Document:

EX-10.17

 Exhibit 10.17 

INDEMNIFICATION AGREEMENT 

THIS AGREEMENT is made as of this
                 day of
                        , 2020. 

B E T W E E N: 
 AbCellera Biologics
Inc., a corporation incorporated under the Business Corporations Act (British Columbia) 
 (the “Company”) 

- and - 
 [•] 

(the “Indemnified Party”) 

RECITALS: 
  

	A.	 The Business Corporations Act (British Columbia) (the “BCBCA”) permits, and in some
cases requires, the Company to indemnify individuals who are or were directors and/or officers of the Company, or who act or acted at the Company’s request as directors and/or officers or in a similar capacity of other entities (an
“Other Entity”, a term which, for the purposes of this indemnification agreement (the “Agreement”) shall include a corporation or other entity that becomes an Other Entity in the future). In this Agreement:

  

	 	(i)	 each such individual, duly elected or appointed as a director and/or officer, including acting in a capacity
similar to a director and/or officer of an Other Entity and including an individual who has ceased to be a director and/or officer or to act in any such capacity, is referred to as a “Director” and/or “Officer”, as appropriate;

  

	 	(ii)	 unless the context otherwise requires, words importing the singular include the plural and vice versa and words
importing gender include all genders; and 

  

	 	(iii)	 unless otherwise indicated, references to sections are to sections in this Agreement; 

 

	B.	 The Indemnified Party is at present a Director or Officer or both of the Company; 

 

	C.	 The Company and the Indemnified Party wish to enter into this Agreement, and in so doing affirm that they
intend that all the provisions of this Agreement be given legal effect to the full extent permitted by applicable law. 

 NOW THEREFORE for good and valuable consideration (the receipt and sufficiency of
which are hereby acknowledged), the parties agree as follows: 
  

	1.	 Subject to Sections 2 and 3, the Company agrees to indemnify and save harmless the Indemnified Party:

 1.1 from and against all costs, charges and expenses reasonably incurred by the Indemnified Party in respect of any
civil, criminal, administrative, investigative or other proceeding to which the Indemnified Party is involved by reason of being or having been a Director and/or Officer; and 

1.2 to the extent such costs, charges and expenses are not otherwise paid by the Company or Other Entity, as appropriate, from and against all
costs, charges and expenses that the Indemnified Party may reasonably incur as a result of carrying out duties as a Director and/or Officer in respect of the Indemnified Party’s reasonable and necessary travel, lodging or accommodation costs,
charges or expenses. 
  

	2.	 Indemnification under Section 1 shall be made only if the Indemnified Party: 

2.1 acted honestly and in good faith with a view to the best interests of either the Company or the Other Entity, as the case may be; and 

2.2 in the case of a criminal or administrative proceeding, the Indemnified Party had reasonable grounds for believing that the Indemnified
Party’s conduct was lawful. 
 Sections 2.1 and 2.2 are referred to in this Agreement as the “Standards of
Conduct”. For the purposes of the Standards of Conduct and this Agreement generally: 
  

	 	(a)	 for the purposes of any determination hereunder, the Indemnified Party will be deemed, subject to compelling
evidence to the contrary, to have acted in good faith and in the best interests of the Company or any Other Entity. The Company will have the burden of establishing the absence thereof; 

 

	 	(b)	 the knowledge and/or actions, or failure to act, of any other director, officer, agent or employee of the
Company or any Other Entity will not be imputed to the Indemnified Party for the purposes of determining the right to indemnification under this Agreement; 

  

	 	(c)	 the Company will have the burden of establishing that any amount it wishes to challenge is not reasonable; and

  

	 	(d)	 the termination of any proceeding by judgment, order, settlement, conviction or upon a plea of nolo
contendre or its equivalent shall not, of itself, create a presumption that the Indemnified Party is not entitled to indemnification under this Agreement. 

 

	3.	 In respect of an action by or on behalf of the Company or an Other Entity to procure a judgment in its favour
to which the Indemnified Party is made a party by reason of being or having been a Director and/or Officer, indemnification under Section 1 shall be made only after obtaining approval of the court having jurisdiction, provided that the Company
shall or shall cause such Other Entity to seek and use all reasonable efforts to obtain that approval as soon as reasonably possible in the circumstances. 

