Document:

Exhibit

Exhibit 10.1
SPECTRUM PHARMACEUTICALS, INC. 
TERM SHEET FOR 2018 LONG-TERM INCENTIVE PLAN 
STOCK APPRECIATION RIGHTS AWARD
Spectrum Pharmaceuticals, Inc. hereby grants to the Participant named below stock appreciation rights (the “SARs”) covering the number of shares of Common Stock specified below, at the exercise price specified below, and on the terms and subject to the conditions set forth in this Term Sheet, the Spectrum Pharmaceuticals, Inc. 2018 Long-Term Incentive Plan (the “Plan”), and the Plan’s Standard Terms and Conditions (the “Standard Terms and Conditions”), each as amended from time to time (the Term Sheet and the Standard Terms and Conditions, as in effect at the time of the execution of the Term Sheet, together constituting the “Award Agreement” between Participant and the Company).  The SARs are granted pursuant to the Plan and are subject to, and qualified in its entirety by the Award Agreement.  If the Award Agreement conflicts with the Plan, the Plan will control.  Capitalized terms not explicitly defined herein are defined in the Plan.
	
		
	Name of Participant:
	 

	Grant Date:
	 

	Number of SARs covering Shares:
	 

	Exercise Price per Share:
	$

	Vesting Commencement Date:
	☐ Same as Grant Date
☐ Date:______________________

	Vesting Schedule:
	 

	Expiration Date:
	☐ The ten-year anniversary of the Grant Date

By accepting this Award Agreement, Participant acknowledges that he or she has received and read, and agrees that the SARs shall be subject to, and Participant shall comply with, the terms of the Award Agreement and the Plan.
IN WITNESS WHEREOF, the Company has caused this Award Agreement to be executed by its duly authorized officer.
SPECTRUM PHARMACEUTICALS, INC.
 
_______________________________________ 
Name 
Title
[Participant/Spouse Signature page follows on the reverse side of this Term Sheet]

PARTICIPANT’S ACCEPTANCE
The undersigned hereby accepts the foregoing SARs and agrees to the terms and conditions of the Award Agreement and the Plan.  The undersigned hereby acknowledges receipt of the attached Standard Terms and Conditions and that a copy of the Plan is available on the Company’s intranet.
PARTICIPANT
 
_______________________________________ 
Signature
By his or her signature below, the spouse of Participant, if Participant is legally married as of the date of his or her execution of this Term Sheet, acknowledges that he or she has read this Term Sheet, the Standard Terms and Conditions and the Plan and is familiar with the terms and provisions thereof, and agrees to be bound by all the terms and conditions of this Term Sheet, the Standard Terms and Conditions and the Plan.

______________________________________        ______________________________________
 
Name of Spouse                        Signature of Spouse
OR

By his or her signature below, Participant represents that he or she is not legally married as of the date of execution of this Term Sheet.
PARTICIPANT
 
_______________________________________ 
Signature

SPECTRUM PHARMACEUTICALS, INC. 
STANDARD TERMS AND CONDITIONS FOR 
STOCK APPRECIATION RIGHTS
These Standard Terms and Conditions apply to any Stock Appreciation Rights (“SARs”) granted under the Spectrum Pharmaceuticals, Inc. 2018 Long-Term Incentive Plan (the “Plan”) that are evidenced by a Term Sheet or an action of the Committee that specifically refers to these Standard Terms and Conditions (the Term Sheet and the Standard Terms and Conditions, as in effect at the time of the execution of the Term Sheet, together constituting the “Award Agreement” between Participant and the Company).  Capitalized terms not otherwise defined herein shall have the meaning set forth in the Plan.
		
	1.
	TERMS OF SARs

The Company has granted to the Participant named in the Term Sheet provided to Participant herewith SARs as set forth in the Term Sheet, at the exercise price set forth in the Term Sheet, that confer on the holder thereof a right to receive, on exercise thereof, the excess of (i) the Fair Market Value of one Share on the date of exercise over (ii) the grant price of the right as specified by the Committee subject to the other terms and conditions set forth in the Award Agreement and the Plan.  The SARS may be settled in cash or Shares as determined by the Committee from time to time.
		
