Document:

Restoration Plan

 Exhibit 10.23 
  
 CARAUSTAR INDUSTRIES, INC. 
  
 RESTORATION PLAN 
  
 This Plan, established by Caraustar Industries, Inc., is effective this 22nd day of November, 1996 
  
 ARTICLE 1 - PURPOSE OF PLAN 
  

			
	Section 1.1	 	Purpose: The purpose of this Plan is to provide supplemental retirement benefits to certain named Caraustar Industries, Inc. Executives. The benefits to be provided under this Plan are
intended to supplement other retirement benefits provided by the Company through plans qualified under Section 401(a) of the Internal Revenue Code of 1986, unqualified plans, and the federal Social Security system of the United
States.
		
	Section 1.2	 	Design: The Plan is designed to provide supplemental retirement benefits as described in Section 3.3.
	  
 ARTICLE 2 - DEFINITIONS
  

	Section 2.1	 	Average Annual Compensation: The average of the Executive’s annual Compensation earned after December 31, 1993, over the five (5) consecutive calendar years during the ten (10)
most recent calendar years (including the calendar year in which his Payment Event occurs) which produces the highest average, or, if the Executive has less than five (5) consecutive years of service after December 31, 1993, the average of his
annual Compensation for his full calendar years of Service after December 31, 1993.
		
	Section 2.2	 	Beneficiary: The Spouse of the Executive as of his Payment Event, or, if the Spouse predeceases the Executive, the person designated by the Executive to be the alternate beneficiary in
such event. See Section 3.3(a).
		
	Section 2.3	 	Board: The Board of Directors of Caraustar Industries, Inc.
		
	Section 2.4	 	Calculation Date: With respect to any Executive, the date on which his Payment Event occurs.

			
		
	Section 2.5	 	Change-In-Control: The purchase or other acquisition by any person, entity or group of persons, within the meaning of the Securities Exchange Act of 1934 (“Act”), of 40
percent or more of either the outstanding shares of common stock or the combined voting power of the Company, or the approval by the stockholders of the Company of a reorganization, merger, or consolidation, in each case, with respect to which
persons who were stockholders of the Company immediately prior to such reorganization, merger or consolidation do not, immediately thereafter, own more than 50 percent of the combined voting power entitled to vote generally in the election of the
Board of Directors of the reorganized, merged or consolidated the Company’s then outstanding securities, or a liquidation or dissolution of the Company or of the sale of all or substantially all of the Company’s assets.
		
	Section 2.6	 	Code: The Internal Revenue Code of 1986, as amended, or as it may be amended from time to time.
		
	Section 2.7	 	Company: Caraustar Industries, Inc.
		
	Section 2.8	 	Compensation: Wages as defined in Section 3401 (a) of the Code for the purposes of income tax withholding at the source but determined without regard to any rules that limit the
remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in Section 3401(a)(2)), reduced by all of the following items (even if includible in gross
income): reimbursements or other expense allowances, fringe benefits (cash and noncash), moving expenses, deferred compensation, and welfare benefits. Compensation shall also include any amount which is contributed by the Company pursuant to a
salary reduction agreement and which is not includible in the Executive’s gross income under Sections 125, 402(a)(8), 402(h), or 403(b) of the Code.
		
	Section 2.9	 	Compensation and Employee Benefits Committee: The Compensation and Employee Benefits Committee as established by the Board.
		
	Section 2.10	 	Covered Compensation: For the Executive, the amount determined for the calendar year in which he attains or will attain his Social Security Retirement Age under the Rounded Table in
Internal Revenue Service Revenue Ruling 93-20 (or any successor table as updated and issued by the Internal Revenue Service from time to time) as in effect for the calendar year in which his employment with the Employer terminates. No increase in
Covered Compensation shall decrease the Executive’s amount of benefits under this Plan after his Calculation Date.
		
	Section 2.11	 	Employee: A participant of the “Caraustar Industries, Inc. Retirement Plan.”

  

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	Section 2.12	 	Executive: The participant in the Plan as appointed by the Chief Executive Officer, upon receiving approval from the Compensation and Employee Benefits Committee.
		