  
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	4.	 For the purposes of this Agreement: 

4.1 “proceeding” shall include a claim, demand, suit, action, proceeding or investigation, whether threatened in writing,
pending, commenced, continuing or completed, and any appeal or appeals therefrom; 
 4.2 “costs, charges and expenses” shall
include: 
 4.2.1 subject to Section 10, an amount paid to settle an action or satisfy a judgment, except in respect of an action to
which Section 3, above, is applicable; 
 4.2.2 a fine, penalty, levy or charge paid to any domestic or foreign government (federal,
provincial, municipal or otherwise) or to any regulatory authority, agency, commission or board of any domestic or foreign government, or imposed by any court or any other law, regulation or rule-making entity having jurisdiction in the relevant
circumstances (collectively, a “Governmental Authority”), including as a result of a breach or alleged breach of any statutory or common law duty imposed on directors or officers or of any law, statute, rule or regulation or of any
provision of the articles or any resolution of the Company or an Other Entity; 
 4.2.3 an amount paid to satisfy a liability arising as a
result of the failure of the Company or an Other Entity to pay wages, vacation pay and any other amounts that may be owing to employees or to make contributions that may be required to be made to any pension plan, retirement income plan or other
benefit plan for employees or to remit to any Governmental Authority payroll deductions, income taxes or other taxes, or any other amounts payable by the Company or an Other Entity; 

4.2.4 reasonable legal costs on a solicitor and his own client basis, including those incurred in enforcing the Indemnified Party’s rights
under this Agreement; 
 4.2.5 costs, transcript costs, fees of experts, travel expenses, duplicating costs, printing and binding costs,
telephone charges, postage, delivery service fees, and all other out-of-pocket disbursements or expenses of the types customarily incurred in connection with
prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a proceeding or an appeal resulting from a proceeding; and 

4.3 the Indemnified Party shall be considered to be “involved” in any proceeding if the Indemnified Party has any
participation whatsoever in such proceeding, including merely as a witness. 

  
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	5.	 Upon the Indemnified Party becoming aware of any proceeding which may give rise to indemnification under this
Agreement, the Indemnified Party shall give written notice to the Company, directed to its (a) Chief Executive Officer and (b) Chief Financial Officer as soon as is practicable, provided however that failure to give notice in a timely
fashion shall not disentitle the Indemnified Party to indemnification unless the Company suffers actual prejudice by reason of the delay. 

  

	6.	 The Company may conduct any investigation it considers appropriate of any proceeding of which it receives
notice under Section 5, and shall pay all costs of that investigation. 

  

	7.	 The parties wish to facilitate the payment by the Indemnified Party of ongoing costs in connection with matters
for which indemnification under this Agreement is provided. Accordingly, the parties agree as follows: 

 7.1 subject to
Section 7.2, the Company shall, upon demand, make advances (“Expense Advances”) to the Indemnified Party of all reasonable amounts for which the Indemnified Party seeks indemnification under this Agreement before the final
disposition of the relevant proceeding. In connection with such demand, the Indemnified Party shall provide the Company with a written affirmation of the Indemnified Party’s good faith belief that the Indemnified Party has met the Standards of
Conduct, along with sufficient particulars of the costs, charges and expenses to be covered by the proposed Expense Advance to enable the Company to make an assessment of their reasonableness; 

7.2 the Company shall make Expense Advances to the Indemnified Party in accordance with the provisions of the BCBCA; and 

7.3 the Indemnified Party shall execute a separate undertaking which shall set out the Indemnified Party’s acknowledgement and agreement
to repay to the Company, upon demand, all Expense Advances in the event that it is subsequently determined by a judgment of a court that the Indemnified Party has not met the Standards of Conduct. 

 

	8.	 The indemnities in Section 1 shall not apply in respect of any proceeding initiated by the Indemnified
Party: 

 8.1 against the Company or an Other Entity, unless it is brought to establish or enforce any right under this
Agreement, any other right of indemnity or in connection with any directors’ and officers’ liability insurance or similar policy; 

8.2 against any Director or Officer unless the Company or the Other Entity, as the case may be, has joined in or consented to the initiation of
such proceeding; or 
 8.3 against any other corporation, partnership, trust, joint venture, unincorporated entity or person, unless it is a
counterclaim. 

