Document:

Exhibit

Exhibit 10.2

SUMMARY OF TRUSTEE COMPENSATION ARRANGEMENTS

The Compensation Committee periodically reviews the compensation of our non-employee Trustees and, when it deems appropriate and upon consultation with the Committee’s independent compensation consultant, recommends adjustments to be approved by the Board of Trustees.  The Compensation Committee recommends to the Board compensation for the Trustees based on competitive market practices for both the total value of compensation and the allocation of cash and equity.  The Committee uses data obtained from similarly sized utility and general industry companies as guidelines for setting Trustee compensation.  The level of Trustee compensation recommended by the Committee and approved by the Board enables us to attract Trustees who have a broad range of backgrounds and experiences.   

Each non-employee Trustee serving on January 1 receives a grant under the Company’s Incentive Plan, generally effective on the tenth business day of each such year, consisting of the number of restricted stock units (RSUs) resulting from dividing $135,000 by the average closing price of our common shares as reported on the NYSE for the 10 trading days immediately preceding such date and rounding the resulting amount to the nearest whole RSU.  RSUs generally vest on the next business day following the grant. Beginning with grants made in 2020, each non-employee Trustee was entitled to elect distribution of up to 100 percent of the common shares issuable in respect of such RSUs immediately upon vesting of their RSU grant, subject to satisfaction of the Trustee share ownership guidelines. The distribution of all common shares entitled to be received upon vesting, but not distributed immediately, are deferred until the tenth business day of January of the year following retirement from Board service.  Any individual who is elected to serve as a Trustee after January 1 of any calendar year receives an RSU grant prorated from the date of such election and granted on the first business day of the month following such election.

2019 Trustee Compensation
	
		
	Compensation Element
	Amount

	Annual Cash Retainer
	$115,000

	Annual Stock Retainer
	$135,000

	Board and Committee Attendance Fees
	None

	Annual Lead Trustee Retainer
	$30,000

	Annual Committee Chair Retainer
	$20,000 Audit Committee
$15,000 Compensation Committee
$15,000 Corporate Governance Committee
$15,000 Finance Committee

Annual cash retainers of $115,000 per Trustee, additional Committee Chair and Lead Trustee cash retainers and annual RSU grants for service on the Board for 2019 based on the amounts above were paid as described in this section.  Pay Governance LLC provided the Compensation Committee with a review of competitive market practices and compensation in 2019.  As a result, the annual cash retainer for the Chair of the Audit Committee was increased by $5,000 and the annual RSU grants were increased by $25,000, effective January 1, 2020.

The share ownership guidelines set forth in the Company’s Corporate Governance Guidelines require each Trustee to attain ownership of a number of common shares equal to a market value of at least five-times the then current annual cash compensation retainer for service on the Board.  Trustees shall be required to hold all shares awarded as annual stock compensation retainers until the guidelines have been met.  All of the current Trustees exceed the required share ownership threshold except for Mr. Kim and Ms. Forry, each of whom was elected as a Trustee in 2018, and Mr. Long, who was elected as a Trustee in 2019.

Pursuant to the Company’s Deferred Compensation Plan, prior to the year earned, each Trustee may irrevocably elect to defer receipt of all or a portion of their cash compensation.  Deferred funds are credited with deemed earnings on various deemed investments as permitted by the Deferred Compensation Plan.  Deferred cash compensation is payable either in a lump sum or in installments in accordance with the Trustee’s prior election.  There were no above-market earnings in deferred compensation value during 2019, as the terms of the Deferred Compensation Plan provide for market-based investments, including Company common shares.  

