Second Amended and Restated 2007 Stock Option/Stock Issuance Plan



  
 Exhibit 10.1

 PACIRA, INC. 
 SECOND AMENDED AND RESTATED 
 2007 STOCK
OPTION/STOCK ISSUANCE PLAN1 

ARTICLE ONE 
 GENERAL PROVISIONS 
 I. PURPOSE OF THE PLAN 

This Second Amended and Restated 2007 Stock Option/Stock Issuance Plan is intended to promote the interests of Pacira, Inc., a Delaware
corporation, by providing eligible persons in the Corporation’s employ or service with the opportunity to acquire a proprietary interest, or otherwise increase their proprietary interest, in the Corporation as an incentive for them to continue
in such employ or service. 
 Capitalized terms herein shall have the meanings assigned to such terms in the attached Appendix.

 II. STRUCTURE OF THE PLAN 
 A. The Plan shall be divided into two (2) separate equity programs: 
 (1) the Option Grant Program under which eligible persons may, at the discretion of the Plan Administrator, be granted options to purchase shares of Common Stock, and 

(2) the Stock Issuance Program under which eligible persons may, at the discretion of the Plan Administrator, be issued
shares of Common Stock directly, either through the immediate purchase of such shares or as a bonus for services rendered the Corporation (or any Parent or Subsidiary). 
 B. The provisions of Articles One and Four shall apply to both equity programs under the Plan and shall accordingly govern the interests of all persons under the Plan. 

 
  

	1	 The Plan was amended and restated on April 17, 2008, to (i) increase the number of shares authorized for issuance under the Plan from
7,000,000 to 11,475,500 and (ii) reflect the amended regulations promulgated under Section 25102(o) of the California Securities Law of 1968, as amended. The Plan was further amended and restated on September 2, 2010 to increase the
number of shares authorized for issuance under the Plan from 11,475,500 to 18,600,750. 









  
 III. ADMINISTRATION
OF THE PLAN 
 A. The Plan shall be administered by the Board. However, any or all administrative functions otherwise
exercisable by the Board may be delegated to the Committee. Members of the Committee shall serve for such period of time as the Board may determine and shall be subject to removal by the Board at any time. The Board may also at any time terminate
the functions of the Committee and reassume all powers and authority previously delegated to the Committee. 

  
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 B. The Plan
Administrator shall have full power and authority (subject to the provisions of the Plan) to establish such rules and regulations as it may deem appropriate for proper administration of the Plan and to make such determinations under, and issue such
interpretations of, the Plan and any outstanding options or stock issuances thereunder as it may deem necessary or advisable. Decisions of the Plan Administrator shall be final and binding on all parties who have an interest in the Plan or any
option grant or stock issuance thereunder. 
 IV. ELIGIBILITY 

A. The persons eligible to participate in the Plan are as follows: 

(1) Employees, 
 (2) non-employee members of the Board or the non-employee members of the board of directors of any Parent or Subsidiary, and 

(3) consultants and other independent advisors who provide services to the Corporation (or any Parent or Subsidiary).

 B. The Plan Administrator shall have full authority to determine, (i) with respect to the grants made under the Option
Grant Program, which eligible persons are to receive such grants, the time or times when those grants are to be made, the number of shares to be covered by each such grant, the status of the granted option as either an Incentive Option or a
Non-Statutory Option, the time or times when each option is to become exercisable, the vesting schedule (if any) applicable to the option shares and the maximum term for which the option is to remain outstanding, and (ii) with respect to stock
issuances made under the Stock Issuance Program, which eligible persons are to receive such issuances, the time or times when those issuances are to be made, the number of shares to be issued to each Participant, the vesting schedule (if any)
applicable to the issued shares and the consideration to be paid by the Participant for such shares. 
 C. The Plan
Administrator shall have the absolute discretion either to grant options in accordance with the Option Grant Program or to effect stock issuances in accordance with the Stock Issuance Program. 

