Document:

exv4w35

 

Exhibit 4.35

Warrant No. ________________

COMMON STOCK PURCHASE WARRANT

To Purchase __________ Shares of Common Stock of

SPECTRUM PHARMACEUTICALS, INC.

     THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received,
___(the “Holder”), is entitled to subscribe for and purchase from Spectrum
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), upon the terms and subject
to the limitations on exercise and the conditions hereinafter set forth, at any time on or after
the date hereof (the “Initial Exercise Date”), and on or prior to the close of business on
September 15, 2011 (the “Expiration Date”) but not thereafter, up to ___shares (the
“Warrant Shares”) of Common Stock, par value $6.62 per share, of the Company (the
“Common Stock”). The purchase price of one share of Common Stock under this Warrant shall
be equal to the Exercise Price, as defined in Section 2(b).

     Section 1. Definitions. Capitalized terms used and not otherwise
defined herein shall have the meanings set forth in that certain Securities Purchase
Agreement (the “Purchase Agreement”), dated September 14, 2005, among the Company
and the purchasers signatory thereto.

     Section 2. Exercise.

a) Exercise of Warrant. Exercise of the purchase rights represented by this
Warrant may be made at any time or times, in whole or in part, on or after the Initial Exercise Date until
5:00 P.M. (New York City time), on the Expiration Date by delivery to the Company of
a duly executed facsimile copy of the Notice of Exercise Form annexed hereto (or
such other office or agency of the Company as it may designate by notice in writing
to the registered Holder at the address of such Holder appearing on the books of the
Company); provided, however, within 5 Trading Days (a day on which
the Nasdaq Stock Market is open for ordinary trading) of the date said Notice of
Exercise is delivered to the Company, the Holder shall have surrendered this Warrant
to the Company and the Company shall have received payment of the aggregate Exercise
Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a
United States bank.

b) Exercise Price. The exercise price of the Common Stock under this
Warrant shall be $6.62, subject to adjustment under Section 3 hereof (the
“Exercise Price”).

     c) Net Exchange.
 If at the time of exercise of this Warrant there is no effective registration statement permitting the sale
of the Warrant Shares by the Company to the Holder, then this Warrant may also be
exchanged at such time and from time to time, in whole or in part, for the number of Warrant Shares equal to the quotient
obtained by dividing [(A-B) (X)] by (A), where:

	 	(A)	 	 = the closing bid price on the Trading Day immediately
preceding the date of such election as reported by Bloomberg, L.P.;
	 
	 	(B)	 	 = the Exercise Price of this Warrant, as adjusted; and
	 
	 	(X)	 	 = the number of Warrant Shares issuable upon exercise of this
Warrant in accordance with the terms of this Warrant by means of a cash
exercise rather than a net exchange.

     d) Exercise Limitations.

     i. Holder’s Restrictions. The Holder shall not have the right
to exercise any portion of this Warrant to the extent that after giving
effect to such issuance after exercise, the Holder (together with the
Holder’s affiliates), as set forth on the applicable Notice of Exercise,
would beneficially own in excess of 9.99% of the number of shares of

 

 

the Common Stock outstanding immediately after giving effect to such
issuance (such limitation being referred to herein as the “Beneficial
Ownership Cap”). For purposes of the Beneficial Ownership Cap, the
number of shares of Common Stock beneficially owned by the Holder and its
affiliates shall include the number of shares of Common Stock issuable upon
exercise of this Warrant with respect to which the determination of such
sentence is being made, but shall exclude the number of shares of Common
Stock which would be issuable upon (A) exercise of the remaining,
nonexercised portion of this Warrant beneficially owned by the Holder or any
of its affiliates and (B) exercise or conversion of the unexercised or
nonconverted portion of any other securities of the Company (including,
without limitation, any other Shares or Warrants) subject to a limitation on
conversion or exercise analogous to the Beneficial Ownership Cap
beneficially owned by the Holder or any of its affiliates. Except as set
forth in the preceding sentence, for purposes of this Section 2(c),
beneficial ownership shall be calculated in accordance with Section 13(d) of
the Exchange Act, it being acknowledged by Holder that the Company is not
representing to Holder that such calculation is in compliance with Section
13(d) of the Exchange Act and Holder is solely responsible for any schedules
required to be filed in accordance therewith. To the extent that the
Beneficial Ownership Cap applies, the determination of whether this Warrant
is exercisable (in relation to other securities owned by the Holder) and of
which a portion of this Warrant is exercisable shall be in the sole
discretion of such Holder, and the submission of a Notice of Exercise shall
be deemed to be such Holder’s representation to the Company that its Warrant
is exercisable (in relation to other securities owned by such Holder) and of
which portion of this Warrant is exercisable, in each case subject to such
aggregate percentage limitation, and the Company shall have no obligation to
verify or confirm the accuracy of such determination. For purposes of this
Section 2(d), in determining the number of outstanding shares of Common
Stock, the Holder may rely on the number of outstanding shares of Common
Stock as reflected in (x) the Company’s most recent Form 10-Q or Form 10-K,
as the case may be, (y) a more recent public announcement by the Company or
(z) any other notice by the Company or the Company’s Transfer Agent setting
forth the number of shares of Common Stock outstanding. Upon the written or
oral request of the Holder, the Company shall within two Trading Days
confirm orally and in writing to the Holder the number of shares of Common
Stock then outstanding. In any case, the number of outstanding shares of
Common Stock shall be determined after giving effect to the conversion or
exercise of securities of the Company, including this Warrant, by the Holder
or its affiliates since the date as of which such number of outstanding shares of Common Stock was reported.

     e) Mechanics of Exercise.

     i. Authorization of Warrant Shares. The Company covenants that
all Warrant Shares which may be issued upon the exercise of the purchase
rights represented by this Warrant will, upon exercise of the purchase
rights represented by this Warrant, be duly authorized, validly issued,
fully paid and nonassessable and free from all taxes, liens and charges in
respect of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).

     ii. Delivery of Certificates Upon Exercise. Certificates for shares purchased hereunder shall be transmitted by the transfer agent of the
Company to the Holder by crediting the account of the Holder’s prime broker
with the Depository Trust Company through its Deposit Withdrawal Agent
Commission (“DWAC”) system if the Company is a participant in such
system, and otherwise by physical delivery to the address specified by the
Holder in the Notice of Exercise within 3 Trading Days from the delivery to
the Company of the Notice of Exercise Form, surrender of this Warrant and
payment of the aggregate Exercise Price as set forth above (“Warrant
Share Delivery Date”). This Warrant shall be deemed to have been
exercised on the date the Exercise Price is received by the Company. The
Warrant Shares shall be deemed to have been issued, and Holder

 

 

or any other person so designated to be named therein shall be deemed
to have become a holder of record of such shares for all purposes, as of the
date the Warrant has been exercised by payment to the Company of the
Exercise Price and all taxes required to be paid by the Holder, if any,
pursuant to Section 2(e)(v) prior to the issuance of such shares, have been
paid.

     iii. Delivery of New Warrants Upon Exercise. If this Warrant
shall have been exercised in part, the Company shall, at the time of
delivery of the certificate or certificates representing Warrant Shares,
deliver to Holder a new Warrant evidencing the rights of Holder to purchase
the unpurchased Warrant Shares called for by this Warrant, which new Warrant
shall in all other respects be identical with this Warrant.

     iv. No Fractional Shares or Scrip. No fractional shares or
scrip representing fractional shares shall be issued upon the exercise of
this Warrant. As to any fraction of a share which Holder would otherwise be
entitled to purchase upon such exercise, the Company shall pay a cash
adjustment in respect of such final fraction in an amount equal to such
fraction multiplied by the Exercise Price.

     v. Charges, Taxes and Expenses. Issuance of certificates for
Warrant Shares shall be made without charge to the Holder for any issue or
transfer tax or other incidental expense in respect of the issuance of such
certificate, all of which taxes and expenses shall be paid by the Company,
and such certificates shall be issued in the name of the Holder or in such
name or names as may be directed by the Holder; provided,
however, that in the event certificates for Warrant Shares are to be
issued in a name other than the name of the Holder, this Warrant when
surrendered for exercise shall be accompanied by the Assignment Form
attached hereto duly executed by the Holder; and the Company may require, as
a condition thereto, the payment of a sum sufficient to reimburse it for any
transfer tax incidental thereto.

     vi. Closing of Books. The Company will not close its
stockholder books or records in any manner which prevents the timely
exercise of this Warrant, pursuant to the terms hereof.

