits to which Executive is entitled immediately prior to such reduction
with the result that Executive’s overall benefits package is significantly
reduced; (v) without Executive’s express written consent, the relocation
of Executive to a facility or a location more than fifty (50) miles from the
current location of the Company, or (vi) any purported termination of Executive
other than for “Cause” (as defined below).

 

For the purposes of this Agreement, “Change in Control” means the
occurrence of any of the following events: (i) any “person” (as such term is
used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial
owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly,
of securities of the Company representing fifty percent (50%) or more of the
total voting power represented by the Company’s then outstanding voting
securities; (ii) the consummation of the sale or disposition by the Company of
all or substantially all of the Company’s assets; or (iii) the consummation of
a merger or consolidation of the Company with any other corporation, other than
a merger consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the
surviving entity or its parent) at least outstanding or by being converted into
voting securities of the surviving entity or its parent) at least fifty percent
(50%) of the total voting power represented by the voting securities of the
Company or such surviving entity or its parent outstanding immediately after
such merger or consolidation.

 

For the purposes of this Agreement, “Cause” means (i) any act of
personal dishonesty taken by the Executive in connection with his
responsibilities as a Service Provider which is intended to result in personal
enrichment of the Executive, (ii) the Executive’s conviction of a felony, (iii)
any act by the Executive that constitutes material misconduct and is injurious
to the Company, or (iv) continued violations by the Executive of the
Executive’s obligations to the Company.

 

8.2                               Limitation
On Payments.  In the event that
the severance and other benefits provided for in this Agreement or otherwise
payable to Executive, including but not limited to, the accelerated vesting of
any stock options previously or hereafter granted to Executive, (i) constitute
“parachute payments” within the meaning of Section 280G of the Code, and (ii)
would be subject to the excise tax imposed by

 

8

 

Section 4999 of the Code (the “Excise Tax”), then
Executive’s benefits under this Agreement shall be reduced to the extent
necessary in order to avoid such benefits being subject to the Excise Tax.

 

Unless the Company and Executive otherwise agree in writing, any
determination required under this Section shall be made in writing by the
Company’s independent public accountants (the “Accountants”), whose
determination shall be conclusive and binding upon Executive and the Company
for all purposes.  For purposes of
making the calculations required by this Section, the Accountants may make
reasonable assumptions and approximations concerning applicable taxes and may
rely on reasonable, good faith interpretations concerning the application of
Section 280G and 4999 of the Code.  The
Company and Executive shall furnish to the Accountants such information and
documents as the Accountants may reasonably request in order to make a
determination under this Section.  The
Company shall bear all costs the Accountants may reasonably incur in connection
with any calculations contemplated by this Section.

 

9.                                      Arbitration And Equitable Relief.

 

9.1                               Arbitration.  In consideration of Executive’s employment
with the Company, the Company’s promise to arbitrate all employment-related
disputes and Executive’s employment with the Company, the Company’s promise to
arbitrate all employment-related disputes and Executive’s receipt of the
compensation and other benefits paid to Executive by the Company, at present
and in the future, Executive agrees that any and all controversies claims or
disputes with anyone (including the Company and any employee, officer,
director, shareholder or benefit pan of the Company in their capacity as such
or otherwise) arising out of, relating to, or resulting from Executive’s
employment with the Company, or the termination of Executive’s employment with
the Company, including any breach of this Agreement, shall be subject to
binding arbitration rules set forth in California Code of Civil Procedure
Section 1280 through 1294.2, including Section 1283.05 (the “Rules”) and
pursuant to California law.  Disputes
which Executive agrees to arbitrate, and thereby agrees to waive any right to a
trial by jury, include any statutory claims under the state or federal law,
including, but not limited to, claims under title VII of the Civil Rights Act
of 1964, the Americans with Disabilities Act of 1990, the Age Discrimination in
Employment Act of 1967, the Older Workers Benefit Protection Act, the
California Fair Employment and Housing Act, the California Labor Code, claims
of harassment, discrimination or wrongful termination and any statutory
claims.  Executive further understands
that this Agreement to arbitrate also applies to any disputes that the Company
may have with Executive.

 

9.2                               Procedure.  Executive agrees that any arbitration will
be administered by the American Arbitration Association (“AAA”) and that the
neutral arbitrator will be selected in a manner consistent with its National
rules for the Resolution of Employment Disputes.  Executive agrees that the arbitrator shall have the power to
decide any motions brought to any party to the arbitration, including motions
for summary judgment and/or adjudication and motions to dismiss and demurrers,
prior

 

9

 

to any arbitration hearing.  Executive also agrees that the arbitrator shall have the power to
award any remedies, including attorneys’ fees and costs, available under
applicable law.  Executive understands
the Company will pay for any administrative or hearing fees charged by the
arbitrator or AAA, except that Executive shall pay the first $125.00 of any
filing fees associated with any arbitration he initiates.  Executive agrees that the arbitrator shall
administer and conduct any arbitration in a manner consistent with the rules
and that to the extent that the AAA’s National Rules for the Resolution of
Employment Disputes conflict with the Rules, the Rules shall take
precedence.  Executive agrees that the
decision of the arbitrator shall be in writing.

 

9.3                               Remedy.  Except as provided by the Rules and this
Agreement, arbitration shall be the sole, exclusive and final remedy for any
dispute between Executive and the Company. 
Accordingly, except as provided for and by the Rules and this Agreement,
neither Executive nor the Company will be permitted to pursue court action
regarding claims that are subject to arbitration.  Notwithstanding, the arbitrator will not have the authority to
disregard or refuse to enforce any lawful Company policy, and the arbitrator
shall not order or require the Company to adopt a policy not otherwise required
by law which the Company has not adopted.