V. STOCK SUBJECT TO THE PLAN 
 A. The stock issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock. The maximum number of shares of Common Stock which may be issued over the term of the Plan shall
not exceed Eleven Million Four Hundred Seventy Thousand (18,600,750)2 shares. 
  

	2	 Increased from
(i) 7,000,000 shares to 11,475,500 shares on April 17, 2008 and (ii) 11,475,500 shares to 18,600,750 shares on September 2, 2010. 



  
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 B. Shares of Common
Stock subject to outstanding options shall be available for subsequent issuance under the Plan to the extent (i) the options expire or terminate for any reason prior to exercise in full or (ii) the options are cancelled in accordance with
the cancellation-regrant provisions of Article Two. Unvested shares issued under the Plan and subsequently repurchased by the Corporation, at a price per share not greater than the option exercise or direct issue price paid per share, pursuant to
the Corporation’s repurchase rights under the Plan shall be added back to the number of shares of Common Stock reserved for issuance under the Plan and shall accordingly be available for reissuance through one or more subsequent option grants
or direct stock issuances under the Plan. 
 C. Should any change be made to the Common Stock by reason of any stock split,
reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of consideration,
appropriate adjustments shall be made to (i) the maximum number and/or class of securities issuable under the Plan and (ii) the number and/or class of securities and the exercise price per share in effect under each outstanding option in
order to prevent the dilution or enlargement of benefits thereunder. The adjustments determined by the Plan Administrator shall be final, binding and conclusive. In no event shall any such adjustments be made in connection with the conversion of one
or more outstanding shares of the Corporation’s preferred stock into shares of Common Stock. 

  
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 ARTICLE TWO

 OPTION GRANT PROGRAM 
 I. OPTION TERMS 
 Each option shall be evidenced by one or more documents in
the form approved by the Plan Administrator; provided, however, that each such document shall comply with the terms specified below. Each document evidencing an Incentive Option shall, in addition, be subject to the provisions of the
Plan applicable to such options. 
 A. Exercise Price. 

(i) The exercise price per share shall be fixed by the Plan Administrator, but shall not be less than one hundred percent (100%) of
the Fair Market Value per share of Common Stock on the option grant date. 
 (ii) The exercise price shall become immediately
due upon exercise of the option and shall, subject to the provisions of Section I of Article Four and the documents evidencing the option, be payable in cash or check made payable to the Corporation. Should the Common Stock be registered under
Section 12 of the 1934 Act at the time the option is exercised, then the exercise price may also be paid as follows: 
 (1) in shares of Common Stock held for the requisite period necessary to avoid a charge to the Corporation’s earnings for financial reporting purposes and valued at Fair Market Value on the Exercise
Date, or 
 (2) to the extent the option is exercised for vested shares, pursuant to a program developed under
Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of the shares, results in the receipt of cash (or check) by the Corporation. 
 Except to the extent such sale and remittance procedure is utilized, payment of the exercise price for the purchased shares must be made on the Exercise Date. 

B. Exercise and Term of Options. Each option shall be exercisable at such time or times, during such period and for such
number of shares as shall be determined by the Plan Administrator and set forth in the documents evidencing the option grant. However, no option shall have a term in excess of ten (10) years measured from the option grant date. 

C. Effect of Termination of Service. 
 (i) The following provisions shall govern the exercise of any options held by the Optionee at the time of cessation of Service or death: 

(1) Should the Optionee cease to remain in Service for any reason other than death, Disability or Misconduct, then the
Optionee shall have a period of three (3) months following the date of such cessation of Service during which to exercise each outstanding option held by such Optionee. 

