Form of Restricted Stock Unit Grant Notice and Restricted Stock Unit Agreement



 Exhibit 10.318 
 LIGAND PHARMACEUTICALS INCORPORATED 
 2002 STOCK INCENTIVE PLAN 
 RESTRICTED STOCK UNIT GRANT NOTICE AND 
 RESTRICTED STOCK UNIT AGREEMENT 
 Ligand Pharmaceuticals Incorporated, a Delaware corporation (the
“Company”), pursuant to its 2002 Stock Incentive Plan (the “Plan”), hereby grants to the holder listed below (“Participant”), an award of restricted stock units
(“Restricted Stock Units” or “RSUs”) with respect to the number of shares of the Company’s common stock (the “Shares”). This award for Restricted Stock Units (this
“RSU Award”) is subject to all of the terms and conditions as set forth herein and in the Restricted Stock Unit Award Agreement attached hereto as Exhibit A (the “Restricted Stock Unit
Agreement”) and the Plan, each of which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Restricted Stock Unit
Agreement. 
  

			
	Participant:	 	 
		
	Grant Date:	 	 
		
	Vesting Commencement Date:	 	 
		
	Total Number of RSUs Subject to Award:	 	 
		
	Vesting Schedule:	 	[To be specified in individual agreements]
		
	Distribution Schedule:	 	The RSUs shall be distributable as they vest pursuant to the Vesting Schedule.

 By his or her signature and the Company’s signature below, Participant agrees to be bound by
the terms and conditions of the Plan, the Restricted Stock Unit Agreement and this Grant Notice. Participant has reviewed the Restricted Stock Unit Agreement, the Plan and this Grant Notice in their entirety, has had an opportunity to obtain the
advice of counsel prior to executing this Grant Notice and fully understands all provisions of this Grant Notice, the Restricted Stock Unit Agreement and the Plan. Participant hereby agrees to accept as binding, conclusive and final all decisions or
interpretations of the Plan Administrator upon any questions arising under the Plan, this Grant Notice or the Restricted Stock Unit Agreement. If Participant is married, his or her spouse has signed the Consent of Spouse attached to this Grant
Notice as Exhibit B. 
  

									
	LIGAND PHARMACEUTICALS INCORPORATED	 		 	PARTICIPANT
					
	By:	 	 	 		 	By:	 	 


									
	Print Name:	 	 	 		 	Print Name:	 	 


									
	Title:	 	 	 		 		 	


									
	Address:	 	 10275 Science Center Drive	 		 	Address:	 	 
		 	 San Diego, CA 92121	 		 		 	 








