Document:

2004 Stock Plan

 Exhibit 10.08 
 GOOGLE INC. 
 2004 STOCK PLAN 
 As amended on June 21, 2004 
 As further amended on May 12, 2005 

 As further amended on May 11, 2006 
 As further amended on January 30, 2007 
 As further amended on May 10, 2007

 As further amended on May 8, 2008 
 As further amended on October 15, 2008 
 As further amended on May 7, 2009 

1. Purposes of the Plan. The purposes of this Plan are: 
  

	 	•	 	 to attract and retain the best available personnel for positions of substantial responsibility, 

  

	 	•	 	 to provide additional incentive to Employees, Directors and Consultants, and 

  

	 	•	 	 to promote the success of the Company’s business. 

 The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock, Stock Appreciation Rights, Restricted Stock Units, Performance Units, Performance Shares and Other Stock Based
Awards. 
 2. Definitions. As used herein, the following definitions will apply: 
 (a) “Administrator” means the Board or any of its Committees as will be administering the Plan, in accordance with
Section 4 of the Plan. 
 (b) “Annual Revenue” means the Company’s or a business unit’s net
sales for the Fiscal Year, determined in accordance with generally accepted accounting principles; provided, however, that prior to the Fiscal Year, the Committee shall determine whether any significant item(s) shall be excluded or included from the
calculation of Annual Revenue with respect to one or more Participants. 
 (c) “Applicable Laws” means the
requirements relating to the administration of equity-based awards or equity compensation plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is
listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under the Plan. 
 (d) “Award” means, individually or collectively, a grant under the Plan of Options, SARs, Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares or Other Stock Based Awards.

 (e) “Award Agreement” means the written or electronic agreement setting forth the terms and provisions
applicable to each Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan. 
 (f) “Award Transfer Program” means any program instituted by the Administrator which would permit Participants the opportunity to transfer any outstanding Awards to a financial institution or other person or entity selected
by the Administrator. 
 (g) “Awarded Stock” means the Common Stock subject to an Award. 
 (h) “Board” means the Board of Directors of the Company. 

 (i) “Cash Position” means the Company’s level of cash and cash
equivalents. 
 (j) “Change in Control” means the occurrence of any of the following events: 
 (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner”
(as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities and
within three (3) years from the date of such acquisition, a merger or consolidation of the Company with or into the person (or affiliate thereof) holding such beneficial ownership of securities of the Company is consummated; or 
 (ii) The consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; 
 (iii) A change in the composition of the Board occurring within a two-year period, as a result of which fewer than a majority of the
directors are Incumbent Directors. “Incumbent Directors” means directors who either (A) are Directors as of the effective date of the Plan, or (B) are elected, or nominated for election, to the Board with the affirmative votes of
at least a majority of the Incumbent Directors at the time of such election or nomination (but will not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of
directors to the Company); or 
 (iv) The consummation of a merger or consolidation of the Company with any other corporation,
other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the
surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.

 For purposes of this Section, “affiliate” will mean, with respect to any specified person, any other person that directly or
indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such specified person (“control,” “controlled by” and “under common control with” will mean the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through ownership of voting securities, by contact or credit arrangement, as trustee or executor, or otherwise). 
 (k) “Code” means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code herein will be a
reference to any successor or amended section of the Code. 
 (l) “Committee” means a committee of Directors
or other individuals satisfying Applicable Laws appointed by the Board in accordance with Section 4 of the Plan. 
 (m)
“Common Stock” means the Class A Common Stock of the Company, or in the case of Performance Units and certain Other Stock Based Awards, the cash equivalent thereof. 
 (n) “Company” means Google Inc., a Delaware corporation, or any successor thereto. 
 (o) “Consultant” means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render
services to such entity. 
 (p) “Controllable Profits” means as to any Plan Year, a business unit’s
Annual Revenue minus (a) cost of sales, (b) research, development, and engineering expense, (c) marketing and sales expense, (d) general and administrative expense, (e) extended receivables expense, and (f) shipping
requirement deviation expense. 

 (q) “Customer Satisfaction MBOs” means as to any Participant for any
Plan Year, the objective and measurable individual goals set by a “management by objectives” process and approved by the Committee, which goals relate to the satisfaction of external or internal customer requirements. 
 (r) “Director” means a member of the Board. 
 (s) “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code, provided that in
the case of Awards other than Incentive Stock Options, the Administrator in its discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from
time to time. 
 (t) “Dividend Equivalent” means a credit, made at the discretion of the Administrator, to
the account of a Participant in an amount equal to the cash dividends paid on one Share for each Share represented by an Award held by such Participant. 
 (u) “Earnings Per Share” means as to any Fiscal Year, the Company’s or a business unit’s Net Income, divided by a weighted average number of common shares outstanding and dilutive common
equivalent shares deemed outstanding, determined in accordance with generally accepted accounting principles. 
 (v)
“Employee” means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. Neither service as a Director nor payment of a director’s fee by the Company will be sufficient
to constitute “employment” by the Company. 
 (w) “Exchange Act” means the Securities Exchange Act
of 1934, as amended. 
 (x) “Exchange Program” means a program under which (i) outstanding Awards are
surrendered or cancelled in exchange for Awards of the same type (which may have lower exercise prices and different terms), Awards of a different type, and/or cash, and/or (ii) the exercise price of an outstanding Award is reduced. The terms
and conditions of any Exchange Program will be determined by the Administrator in its sole discretion. 
 (y) “Fair
Market Value” means, as of any date and unless the Administrator determines otherwise, the value of Common Stock determined as follows: 
 (i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value will be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the day of determination, as reported in The Wall Street Journal or such other source as
the Administrator deems reliable; 
 (ii) If the Common Stock is regularly quoted by a recognized securities dealer but
selling prices are not reported, the Fair Market Value of a Share of Common Stock will be the mean between the high bid and low asked prices for the Common Stock for the day of determination, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable; or 
 (iii) In the absence of an established market for the Common Stock,
the Fair Market Value will be determined in good faith by the Administrator. 
 (iv) Notwithstanding the preceding, for
federal, state, and local income tax reporting purposes and for such other purposes as the Administrator deems appropriate, the Fair Market Value shall be determined by the Administrator in accordance with uniform and nondiscriminatory standards
adopted by it from time to time. 
 (z) “Fiscal Year” means the fiscal year of the Company. 

 (aa) “Incentive Stock Option” means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 
 (bb)
“Individual Objectives” means as to a Participant, the objective and measurable goals set by a “management by objectives” process and approved by the Committee (in its discretion). 
 (cc) “Net Income” means as to any Fiscal Year, the income after taxes of the Company for the Fiscal Year determined in
accordance with generally accepted accounting principles, provided that prior to the Fiscal Year, the Committee shall determine whether any significant item(s) shall be included or excluded from the calculation of Net Income with respect to one or
more Participants. 
 (dd) “New Orders” means as to any Plan Year, the firm orders for a system, product,
part, or service that are being recorded for the first time as defined in the Company’s Order Recognition Policy. 
 (ee)
“Nonstatutory Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option. 
 (ff) “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
 (gg) “Operating Cash Flow” means the Company’s or a business unit’s sum of Net Income plus depreciation and
amortization less capital expenditures plus changes in working capital comprised of accounts receivable, inventories, other current assets, trade accounts payable, accrued expenses, product warranty, advance payments from customers and long-term
accrued expenses, determined in accordance with generally acceptable accounting principles. 
 (hh) “Operating
Income” means the Company’s or a business unit’s income from operations but excluding any unusual items, determined in accordance with generally accepted accounting principles. 
 (ii) “Option” means a stock option granted pursuant to the Plan. 
 (jj) “Other Stock Based Awards” means any other awards not specifically described in the Plan that are valued in whole or
in part by reference to, or are otherwise based on, Shares and are created by the Administrator pursuant to Section 12. 
 (kk) “Outside Director” means a Director who is not an Employee. 
 (ll) “Parent”
means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code. 
 (mm) “Participant” means the holder of an outstanding Award granted under the Plan. 
 (nn)
“Performance Goals” means the goal(s) (or combined goal(s)) determined by the Committee (in its discretion) to be applicable to a Participant with respect to an Award. As determined by the Committee, the Performance Goals applicable
to an Award may provide for a targeted level or levels of achievement using one or more of the following measures: (a) Annual Revenue, (b) Cash Position, (c) Controllable Profits, (d) Customer Satisfaction MBOs, (e) Earnings
Per Share, (f) Individual Objectives, (g) Net Income, (h) New Orders (i) Operating Cash Flow, (j) Operating Income, (k) Return on Assets, (l) Return on Equity, (m) Return on Sales, and (n) Total
Shareholder Return. The Performance Goals may differ from Participant to Participant and from Award to Award. Any criteria used may be measured, as applicable, in absolute or relative terms (including passage of time and/or against another company
or companies), on a per share basis, against the performance of the Company as a whole or any segment of the Company, and on a pre-tax or after-tax basis. 