  
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 (2)
Should Optionee’s Service terminate by reason of Disability, then the Optionee shall have a period of twelve (12) months following the date of such cessation of Service during which to exercise each outstanding option held by such
Optionee. 
 (3) If the Optionee dies while holding an outstanding option, then the personal representative of
his or her estate or the person or persons to whom the option is transferred pursuant to the Optionee’s will or the laws of inheritance or the Optionee’s designated beneficiary or beneficiaries of that option shall have a twelve (12)-month
period following the date of the Optionee’s death to exercise such option. 
 (4) Under no circumstances,
however, shall any such option be exercisable after the specified expiration of the option term. 
 (5) During
the applicable post-Service exercise period, the option may not be exercised in the aggregate for more than the number of vested shares for which the option is exercisable on the date of the Optionee’s cessation of Service. No additional shares
shall vest under the option following the Optionee’s cessation of Service, except to the extent (if any) specifically authorized by the Plan Administrator in its sole discretion pursuant to an express written agreement with Optionee. Upon the
expiration of the applicable exercise period or (if earlier) upon the expiration of the option term, the option shall terminate and cease to be outstanding for any vested shares for which the option has not been exercised. 

(ii) The Plan Administrator shall have the discretion, exercisable either at the time an option is granted or at any time while the
option remains outstanding, to: 
 (1) extend the period of time for which the option is to remain exercisable
following Optionee’s cessation of Service or death from the limited period otherwise in effect for that option to such greater period of time as the Plan Administrator shall deem appropriate, but in no event beyond the expiration of the option
term, and/or 
 (2) permit the option to be exercised, during the applicable post-Service exercise period, not
only with respect to the number of vested shares of Common Stock for which such option is exercisable at the time of the Optionee’s cessation of Service but also with respect to one or more additional installments in which the Optionee would
have vested under the option had the Optionee continued in Service. 

  
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 D. Stockholder
Rights. The holder of an option shall have no stockholder rights with respect to the shares subject to the option until such person shall have exercised the option, paid the exercise price and become the recordholder of the purchased shares.

 E. Unvested Shares. The Plan Administrator shall have the discretion to grant options which are exercisable for
unvested shares of Common Stock. Should the Optionee cease Service while holding such unvested shares, the Corporation shall have the right to repurchase any or all of those unvested shares at a price per share equal to the lower of (i) the
exercise price paid per share or (ii) the Fair Market Value per share of Common Stock at the time of Optionee’s cessation of Service; provided, however that the repurchase at Fair Market Value shall terminate upon the effective date of the
initial public offering of the Common Stock of the Corporation. The terms upon which such repurchase right shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares) shall be
established by the Plan Administrator and set forth in the document evidencing such repurchase right. 
 F. First Refusal
Rights. Until such time as the Common Stock is first registered under Section 12 of the 1934 Act, the Corporation shall have the right of first refusal with respect to any proposed disposition by the Optionee (or any successor in
interest) of any shares of Common Stock issued under the Plan. Such right of first refusal shall be exercisable in accordance with the terms established by the Plan Administrator and set forth in the document evidencing such right. 

G. Limited Transferability of Options. An Incentive Stock Option shall be exercisable only by the Optionee during his or
her lifetime and shall not be assignable or transferable other than by will or by the laws of inheritance following the Optionee’s death. A Non-Statutory Option may be assigned in whole or in part during the Optionee’s lifetime to one or
more members of the Optionee’s “immediate family” (as such term is defined in Rule 16a-1(e) promulgated under the 1934 Act) or to an intervivos or grantor trust established exclusively for one or more such immediate family members.
The assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the Non-Statutory Option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as those in effect for the
option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Plan Administrator may deem appropriate. Notwithstanding the foregoing, the Optionee may also designate one or more persons as the
beneficiary or beneficiaries of his or her outstanding options under the Plan, and those options shall, in accordance with such designation, automatically be transferred to such beneficiary or beneficiaries upon the Optionee’s death while
holding those options. Such beneficiary or beneficiaries shall take the transferred options subject to all the terms and conditions of the applicable agreement evidencing each such transferred option, including (without limitation) the limited time
period during which the option may be exercised following the Optionee’s death. 
 II. INCENTIVE OPTIONS 

The terms specified below shall be applicable to all Incentive Options. Except as modified by the provisions of this Section II, all the
provisions of Articles One, Two and Four shall be applicable to Incentive Options. Options which are specifically designated as Non-Statutory Options shall not be subject to the terms of this Section II. 