 

9.4                               Availability
Of Injunctive Relief.  In
addition to the right under the Rules to petition to the court for provisional
relief, Executive agrees that any party may also petition the court for
injunctive relief whether either party alleges or claims a violation of this
Agreement or any other agreement regarding trade secrets, confidential
information, nonsolicitation of Labor Code '2870.  Executive understands that any breach or threatened breach of
such an agreement will cause irreparable injury and that money damages will not
provide an adequate remedy therefor and both parties hereby consent to the
issuance of an injunction.  In the event
either party seeks injunctive relief, the prevailing party shall be entitled to
recover reasonable costs and attorney fees.

 

9.5                               Administrative
Relief.  Executive understands
that this Agreement does not prohibit Executive from pursuing an administrative
claim with a local, state or federal administrative body such as the Department
of Fair Employment and Housing, the Equal Employment Opportunity Commission, or
the Workers’ Compensation Board.  This
Agreement, however, does preclude Executive from pursing court action regarding
any such claim.

 

9.6                               Voluntary
Nature Of This Agreement. 
Executive acknowledges and agrees that Executive is executing this
Agreement voluntarily and without any duress or undue influence by the Company
or anyone else.  Executive further
acknowledges and agrees that Executive has carefully read this Agreement and
has asked any questions needed for Executive to understand the terms,
consequences and binding effect of this Agreement and fully understand it,
including that  Executive is waiving his right to a jury
trial.  Finally,
Executive agrees that he has been provide an opportunity to seek the advice of
an attorney of his choice before signing this Agreement.

 

10

 

10.                               Contract Renewal.  This Agreement is automatically renewed for
a successive three (3) year term unless either party gives the other party
three (3) months notice prior to expiration of the Agreement of their intent
not to renew the Agreement.

 

11.                               Assignment.  This Agreement shall be binding upon and
inure to the benefit of (a) the heirs, executors an legal representatives of
Executive upon Executive’s death and (b) any successor of the Company.  Any such successor of the Company shall be
deemed substituted for the Company under the terms of this Agreement for all
purposes.  As used herein, “successor”
shall include any person, firm, corporation or other business entity which at
ant time, whether by purchase, merger or otherwise, directly or indirectly
acquires all or substantially all of the assets or business of the Company.  None of the rights of executive to receive
any form of compensation payable pursuant to this Agreement shall be assignable
or transferable except through a testamentary disposition or by the laws of
descent and distribution upon the death of Executive.  Any attempted assignment, transfer, conveyance or other
disposition (other than as aforesaid) of any interest in the rights of
Executive to receive any form of compensation hereunder shall be null and void.

 

12.                               Notices.  All notices, requests, demands and other
communications called for hereunder shall be in writing and shall be deemed
given if delivered personally or three (3) days after being mailed by
registered or certified mail, return receipt requested, prepaid and addressed
to the parties or their successors in interest at the following addresses, or
at such other addresses as the parties may designate by written notice in the
manner aforesaid:

 

	
  If to the Company:

  	
  SuperGen, Inc.

  
	
   

  	
  4140 Dublin Blvd., Suite 200

  
	
   

  	
  Dublin, CA 
  94568

  
	
   

  	
  Attn:

  	
  Chief Financial Officer and

  
	
   

  	
   

  	
  Chairman of the Governance

  
	
   

  	
   

  	
  and Nominating Committee of

  
	
   

  	
   

  	
  the SuperGen Board of Directors

  
	
   

  	
   

  	
   

  
	
  If to the Executive:

  	
  James S. Manuso

  
	
   

  	
  5130 Route 212

  
	
   

  	
  Willow, NY 12495

  

 

13.                               Severability.  In the event that any provision hereof
becomes or is declared by a court of competent jurisdiction to be illegal,
unenforceable or void, this Agreement shall continue in full force and effect
without said provision.

 

14.                               Entire
Agreement.  This Agreement,
together with the Plan and Option Agreements, represents the entire agreement
and understanding between the Company and Executive concerning Executive’s
employment relationship with the Company, and supersedes and replaces any and
all prior agreements and understandings, whether oral or written, concerning
Executive’s employment relationship with the Company.

 

11

 

15.                               Waiver
of Breach.  The waiver of a
breach of any term or provision of this Agreement, which must be in writing,
will not operate as or be construed to be a waiver of any other previous or
subsequent breach of this Agreement.

 

16.                               Headings.  All captions and section headings used in
this Agreement are for convenient reference only and do not form a part of this
Agreement.

 

17.                               No
Oral Modification, Cancellation Or Discharge.  This Agreement may only be amended, canceled or discharged in
writing signed by Executive and the Company.

 

18.                               Tax
Withholding.  All payments made
pursuant to this Agreement will be subject to withholding of applicable taxes.

 

19.                               Governing
Law.  This Agreement shall be
governed by the internal substantive laws, but not the choice of law rules, of
the State of California.

 

20.                               Acknowledgement.  Executive acknowledges that he has had the
opportunity to discuss this matter with and obtain advice from his private
attorney, has had sufficient time to, and has carefully read and fully
understands all the provisions of this Agreement, and is knowingly and
voluntarily entering into this Agreement.

 

21.                               Counterparts.  This Agreement may be executed in
counterparts, and each counterpart will have the same force and effect as an
original and will constitute an effective, binding agreement on the part of
each of the undersigned.

 

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

 

 

	
  SUPERGEN,
  INC.