	2.
	EXERCISE OF SARs

The SARs shall continue to vest, in accordance with the Vesting Schedule set forth on the Term Sheet, so long as Participant remains in Continuous Service with the Company.  Participant may exercise any vested portion of the SARs at any time prior to the Expiration Date of the SARs, except as otherwise provided in the Plan.
To exercise the SARs (or any part thereof), Participant shall provide notice to the Company specifying the number of SARs Participant wishes to purchase and how Participant’s Shares (to the extent the SARs will be settled in Shares) should be registered (in Participant’s name only or in Participant’s and Participant’s spouse’s names as community property or as joint tenants with right of survivorship).
Upon exercise of the SARs, Participant shall receive a payment in the form of a number of Shares (based upon the Fair Market Value of the Shares on the exercise date); however, the Company reserves the right to settle such SARs in cash if the Committee has decided that the SARs are to be settled in cash.
If the SARs are settled in Shares: (i) fractional Shares will not be issued, and (ii) Shares will be issued as soon as practical after exercise.  Notwithstanding the above, the Company shall not be obligated to deliver any Shares during any period when the Company determines that the exercisability of the SARs or the delivery of Shares hereunder would violate Applicable Law.
		
	3.
	EXPIRATION OF SARs

The SARs shall expire and cease to be exercisable on the Expiration Date set forth in the Term Sheet.
		
	4.
	RESTRICTIONS ON RESALES OF SAR SHARES

The Company may impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by Participant or other subsequent transfers by Participant of any Shares issued as a result of the exercise of the SARs, including without limitation (i) restrictions under an insider trading policy, (ii) restrictions designed to delay and/or coordinate the timing and manner of 

sales by Participant and other holders of SARs or other equity award holders, (iii) restrictions as to the use of a specified brokerage firm for such resales or other transfers, or (iv) restrictions under Applicable Law.
		
	5.
	INCOME TAXES

Participant shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise by reason of exercising SARs or disposition of any Shares issued as a result of a SAR exercise.  The Company shall not be required to issue Shares or to recognize the disposition of such Shares until such obligations are satisfied.
		
	6.
	TRANSFERABILITY OF SARs

Except as required by Applicable Law, the SARs shall not be assignable, alienable, saleable, or transferable by Participant except by will or by the laws of descent and distribution; provided, however, that Participant may, in the manner established by the Committee, designate a beneficiary or beneficiaries to exercise the rights of Participant with respect to the SARs on the death of Participant.  The SARs shall be exercisable, during Participant’s lifetime, only by Participant or, if permissible under Applicable Law, by Participant’s guardian or legal representative.  The SARs may not be pledged, alienated, attached, or otherwise encumbered, and any purported pledge, alienation, attachment, or encumbrance thereof shall be void and unenforceable against the Company.
Notwithstanding the foregoing, Participant may transfer some or all of his or her SARs to one or more “family members,” which is not a “prohibited transfer for value,” provided that (i) the Participant (or such Participant’s estate or representative) shall remain obligated to satisfy all income or other tax withholding obligations associated with the exercise of such SARs; (ii) the Participant shall notify the Company in writing that such transfer has occurred and disclose to the Company the name and address of the “family member” or “family members” and their relationship to Participant, and (iii) such transfer shall be effected pursuant to transfer documents in a form approved by the Committee.  For purposes of the foregoing, the terms “family members” and “prohibited transfer for value” have the meaning ascribed to them in the General Instructions to form S-8 (or any successor form) promulgated under the Securities Act of 1933, as amended (“Securities Act”).
		
	7.
	CHANGE IN CONTROL

On a Change in Control, any then outstanding and unvested portion of the SARs shall automatically vest in full effective as of immediately prior to the consummation of the Change in Control.  If the vesting of the SARs so accelerates, the Committee, in its sole discretion, may provide, in connection with the Change in Control transaction, for the purchase, exchange, or cancellation of the SARs for an amount of cash or other property having a value equal to the difference (or “spread”) between: (i) the value of the cash or other property that Participant would have received pursuant to the Change in Control transaction in exchange for the Shares issuable on exercise of the SARs had the SARs been exercised and settled in Shares immediately prior to the Change in Control, and (ii) the Exercise Price, less applicable withholding.
		