  
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 A.
Eligibility. Incentive Options may only be granted to Employees. 
 B. Exercise Price. The exercise
price per share shall not be less than one hundred percent (100%) of the Fair Market Value per share of Common Stock on the option grant date. 
 C. Dollar Limitation. The aggregate Fair Market Value of the shares of Common Stock (determined as of the respective date or dates of grant) for which one or more options granted to any
Employee under the Plan (or any other option plan of the Corporation or any Parent or Subsidiary) may for the first time become exercisable as Incentive Options during any one (1) calendar year shall not exceed the sum of One Hundred Thousand
Dollars ($100,000). To the extent the Employee holds two (2) or more such options which become exercisable for the first time in the same calendar year, the foregoing limitation on the exercisability of such options as Incentive Options shall
be applied on the basis of the order in which such options are granted. To the extent an Option designated as an Incentive Stock Option would become exercisable for the first time for an amount in excess of One Hundred Thousand Dollars, the excess
amount shall be exercisable as a Non-Statutory Stock Option. 
 D. 10% Stockholder. If any Employee to whom an
Incentive Option is granted is a 10% Stockholder, then (i) the the exercise price per share shall not be less than one hundred ten percent (110%) of the Fair Market Value per share of Common Stock on the option grant date and (ii) the
option term shall not exceed five (5) years measured from the option grant date. 
 III. CHANGE IN CONTROL

 A. None of the outstanding options under the Plan shall vest in whole or in part on an accelerated basis upon the
occurrence of a Change in Control, and those options shall be assumable by any successor corporation in the Change in Control. However, the Plan Administrator shall have the discretionary authority to structure one or more options grants under the
Plan so that each of those particular options shall automatically accelerate in whole or in part, immediately prior to the effective date of that Change in Control, and become exercisable for all the shares of Common Stock at the time subject to the
accelerated portion of such option and may be exercised for any or all of those accelerated shares as fully vested shares of Common Stock. 
 B. None of the outstanding repurchase rights under the Plan shall terminate on an accelerated basis upon the occurrence of a Change in Control, and those rights shall be assignable to any successor
corporation in the Change in Control. However, the Plan Administrator shall have the discretionary authority to structure one or more repurchase rights under the Plan so that those particular rights shall automatically terminate in whole or in part,
and the shares of Common Stock subject to those terminated rights shall immediately vest, in the event of a Change in Control. 

  
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 C. Immediately
following the consummation of the Change in Control, all outstanding options under the Plan shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof) or otherwise continued in full
force and effect pursuant to the terms of the Change in Control transaction. 
 D. Each option which is assumed in connection
with a Change in Control or otherwise continued in effect shall be appropriately adjusted, immediately after such Change in Control, to apply to the number and class of securities or cash or other property which would have been issuable to the
Optionee in consummation of such Change in Control had the option been exercised immediately prior to such Change in Control. Appropriate adjustments to reflect such Change in Control shall also be made to the exercise price payable per share under
each outstanding option, provided the aggregate exercise price payable for such securities shall remain the same. To the extent the actual holders of the Corporation’s outstanding Common Stock receive cash consideration for their Common
Stock in consummation of the Change in Control, the successor corporation may, in connection with the assumption of the outstanding options under the Plan, substitute one or more shares of its own common stock with a fair market value equivalent to
the cash or other property consideration paid per share of Common Stock in such Change in Control transaction. 
 E. The Plan
Administrator shall have full power and authority to structure one or more outstanding options under the Plan so that those options shall vest and become exercisable on an accelerated basis for all or a portion of the shares of Common Stock at the
time subject to those options, should the Optionee’s Service subsequently terminate by reason of an Involuntary Termination within a designated period following the effective date of a Change in Control transaction. In addition, the Plan
Administrator may structure one or more of the Corporation’s repurchase rights so that those rights shall immediately terminate on an accelerated basis with respect to all or a portion of the shares held by the Optionee at the time of such
Involuntary Termination, and the shares subject to those terminated repurchase rights shall accordingly vest at that time. 
 F.
The portion of any Incentive Option accelerated in connection with a Change in Control or subsequent Involuntary Termination of the Optionee’s Service shall remain exercisable as an Incentive Option only to the extent the applicable One Hundred
Thousand Dollar ($100,000) limitation is not exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable as a Nonstatutory Option under the Federal tax laws. 