	Section 2.13	 	Final Average Compensation: The average annual Compensation for the three (3) consecutive calendar years in which the Executive was employed by the Company immediately preceding his
Payment Event excluding the calendar year in which his Payment Event occurs, or, if the Executive’s entire period of service with the Employer is less than three (3) consecutive calendar years, the average of his annual Compensation for his
full calendar years of Service. For purposes of this Section, Compensation for any year in excess of the taxable wage base in effect at the beginning of such year shall not be taken into account.
		
	Section 2.14	 	Fifty Percent (50%) Joint and Survivor Annuity: An annuity which is payable monthly for the life of the Executive, with a survivor annuity for the life of his Spouse which is Fifty
(50%) Percent of the amount of the annuity payable during the joint lives of the Executive and his Spouse.
		
	Section 2.15	 	Hour of Service: Each hour for which an Employee is paid, or entitled to payment, for the performance of duties for the Company as an Employee during any period of
employment.
		
	Section 2.16	 	Normal Retirement Age: Age sixty-five (65).
		
	Section 2.17	 	Normal Retirement Date: The first day of the month coincident with or next following the date the Executive attains his Normal Retirement Age.
		
	Section 2.18	 	Payment Event: With respect to any Executive, the first to occur of his Retirement Date, death, the date he suffers a Total and Permanent Disability, or a
Change-in-Control.
		
	Section 2.19	 	Plan: The “Caraustar Industries, Inc. Restoration Plan”, as set forth herein or in any amendment hereto.
		
	Section 2.20	 	Plan Administrator: The individual or committee appointed pursuant to Article VII of the Retirement Plan, who shall have the same powers and those duties with respect to the Plan as
those described in Article VII of the Retirement Plan. The Plan Administrator is the named fiduciary for purposes of the Employee Retirement Income Security Act of 1974, as amended.
		
	Section 2.21	 	Plan Year: The calendar year.

  

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	Section 2.22	 	Retirement Date: The first day of the month coincident with or next following the date the Executive attains his Normal Retirement Age and actually terminates employment
with the Company.
		
	Section 2.23	 	Retirement Plan: The Caraustar Industries, Inc. Retirement Plan for the Employees of Caraustar Industries, Inc., as amended from time to time.
		
	Section 2.24	 	Service: An Employee shall be credited with one (1) year of Service for each Plan Year during which he completes one thousand (1,000) or more Hours of Service with the
Company. An Employee shall also be credited with Service solely for purposes of determining his Accrued Benefit under Section 3.1 (but not for purposes of vesting under Section 3.4) for employment with an employer other than the Company provided the
Chief Executive Officer makes a qualifying recommendation and such recommendation is endorsed by the Board’s Compensation and Employee Benefits Committee.
		
	Section 2.25	 	Spouse: The individual to whom the Executive is legally married as of the earlier of the Executive reaching his Retirement Date, suffering a Total and Permanent Disability
(as defined in Section 1.66 of the Retirement Plan and in accordance with a determination made by the SSA), death, or upon the Change-In-Control of the Company.
		
	Section 2.26	 	Total and Permanent Disability: The event shall have the meaning specified in Section 1.66 of the Retirement Plan, in accordance with a determination made by the Social
Security Administration.
	
	ARTICLE 3 - BENEFITS  

		
	Section 3.1	 	Accrued Benefit: The Accrued Benefit is an annual amount, calculated as of the Executive’s Calculation Date, equal to the product of (A) times (B) minus (C)
where:
			
	 	 	(A)	 	is 1.35% of Average Annual Compensation times years of Service projected to Normal Retirement Date, offset by .65% of Final Average Compensation up to Covered Compensation times years of
Service projected to Normal Retirement Date, and
			
	 	 	(B)	 	is a fraction where the numerator is years of Service as of the Calculation Date and the denominator is the greater of years of Service as of the Calculation Date or years of Service
projected to Normal Retirement Date, and

  

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	 	 	(C)	  	is the Accrued Benefit under the Retirement Plan as of the Calculation Date, the accrued benefit under any Company paid deferred Compensation arrangements as of the Calculation Date,
and/or any other accrued benefit payable through another employer’s plan as of the Calculation Date by which the Executive has obtained additional years of Service.
		
