Document:

Exhibit 10.23 (Stock Appreciation Rights Plan)

    
      

    

     

    Exhibit
      10.23

    

      CELADON
        GROUP, INC.

      STOCK
        APPRECIATION RIGHTS PLAN

      

      Celadon
        Group, Inc. ("Company") hereby adopts the Celadon Group, Inc. Stock Appreciation
        Rights Plan, effective April 4, 2002.

      

      ARTICLE
        I

      

      GENERAL
        PROVISIONS

      

      The
        purpose of the Plan is to provide a means for the Company and its United
        States
        Subsidiaries to attract and retain key officers and management employees.
        The
        Plan contemplates the grant of Stock Appreciation Rights to participating
        employees, which will allow those employees to share in increases in the
        value
        of the Company's common stock.

      

      ARTICLE
        II

      

      DEFINITIONS
        AND RULE OF CONSTRUCTION

      

      Section
        2.01. Definitions.
        When
        the first letter of a word or a phrase is capitalized herein, the meaning
        of the
        word or phrase shall be as follows:

      

      (a) "Beneficiary"
        means the person or persons designated by the Participant as his beneficiary
        hereunder on forms provided by the Company and received by the Company during
        the Participant's life. If the Participant does not designate a Beneficiary
        as
        provided in the preceding sentence, or if the designated Beneficiary or
        Beneficiaries predecease the Participant, the Participant's Beneficiary shall
        be
        his spouse at the time of death or, if the Participant is not survived by
        a
        spouse, the Participant's estate.

      

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

      

      (c) "Change
        of Control" occurs (i) when any person or persons (as such term is used in
        Sections 13(e) and 14(d) of the Securities Exchange Act of 1934, as amended
        ("Exchange Act")), other than the holders of any of the securities of the
        Company on the effective date of the Plan or an employee benefit plan
        established or maintained by the Company or any Subsidiary, is or becomes
        the
        beneficial owner (as defined in Rule 13d-3 promulgated under the Exchange
        Act)
        directly or indirectly of Company securities representing 50% or more of
        the
        combined voting power of the then outstanding securities of the Company
        (assuming conversion of all outstanding nonvoting securities into voting
        securities and the exercise of all outstanding options or other convertible
        securities); or (ii) upon the approval by the Company's shareholders of (A)
        a
        merger or consolidation of the Company with or into another corporation (other
        than a merger or consolidation in which the Company is the surviving corporation
        and which does not result in any capital reorganization or reclassification
        or
        other change in the ownership of the then outstanding shares of the Company
        which would be deemed a change in control pursuant to subsection (i) hereof),
        (B) a sale or disposition of all or substantially all of the assets of the
        Company, or (C) a plan of liquidation or dissolution of the
        Company.

      

      (d) "Committee"
        means the Compensation Committee of the Board.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (e) "Company"
        means Celadon Group, Inc. and any successor thereto by merger, consolidation,
        liquidation, or reorganization.

      

      (f) "Distribution
        Date" means the date as of which the Distribution Value of a Vested Right
        is
        paid to a Participant (or Beneficiary, if the Participant is
        deceased).

      

      (g) "Distribution
        Value" means, with respect to a Stock Appreciation Right, the excess, if
        any, of
        the Maturity Value over the Grant Value.

      

      (h) "Grant
        Date" means, with respect to a Right, the effective date of its grant, as
        determined by the Board.

      

      (i) "Grant
        Value" means, with respect to a Stock Appreciation Right, the Value of a
        share
        of the Company's common stock on the Grant Date, as adjusted pursuant to
        Section
        6.01.

      

      (j) "Grantee"
        means an employee to whom Stock Appreciation Rights have been
        granted.

      

      (k) "Maturity
        Value" means, with respect to a Stock Appreciation Right, the Value of a
        share
        of the Company's common stock on the Distribution Date.

      

      (1) "Participation
        Agreement" or "Agreement" means the agreement between the Grantee and the
        Company specifying the terms of any Stock Appreciation Rights and entered
        into
        by the Grantee as a condition of his participation in the Plan.