 (oo) “Performance Share” means an Award granted to a Service Provider
pursuant to Section 10 of the Plan. 
 (pp) “Performance Unit” means an Award granted to a Service
Provider pursuant to Section 10 of the Plan. 
 (qq) “Period of Restriction” means the period during
which the transfer of Shares of Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the passage of time, the achievement of target levels of
performance, or the occurrence of other events as determined by the Administrator. 
 (rr) “Plan” means this
2004 Stock Plan. 
 (ss) “Restricted Stock” means shares of Common Stock issued pursuant to a Restricted
Stock award under Section 8, Section 11 or Section 12 of the Plan or issued pursuant to the early exercise of an Option. 
 (tt) “Restricted Stock Unit” means an Award that the Administrator permits to be paid in installments or on a deferred basis pursuant to Section 11 of the Plan. 
 (uu) “Return on Assets” means the percentage equal to the Company’s or a business unit’s Operating Income
before incentive compensation, divided by average net Company or business unit, as applicable, assets, determined in accordance with generally accepted accounting principles. 
 (vv) “Return on Equity” means the percentage equal to the Company’s Net Income divided by average stockholder’s
equity, determined in accordance with generally accepted accounting principles. 
 (ww) “Return on Sales”
means the percentage equal to the Company’s or a business unit’s Operating Income before incentive compensation, divided by the Company’s or the business unit’s, as applicable, revenue, determined in accordance with generally
accepted accounting principles. 
 (xx) “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to
Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan. 
 (yy) “Section 16(b)”
means Section 16(b) of the Exchange Act. 
 (zz) “Service Provider” means an Employee, Director or
Consultant. 
 (aaa) “Share” means a share of the Common Stock, as adjusted in accordance with
Section 15 of the Plan. 
 (bbb) “Stock Appreciation Right” or “SAR” means an Award,
granted alone or in connection with an Option, that pursuant to Section 9 of the Plan is designated as a SAR. 
 (ccc)
“Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined in Section 424(f) of the Code. 
 (ddd) “Total Shareholder Return” means the total return (change in share price plus reinvestment of any dividends) of a Share. 
 (eee) “Unvested Awards” means Options or Restricted Stock that (i) were granted to an individual in connection with
such individual’s position as a Service Provider and (ii) are still subject to vesting or lapsing of Company repurchase rights or similar restrictions. 

 3. Stock Subject to the Plan. 
 (a) Stock Subject to the Plan. Subject to the provisions of Section 15 of the Plan, the maximum aggregate number of Shares
that may be issued under the Plan is 37,431,660. The Shares may be authorized, but unissued, or reacquired Common Stock. Shares shall not be deemed to have been issued pursuant to the Plan (i) with respect to any portion of an Award that is
settled in cash, or (ii) to the extent such Shares are withheld in satisfaction of tax withholding obligations. Upon payment in Shares pursuant to the exercise of an Award, the number of Shares available for issuance under the Plan shall be
reduced only by the number of Shares actually issued in such payment. If a Participant pays the exercise price (or purchase price, if applicable) of an Award through the tender of Shares, the number of Shares so tendered shall again be available for
issuance pursuant to future Awards under the Plan. Notwithstanding anything in the Plan, or any Award Agreement to the contrary, Shares attributable to Awards transferred under any Award Transfer Program shall not be again available for grant under
the Plan. 
 (b) Lapsed Awards. If any outstanding Award expires or is terminated or canceled without having been
exercised or settled in full, or if Shares acquired pursuant to an Award subject to forfeiture or repurchase are forfeited or repurchased by the Company, the Shares allocable to the terminated portion of such Award or such forfeited or repurchased
Shares shall again be available for grant under the Plan. 
 4. Administration of the Plan. 
 (a) Procedure. 
 (i) Multiple Administrative Bodies. Different Committees with respect to different groups of Service Providers may administer the Plan. 
 (ii) Section 162(m). To the extent that the Administrator determines it to be desirable and necessary to qualify Awards granted hereunder as “performance-based compensation” within the meaning of
Section 162(m) of the Code, the Plan will be administered by a Committee of two or more “outside directors” within the meaning of Section 162(m) of the Code. 
 (iii) Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3, the transactions
contemplated hereunder will be structured to satisfy the requirements for exemption under Rule 16b-3. 
 (iv) Other
Administration. Other than as provided above, the Plan will be administered by (A) the Board or (B) a Committee, which committee will be constituted to satisfy Applicable Laws. 
 (v) Delegation of Authority for Day-to-Day Administration. Except to the extent prohibited by Applicable Law, the Administrator may
delegate to one or more individuals the day-to-day administration of the Plan and any of the functions assigned to it in this Plan. Such delegation may be revoked at any time. 
 (b) Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific
duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion: 
 (i) to
determine the Fair Market Value; 
 (ii) to select the Service Providers to whom Awards may be granted hereunder; 

(iii) to determine the number of Shares to be covered by each Award granted hereunder; 
 (iv) to approve forms of agreement for use under the Plan; 

 (v) to determine the terms and conditions, not inconsistent with the terms of the Plan,
of any Award granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of
forfeiture or repurchase restrictions, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator, in its sole discretion, will determine; 
 (vi) to reduce the exercise price of any Award to the then current Fair Market Value if the Fair Market Value of the Common Stock covered
by such Award shall have declined since the date the Award was granted; 
 (vii) to institute an Exchange Program; 

(viii) to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan; 
 (ix) to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of satisfying applicable foreign laws and/or qualifying for preferred tax treatment under applicable foreign tax laws; 
 (x) to modify or amend each Award (subject to Section 18(c) of the Plan), including the discretionary authority to extend the post-termination exercisability period of Awards longer than is otherwise provided for
in the Plan; 
 (xi) to allow Participants to satisfy withholding tax obligations by electing to have the Company withhold
from the Shares or cash to be issued upon exercise or vesting of an Award that number of Shares or cash having a Fair Market Value equal to the minimum amount required to be withheld. The Fair Market Value of any Shares to be withheld will be
determined on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares or cash withheld for this purpose will be made in such form and under such conditions as the Administrator may deem
necessary or advisable; 
 (xii) to authorize any person to execute on behalf of the Company any instrument required to effect
the grant of an Award previously granted by the Administrator; 
 (xiii) to allow a Participant to defer the receipt of the
payment of cash or the delivery of Shares that would otherwise be due to such Participant under an Award; 
 (xiv) to
implement an Award Transfer Program; 
 (xv) to determine whether Awards will be settled in Shares, cash or in any combination
thereof; 
 (xvi) to determine whether Awards will be adjusted for Dividend Equivalents; 
 (xvii) to create Other Stock Based Awards for issuance under the Plan; 
 (xviii) to establish a program whereby Service Providers designated by the Administrator can reduce compensation otherwise payable in cash
in exchange for Awards under the Plan; 
 (xix) to impose such restrictions, conditions or limitations as it determines
appropriate as to the timing and manner of any resales by a Participant or other subsequent transfers by the Participant of any Shares issued as a result of or under an Award, including without limitation, (A) restrictions under an insider
trading policy, and (B) restrictions as to the use of a specified brokerage firm for such resales or other transfers; and 
 (xx) to make all other determinations deemed necessary or advisable for administering the Plan. 