	Section 3.2	 	Forfeiture of Benefit: If the Executive engages in any acts or omissions constituting dishonesty, intentional breach of fiduciary obligation or intentional wrongdoing, in each
case that results in substantial harm to the business or property of the Company, he shall forfeit and be ineligible to receive any benefits under this Plan, and any benefits paid to such Executive (or Beneficiary) can be recovered by the Company.
The recovery of any benefits paid to such Executive shall not preclude the Company from taking any other actions against the Executive.
		
	Section 3.3	 	Benefit Payments:
			
	 	 	(a)	  	If a Payment Event occurs with respect to an executive while an Executive is employed with the Company, and if such Executive’s benefits hereunder are vested, then the Executive
(or his Beneficiary) will be entitled to receive a Fifty Percent (50%) Joint and Survivor Annuity, paid in monthly payments, with the initial annual amount being 90% of the Executive’s Accrued Benefit, and with a 10-year guaranteed period
(meaning that if the Executive dies less than 10 years after the commencement of the annuity payments, the Executive’s spouse or alternate Beneficiary will nevertheless receive the initial annual amount of the annuity [ninety percent (90%) of
the Accrued Benefit]), as follows:
				
	 	 	 	  	(1)	  	Retirement Payment. In the event that benefits become payable due to the Executive’s retirement at or after Normal Retirement Age, the benefit will be payable as of the
Executive’s Retirement Date.
				
	 	 	 	  	(2)	  	Disability Payment. In the event that benefits become payable due to a Total and Permanent Disability, the benefit will be payable as of the first day of the month coincident with or
next following the later of the date the Executive ceases to perform services for the Company, or the date Worker’s Compensation and/or Long-Term Disability benefits cease.
				
	 	 	 	  	(3)	  	Death Payment. In the event that benefits become payable due to the Executive’s death, the benefit specified above will be reduced for early commencement by the percentage
specified in Section 3.4 of the Retirement Plan and the benefit will be payable as of the first day of the month coincident with or next following the later of the Executive’s death or the date on which the Executive would have reached age
55.

  

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	 	 	(b)	 	 	  	Change-In-Control. Except as provided in Section 3.2, in the event that there is a Change-In-Control of the Company, the Executive shall become fully vested and receive an
immediate lump-sum distribution, and the Plan shall terminate. The lump sum distribution shall be the Actuarial Equivalent of a single life annuity beginning at age 65 in the amount of the Executive’s Accrued Benefit, using the Actuarial
Equivalent definition for lump sum payments in Section 1.2 of the Retirement Plan.
		
	Section 3.4	 	Vesting of Benefits: An Executive’s benefits under this Plan are not vested until the earlier of the date the Executive completes 10 years of Service or the occurrence
of a Change-in-Control. If an Executive’s employment with the Company terminates, for any reason, before his benefits have vested hereunder, the Executive will not be entitled to any benefits hereunder.
		
	Section 3.5	 	Time of Benefit Payments: Payment of Benefits under the Plan shall commence when such benefits become payable pursuant to Section 3.3, or as soon thereafter as
administratively feasible.
		
	Section 3.6	 	Mental or Legal Incompetence: The Company, in its sole discretion, may make distribution to the guardian or other legal representative of the Executive or Beneficiary, if
the Executive or Beneficiary is determined by a court of proper jurisdiction to be mentally or legally incompetent to receive such benefit distribution. Any such distribution shall be in full and complete satisfaction of any and all claims
whatsoever by or on behalf of such Executive under this Plan against the Company, the Plan Administrator, any member of the Board, other Executives or officers of the Company, other employees, shareholders and any other person acting on behalf of
them.
		
	Section 3.7	 	Benefits Unfunded: The benefits payable under the Plan shall be paid by the Company and shall not be funded.
		
	 	 	 ARTICLE 4 - MISCELLANEOUS
  

	Section 4.1	 	Amendment or Termination: The Chief Executive Officer, upon receiving approval from the Compensation and Employee Benefits Committee, shall have the right to amend this
Plan from time to time and to terminate this Plan at any time; provided, however, no such action shall reduce the Accrued Benefit, as of the date of such action, of any Executive whose benefits hereunder are vested, or defer the time for paying such
benefits under Section 3.3.

  

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	Section 4.2	 	Company Liability: Nothing in this Plan shall be construed to limit in any way the right of the Company to terminate the employment of the Executive at any time; or to be evidence of
any agreement or understanding, express or implied, that the Company or any affiliate company will employ the Executive in any particular position or at any particular rate or remuneration or for any particular period of time.
		