G. The outstanding options shall in no way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its
capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
 IV. CANCELLATION AND REGRANT OF OPTIONS 
 The Plan Administrator shall have
the authority to effect, at any time and from time to time, with the consent of the affected option holders, the cancellation of any or all outstanding options under the Plan and to grant in substitution therefor new options covering the same or
different number of shares of Common Stock but with an exercise price per share based on the Fair Market Value per share of Common Stock on the new option grant date. 

  
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 ARTICLE THREE

 STOCK ISSUANCE PROGRAM 
 I. STOCK ISSUANCE TERMS 
 Shares of Common Stock may be issued under the
Stock Issuance Program through direct and immediate issuances without any intervening option grants. Each such stock issuance shall be evidenced by a Stock Issuance Agreement which complies with the terms specified below. 

A. Purchase Price. 
 (i) The purchase price per share shall be fixed by the Plan Administrator. 
 (ii)
Subject to the provisions of Section I of Article Four, shares of Common Stock may be issued under the Stock Issuance Program for any of the following items of consideration which the Plan Administrator may deem appropriate in each individual
instance: 
 (1) cash or check made payable to the Corporation, or 

(2) past services rendered to the Corporation (or any Parent or Subsidiary). 

B. Vesting Provisions. 
 (i) Shares of Common Stock issued under the Stock Issuance Program may, in the discretion of the Plan Administrator, be fully and immediately vested upon issuance or may vest in one or more installments
over the Participant’s period of Service or upon attainment of specified performance objectives. 
 (ii) Any new,
substituted or additional securities or other property (including money paid other than as a regular cash dividend) which the Participant may have the right to receive with respect to the Participant’s unvested shares of Common Stock by reason
of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt
of consideration shall be issued subject to (i) the same vesting requirements applicable to the Participant’s unvested shares of Common Stock and (ii) such escrow arrangements as the Plan Administrator shall deem appropriate.

 (iii) The Participant shall have full stockholder rights with respect to any shares of Common Stock issued to the
Participant under the Stock Issuance Program, whether or not the Participant’s interest in those shares is vested. Accordingly, the Participant shall have the right to vote such shares and to receive any regular cash dividends paid on such
shares. 