  
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 9. Notwithstanding any provision in this Agreement to the contrary, the Company shall not be
obligated under this Agreement to provide the indemnities in Section 1: 
 9.1 to indemnify for amounts otherwise indemnifiable
hereunder (or for which advancement is provided hereunder) if and to the extent that the Indemnified Party has otherwise actually received such amounts under any insurance policy, contract, agreement or otherwise; provided that the foregoing shall
not affect the rights of the Indemnified Party or the Secondary Indemnitors as set forth in Section 12 and Section 16.3; 
 9.2 to
indemnify for an accounting of profits made from the purchase and sale (or sale and purchase) by the Indemnified Party of securities of the Company within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or
similar provisions of state statutory law or common law, or from the purchase or sale by the Indemnified Party of such securities in violation of Section 306 of the Sarbanes Oxley Act of 2002, as amended; or 

 

	 	9.3	 to provide any indemnification or advancement of costs, charges and expenses that is prohibited by applicable
law (as such law exists at the time payment would otherwise be required pursuant to this Agreement). 

  

	10.	 The Company shall be entitled to participate, at its own expense, in the defence of the Indemnified Party in
any proceeding. If the Company so elects after receipt of notice of a proceeding, or the Indemnified Party in that notice so directs, the Company shall assume control of the negotiation, settlement or defence of the proceeding, in which case the
defence shall be conducted by counsel chosen by the Company and reasonably satisfactory to the Indemnified Party. If the Company elects to assume control of the defence, the Indemnified Party shall have the right to participate in the negotiation,
settlement or defence of the proceeding and to retain counsel to act on the Indemnified Party’s behalf, in which case the Company shall reimburse the Indemnified Party for any fees and disbursements of that counsel if a conflict of interest has
arisen between the Company and the Indemnified Party. Notwithstanding anything contained herein, the Company shall not be responsible for fees and expenses of more than one counsel in each applicable jurisdiction separate from counsel for the
Company for all Directors and Officers in connection with any action or separate but similar or related actions arising out of the same general allegations or circumstances. The Indemnified Party and the Company shall cooperate fully with each other
and their respective counsel in the investigation related to, and defence of, any proceeding and shall make available to each other all relevant books, records, documents and files and shall otherwise use their best efforts to assist each
other’s counsel to conduct a proper and adequate defence. 

  

	11.	 In respect of the settlement of any proceeding, the parties agree as follows: 

11.1 the Company may not, without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld or
delayed) enter into an agreement to settle any proceeding involving the Indemnified Party; 
 11.2 if the Indemnified Party refuses after
requested by the Company, acting reasonably, to give consent to the terms of a proposed settlement in accordance with Section 11.1 which is otherwise acceptable to the Company, the Company may require the Indemnified Party to negotiate or
defend the proceeding independently of the Company. In that case, any amount recovered by the claimant in excess of the amount for which settlement could have been made by the Company shall not be recoverable under this Agreement, and the Company
will only be responsible for costs, charges and expenses up to the time at which settlement could have been made; 

  
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 11.3 the Company shall not be liable for any settlement of any proceeding effected without
its prior written consent (which consent shall not be unreasonably withheld or delayed); 
 11.4 the Indemnified Party shall have the right
to negotiate a settlement in respect of any proceeding, provided that unless the Company has approved the settlement, the Indemnified Party shall pay any compensation or other payment to be made under the settlement and the costs of negotiating and
implementing the settlement, and shall not seek indemnity from the Company in respect of such compensation, payment or costs; and 
 11.5 the
settlement of a proceeding shall not create a presumption that the Indemnified Party did not meet or would not have met the Standards of Conduct. 
  

	12.	 Should any payment made pursuant to this Agreement, including the payment of insurance premiums or any payment
made by an insurer under an insurance policy, be deemed to constitute a taxable benefit or otherwise be or become subject to any tax or levy, then the Company shall pay any amount as may be necessary to ensure that the amount received by or on
behalf of the Indemnified Party, after the payment of or withholding for such tax, fully reimburses the Indemnified Party for the actual cost, expense or liability incurred by or on behalf of the Indemnified Party. 