      

      (m) "Plan"
        means the Celadon Group, Inc. Stock Appreciation Rights Plan, as set out
        in this
        instrument, as it is amended from time to time.

      

      (n) "Stock
        Appreciation Right" or "Right" means a right granted to the Participant pursuant
        to Article III.

      

      (o) "Subsidiary"
        means a direct or indirect majority-owned subsidiary of the
        Company.

      

      (p) "Termination
        of Employment" means complete termination of the employment relationship
        between
        the Participant and the Company and all Subsidiaries for any reason, including
        without limitation, retirement, resignation, discharge, or death.

      

      (q) "Value"
        means, with respect to a share of the Company's common stock for a particular
        date, the average of the closing bid and asked prices of a share of such
        stock
        (as quoted by the National Association of Securities Dealers through NASDAQ)
        on
        the last business day preceding such date, or if the Company's common stock
        is
        listed on the NASDAQ National Market System or is listed on a national stock
        exchange, the closing price on such system or exchange on the last business
        day
        preceding such date. If the Company's common stock is not reported or listed
        as
        provided in the preceding provisions, its Value as of a particular date shall
        be
        its fair market value, as determined by the Board, taking into account such
        factors as the Board, in its sole discretion, may deem relevant.

      -2-

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (r) "Vested"
        or "Vesting" refers to the interest of the Participant or his Beneficiary
        in his
        Stock Appreciation Rights that is unconditional, legally enforceable, and
        nonforfeitable to the extent provided in the Plan.

      

      Section
        2.02. Rules
        of Construction.
        The
        following rules of construction shall govern in interpreting the
        Plan:

      

      (a)
         Words
        used in the masculine gender shall be construed to include the feminine gender,
        where appropriate, and words used in the singular shall be construed to include
        the plural, where appropriate, and vice versa.

      

      (b) The
        headings and subheadings in the Plan are inserted for convenience of reference
        only and are not to be considered in the construction of any provision of
        the
        Plan.

      

      (c) The
        provisions of the Plan shall be construed and governed by the laws of the
        State
        of Indiana.

      

      ARTICLE
        III

      

      GRANT
        OF STOCK APPRECIATION RIGHTS

      

      Subject
        to the terms of the Plan, the Board shall have complete discretion to determine
        who shall participate in the Plan and the size and terms of any grant of
        Stock
        Appreciation Rights. Upon recommendation by the Committee, the Board may
        grant
        Stock Appreciation Rights to any designated key officer or management employee
        of the Company or a Subsidiary. Such award shall be subject to the terms
        and
        conditions specified in this Plan and such additional terms and conditions
        as
        the Board may require. Any award of Stock Appreciation Rights shall be
        conditioned upon the Grantee signing a Participation Agreement containing
        such
        terms as the Board may require and returning the signed Participation Agreement
        to the person designated by the Board.

      

      ARTICLE
        IV

      

      VESTING
        AND FORFEITURE OF STOCK APPRECIATION RIGHTS

      

      Section
        4.01. Vesting
        Provisions.

      

      (a)
         Unless
        more rapid vesting is required by another provision of this Plan or the
        Participation Agreement, a Grantee's interest in Stock Appreciation Rights
        granted to him as of a Grant Date shall become Vested as follows: (i) one-third
        of the Rights shall become Vested on the first anniversary of the Grant Date,
        (ii) an additional one-third of the Rights shall become Vested on the second
        anniversary of the Grant Date, and (iii) the remaining Rights shall become
        Vested on the third anniversary of the Grant Date; provided, however, no
        Right
        forfeited pursuant to Section 4.02 shall become Vested at a later
        date.

      

      (b)
         A
        Participant's interest in any Stock Appreciation Rights that have not previously
        become Vested pursuant to Subsection (a) shall, to the extent not previously
        forfeited pursuant to Section 4.02, become Vested upon a Change of
        Control.

      -3-

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        4.02. Cancellation
        of Non-Vested Stock Appreciation Rights.