  	
   

  	
  JAMES
  S. MANUSO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Walter Lack

  	
   

  	
   

  	
  /s/ James S. Manuso

  	
   

  
	
   

  	
  Walter Lack

  	
   

  	
   

  
	
   

  	
  Chairman,
  Governance &

  	
   

  	
   

  
	
   

  	
  Nominating
  Committee of the

  	
   

  	
   

  
	
   

  	
  SuperGen Board
  of Directors

  	
   

  	
   

  
						

 

12

 

EXHIBIT A

 

INVENTIONS
RETAINED AND LICENSED

 

 

EXHIBIT B

 

CALIFORNIA LABOR CODE
SECTION 2870

INVENTION ON OWN TIME – EXEMPTION FROM AGREEMENT

 

(a)                                  Any
provision in an employment agreement which provides that an employee shall
assign, or offer to assign, any of his or her rights in an invention to his or
her employer shall not apply to an invention that the employee developed
entirely on his or her own time without using the employer’s equipment,
supplies, facilities, or trade secret information except for those inventions
that either:

 

(1)                                  Relate
at the time of conception or reduction to practice of the invention to the
employer’s business, or actual or demonstrably anticipate research or
development of the employer; or

 

(2)                                  Result
from any work performed by the employee for the employer.

 

(b)                                 To
the extent a provision in an employment agreement purports to require an
employee to assign an invention otherwise excluded from being required to be
assigned under subdivision (a), the provision is against the public policy of
this state and is unenforceable.QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.13    
    

CHEROKEE INTERNATIONAL CORPORATION

2004 OMNIBUS STOCK INCENTIVE PLAN  

Section 1.    General Purpose of Plan; Definitions.  

        The name of this plan is the Cherokee International Corporation 2004 Omnibus Stock Incentive Plan (the "Plan"). The Plan was adopted by the Board (defined below)
on                        , 2004, subject to the approval of the stockholders of the Company (defined below). The purpose of the
Plan is to enable the Company to attract and retain highly qualified personnel
who will contribute to the Company's success and to provide incentives to Participants (defined below) that are linked directly to increases in stockholder value and will therefore inure to the
benefit of all stockholders of the Company. 

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

        (a)   "Administrator" means the Board, or if and to the extent the Board does not administer the Plan, the Committee in
accordance with Section 2 below. 

        (b)   "Board" means the Board of Directors of the Company. 

        (c)   "Code" means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto. 

        (d)   "Committee" means any committee the Board may appoint to administer the Plan. To the extent necessary and desirable, the
Committee shall be composed entirely of individuals who meet the qualifications referred to in Section 162(m) of the Code and Rule 16b-3 under the Exchange Act. If at any
time or to any extent the Board shall not administer the Plan, then the functions of the Board specified in the Plan shall be exercised by the Committee. 

        (e)   "Company" means Cherokee International Corporation, a Delaware corporation (or any successor corporation). 

        (f)    "Deferred Stock" means the right to receive Stock at the end of a specified deferral period granted pursuant to
Section 7 below. 

        (g)   "Disability" means the inability of a Participant to perform the essential functions of his or her position with the
Company or any Parent or Subsidiary by reason of a physical or mental disability or infirmity, as determined by the Board in its sole discretion, (i) for a continuous period of more than ninety
(90) days, or (ii) for one hundred twenty (120) days in any consecutive twelve (12) month period. The date of such Disability shall be the ninety-first consecutive day or
the one hundred twenty-first day in any consecutive twelve (12) month period, as the case may be. 

        (h)   "Eligible Recipient" means an officer, director, employee, consultant or advisor of the Company or of any Parent or
Subsidiary. 

        (i)    "Employee Director" means any director of the Company who is also an employee of the Company or of any Parent or
Subsidiary. 

        (j)    "Exchange Act" means the Securities Exchange Act of 1934, as amended from time to time. 

        (k)   "Fair Market Value" means, as of any given date, with respect to any awards granted hereunder, (A) the closing
sale price of a share of Stock on such date on the principal securities exchange on which the Company's equity securities are listed or traded, or (B) in the absence of an established market
for the Stock, the fair market value of a share of Stock as otherwise determined by the Administrator in the good faith exercise of its discretion. Notwithstanding anything to the contrary contained
herein, for purposes of the grant of Initial Options (as defined in Section 5(h)) to Non-Employee Directors on the Effective Date (as defined in Section 11), the fair market
value of the 

 

Shares
shall be the initial price to the public as set forth in the final prospectus included within the Registration Statement. 

        (l)    "Incentive Stock Option" means any Stock Option intended to be and designated as an "incentive stock option" within the
meaning of Section 422 of the Code. 

        (m)  "Non-Employee Director" means a director of the Company who is not an employee of the Company or of any
Parent or Subsidiary. 

        (n)   "Non-Qualified Stock Option" means any Stock Option that is not an Incentive Stock Option, including any
Stock Option that provides (as of the time such Stock Option is granted) that it will not be treated as an Incentive Stock Option. 

        (o)   "Parent" means any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if
each of the corporations in the chain (other than the Company) owns stock possessing 50% or more of the combined voting power of all classes of stock in one of the other corporations in the chain. 

        (p)   "Participant" means (i) any Eligible Recipient selected by the Administrator, pursuant to the Administrator's
authority in Section 2 below, to receive grants of Stock Options, Stock Appreciation Rights, awards of Restricted Stock, Deferred Stock, or Performance Shares or any combination of the
foregoing, or (ii) any Non-Employee Director who is eligible to receive grants of Stock Options pursuant to Section 5(h) below. 

        (q)   "Performance Shares" means shares of Stock that are subject to restrictions based upon the attainment of specified
performance objectives granted pursuant to Section 7 below. 

        (r)   "Registration Statement" means the registration statement on Form S-1 filed with the Securities and
Exchange Commission for the initial underwritten public offering of the Company's Stock. 

        (s)   "Restricted Stock" means shares of Stock subject to certain restrictions granted pursuant to Section 7 below. 

        (t)    "Stock" means the common stock, par value $0.001 per share, of the Company. 

        (u)   "Stock Appreciation Right" means the right pursuant to an award granted under Section 6 below to receive an amount
equal to the excess, if any, of (A) the Fair Market Value, as of the date such Stock Appreciation Right or portion thereof is surrendered, of the shares of Stock covered by such right or such
portion thereof, over (B) the aggregate exercise price of such right or such portion thereof. 

        (v)   "Stock Option" means an option to purchase shares of Stock granted pursuant to Section 5 below. 