 (c) Effect of Administrator’s Decision. The Administrator’s decisions,
determinations and interpretations will be final and binding on all Participants and any other holders of Awards. 
 5. Eligibility.
Nonstatutory Stock Options, Restricted Stock, Stock Appreciation Rights, Performance Units, Performance Shares, Restricted Stock Units and Other Stock Based Awards may be granted to Service Providers. Incentive Stock Options may be granted only to
Employees. 
 6. Limitations. 
 (a) ISO $100,000 Rule. Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to the extent that the
aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds $100,000,
such Options will be treated as Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive Stock Options will be taken into account in the order in which they were granted. The Fair Market Value of the Shares will be determined as
of the time the Option with respect to such Shares is granted. 
 (b) No Rights as a Service Provider. Neither the Plan
nor any Award shall confer upon a Participant any right with respect to continuing his or her relationship as a Service Provider, nor shall they interfere in any way with the right of the Participant or the right of the Company or its Parent or
Subsidiaries to terminate such relationship at any time, with or without cause. 
 (c) 162(m) Limitation. The following
limitations shall apply to Awards under the Plan: 
 (i) Option and SAR Share Annual Limit. No Service Provider will be
granted, in any Fiscal Year, Options and/or SARs to purchase more than 1,000,000 Shares. 
 (ii) Restricted Stock,
Restricted Stock Units, Performance Units and Performance Shares Annual Limit. No Service Provider will be granted, in any Fiscal Year, Restricted Stock, Restricted Stock Units, Performance Units and/or Performance Shares to purchase more than
500,000 Shares. 
 (iii) Section 162(m) Performance Restrictions. For purposes of qualifying grants of Restricted
Stock, Restricted Stock Units, Performance Shares or Performance Units as “performance-based compensation” under Section 162(m) of the Code, the Administrator, in its discretion, may set restrictions based upon the achievement of
Performance Goals. The Performance Goals shall be set by the Administrator on or before the latest date permissible to enable the Restricted Stock Units, Restricted Stock, Performance Shares or Performance Units to qualify as “performance-based
compensation” under Section 162(m) of the Code. In granting Restricted Stock Units, Restricted Stock, Performance Shares or Performance Units which are intended to qualify under Section 162(m) of the Code, the Administrator shall
follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Award under Section 162(m) of the Code (e.g., in determining the Performance Goals). 
 (iv) The foregoing limitations will be adjusted proportionately in connection with any change in the Company’s capitalization as
described in Section 15 of the Plan. 
 (v) If an Award is cancelled in the same Fiscal Year in which it was granted
(other than in connection with a transaction described in Section 15 of the Plan), the cancelled Award will be counted against the limits set forth in subsections (i) and (ii) above. For this purpose, if the exercise price of an
Option is reduced, the transaction will be treated as a cancellation of the Option and the grant of a new Option. 

 7. Stock Options. 
 (a) Term of Option. The term of each Option will be stated in the Award Agreement. In the case of an Incentive Stock Option, the
term will be ten (10) years from the date of grant or such shorter term as may be provided in the Award Agreement. Moreover, in the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is
granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option will be five (5) years from the date
of grant or such shorter term as may be provided in the Award Agreement. 
 (b) Option Exercise Price and
Consideration. 
 (i) Exercise Price. The per Share exercise price for the Shares to be issued pursuant to exercise
of an Option will be determined by the Administrator, subject to the following: 
 (1) In the case of an Incentive Stock
Option 
 (A) granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more
than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price will be no less than 110% of the Fair Market Value per Share on the date of grant. 
 (B) granted to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price will
be no less than 100% of the Fair Market Value per Share on the date of grant. 
 (2) In the case of a Nonstatutory Stock
Option, the per Share exercise price will be determined by the Administrator. In the case of a Nonstatutory Stock Option intended to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code, the per
Share exercise price will be no less than 100% of the Fair Market Value per Share on the date of grant. 
 (3)
Notwithstanding the foregoing, Incentive Stock Options may be granted with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of grant pursuant to a merger or other corporate transaction. 
 (ii) Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator will fix the period within which the
Option may be exercised and will determine any conditions that must be satisfied before the Option may be exercised. 
 (c)
Form of Consideration. The Administrator will determine the acceptable form of consideration for exercising an Option, including the method of payment. In the case of an Incentive Stock Option, the Administrator will determine the acceptable
form of consideration at the time of grant. Such consideration to the extent permitted by Applicable Laws may consist entirely of: 
 (i) cash; 
 (ii) check; 
 (iii) promissory note; 
 (iv) other Shares which meet the conditions established by the Administrator to avoid adverse accounting consequences (as determined by the Administrator); 
 (v) consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan;

 (vi) a reduction in the amount of any Company liability to the Participant, including any
liability attributable to the Participant’s participation in any Company-sponsored deferred compensation program or arrangement; 
 (vii) any combination of the foregoing methods of payment; or 
 (viii) such other
consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws. 
 (d) Exercise
of Option. 
 (i) Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder will be exercisable
according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement. An Option may not be exercised for a fraction of a Share. 
 An Option will be deemed exercised when the Company receives: (x) written or electronic notice of exercise (in accordance with the
Award Agreement) from the person entitled to exercise the Option, and (y) full payment for the Shares with respect to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option will be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant and his or her spouse. Until
the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to
the Awarded Stock, notwithstanding the exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the Record Date is
prior to the date the Shares are issued, except as provided in Section 15 of the Plan or the applicable Award Agreement. 
 Exercising an Option in any manner will decrease the number of Shares thereafter available for sale under the Option, by the number of Shares as to which the Option is exercised. 
 (ii) Termination of Relationship as a Service Provider. If a Participant ceases to be a Service Provider, other than upon the
Participant’s death or Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of termination (but in no event later than
the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for three (3) months following the Participant’s termination.
Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan on the date one
(1) month following the Participant’s termination. If after termination the Participant does not exercise his or her Option within the time specified by the Administrator, the Option will terminate, and the Shares covered by such Option
will revert to the Plan. 

 (iii) Disability of Participant. If a Participant ceases to be a Service Provider
as a result of the Participant’s Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent the Option is vested on the date of termination (but in no event later
than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following the Participant’s
termination. Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan on the date one
(1) month following the Participant’s termination. If after termination the Participant does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to
the Plan. 
 (iv) Death of Participant. If a Participant dies while a Service Provider, the Option may be exercised
following the Participant’s death within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of death, or to the extent it vests pursuant to Section 23(a)(i) hereof (but in no
event may the Option be exercised later than the expiration of the term of such Option as set forth in the Award Agreement), by the Participant’s designated beneficiary, provided such beneficiary has been designated prior to Participant’s
death in a form acceptable to the Administrator. If no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative of the Participant’s estate or by the person(s) to whom the Option
is transferred pursuant to the Participant’s will or in accordance with the laws of descent and distribution. In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following
Participant’s death. If the Option is not so exercised within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan. 
 (e) Buyout Provisions. The Administrator may at any time offer to buy out for a payment in cash or Shares an Option previously
granted based on such terms and conditions as the Administrator shall establish and communicate to the Participant at the time that such offer is made. 
 8. Restricted Stock. 
 (a) Grant of Restricted Stock. Subject to the terms and
provisions of the Plan, the Administrator, at any time and from time to time, may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion, will determine. Subject to Section 6(c)(ii)
hereof, the Administrator shall have complete discretion to determine (i) the number of Shares subject to a Restricted Stock award granted to any Participant, and (ii) the conditions that must be satisfied, which typically will be based
principally or solely on continued provision of services but may include a performance-based component, upon which is conditioned the grant, vesting or issuance of Restricted Stock. 
 (b) Restricted Stock Agreement. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period
of Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, will determine. Unless the Administrator determines otherwise, Shares of Restricted Stock will be held by the Company as
escrow agent until the restrictions on such Shares have lapsed. 
 (c) Transferability. Except as provided in this
Section 8, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction. 
 (d) Other Restrictions. The Administrator, in its sole discretion, may impose such other restrictions on Shares of Restricted Stock
as it may deem advisable or appropriate. 

 (e) Removal of Restrictions. Except as otherwise provided in this Section 8,
Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period of Restriction. The Administrator, in its discretion, may accelerate the time
at which any restrictions will lapse or be removed. 
 (f) Voting Rights. During the Period of Restriction, Service
Providers holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise. 
 (g) Dividends and Other Distributions. During the Period of Restriction, Service Providers holding Shares of Restricted Stock will
be entitled to receive all dividends and other distributions paid with respect to such Shares unless otherwise provided in the Award Agreement. If any such dividends or distributions are paid in Shares, the Shares will be subject to the same
restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid. 
 (h) Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for which restrictions have not lapsed will revert to the Company and again will become available for grant under the Plan.