      

      If
        a
        Participant Terminates Employment before a Stock Appreciation Right has become
        Vested, any non-Vested Rights shall be cancelled, and the Participant shall
        not
        be entitled to any benefits on account of such Rights.

      

      ARTICLE
        V

      

      PAYMENTS
        WITH RESPECT TO STOCK APPRECIATION RIGHTS

      

      Section
        5.01. Determination
        of Distribution Date.
        The
        Distribution Date with respect to a Grantee's Stock Appreciation Rights shall
        be
        determined as follows:

      

      (a) Unless
        the Grantee makes an election to postpone his Distribution Date pursuant
        to
        Subsection (b), the Distribution Date for a Vested Stock Appreciation Right
        shall be the earlier of (i) the third anniversary of the Grant Date or (ii)
        the
        date on which the Grantee's Termination of Employment occurs.

      

      (b) At
        any
        time before the beginning of the calendar year in which the third anniversary
        of
        the Grant Date occurs, the Grantee may make a written election to defer the
        Distribution Date determined under clause (i) of Subsection (a) to an
        anniversary of the Grant Date that is no earlier than the fourth anniversary
        and
        no later than the tenth anniversary of the Grant Date. To be effective, the
        Grantee's election must be made on a form provided by the Committee and be
        received by the Committee or its designee within the period for making the
        election. An election pursuant to this Subsection shall apply to all Rights
        granted to the Grantee as of the Grant Date. If a Grantee makes an election
        pursuant to this Subsection, the Distribution Date for Vested Rights subject
        to
        the election shall be the earlier of (i) the anniversary of the Grant Date
        selected by the Grantee or (ii) the date on which the Grantee's Termination
        of
        Employment occurs.

      

      Section
        5.02. Payments
        with Respect to Stock Appreciation Rights.
        Within
        30 days after the Distribution Date for a Vested Stock Appreciation Right,
        the
        Company shall pay to the Grantee (or Beneficiary, if the Grantee is deceased),
        the Distribution Value of such Vested Right, reduced by applicable tax
        withholding.

      

      ARTICLE
        VI

      

      ADJUSTMENTS
        TO REFLECT CHANGES IN CAPITAL STRUCTURE.

      

      Section
        6.01. Recapitalization.
        If
        there is an increase or decrease in the number of the Company's issued and
        outstanding shares of common stock resulting from a division or consolidation
        of
        shares, the payment of a stock dividend, any other type of capital adjustment;
        a
        corporate reorganization, including a merger or consolidation to which the
        Company is a party and the surviving corporation; or other increase or decrease
        in the shares of common stock

      -4-

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      effected
        without receipt of consideration by the Company, the number of Stock
        Appreciation Rights and the Grant Value of such Rights shall be adjusted
        to
        reflect such transaction so that the value of a Grantee's total Rights and
        Vested Rights are not affected by the transaction, except to the extent that
        the
        transaction results in more rapid vesting.

      

      Section
        6.02. Dissolution
        and Liquidation.
        If the
        Company is dissolved or liquidated, it shall have the right to terminate
        any
        Stock Appreciation Right that is not Vested. All Stock Appreciation Rights
        Vested on the date of the Company's liquidation or dissolution shall be settled
        as if the Participant had Terminated Employment on such date.

      

      ARTICLE
        VII

      

      ADMINISTRATION

      

      The
        Plan
        shall be administered by the Committee. The Committee shall be responsible
        for
        the operation of the Plan and shall have the exclusive power and authority
        in
        its sole discretion to interpret and construe the provisions of the Plan
        and any
        Stock Appreciation Right. Such interpretation or construction shall be final
        and
        binding. The Committee shall have the exclusive power and authority in its
        sole
        discretion to prescribe, amend, and rescind any rules and regulations relative
        to the Plan or its construction or interpretation, and to take such other
        action
        as it deems necessary or advisable for the administration of the
        Plan.

