Document:

Exhibit 10.3

                          EMPLOYMENT SECURITY AGREEMENT

         THIS EMPLOYMENT SECURITY AGREEMENT is entered into this 23rd day of
May, 2005 between UnionBancorp, Inc., a Delaware corporation (the "Company"),
and Kurt R. Stevenson (the "Executive").

                                   WITNESSETH:

         WHEREAS, Executive is currently employed by the Company as its Senior
Vice President and Chief Financial Officer;

         WHEREAS, Executive is currently employed by UnionBank, an Illinois
state chartered banking association (the "Bank"), as its Senior Vice President
and Chief Financial Officer;

         WHEREAS, the Bank is a wholly-owned subsidiary of the Company; and

         WHEREAS, the Company desires to provide certain security to Executive
in connection with a change in control of the Company;

         NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein, and other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties hereto agree as follows:

         1.       Payment on Change of Control. If within two years after a
"Change in Control" (as defined in Section 2) the Company, the Bank or any other
Person (as defined in Section 2) shall terminate the Executive's employment
without "Good Cause" (as defined in Section 2) or Executive shall voluntarily
terminate such employment with "Good Reason" (as defined in Section 2), then the
Company shall, within 30 days after the termination of Executive's employment
(the "Payment Due Date"), make a lump sum cash payment to him equal to two times
the Executive's "Salary" (as defined in Section 2). As used herein, "termination
of employment" shall mean termination of employment with the Company or the Bank
or both. Executive shall, following his termination of employment and for a
period of two years continue to participate in any benefit plans of the Company
or the Bank which provide health (including medical and dental), life, or
disability insurance, or similar coverage to the extent permitted by law and the
applicable benefit plan; provided that such coverage shall not be furnished if
Executive waives coverage by giving written notice of waiver to the Company. The
Company agrees that (i) Executive shall not be required to mitigate his damages
by seeking other employment or otherwise, and (ii) the Company's obligations
under this Section 1 shall not be reduced in any way by reason of any
compensation received by Executive from sources other than the Company after the
termination of Executive's employment.
<PAGE>

         It is intended that no portion of any payment under this Agreement, or
payments to or for the benefit of Executive under any other agreement or plan,
be deemed an "Excess Parachute Payment" as defined in Section 280G of the
Internal Revenue Code of 1986, as amended (the "Code"), or its successors. It is
agreed that the present value of any payments to or for the benefit of Executive
in the nature of compensation, as determined by the certified public accountants
of the Company in accordance with Section 280G(d)(4) of the Code, the receipt of
which is contingent on the Change of Control of the Company, and to which
Section 280(G) of the Code applies (in the aggregate "Total Payments"), shall
not exceed an amount equal to one dollar less than the maximum amount which the
Company may pay without loss of deduction under Section 280G(a) of the Code.

         2.       Definitions.   For purposes of this Agreement:

                  (i)      A "Change in Control" shall be deemed to have taken
place upon:

         A.   The acquisition by any individual, entity or group (within the
              meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
              Act of 1934, as amended (the "Exchange Act")) (a "Person") of
              beneficial ownership (within the meaning of Rule 13d-3 promulgated
              under the Exchange Act) of 40% or more of either (1) the then
              outstanding shares of common stock of the Company (the
              "Outstanding Company Common Stock") or (2) 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"); provided, however, that
              for purposes of this subparagraph A, the following acquisitions
              shall not constitute a Change in Control: (i) any acquisition
              directly from the Company, (ii) any acquisition by the Company,
              (iii) any acquisition by any employee benefit plan (or related
              trust) sponsored or maintained by the Company or any corporation
              controlled by the Company, (iv) any acquisition by any Person who
              as of the date hereof owns or controls 10% or more of the
              Outstanding Company Common Stock; or (v) any acquisition by any
              corporation pursuant to a transaction which complies with clauses
              (1), (2) and (3) of subparagraph C of this paragraph (i); or