 9. Stock Appreciation Rights. 
 (a) Grant of SARs. Subject to the terms and conditions of the Plan, a SAR may be granted to Service Providers at any time and from time to time as will be determined by the Administrator, in its sole
discretion. 
 (b) Number of Shares. Subject to Section 6(c)(i) of the Plan, the Administrator will have complete
discretion to determine the number of SARs granted to any Service Provider. 
 (c) Exercise Price and Other Terms. The
Administrator, subject to the provisions of the Plan, will have complete discretion to determine the terms and conditions of SARs granted under the Plan. 
 (d) Exercise of SARs. SARs will be exercisable on such terms and conditions as the Administrator, in its sole discretion, will determine. 
 (e) SAR Agreement. Each SAR grant will be evidenced by an Award Agreement that will specify the exercise price, the term of the
SAR, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine. 
 (f) Expiration of SARs. An SAR granted under the Plan will expire upon the date determined by the Administrator, in its sole discretion, and set forth in the Award Agreement. Notwithstanding the foregoing, the rules of Sections
7(d)(ii), 7(d)(iii) and 7(d)(iv) also will apply to SARs. 
 (g) Payment of SAR Amount. Upon exercise of an SAR, a
Participant will be entitled to receive payment from the Company in an amount determined by multiplying: 
 (i) The difference
between the Fair Market Value of a Share on the date of exercise over the exercise price; times 
 (ii) The number of Shares
with respect to which the SAR is exercised. 
 At the discretion of the Administrator, the payment upon SAR exercise may be in
cash, in Shares of equivalent value, or in some combination thereof. 
 (h) Buyout Provisions. The Administrator may at
any time offer to buy out for a payment in cash or Shares a Stock Appreciation Right previously granted based on such terms and conditions as the Administrator shall establish and communicate to the Participant at the time that such offer is made.

 10. Performance Units and Performance Shares. 
 (a) Grant of Performance Units/Shares. Subject to the terms and conditions of the Plan, Performance Units and Performance Shares
may be granted to Service Providers at any time and from time to time, as will be determined by the Administrator, in its sole discretion. Subject to Section 6(c)(ii), the Administrator will have complete discretion in determining the number of
Performance Units and Performance Shares granted to each Participant. 
 (b) Value of Performance Units/Shares. Each
Performance Unit will have an initial value that is established by the Administrator on or before the date of grant. Each Performance Share will have an initial value equal to the Fair Market Value of a Share on the date of grant. 
 (c) Performance Objectives and Other Terms. The Administrator will set performance objectives in its discretion which, depending on
the extent to which they are met, will determine the number or value of Performance Units/Shares that will be paid out to the Service Providers. The time period during which the performance objectives must be met will be called the “Performance
Period.” Each Award of Performance Units/ Shares will be evidenced by an Award Agreement that will specify the Performance Period, and such other terms and conditions as the Administrator, in its sole discretion, will determine. The
Administrator may set performance objectives based upon the achievement of Company-wide, divisional, or individual goals, applicable federal or state securities laws, or any other basis determined by the Administrator in its discretion. 

(d) Earning of Performance Units/Shares. After the applicable Performance Period has ended, the holder of Performance
Units/Shares will be entitled to receive a payout of the number of Performance Units/Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives have
been achieved. After the grant of a Performance Unit/Share, the Administrator, in its sole discretion, may reduce or waive any performance objectives for such Performance Unit/Share. 
 (e) Form and Timing of Payment of Performance Units/Shares. Payment of earned Performance Units/Shares will be made as soon after
the expiration of the applicable Performance Period at the time determined by the Administrator. The Administrator, in its sole discretion, may pay earned Performance Units/Shares in the form of cash, in Shares (which have an aggregate Fair Market
Value equal to the value of the earned Performance Units/Shares at the close of the applicable Performance Period) or in a combination thereof. 
 (f) Cancellation of Performance Units/Shares. On the date set forth in the Award Agreement, all unearned or unvested Performance Units/Shares will be forfeited to the Company, and again will be available for
grant under the Plan. 
 11. Restricted Stock Units. Restricted Stock Units shall consist of a Restricted Stock, Performance Share or
Performance Unit Award that the Administrator, in its sole discretion permits to be paid out in installments or on a deferred basis, in accordance with rules and procedures established by the Administrator. 
 12. Other Stock Based Awards. Other Stock Based Awards may be granted either alone, in addition to, or in tandem with, other Awards granted under
the Plan and/or cash awards made outside of the Plan. The Administrator shall have authority to determine the Service Providers to whom and the time or times at which Other Stock Based Awards shall be made, the amount of such Other Stock Based
Awards, and all other conditions of the Other Stock Based Awards including any dividend and/or voting rights. 
 13. Leaves of
Absence. Unless the Administrator provides otherwise, vesting of Awards granted hereunder will be suspended during any unpaid leave of absence and will resume on the date the Participant returns to work on a regular schedule as determined by the
Company; provided, however, that no vesting credit will be awarded for the time vesting has been suspended during such leave of absence. A Service Provider will not cease to be an Employee in 

 
the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent,
or any Subsidiary. For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence
approved by the Company is not so guaranteed, then three months following the 91st day of such leave any Incentive Stock Option held by the
Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option. 
 14.
Non-Transferability of Awards. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution
and may be exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable, such Award will contain such additional terms and conditions as the Administrator deems appropriate. 

15. Adjustments; Dissolution or Liquidation; Merger or Change in Control. 
 (a) Adjustments. In the event that any dividend (excluding an ordinary dividend) or other distribution (whether in the form of
cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or
other change in the corporate structure of the Company affecting the Shares occurs, then the Administrator shall appropriately adjust the number and class of Shares which may be delivered under the Plan, the 162(m) annual share issuance limits under
Section 6(c) of the Plan, and the number, class, and price of Shares subject to outstanding Awards. Notwithstanding the preceding, the number of Shares subject to any Award always shall be a whole number. 
 (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator will
notify each Participant as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for a Participant to have the right to exercise his or her Award, to the extent applicable,
until ten (10) days prior to such transaction as to all of the Awarded Stock covered thereby, including Shares as to which the Award would not otherwise be exercisable. In addition, the Administrator may provide that any Company repurchase
option or forfeiture rights applicable to any Award shall lapse 100%, and that any Award vesting shall accelerate 100%, provided the proposed dissolution or liquidation takes place at the time and in the manner contemplated. To the extent it has not
been previously exercised or vested, an Award will terminate immediately prior to the consummation of such proposed action. 
 (c) Merger or Change in Control. 
 (i) Stock Options and SARS. In the event of a merger or Change in
Control, each outstanding Option and SAR shall be assumed or an equivalent option or SAR substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. With respect to Options and SARs granted to an Outside Director
that are assumed or substituted for, if immediately prior to or after the merger or Change in Control the Participant’s status as a Director or a director of the successor corporation, as applicable, is terminated other than upon a voluntary
resignation by the Participant, then the Participant shall fully vest in and have the right to exercise such Options and SARs as to all of the Awarded Stock, including Shares as to which it would not otherwise be vested or exercisable. Unless
determined otherwise by the Administrator, in the event that the successor corporation refuses to assume or substitute for the Option or SAR, the Participant shall fully vest in and have the right to exercise the Option or SAR as to all of the
Awarded Stock, including Shares as to which it would not otherwise be vested or exercisable. If an Option or SAR is not assumed or substituted in the event of a merger or Change in Control, the Administrator shall notify the Participant in writing
or electronically that the Option or SAR shall be exercisable, to the extent vested, for a period of up to fifteen (15) days from the date of such notice, and the Option or SAR shall terminate upon the expiration of such 

 
period. For the purposes of this paragraph, the Option or SAR shall be considered assumed if, following the merger or Change in Control, the option or stock
appreciation right confers the right to purchase or receive, for each Share of Awarded Stock subject to the Option or SAR immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or other securities or property)
received in the merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority
of the outstanding Shares); provided, however, that if such consideration received in the merger or Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor
corporation, provide for the consideration to be received upon the exercise of the Option or SAR, for each Share of Awarded Stock subject to the Option or SAR, to be solely common stock of the successor corporation or its Parent equal in fair market
value to the per share consideration received by holders of Common Stock in the merger or Change in Control. Notwithstanding anything herein to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance
goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant’s consent; provided, however, a modification to such performance goals only to reflect the successor
corporation’s post-merger or post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption. 
 (ii) Restricted Stock, Performance Shares, Performance Units, Restricted Stock Units and Other Stock Based Awards. In the event of a merger or Change in Control, each outstanding Restricted Stock, Performance
Share, Performance Unit, Other Stock Based Award and Restricted Stock Unit awards shall be assumed or an equivalent Restricted Stock, Performance Share, Performance Unit, Other Stock Based Award and Restricted Stock Unit award substituted by the
successor corporation or a Parent or Subsidiary of the successor corporation. With respect to Awards granted to an Outside Director that are assumed or substituted for, if immediately prior to or after the merger or Change in Control the
Participant’s status as a Director or a director of the successor corporation, as applicable, is terminated other than upon a voluntary resignation by the Participant, then the Participant shall fully vest in such Awards, including Shares as to
which it would not otherwise be vested. Unless determined otherwise by the Administrator, in the event that the successor corporation refuses to assume or substitute for the Restricted Stock, Performance Share, Performance Unit, Other Stock Based
Award or Restricted Stock Unit award, the Participant shall fully vest in the Restricted Stock, Performance Share, Performance Unit, Other Stock Based Award or Restricted Stock Unit including as to Shares which would not otherwise be vested. For the
purposes of this paragraph, a Restricted Stock, Performance Share, Performance Unit, Other Stock Based Award and Restricted Stock Unit award shall be considered assumed if, following the merger or Change in Control, the award confers the right to
purchase or receive, for each Share subject to the Award immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or other securities or property) received in the merger or Change in Control by holders of Common
Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such
consideration received in the merger or Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received, for
each Share and each unit/right to acquire a Share subject to the Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger
or Change in Control. Notwithstanding anything herein to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance goals will not be considered assumed if the Company or its successor modifies any of
such performance goals without the Participant’s consent; provided, however, a modification to such performance goals only to reflect the successor corporation’s post-merger or post-Change in Control corporate structure will not be deemed
to invalidate an otherwise valid Award assumption. 