      

      ARTICLE
        VIII

      

      AMENDMENT
        OR TERMINATION

      

      The
        Board
        may amend the Plan at any time, provided, however, that no amendment or
        termination of the Plan shall adversely affect a Grantee's or Beneficiary's
        right with respect to any Stock Appreciation Right granted before the amendment
        or termination without the Grantee's written consent.

      

      ARTICLE
        IX

      

      TAX
        WITHHOLDING

      

      The
        Company may withhold from any distribution hereunder amounts that the Company
        deems necessary to satisfy federal, state, or local tax withholding requirements
        (or make other arrangements satisfactory to the Company with regard to such
        taxes).

      

      ARTICLE
        X

      

      COMPANY'S
        PAYMENT OBLATIONS UNFUNDED

      

      The
        Company's payment obligations under the Plan shall be paid from the general
        assets of the Company. The right of a Grantee or Beneficiary to receive payments
        under the Plan is merely a contractual right to payment, and the Plan does
        not
        give any Grantee or Beneficiary any interest in or right to any of the funds,
        property, or assets of the Company other than as a general creditor of the
        Company.

      -5-

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        XI

      

      BENEFIT
        PLAN EXCLUSION

      

      Unless
        otherwise determined by the Board, benefits under the Plan shall not be included
        in the determination of benefits under any pension, retirement, profit sharing,
        group insurance, or other employee benefit plan maintained by the Company
        or a
        Subsidiary under which the Grantee may receive benefits.

      

      ARTICLE
        XII

      

      MISCELLANEOUS
        PROVISIONS

      

      Section
        12.01. Nontransferability.
        To the
        extent permitted by law, no Stock Appreciation Right granted under the Plan,
        nor
        any other right or benefit under the Plan, shall be assignable or transferable.
        Any attempt to sell, assign, transfer, pledge, alienate, or encumber any
        such
        benefits and rights under the Plan shall be null and void.

      

      Section
        12.02. No
        Rights As A Shareholder.
        The
        Grantee shall have no rights as a shareholder of the Company with respect
        to any
        Stock Appreciation Right.

      

      Section
        12.03. Employment.
        Neither
        the adoption of the Plan nor the granting of Stock Appreciation Rights hereunder
        shall obligate the Company to continue the Grantee's employment or limit
        the
        Company's right to terminate the Grantee's employment.

      

      Section
        12.04. Annual
        Reports.
        Within
        90 days after the end of each calendar year, the Company shall provide each
        Grantee a written report identifying his outstanding Stock Appreciation Rights
        and the Grant Date, Grant Value, and Vested status of such Rights.

      

      Section
        12.05. Notices.
        All
        notices or other communications by the Grantee to the Company under or in
        connection with the Plan shall be deemed to have been duly given when received
        by the Secretary of the Company, or when received in the form and at the
        location or by the person specified by the Company. Any notices or other
        communications by the Company to the Grantee under or in connection with
        the
        Plan shall be deemed to have been duly given when mailed by the Company to
        the
        Grantee's address as shown on the Company's business records.

      

      -6-

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      The
        duly
        authorized officers of Celadon Group, Inc. have executed the Celadon Group,
        Inc.
        Stock Appreciation Rights Plan this 4th
        day of
        April, 2002.

      

      

      
        	 	 	
                CELADON
                  GROUP, INC.

              
	 	 	 
	 	 	 
	 	 	 
	 	 	
                By:
                  /s/
                  Stephen Russell

              
	 	 	
                (signature)
                  Stephen Russell

                Chairman
                  & CEO

              
	 	 	 
	 	 	 
	 	 	 
	 	 	
                Indianapolis

              
	 	 	
                (office)

              
	 	 	 
	
                ATTEST:

              	 	 
	 	 	 
	 	 	 
	 	 	 
	
                /s/
                  Paul Will

              	 	 
	
                (signature)
                  Paul Will

              	 	 
	
                CFO

              	 	 

      

      
Back
        to Form 10-K/AForm of Incentive Stock Option Agreement

    PEREGRINE
      PHARMACEUTICALS, INC.