  
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 (iv) Should the
Participant cease to remain in Service while holding one or more unvested shares of Common Stock issued under the Stock Issuance Program or should the performance objectives not be attained with respect to one or more such unvested shares of Common
Stock, then those shares shall be immediately surrendered to the Corporation for cancellation, and the Participant shall have no further stockholder rights with respect to those shares. To the extent the surrendered shares were previously issued to
the Participant for consideration paid in cash or cash equivalent (including the Participant’s purchase-money indebtedness), the Corporation shall repay to the Participant the lower of (i) the cash consideration paid for the surrendered
shares or (ii) the Fair Market Value of those shares at the time of Participant’s cessation of Service and shall cancel the unpaid principal balance of any outstanding purchase-money note of the Participant attributable to such surrendered
shares by the applicable clause (i) or (ii) amount. Notwithstanding the foregoing, if this Section would cause adverse accounting treatment for the Corporation’s equity compensation program, the Plan Administrator may, in its sole
discretion, waive or delay the surrender and/or repurchase of the unvested shares to minimize or eliminate such adverse accounting treatment. 
 (v) The Plan Administrator may in its discretion waive the surrender and cancellation of one or more unvested shares of Common Stock (or other assets attributable thereto) which would otherwise occur upon
the non-completion of the vesting schedule applicable to those shares. Such waiver shall result in the immediate vesting of the Participant’s interest in the shares of Common Stock as to which the waiver applies. Such waiver may be effected at
any time, whether before or after the Participant’s cessation of Service or the attainment or non-attainment of the applicable performance objectives. 
 C. First Refusal Rights. Until such time as the Common Stock is first registered under Section 12 of the 1934 Act, the Corporation shall have the right of first refusal with respect to
any proposed disposition by the Participant (or any successor in interest) of any shares of Common Stock issued under the Stock Issuance Program. Such right of first refusal shall be exercisable in accordance with the terms established by the Plan
Administrator and set forth in the document evidencing such right. 
 II. CHANGE IN CONTROL 

Upon the occurrence of a Change in Control, all outstanding repurchase rights under the Stock Issuance Program shall continue in full
force and effect and shall be assigned to the successor corporation (or parent thereof), and none of the shares subject to those repurchase rights shall vest on an accelerated basis. However, the Plan Administrator shall have the discretionary
authority, exercisable either at the time the unvested shares are issued or any time while the Corporation’s repurchase rights with respect to those shares remain outstanding, to provide that those repurchase rights shall automatically
terminate in whole or in part on an accelerated basis, and the shares of Common Stock subject to those terminated rights shall immediately vest, in the event the Participant’s Service should subsequently terminate by reason of an Involuntary
Termination within a designated period following the effective date of the Change in Control transaction. 

  
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 III. SHARE
ESCROW/LEGENDS 
 Unvested shares may, in the Plan Administrator’s discretion, be held in escrow by the Corporation
until the Participant’s interest in such shares vests or may be issued directly to the Participant with restrictive legends on the certificates evidencing those unvested shares. 

ARTICLE FOUR 
 MISCELLANEOUS 
 I. FINANCING 

The Plan Administrator may permit any Optionee or Participant to pay the option exercise price under the Option Grant Program or the
purchase price for shares issued under the Stock Issuance Program by delivering a full-recourse promissory note payable in one or more installments which bears interest at a market rate and is secured by the purchased shares. In no event, however,
may the maximum credit available to the Optionee or Participant exceed the sum of (i) the aggregate option exercise price or purchase price payable for the purchased shares (less the par value of those shares) plus (ii) any applicable
income and employment tax liability incurred by the Optionee or the Participant in connection with the option exercise or share purchase. With respect to promissory notes issued to officers pursuant to this Section, such notes shall become due and
payable immediately prior to the filing of a Registration Statement on Form S-1 (or any successor form). 
 II. EFFECTIVE
DATE AND TERM OF PLAN 
 A. The Plan shall become effective when adopted by the Board, but no option granted under the Plan
may be exercised, and no shares shall be issued under the Plan, until the Plan is approved by the Corporation’s stockholders. If such stockholder approval is not obtained within twelve (12) months after the date of the Board’s
adoption of the Plan, then all options previously granted under the Plan shall terminate and cease to be outstanding, and no further options shall be granted and no shares shall be issued under the Plan. Subject to such limitation, the Plan
Administrator may grant options and issue shares under the Plan at any time after the effective date of the Plan and before the date fixed herein for termination of the Plan. 
 B. The Plan shall terminate upon the earliest of (i) the expiration of the ten (10)-year period measured from the date the Plan is adopted by the Board, (ii) the date on which all shares
available for issuance under the Plan shall have been issued as vested shares or (iii) the termination of all outstanding options in connection with a Change in Control. All options and unvested stock issuances outstanding at the time of a
clause (i) termination event shall continue to have full force and effect in accordance with the provisions of the documents evidencing those options or issuances. 