 16. Date of Grant. The date of grant of an Award will be, for all purposes, the date on which the
Administrator makes the determination granting such Award, or such other later date as is determined by the Administrator. Notice of the determination will be provided to each Participant within a reasonable time after the date of such grant.

 17. Term of Plan. Subject to Section 22 of the Plan, the Plan will become effective upon its adoption by the Board. It will
continue in effect for a term of ten (10) years unless terminated earlier under Section 18 of the Plan. 
 18. Amendment and
Termination of the Plan. 
 (a) Amendment and Termination. The Board may at any time amend, alter, suspend or
terminate the Plan. 
 (b) Stockholder Approval. The Company will obtain stockholder approval of any Plan amendment to
the extent necessary and desirable to comply with Applicable Laws. 
 (c) Effect of Amendment or Termination. Subject
to Section 20 of the Plan, no amendment, alteration, suspension or termination of the Plan will impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in
writing and signed by the Participant and the Company. Termination of the Plan will not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such
termination. 
 19. Conditions Upon Issuance of Shares. 
 (a) Legal Compliance. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the
issuance and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel for the Company with respect to such compliance. 
 (b) Investment Representations. As a condition to the exercise or receipt of an Award, the Company may require the person
exercising or receiving such Award to represent and warrant at the time of any such exercise or receipt that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of
counsel for the Company, such a representation is required. 
 20. Severability. Notwithstanding any contrary provision of the Plan or
an Award to the contrary, if any one or more of the provisions (or any part thereof) of this Plan or the Awards shall be held invalid, illegal or unenforceable in any respect, such provision shall be modified so as to make it valid, legal and
enforceable, and the validity, legality and enforceability of the remaining provisions (or any part thereof) of the Plan or Award, as applicable, shall not in any way be affected or impaired thereby. 
 21. Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, will relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority
will not have been obtained. 
 22. Stockholder Approval. The Plan will be subject to approval by the stockholders of the Company
within twelve (12) months after the date the Plan is adopted. Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws. 
 23. Vesting Acceleration of Awards Upon Death.  
 (a) Stock Options and SARs. 
 (i) Non-Officer Participants. If a Participant
dies while a Service Provider, and at the time of such Participant’s death the Participant is not an Officer, all Shares covered by the unvested portion of each outstanding Option and SAR held by the Participant will immediately accelerate upon
the Participant’s death and become exercisable pursuant to Section 7(d)(iv) hereof. 

 (ii) Officers. If a Participant dies while a Service Provider, and at the time of
such Participant’s death the Participant is an Officer, the Shares covered by the unvested portion of each outstanding Option and SAR held by the Participant as of the Participant’s death will immediately revert to the Plan on the date one
(1) month following the Participant’s death, and the Participant will not be entitled to exercise such Shares pursuant to Section 7(d)(iv) hereof; provided, however, that all Shares covered by the vested portion of the Option or SAR,
as applicable, shall remain exercisable pursuant to Section 7(d)(iv) hereof. 
 (b) Restricted Stock, Performance
Shares, Performance Units, Restricted Stock Units and Other Stock Based Awards. If a Participant dies while a Service Provider, and at the time of such Participant’s death the Participant is not an Officer, then each outstanding Restricted
Stock, Performance Share, Performance Unit, Other Stock Based Award or Restricted Stock Unit held by the Participant upon the Participant’s death will vest, including as to Shares which would not otherwise be vested, and with respect to such
Awards with performance-based vesting, all performance goals or other vesting criteria will be deemed achieved at 100% on-target levels and all other terms and conditions met. Participants who are Officers at the time of their death will not be
entitled to such accelerated vesting.Settlement Agreement and Mutual Release

 Exhibit 10.318 
 CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION 
 SETTLEMENT AGREEMENT AND MUTUAL RELEASE 
 This Settlement Agreement and Mutual Release (“Settlement Agreement”) is entered into by and between Ligand Pharmaceuticals Incorporated (“Ligand”) and The Rockefeller University
(“Rockefeller”) (collectively, the “Parties”). 
 RECITALS 
 A. Rockefeller and Ligand entered into a License Agreement, dated September 30, 1992 (the “Original Agreement”). 

B. Ligand and SmithKline Beecham Corporation (now known as GlaxoSmithKline and referred to herein as “GSK”) entered into a
Research, Development and License Agreement, dated December 29, 1994, as amended or supplemented on March 22, 1995, December 12, 1995, July 21, 1998, February 3, 2000 and February 25, 2000 (the
“GSK Agreement”). 
 C. Rockefeller, as plaintiff, and Ligand, as defendant, have asserted claims and counterclaims
against one another concerning their respective rights and obligations under the Original Agreement in an action pending in the United States District Court for the Southern District of New York, captioned The Rockefeller University v. Ligand
Pharmaceuticals, Inc., 08-Civ-02755 (PKC) (HP) (the “Litigation”). 
 D. In accordance with the provisions of
this Settlement Agreement, Ligand and Rockefeller have reached a settlement and resolution of all disputes that have arisen between them concerning the Original Agreement and the Litigation. 
 NOW, THEREFORE, in consideration of the various promises and undertakings set forth herein, the Parties agree as follows: 
  

	1.	Financial Provisions. 

  

	 	1.1	Initial Payment. Ligand will pay to Rockefeller Five Million Dollars ($5,000,000), payable by wire transfer within [***] ([***]) business days of the Effective Date of this
Settlement Agreement. 

  

	 	1.2	Milestone Payments. Ligand will pay to Rockefeller Two Million Dollars ($2,000,000) in [***] installments, [***] due on or before February 10, 2011. Payments under this
Section 1.2 will be made pursuant to Section 1.8 of this Settlement Agreement. 

  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

	 	1.3	Share of Milestone Payments Received by Ligand Pursuant to the GSK Agreement. Upon receipt by Ligand of any milestone payment pursuant to Section 7.1 of the GSK
Agreement, for an event occurring on and after February 11, 2009 (“GSK Milestone Payment”), Ligand will pay to Rockefeller fifty percent (50%) of any such GSK Milestone Payment. Payments under this Section 1.3
will be made pursuant to Section 1.8 of this Settlement Agreement. 

  

	 	1.4	Share of Royalty Payments Received by Ligand Pursuant to the GSK Agreement. (a) Upon receipt by Ligand of any royalty payment pursuant to Sections 7.2, 7.3, 7.4, 7.5
and/or 7.6 of the GSK Agreement, in connection with the worldwide annual Net Sales (as defined in the GSK Agreement) of Eltrombopag or any other Product or Combination Product (as defined in the GSK Agreement) (“GSK
Royalty”), Ligand will pay to Rockefeller as follows: 

 1. On worldwide annual Net Sales of Eltrombopag or any
other Product or Combination Product (as defined in the GSK Agreement) of up to One and One Half Billion Dollars ($1.5 billion), Ligand will pay five and eighty-eight hundreths percent (5.88%) of any such GSK Royalty received; and 

2. On worldwide annual Net Sales of Eltrombopag or any other Product or Combination Product (as defined in the GSK Agreement) in excess of One and One
Half Billion Dollars ($1.5 billion), Ligand will pay seven percent (7.0%) of any such GSK Royalty received. 
 (b) If Ligand is successful in securing a separate, freestanding agreement between GSK and Rockefeller pursuant to the terms and conditions set forth in Section 1.6, so that Rockefeller is in privity of contract
with GSK as to Rockefeller’s share of the GSK Milestone Payment and GSK Royalty, then the amounts payable to Rockefeller under Section 1.4(a)(1) shall be reduced to [***] percent ([***]%) and the amounts payable to Rockefeller under Section 1.4(a)(2) shall be reduced to [***] percent ([***]%). The royalty percentages set forth in this Section 1.4(b) will only be used to
calculate payments owed to Rockefeller on and after the effective date of a separate, freestanding agreement between GSK and Rockefeller. 
 (c) Payments under this Section 1.4 will be made pursuant to Section 1.8 of this Settlement Agreement. 
  