     Section 3. Certain Adjustments.

     a) Stock Dividends and Splits. If the Company, at any time while this Warrant
is outstanding: (A) pays a stock dividend or otherwise makes a distribution or distributions
on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of
doubt, shall not include any shares of
Common Stock issued by the Company pursuant to this Warrant), (B) subdivides outstanding shares of Common Stock into a larger number of shares, (C) combines (including by way of
reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or
(D) issues by reclassification of shares of the Common Stock any shares of capital stock of
the Company, then in each case the Exercise Price shall be multiplied by a fraction of which
the numerator shall be the number of shares of Common Stock (excluding treasury shares, if
any) outstanding before such event and of which the denominator shall be the number of shares of Common Stock outstanding after such event and the number of shares issuable upon
exercise of this Warrant shall be proportionately adjusted. Any adjustment made pursuant to
this Section 3(a) shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution and shall
become effective immediately after the effective date in the case of a subdivision,
combination or re-classification.

     b) Fundamental Transactions. If any capital reorganization, reclassification
of the capital stock of the Company, consolidation or merger of the Company with another
corporation in which the Company is not the survivor, or sale, transfer or other disposition
of all or substantially all of the Company’s assets to another corporation shall be
effected, then the Company shall use its best efforts to ensure that lawful and adequate
provision shall be made whereby each Holder shall thereafter continue to

 

 

have the right to purchase and receive upon the basis and upon the terms and conditions
herein specified and in lieu of the Warrant Shares issuable upon exercise of this Warrant,
such shares of stock, securities or assets as would have been issuable or payable with
respect to or in exchange for a number of Warrant Shares equal to the number of Warrant Shares issuable upon exercise of the Warrant, had such reorganization, reclassification,
consolidation, merger, sale, transfer or other disposition not taken place, and in any such
case appropriate provision shall be made with respect to the rights and interests of each
Holder to the end that the provisions hereof (including, without limitation, provision for
adjustment of the Exercise Price) shall thereafter be applicable, as nearly equivalent as
may be practicable in relation to any shares of stock, securities or assets thereafter
deliverable upon the exercise thereof. The Company shall not effect any such consolidation,
merger, sale, transfer or other disposition unless prior to or simultaneously with the
consummation thereof the successor corporation (if other than the Company) resulting from
such consolidation or merger, or the corporation purchasing or otherwise acquiring such
assets or other appropriate corporation or entity shall assume by written instrument,
reasonably deemed by both the Board of Directors of the Company and Holders representing at
least a majority of the Warrant Shares issuable upon exercise of all Warrants issued in the
same offering as this Warrant to be satisfactory in form and
substance, such affirmative assessment not to be unreasonably
withheld, the obligation to
deliver to the holder of the Warrant, at the last address of such holder appearing on the
books of the Company, such shares of stock, securities or assets as, in accordance with the
foregoing provisions, such holder may be entitled to purchase, and the other obligations of
the Company under this Warrant. The provisions of this section shall similarly apply to
successive reorganizations, reclassifications, consolidations, mergers, sales, transfers or
other dispositions. If the Company, in spite of using its best efforts, is unable to cause
this Warrant to continue in full force and effect until the Expiration Date in connection
with any capital reorganization, reclassification of the capital stock of the Company,
consolidation or merger of the Company with another corporation in which the Company is not
the survivor, or sale, transfer or other disposition of all or substantially all of the
Company’s assets to another corporation, then the Company shall pay the Holder an amount
calculated in accordance with the Black-Scholes Option Pricing formula set forth in the
appendix hereto.

     c) Calculations. All calculations under this Section 3 shall be made to the
nearest cent or the nearest 1/100th of a share, as the case may be. The number of shares of
Common Stock outstanding at any given time shall not include shares of Common Stock owned or
held by or for the account of the Company, and the description of any such shares of Common
Stock shall be considered on issue or sale of Common Stock. For purposes of this Section 3,
the number of shares of Common Stock deemed to be issued and outstanding as of a given date
shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any)
issued and outstanding.

     d) Notice to Holders.

     i. Adjustment to Exercise Price. Whenever the Exercise Price is
adjusted pursuant to this Section 3, the Company shall promptly mail to each
Holder a notice setting forth the Exercise Price after such adjustment and
setting forth a brief statement of the facts requiring such adjustment.

     Notice to Allow Exercise by Holder. If (A) the Company shall
declare a dividend (or any other distribution) on the Common Stock; (B) the
Company shall declare a special nonrecurring cash dividend on or a
redemption of the Common Stock; (C) the Company shall authorize the granting
to all holders of the Common Stock rights or warrants to subscribe for or
purchase any shares of capital stock of any class or of any rights; (D) the
approval of any stockholders of the Company shall be required in connection
with any reclassification of the Common Stock, any consolidation or merger
to which the Company is a party, any sale or transfer of all or
substantially all of the assets of the Company, of any compulsory share
exchange whereby the Common Stock is converted into other securities, cash
or property; (E) the Company shall authorize the voluntary or involuntary
dissolution, liquidation or winding up of the affairs of the Company; then,
in each case, the Company shall cause to be mailed to the Holder at its last
addresses as it shall appear upon the Warrant Register of the Company, at
least twenty (20) calendar days prior to the applicable record or effective
date hereinafter

 

 

specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the
holders of the Common Stock of record to be entitled to such dividend,
distributions, redemption, rights or warrants are to be determined or (y)
the date on which such reclassification, consolidation, merger, sale,
transfer or share exchange is expected to become effective or close, and the
date as of which it is expected that holders of the Common Stock of record
shall be entitled to exchange their shares of the Common Stock for
securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer or share exchange; provided,
that the failure to mail such notice or any defect therein or in the mailing
thereof shall not affect the validity of the corporate action required to be
specified in such notice. The Holder is entitled to exercise this Warrant
during the 20-day period commencing the date of such notice to the effective
date of the event triggering such notice.

     Section 4. Transfer of Warrant.

a) Right of First Refusal. Should the Holder propose to sell or transfer
this Warrant to a non-affiliate of Holder in response to a bona fide offer to
purchase, the Holder shall promptly deliver a written notice to the Company. The
notice shall describe in reasonable detail the proposed sale or transfer, including,
without limitation, the number of Warrant Shares to be sold or transferred, the
consideration to be paid, the name and address of each prospective purchaser or
transferee, and any other material terms and conditions upon which such sale or
transfer is to be made, along with copies of all material proposed agreements
relating to such sale, including purchase agreements and other agreements or
documents requested by the Company. The Company shall have the option, exercisable
upon written notice to the Holder within two (2) business days after delivery of
the notice, to purchase some or all of the Warrant Shares on the same terms as the
proposed sale or transfer. Upon such purchase by the Company, this Warrant shall
promptly be cancelled and the Company shall issue to the Holder a new Warrant
evidencing the portion of this Warrant not purchased by the Company, if any. If the
Company does not exercise its option to purchase this warrant, the Holder may sell
or transfer this Warrant to the purchaser or transferee identified in the notice, on
the same terms as identified in the notice or otherwise.

b) Transferability. Subject to compliance with any applicable securities
laws and the conditions set forth in Section 4(a) hereof, this Warrant and all rights hereunder are
transferable, in whole or in part, upon surrender of this Warrant at the principal
office of the Company, together with a written assignment of this Warrant
substantially in the form attached hereto duly executed by the Holder or its agent
or attorney and funds sufficient to pay any transfer taxes payable upon the making
of such transfer. Upon such surrender and, if required, such payment, the Company
shall execute and deliver a new Warrant or Warrants in the name of the assignee or
assignees and in the denomination or denominations specified in such instrument of
assignment, and shall issue to the assignor a new Warrant evidencing the portion of
this Warrant not so assigned, and this Warrant shall promptly be cancelled. A
Warrant, if properly assigned, may be exercised by a new holder for the purchase of
Warrant Shares without having a new Warrant issued.

c) New Warrants. This Warrant may be divided or combined with other Warrants
upon presentation hereof at the aforesaid office of the Company, together with a
written notice specifying the names and denominations in which new Warrants are to
be issued, signed by the Holder or its agent or attorney. Subject to compliance
with Sections 4(a) and (b), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or
Warrants in exchange for the Warrant or Warrants to be divided or combined in
accordance with such notice.

