Terms of Employee Bonus Plan for 2005
On August 3, 2005, the Compensation Committee (the “Committee”) of the Telik, Inc. (the “Company”) Board of Directors
established the terms of an employee bonus plan for 2005 related to the payment of bonuses to the Company’s executive
officers for services to be performed in 2005. These bonuses are designed to attract, motivate, and retain the Company’s
executive officers and are based on the Company’s performance and the performance of individual executive officer as
determined by the Company’s Board of Directors or the Committee.
The plan provides for the payment to each executive officer of a bonus ranging from 0% to 150% of such executive
officer’s base salary. The amount of the bonus, if any, will be determined by the Committee based on the Committee’s
assessment of the achievement of specified corporate objectives in 2005, including the completion of milestones relating to the
progress of the Company’s clinical trials, planning and commercialization initiatives, corporate financial objectives, and clinical
research and development programs, as well as the achievement of individual performance goals.
The actual bonuses payable for 2005, if any, will vary depending upon the extent to which actual performance meets,
exceeds, or falls short of the corporate objectives and any individual goals, and upon the level of the Company’s then current or
anticipated cash reserves.
The Company’s Board of Directors or the Committee reserve the right to modify the corporate or individual performance
criteria based on business, financial and operational changes that may occur during the year.