         B.   Individuals who, as of the date hereof, constitute the Board of
              Directors of the Company (the "Incumbent Board") cease for any
              reason to constitute at least a majority of the Board of
              Directors; provided, however, that any individual who becomes a
              director subsequent to the date hereof and whose election, or
              nomination for election by the Company's shareholders, was
              approved by a vote of at least a majority of the directors then
              comprising the Incumbent Board (either by a specific vote or by
              approval of the proxy statement of the Company in which such
              person is named as a nominee for director, without written
              objection to such nomination) shall be deemed to be a member of
              the Incumbent Board; provided, further, that notwithstanding the
              immediately preceding proviso, any individual whose initial
              assumption of office occurs as a result of an actual or threatened
              election contest with respect to the election or removal of

                                       2
<PAGE>

              directors or other actual or threatened solicitation of proxies or
              contests by or on behalf of a Person, other than the Board of
              Directors of the Company, shall not be deemed to be a member of
              the Incumbent Board; or

         C.   Consummation of a reorganization, merger, share exchange or
              consolidation or sale or other disposition of all or substantially
              all of the assets of the Company (a "Business Combination"), in
              each case, unless, following such Business Combination: (1) all or
              substantially all of the individuals and entities who were the
              beneficial owners, respectively, of the Outstanding Company Common
              Stock and Outstanding Company Voting Securities immediately prior
              to such Business Combination beneficially own, directly or
              indirectly, more than 65% of, respectively, the then outstanding
              shares of common stock and the combined voting power of the then
              outstanding voting securities entitled to vote generally in the
              election of directors, as the case may be, of the corporation
              resulting from such Business Combination (including, without
              limitation, a corporation which as a result of such transaction
              owns the Company or all or substantially all of the Company's
              assets either directly or through one or more subsidiaries) in
              substantially the same proportions as their ownership, immediately
              prior to such Business Combination, of the Outstanding Company
              Common Stock and Outstanding Company Voting Securities, as the
              case may be; (2) no Person (excluding any corporation resulting
              from such Business Combination or any employee benefit plan (or
              related trust) of the Company or such corporation resulting from
              the Business Combination) beneficially owns, directly or
              indirectly, 40% or more of, respectively, the then outstanding
              shares of common stock of the corporation resulting from such
              Business Combination or the combined voting power of the then
              outstanding voting securities of such corporation except to the
              extent that such ownership existed prior to the Business
              Combination; and (3) at least a majority of the members of the
              board of directors of the corporation resulting from such Business
              Combination were members of the Incumbent Board immediately prior
              to the time of the execution of the initial agreement, or of the
              action of the Board of Directors of the Company, providing for
              such Business Combination; or

         D.   Approval by the stockholders of the Company of a complete
              liquidation or dissolution of the Company.

                  (ii)     "Good Cause" shall mean (A) Executive's death or
disability, (B) Executive's engagement in, during the performance of his duties
to the Company or the Bank, any willful act or omission constituting dishonesty,
breach of fiduciary obligation, wrongdoing or malfeasance, in each case that
results in substantial harm to the business or property of the Company or the
Bank, or (C) Executive's conviction of an offense involving fraud, dishonesty or
breach of trust. For purposes of clause (B) above, no act or omission on the
part of Executive shall be considered "willful" unless it is done, or omitted to
be done, by Executive in bad faith or without reasonable belief that his action
or omission was in the best interests of the Company or the Bank. Any act or

                                       3
<PAGE>

omission based upon authority given pursuant to a resolution duly adopted by the
Board of Directors of the Company or the Bank or upon the instructions of the
chief executive officer of the Company or the Bank shall be conclusively
presumed to be done, or omitted to be done, by Executive in good faith and in
the best interests of the Company and the Bank. The termination of Executive's
employment shall not be deemed to be for "Good Cause" under clauses (B) or (C)
above unless and until there shall have been delivered to Executive a copy of a
resolution duly adopted by the affirmative vote of not less than 75 % of the
entire membership of the Board of Directors of the Company or the Bank, at a
meeting of either such Board called and held for such purpose (after reasonable
notice is provided to Executive and Executive is given an opportunity, together
with counsel, to he heard before either such Board), finding that, in the good
faith opinion of either such Board, Executive is guilty of the conduct described
in clauses (B) or (C) above and specifying the particulars thereof in detail.