 

 

d) Warrant Register. The Company shall register this Warrant, upon records
to be maintained by the Company for that purpose (the “Warrant Register”),
in the name of the record Holder hereof from time to time. The Company may deem and
treat the registered Holder of this Warrant as the absolute owner hereof for the
purpose of any exercise hereof or any distribution to the Holder, and for all other
purposes, absent actual notice to the contrary.

Section 5. Miscellaneous.

a) Title to Warrant. Prior to the Expiration Date and subject to compliance
with applicable laws and Section 4 of this Warrant, this Warrant and all rights
hereunder are transferable, in whole or in part, at the office or agency of the
Company by the Holder in person or by duly authorized attorney, upon surrender of
this Warrant together with the Assignment Form annexed hereto properly endorsed.
The transferee shall sign an investment letter in form and substance reasonably
satisfactory to the Company.

b) No Rights as Shareholder Until Exercise. This Warrant does not entitle
the Holder to any voting rights or other rights as a shareholder of the Company
prior to the exercise hereof. Upon the surrender of this Warrant and the payment of
the aggregate Exercise Price (or by means of a cashless exercise), the Warrant Shares so purchased shall be and be deemed to be issued to such Holder as the record
owner of such shares as of the close of business on the later of the date of such
surrender or payment.

c) Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants
that upon receipt by the Company of evidence reasonably satisfactory to it of the
loss, theft, destruction or mutilation of this Warrant or any stock certificate
relating to the Warrant Shares, and in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to it (which, in the case of the
Warrant, shall not include the posting of any bond), and upon surrender and
cancellation of such Warrant or stock certificate, if mutilated, the Company will
make and deliver a new Warrant or stock certificate of like tenor and dated as of
such cancellation, in lieu of such Warrant or stock certificate.

d) Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein shall
be a Saturday, Sunday or a legal holiday, then such action may be taken or such
right may be exercised on the next succeeding day not a Saturday, Sunday or legal
holiday.

e) Authorized Shares.

The Company covenants that during the period the Warrant is outstanding, it
will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any
purchase rights under this Warrant. The Company further covenants that its issuance
of this Warrant shall constitute full authority to its officers who are charged with
the duty of executing stock certificates to execute and issue the necessary
certificates for the Warrant Shares upon the exercise of the purchase rights under
this Warrant. The Company will take all such reasonable action as may be necessary
to assure that such Warrant Shares may be issued as provided herein without
violation of any applicable law or regulation, or of any requirements of the trading
markets upon which the Common Stock may be listed.

Except and to the extent as waived or consented to by the Holder, the Company
shall not by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all such
terms and in the taking of all such actions as may be necessary or appropriate to
protect the rights of Holder as set forth in this Warrant against impairment.
Without limiting the generality of the

 

 

foregoing, the Company will (a) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to
such increase in par value, (b) take all such action as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid and
nonassessable Warrant Shares upon the exercise of this Warrant, and (c) use
commercially reasonable efforts to obtain all such authorizations, exemptions or
consents from any public regulatory body having jurisdiction thereof as may be
necessary to enable the Company to perform its obligations under this Warrant.

f) Jurisdiction. All questions concerning the construction, validity,
enforcement and interpretation of this Warrant shall be determined in accordance
with the provisions of the Purchase Agreement.

g) Restrictions. The Holder acknowledges that the Warrant Shares acquired
upon the exercise of this Warrant, if not registered, will have restrictions upon
resale imposed by state and federal securities laws.

h) Nonwaiver and Expenses. No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of such
right or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding
the fact that all rights hereunder terminate on the Expiration Date. If the Company
willfully and knowingly fails to comply with any provision of this Warrant, which
results in any material damages to the Holder, the Company shall pay to Holder such
amounts as shall be sufficient to cover any costs and expenses including, but not
limited to, reasonable attorneys’ fees, including those of appellate proceedings,
incurred by Holder in collecting any amounts due pursuant hereto or in otherwise
enforcing any of its rights, powers or remedies hereunder.

i) Notices. Any notice, request or other document required or permitted to
be given or delivered to the Holder by the Company shall be delivered in accordance
with the notice provisions of the Purchase Agreement.

j) Limitation of Liability. No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant or purchase Warrant Shares,
and no enumeration herein of the rights or privileges of Holder, shall give rise to
any liability of Holder for the purchase price of any Common Stock or as a
stockholder of the Company, whether such liability is asserted by the Company or by
creditors of the Company.

k) Remedies. Holder, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, will be entitled to specific
performance of its rights under this Warrant. The Company agrees that monetary
damages would not be adequate compensation for any loss incurred by reason of a
breach by it of the provisions of this Warrant and hereby agrees to waive the
defense in any action for specific performance that a remedy at law would be
adequate.

l) Successors and Assigns. Subject to applicable securities laws, this
Warrant and the rights and obligations evidenced hereby shall inure to the benefit
of and be binding upon the successors of the Company and the successors and
permitted assigns of Holder. The provisions of this Warrant are intended to be for
the benefit of all Holders from time to time of this Warrant and shall be
enforceable by any such Holder or holder of Warrant Shares but nothing in this
Warrant shall be construed to give any person or Company or other entity, other than
the Company and the Holder and their respective successor and assigns, any legal or
equitable right, remedy or cause under this Warrant.

m) Amendment. This Warrant may be modified or amended or the provisions
hereof waived with the written consent of the Company and the Holder.

 

 

n) Severability. Wherever possible, each provision of this Warrant shall be
interpreted in such manner as to be effective and valid under applicable law, but if
any provision of this Warrant shall be prohibited by or invalid under applicable
law, such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provisions or the remaining
provisions of this Warrant.

o) Headings. The headings used in this Warrant are for the convenience of
reference only and shall not, for any purpose, be deemed a part of this Warrant.

********************

 

 

APPENDIX

Black Scholes Option Pricing formula to be used when calculating the amount per Warrant Share
shall be:

C = S e-l(T-t) N(d1) — K e -r(T-t)
N(d2) , where

C = warrant value

S = price of Company stock as determined by reference to the average of the closing prices on the
securities exchange or Nasdaq National Market over the 20-day period ending three trading days
prior to the closing of the capital reorganization, reclassification of the capital stock of the
Company, consolidation or merger of the Company with another corporation in which the Company is
not the survivor, or sale, transfer or other disposition of all or substantially all of the
Company’s assets to another corporation described in Section 3(b) if the Company’s stock is then
traded on such exchange or system, or the average of the closing bid or sale prices (whichever is
applicable) in the over-the-counter market over the 20-day period ending three trading days prior
to the closing of the transaction if the Company’s stock is then actively traded in the
over-the-counter market, or the then most recently completed financing if the Company’s stock is
not then traded on a securities exchange or system or in the over-the-counter market.

T = 9/14/2011

t = date of public announcement of the capital reorganization, reclassification of the capital
stock of the Company, consolidation or merger of the Company with another corporation in which the
Company is not the survivor, or sale, transfer or other disposition of all or substantially all of
the Company’s assets to another corporation described in Section 3(b).

T-t = time until warrant expiration = ___years

N = standard normal cumulative distribution function.