	8.
	REPRESENTATIONS AND WARRANTIES

Participant acknowledges that the Company may issue Shares upon the exercise of the SARs, if settled in Shares without registering such Shares under the Securities Act, on the basis of certain exemptions from such registration requirement if the Company is not then publicly traded.  Accordingly, if the SARs will be settled in Shares, Participant agrees that his or her exercise of the SARs may be expressly conditioned upon his or her delivery to the Company of an investment certificate including such representations and undertakings as the Company may reasonably require in order to assure the availability 

of such exemptions, including a representation that Participant is acquiring the Shares for investment and not with a present intention of selling or otherwise disposing thereof and an agreement by Participant that the certificates evidencing any Shares may bear a legend indicating such non-registration under the Securities Act and the resulting restrictions on transfer.  Participant acknowledges that, because any Shares received upon exercise of the SARs may be unregistered, Participant may be required to hold the any such Shares indefinitely unless they are subsequently registered for resale under the Securities Act or an exemption from such registration is available.
Participant acknowledges that Applicable Law may require the placement of certain restrictive legends upon any Shares issued upon exercise of the SARs, and Participant hereby consents to the placing of any such legends upon certificates evidencing the Shares as the Company may deem necessary or advisable.
Participant acknowledges that he or she shall be solely responsible for the satisfaction of any taxes or interest or other consequence, that may arise pursuant to the SARs (including taxes arising under Code Section 409A of the Code), and neither the Company nor the Committee nor anyone other than Participant, or his or her estate or beneficiaries, shall have any obligation whatsoever to pay such taxes or interest or to otherwise indemnify or hold Participant harmless from any or all of such taxes.
		
	9.
	THE PLAN AND OTHER AGREEMENTS

In addition to the Award Agreement, the SARs shall be subject to the terms of the Plan, which are incorporated into the Award Agreement by this reference.  A copy of the Plan, and the accompanying prospectus, is available at the Company’s intranet site.
The Award Agreement and the Plan constitute the entire understanding between Participant and the Company regarding the SARs.  Any prior agreements, commitments, or negotiations concerning the SARs are superseded.
		
	10.
	LIMITATION OF INTEREST IN SHARES SUBJECT TO SARS

Neither Participant (individually or as a member of a group) nor any beneficiary or other person claiming under or through Participant shall have any right, title, interest, or privilege in or to any Shares allocated or reserved for the purpose of the Plan or subject to the Award Agreement except as to such Shares, if any, as shall have been issued to such person upon exercise of the SARs.
		
	11.
	NO EMPLOYMENT RIGHT

Nothing in the Plan, in the Award Agreement or any other instrument executed pursuant to the Plan shall confer upon Participant any right to continue in the Company’s employ or service nor limit in any way the Company’s right to terminate Participant’s Continuous Service at any time for any reason.
		
	12.
	GENERAL

In the event that any provision of the Award Agreement is declared to be illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid and enforceable, or otherwise deleted, and the remainder of the Award Agreement shall not be affected except to the extent necessary to reform or delete such illegal, invalid or unenforceable provision.
Section headings are inserted solely for convenience of reference, and shall not constitute a part of the Award Agreement, nor shall they affect its meaning, construction, or effect.

Except as otherwise provided in the Award Agreement or in the Plan, every covenant, term, and provision of the Award Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, legatees, legal representatives, successors, transferees, and assigns.
The Award Agreement may be modified or amended at any time, in accordance with the Plan and provided that Participant must consent in writing to any modification that would impair his or her rights under the Award Agreement provided that no such consent shall be required with respect to any modification if the Committee determines in its sole discretion that such modification either (i) is required or advisable in order for the Company, the Plan or the SARs to satisfy or conform to Applicable Law or to meet the requirements of any accounting standard, or (ii) is not reasonably likely to significantly diminish the benefits provided under such SARs.
		
	13.
	“MARKET STAND-OFF” CONDITIONS

Participant agrees that, if requested by the Company, Participant will not sell or otherwise transfer or dispose of any Shares held by Participant without the prior written consent of the Company during such period of time.
		
	14.
	INTERPRETATION

This SAR is granted pursuant to the terms of the Plan, and shall in all respects be interpreted in accordance therewith.  The Committee shall have the power to interpret the Plan and the Award Agreement and to adopt such rules for the administration, interpretation, and application of the Plan and the Award Agreement as are consistent therewith, and to interpret or revoke any such rules.  Any action, decision, interpretation, or determination by the Committee shall be final, binding, and conclusive on the Company and Participant.  No member of the Committee shall be personally liable for any action, determination, or interpretation made in good faith with respect to the Plan, the Award Agreement, or the SARs.
		