 EXHIBIT A 
 TO RESTRICTED STOCK UNIT AWARD GRANT NOTICE 
 LIGAND PHARMACEUTICALS, INCORPORATED 

RESTRICTED STOCK UNIT AWARD AGREEMENT 
 Pursuant to the Restricted Stock Unit Award Grant Notice (the “Grant Notice”) to which this Restricted Stock Unit Award Agreement (this “Agreement”) is attached, Ligand Pharmaceuticals
Incorporated, a Delaware corporation (the “Company”), has granted to Participant the right to receive the number of Restricted Stock Units under the Company’s 2002 Stock Incentive Plan (the
“Plan”) indicated in the Grant Notice, with respect to the number of shares of the Company’s common stock (the “Stock”). The RSU Award and this Agreement are subject to the Plan, the terms and
conditions of which are incorporated herein by reference. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control. 
 ARTICLE I. 
 AWARD OF RESTRICTED STOCK UNITS 
 1.1 Award of Restricted Stock Units. 
 (a) Award. In consideration of Participant’s agreement to remain in the Service of the Company or one of its affiliates, and for other good and valuable consideration, the Company hereby grants to
Participant the right to receive the number of RSUs set forth in the Grant Notice, subject to all of the terms and conditions set forth in this Agreement, the Grant Notice and the Plan (the “RSU Award”). Each RSU represents
the right to receive one Share. Prior to actual issuance of any Shares, the RSUs and the RSU Award represent an unsecured obligation of the Company, payable only from the general assets of the Company. 
 (b) Vesting. The RSUs subject to the RSU Award shall vest in accordance with the Vesting Schedule set forth in the Grant Notice.
Unless and until the RSUs have vested in accordance with the vesting schedule set forth in the Grant Notice, Participant will have no right to any distribution with respect to such RSUs. In the event of Participant’s cessation of Service for
any reason, including as a result of Participant’s death or Permanent Disability, prior to the vesting of all of the RSUs, any unvested RSUs will terminate automatically without any further action by the Company and be forfeited without further
notice and at no cost to the Company. 
 (c) Distribution of Stock. 
 (i) Stock shall be distributed to Participant (or in the event of Participant’s death, to his or her estate) with respect to such
Participant’s vested Restricted Stock Units granted to Participant pursuant to this Restricted Stock Unit Agreement, subject to the terms and provisions of the Plan and this Restricted Stock Unit Agreement, on each vesting date as the RSU vests
pursuant to the Vesting Schedule set forth in the Grant Notice. 
 (ii) All distributions shall be made by the Company in the
form of whole shares of Stock. 
 (iii) Notwithstanding the foregoing, shares of Stock shall be issuable pursuant to a
Restricted Stock Unit at such times and upon such events as are specified in this Agreement only to the extent issuance under such terms will not cause the Restricted Stock Units or the shares of Stock issuable pursuant to the Restricted Stock Units
to be includible in the gross income of Participant under Section 409A of the Code prior to such times or the occurrence of such events, as permitted by the Code and the regulations and other guidance thereunder. 
 (d) Generally. Stock issued under the RSU Award shall be issued to Participant or Participant’s beneficiaries, as the case may
be, at the sole discretion of the Plan Administrator, in either (A) uncertificated form, with the Shares recorded in the name of Participant in the books and records of the Company’s transfer agent with appropriate notations regarding the
restrictions on transfer imposed pursuant to this Agreement; or (B) certificate form. 
  

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 1.2 Taxation Representations; Conditions to Issuance of Certificates. Notwithstanding any other
provision of this Agreement (including, without limitation, Section 1.1(b) hereof): 
 (a) Participant has reviewed with
his or her own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. Participant is relying solely on such advisors and not on any statements or representations of
the Company or any of its agents. Participant understands that Participant (and not the Company) shall be responsible for his or her own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.

 (b) Notwithstanding anything to the contrary in this Agreement, the Company shall be entitled to require payment (which
payment may be made in cash, by deduction from other compensation payable to Participant or in any form of consideration permitted by the Plan, in the sole discretion of the Plan Administrator) of any sums required by federal, state or local tax law
to be withheld with respect to the vesting of the RSUs and the issuance or sale of Shares issuable thereunder, or other taxable event related to the RSUs. The Company shall not be obligated to deliver any new certificate representing vested Shares
to Participant or Participant’s legal representative unless and until Participant or Participant’s legal representative shall have paid or otherwise satisfied in full the amount of all federal, state and local taxes applicable to the
taxable income of Participant resulting from the vesting of the RSUs and the issuance or sale of Shares issuable thereunder, or other taxable event related to the RSUs. 
 (c) The Company shall not be required to issue or deliver any certificate or certificates for any Shares prior to the fulfillment of all
of the following conditions: (A) the admission of the Shares to listing on all stock exchanges on which such Shares are then listed, (B) the completion of any registration or other qualification of the Shares under any state or federal law
or under rulings or regulations of the U.S. Securities and Exchange Commission or other governmental regulatory body, which the Plan Administrator shall, in its sole and absolute discretion, deem necessary and advisable, (C) the obtaining of
any approval or other clearance from any state or federal governmental agency that the Plan Administrator shall, in its absolute discretion, determine to be necessary or advisable and (D) the lapse of any such reasonable period of time
following the date the RSUs vest as the Plan Administrator may from time to time establish for reasons of administrative convenience. 
 ARTICLE II. 
 OTHER PROVISIONS 
 2.1 RSU Award and Interests Not Transferable. This RSU Award and the rights and privileges conferred hereby, including the RSUs awarded hereunder, shall not be liable for the debts, contracts or engagements of
Participant or his successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by
judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect. 
 2.2 Rights as Shareholder. Neither the Participant nor any person claiming under or through the Participant shall have any of the rights or
privileges of a shareholder of the Company in respect of any Shares issuable hereunder unless and until certificates representing such Shares (which may be in uncertificated form) will have been issued and recorded on the books and records of the
Company or its transfer agents or registrars, and delivered to the Participant (including through electronic delivery to a brokerage account). After such issuance, recordation and delivery, the Participant shall have all the rights of a shareholder
of the Company, including with respect to the right to vote the Shares and the right to receive any cash or share dividends or other distributions paid to or made with respect to the Shares; provided, however, that at the discretion of the
Company, and prior to the delivery of Shares, Participant may be required to execute a shareholders agreement in such form as shall be determined by the Company. 
  