σ = volatility = annualized average of the daily price changes on the securities exchange or
Nasdaq National Market over the 20-day period ending three trading days prior to the public
announcement of the capital reorganization, reclassification of the capital stock of the Company,
consolidation or merger of the Company with another corporation in which the Company is not the
survivor, or sale, transfer or other disposition of all or substantially all of the Company’s
assets to another corporation described in Section 3(b) if the Company’s stock is then traded on
such exchange or system, or the average of the daily change in the closing bid or sale prices
(whichever is applicable) in the over-the-counter market over the 20-day period ending three
trading days prior to the public announcement of the transaction if the Company’s stock is then
actively traded in the over-the-counter market, or 0.6 if the Company’s stock is not then traded on
a securities exchange or system or in the over-the-counter market.

d1 = (ln(S/K) + (r-l+ σ2/2)(T-t)) ÷ (σ Ö(T-t))

ln = natural logarithm

l = dividend rate for the most recent 12-month period at the time of closing of the capital
reorganization, reclassification of the capital stock of the Company, consolidation or merger of
the Company with another corporation in which the Company is not the survivor, or sale, transfer or
other disposition of all or substantially all of the Company’s assets to another corporation.

K = $6.62

r = the 90-day Treasury Bill rate from the most recent auction reported on the website:
www.publicdebt.treas.gov

d2 = d1- σ Ö(T-t)

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officer thereunto duly authorized.

Dated:
September 15, 2005

	 	 	 	 	 	 	 
	 	 	 	 	Spectrum Pharmaceuticals, Inc.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 

	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 

	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

	 
	 	 	 	 	 	 
	Attest:	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	Name:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	Title:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 

 

 

NOTICE OF EXERCISE

TO: SPECTRUM PHARMACEUTICALS, INC.

     (1) The undersigned hereby elects:

o to purchase ___Warrant Shares, Warrant Number
___, of the Company pursuant to the terms of the attached
Warrant and tenders herewith payment of the exercise price in full in lawful
money of the United States, together with all applicable transfer taxes, if
any.

o to exchange this Warrant for the number of Warrant Shares determined
pursuant to the net exchange procedure set forth in subsection 2(c).

     (2) Please issue said Warrant Shares in the name of the undersigned or in such other name as
is specified below:

 

The Warrant Shares shall be delivered to the following address:

 

 

 

OR

	 	 	 	 	 	 	 
	 	 	DWAC the shares to:	 	 
	 
	 	 	 	 	 	 
	 

	 	DTC #	 	 	 	 
	 

	 	 	 	 
	 	 
	 

	 	Account #	 	 	 	 
	 

	 	 	 	 
	 	 
	 

	 	Reference #	 	 	 	 
	 

	 	 	 	 
	 	 

SIGNATURE OF HOLDER

	 	 	 
	 

	 	 
	Name of Investing Entity
	 	 
	 
	 	 
	 

	 	 

	Signature of Authorized Signatory of Investing Entity

	 	Date
	 
	 	 
	 

	 	 

	Name of Authorized Signatory

	 	Title of Authorized Signature

 

 

ASSIGNMENT FORM

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

	 	 	 	 	 
	Warrant Number:

	 	 	 	 
	 

	 	 
	 	 
	Warrant Shares:
	 	 	 	 
	 

	 	 
	 	 

     FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
assigned to:

	 	 	 
	 

	 	whose address is
	 

	 	 
	 
	 	 
	 

	 	 . 
	 

	 	 

Dated:                ,      

	 	 	 	 	 
	 

	 	Holder’s Signature:	 	 
	 

	 	 	 	 

	 

	 	Holder’s Address:	 	 
	 

	 	 	 	 

	 
	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 
	Signature Guaranteed:

	 	 	 	 
	 

	 	 
	 	 

NOTE: The signature to this Assignment Form must correspond with the name as it appears on the
face of the Warrant, without alteration or enlargement or any change whatsoever, and must be
guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign the foregoing
Warrant.exv10w44

 

Exhibit 10.44

RESTRICTED STOCK AWARD GRANT NOTICE

AND

RESTRICTED STOCK AWARD AGREEMENT

     Spectrum Pharmaceuticals, Inc., a Delaware corporation (the “Company”), pursuant to its 2003
Amended and Restated Incentive Award Plan (the “Plan”), hereby grants to the holder listed below
(“Holder”) the number of shares of the Company’s Stock set forth below (the “Shares”). This
Restricted Stock award is subject to all of the terms and conditions as set forth herein and in the
Restricted Stock Award Agreement attached hereto as Exhibit A (the “Restricted Stock
Agreement”) and the Plan, each of which are incorporated herein by reference. Except as otherwise
provided below, the terms defined in the Plan shall have the same defined meanings in this Grant
Notice and the Restricted Stock Agreement.

	 	 	 	 	 	 	 
	Holder:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Grant Date:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Total Number of Shares of	 	 	 	 
	Restricted Stock:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Vesting Schedule:	 	Subject to the terms and conditions of the
Plan, this Grant Notice and the Restricted
Stock Agreement, the Company’s Forfeiture
Restriction (as defined in the Restricted
Stock Agreement) shall lapse as to:
	 	 	(i)                                              ,
	 	 	(ii)                                             ,
	 	 	(iii)                                            , and
	 	 	(iv)                                            .

          In no event, however, shall the Forfeiture
Restriction (as defined in the Restricted
Stock Agreement) lapse as to any additional
Shares after the termination of the Holder’s
Continuous Service. As used herein, the term
“Continuous Service” shall have the meaning
set forth in Section 3.5 of the Restricted
Stock Agreement.

     By his or her signature below, Holder agrees to be bound by the terms and conditions of the
Plan, the Restricted Stock Agreement and this Grant Notice. Holder has reviewed the Restricted
Stock Agreement, the Plan and this Grant Notice in their entirety, has had an opportunity to obtain
the advice of counsel prior to executing this Grant Notice and fully understands all provisions of
this Grant Notice, the Restricted Stock Agreement and the Plan. Holder hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the Committee upon any questions
arising under the Plan, this Grant Notice or the Restricted Stock Agreement. If Holder is married,
his or her spouse has signed the Consent of Spouse attached to this Grant Notice as Exhibit
B. Holder acknowledges that Holder has been advised to consult Holder’s personal tax advisor as
to the specific tax consequences of this Restricted Stock Award and whether an election of Section
83(b) of the Internal Revenue Code, as amended, with respect to this Restricted Stock Award will be
in Holder’s best interests in light of Holder’s personal tax situation.

 

 

	 	 	 	 	 	 	 	 	 	 	 
	SPECTRUM PHARMACEUTICALS, INC.	 	 	 	HOLDER:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Print Name:

	 	 	 	 	 	Print Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Address:

	 	157 Technology Drive
	 	 	 	Address:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Irvine, California 92618	 	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

	 	 	 	 	 
	Attachments:	 	Restricted Stock Award Agreement (Exhibit A)
	 	 	Consent of Spouse (Exhibit B)
	 	 	Stock Assignment (Exhibit C)
	 	 	Joint Escrow Instructions (Exhibit D)
	 	 	Form of Internal Revenue Code Section 83(b) Election and Instructions (Exhibit E)
	 

	 	 	 	- Election under Internal Revenue
Code Section 83(b) (Attachment 1 to Exhibit E)
	 

	 	 	 	- Sample Cover Letter to Internal
Revenue Service (Attachment 2 to Exhibit E)

-2-

 

EXHIBIT A

TO RESTRICTED STOCK AWARD GRANT NOTICE

RESTRICTED STOCK AWARD AGREEMENT

     Pursuant to the Restricted Stock Award Grant Notice (“Grant Notice”) to which this Restricted
Stock Award Agreement (this “Agreement”) is attached, Spectrum Pharmaceuticals, Inc., (the
"Company”) has granted to Holder the number of shares of Restricted Stock under the Company’s 2003
Amended and Restated Incentive Award Plan (the “Plan”) indicated in the Grant Notice.