  
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 III. AMENDMENT OF
THE PLAN 
 A. The Board shall have complete and exclusive power and authority to amend or modify the Plan in any or all
respects. However, no such amendment or modification shall adversely affect the rights and obligations with respect to options or unvested stock issuances at the time outstanding under the Plan unless the Optionee or the Participant consents to such
amendment or modification. In addition, certain amendments may require stockholder approval pursuant to applicable laws and regulations. 
 B. Options may be granted under the Option Grant Program and shares may be issued under the Stock Issuance Program which are in each instance in excess of the number of shares of Common Stock then
available for issuance under the Plan, provided any excess shares actually issued under those programs shall be held in escrow until there is obtained stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock
available for issuance under the Plan. If such stockholder approval is not obtained within twelve (12) months after the date the first such excess grants or issuances are made, then (i) any unexercised options granted on the basis of such
excess shares shall terminate and cease to be outstanding and (ii) the Corporation shall promptly refund to the Optionees and the Participants the exercise or purchase price paid for any excess shares issued under the Plan and held in escrow,
together with interest (at the applicable Short Term Federal Rate) for the period the shares were held in escrow, and such shares shall thereupon be automatically cancelled and cease to be outstanding. 

IV. USE OF PROCEEDS 
 Any cash proceeds received by the Corporation from the sale of shares of Common Stock under the Plan shall be used for general corporate purposes. 

V. WITHHOLDING 
 The Corporation’s obligation to deliver shares of Common Stock upon the exercise of any options granted under the Plan or upon the issuance or vesting of any shares issued under the Plan shall be
subject to the satisfaction of all applicable income and employment tax withholding requirements. 
 VI. REGULATORY APPROVALS

 The implementation of the Plan, the granting of any options under the Plan and the issuance of any shares of Common Stock
(i) upon the exercise of any option or (ii) under the Stock Issuance Program shall be subject to the Corporation’s procurement of all approvals and permits required by regulatory authorities having jurisdiction over the Plan, the
options granted under it and the shares of Common Stock issued pursuant to it. 

  
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 VII. NO EMPLOYMENT
OR SERVICE RIGHTS 
 Nothing in the Plan shall confer upon the Optionee or the Participant any right to continue in Service
for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining such person) or of the Optionee or the Participant, which rights are hereby
expressly reserved by each, to terminate such person’s Service at any time for any reason, with or without cause. 

  
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 VIII. FINANCIAL
REPORTS 
 The Corporation shall deliver to each Optionee and Participant such financial and other information as required
pursuant to Rule 701 promulgated under the Securities Act of 1933, as amended. 

  
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 APPENDIX

 The following definitions shall be in effect under the Plan: 

A. Board shall mean the Corporation’s Board of Directors. 

B. Change in Control shall mean a change in ownership or control of the Corporation effected through any of the following
transactions: 
 (i) a merger, consolidation or other reorganization approved by the Corporation’s stockholders,
unless securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned, directly or indirectly and in
substantially the same proportion, by the persons who beneficially owned the Corporation’s outstanding voting securities immediately prior to such transaction, or 
 (ii) a stockholder-approved sale, transfer or other disposition of all or substantially all of the Corporation’s assets in complete liquidation or dissolution of the Corporation, or 

(iii) the acquisition, directly or indirectly by any person or related group of persons (other than the Corporation or a person that
directly or indirectly controls, is controlled by, or is under common control with, the Corporation), of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total
combined voting power of the Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to the Corporation’s stockholders. 
 In no event shall any public offering of the Corporation’s securities be deemed to constitute a Change in Control. 
 C. Code shall mean the Internal Revenue Code of 1986, as amended. 

D. Committee shall mean a committee of one (1) or more Board members appointed by the Board to exercise one or more
administrative functions under the Plan. 
 E. Common Stock shall mean the Corporation’s common stock.