        (w)  "Subsidiary" means any corporation (other than the Company) in an unbroken chain of corporations beginning with the
Company, if each of the corporations (other than the last corporation) in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the
other corporations in the chain. 

2

 

Section 2.    Administration.  

        The Plan shall be administered in accordance with the requirements of Section 162(m) of the Code (but only to the extent necessary and desirable to
maintain qualification of awards under the Plan under Section 162(m) of the Code) and, to the extent applicable, Rule 16b-3 under the Exchange Act
("Rule 16b-3"), by the Board or, at the Board's sole discretion, by the Committee, which shall be appointed by the Board, and which shall serve at the pleasure of the Board.
Notwithstanding the foregoing, the full Board, acting by a majority of its members in office, shall conduct the general administration of the Plan with respect to awards granted to
Non-Employee Directors. 

        Pursuant
to the terms of the Plan, the Administrator shall have the power and authority to grant to Eligible Recipients pursuant to the terms of the Plan: (a) Stock Options,
(b) Stock Appreciation Rights, (c) awards of Restricted Stock, Deferred Stock or Performance Shares or (d) any combination of the foregoing;  provided, however, that automatic, nondiscretionary grants of Stock Options shall be made to
Non-Employee Directors pursuant to and in accordance with the terms of Section 5(h) below. Except as otherwise provided in Section 5(h) below, the Administrator shall have
the authority: 

        (a)   to
select those Eligible Recipients who shall be Participants; 

        (b)   to
determine whether and to what extent Stock Options, Stock Appreciation Rights, awards of Restricted Stock, Deferred Stock or Performance Shares or a combination of
any of the foregoing, are to be granted hereunder to Participants; 

        (c)   to
determine the number of shares of Stock to be covered by each award granted hereunder; 

        (d)   to
determine the terms and conditions, not inconsistent with the terms of the Plan, of each award granted hereunder (including, but not limited to, (x) the
restrictions applicable to awards of Restricted Stock or Deferred Stock and the conditions under which restrictions applicable to such awards of Restricted Stock or Deferred Stock shall lapse, and
(y) the performance goals and periods applicable to awards of Performance Shares); 

        (e)   to
determine the terms and conditions, not inconsistent with the terms of the Plan, which shall govern all written instruments evidencing Stock Options, Stock
Appreciation Rights, awards of Restricted Stock, Deferred Stock or Performance Shares or any combination of the foregoing granted hereunder; and 

        (f)    to
reduce the option price of any Stock Option to the then current Fair Market Value if the Fair Market Value of the Stock covered by such Stock Option has declined
since the date such Stock Option was granted. 

        The
Administrator shall have the authority, in its sole discretion, to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall from
time to time deem advisable; to interpret the terms and provisions of the Plan and any award issued under the Plan (and any agreements relating thereto); and to otherwise supervise the administration
of the Plan. 

        All
decisions made by the Administrator pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons, including the Company and the Participants. 

Section 3.    Stock Subject to Plan.  

        The total number of shares of Stock reserved and available for issuance under the Plan shall be 800,000 shares, plus an annual increase to be added on the first
day of the Company's fiscal year (beginning 2005) equal to the lesser of (i) 450,000 shares or (ii) two percent (2%) of the number of outstanding shares on the last day of the
immediately preceding fiscal year. Such shares may consist, in whole or in part, of authorized and unissued shares or treasury shares. The aggregate number of shares of Stock as to which Stock
Options, Stock Appreciation Rights, and awards of Restricted Stock, 

3

 

Deferred
Stock and Performance Shares may be granted to any Participant during any calendar year may not, subject to adjustment as provided in this Section 3, exceed 500,000 shares of Stock
reserved for the purposes of the Plan. 

        Consistent
with the provisions of Section 162(m) of the Code, as from time to time applicable, to the extent that (i) a Stock Option expires or is otherwise terminated
without being exercised, or (ii) any shares of Stock subject to any award of Restricted Stock, Deferred Stock or Performance Shares granted hereunder are forfeited, such shares of Stock shall
again be available for issuance in connection with future awards granted under the Plan. If any shares of Stock have been pledged as collateral for indebtedness incurred by a Participant in connection
with the exercise of a Stock Option and such shares of Stock are returned to the Company in satisfaction of such indebtedness, such shares of Stock shall again be available for issuance in connection
with future awards granted under the Plan. 

        In
the event of any merger, reorganization, consolidation, recapitalization, stock dividend or other change in corporate structure affecting the Stock, an equitable substitution or
proportionate adjustment shall be made in (i) the aggregate number of shares of Stock reserved for issuance under the Plan and the maximum number of shares of Stock that may be granted to any
Participant in any calendar year, (ii) the kind, number and option price of shares of Stock subject to outstanding Stock Options and Stock Appreciation Rights granted under the Plan, and
(iii) the kind, number and purchase price of shares of Stock subject to outstanding awards of Restricted Stock, Deferred Stock and Performance Shares granted under the Plan, in each case as may
be determined by the Administrator, in its sole discretion. Such other substitutions or adjustments shall be made as may be determined by the Administrator, in its sole discretion. An adjusted option
price shall also be used to determine the amount payable by the Company upon the exercise of any Stock Appreciation Right related to any Stock Option. In connection with any event described in this
paragraph, the Administrator may provide, in its sole discretion, for the cancellation of any outstanding awards and payment in cash or other property therefor. 

Section 4.    Eligibility.  

        Eligible Recipients shall be eligible to be granted Stock Options, Stock Appreciation Rights, awards of Restricted Stock, Deferred Stock or Performance Shares or
any combination of the foregoing
hereunder. The Participants under the Plan shall be selected from time to time by the Administrator, in its sole discretion, from among the Eligible Recipients, and the Administrator shall determine,
in its sole discretion, the number of shares of Stock covered by each such award. 