                  (iii)    "Good Reason" shall exist if (A) there is a
significant reduction in the nature or the scope of Executive's authority; (B)
there is a reduction in Executive's Salary; (C) the Company or the Bank changes
the principal location in which Executive is required to perform services; (D)
the Company or the Bank requires Executive, or assigns duties to Executive which
would reasonably require Executive, to spend more than 50 normal working days
away from the principal location in which Executive is required to perform
services during any twelve-month period; (E) Executive's duties,
responsibilities and status are materially reduced from his present duties,
responsibilities and status; (F) the Company or the Bank terminates any
incentive, retirement, health or welfare plan so that, when considered in the
aggregate and with any substitute plan or plans, the incentive, retirement,
health or welfare plans in which he is participating fail to provide him with a
substantially similar level of benefits; or (G) the Company or the Bank purports
to terminate Executive's employment for any reason other than "Good Cause."

                  (iv)     "Salary" shall mean the Executive's highest annual
rate of base compensation (excluding bonuses and fringe benefits) in effect at
any time from the date of the Change in Control to the date of termination of
Executive's employment.

         3.       Litigation Expenses. Expenses, including attorneys' fees,
incurred by a party hereto in connection with the enforcement of this Agreement,
shall be paid by the nonprevailing party.

         4.       Successors. The obligations of the Company provided for in
this Agreement shall be the binding legal obligations of any successor to the
Company by purchase, merger, consolidation, or otherwise. This Agreement may not
be assigned by Executive during his life, and upon his death will inure to the
benefit of his heirs, legatees and the legal representatives of his estate.

         5.       Termination of Agreement. If Executive is an active
participant in a group or other entity effecting an acquisition of the Company
and, after such acquisition, he holds an equity interest in the group or other
entity that has acquired the Company, this agreement shall terminate. Without

                                       4
<PAGE>

limiting the generality of the foregoing, Executive's ownership of less than 1%
of the capital stock of any publicly traded corporation shall not constitute
active participation in a group.

         6.       Interpretation. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the state of
Illinois.

         7.       Withholding. The Company may withhold from any payment that it
is required to make under this Agreement amounts sufficient to satisfy
applicable withholding requirements under any federal, state or local law.

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

                                         UNIONBANCORP, INC.

                                         By: /s/ DEWEY R. YAEGER
                                             ------------------------------
                                             Dewey R. Yaeger

                                             /s/ KURT R. STEVENSON
                                             ------------------------------
                                             Kurt R. Stevenson

                                       5Form of Performance Share Award Agreement / Stock Bonus Plan dated February
      13, 2006 between Registrant and key employees and consultants

    EXHIBIT
      10.106

    

    PEREGRINE
      PHARMACEUTICALS, INC.

    PERFORMANCE
      SHARE AWARD AGREEMENT/

    STOCK
      BONUS PLAN

    

    

    Peregrine
      Pharmaceuticals, Inc., a Delaware corporation (“Peregrine” or the “Company”),
      hereby awards to [NAME]
      (the
“Grantee”), a participant in the Peregrine Stock Bonus Plan (the “Bonus Plan”),
      as it may be amended, a Performance Share Award (the “Award”) for the number of
      shares of Common Stock of the Company (“Stock”) as set forth in Section 1 and
      subject to adjustments as provided in Sections 4 and Section 5 below. The Award
      is made effective as of the 13th day of February, 2006. The Award is under
      the
      Company’s 2005 Stock Incentive Plan (“Incentive Plan”), and any shares of Stock
      earned and to be issued pursuant hereto shall be issued from and in accordance
      with the Incentive Plan.

     

    1. Award.
      Grantee
      is hereby granted a Performance Share Award (the “Award”), which Award
      represents the right to earn and receive up to [SHARES]
      shares
      of
      Stock, subject to adjustment as provided in Sections 4 and 5 and the terms
      and
      conditions set forth in this Agreement.

     

    2. Performance
      Goals.
      The
      Company will issue shares of Stock to Grantee under this Agreement upon the
      Company’s attainment of certain predetermined milestones (each a “Milestone”) as
      set forth on an exhibit to the Stock Bonus Plan Summary, a copy of which is
      attached hereto as Exhibit
      A.
      The
      specific date that the Grantee will be deemed to have earned the shares of
      Stock
      with respect to a Milestone is described in the Stock Bonus
      Summary.

     

    3. Form
      and Timing of Delivery of Certificate.
      Any
      Stock that Grantee shall have earned and become entitled to receive upon the
      attainment of any such Milestone shall be issued in accordance with the schedule
      on, and in the manner described in, the Stock Bonus Summary.