Our 2018 Incentive Plan places a limit on the amount of total annual compensation that can be paid to any Trustee.  When applicable, we pay travel-related expenses for spouses of Trustees who attend Board functions, but we do not pay tax gross-up payments in connection with such expenses, nor do we pay pension benefits to our non-employee Trustees.Exhibit

Exhibit 10.6.1

Amendment Number 1 to the
Eversource Deferred Compensation Plan

Effective February 7, 2018, the Eversource Deferred Compensation Plan is amended as follows:
		
	1.
	The definition of “Eligible Trustee” in Article 2 is hereby amended to remove “an” and add “a non-Employee” and shall read as follows:

““Eligible Trustee” means any person serving as a non-employee Eversource Energy Trustee for a particular Plan Year.”
		
	2.
	Article 4.5 (A) is hereby amended to add the percentage amount of any annual Equity Award granted to be automatically deferred and shall read as follows:

“(A) Trustee Equity Award. An Eligible Trustee automatically shall be deemed to elect deferral of fifty percent of any annual Equity Award granted as part of the retainer for Board service for any Plan Year, and may, subject to such rules as the Trustees may adopt from time to time, elect to defer or not defer part or all of the remaining fifty percent of such annual  Equity Award.”

		
	3.
	Article 4.6 (B) is hereby amended to add reference to Equity with respect to deferral elections and shall read as follows:

“(B) Trustee Participants. A Trustee Participant’s Cash and Equity Award Deferral elections for a Particular Year shall terminate as to further deferrals for such Plan Year if such Participant (i) becomes Disabled during such Plan Year, or (ii) receives an Emergency Benefit under the Plan during such Plan Year.”

		
	4.
	Article 6.2 (A) is hereby amended to clarify the distribution time of a properly deferred Trustee Participant Equity Award and shall read as follows:

“(A) Affirmative Elections by Participants. All distributions from all Employee Participant Accounts and Trustee Participant Cash Retainer Deferral Accounts hereunder shall be made within 60 days of the Participant’s End Termination Date unless other permitted by the Plan Administrator and properly elected in the Participant’s Enrollment Agreement.  Distributions from Trustee Participant Equity Deferral Accounts shall be made on the tenth day of January in the year following the Trustee’s Termination Date unless otherwise permitted by the Plan Administrator and properly elected in the Trustee Participant’s Enrollment Agreement.  No Enrollment Agreement shall elect a distribution date sooner than 3 years after the Plan Year for which the deferral is to occur (or earlier termination of Service).”

		
	5.
	Article 6.2 (B) is hereby deleted in its entirety and Article 6.2 (C) is renamed Article 6.2 (B).

6.Article 7.2 is hereby amended by deleting the words “within 90 days” and substituting therein “at the election of the Participant’s beneficiary, but in no event later than December 31 of the year following the Participant’s death”.
EVERSOURCE ENERGY SERVICE COMPANY

_________________________________________
Christine M. Carmody
Executive Vice President - Human Resources and 
  Information Technologyexh43lgnddescriptionofse

                                                                     Exhibit 4.3                                                           DESCRIPTION OF THE REGISTRANT’S SECURITIES                  REGISTERED PURSUANT TO SECTION 12 OF THE                       SECURITIES EXCHANGE ACT OF 1934   Ligand Pharmaceuticals Incorporated (“Ligand,” “we,” “our” and “us”) has one class of   securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended:   our common stock.                              Description of Common Stock    General          The following summary of the terms of our common stock does not purport to be   complete and is subject to and qualified in its entirety by reference to our Amended and Restated   Certificate of Incorporation, as amended (the “certificate of incorporation”), and the Amended   and Restated Bylaws, as amended (the “bylaws”), which are filed as exhibits to our most recent   Annual Report on Form 10-K and are incorporated by reference herein.           Under our certificate of incorporation, the total number of shares of all classes of stock   that we have authority to issue is 65,000,000, consisting of 5,000,000 shares of preferred stock,   par value $0.001 per share, and 60,000,000 shares of common stock, par value $0.001 per share.    Common Stock    Voting Rights          The holders of our common stock are entitled to one vote for each share held of record on   all matters submitted to a vote of the stockholders, including the election of directors, and do not   have cumulative voting rights. Accordingly, the holders of a majority of the shares of common   stock entitled to vote in any election of directors can elect all of the directors standing for   election, if they so choose.     Dividends          Subject to limitations under Delaware law and preferences that may be applicable to any   then outstanding preferred stock, holders of common stock are entitled to receive ratably those   dividends, if any, as may be declared by our board of directors out of legally available funds.     Liquidation           Upon our liquidation, dissolution or winding up, the holders of common stock will be   entitled to share ratably in the net assets legally available for distribution to stockholders after the   payment of all of our debts and other liabilities of our company, subject to the prior rights of any   preferred stock then outstanding.                                            1    