 

	13.	 Each of the provisions contained in this Agreement is distinct and severable and a declaration of invalidity or
unenforceability of any such provision or part thereof by a court of competent jurisdiction shall not affect the validity or enforceability of any other provision hereof. To the extent permitted by applicable law, the parties waive any provision of
law which renders any provision of this Agreement invalid or unenforceable in any respect. The parties shall engage in good faith negotiations to replace any provision which is declared invalid or unenforceable with a valid and enforceable
provision, the economic effect of which comes as close as possible to that of the invalid or unenforceable provision which it replaces. 

  

	14.	 This Agreement shall be governed by and construed in accordance with the laws of the Province of British
Columbia and the laws of Canada applicable therein. 

  

	15.	 The obligations of the Company under this Agreement, other than under Section 16, shall continue until the
later of: 

  

	 	(i)	 six (6) years after the Indemnified Party ceases to be a director or officer of the Company or any Other
Entity; and 

  

	 	(ii)	 one (1) year after the final termination of all proceedings with respect to which the Indemnified Party is
entitled to claim indemnification under this Agreement. 

  
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	16.	 In respect of insurance and right to indemnification from other parties, the parties agree as follows:

 16.1 The Company shall use its reasonable best efforts to ensure that it has in place at all times a directors’ and
officers’ liability insurance policy no less favourable to the Indemnified Party (and that has been approved by the Board) under which the Indemnified Party is covered in his or her capacity as a current or former director or officer of the
Company or its subsidiaries. In the event the Company is sold or enters into any business combination as a result of which the directors’ and officers’ liability insurance policy is terminated and not replaced with a substantially similar
policy applicable to the Indemnified Party, the Company shall use its reasonable best efforts to cause run off “tail” insurance to be purchased for the benefit of the Indemnified Party with substantially the same coverage for not less than
a six (6) year term following such termination. The Company shall provide to the Indemnified Party a copy of each policy of insurance providing the coverages contemplated by this section forthwith after coverage is obtained, and
shall forthwith notify the Indemnified Party if the insurer cancels, makes material changes to coverage or refuses to renew coverage (or any part of the coverage). In the event that an Indemnified Party is subject to a deductible under any insurance
policy contemplated by this Section 16.1, the Company shall pay such deductible for and on behalf of the Indemnified Party. 
 16.2 In
the event that the Director or Officer is covered under a separate insurance policy, that shall not avoid the need for a Company policy under Section 16.1, but the Company shall provide to the Indemnified Party a copy of such policy of
insurance forthwith after coverage is obtained, and shall forthwith notify the Indemnified Party if the insurer cancels, makes material changes to coverage or refuses to renew coverage (or any part of the coverage). In the event that an Indemnified
Party is subject to a deductible under any such insurance policy contemplated by this Section 16.2, the Company shall pay such deductible for and on behalf of the Indemnified Party. 

16.3 The Company hereby acknowledges that the Indemnified Party may have certain rights to indemnification, advancement of costs, charges and
expenses and/or insurance provided by an entity or entities other than the Company (collectively, the “Secondary Indemnitors”). The Company hereby agrees (i) that it is the indemnitor of first resort (i.e., its
obligations to the Indemnified Party are primary and any obligation of the Secondary Indemnitors to advance costs, charges and expenses or to provide indemnification for the same costs, charges and expenses or liabilities incurred by the Indemnified
Party are secondary), (ii) that it shall be required to advance the full amount of costs, charges and expenses incurred by the Indemnified Party and shall be liable for the full amount of all costs, charges and expenses, judgments, penalties, fines
and amounts paid in settlement to the extent legally permitted and as required by the terms of this Agreement (or any other agreement between the Company and the Indemnified Party), without regard to any rights the Indemnified Party may have against
the Secondary Indemnitors, and (iii) that it irrevocably waives, relinquishes and releases the Secondary Indemnitors from any and all claims against the Secondary Indemnitors for contribution, subrogation or any other recovery of any kind in
respect thereof. The Company further agrees that no advancement or payment by the Secondary Indemnitors on behalf of the Indemnified Party with respect to any claim for which the Indemnified Party has sought indemnification from the Company shall
affect the foregoing and the Secondary Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of the Indemnified Party against the Company. The Company and
the Indemnified Party agree that the Secondary Indemnitors are express third party beneficiaries of the terms of this Section 16.3. 