     

    4. Termination
      of Employment.
       Upon
      the
      termination of the Grantee’s employment with the Company for any reason, Grantee
      shall be entitled to receive only those shares of Stock earned with respect
      to
      Milestones attained prior to the date of such termination but not yet issued
      in
      accordance with Exhibit
      A.

     

    5. Adjustments.
      Neither
      the existence of the Bonus Plan nor this Award shall affect, in any way, the
      right or power of the Company to make or authorize: any or all adjustments,
      recapitalizations, reorganizations, or other changes in the Company’s capital
      structure or its business; or any merger or consolidation of the Company; or
      the
      dissolution or liquidation of the Company; or any sale or transfer of all or
      any
      part of its assets or business; or any corporate act or proceeding, whether
      of a
      similar character or otherwise; all of which, and the resulting adjustments
      in,
      or impact on, the Award are more fully defined in the Incentive
      Plan.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6. Withholding
      and Deductions.
      

     

    (a) Grantee
      is ultimately liable and responsible for all taxes owed by the Grantee in
      connection with the Award, regardless of any action the Company or any
      subsidiary takes with respect to any tax withholding obligations that arise
      in
      connection with the Award. Neither the Company nor any subsidiary makes any
      representation or undertaking regarding the treatment of any tax withholding
      in
      connection with the grant of the Award or the subsequent issuance or sale of
      Stock subject to the Award. The Company and its subsidiaries do not commit
      and
      are under no obligation to structure the Award to reduce or eliminate Grantee’s
      tax liability.

     

    (b) Prior
      to
      any event in connection with the Award (e.g., issuance) that the Company
      determines may result in any tax withholding obligation, whether United States
      federal, state, local or non-U.S., including any employment tax obligation
      (the
“Tax Withholding Obligation”), Grantee must arrange for the satisfaction of the
      minimum amount of such Tax Withholding Obligation in a manner acceptable to
      the
      Company. Unless Grantee determines to satisfy the Tax Withholding Obligation
      by
      some other means in accordance with subsection (c) below, Grantee’s acceptance
      of this Award constitutes the Grantee’s instruction and authorization to the
      Company and any brokerage firm determined acceptable to the Company for such
      purpose to sell on the Grantee’s behalf a whole number of shares of Stock from
      those shares issuable to the Grantee as the Company determines to be appropriate
      to generate cash proceeds sufficient to satisfy the minimum applicable Tax
      Withholding Obligation. Such shares of Stock will be sold on the day such Tax
      Withholding Obligation arises (e.g., an issuance date) or as soon thereafter
      as
      practicable. Grantee will be responsible for all broker’s fees and other costs
      of sale, and Grantee agrees to indemnify and hold the Company harmless from
      any
      losses, costs, damages, or expenses relating to any such sale. To the extent
      the
      proceeds of such sale exceed Grantee’s minimum Tax Withholding Obligation, the
      Company agrees to pay such excess in cash to Grantee. Grantee acknowledges
      that
      the Company or its designee is under no obligation to arrange for such sale
      at
      any particular price, and that the proceeds of any such sale may not be
      sufficient to satisfy Grantee’s minimum Tax Withholding Obligation. Accordingly,
      Grantee agrees to pay to Company or any subsidiary as soon as practicable,
      including through additional payroll withholding, any amount of the Tax
      Withholding Obligation that is not satisfied by the sale of Shares described
      above. 

     

    (c) At
      any
      time no later than the date immediately prior to the date the Company issues
      shares of Stock, Grantee may elect to satisfy the Grantee’s Tax Withholding
      Obligation with respect to such shares of Stock by delivering to the Company
      an
      amount that the Company determines is sufficient to satisfy the Tax Withholding
      Obligation by (x) wire transfer to such account as the Company may direct,
      (y)
      delivery of a certified check payable to the Company, or (z) such other means
      as
      specified from time to time by the Company.

     

    7. Compliance
      with Exchange Act.
      If the
      Grantee is subject to Section 16 of the Securities Exchange Act of 1934, as
      amended, the shares of Stock granted pursuant to this Award is intended to
      comply with all applicable conditions of Rule 16b-3 or its successors under
      the
      Exchange Act.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    8. Non-Assignability.
      The
      Award and Grantee’s rights under this Agreement shall not be transferable other
      than by will or by the laws of descent and distribution. The Performance Share
      Award is otherwise non-assignable. The terms hereof shall be binding on the
      executors, administrators, heirs and successors of the Grantee.