 F. Corporation shall mean Pacira, Inc., a Delaware corporation, and any successor corporation to all or
substantially all of the assets or voting stock of Pacira, Inc. which shall by appropriate action adopt the Plan. 
 G.
Disability shall mean the inability of the Optionee or the Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment and shall be determined by the Plan
Administrator on the basis of such medical evidence as the Plan Administrator deems warranted under the circumstances. 

  
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 H.
Employee shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of
performance. 
 I. Exercise Date shall mean the date on which the Corporation shall have received written notice
of the option exercise. 
 J. Fair Market Value per share of Common Stock on any relevant date shall be determined
in accordance with the following provisions: 
 (i) If the Common Stock is at the time traded on the Nasdaq National Market,
then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National Market and published in The Wall
Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 

(ii) If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per
share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange and
published in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

 (iii) If the Common Stock is at the time neither listed on any Stock Exchange nor traded on the Nasdaq National Market, then
the Fair Market Value shall be determined by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate. 
 K. Incentive Option shall mean an option which satisfies the requirements of Code Section 422. 
 L. Involuntary Termination shall mean the termination of the Service of any individual which occurs by reason of: 
 (i) such individual’s involuntary dismissal or discharge by the Corporation for reasons other than Misconduct, or 
 (ii) such individual’s voluntary resignation following (A) a change in his or her position with the Corporation which materially reduces his or her duties and responsibilities or the level of
management to which he or she reports, (B) a reduction in his or her level of compensation (including base salary, fringe benefits and target bonus under any corporate-performance based bonus or incentive programs) by more than fifteen percent
(15%) or (C) a relocation of such individual’s place of employment by more than fifty (50) miles, provided and only if such change, reduction or relocation is effected without the individual’s consent. 

  
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 M.
Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by the Optionee or Participant, any unauthorized use or disclosure by such person of confidential information or trade secrets of the Corporation (or
any Parent or Subsidiary), or any other intentional misconduct by such person adversely affecting the business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way preclude
or restrict the right of the Corporation (or any Parent or Subsidiary) to discharge or dismiss any Optionee, Participant or other person in the Service of the Corporation (or any Parent or Subsidiary) for any other acts or omissions, but such other
acts or omissions shall not be deemed, for purposes of the Plan, to constitute grounds for termination for Misconduct. 
 N.
1934 Act shall mean the Securities Exchange Act of 1934, as amended. 
 O. Non-Statutory Option
shall mean an option not intended to satisfy the requirements of Code Section 422. 
 P. Option Grant Program
shall mean the option grant program in effect under the Plan. 
 Q. Optionee shall mean any person to whom an
option is granted under the Plan. 
 R. Parent shall mean any corporation (other than the Corporation) in an
unbroken chain of corporations ending with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in such chain. 
 S. Participant shall mean
any person who is issued shares of Common Stock under the Stock Issuance Program. 
 T. Plan shall mean the
Corporation’s Amended and Restated 2007 Stock Option/Stock Issuance Plan, as set forth in this document. 
 U. Plan
Administrator shall mean either the Board or the Committee acting in its capacity as administrator of the Plan. 
 V.
Service shall mean the provision of services to the Corporation (or any Parent or Subsidiary) by a person in the capacity of an Employee, a non-employee member of the board of directors or a consultant or independent advisor, except to
the extent otherwise specifically provided in the documents evidencing the option grant. 
 W. Stock Exchange
shall mean either the American Stock Exchange or the New York Stock Exchange. 

  
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 X. Stock
Issuance Agreement shall mean the agreement entered into by the Corporation and the Participant at the time of issuance of shares of Common Stock under the Stock Issuance Program. 

Y. Stock Issuance Program shall mean the stock issuance program in effect under the Plan. 

Z. Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with
the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain. 
 AA. 10% Stockholder shall mean the owner of stock (as
determined under Code Section 424(d)) possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation (or any Parent or Subsidiary). 

  
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