	Section 4.3	 	Indemnification: The Company shall indemnify and hold harmless the Administrator, any member thereof and any Employee who may act on behalf of the Company in the administration of this
Plan from and against any liability, loss, cost or expense (including reasonable attorneys’ fees) incurred at any time as a result of or in connection with any claims, demands, actions or causes of action of the Executive, any person claiming
through or under any of them, or any other person, party or authority claiming to have an interest in this Plan or standing to act for any persons or groups having an interest in this Plan, for or on account of, any of the acts or omissions (or
alleged acts or omissions) of the Administrator, any member thereof or any such Employee, except to the extent resulting from such person’s willful misconduct.
		
	Section 4.4	 	Tax Effects: The Company makes no warranties or representations with regard to the tax effects or results of this Plan. The Executive participating under this Plan shall be deemed to
have relied upon his own tax advisors with regard to such effects.
		
	Section 4.5	 	No Assignment: Binding Effect: Neither the Executive nor Beneficiary shall have the right to alienate, assign, commute or otherwise encumber his benefit for any purpose whatsoever, and
any attempt to do so shall be disregarded completely as null and void. The provisions of this Plan shall be binding on the Executive and on each person who claims a benefit under him and on the Company.
		
	Section 4.6	 	Self-interest: The Executive shall not have any right to vote or decide upon any matter related directly or indirectly to him or any right to claim any benefit under this
Plan.
		
	Section 4.7	 	Construction: This Plan shall be construed in accordance with the laws of the State of Georgia. The headings and subheadings in this Plan have been inserted for convenience of
reference only and are to be ignored in construction of the provisions of this Plan. In the construction of this Plan, the masculine shall include the feminine and the singular the plural wherever appropriate.

  
 [Cont’d on
Page 8] 
  

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 IN WITNESS WHEREOF, the Company has caused its duly authorized officers to execute and seal this Plan as of this 22
day of November, 1996. 
  
 PLAN SPONSOR: 
  
 CARAUSTAR INDUSTRIES, INC. 
  

			
	By:	 	 /s/ Thomas V. Brown

	Title:	 	President & CEO

  

			
	(CORPORATE SEAL)
		
	Attest:	 	 /s/ Marinan R. Mays

	Title:	 	Corporate Secretary

  

 8 

 FIRST AMENDMENT TO THE CARAUSTAR INDUSTRIES, INC. 
  
 RESTORATION PLAN 
  
 Pursuant to Article 2 of the Caraustar Industries, Inc. Restoration Plan,
(the “Plan”) Caraustar Industries, Inc. does hereby amend the Plan in the following respects effective February 7, 2002: 
  
 The following new sections are added and numbered as appropriately to follow the definition of Normal Retirement Age. 
  
 2.16(a) Early Retirement Age. Age 62 with thirty (30)
years credited service recognized by the Plan. 
  
 2.16(b) Early Reduction Factors. Early Retirement Factors will be the same reduction factors as defined in the Caraustar Industries, Inc. Retirement Plan. 
  
 IN WITNESS WHEREOF, Caraustar Industries, Inc. has caused this Amendment to be executed by its officers,
this 15th day of February, 2002. 
  

			
	CARAUSTAR INDUSTRIES, INC.
		
	By:	 	 /s/ Thomas V. Brown

	 	 	Thomas V. Brown
		
	Title:	 	President & Chief Executive Officer

  

	
	 ATTEST:

	
	 /s/ Marinan R. Mays

	 Marinan R. Mays

 Title: Corporate SecretaryForm Notice of Grant and Stock Option Agreement

 Exhibit 10.11 
  
 SEATTLE GENETICS, INC. 
  