Section 5.    Stock Options.  

        Stock Options may be granted alone or in addition to other awards granted under the Plan. Any Stock Option granted under the Plan shall be in such form as the
Administrator may from time to time approve, and the provisions of Stock Option awards need not be the same with respect to each Participant. Participants who are granted Stock Options shall enter
into a subscription and/or award agreement with the Company, in such form as the Administrator shall determine, which agreement shall set forth, among other things, the option price of the Stock
Option, the term of the Stock Option and provisions regarding exercisability of the Stock Option granted thereunder. 

        The
Stock Options granted under the Plan may be of two types: (i) Incentive Stock Options and (ii) Non-Qualified Stock Options. 

        The
Administrator shall have the authority to grant to any officer or employee of the Company or of any Parent or Subsidiary (including directors who are also officers of the Company)
Incentive Stock Options, Non-Qualified Stock Options, or both types of Stock Options (in each case with or without Stock Appreciation Rights). Directors who are not also officers or
employees of the Company or of any Parent or Subsidiary, consultants or advisors to the Company or to any Parent or Subsidiary may only 

4

 

be
granted Non-Qualified Stock Options (with or without Stock Appreciation Rights). To the extent that any Stock Option does not qualify as an Incentive Stock Option, it shall constitute a
separate Non-Qualified Stock Option. More than one Stock Option may be granted to the same Participant and be outstanding concurrently hereunder. 

        Stock
Options granted under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the
Plan, as the Administrator shall deem desirable: 

        (a)   Option Price.    The option price per share of Stock purchasable under a Stock Option shall be determined by
the Administrator in its sole discretion at the time of grant but shall not, (i) in the case of Incentive Stock Options, be less than 100% of the Fair Market Value of the Stock on such date,
(ii) in the case of Non-Qualified Stock Options intended to qualify as "performance-based compensation" within the meaning of Section 162(m) of the Code, be less than 100% of
the Fair Market Value of the Stock on such date and (iii) in any event, be less than the par value (if any) of the Stock. If a Participant owns or is deemed to own (by reason of the attribution
rules applicable under Section 424(d) of the Code) more than 10% of the combined voting power of all classes of stock of the Company or of any Parent or Subsidiary and an Incentive Stock Option
is granted to such Participant, the option price of such Incentive Stock Option (to the extent required at the time of grant by the Code) shall be no less than 110% of the Fair Market Value of the
Stock on the date such Incentive Stock Option is granted. 

        (b)   Option Term.    The term of each Stock Option shall be fixed by the Administrator, but no Stock Option shall be
exercisable more than ten years after the date such Stock Option is granted; provided, however, that if
an employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10% of the combined voting power of all classes of stock of the Company or of
any Parent or Subsidiary and an Incentive Stock Option is granted to such employee, the term of such Incentive Stock Option (to the extent required by the Code at the time of grant) shall be no more
than five years from the date of grant. 

        (c)   Exercisability.    Stock Options shall be exercisable at such time or times and subject to such terms and
conditions as shall be determined by the Administrator at or after the time of grant. The Administrator may provide at the time of grant, in its sole discretion, that any Stock Option shall be
exercisable only in installments, and the Administrator may waive such installment exercise provisions at any time, in whole or in part, based on such factors as the Administrator may determine, in
its sole discretion, including but not limited to in connection with any "change in control" of the Company (as defined in the agreement evidencing such Stock Option). 

        (d)   Method of Exercise.    Subject to paragraph (c) of this Section 5, Stock Options may be exercised
in whole or in part at any time during the option period, by giving written notice of exercise to the Company specifying the number of shares of Stock to be purchased, accompanied by payment in full
of the purchase price in cash or its equivalent, as determined by the Administrator. As determined by the Administrator, in its sole discretion, payment in whole or in part may also be made
(i) by means of any cashless exercise procedure approved by the Administrator, (ii) in the form of unrestricted Stock already owned by the Participant which, (x) in the case of
unrestricted Stock acquired upon exercise of an option, have been owned by the Participant for more than six months on the date of surrender, and (y) has a Fair Market Value on the date of
surrender equal to the aggregate option price of the Stock as to which such Stock Option shall be exercised and the minimum statutory withholding taxes with respect thereto, (iii) in the case
of the exercise of a Non-Qualified Stock Option, in the form of Restricted Stock or Performance Shares subject to an award hereunder (based, in each case, on the Fair Market Value of the
Stock on the date the Stock Option is exercised); provided, however, that in the case of an Incentive
Stock Option, the right to make payment in the form of already owned shares of Stock may be authorized only at the time of grant, (iv) any other form of consideration approved by 

5

 

the
Administrator and permitted by applicable law or (v) any combination of the foregoing. If payment of the option price of a Non-Qualified Stock Option is made in whole or in part
in the form of Restricted Stock or Performance Shares, the shares of Stock received upon the exercise of such Stock Option shall be restricted in accordance with the original terms of the Restricted
Stock award or Performance Shares award in question, except that the Administrator may direct that such restrictions shall apply only to that number of shares of Stock equal to the number of shares
surrendered upon the exercise of such Stock Option. A Participant shall generally have the rights to dividends and any other rights of a stockholder with respect to the Stock subject to the Stock
Option only after the Participant has given written notice of exercise, has paid in full for such shares, and, if requested, has given the representation described in paragraph (b) of
Section 10 below. Notwithstanding the foregoing, no Participant who is a member of the Board or an "executive officer" of the Company within the meaning of Section 13(d) of the Exchange
Act shall be permitted to pay the exercise of a Stock Option using any method which would violate Section 13(k) of the Exchange Act. 

        Notwithstanding
anything to the contrary contained herein, a Stock Option may not be exercised for a fraction of a share of Stock. 