     

    9. Voting
      Rights.
      The
      Grantee will have no voting rights with respect to shares of Stock subject
      to
      the Performance Share Award not earned and issued to Grantee.

     

    10. Tax
      Issues.
      Pursuant to Section 83 of the Internal Revenue Code of 1986 the value of
      the shares of Stock received by Grantee will be taxed as ordinary income as
      of
      the date of receipt by the Grantee.

     

    11. Employment
      Agreement.
      Notwithstanding anything to the contrary contained in this Agreement, (a)
      neither the Bonus Plan, Incentive Plan nor this Agreement is intended to create
      an express or implied contract of employment for a specified term between the
      Grantee and the Company and (b) unless otherwise expressed or provided, in
      writing, by an authorized officer, the employment relationship between the
      Grantee and the Company shall be defined as “employment at will” wherein either
      party, without prior notice, may terminate the relationship with or without
      cause.

     

    12. Regulatory
      Approvals and Listing.
      The
      Company shall not be required to issue any certificate for shares of Stock
      upon
      the attainment of any Milestone as set forth in this Agreement prior to
      satisfying any regulatory approval, registration, qualification or other
      requirements of the Securities and Exchange Commission, the Internal Revenue
      Service or any other governmental agency which the Committee, in its sole
      discretion, shall determine to be necessary or advisable. 

     

    13. Administration.
      This
      Agreement shall at all times be subject to the terms and conditions of the
      Bonus
      Plan and the Incentive Plan, and each Plan shall in all respects be administered
      by the Compensation Committee in accordance with the terms of and as provided
      in
      the Incentive Plan. The Compensation Committee shall have the sole and complete
      discretion with respect to the interpretation of this Agreement and the Bonus
      Plan, and all matters reserved to it by the Plan. The decisions of the majority
      of the Compensation Committee with respect thereto and to this Agreement shall
      be final and binding upon Grantee and the Company. In the event of any conflict
      between the terms and conditions of this Agreement and the Incentive Plan,
      the
      provisions of the Incentive Plan shall control.

     

    14. Waiver
      and Modification.
      The
      provisions of this Agreement may not be waived or modified unless such waiver
      or
      modification is in writing signed by the Company. 

     

    15. Validity
      and Construction.
      The
      validity and construction of this Award shall be governed by the laws of the
      State of California.

     

    TO
      THE EXTENT THIS AGREEMENT IS SILENT ON
      AN ISSUE OR THERE IS A CONFLICT BETWEEN THE INCENTIVE PLAN AND THIS AGREEMENT,
      THE PLAN PROVISIONS SHALL CONTROL.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company has caused this Performance Share Award Agreement
      to be executed, effective as of February 13th,
      2006.

     

    PEREGRINE
      PHARMACEUTICALS, INC. 

    

    

    By  
      ________________________________

    Paul
      Lytle, Chief Financial Officer

     

    ________________________________

    Grantee

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    PEREGRINE
      PHARMACEUTICALS, INC.

    STOCK
      BONUS PLAN SUMMARY

    

    
      	
            	1.	
              Approval
                Date. This Stock Bonus Plan (the “Plan”) has been approved by
                the Company’s Compensation Committee of the Board on February 13 ,
                2006.

            

    

    

    
      	 	
              2.

            	
              Max.
                No. of Shares.
                Up
                to 1,737,166
                shares of Peregrine’s common stock may be earned by all Grantees upon the
                attainment of milestones set forth in the below Milestone
                Table.

            

    

    

    
      	 	
              3.

            	
              Plan.
                The shares shall be reserved for issuance under the Company’s 2005 Stock
                Incentive Plan.

            

    

    

    
      	 	
              4.

            	
              Date
                of Stock Issuance For Milestones Achieved. 