 

 Rights and Preferences         Holders of common stock have no preemptive or conversion rights or other subscription  rights and there are no redemption or sinking funds provisions applicable to the common stock.   Fully Paid and Nonassessable         All outstanding shares of our common stock are fully paid and nonassessable and the  shares of common stock offered hereby will be fully paid and nonassessable.    Anti-Takeover Effects of Provisions of Our Certificate of Incorporation, Our Bylaws and  Delaware Law          Some provisions of Delaware law, our certificate of incorporation and our bylaws contain  provisions that could make the following transactions more difficult: acquisition of us by means  of a tender offer; acquisition of us by means of a proxy contest or otherwise; or removal of our  incumbent officers and directors. It is possible that these provisions could make it more difficult  to accomplish or could deter transactions that stockholders may otherwise consider to be in their  best interest or in our best interests, including transactions that might result in a premium over  the market price of our shares.          These provisions, summarized below, are expected to discourage coercive takeover  practices and inadequate takeover bids. These provisions are also designed to encourage persons  seeking to acquire control of us to first negotiate with our board of directors. We believe that the  benefits of increased protection of our potential ability to negotiate with the proponent of an  unfriendly or unsolicited proposal to acquire or restructure us outweigh the disadvantages of  discouraging these proposals because negotiation of these proposals could result in an  improvement of their terms.    Undesignated Preferred Stock          The ability to authorize undesignated preferred stock makes it possible for our board of  directors to issue preferred stock with voting or other rights or preferences that could impede the  success of any attempt to change control of us. These and other provisions may have the effect of  deferring hostile takeovers or delaying changes in control or management of our company.    Requirements for Advance Notification of Stockholder Nominations and Proposals          Our bylaws establish advance notice procedures with respect to stockholder proposals  and the nomination of candidates for election as directors, other than nominations made by or at  the direction of the board of directors or a committee of the board of directors.  These provisions  could have the effect of delaying until the next stockholder meeting stockholder actions that are  favored by the holders of a majority of our outstanding voting securities.   Elimination of Stockholder Action by Written Consent          Our certificate of incorporation eliminates the right of stockholders to act by written  consent without a meeting.                                           2    

 

 Special Meetings         Our bylaws state that a special meeting of the stockholders may be called by our  president and shall be called by our president or secretary upon written request from our board of  directors or upon a written request from stockholders owning at least 10% of the entire capital  stock of the company issued and outstanding and entitled to vote.    Delaware Anti-Takeover Statute           We are subject to Section 203 of the Delaware General Corporation Law. This statute   regulating corporate takeovers prohibits a Delaware corporation from engaging in any business   combination with any interested stockholder for three years following the date that the   stockholder became an interested stockholder, unless:             •  prior to the date of the transaction, the Board approved either the business               combination or the transaction which resulted in the stockholder becoming an               interested stockholder;             •  the interested stockholder owned at least 85% of the voting stock of the               corporation outstanding at the time the transaction commenced, excluding for               purposes of determining the number of shares outstanding (a) shares owned by               persons who are directors and also officers and (b) shares owned by employee               stock plans in which employee participants do not have the right to determine               confidentially whether shares held subject to the plan will be tendered in a tender               or exchange offer; or             •  on or subsequent to the date of the transaction, the business combination is               approved by the Board and authorized at an annual or special meeting of               stockholders, and not by written consent, by the affirmative vote of at least               66 2/3% of the outstanding voting stock which is not owned by the interested               stockholder.          Section 203 defines a business combination to include:             •  any merger or consolidation involving the corporation and the interested               stockholder;             •  any sale, transfer, pledge or other disposition involving the interested stockholder               of 10% or more of the assets of the corporation;             •  subject to exceptions, any transaction that results in the issuance or transfer by the               corporation of any stock of the corporation to the interested stockholder;             •  any transaction involving the corporation that has the effect of increasing the               proportionate share of the stock of any class or series of the corporation               beneficially owned by the interested stockholder; or                                           3    