ARTICLE I

GENERAL

     1.1 Defined Terms. Capitalized terms not specifically defined herein shall have the
meanings specified in the Grant Notice or, if not defined therein, the Plan.

     1.2 Incorporation of Terms of Plan. The Shares are subject to the terms and
conditions of the Plan which are incorporated herein by reference.

ARTICLE II

GRANT OF RESTRICTED STOCK

     2.1 Grant of Restricted Stock. In consideration of Holder’s past and/or continued
employment with or service to the Company or its Subsidiaries and for other good and valuable
consideration, effective as of the Grant Date set forth in the Grant Notice (the “Grant Date”), the
Company hereby agrees to issue to Holder the number of shares of Stock set forth in the Grant
Notice (the “Shares”), upon the terms and conditions set forth in the Plan and this Agreement.

     2.2 Issuance of Shares. The issuance of the Shares under this Agreement shall occur
at the principal office of the Company simultaneously with the execution of this Agreement by the
parties or on such other date as the Company and Holder shall agree (the “Issuance Date”). Subject
to the provisions of Article IV, the Company shall issue the Shares (which shall be issued in
Holder’s name) on the Issuance Date.

     2.3 Conditions to Issuance of Stock. The Shares, or any portion thereof, may be
either previously authorized but unissued shares or issued shares which have then been reacquired
by the Company. Such Shares shall be fully paid and nonassessable, and may be issued in either
certificated or book entry form. The Company shall not be required to issue or deliver any Shares
prior to fulfillment of all of the following conditions:

          (a) The admission of such Shares to listing on all stock exchanges on which such Stock is then
listed;

A-1

 

          (b) The completion of any registration or other qualification of such shares under any state
or federal law or under rulings or regulations of the Securities and Exchange Commission or of any
other governmental regulatory body, which the Committee shall, in its absolute discretion, deem
necessary or advisable;

          (c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Committee shall, in its absolute discretion, determine to be necessary or
advisable;

          (d) The lapse of such reasonable period of time following the Issuance Date as the Committee
may from time to time establish for reasons of administrative convenience; and

          (e) The receipt by the Company of full payment for such shares, including payment of all
amounts which, under federal, state or local tax law, the Company (or other employer corporation)
is required to withhold upon issuance of such Shares.

     2.4 Rights as Stockholder. Except as otherwise provided herein, upon delivery of the
Shares to the escrow agent pursuant to Article IV, Holder shall have all the rights of a
stockholder with respect to said Shares, subject to the restrictions herein, including the right to
vote the Shares and to receive all dividends or other distributions paid or made with respect to
the Shares; provided, however, that any and all cash dividends paid on such Shares and any and all
shares of Stock, capital stock or other securities or property received by or distributed to Holder
with respect to the Shares as a result of any stock dividend, stock split, reverse stock split,
recapitalization, combination, reclassification, or similar change in the capital structure of the
Company shall also be subject to the Forfeiture Restriction (as defined in Section 3.1) and the
restrictions on transfer in Section 3.4 until such restrictions on the underlying Shares lapse or
are removed pursuant to this Agreement (or, if such Shares are no longer outstanding, until such
time as such Shares would have been released from the Forfeiture Restriction pursuant to this
Agreement). In addition, in the event of any merger, consolidation, share exchange or
reorganization affecting the Shares, including, without limitation, a Change of Control, then any
new, substituted or additional securities or other property (including money paid other than as a
regular cash dividend) that is by reason of any such transaction received with respect to, in
exchange for or in substitution of the Shares shall also be subject to the Forfeiture Restriction
(as defined in Section 3.1) and the restrictions on transfer in Section 3.4 until such restrictions
on the underlying Shares lapse or are removed pursuant to this Agreement (or, if such Shares are no
longer outstanding, until such time as such Shares would have been released from the Forfeiture
Restriction pursuant to this Agreement). Any such assets or other securities received by or
distributed to Holder with respect to, in exchange for or in substitution of any Unreleased Shares
(as defined in Section 3.3) shall be immediately delivered to the Company to be held in escrow
pursuant to Section 4.1.

ARTICLE III

RESTRICTIONS ON SHARES

     3.1 Forfeiture Restriction. Subject to the provisions of Section 3.2, if Holder
ceases to remain in Continuous Service (as defined in Section 3.5) for any or no reason, all of the

A-2

 

Unreleased Shares (as defined in Section 3.3) shall thereupon be forfeited immediately and
without any further action by the Company (the “Forfeiture Restriction”). Upon the occurrence of
such a forfeiture, the Company shall become the legal and beneficial owner of the Shares being
forfeited and all rights and interests therein or relating thereto, and the Company shall have the
right to retain and transfer to its own name the number of Shares being forfeited by Holder. In
the event any of the Unreleased Shares are forfeited under this Section 3.1, any cash, cash
equivalents, assets or securities received by or distributed to Participant with respect to, in
exchange for or in substitution of such Shares and held by the escrow agent pursuant to Section 4.1
and the Joint Escrow Instructions shall be promptly transferred by the escrow agent to the Company.

     3.2 Release of Shares from Forfeiture Restriction. The Shares shall be released from
the Forfeiture Restriction as indicated in the Grant Notice. Any of the Shares released from the
Forfeiture Restriction shall thereupon be released from the restrictions on transfer under Section
3.4. In the event any of the Shares are released from the Forfeiture Restriction, any dividends or
other distributions paid on such Shares and held by the escrow agent pursuant to Section 4.1 and
the Joint Escrow Instructions shall be promptly paid by the escrow agent to Holder.

     3.3 Unreleased Shares. Any of the Shares which, from time to time, have not yet been
released from the Forfeiture Restriction are referred to herein as "Unreleased Shares.”

     3.4 Restrictions on Transfer. Unless otherwise permitted by the Committee pursuant to
the Plan, no Unreleased Shares or any dividends or other distributions thereon or any interest or
right therein or part thereof, shall be liable for the debts, contracts or engagements of Holder or
his or her successors in interest or shall be subject to sale or other disposition by transfer,
alienation, anticipation, pledge, encumbrance, assignment or any other means whether such sale or
other disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment,
garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted
sale or other disposition thereof shall be null and void and of no effect.

     3.5 Definition of Continuous Service. For purposes of this Agreement, the term
"Continuous Service” means (i) employment by either the Company or any Subsidiary, or any survivor
or successor entity, which is uninterrupted except for vacations, illness (except for Disability),
or leaves of absence which are approved in writing by the Company or such other employer
corporation, (ii) service as a member of the Board of Directors of the Company until Holder dies,
resigns, is removed from office, or Holder’s term of office expires and he or she is not reelected,
or (iii) so long as Holder is engaged as a consultant or service provider to the Company or other
corporation referred to in clause (i) above.

ARTICLE IV

ESCROW OF SHARES

     4.1 Escrow of Shares. To insure the availability for delivery of Holder’s Unreleased
Shares in the event of forfeiture of such Shares by Holder pursuant to Section 3.1, Holder hereby
appoints the Secretary of the Company, or any other person designated by the Committee as escrow
agent, as his or her attorney-in-fact to assign and transfer unto the Company, such

A-3

 

Unreleased Shares, if any, forfeited by Holder pursuant to Section 3.1 and any dividends or
other distributions thereon, and shall, upon execution of this Agreement, deliver and deposit with
the Secretary of the Company, or such other person designated by the Committee, any share
certificates representing the Unreleased Shares, together with the stock assignment duly endorsed
in blank, attached as Exhibit C to the Grant Notice. The Unreleased Shares and stock
assignment shall be held by the Secretary of the Company, or such other person designated by the
Committee, in escrow, pursuant to the Joint Escrow Instructions of the Company and Holder attached
as Exhibit D to the Grant Notice, until the Unreleased Shares are forfeited by Holder as
provided in Section 3.1, until such Unreleased Shares are released from the Forfeiture Restriction,
or until such time as this Agreement no longer is in effect. Upon release of the Unreleased Shares
from the Forfeiture Restriction, the escrow agent shall deliver to Holder the certificate or
certificates representing such Shares in the escrow agent’s possession belonging to Holder in
accordance with the terms of the Joint Escrow Instructions attached as Exhibit D to the
Grant Notice, and the escrow agent shall be discharged of all further obligations hereunder;
provided, however, that the escrow agent shall nevertheless retain such certificate or certificates
as escrow agent if so required pursuant to other restrictions imposed pursuant to this Agreement.
If the Shares are held in book entry form, then such entry will reflect that the Shares are subject
to the restrictions of this Agreement. If any dividends or other distributions are paid on the
Unreleased Shares held by the escrow agent pursuant to this Section 4.1 and the Joint Escrow
Instructions, such dividends or other distributions shall also be subject to the restrictions set
forth in this Agreement and held in escrow pending release of the Unreleased Shares with respect to
which such dividends or other distributions were paid from the Forfeiture Restriction.