            

    

    

    
      	
              Milestone
                Timeframe

            	 	
              Shares
                Issuance Period

            
	
              For
                all milestones achieved and bonuses “earned” before March 31,
                2006

            	 	
              During
                April 2006

            
	
              For
                all milestones achieved and bonuses “earned” between April 1, 2006
                

              and
                June 30, 2006

            	 	
              During
                July 2006

            
	
              For
                all milestones achieved and bonuses “earned” between July 1, 2006
                

              and
                September 30, 2006

            	 	
              During
                October 2006

            
	
              For
                all milestones achieved and bonuses “earned” between October 1, 2006
                

              and
                December 31, 2006

            	 	
              During
                January 2007

            
	
              For
                all milestones achieved and bonuses “earned” between January 1, 2007
                

              and
                April 1, 2007

            	 	
              During
                April 2007

            

    

    

    
      	 	
              For
                purposes of financial statement purposes, a bonus will be deemed
“earned”,
                and the recipient’s right to receive the bonus shall accrue, as
                follows:

            

    

    

    
      	 	
              If
                the milestone is achieved by the Bonus Target Date, and the milestone
                triggers a press release, then the bonus shall be earned on the date
                the
                press release is publicly
                disseminated.

            

    

    

    
      	 	
              If
                the milestone is achieved by the Bonus Target Date, and the milestone
                has
                not triggered the dissemination of a press release within ten (10)
                trading
                days following the date the milestone is achieved, then the bonus
                shall be
                earned on the date that is the tenth trading day following the date
                the
                milestone is achieved.

            

    

    

    
      	 	
              5.

            	
              Black-Out
                Periods.
                In
                the event the planned date of issuance of shares occurs on a black-out
                day
                in which no shares could be sold in the open market to cover the
                estimated
                income taxes, the Company will then postpone the issuance of shares
                until
                3 trading days following the date of the material non-public information
                is disclosed in a press release or Form 8-K. The Company shall not
                be
                liable for any decrease the trading price of its Stock during a black-out
                period that postpones the issuance of any
                shares.

            

    

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	 	
              6.

            	
              Form
                4 Reporting.
                Steve King, Paul Lytle and David King will report the receipt of
                the
                shares within two (2) days of the date that they are earned pursuant
                to
                paragraph 4 above.

            

    

    

    
      	 	
              7.

            	
              Plan
                Provisions to Prevail.
                In
                the event that there is any inconsistency between the provisions
                of this
                Stock Bonus Plan and of the 2005 Stock Incentive Plan, the provisions
                of
                the 2005 Stock Incentive Plan shall
                govern.

            

    

    

    
      	 	
              8.

            	
              Tax
                Withholding Obligation and Tax Advice Allowance.
                Because the receipt of shares of Stock is taxable to the recipient
                as
                ordinary income (i.e., compensation) on the date of receipt, the
                Company
                has an obligation to withhold all payroll taxes due with respect
                to the
                receipt of the shares of Stock and to remit such taxes at the end
                of the
                applicable pay period. In order to facilitate the collection of
                withholding taxes, each participant must have established a brokerage
                account with RBC Dain Rauscher (“RBC”). Further, by your participation in
                the Plan (and by your execution of the Performance Share Award Agreement
                (the “Award Agreement”), you agree and consent to the Company’s standing
                instruction to RBC to immediately sell, following receipt thereof,
                enough
                shares of Stock to cover the required statutory bonus withholdings
                which
                are at the following rates:

            

    

    

    
      	 	
              a.

            	
              Federal
                - 25%

            

    

    
      	 	
              b.

            	
              California
                - 9.3%

            

    

    
      	 	
              c.

            	
              Social
                Security (FICA) - 6.2%

            

    

    
      	 	
              d.

            	
              Medicare
                - 1.45%

            

    

    

    The
      above
      equate to a total withholding rate of 41.95%. Please refer to the Award
      Agreement for further discussion of the tax withholding process. 

    

    Each
      plan
      participant shall receive an allowance of up to $500 to determine federal and
      state tax withholding obligations and estimated tax payments to be made from
      the
      issuance of common stock. Participants shall be reimbursed upon the submission
      of an expense report and related invoice. 

    

    
      	 	
              9.

            	
              Fair
                Market Value of Income.
                Participants shall be taxed at the fair market value of the stock
                on the
                date the shares are physically received by the employee or consultant.
                Fair market value shall be determined to be the closing stock price
                of the
                Company’s common stock on the date of receipt by RBC.
                

            

    

    

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    Milestone
      Table

    

    

    

    

    [**]

    

    

    **
      Information omitted pursuant to a request of confidentiality filed separately
      with the Securities and Exchange Commission.

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