	 	1.5	 LGD-4665 Net Sales. Within [***] ([***]) days after receipt by Ligand of a payment to Ligand by GSK and/or a third party, Ligand will pay Rockefeller one and
one-half percent (1.5%) of worldwide net sales as defined in the December 17, 2008 License Agreement between Ligand and GSK for LGD-4665 (“LGD-4665 Agreement”). If sales are by Ligand or one of
its Affiliates, within [***] ([***]) days after the reporting of financial results to the SEC by Ligand or one of its Affiliates for each calendar quarter, Ligand will pay Rockefeller one and one-half percent (1.5%) of world-wide net sales as
defined in the LGD-4665 Agreement. In the event that sales are by Ligand or one of its Affiliates and Ligand or one of 

  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 2 

	 	 
its Affiliates does not have any reporting obligations to the SEC, payment under this Section 1.5 will be made within [***] days after the close of any
calendar quarter in which world-wide net sales occur. “Affiliate” shall have the same meaning as set forth in the LGD-4665 Agreement. Payment will be made under this Section 1.5 pursuant to Section 1.8 of this
Settlement Agreement. 

  

	 	1.6	Separate Agreement Between GSK and Rockefeller. (a) Ligand will take responsibility and use diligent efforts, with the participation of Rockefeller as needed, to secure
a separate, freestanding agreement between GSK and Rockefeller which requires payment of Rockefeller’s share of GSK Milestones Payments and GSK Royalties and GSK’s royalties on LGD-4665, described in Sections 1.3, 1.4(a) and 1.5 of this
Settlement Agreement directly from GSK to Rockefeller. Ligand’s designation of a Rockefeller account under Section 9.2 of the GSK Agreement for payment by GSK directly to Rockefeller does not satisfy the requirements of this
Section 1.6. Such separate, freestanding agreement shall include payment terms consistent with and no less favorable than the payment terms described in Sections 1.3, 1.4 and 1.5 of this Agreement. 

 (b) Ligand represents and warrants that the GSK Agreement, including the amendments and letters produced by Ligand to Rockefeller in February 2009
relating thereto, and the LGD-4665 Agreement produced in the Litigation are true, complete and accurate copies of those agreements, and reflect all agreements between GSK and Ligand relating to Eltrombopag or any other Product or Combination Product
(as defined in the GSK Agreement), all agreements between and among Ligand and GSK (including those also involving in addition to Ligand and GSK any other party) relating to LGD-4665, and all amendments to all such agreements as of the Effective
Date of this Agreement. More specifically, Ligand represents that Section 7 of the GSK Agreement reflects all of the financial provisions currently in effect as of the Effective Date of this Agreement and that such financial provisions have not
been amended or changed by any other document or amendment. Ligand agrees that it will not amend, alter or otherwise change or enter into an agreement to amend any of the agreements referenced in this Section 1.6 in any way adversely affects or
diminishes any payments owed to Rockefeller under Sections 1.3, 1.4 and 1.5 of this Agreement. If Ligand amends or enters into an agreement to amend any of the agreements referenced in this Section 1.6 or enters into any new agreement or
transaction which in any way affects payments owed to Ligand, then Ligand guarantees that Ligand shall nonetheless continue to make the payments due to Rockefeller hereunder in the amounts that would have been due absent any such amendment or
agreement. For avoidance of doubt, other than rights assigned to Rockefeller under Section 1.6(c), nothing herein limits Ligand’s ability or right to enter into one or more transactions with any third party relating to Ligand’s rights
under the GSK Agreement and/or the LGD-4665 Agreement. 
  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 3 

 (c) Ligand hereby assigns to Rockefeller all of its rights, title and interests in and to
Rockefeller’s share of the GSK Milestone Payments under Section 1.3, Rockefeller’s share of the GSK Royalty under Section 1.4 and GSK’s royalty on LGD-4665 provided under Section 1.5. Ligand agrees to hold any and all
of these amounts received by Ligand in trust for Rockefeller, agrees to pay such amounts to Rockefeller as set out in the respective Sections 1.3, 1.4 and 1.5, and guarantees the amount and payment of such payments until such time as a separate,
freestanding agreement may be entered into in accordance with Section 1.6(a). 
  

	 	1.7	Quarterly Royalty Reports. Within [***] ([***]) days after receiving a royalty or other report from GSK related to sales of Eltrombopag, other Products or Combination
Products under the GSK Agreement, or LGD-4665, Ligand will send Rockefeller a copy of any such written report or reports, covering the reporting period, which is the calendar quarter then ended along with copies of any bank wire receipts evidencing
payments from GSK to Ligand under the agreements mentioned in Section 1.6 above. 

  

	 	1.8	Mode of Payment. All payments made by Ligand to Rockefeller pursuant to this Settlement Agreement shall be made in U.S. Dollars by wire transfer to an account designated by
Rockefeller, which account Rockefeller may change on [***] ([***]) days’ prior written notice to Ligand. As to payments to Rockefeller under Sections 1.3 and 1.4, Ligand will send a notice to GSK within [***] ([***]) business days after the
Effective Date of this Agreement, designating a Rockefeller account under Section 9.2 of the GSK Agreement, so that Rockefeller’s share of the GSK Milestone Payments and GSK Royalties pursuant to Sections 1.3 and 1.4 will be paid by GSK
directly into the designated Rockefeller account for so long as there is no separate, freestanding agreement between GSK and Rockefeller as described in Section 1.4(b). 

  

	 	1.9	Financial Records. Ligand shall keep accurate records, including, information provided by GSK under the agreements referenced herein and royalty and milestone payments to
Rockefeller (“Financial Records”), in accordance with Ligand’s internal accounting procedures and U.S. generally accepted accounting practices, and in sufficient detail to enable the amounts due under this Settlement
Agreement to be determined and verified by Rockefeller. In no event shall these Financial Records include less than the information reasonably necessary to verify the accuracy of the quarterly royalty reports provided to Rockefeller under
Section 1.7 and the calculations therein. 

  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 4 

	 	1.10	Audit. 

  

	 	a)	Ligand shall make reasonable efforts to confirm the accuracy of the milestone and royalty reports it receives from GSK in connection with sales of Eltrombopag, other Products or
Combination Products under the GSK Agreement, and LGD-4665 [***]. To the extent that any underpayments by GSK are found as a result of Ligand’s review, [***] Ligand shall pay Rockefeller its share of the underpayments, calculated pursuant to
Sections 1.3, 1.4 and 1.5 of this Settlement Agreement. 

  

	 	b)	Ligand shall maintain for not less than [***] ([***]) years from the date of creation, complete and accurate Financial Records and information relating to sales of Eltrombopag,
other Products or Combination Products under the GSK Agreement, and LGD-4665. Upon written request by Rockefeller, not more than once in a calendar year and at Rockefeller’s expense, Rockefeller shall be entitled and Ligand shall permit an
independent certified accountant selected by Rockefeller and reasonably acceptable to Ligand to have access during normal business hours to those Financial Records and such other information that the auditor determines may be reasonably necessary to
verify the accuracy of the quarterly royalty reports provided to Rockefeller under Section 1.7 and the calculations therein, provided that such access shall be limited to prevent the disclosure of any third party confidential information.
Ligand will use diligent efforts to confirm with GSK that any of its relevant confidential information can be provided to Rockefeller and its independent certified accountant. The independent certified accountant shall disclose to Rockefeller
whether the quarterly royalty reports are correct or not and specify whether the amounts paid to Rockefeller pursuant thereto were correct or, if incorrect, the amount of any discrepancy. 

 If the independent certified accountant’s report shows any underpayment, Ligand shall pay the amount of the underpayment to Rockefeller within 30
days after Rockefeller delivers to Ligand its independent certified accountant’s written report indicating the underpayment. If such underpayment exceeds [***] percent ([***]%) of the total amount owed for the calendar year then being audited,
Ligand will pay for the reasonable and necessary fees and expenses of such independent certified accountant performing the audit, subject to reasonable substantiation thereof. 
  

	 	1.11	Interest Due. In case of any delay in payment by Ligand to Rockefeller (including any underpayment determined by an independent certified accountant’s report), interest
on the overdue payment shall accrue at the prime rate, as determined for each month on the last business day of that month, and assessed from the date that payment was due. The foregoing interest shall be due from Ligand without any special notice.