     4.2 Transfer of Forfeited Shares. Holder hereby authorizes and directs the Secretary
of the Company, or such other person designated by the Committee, to transfer the Unreleased Shares
which have been forfeited by Holder to the Company.

     4.3 No Liability for Actions in Connection with Escrow. The Company, or its designee,
shall not be liable for any act it may do or omit to do with respect to holding the Shares in
escrow while acting in good faith and in the exercise of its judgment.

ARTICLE V

OTHER PROVISIONS

     5.1 Adjustment for Stock Split. In the event of any stock dividend, stock split,
reverse stock split, recapitalization, combination, reclassification, or similar change in the
capital structure of the Company, the Committee shall make appropriate and equitable adjustments in
the Unreleased Shares subject to the Forfeiture Restriction and the number of Shares, consistent
with any adjustment under Section 11.1 of the Plan. The provisions of this Agreement shall apply,
to the full extent set forth herein with respect to the Shares, to any and all shares of capital
stock or other securities, property or cash which may be issued in respect of, in exchange for, or
in substitution of the Shares, and shall be appropriately adjusted for any stock dividends, splits,
reverse splits, combinations, recapitalizations and the like occurring after the date hereof.

A-4

 

     5.2 Taxes. Holder has reviewed with Holder’s own tax advisors the federal, state,
local and foreign tax consequences of this investment and the transactions contemplated by the
Grant Notice and this Agreement. Holder is relying solely on such advisors and not on any
statements or representations of the Company or any of its agents. Holder understands that Holder
(and not the Company) shall be responsible for Holder’s own tax liability that may arise as a
result of this investment or the transactions contemplated by this Agreement. Holder understands
that Holder will recognize ordinary income for federal income tax purposes under Section 83 of the
Code as the restrictions applicable to the Unreleased Shares lapse. In this context, “restriction”
includes the Forfeiture Restriction. Holder understands that Holder may elect to be taxed for
federal income tax purposes at the time the Shares are issued rather than as and when the
Forfeiture Restriction lapses by filing an election under Section 83(b) of the Code with the
Internal Revenue Service no later than thirty days following the date of purchase. A form of
election under Section 83(b) of the Code is attached to the Grant Notice as Exhibit E.

     HOLDER ACKNOWLEDGES THAT IT IS HOLDER’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO TIMELY
FILE THE ELECTION UNDER SECTION 83(b), EVEN IF HOLDER REQUESTS THE COMPANY OR ITS REPRESENTATIVES
TO MAKE THIS FILING ON HOLDER’S BEHALF.

     5.3 Limitations Applicable to Section 16 Persons. Notwithstanding any other provision
of the Plan or this Agreement, if Holder is subject to Section 16 of the Exchange Act, the Plan,
the Shares and this Agreement shall be subject to any additional limitations set forth in any
applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule
16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To
the extent permitted by applicable law, this Agreement shall be deemed amended to the extent
necessary to conform to such applicable exemptive rule.

     5.4 Administration. The Committee shall have the power to interpret the Plan and this
Agreement and to adopt such rules for the administration, interpretation and application of the
Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions
taken and all interpretations and determinations made by the Committee in good faith shall be
binding, conclusive and final upon Holder, the Company and all other interested persons. No member
of the Committee shall be personally liable for any action, determination or interpretation made in
good faith with respect to the Plan, this Agreement or the Shares. In its absolute discretion, the
Board may at any time and from time to time exercise any and all rights and duties of the Committee
under the Plan and this Agreement.

     5.5 Restrictive Legends and Stop-Transfer Orders.

          (a) Any share certificate(s) evidencing the Shares issued hereunder shall be endorsed with the
following legend and any other legend(s) that may be required by any applicable federal or state
securities laws:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO FORFEITURE IN FAVOR OF THE
COMPANY AND MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF A RESTRICTED
STOCK AWARD AGREEMENT BETWEEN THE COMPANY

A-5

 

AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

          (b) Holder agrees that, in order to ensure compliance with the restrictions referred to
herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if
any, and that, if the Company transfers its own securities, it may make appropriate notations to
the same effect in its own records.

          (c) The Company shall not be required: (i) to transfer on its books any Shares that have been
sold or otherwise transferred in violation of any of the provisions of this Agreement, or (ii) to
treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or
other transferee to whom such shares shall have been so transferred.

     5.6 Tax Withholding.

          (a) The Company shall be entitled to require payment of any sums required by federal, state or
local tax law to be withheld with respect to the transfer of the Shares or the lapse of the
Forfeiture Restriction with respect to the Shares, or any other taxable event related thereto. The
Company may permit Holder to make such payment in one or more of the forms specified below:

          (i) by cash or check made payable to the Company;

          (ii) by the deduction of such amount from other compensation payable to Holder;

          (iii) by tendering Shares which are not subject to the Forfeiture Restriction and which
have a then current Fair Market Value not greater than the amount necessary to satisfy the
Company’s withholding obligation based on the minimum statutory withholding rates for
federal, state and local income tax and payroll tax purposes; or

          (iv) in any combination of the foregoing.

          (b) In the event Holder fails to provide timely payment of all sums required by the Company
pursuant to Section 5.6(a), the Company shall have the right and option, but not obligation, to
treat such failure as an election by Holder to provide all or any portion of such required payment
by means of tendering Shares in accordance with Section 5.6(a)(iii).

     5.7 Notices. Any notice to be given under the terms of this Agreement to the Company
shall be addressed to the Company in care of the Secretary of the Company, and any notice to be
given to Holder shall be addressed to Holder at the address given beneath Holder’s signature on the
Grant Notice. By a notice given pursuant to this Section 5.7, either party may hereafter designate
a different address for notices to be given to that party. Any notice shall be deemed duly given
when sent via email or when sent by certified mail (return receipt requested) and deposited (with
postage prepaid) in a post office or branch post office regularly maintained by the United States
Postal Service.

A-6

 

     5.8 Titles. Titles are provided herein for convenience only and are not to serve as a
basis for interpretation or construction of this Agreement.

     5.9 Governing Law; Severability. This Agreement shall be administered, interpreted
and enforced under the laws of the State of Delaware without regard to conflicts of laws thereof.
Should any provision of this Agreement be determined by a court of law to be illegal or
unenforceable, the other provisions shall nevertheless remain effective and shall remain
enforceable.

     5.10 Conformity to Securities Laws. Holder acknowledges that the Plan is intended to
conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and
any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder,
and state securities laws and regulations. Notwithstanding anything herein to the contrary, the
Plan shall be administered, and the Shares are to be issued, only in such a manner as to conform to
such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this
Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and
regulations.

     5.11 Amendments. This Agreement may not be modified, amended or terminated except by
an instrument in writing, signed by Holder and by a duly authorized representative of the Company.

     5.12 No Employment Rights. If Holder is an employee, nothing in the Plan or this
Agreement shall confer upon Holder any right to continue in the employ of the Company or any
Subsidiary or shall interfere with or restrict in any way the rights of the Company and its
Subsidiaries, which are expressly reserved, to discharge Holder at any time for any reason
whatsoever, with or without cause, except to the extent expressly provided otherwise in a written
agreement between the Company and Holder.