 1998 STOCK OPTION PLAN 
  
 NOTICE OF STOCK OPTION GRANT 
  
 «Optionee» 
 «Title» 
  
 You have been granted an option to purchase Common Stock of Seattle Genetics,
Inc. (the “Company”) as follows: 
  

			
	Board Approval Date:	  	«Date_of_Grant»
		
	 Date of Grant (Later of Board Approval Date or
 Commencement of
 Employment/Consulting):
	  	«Date_of_Grant»
		
	Exercise Price Per Share:	  	$«Exercise_Price»
		
	Total Number of Shares Granted:	  	«Number_of_Shares»
		
	Total Exercise Price:	  	«Total_Exercise_Price_»
		
	Type of Option:	  	«Type_of_Option»
		
	Expiration Date:	  	«Expiration_Date»
		
	Vesting Commencement Date:	  	«Vesting_Commencement_Date»
		
	Vesting/Exercise Schedule:	  	«Vesting_Schedule»
		
	Termination Period:	  	«Termination_Period»

			
	Transferability:	  	This Option may not be transferred.

  
 By your signature and
the signature of the Company’s representative below, you and the Company agree that this option is granted under and governed by the terms and conditions of the Seattle Genetics, Inc. 1998 Stock Option Plan and the Stock Option Agreement, both
of which are attached and made a part of this document. 
  
 In
addition, you agree and acknowledge that your rights to any Shares underlying the Option will be earned only as you provide services to the Company over time, that the grant of the Option is not as consideration for services you rendered to the
Company prior to your Vesting Commencement Date, and that nothing in this Notice or the attached documents confers upon you any right to continue your employment or consulting relationship with the Company for any period of time, nor does it
interfere in any way with your right or the Company’s right to terminate that relationship at any time, for any reason, with or without cause. 
  

							
	 	 	 	 	         SEATTLE GENETICS, INC.

				
	  

	 	 	 	By:  	 	  

	 «Optionee»
	 	 	 	Name:  	 	 
	 	 	 	 	Title:  	 	 
	 «SSN»

	 	 	 	 	 	 
	 Social Security Number
	 	 	 	 	 	 

  

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 SEATTLE GENETICS, INC. 
  
 1998 STOCK OPTION PLAN 
  
 STOCK OPTION AGREEMENT 
  
 1.    Grant of Option.    Seattle Genetics, Inc., a Delaware corporation (the
“Company”), hereby grants to «Optionee» (“Optionee”), an option (the “Option”) to purchase the total number of shares of Common Stock (the “Shares”) set forth in the
Notice of Stock Option Grant (the “Notice”), at the exercise price per Share set forth in the Notice (the “Exercise Price”) subject to the terms, definitions and provisions of the Seattle Genetics, Inc. 1998 Stock
Option Plan (the “Plan”) adopted by the Company, which is incorporated in this Agreement by reference. Unless otherwise defined in this Agreement, the terms used in this Agreement shall have the meanings defined in the Plan. This
Stock Option Agreement shall be deemed executed by the Company and Optionee upon execution by such parties of the Notice. 
  
 2.    Designation of Option.    This Option is intended to be an Incentive Stock Option as defined
in Section 422 of the Code only to the extent so designated in the Notice, and to the extent it is not so designated or to the extent the Option does not qualify as an Incentive Stock Option, it is intended to be a Nonstatutory Stock Option.

  
 Notwithstanding the above, if designated as an Incentive Stock
Option, in the event that the Shares subject to this Option (and all other Incentive Stock Options granted to Optionee by the Company or any Parent or Subsidiary, including under other plans of the Company) that first become exercisable in any
calendar year have an aggregate fair market value (determined for each Share as of the date of grant of the option covering such Share) in excess of $100,000, the Shares in excess of $100,000 shall be treated as subject to a Nonstatutory Stock
Option, in accordance with Section 5(c) of the Plan. 
  
 3.    Exercise of Option.    This Option shall be exercisable during its term in accordance with the Vesting/Exercise Schedule set out in the Notice and with the provisions of Section 10
of the Plan as follows: 
  
 (a)    Right to Exercise. 
  
 (i)    This Option may not be exercised for a fraction of a share. 
  
 (ii)    In the event of Optionee’s death, disability or other termination of employment, the exercisability of the Option is
governed by Section 5 below, subject to the limitations contained in this Section 3. 
  
 (iii)    In no event may this Option be exercised after the Expiration Date of the Option as set forth in the Notice. 

 (b)    Method of Exercise. 
  