  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 5 

	2	No Additional Payments; Covenant Not to Sue. 

  

	 	2.1	Original Agreement Termination. Ligand and Rockefeller agree that the Original Agreement is hereby terminated as of the Effective Date. Sections 6, 7, 9, 10, and 14 of the
Original Agreement shall survive termination. 

  

	 	2.2	No Additional Payments and Covenants Not to Sue - GSK. So long as this Settlement Agreement is in effect and Rockefeller is receiving timely and full payments hereunder,
(a) Rockefeller acknowledges that no payments other than the payments described in this Settlement Agreement shall be due to Rockefeller from Ligand or from GSK for any past, present or future conduct that was subject to the Original Agreement
or that would otherwise be due to Rockefeller in connection with Eltrombopag, other Products or Combination Products under the GSK Agreement, or in connection with LGD-4665 under the LGD-4665 Agreement; (b) Rockefeller covenants not to sue GSK
for exercising its rights, or fulfilling its obligations, under the GSK Agreement or the LGD-4665 Agreement, in the past, present or future; and (c) Rockefeller will not grant to any third party any licenses under the Licensed Patent Rights or
Technical Information as defined in the Original Agreement, except to not-for-profit institutions for research under material transfer agreements, and provided, however, that Rockefeller shall have no obligation to maintain or keep in force any
patent or patent application within the definition of Licensed Patent Rights of the Original Agreement. Subject only to the Cure Period set forth in Section 2.4, the covenants under this Section 2.2, and Section 2.3 below, shall
terminate immediately upon a breach of any payment obligations under this Agreement. 

  

	 	2.3	Covenant Not to Sue –Sublicensees of Ligand Other Than GSK. So long as this Settlement Agreement is in effect and Rockefeller is receiving timely and full payments
hereunder, (a) Rockefeller covenants not to sue Ligand for any past, present or future uses of the Licensed Patent Rights or Technical Information as defined in the Original Agreement, where such uses were permitted by, or sublicensed pursuant
to, the Original Agreement; and (b) Rockefeller further covenants not to sue licensees, collaborators or assignees of Ligand which are specifically identified in the Form 8K, filed by Ligand on February 9, 2009, or in any Form 10K or Form
10Q, filed by Ligand between February 10, 2008 and the Effective Date, for any past, present or future use of rights licensed from Ligand under the Original Agreement to such licensees, collaborators or assignees pursuant to a written agreement
signed by all parties thereto prior to the Effective Date of this Settlement Agreement. Ligand covenants not to sue Rockefeller or challenge any of Rockefeller’s know-how that was the subject of the Original Agreement and/or the Litigation.

  

	 	2.4	Cure Period. In the event that Ligand does not make timely and/or full payments under Sections 2.2 or 2.3 of this Settlement Agreement, Rockefeller will provide written
notice and [***] ([***]) business days to cure. If Ligand cures such defect within the notice period, such payment shall be considered timely for purposes of Sections 2.2 or 2.3, but Ligand shall be responsible for interest under Section 1.11.

  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 6 

	3	Warranties and Representations by Each Party. Each Party represents and warrants to the other Party that, as of the Effective Date: 

 (a) it is a corporation or entity duly organized and validly existing under the laws of the jurisdiction in which it is incorporated; 
 (b) it has full corporate or institutional power and authority, and has obtained all approvals, permits and consents necessary, to enter into this
Agreement and to perform its obligations hereunder; 
 (c) this Settlement Agreement is legally binding upon it and enforceable in accordance
with its terms; 
 (d) the execution, delivery and performance of this Settlement Agreement does not conflict with any agreement, instrument
or understanding, oral or written, to which it is a party or by which it may be bound, nor violate any material law or regulation of any governmental or regulatory authority having jurisdiction over it; and 
 (e) the individual signatories to this Settlement Agreement are fully authorized to enter this Settlement Agreement on behalf of their respective
institutions. 
  

	4	Publicity Regarding Settlement: News Release. 

  

	 	4.1	Characterization of Settlement. Ligand and Rockefeller agree that in characterizing or describing the settlement and resolution of the Litigation, including the terms and
conditions of this Settlement Agreement, neither party will make any statements to third parties that such party has been successful, attained a victory or prevailed in the Litigation or make any characterization to that effect. Rockefeller and
Ligand acknowledge that this Settlement Agreement is the product of a compromise, a good outcome for both parties and that neither of them has attained a victory or prevailed in the Litigation. 

  

	 	4.2	Press Release; SEC Filings. Ligand shall, within four (4) business days after the Effective Date of this Settlement Agreement, issue a mutually agreed upon press release
in the form to be proposed by Ligand and subject to Rockefeller’s prior written approval, not to be unreasonably withheld. In the event Rockefeller does not provide its written approval within one (1) business day after receipt from Ligand
of the draft press release, Ligand may issue such press release in furtherance of its disclosure obligations as a publicly traded company. Ligand represents that it is obligated to file a Current Report on Form 8-K in connection with the execution
of this Settlement Agreement, and Rockefeller acknowledges that representation. 

  

 7 

	5	Mutual Release of Claims. Each party acknowledges and agrees that it has made an acceptable investigation of the facts pertaining to this settlement, this Settlement
Agreement and the matters pertaining thereto. In consideration of the various promises and undertakings, obligations, warranties and representations of each of the parties to this Settlement Agreement, and contingent upon each Party’s timely
performance of them, Rockefeller and Ligand each hereby releases and forever discharges the other, and each of their stockholders, affiliates, predecessors, successors, directors, trustees, officers, faculty, employees, lawyers, accountants and
other representatives, from any and all liability whatever, including all claims, demands and causes of action, of every nature, known or unknown including, without limitation, any claims for breach of contract, declaratory relief,
misrepresentation, inequitable conduct, or any other form of damage or theory of recovery whatsoever from the beginning of time until the Effective Date, arising out of, based upon or relating to (a) the Original Agreement, (b) the
disputes, claims and counterclaims in the Litigation, as well as any compulsory counterclaims that could have been properly pled and tried in the Litigation, (c) Eltrombopag, LGD-4665, and any TPO or other compound developed by Ligand alone or
with a third party, which compound was subject to the Original Agreement and (d) all payments “made under protest” by Ligand to Rockefeller pursuant to Section 2.4 of the Original Agreement. Rockefeller and Ligand shall bear
their own attorneys’ fees and costs incurred in connection with the Litigation and this Settlement Agreement. 

 With
respect to the subjects above, each of the Parties recognizes and understands that this release applies to and covers the claims and counterclaims in the Litigation. Each of Rockefeller and Ligand (a) expressly waives any right to claim or
assert hereafter that any claim, counterclaim, demand or cause of action has been omitted, through ignorance, oversight or error, from this Settlement Agreement; and (b) makes this waiver with the full knowledge of their respective rights and
with specific intent to release both known and unknown claims. This release is intended to include in its effect, without limitation, all claims or counterclaims which each of Rockefeller or Ligand does not know or suspect to exist at the time of
execution hereof, and this release extinguishes any such claims or counterclaims. 
  

	6	Dismissal of Litigation. Within five business days after the Effective Date of this Settlement Agreement, the parties shall jointly file a Stipulation and proposed Order of
Dismissal with the United States District Court for the Southern District of New York, in the form attached hereto as Exhibit A. The parties agree that the purpose of such filing is to effect a dismissal of the Litigation, with prejudice,
including, without limitation, a dismissal of all claims and counterclaims asserted in the Litigation. Each party shall bear its own costs and attorneys’ fees with respect to the Litigation. Should the Court be unwilling, for whatever reason,
to enter the Stipulation and proposed Order of Dismissal in the form proposed, the parties agree to work together, in good faith, to cause the Litigation to be dismissed with prejudice. 