        The
Administrator may require the surrender of all or a portion of any Stock Option granted under the Plan as a condition precedent to the grant of a new Stock Option. Subject to the
provisions of the Plan, such new Stock Option shall be exercisable at the price, during such period and on such other terms and conditions as are specified by the Administrator at the time the new
Stock Option is granted. Consistent with the provisions of Section 162(m), to the extent applicable, upon their surrender, Stock Options shall be canceled and the shares of Stock previously
subject to such canceled Stock Options shall again be available for future grants of Stock Options and other awards hereunder. 

        (e)   Non-Transferability of Options.    Except by will or under the laws of descent and distribution,
the Participant shall not be permitted to sell, transfer, pledge or assign any Stock Option, and all Stock Options shall be exercisable, during the Participant's lifetime, only by the Participant. 

        (f)    Termination of Employment or Service.    If a Participant's employment with or service as a director,
consultant or advisor to the Company or to any Parent or Subsidiary terminates by reason of his or her death, Disability or for any other reason, the Stock Option may thereafter be exercised to the
extent provided in the agreement evidencing such Stock Option, or as otherwise determined by the Administrator. 

        (g)   Annual Limit on Incentive Stock Options.    To the extent that the aggregate Fair Market Value (determined as
of the date the Incentive Stock Option is granted) of shares of Stock with respect to which Incentive Stock Options granted to a Participant under this Plan and all other option plans of the Company
or of any Parent or Subsidiary become exercisable for the first time by the Participant during any calendar year exceeds $100,000 (as determined in accordance with Section 422(d) of the Code),
the portion of such Incentive Stock Options in excess of $100,000 shall be treated as Non-Qualified Stock Options. 

        (h)   Automatic Grants of Stock Options to Non-Employee Directors.    The Company shall grant
Non-Qualified Stock Options to Non-Employee Directors pursuant to this subsection (h), which grants shall be automatic and nondiscretionary and otherwise subject to the terms
and conditions set forth in this subsection (h) and the terms of the Plan ("Automatic Non-Employee Director Options"). Each Non-Employee Director shall be automatically
granted a Non-Qualified Stock Option to purchase 10,000 shares of Stock (an "Initial Option") upon the later of (i) the Effective Date or (ii) the date the
Non-Employee Director first joins the Board, and thereafter shall be automatically granted a Non-Qualified Stock Option to purchase 10,000 shares of Stock (the "Annual
Options") on the date immediately following the Company's annual meeting of stockholders (beginning 2005); provided,  however, that he or she is then a
director of the Company and, provided,  further, that as of such date, such director shall have served on the Board for at least the preceding six
(6) months. 

6

 

        The
term of each Automatic Non-Employee Director Option shall be ten (10) years, and the option price per share of Stock purchasable under an Automatic
Non-Employee Director Option shall be no less than 100% of the Fair Market Value of the Stock on the date of grant. Each Automatic Non-Employee Director Option shall vest in
four equal annual installments commencing on the anniversary of the date of grant. 

        In
the event that the number of shares of Stock available for grant under the Plan is not sufficient to accommodate the Automatic Non-Employee Director Options, then the
remaining shares of Stock available for Automatic Non-Employee Director Options shall be granted to Non-Employee Directors on a pro-rata basis. No further grants
shall be made until such time, if any, as additional shares of Stock become available for grant under the Plan through action of the Board and/or the stockholders of the Company to increase the
number of shares of Stock that may be issued under the Plan or through cancellation or expiration of awards previously granted hereunder. 

Section 6.    Stock Appreciation Rights.  

        Stock Appreciation Rights may be granted either alone ("Free Standing Rights") or in conjunction with all or part of any Stock Option granted under the Plan
("Related Rights"). In the case of a Non-Qualified Stock Option, Related Rights may be granted either at or after the time of the grant of such Stock Option. In the case of an Incentive
Stock Option, Related Rights may be granted only at the time of the grant of the Incentive Stock Option. The Administrator shall determine the Eligible Recipients to whom, and the time or times at
which, grants of Stock Appreciation Rights shall be made; the number of shares of Stock to be awarded, the exercise price, and all other conditions of Stock Appreciation Rights. Notwithstanding the
foregoing, no Related Right may be granted for more shares than are subject to the Stock Option to which it relates. The provisions of Stock Appreciation Rights need not be the same with respect to
each Participant. 

        Stock
Appreciation Rights granted under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the
terms of the Plan, as the Administrator shall deem desirable: 

        (a)   Awards.    The prospective recipient of a Stock Appreciation Right shall not have any rights with respect to
such award, unless and until such recipient has executed an agreement evidencing the award (a "Stock Appreciation Right Agreement") and delivered a fully executed copy thereof to the Company, within a
period of sixty days (or such other period as the Administrator may specify) after the award date. Participants who are granted Stock Appreciation Rights shall have no rights as stockholders of the
Company with respect to the grant or exercise of such rights. 

        (b)   Exercisability. 

        (i)    Stock
Appreciation Rights that are Free Standing Rights ("Free Standing Stock Appreciation Rights") shall be exercisable at such time or times and subject to such terms
and conditions as shall be determined by the Administrator at or after grant; provided, however, that no
Free Standing Stock Appreciation Right shall be exercisable during the first six months of its term, except that this additional limitation shall not apply in the event of a Participant's death or
Disability prior to the expiration of such six-month period. 

        (ii)   Stock
Appreciation Rights that are Related Rights ("Related Stock Appreciation Rights") shall be exercisable only at such time or times and to the extent that the Stock
Options to which they relate shall be exercisable in accordance with the provisions of Section 5 above and this Section 6 of the Plan;  provided, however, that a Related Stock Appreciation Right granted in connection with an Incentive Stock
Option shall be exercisable only if and when the Fair Market Value of the Stock subject to the Incentive Stock Option exceeds the option price of such Stock Option;  provided, further, that no Related Stock Appreciation Right shall be exercisable during the
 

7

 

first
six months of its term, except that this additional limitation shall not apply in the event of a Participant's death or Disability prior to the expiration of such six-month period. 