	15.
	NOTICES

Any notice, demand or request required or permitted to be given under the Award Agreement shall be in writing and shall be deemed given when delivered personally or three (3) days after being deposited in the United States mail, as certified or registered mail, with postage prepaid, and addressed, if to the Company, at its principal place of business, Attention: Legal Department, and if to Participant, at his or her most recent address as shown in the employment or stock records of the Company.
		
	16.
	GOVERNING LAW

The validity, construction, interpretation, and effect of these SARs shall be governed by and determined in accordance with the laws of the State of Delaware, regardless of the law that might be applied under principles of conflicts of laws.
		
	17.
	COUNTERSIGNATURE

The Term Sheet may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall be deemed one instrument, and is incorporated herein.pcti-ex42_468.htm

Exhibit 4.2

DESCRIPTION OF SECURITIES 

REGISTERED PURSUANT TO SECTION 12 OF THE 

SECURITIES EXCHANGE ACT OF 1934 

 

PCTEL, Inc. (“PCTEL,” the “Company,” “we,” “us,” and “our”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): our common stock, par value $0.001 per share (the “Common Stock”). 

 

DESCRIPTION OF COMMON STOCK 

 

The following description of our Common Stock is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) and our Bylaws, as amended (the “Bylaws”), each of which are incorporated by reference as an exhibit to our most recent Annual Report on Form 10-K, of which this exhibit is a part. We encourage you to read our Certificate of Incorporation, our Bylaws and the applicable provisions of the General Corporation Law of the State of Delaware (the “DGCL”) for additional information. 

 

Authorized Capital

 

Our Certificate of Incorporation currently authorizes the issuance of one-hundred million (100,000,000) shares of Common Stock, and five million (5,000,000) shares of preferred stock, with a par value of $0.001 (the “Preferred Stock”). Subject to our stockholders’ approval, the number of authorized shares of Common Stock will be reduced to 50,000,000 shares.  Our Common Stock is listed and principally traded on The Nasdaq Global Select Market under the symbol “PCTI.”  

There are currently no shares of Preferred Stock outstanding.  However, our Board of Directors is authorized to approve the issuance of one or more series of Preferred Stock without further authorization of our stockholders and to fix the number of shares, the designations, the relative rights and the limitations of any series of Preferred Stock. As a result, our Board of Directors, without stockholder approval, could authorize the issuance of Preferred Stock with voting, conversion and other rights that could proportionately reduce, minimize or otherwise adversely affect the voting power and other rights of holders of Common Stock or other series of Preferred Stock.  

 

Dividend Rights 

 

The holders of Common Stock are entitled to receive their proportionate share of the dividends, if any, as may be declared from time to time by the Board of Directors out of funds legally available for that purpose.  Dividends may be paid in cash, in property, or in shares of the Company’s capital stock.  Holders of Common Stock may not receive dividends until we have satisfied our obligations to the holders of outstanding Preferred Stock, if any.

 

Voting Rights 

 

Holders of Common Stock have the exclusive power to vote on all matters presented to our stockholders, unless the DGCL or the certificate of designation for an outstanding series of Preferred Stock gives the holders of that series of Preferred Stock the right to vote on certain matters.  Holders of Common Stock are entitled to one vote for each share on all matters voted on by stockholders, including the election of directors. 

 

Our Board of Directors is divided into three classes. Each year, one class of directors stands for election for a three-year term.  When a quorum is present or represented at any meeting, each director is elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors.   The vote of the holders of a majority of the shares having voting power present in person or represented by proxy decides any other question brought before such meeting, unless the question is one upon which, by express provisions of the statutes, Certificate of Incorporation, or Bylaws, a different vote is required.  See “Anti-takeover Provisions Contained in Our Certificate of Incorporation and Bylaws”.

 

If, at the time of filling any vacancy or any newly created directorship, the directors then in office constitute less than a majority of the whole Board (as constituted immediately prior to any such increase), then the Delaware Court of Chancery may, upon application of any stockholder or stockholders holding at least 10% of the total number of the shares at the time outstanding having the right to vote for such directors, summarily order an election to be held to fill any such vacancies or newly created directorships, or to replace the directors chosen by the directors then in office as aforesaid, which election shall be governed by the provisions of Section 211 of the DGCL as far as applicable.