 (i)    This Option shall be exercisable by delivering to
the Company a written notice of exercise (in the form attached as Exhibit A or in any other form of notice approved by the Plan Administrator) which shall state Optionee’s election to exercise the Option, the number of Shares in respect
of which the Option is being exercised, and such other representations and agreements as to the holder’s investment intent with respect to such Shares as may be required by the Company pursuant to the provisions of the Plan. Such written notice
shall be signed by Optionee and shall be delivered to the Company by such means as are determined by the Plan Administrator in its discretion to constitute adequate delivery. The written notice shall be accompanied by payment of the Exercise Price.
This Option shall be deemed to be exercised upon receipt by the Company of such written notice accompanied by the Exercise Price. 
  
 (ii)    As a condition to the exercise of this Option and as further set forth in Section 12 of the Plan, Optionee agrees to make
adequate provision for federal, state or other tax withholding obligations, if any, which arise upon the vesting or exercise of the Option, or disposition of Shares, whether by withholding, direct payment to the Company, or otherwise. 
  
 (iii)    The Company is not obligated, and will have no
liability for failure, to issue or deliver any Shares upon exercise of the Option unless such issuance or delivery would comply with the Applicable Laws, with such compliance determined by the Company in consultation with its legal counsel. This
Option may not be exercised until such time as the Plan has been approved by the stockholders of the Company, or if the issuance of such Shares upon such exercise or the method of payment of consideration for such shares would constitute a violation
of any applicable federal or state securities or other law or regulation, including any rule under Part 221 of Title 12 of the Code of Federal Regulations as promulgated by the Federal Reserve Board. As a condition to the exercise of this Option,
the Company may require Optionee to make any representation and warranty to the Company as may be required by the Applicable Laws. Assuming such compliance, for income tax purposes the Shares shall be considered transferred to Optionee on the date
on which the Option is exercised with respect to such Shares. 
  
 4.    Method of Payment.    Payment of the Exercise Price shall be by any of the following, or a combination of the following, at the election of Optionee: 
  
 (a)    cash or check; or 
  
 (b)    following the date, if any, upon which the Common
Stock is a Listed Security, delivery of a properly executed exercise notice together with irrevocable instructions to a broker approved by the Company to deliver promptly to the Company the amount of sale or loan proceeds required to pay the
exercise price. 
  
 5.    Termination of
Relationship.    Following the date of termination of Optionee’s Continuous Service Status for any reason (the “Termination Date”), Optionee may exercise the Option only as set forth in the Notice
and this Section 5. To the extent that Optionee is not 
  

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 entitled to exercise this Option as of the Termination Date, or if Optionee does not exercise this Option within the
Termination Period set forth in the Notice or the termination periods set forth below, the Option shall terminate in its entirety. In no event, may any Option be exercised after the Expiration Date of the Option as set forth in the Notice.

  
 (a)    Termination.    In the event of termination of Optionee’s Continuous Service Status other than as a result of Optionee’s disability or death, Optionee may, to the extent
otherwise so entitled at the date of such termination (the “Termination Date”), exercise this Option during the Termination Period set forth in the Notice. 
  
 (b)    Other Terminations.    In connection with any termination other
than a termination covered by Section 5(a), Optionee may exercise the Option only as described below: 
  
 (i)    Termination upon Disability of Optionee.    In the event of termination of Optionee’s
Continuous Service Status as a result of Optionee’s disability, Optionee may, but only within twelve months from the Termination Date, exercise this Option to the extent Optionee was entitled to exercise it as of such Termination Date.

  
 (ii)    Death of
Optionee.    In the event of the death of Optionee (a) during the term of this Option and while an Employee or Consultant of the Company and having been in Continuous Service Status since the date of grant of the Option,
or (b) within thirty (30) days after Optionee’s Termination Date, the Option may be exercised at any time within six months following the date of death by Optionee’s estate or by a person who acquired the right to exercise the Option by
bequest or inheritance, but only to the extent Optionee was entitled to exercise the Option as of the Termination Date. 
  
 6.    Non-Transferability of Option.    This Option may not be transferred in any manner otherwise
than by will or by the laws of descent or distribution and may be exercised during the lifetime of Optionee only by him or her. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of Optionee.

  
 7.    Tax
Consequences.    Below is a brief summary as of the date of this Option of certain of the federal tax consequences of exercise of this Option and disposition of the Shares under the laws in effect as of the Date of Grant.
THIS SUMMARY IS INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES. 
  