        (c)   Payment Upon Exercise. 

        (i)    Upon
the exercise of a Free Standing Stock Appreciation Right, the Participant shall be entitled to receive up to, but not more than, an amount in cash or that number of
shares of Stock (or any combination of cash and shares of Stock) equal in value to the excess of the Fair Market Value of one share of Stock as of the date of exercise over the price per share
specified in the Free Standing Stock Appreciation Right (which price shall be no less than 100% of the Fair Market Value of the Stock on the date of grant) multiplied by the number of shares of Stock
in respect of which the Free Standing Stock Appreciation Right is being exercised, with the Administrator having the right to determine the form of payment. 

        (ii)   A
Related Right may be exercised by a Participant by surrendering the applicable portion of the related Stock Option. Upon such exercise and surrender, the Participant
shall be entitled to receive up to, but not more than, an amount in cash or that number of shares of Stock (or any combination of cash and shares of Stock) equal in value to the excess of the Fair
Market Value of one share of Stock as of the date of exercise over the option price per share specified in the related Stock Option multiplied by the number of shares of Stock in respect of which the
Related Stock Appreciation Right is being exercised, with the Administrator having the right to determine the form of payment. Stock Options which have been so surrendered, in whole or in part, shall
no longer be exercisable to the extent the Related Rights have been so exercised. 

        (d)   Non-Transferability. 

        (i)    Free
Standing Stock Appreciation Rights shall be transferable only when and to the extent that a Stock Option would be transferable under Section 5 of the Plan. 

        (ii)   Related
Stock Appreciation Rights shall be transferable only when and to the extent that the underlying Stock Option would be transferable under Section 5 of the
Plan. 

        (e)   Termination of Employment or Service. 

        (i)    In
the event of the termination of employment or service of a Participant who has been granted one or more Free Standing Stock Appreciation Rights, such rights shall be
exercisable at such time or times and subject to such terms and conditions as shall be determined by the Administrator at or after grant. 

        (ii)   In
the event of the termination of employment or service of a Participant who has been granted one or more Related Stock Appreciation Rights, such rights shall be
exercisable at such time or times and subject to such terms and conditions as set forth in the related Stock Options. 

        (f)    Term. 

        (i)    The
term of each Free Standing Stock Appreciation Right shall be fixed by the Administrator, but no Free Standing Stock Appreciation Right shall be exercisable more than
ten years after the date such right is granted. 

        (ii)   The
term of each Related Stock Appreciation Right shall be the term of the Stock Option to which it relates, but no Related Stock Appreciation Right shall be
exercisable more than ten years after the date such right is granted. 

Section 7.    Restricted Stock, Deferred Stock and Performance Shares.  

        Awards of Restricted Stock, Deferred Stock or Performance Shares may be issued either alone or in addition to other awards granted under the Plan. The
Administrator shall determine the Eligible Recipients to whom, and the time or times at which, awards of Restricted Stock, Deferred Stock or Performance Shares shall be made; the number of shares to
be awarded; the price, if any, to be paid by 

8

 

the
Participant for the acquisition of Restricted Stock, Deferred Stock or Performance Shares; the Restricted Period (as defined in paragraph (b) of this Section 7) applicable to awards
of Restricted Stock or Deferred Stock; the performance objectives applicable to awards of Deferred Stock or Performance Shares; and all other conditions of the awards of Restricted Stock, Deferred
Stock and Performance Shares. Subject to the requirements of Section 162(m) of the Code, as applicable, the Administrator may also condition the grant of the award of Restricted Stock, Deferred
Stock or Performance Shares upon the exercise of Stock Options, or upon such other criteria as the Administrator may determine, in its sole discretion. The provisions of the awards of Restricted
Stock, Deferred Stock or Performance Shares need not be the same with respect to each Participant. 

        (a)   Awards and Certificates.    The prospective recipient of awards of Restricted Stock, Deferred Stock or
Performance Shares shall not have any rights with respect to any such award, unless and until such recipient has executed an agreement evidencing the award (a "Restricted Stock Award Agreement,"
"Deferred Stock Award Agreement" or "Performance Shares Award Agreement," as appropriate) and delivered a fully executed copy thereof to the Company, within a period of sixty days (or such other
period as the Administrator may specify) after the award date. Except as otherwise provided below in this Section 7(b), (i) each Participant who is granted an award of Restricted Stock
or Performance Shares shall be issued a stock certificate in respect of such shares of Restricted Stock or Performance Shares; and (ii) such certificate shall be registered in the name of the
Participant, and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to any such award. 

        The
Company may require that the stock certificates evidencing Restricted Stock or Performance Shares granted hereunder be held in the custody of the Company until the restrictions
thereon shall have lapsed, and that, as a condition of any award of Restricted Stock or Performance Shares, the Participant shall have delivered a stock power, endorsed in blank, relating to the Stock
covered by such award. 

        With
respect to awards of Deferred Stock, at the expiration of the Restricted Period, stock certificates in respect of such shares of Deferred Stock shall be delivered to the
Participant, or his legal representative, in a number equal to the number of shares of Stock covered by the Deferred Stock award. 

        (b)   Restrictions and Conditions.    The awards of Restricted Stock, Deferred Stock and Performance Shares granted
pursuant to this Section 7 shall be subject to the following restrictions and conditions: 

        (i)    Subject
to the provisions of the Plan and the Restricted Stock Award Agreement, Deferred Stock Award Agreement or Performance Shares Award Agreement, as appropriate,
governing any such award, during such period as may be set by the Administrator commencing on the date of grant (the "Restricted Period"), the Participant shall not be permitted to sell, transfer,
pledge or assign shares of Restricted Stock, Deferred Stock or Performance Shares awarded under the Plan; provided,  however, that the Administrator may, in
its sole discretion, provide for the lapse of such restrictions in installments and may accelerate or waive such
restrictions in whole or in part based on such factors and such circumstances as the Administrator may determine, in its sole discretion, including, but not limited to, the attainment of certain
performance related goals, the Participant's termination of employment or service as a director, consultant or advisor to the Company or any Parent or Subsidiary, the Participant's death or Disability
or the occurrence of a "change in control" as defined in the Restricted Stock Award Agreement, Deferred Stock Award Agreement or Performance Shares Award Agreement, as appropriate, evidencing such
award. 