 

Liquidation Rights 

 

In the event of a liquidation, dissolution or winding up of PCTEL, the holders of Common Stock are entitled to their proportionate share of all assets remaining after payment of liabilities, after taking into consideration the prior distribution rights of Preferred Stock, if any, then outstanding.

 

Fully Paid and Nonassessable

 

All outstanding shares of our Common Stock are fully paid and nonassessable. This means the full purchase price for the outstanding shares of Common Stock has been paid and the holders of such shares will not be assessed any additional amounts for such shares. Any additional Common Stock that we may issue in the future will also be fully paid and nonassessable.

 

Other Rights and Preferences 

 

The holders of Common Stock do not have any conversion rights or any preemptive rights to subscribe for stock or any other securities of the Company. There are no redemption or sinking fund provisions applicable to our Common Stock. 

 

Anti-takeover Provisions Contained in Our Certificate of Incorporation and Bylaws 

 

Certain provisions of our Certificate of Incorporation and Bylaws may make it less likely that our management would be changed or someone would acquire control of the Company without the Board’s consent. These provisions may delay, defer or prevent a change in control or takeover attempts that stockholder may believe are in their best interests, including tender offers or attempts that might allow stockholders to receive premiums over the market price of their Common Stock. 

 

	
 
	
•
	
Effect of Preferred  Stock. Our Board of Directors may at any time, under our Certificate of Incorporation and without stockholder approval, issue one or more new series of Preferred Stock. In some cases, the issuance of Preferred Stock without stockholder approval could discourage or make more difficult attempts to take control of the Company through a merger, tender offer, proxy contest or otherwise. Preferred Stock with special voting rights or other features issued to persons favoring our management could stop a takeover by preventing the person trying to take control of the Company from acquiring enough voting shares necessary to take control.

	
 
	
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Certain Effects of Authorized but Unissued Stock.  Authorized but unissued shares of Common Stock and Preferred Stock are available for future issuance without stockholder approval. These additional shares may be utilized for a variety of corporate purposes, including future public or private offerings to raise additional capital and for corporate acquisitions. The Company could also use additional shares to dilute the stock ownership of persons seeking to obtain control of the Company. 

	
 
	
•
	
Supermajority Approval of Amendments to Certificate of Incorporation and Bylaws. Stockholders must approve certain amendments to our organizational documents by a supermajority vote, which can delay, defer or prevent a change in control.  The affirmative vote of 66 2/3% of the voting power of the then outstanding shares voting as a single class, shall be required for the adoption, amendment, or repeal of the following sections of the Bylaws by the stockholders of the Company: Section 2.2 (Annual Meeting) and Section 2.3 (Special Meeting) and the following sections of the Certificate of Incorporation: Article Seventh (Staggered Board of Directors) and Article Ninth (Amendment of Article Seventh).  

	
 
	
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Director Nomination, Election Procedures, and Classified Board. In order to nominate candidates for the Board of Directors, a stockholder must follow the advance notice procedures described in our Bylaws. In general, a stockholder must submit a written notice containing certain information not less than 120 days prior to the date of our proxy statement for the previous year’s annual meeting of stockholders.  Directors are elected by a plurality of the votes, meaning that the candidates receiving the greatest number of votes are elected, regardless of whether or not they receive a majority of the votes cast.  As a result, “vote no” campaigns to unseat incumbent directors may be ineffective in uncontested elections. Further, the Company has three classes of directors elected to serve staggered three-year terms, which means stockholders can only elect, or remove, a limited number of directors in a given year. 

	
 
	
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Stockholder Proposal Procedures. Stockholders can propose director nominations or other business to the Board of Directors to be considered at an annual meeting of stockholders, only if the stockholder follows the advance notice procedures described in our Bylaws. In general, a stockholder must submit a written notice containing certain information not less than 120 days prior to the date of our proxy statement for the previous year’s annual meeting of stockholders. 

	
 
	
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Right to Call Special Meeting and Action by Written Consent.  The Certificate of Incorporation and Bylaws require that any action required or permitted to be taken by our stockholders must be effected at a duly called annual or special meeting of the stockholders and may not be effected by a consent in writing. In addition, special meetings of our stockholders may be called only by the Board of Directors or some of our officers.

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