 (a)    Incentive Stock Option. 
  
 (i)    Tax Treatment upon Exercise and Sale of
Shares.    If this Option qualifies as an Incentive Stock Option, there will be no regular federal income tax liability upon the exercise of the Option, although the excess, if any, of the fair market value of the Shares
on the date of exercise over the Exercise Price will be treated as an adjustment to the alternative minimum tax for federal tax purposes and may subject Optionee to the alternative minimum tax in the year of exercise. If Shares issued upon exercise
of an Incentive Stock Option are held for 
  

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 at least one year after exercise and are disposed of at least two years after the Option grant date, any gain realized on
disposition of the Shares will also be treated as long-term capital gain for federal income tax purposes. If Shares issued upon exercise of an Incentive Stock Option are disposed of within such one-year period or within two years after the Option
grant date, any gain realized on such disposition will be treated as compensation income (taxable at ordinary income rates) to the extent of the difference between the Exercise Price and the lesser of (i) the fair market value of the Shares on the
date of exercise, or (ii) the sale price of the Shares. 
  
 (ii)    Notice of Disqualifying Dispositions.    With respect to any Shares issued upon exercise of an Incentive Stock Option, if Optionee sells or otherwise disposes of such Shares on
or before the later of (i) the date two years after the Option grant date, or (ii) the date one year after the date of exercise, Optionee shall immediately notify the Company in writing of such disposition. Optionee acknowledges and agrees that he
or she may be subject to income tax withholding by the Company on the compensation income recognized by Optionee from the early disposition by payment in cash or out of the current earnings paid to Optionee. 
  
 (b)    Nonstatutory Stock
Option.    If this Option does not qualify as an Incentive Stock Option, there may be a regular federal (and state) income tax liability upon the exercise of the Option. Optionee will be treated as having received
compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the fair market value of the Shares on the date of exercise over the Exercise Price. If Optionee is an Employee, the Company will be required to withhold from
Optionee’s compensation or collect from Optionee and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. If Shares issued upon exercise of a Nonstatutory Stock Option are
held for at least one year, any gain realized on disposition of the Shares will be treated as long-term capital gain for federal income tax purposes. 
  
 8.    Effect of Agreement.    Optionee acknowledges receipt of a copy of the Plan and represents
that he or she is familiar with the terms and provisions thereof (and has had an opportunity to consult counsel regarding the Option terms), and hereby accepts this Option and agrees to be bound by its contractual terms as set forth herein and in
the Plan. Optionee hereby agrees to accept as binding, conclusive and final all decisions and interpretations of the Plan Administrator regarding any questions relating to the Option. In the event of a conflict between the terms and provisions of
the Plan and the terms and provisions of the Notice and this Agreement, the Plan terms and provisions shall prevail. The Option, including the Plan, constitutes the entire agreement between Optionee and the Company on the subject matter hereof and
supersedes all proposals, written or oral, and all other communications between the parties relating to such subject matter. 
  

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 EXHIBIT A 
  

NOTICE OF EXERCISE 
  
 To:                Seattle Genetics, Inc. 
 Attn:             Stock Option Administrator 
 Subject:        Notice of Intention to Exercise Stock Option 
  
 This is official notice that the undersigned (“Optionee”) intends to exercise Optionee’s option to
purchase                      shares of Seattle Genetics, Inc. Common Stock, under and pursuant to the Company’s 1998 Stock Option Plan
and the Stock Option Agreement dated                     , as follows: 
  

							
	 	 	Grant Number:	 	  

	 	 
				
	 	 	Date of Purchase:	 	  

	 	 
				
	 	 	Number of Shares:	 	  

	 	 
				
	 	 	Purchase Price:	 	  

	 	 
				
	 	 	 Method of Payment
 of Purchase
Price:
	 	  
  

	 	 

  

							
	 	 	Social Security No.:	 	  

	 	 
			
	 	 	The shares should be issued as follows:	 	 

  

							
	 	 	Name:	 	  

	 	 
				
	 	 	Address:	 	  

	 	 
				
	 	 	 	 	  

	 	 
				
	 	 	 	 	  

	 	 
				
	 	 	Signed:	 	  

	 	 
				
	 	 	Date:	 	  

	 	 

  

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00080-of-00352.parquet"}]]