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 2.3 No Right to Continued Service. Nothing in the Plan or in this Agreement shall be interpreted
to interfere with or limit in any way the right of the Company or any Parent or Subsidiary to terminate Participant’s employment or services at any time, nor confer upon Participant the right to continue in the employ or service of the Company
or any Parent or Subsidiary. 
 2.4 Governing Law. This Agreement and all acts and transactions pursuant hereto and the rights and
obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of law. 
 2.5 Conformity to Securities Laws. Participant acknowledges that the Plan is intended to conform to the extent necessary with all provisions of
the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, and state securities laws and regulations. Notwithstanding anything herein to the contrary, the Plan
shall be administered, and the Shares are to be issued, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary
to conform to such laws, rules and regulations. 
 2.6 Notices. Any notice required or permitted by this Agreement shall be in writing
and shall be deemed sufficient when delivered personally or sent by electronic mail (with return receipt requested and received) or fax or forty-eight (48) hours after being deposited in the U.S. mail, as certified or registered mail, with
postage prepaid, and addressed to the party to be notified, if to the Company, at its principal offices, and if to Participant, at Participant’s address, electronic mail address or fax number in the Company’s employee records or as
subsequently modified by written notice. 
 2.7 Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original and all of which together shall constitute one instrument. 
 2.8 Severability. If one or more
provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such
provision, then (a) such provision shall be excluded from this Agreement, (b) the balance of the Agreement shall be interpreted as if such provision were so excluded and (c) the balance of the Agreement shall be enforceable in
accordance with its terms. 
 2.9 Entire Agreement; Enforcement of Rights. This Agreement and the Plan set forth the entire agreement
and understanding of the parties relating to the subject matter herein and merge all prior discussions between them. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in
writing signed by the parties to this Agreement. 
 2.10 Successors and Assigns. The rights and benefits of this Agreement shall inure
to the benefit of, and be enforceable by the Company’s successors and assigns. The Company may assign its rights under this Agreement to any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company without the prior written consent of Participant. The rights and obligations of Participant under this Agreement may only be assigned with the prior written consent of the Company.

 2.11 Section 409A. Notwithstanding any other provision of the Plan, this Agreement or the Grant Notice, the Plan, this
Agreement and the Grant Notice shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A of the Code (together with any Department of Treasury regulations and other interpretive guidance issued
thereunder, including without limitation any such regulations or other guidance that may be issued after the date hereof, “Section 409A”). The Plan Administrator may, in its discretion, adopt such amendments to the Plan, this
Agreement or the Grant Notice or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Plan Administrator determines are necessary or appropriate to comply with
the requirements of Section 409A. 
  

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 EXHIBIT B 
 TO RESTRICTED STOCK AWARD GRANT NOTICE 
 CONSENT OF SPOUSE 
 I,
                                , spouse of [Name of Participant], have read and hereby
approve the foregoing Agreement. In consideration of the Company’s issuing the Shares to my spouse as set forth in the Agreement, I hereby agree to be irrevocably bound by the Agreement and further agree that any community property or similar
interest that I may have in the Shares shall be similarly bound by the Agreement. I hereby appoint my spouse as my attorney-in-fact with respect to any amendment or exercise of any rights under the Agreement. 
  

	
	
	  
	(Signature)


  

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