  

	7	 Confidentiality. (a) The confidentiality restrictions of the Stipulated Protective Order, filed August 8, 2008, will continue to govern all
confidential information disclosed in connection with the Litigation and negotiations leading up to the Litigation, except that the obligation of confidentiality will expire after [***] ([***]) years from the Effective Date of this Settlement
Agreement. (b) All confidential scientific, technical, and business information communicated by one party to the other in 

  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 8 

	 	 
connection this Settlement Agreement, including information contained in patent applications and royalty reports, shall be kept confidential by the
recipient, which shall take all reasonable steps to ensure that such confidential information is not disclosed or used for any purpose other than those contemplated by the Original Agreement or this Settlement Agreement. This confidentiality
obligation does not apply when it can be established by the recipient that (i) the information was previously known to the recipient; (ii) the information is or becomes generally available to the public through no fault of the recipient,
including as a result of publications and/or laying open to inspection of any patent applications that the disclosing party may file; (iii) the information is acquired in good faith in the future by the recipient from a third party who is not
under an obligation to the disclosing party to keep such information confidential; (iv) the information is required by a court or other tribunal of competent jurisdiction to be disclosed by the recipient, provided that in the event that the
recipient receives a demand for such disclosure, the recipient shall promptly give notice to the disclosing party to allow it to seek a protective order or other remedy from said court or tribunal; and in any event, the recipient shall disclose only
that portion of the confidential information that is legally required to be disclosed and will exercise reasonable efforts to ensure that the information is accorded confidential treatment; (v) the information is required to be disclosed as
otherwise required by law; or (vi) the disclosing party consents to use or disclosure by the recipient. The obligations imposed in this Section 7 will run for a period of [***] ([***]) years commencing from the date of the disclosure of
the confidential information at issue. For the avoidance of doubt, notwithstanding anything to the contrary herein, nothing in this Settlement Agreement shall: (a) prevent the Parties from making the press release or SEC filings described in
Section 4.2 above; or (b) obligate either Party to disclose confidential information of a third party. 

  

	8	Governing Law; Venue. This Settlement Agreement and its effect are subject to and shall be construed and enforced in accordance with the laws of the State of New York,
without regard to conflict of laws rules. The venue for resolution of any disputes shall be in the United States District Court for the Southern District of New York. 

  

	9	Notices. Any notice, payments, and reports, except as otherwise set forth in this Settlement Agreement, shall be made by personal delivery or, if by mail, then by registered
or certified mail, return receipt requested, with postage and fees prepaid, or by overnight mail, by one Party to the other Party at the addresses noted below. 

 In the case of Ligand, notice should be sent to: 
 Ligand Pharmaceuticals Incorporated 
 10275 Science Center Drive 
 San Diego, CA 92121 
 Attn: General Counsel

 In the case of Rockefeller, notice should be sent to: 
 The Rockefeller University 
 1230 York
Avenue, Box 81 
 New York, NY 10021 
 Attn: Office of the General Counsel 
 or to such other person or by such other means to which the Parties may from time to time have
agreed. 
  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 9 

	 	10	Binding Effect on Successors and Assigns; Notice of Transaction. The terms of this Settlement Agreement, including the rights and obligations herein shall inure to the
benefit of and be binding upon Rockefeller and Ligand and the respective successors and assigns of each Party. In the event that Ligand enters into a transaction that affects any payments due to Ligand as to which Rockefeller has a right to a share
of such payments under this Settlement Agreement, Ligand will provide written notice to Rockefeller within [***] ([***]) business days of the transaction. 

  

	 	11	Entire Agreement: Integration. The terms and conditions of this Settlement Agreement, including the attached Exhibit, constitute the entire agreement between Rockefeller and
Ligand regarding the Litigation and supersede all prior negotiations, representations, letters of intent, agreements and understandings, either or in writing, between Rockefeller and Ligand regarding the Litigation and settlement thereof. This
Settlement Agreement shall not be amended, supplemented or abrogated other than by a written instrument signed by the authorized representative of each party. 

  

	 	12	No Waiver. The failure of either party to enforce at any time any of the provisions of this Settlement Agreement, or any rights in respect of it, or to exercise any election
provided in it, shall in no way be considered to be a waiver of such provisions, rights or elections, and shall in no way affect the validity of this Settlement Agreement. 

  

	 	13	Compromise And Settlement. This Settlement Agreement is entered into solely by way of compromise and settlement of the Litigation and all disputes between Ligand and
Rockefeller as of the Effective Date and is not and shall not be construed as an admission of liability, responsibility or fault by either party. 

  

	 	14	Counterparts. This Settlement Agreement may be executed in one or more counterparts or facsimile versions by each Party and their attorneys, each of which shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement. 

  

	 	15	Effective Date. The “Effective Date” of this Settlement Agreement shall be the last date on which this Settlement Agreement has been signed by both Parties.

  

	 	16	Headings. The headings used in this Settlement Agreement are inserted for reference only and shall not be deemed to be a part of the text. 

  

	 	17	Additional Assurances. Ligand and Rockefeller agree to execute, acknowledge and deliver such further instruments, and to do such other acts, as may be reasonably necessary in
order to carry out the intent and purposes of this Settlement Agreement. 

  

	***	Certain information on this page has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 10 

	18	Severability of Provisions. The invalidity or unenforceability of any provision of this Settlement Agreement shall in no way affect the validity or enforceability of any
other provision of this Settlement Agreement, unless the absence of such provision is a material term to this Settlement Agreement. If the provision is a material term to this Settlement Agreement, the parties agree to negotiate in good faith to
reach a compromise, and if a compromise cannot be reached, the parties agree to submit the dispute for resolution by the Court in the Litigation. 

  

 11 

	19	Drafting. Each party acknowledges and affirms that the parties have cooperated in drafting and preparation of this Settlement Agreement. Hence, in any construction of this
Settlement Agreement, the same shall not be construed against any party. 

  

									
	Dated: February 11, 2009	 		 	LIGAND PHARMACEUTICALS INCORPORATED
					
		 		 		 	By:	 	/s/ John L. Higgins
		 		 		 	Its:	 	Chief Executive Officer

  

									
	Dated: February 11, 2009	 		 	THE ROCKEFELLER UNIVERSITY 
					
		 		 		 	By:	 	/s/ Harriett S. Rabb
		 		 		 	Its:	 	Vice President and General Counsel

  

 12 

 Exhibit A 
 IN THE UNITED STATES DISTRICT COURT 
 FOR THE SOUTHERN DISTRICT OF NEW YORK 
  

			
	 THE ROCKEFELLER UNIVERSITY, a
 New York not-for-profit
corporation,
  
 Plaintiff,
  
 v.
  
 LIGAND PHARMACEUTICALS
 INCORPORATED, a Delaware corporation,
  
 Defendant.
	  	 08-CV-2755 (PKC) (HP)
  
 STIPULATION AND ORDER
 OF DISMISSAL

 IT IS HEREBY STIPULATED AND AGREED, by and between the Parties, The Rockefeller University
(“Rockefeller”) and Ligand Pharmaceuticals Incorporated (“Ligand”) (collectively “the Parties”) as follows: 
 1. The Parties have agreed to settle the above-captioned action according to the terms of a Settlement Agreement and Mutual Release, dated February 11, 2009. 
 2. All claims asserted in Rockefeller’s Complaint filed in this action are dismissed with prejudice. 
 3. All affirmative defenses and counterclaims set forth in Ligand’s Answer and Counterclaims and First Amended Answer and Counterclaims are
dismissed with prejudice. 
 4. Each party shall bear its own costs and fees, including attorneys’ fees. 
 5. This Court has reviewed the Parties’ Settlement Agreement and Mutual Release and shall retain jurisdiction over this action, including, without
limitation, for implementation or resolution of disputes arising out of this Stipulation and Order of Dismissal and the settlement of this action. 
  

 13 

									
		 		 		 	FOLEY & LARDNER LLP
					
	Dated:	 		 		 	By:	 	 
		 		 		 		 	 Peter N. Wang (PW 9216)
 Douglas S. Heffer (DH-6082)

 90 Park Avenue
 New York, New York 10016-1314
 Tel: (212) 682-7474
 Fax: (212) 687-2329

					
		 		 		 		 	 Anat Hakim (AH-4398)
 111 North Orange
Avenue
 Suite 1800
 Orlando, FL 32801-2386
 Tel: (407) 244-3279
 Fax: (407) 648-1743
  
 Attorneys for Plaintiff

  

 14 

									
		 		 	GREENBERG TRAURIG, LLP
					
	Dated:	 		 		 	By:	 	 
		 		 		 		 	 Simon Miller (SM-6728)
 200 Park Avenue
 New York, New York 10166
 (212) 801-9200
     -and-

					
		 		 		 		 	 KNOBBE MARTENS, OLSON & BEAR, LLP
 Darrell
Olson
 2040 Main Street, 14th Floor
 Irvine, CA 92614

(949) 760-0404

					
		 		 		 		 	 KNOBBE MARTENS, OLSON & BEAR, LLP
 Joseph M.
Reisman
 Gregg I. Anderson
 550 West C Street
 Suite 1200
 San Diego, CA 92101

					
		 		 		 		 	Attorneys for Defendant

 IT IS SO ORDERED. 
 Dated: February ___, 2009 
  

	
	
	  
	HONORABLE P. KEVIN CASTEL
	UNITED STATES DISTRICT COURT JUDGE

  

 15

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