    2005
      STOCK INCENTIVE PLAN

    INCENTIVE
      STOCK OPTION AGREEMENT

    

    INCENTIVE
      STOCK OPTION AGREEMENT (the “Agreement”) dated as of _________, between
      PEREGRINE PHARMACEUTICALS, INC., a Delaware corporation (collectively with
      its
      direct and indirect subsidiaries, the “Company”), and ________, an employee of
      the Company (“Optionee” or “Participant”).

    

    The
      Compensation Committee of the Board of Directors of the Company (the
“Committee”) has determined that the objectives of the Peregrine
      Pharmaceuticals, Inc. 2005 Stock Incentive Plan (the “Plan”) will be furthered
      by granting to Optionee options and/or other incentives pursuant to the Plan.
      Any capitalized terms not otherwise defined in this Agreement shall have the
      meaning ascribed to them in the Plan.

    

    In
      consideration of the foregoing and of the mutual undertakings set forth in
      this
      Agreement, the Company and Optionee agree as follows:

    

    
      	
              1
                .

            	
              Grant
                of Option
                and other rights.  

            

    

    

    (a) The
      Company hereby grants to Optionee options (the “Options”) to purchase
      _________ Shares
      of
      Common Stock of the Company (the “Shares”) at a purchase price of ___ per Share.
      It is intended that _______ of the Options qualify as "Incentive Stock Options"
      to the maximum extent permissible under the Internal Revenue Code.

    

    (b) For
      purposes of this Agreement, the term “Cause” means the Participant’s
      (i)
      embezzlement, fraud or any conduct related to the performance of the
      Participant’s duties for the Company that constitutes a crime, (ii)
      unauthorized disclosure of confidential information or breach of any
      confidentiality or non-disclosure agreement with the Company or any of its
      Subsidiaries, (iii)
      willful
      and habitual breach of duties,
      after
      notice to the Participant affording the Participant a reasonable opportunity
      to
      cure, or (iv)
      breach
      or violation of any statutory or common law duty of loyalty to the Company
      or
      the Company’s Affiliates.

     

    2. Exercisability. Subject
      to the further terms of this Agreement, the Options shall vest and become
      exercisable in accordance with Schedule 1 hereto. Unless earlier terminated
      pursuant to the provisions of the Plan or paragraph 5 of this Agreement, the
      unexercised portion of the Options shall expire and cease to be exercisable
      at
      5:00 pm PST ten (10) years from the date of this Agreement. This Agreement
      shall
      not confer upon Optionee any right with respect to continuation of her/his
      employment or consulting relationship with the Company, nor shall it interfere
      with or affect in any manner the right or power of the Company, or a parent
      or
      subsidiary of the Company, to terminate any agreement with Optionee in
      accordance with the terms thereof.

    

    3. Method
      of Exercise.
      The
      Options or any part of them may be exercised only by the giving of written
      notice to the Company in substantially the form annexed hereto as Schedule
      2
      hereto, or on such other form and in such other manner as the Committee shall
      prescribe from time to time. Such written notice must be accompanied by payment
      of the full purchase price for the number of Shares with respect to which the
      Options are being exercised. Such payment may be made by one or a combination
      of
      the following methods: (i) by a check acceptable to the Company; or
      (ii)
      by
      such
      other method as the Committee may authorize including, in the discretion of
      the
      Committee, the recourse promissory note of the Optionee. The date of exercise
      of
      the Options shall be the date on which written notice of exercise is hand
      delivered to the Company and payment of the full purchase price for the number
      of Shares with respect to which the Options are being exercised, during normal
      business hours, at its address as provided in Section 7 of this Agreement,
      or,
      if mailed, the date on which it is postmarked, provided such notice is actually
      received.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    4. Optionee's
      Representations.
      As a
      condition to the exercise of an Option, the Company may require Optionee to
      make
      any representation and warranty to the Company as may be required by any
      applicable law or regulation.