     5.13 Successors and Assigns. The Company may assign any of its rights under this
Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the
successors and assigns of the Company. Subject to the restrictions on transfer herein set forth,
this Agreement shall be binding upon Holder and his or her heirs, executors, administrators,
successors and assigns.

A-7

 

EXHIBIT B

TO RESTRICTED STOCK AWARD GRANT NOTICE

CONSENT OF SPOUSE

     I,                                         , spouse of                                         , have read and approve the foregoing
Agreement. In consideration of issuing to my spouse the shares of the common stock of Spectrum
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), set forth in the Restricted Stock
Award Grant Notice and Restricted Stock Award Agreement, I hereby appoint my spouse as my
attorney-in-fact in respect to the exercise of any rights under the Agreement and agree to be bound
by the provisions of the Agreement insofar as I may have any rights in said Agreement or any shares
of the common stock of the Company issued pursuant thereto under the community property laws or
similar laws relating to marital property in effect in the state of our residence as of the date of
the signing of the foregoing Agreement.

	 	 	 	 	 	 	 
	Dated:                                         ,                     
	 	 	 	 	 	 
	 

	 	 	 	 

Signature of Spouse
	 	 

B-1

 

EXHIBIT C

TO RESTRICTED STOCK AWARD GRANT NOTICE

STOCK ASSIGNMENT

     FOR
VALUE RECEIVED, the undersigned,                     , hereby sells, assigns and transfers unto SPECTRUM
PHARMACEUTICALS, INC., a Delaware corporation (the
“Company”),
                     shares of the common
stock of the Company, standing in its name of the books of said corporation represented by
Certificate No. ___ herewith and do hereby irrevocably constitute and appoint                                         
to transfer the said stock on the books of the within named corporation with full power of
substitution in the premises.

     This Stock Assignment may be used only in accordance with the Restricted Stock Award Agreement
between the Company and the undersigned dated
                                        ,                     .

	 	 	 	 	 	 	 
	Dated:                                         ,                     
	 	 	 	 	 	 
	 

	 	 	 	 

Signature of Holder
	 	 

     INSTRUCTIONS: Please do not fill in the blanks other than the signature line. The purpose of
this assignment is to enable the Company to enforce the Forfeiture Restriction as set forth in the
Agreement, without requiring additional signatures on the part of Holder.

C-1

 

EXHIBIT D

TO RESTRICTED STOCK AWARD GRANT NOTICE

JOINT ESCROW INSTRUCTIONS

                                        ,                     

Secretary

Spectrum Pharmaceuticals, Inc.

157 Technology Drive

Irvine, California 92618

Ladies and Gentlemen:

     As escrow agent (the “Escrow Agent”) for both Spectrum Pharmaceuticals, Inc., a Delaware
corporation (“Spectrum”), and the undersigned recipient of stock of the Company (the “Holder”), you
are hereby authorized and directed to hold in escrow the documents delivered to you pursuant to the
terms of that certain Restricted Stock Award Agreement (“Agreement”) between the Company and the
undersigned (the “Escrow”), including the stock certificate, if any, and the Assignment in Blank,
in accordance with the following instructions:

     1. In the event of forfeiture by Holder of any of the shares owned by Holder pursuant to the
Forfeiture Restriction set forth in the Agreement, Spectrum and/or any assignee of Spectrum
(referred to collectively for convenience herein as the “Company”) shall give to Holder and you a
written notice specifying the number of shares of stock forfeited and the date of forfeiture.
Holder and the Company hereby irrevocably authorize and direct you to effect the forfeiture
contemplated by such notice in accordance with the terms of said notice.

     2. As of the date of forfeiture indicated in such notice, you are directed (a) to date the
stock assignments necessary for the forfeiture and transfer in question, (b) to fill in the number
of shares being forfeited and transferred, and (c) to deliver the same, together with the
certificate, if any, evidencing the shares of stock to be forfeited and transferred, to the Company
or its assignee. If the shares are held in book entry form, you are directed to all actions
necessary to cause the Company’s transfer agent to reflect such forfeiture and transfer in the
Company’s stock records.

     3. Holder irrevocably authorizes the Company to deposit with you any certificates evidencing
shares of stock to be held by you hereunder and any additions and substitutions to said shares as
defined in the Agreement. Holder does hereby irrevocably constitute and appoint you as Holder’s
attorney-in-fact and agent for the term of this escrow to execute with respect to such securities
all documents necessary or appropriate to make such securities negotiable and to complete any
transaction herein contemplated, including but not limited to the filing with any applicable state
blue sky authority of any required applications for consent to, or notice of transfer of, the
securities. Subject to the provisions of this paragraph 3, Holder shall exercise all rights and
privileges of a stockholder of the Company while the stock is held by you.

     4. Upon written request of Holder, but no more than once per calendar year, unless the
Forfeiture Restriction has been enforced, you will deliver to Holder, or cause the Company’s

 

 

transfer agent to deliver to Holder, a certificate or certificates representing so many shares
of stock as are not then subject to the Forfeiture Restriction. Within one hundred twenty (120)
days after any voluntary or involuntary termination of Holder’s services to the Company for any or
no reason, you will deliver to Holder, or cause the Company’s transfer agent to deliver to Holder,
a certificate or certificates representing the aggregate number of shares held or issued pursuant
to the Agreement and not forfeited pursuant to the Forfeiture Restriction set forth in Section 2 of
the Agreement.

     5. If at the time of termination of this escrow you should have in your possession any
documents, securities, or other property belonging to Holder, you shall deliver all of the same to
Holder and shall be discharged of all further obligations hereunder.

     6. Your duties hereunder may be altered, amended, modified or revoked only by a writing signed
by all of the parties hereto.

     7. You shall be obligated only for the performance of such duties as are specifically set
forth herein and may rely and shall be protected in relying or refraining from acting on any
instrument reasonably believed by you to be genuine and to have been signed or presented by the
proper party or parties. You shall not be personally liable for any act you may do or omit to do
hereunder as Escrow Agent or as attorney-in-fact for Holder while acting in good faith, and any act
done or omitted by you pursuant to the advice of your own attorneys shall be conclusive evidence of
such good faith.

     8. You are hereby expressly authorized to disregard any and all warnings given by any of the
parties hereto or by any other person or corporation, excepting only orders or process of courts of
law and are hereby expressly authorized to comply with and obey orders, judgments or decrees of any
court. In case you obey or comply with any such order, judgment or decree, you shall not be liable
to any of the parties hereto or to any other person, firm or corporation by reason of such
compliance, notwithstanding any such order, judgment or decree being subsequently reversed,
modified, annulled, set aside, vacated or found to have been entered without jurisdiction.

     9. You shall not be liable in any respect on account of the identity, authorities or rights of
the parties executing or delivering or purporting to execute or deliver the Agreement or any
documents or papers deposited or called for hereunder.

     10. You shall not be liable for the expiration of any rights under any applicable state,
federal or local statute of limitations or similar statute or regulation with respect to these
Joint Escrow Instructions or any documents deposited with you.

     11. You shall be entitled to employ such legal counsel and other experts as you may deem
necessary properly to advise you in connection with your obligations hereunder, may rely upon the
advice of such counsel, and may pay such counsel reasonable compensation therefor.

D-2

 

     12. Your responsibilities as Escrow Agent hereunder shall terminate if you shall cease to be
an officer or agent of the Company or if you shall resign by written notice to each party. In the
event of any such termination, the Company shall appoint a successor Escrow Agent.

     13. If you reasonably require other or further instruments in connection with these Joint
Escrow Instructions or obligations in respect hereto, the necessary parties hereto shall join in
furnishing such instruments.