 

          •  the receipt by the interested stockholder of the benefit of any loans, advances,               guarantees, pledges or other financial benefits provided by or through the               corporation.         In general, Section 203 defines an interested stockholder as an entity or person  beneficially owning 15% or more of the outstanding voting stock of the corporation and any  entity or person affiliated with or controlling or controlled by such entity or person.    Fair Market Value Provision           Our certificate of incorporation contains a fair market value provision that requires the   approval of the holders of 66 2/3% of our outstanding voting stock as a condition to a merger or   certain other business transactions with, or proposed by, any person that beneficially owns,   directly or indirectly, 15% or more of our voting stock (an “Interested Stockholder”), except in   cases where a majority of the Continuing Directors (as defined below) approve the transaction or   certain minimum price criteria and other procedural requirements are met. A “Continuing   Director” is (i) a director who was originally elected upon incorporation of Ligand, (ii) a director   who is not an Interested Stockholder or affiliated with an Interested Stockholder, or (iii) a   director whose nomination or election to our board of directors is recommended or approved by   a majority of the Continuing Directors. The minimum price criteria are recommended or   approved by a majority of the Continuing Directors. The minimum price criteria generally   require that, in a transaction in which stockholders are to receive payments, holders of our   common stock must receive, on the consummation date of the transaction, a value equal to the   higher of (A) the highest price paid by the Interested Stockholder for common stock during the   prior two years and (B) the highest closing sale price of common stock during the 30-day period   before (1) the announcement of the transaction or (2) the date on which the Interested   Stockholder became an Interested Stockholder, whichever is higher.  In addition, such payment   must be made in cash or in the type of consideration paid by the Interested Stockholder for the   greatest portion of its shares. Our board of directors believes that this fair market value provision   helps assure that all our stockholders will be treated similarly if certain kinds of business   transactions are effected. However, this fair market value provision may make it more difficult to   accomplish certain transactions that are opposed by the incumbent board of directors and that   could be beneficial to stockholders.    Amendment of Charter Provisions           The amendment of any of the above provisions, except for the provision making it   possible for our board of directors to issue preferred stock, would require approval by holders of   at least 66 2/3% of our then outstanding common stock.           The provisions of Delaware law, our certificate of incorporation and our bylaws could   have the effect of discouraging others from attempting hostile takeovers and, as a consequence,   they may also inhibit temporary fluctuations in the market price of our common stock that often   result from actual or rumored hostile takeover attempts. These provisions may also have the   effect of preventing changes in our management. It is possible that these provisions could make   it more difficult to accomplish transactions that stockholders may otherwise deem to be in their   best interests.                                           4    

 

 Amendment of Bylaws         The affirmative vote of the holders of at least the majority of the total voting power of all  outstanding shares of our voting stock is required for stockholders to amend our bylaws. This  provision makes it more difficult to circumvent the anti-takeover provisions of our bylaws. Our   board of directors is authorized to make, amend, supplement or repeal our bylaws; provided that   no amendment or supplement to the bylaws adopted by the board of directors may vary or   conflict with any amendment or supplement duly adopted by the stockholders.     Listing          Our common stock is listed for trading on the Nasdaq Global Market under the symbol   “LGND.”    Transfer Agent and Registrar          The transfer agent and registrar for our common stock is Computershare Trust Company   N.A.                                           5

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