    

    5. Termination
      of Employment; Death.
      Upon
      termination of Optionee’s employment with or status as a consultant to, the
      Company for any reason, the Options will immediately terminate and expire,
      except as provided in paragraphs (a) or (b) of this Section 5.

    

    (a) If
      Optionee resigns as an employee of, or consultant to, the Company with the
      Company's prior written consent, or if the Company terminates Optionee's
      employment by the Company without Cause (as defined herein), the Option will
      be
      exercisable but only to the extent it
      was
      exercisable at the time of such termination or resignation and only until the
      earlier of the expiration date of the Option, determined pursuant to Section
      2
      of this Agreement, or the expiration of three (3) months following such
      termination or resignation.

    

    (b) If
      Optionee dies or becomes Permanently Disabled while employed by, or rendering
      services as a consultant to, the Company or after Optionee's employment or
      status as a consultant to the Company terminates but during a period
      in
      which the Option is exercisable pursuant to paragraph (a) of
      this
      Section 5, the Option will be exercisable but only to the extent it was
      exercisable at the time of death and only until the earlier of the expiration
      date of the Option, determined pursuant to Section 2 of this Agreement, or
      the
      expiration of twelve (12) months following the date of Optionee's
      death.

    

    6. Plan
      Provisions to Prevail.
      This
      Agreement is subject to all of the terms and provisions of the Plan. Without
      limiting the generality of the foregoing, by entering into this Agreement
      Optionee agrees that no member of the Committee shall be liable for any action
      or determination made in good faith with respect to the Plan or any award
      thereunder or this Agreement. In the event that there is any inconsistency
      between the provisions of this Agreement and of the Plan, the provisions of
      the
      Plan shall govern.

    

    7. Notices.
      Any
      notice to be given to the Company hereunder shall be in writing and shall be
      addressed to Paul J. Lytle, Corporate Secretary, or at such other address as
      the
      Company may hereafter designate to Optionee by notice as provided in this
      Section 7. Any notice to be given to Optionee hereunder shall be addressed
      to
      Optionee at the address set forth beneath her/his signature hereto, or at such
      other address as Optionee may hereafter designate to the Company by notice
      as
      provided herein. A notice shall be deemed to have been duly given when
      personally delivered or mailed by registered or certified mail to the party
      entitled to receive it. Optionee expressly agrees to notify the Company of
      any
      transfer of the Common Stock or other action reasonably expected to cause any
      Option designated as an Incentive Stock Option to be retroactively classified
      for tax purposes as a Non-Qualified Option.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    8. Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and the successors and assigns of the Company and to the extent consistent
      with
      Section 5 of this Agreement and with the Plan, the heirs and personal
      representatives of Optionee.

    

    9. Governing
      Law.
      This
      Agreement shall be interpreted, construed and administered in accordance with
      the laws of the State of California as they apply to contracts made, delivered
      and performed in the State of California. Any dispute arising hereunder shall
      be
      resolved by binding arbitration before the American Arbitration Association
      under its Commercial Arbitration Rules, before a single arbitrator in Orange
      County, California. The parties will mutually determine the arbitrator from
      a
      list of arbitrators obtained from the American Arbitration Association office
      located in Orange County, California. If the parties are unable to agree on
      the
      arbitrator, the arbitrator will be selected by the American Arbitration
      Association with a preference for selecting a retired federal district judge
      or
      state superior court judge as the arbitrator.

    

    10. Withholding.
      If the
      Optionee takes any action that would cause the Options to be classified as
      nonqualified options for tax purposes, the Optionee will promptly provide the
      necessary tax withholding, if applicable, in the Committee’s view, pursuant to
      Article IV, Section V of the Plan.

    

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

    

    PEREGRINE
      PHARMACEUTICALS, INC.

     

    

    By:________________________________

     

    

    OPTIONEE:

    

    

    __________________________________
      

    Signature

    

    Name:____________________________

    

    Social
      Security Number:

    

    _________________________________
      

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    SCHEDULE
      1 TO INCENTIVE STOCK OPTION AGREEMENT

    PURSUANT
      TO PEREGRINE PHARMACEUTICALS, INC., INC.