     14. It is understood and agreed that should any dispute arise with respect to the delivery
and/or ownership or right of possession of the securities held by you hereunder, you are authorized
and directed to retain in your possession without liability to anyone all or any part of said
securities until such disputes shall have been settled either by mutual written agreement of the
parties concerned or by a final order, decree or judgment of a court of competent jurisdiction
after the time for appeal has expired and no appeal has been perfected, but you shall be under no
duty whatsoever to institute or defend any such proceedings.

     15. Any notice or other communication required or permitted hereunder shall be in writing and
shall be delivered personally or sent by facsimile transmission, overnight air courier, or first
class certified or registered mail, postage prepaid, and addressed to the parties at the addresses
of the parties set forth at the end of these Joint Escrow Instructions or such other address as a
party may designate by five (5) days’ advance written notice to the other parties hereto. All
notices and communications shall be deemed to have been received unless otherwise set forth herein:
(i) in the case of personal delivery, on the date of such delivery; (ii) in the case of facsimile
transmission, on the date on which the sender receives electronic confirmation that such notice was
received by the addressee; (iii) in the case of overnight air courier, on the second business day
following the day sent, with receipt confirmed by the courier; and (iv) in the case of mailing by
first class certified or registered mail, postage prepaid, return receipt requested, on the fifth
business day following such mailing.

     16. By signing these Joint Escrow Instructions, you become a party hereto only for the purpose
of said Joint Escrow Instructions; you do not become a party to the Agreement.

     17. This instrument shall be binding upon and inure to the benefit of the parties hereto, and
their respective successors and permitted assigns.

     18. These Joint Escrow Instructions shall be governed by, and construed and enforced in
accordance with, the laws of the State of California, excluding that body of law pertaining to
conflicts of law.

(Signature Page Follows)

D-3

 

     IN WITNESS WHEREOF, the parties have executed these Joint Escrow Instructions as of the date
first written above.

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	SPECTRUM PHARMACEUTICALS, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	   Name:	 	 	 	 
	 

	 	 	 	   Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	   157 Technology Drive	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	   Irvine, California 92618	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HOLDER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	ESCROW AGENT:	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	   Secretary	 	 
	 	 	   Spectrum Pharmaceuticals, Inc.	 	 
	 
	 	 	 	 	 	 	 	 
	Address	 	   157 Technology Drive	 	 
	 	 	 	 	 	 	 
	 	 	 	 	   Irvine, California 92618	 	 
	 	 	 	 	 	 	 

D-4

 

EXHIBIT E

TO RESTRICTED STOCK AWARD GRANT NOTICE

FORM OF 83(B) ELECTION AND INSTRUCTIONS

These instructions are provided to assist you if you choose to make an election under Section 83(b)
of the Internal Revenue Code, as amended, with respect to the shares of common stock, par value
$0.001, of Spectrum Pharmaceuticals, Inc. transferred to you. Please consult with your personal
tax advisor as to whether an election of this nature will be in your best interests in light of
your personal tax situation.

The executed original of the Section 83(b) election must be filed with the Internal Revenue Service
not later than 30 days after the date the shares were transferred to you. PLEASE NOTE: There is
no remedy for failure to file on time. The steps outlined below should be followed to ensure the
election is mailed and filed correctly and in a timely manner. ALSO, PLEASE NOTE: If you make the
Section 83(b) election, the election is irrevocable.

	1.	 	Complete Section 83(b) election form (attached as Attachment 1) and make four (4)
copies of the signed election form. (Your spouse, if any, should sign the Section 83(b)
election form as well.)
	 
	2.	 	Prepare the cover letter to the Internal Revenue Service (sample letter attached as
Attachment 2).
	 
	3.	 	Send the cover letter with the originally executed Section 83(b) election form and one (1)
copy via certified mail, return receipt requested to the Internal Revenue Service at the
address of the Internal Revenue Service where you file your personal tax returns. We suggest
that you have the package date-stamped at the post office. The post office will provide you
with a white certified receipt that includes a dated postmark. Enclose a self-addressed,
stamped envelope so that the Internal Revenue Service may return a date-stamped copy to you.
However, your postmarked receipt is your proof of having timely filed the Section 83(b)
election if you do not receive confirmation from the Internal Revenue Service.
	 
	4.	 	One (1) copy must be sent to Spectrum Pharmaceuticals, Inc. for its records and one (1) copy
must be attached to your federal income tax return for the applicable calendar year.
	 
	5.	 	Retain the Internal Revenue Service file stamped copy (when returned) for your records.

Please consult your personal tax advisor for the address of the office of the Internal Revenue
Service to which you should mail your election form.

 

 

ATTACHMENT 1 TO EXHIBIT E

TO RESTRICTED STOCK AWARD GRANT NOTICE

ELECTION UNDER INTERNAL REVENUE CODE SECTION 83(B)

          The undersigned taxpayer hereby elects, pursuant to Section 83(b) of the Internal Revenue Code
of 1986, as amended, to include in taxpayer’s gross income for the current taxable year the amount
of any compensation taxable to taxpayer in connection with taxpayer’s receipt of shares (the
“Shares”) of common stock, par value $0.001 per share, of Spectrum Pharmaceuticals, Inc., a
Delaware corporation (the “Company”).

	1.	 	The name, address and taxpayer identification number of the undersigned taxpayer are:

	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	SSN:
	 	 	 	 
	 

	 	 	 	 	 	 

          The name, address and taxpayer identification number of the taxpayer’s spouse are (complete if
applicable):

	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	SSN:
	 	 	 	 
	 

	 	 	 	 	 	 

	2.	 	Description of the property with respect to which the election is being made:
	 
	 	 	                          shares of common stock, par value $0.001 per share, of the Company.
	 
	3.	 	The date on which the property was transferred was December 5, 2005.
	 
	4.	 	The taxable year to which this election relates is calendar year 2005.
	 
	5.	 	Nature of restrictions to which the property is subject:

The Shares may not be transferred and are subject to forfeiture if taxpayer’s employment or service
with the Company and its subsidiaries terminates for any reason. The Forfeiture Restriction will
lapse in a series of four cumulative annual installments of 25% each on January 1, 2006, January 1,
2007, January 1, 2008 and January 1, 2009.

6. The fair market value at the time of transfer (determined without regard to any lapse
restrictions, as defined in Treasury Regulation Section 1.83-3(a)) of the Shares was $0.001 per
Share.

	7.	 	The amount paid by the taxpayer for the Shares was $0.001 per Share.
	 
	8.	 	A copy of this statement has been furnished to the Company.

	 	 	 
	Dated:                                         , 2006

	 	Taxpayer Signature                                                             

The undersigned spouse of Taxpayer joins in this election. (Complete if applicable).

	 	 	 
	Dated:                                         , 2006

	 	Spouse’s Signature                                                             

 

 

ATTACHMENT 2 TO EXHIBIT E

TO RESTRICTED STOCK AWARD GRANT NOTICE

SAMPLE COVER LETTER TO INTERNAL REVENUE SERVICE

[Date]

VIA CERTIFIED MAIL

RETURN RECEIPT REQUESTED

Internal Revenue Service

[Address where taxpayer files returns]

	 	 	 	 	 
	 

	 	Re:
	 	Election under Section 83(b) of the Internal Revenue Code of 1986
	 

	 	 	 	Taxpayer:
             
                                                                    
	 

	 	 	 	Taxpayer’s Social Security
Number:
                                                             
	 

	 	 	 	Taxpayer’s Spouse:                                                             
	 

	 	 	 	Taxpayer’s Spouse’s
Social Security Number:                                         

Ladies and Gentlemen:

Enclosed please find an original and one copy of an Election under Section 83(b) of the Internal
Revenue Code of 1986, as amended, being made by the taxpayer referenced above. Please acknowledge
receipt of the enclosed materials by stamping the enclosed copy of the Election and returning it to
me in the self-addressed stamped envelope provided herewith.

	 	 	 	 	 
	 

	 	Very truly yours,
	 	 
	 
	 	 	 	 
	 

	 	 	 	 

Enclosures

cc:      Spectrum Pharmaceuticals, Inc.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]