        (ii)   Except
as provided in paragraph (b)(i) of this Section 7, the Participant shall generally have the rights of a stockholder of the Company with
respect to Restricted Stock or Performance Shares during the Restricted Period. The Participant shall generally not have the rights of a stockholder with respect to Stock subject to awards of Deferred
Stock during the Restricted 

9

 

Period;
provided, however, that dividends declared during the Restricted Period with respect to the
number of shares of Stock covered by Deferred Stock shall be paid to the Participant. Certificates for shares of unrestricted Stock shall be delivered to the Participant promptly after, and only
after, the Restricted Period shall expire without forfeiture in respect of such awards of Restricted Stock, Deferred Stock or Performance Shares except as the Administrator, in its sole discretion,
shall otherwise determine. 

        (iii)  The
rights of Participants granted awards of Restricted Stock, Deferred Stock or Performance Shares upon termination of employment or service as a director, consultant
or advisor to the Company or to any Parent or Subsidiary terminates for any reason during the Restricted Period shall be set forth in the Restricted Stock Award Agreement, Deferred Stock Award
Agreement or Performance Shares Award Agreement, as appropriate, governing such awards. 

Section 8.    Amendment and Termination.  

        The Board may amend, alter or discontinue the Plan, but no amendment, alteration, or discontinuation shall be made that would impair the rights of a Participant
under any award theretofore granted without such Participant's consent, or that, without the approval of the stockholders (as described below), would: 

        (a)   except
as provided in Section 3 of the Plan, increase the total number of shares of Stock reserved for issuance under the Plan; 

        (b)   change
the class of officers, directors, employees, consultants and advisors eligible to participate in the Plan; or 

        (c)   extend
the maximum option period under paragraph (b) of Section 5 of the Plan. 

        Notwithstanding
the foregoing, stockholder approval under this Section 8 shall only be required at such time and under such circumstances as stockholder approval would be required
under Sections 162(m) and 422 of the Code, stock exchange rules or other applicable law or regulation with respect to any material amendment to an employee benefit plan of the Company. 

        The
Administrator may amend the terms of any award theretofore granted, prospectively or retroactively, but, subject to Section 3 of Plan, no such amendment shall impair the
rights of any Participant without his or her consent. 

Section 9.    Unfunded Status of Plan.  

        The Plan is intended to constitute an "unfunded" plan for incentive compensation. With respect to any payments not yet made to a Participant by the Company,
nothing contained herein shall give any such Participant any rights that are greater than those of a general creditor of the Company. 

Section 10.    General Provisions.  

        (a)   Shares
of Stock shall not be issued pursuant to the exercise of any award granted hereunder unless the exercise of such award and the issuance and delivery of such
shares of Stock pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act and the requirements of any
stock exchange upon which the Stock may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 

        (b)   The
Administrator may require each person acquiring shares of Stock hereunder to represent to and agree with the Company in writing that such person is acquiring the
shares of Stock without a view to distribution thereof. The certificates for such shares of Stock may include any legend which the Administrator deems appropriate to reflect any restrictions on
transfer. 

10

 

        All
certificates for shares of Stock delivered under the Plan shall be subject to such stop-transfer orders and other restrictions as the Administrator may deem advisable
under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Stock is then listed, and any applicable Federal or state securities
law, and the Administrator may cause a legend or legends to be placed on any such certificates to make appropriate reference to such restrictions. 

        (c)   Nothing
contained in the Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to stockholder approval, if such approval is
required; and such arrangements may be either generally applicable or applicable only in specific cases. The adoption of the Plan shall not confer upon any Eligible Recipient any right to continued
employment or service with the Company or any Parent or Subsidiary, as the case may be, nor shall it interfere in any way with the right of the Company or any Parent or Subsidiary to terminate the
employment or service of any of its Eligible Recipients at any time. 

        (d)   Each
Participant shall, no later than the date as of which the value of an award first becomes includible in the gross income of the Participant for Federal income tax
purposes, pay to the Company, or make arrangements satisfactory to the Administrator regarding payment of, any Federal, state, or local taxes of any kind required by law to be withheld with respect to
such award. The obligations of the Company under the Plan shall be conditional on the making of such payments or arrangements, and the Company shall, to the extent permitted by law, have the right to
deduct any such taxes from any payment of any kind otherwise due to the Participant. 

        (e)   No
member of the Board or the Administrator, nor any officer or employee of the Company acting on behalf of the Board or the Administrator, shall be personally liable
for any action, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Board or the Administrator and each and any officer or employee of the
Company acting on their behalf shall, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, determination or interpretation. 

Section 11.    Stockholder Approval; Effective Date of Plan.  

        (a)   The
grant of any award hereunder shall be contingent upon stockholder approval of the Plan being obtained within 12 months before or after the date the Board
adopts the Plan. 

        (b)   Subject
to the approval of the Plan by the stockholders of the Company within twelve (12) months before or after the date the Plan is adopted by the Board, the
Plan shall be effective as of the first trading day on or after the date on which the Securities and Exchange Commission declares the Company's Registration Statement effective (the "Effective Date"). 

Section 12.    Term of Plan.  

        No Stock Option, Stock Appreciation Right, or awards of Restricted Stock, Deferred Stock or Performance Shares shall be granted pursuant to the Plan on or after
the tenth anniversary of the Effective Date, but awards theretofore granted may extend beyond that date. 

11

QuickLinks

Exhibit 10.13

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