    2005
      STOCK INCENTIVE PLAN

    

    (This
      Schedule 1 shall be incorporated by reference and become a part of the Incentive
      Stock Option Agreement between the Company and the Optionee.)

    

    I. INCENTIVE
      STOCK OPTIONS:
      Incentive stock options do not result in compensation income on exercise by
      the
      Optionee and result in capital gain or loss when the stock is sold. Incentive
      stock options may only be issued to employees of the Company. There are a number
      of other legal requirements that the Company and the Optionee must satisfy
      in
      order for options to be classified as incentive stock options. Some of the
      rules
      affecting incentive stock options are (a) the stock received on the exercise
      of
      an incentive stock option must be held for two years from the date of grant
      of
      the option and one year from the date of exercise of the option, (b) no more
      than $100,000 in options may first become exercisable in any one year, and
      (c)
      the exercise of the incentive stock option may generate an item of tax
      preference for purposes of calculating the alternative minimum tax liability
      of
      the Optionee. Violation of any of those requirements by the Company or the
      Optionee can result in the Option being treated as a Non-qualified stock
      option.

    

    Date
      of
      Grant:      

    

    Earliest
      Exercise Date:     

    

    Exercise
      Price:      

    

    Number
      of
      Shares:      

    

    Vesting
      Schedule: 

      

    
      	
              Vesting
                Date

            	
              Options
                Vested

            
	 	 
	 	 
	 	 
	 	 

    

    Expiration
      Date:       

    

    Governing
      Law; Resolution of Disputes.
      This
      Agreement has been made, executed and delivered in, and the interpretation,
      performance and enforcement hereof shall be governed by and construed under
      the
      laws of the State of California. Any dispute arising hereunder shall be resolved
      by binding arbitration before the American Arbitration Association under its
      Commercial Arbitration Rules, before a single arbitrator in Orange County,
      California. The parties will mutually determine the arbitrator from a list
      of
      arbitrators obtained from the American Arbitration Association office located
      in
      Orange County, California. If the parties are unable to agree on the arbitrator,
      the arbitrator will be selected by the American Arbitration Association with
      a
      preference for selecting a retired federal district judge or state superior
      court judge as the arbitrator.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    I
      have
      read the Peregrine Pharmaceuticals, Inc. 2005 Stock Incentive Plan, the terms
      of
      which are incorporated herein. As Optionee, I hereby acknowledge that as of
      the
      date of the Options referenced above, it sets forth the entire understanding
      between the undersigned Optionee and the Company and its Affiliates regarding
      the Options and supersedes all prior oral and written agreements on that subject
      with the exception of (i) the options and any other stock awards previously
      granted and delivered to the undersigned under stock award plans of the Company,
      and (ii) the following agreements only:

    

    NONE _______

    (Initial)

    

    OTHER______________________________________________________________________

     

    IN
      WITNESS WHEREOF, this Incentive Stock Option Agreement pursuant to the Peregrine
      Pharmaceuticals, Inc. 2005 Stock Incentive Plan has been delivered by the
      parties hereto.

    

    
      	Date:
              ______________	
              “Optionee”

            

    

     

    _________________________________

    Name _________________________________      

    

    Address
      _______________________________

    ______________________________________

    _________________________________

     

    Social
      Security Number ____________________

    

    The
      Company hereby agrees to

    all
      the
      terms of the Agreement.

    

    Peregrine
      Pharmaceuticals, Inc.

    

    

    By:_____________________________________   

    Name:
      

    Title:
      

    

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      2

    

    PEREGRINE
      PHARMACEUTICALS, INC.

    EXERCISE
      NOTICE

    

    Peregrine
      Pharmaceuticals, Inc.

    14272
      Franklin Avenue

    Tustin,
      CA 92780

     

    

    
      	
              1.

            	
              Exercise
                of Option.

            

    

    

    Effective
      as of today, ______________,
      _________________
      the
      undersigned (“Optionee”) hereby elects to exercise Optionee's Options to
      purchase _______
      shares
      of Common Stock (the “Shares”) of Peregrine Pharmaceuticals, Inc. (the
“Company”) under and pursuant to the Incentive Stock Option Agreement dated as
      of ___________________
      (the
“Option Agreement”) between the Company and Optionee pursuant to the Option
      Agreement.

    

    
      	
              2.

            	
              Rights
                as Shareholder

            

    

    

    (i) Until
      the
      certificate evidencing the Shares is issued (as evidenced by the appropriate
      entry on the stock ownership register of the Company or of a duly authorized
      transfer agent of the Company), no right to receive distributions or any other
      rights as a shareholder shall exist with respect to the Shares, notwithstanding
      the exercise of the Option. The Company shall issue (or cause to be issued)
      such
      certificate promptly upon exercise of the Option.

    

    (ii) Upon
      issuance of the certificate, Optionee shall enjoy rights as a shareholder of
      Common Stock until such time as Optionee disposes of the Shares or the
      Company.

    

    
      	
              3.

            	
              Governing
                Law; Severability.
                This Notice shall be governed by and construed in accordance with
                the laws
                of the State of California excluding that body of law pertaining
                to
                conflicts of law. Should any provision of this Notice be determined
                by a
                court of law to be illegal or unenforceable, the other provisions
                shall
                nevertheless remain effective and shall remain enforceable. Any dispute
                arising hereunder shall be resolved by binding arbitration before
                the
                American Arbitration Association under its Commercial Arbitration
                Rules,
                before a single arbitrator in Orange County. The parties will mutually
                determine the arbitrator from a list of arbitrators obtained from
                the
                American Arbitration Association office located in Orange County.
                If the
                parties are unable to agree on the arbitrator, the arbitrator will
                be
                selected by the American Arbitration Association with a preference
                for
                selecting a retired federal district judge or state superior court
                judge
                as the arbitrator.

            

    

    

    
      	
              4.

            	
              Notices.
                Any notice required or permitted hereunder shall be given in writing
                and
                shall be deemed effectively given upon personal delivery or upon
                deposit
                in the United States mail by certified mail, with postage and fees
                prepaid, addressed to the other party at its address as shown below
                beneath its signature, or to such other address as such party may
                designate in writing from time to time to the other
                party.

            

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
              5.

            	
              Further
                Instruments.
                The parties agree to execute such further instruments and to take
                such
                further action as may be reasonably necessary to carry out the purposes
                and intent of this Notice.

            

    

    

    
      	
              6.

            	
              Delivery
                of Payment.
                Optionee herewith delivers to the Company the full purchase price
                for the
                Shares as set forth in paragraph 1 of the Option
                Agreement.

            

    

    

    
      	
              7.

            	
              Entire
                Agreement.
                The Option Agreement is incorporated herein by reference. This Notice,
                the
                Option Agreement and the Plan constitute the entire agreement of
                the
                parties and supersede in their entirety all prior undertakings and
                agreements of the Company and Optionee with respect to the subject
                matter
                hereof. In the event of a conflict or discrepancy between the terms
                of
                this Agreement and the Peregrine Pharmaceuticals, Inc. 2005 Stock
                Incentive Plan (the “Plan”), the terms of the Plan shall
                control.

            

    

    

    
      	
              8.

            	
              Representatives
                of Optionee.
                Optionee acknowledges that Optionee has received, read and understood
                the
                Option Agreement and this Notice and agrees to abide by and be bound
                by
                the terms and conditions of the Option Agreement and this
                Notice.

            

    

    

    
      	Submitted
              by:	
              Accepted
                by:

            

    

     

    
      	OPTIONEE:	
              PEREGRINE
                PHARMACEUTICALS, INC.

            

    

    

    
      	By:__________________________________	
              By:__________________________________

            

    

    Name:________________________________
      

    Address:______________________________
      

    _____________________________________
      

    

     

    7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00092-of-00352.parquet"}]]