  
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 16.4 Except as provided in Section 16.3 above, in the event of any payment under this
Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnified Party (other than against the Secondary Indemnitors), who shall execute all papers required and take all action necessary to
secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights. 

16.5 Except as provided in Section 16.3 above, the Company’s obligation to provide indemnification or advancement hereunder to the
Indemnified Party who is or was serving at the request of the Company as a director, manager, partner, officer, employee, agent or trustee of any Other Entity shall be reduced by any amount the Indemnified Party has actually received as
indemnification or advancement from such Other Entity. 
  

	17.	 The Indemnified Party acknowledges having been advised to obtain independent legal advice with respect to
entering into this Agreement, has obtained such independent legal advice or has expressly determined not to seek such advice, and that the Indemnified Party is entering into this Agreement with full knowledge of the contents hereof, of the
Indemnified Party’s own free will and with full capacity and authority to do so. 

  

	18.	 Except as expressly provided in this Agreement, no amendment or waiver of this Agreement shall be binding
unless executed in writing by the party to be bound thereby. No waiver of any provision of this Agreement shall constitute a waiver of any other provision nor shall any waiver of any provision of this Agreement constitute a continuing waiver unless
otherwise expressly provided. 

  

	19.	 This Agreement shall enure to the benefit of the Indemnified Party and the Indemnified Party’s heirs,
administrators, executors and personal representatives and shall be binding upon the Company and its successors. 

  

	20.	 This Agreement shall not operate to abridge or exclude any other rights, in law or in equity, to which the
Indemnified Party or the Company may be entitled. The right to be indemnified or to the reimbursement or advancement of costs, charges and expenses pursuant to this Agreement is intended to be retroactive and shall be available with respect to
events occurring prior to the execution hereof. For greater certainty, the rights of the Indemnified Party hereunder shall vest irrevocably with respect to all activities of the Indemnified Party as a Director or Officer, as and from the date on
which the Indemnified Party first became a director or officer of the Company or any Other Entity. 

  
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	21.	 The Company and the Indemnified Party hereby acknowledge and agree that upon execution of this Agreement, any
previous indemnity agreement entered into between the Company and the Indemnified Party (the “Previous Indemnity Agreement”) is terminated and no longer in force and effect and that this Agreement supersedes the Previous Indemnity
Agreement and any other previous agreements between the parties hereto relating to the subject matters hereof. 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement. 

 

									
	 INDEMNIFIED PARTY
	 		 	 ABCELLERA BIOLOGICS INC.

				
	 	 		 	 by:
	 	 
		 	 Name:
	 		 		 	 Name:

		 	 Position:
	 		 		 	 Title:

 D & O Indemnity AgreementDocument

Exhibit 10.1
PACIRA BIOSCIENCES, INC.

LONG-TERM INCENTIVE PLAN

1.         Purpose.  Pacira BioSciences, Inc. (the “Company”) has established this Long-Term Incentive Plan (“LTIP”) to reward officers and selected key employees of the Company or any of its subsidiaries for their contributions to the long-term performance of the Company.  The LTIP is a cash-based plan that rewards effective use of the Company’s resources to achieve expected and superior performance.

2.         Participation.

a.  Appointment to the LTIP is effective for a single performance period and requires recommendation by the Company’s Chief Executive Officer (“CEO”), and approval by either the Company’s Board of Directors (“the Board”) or by its Compensation Committee (“the Committee”); provided, however, that the CEO’s appointment may be decided only by the Board, based on Committee recommendation.  Participants may be appointed to the LTIP at any time.  An employee appointed to the LTIP is referred to as a “Participant.”

b.  Each Participant will receive a written appointment in the form attached to this LTIP as Appendix A.  Appointment as a Participant in one or more LTIP performance periods does not entitle employees to participate in subsequent periods.

3.         Performance Periods.  LTIP performance periods will be one year in duration, beginning on January 1 of each year and ending on December 31 of the same year.  A new performance period will start with each new calendar year.  The Committee may establish longer performance periods as it determines to be necessary or desirable.

4.         Performance Measures & Goals.  The LTIP has two equally weighted Company performance measures, Net Revenue and Adjusted EBITDA, and a modifier of Relative TSR, all as defined below, which together are referred to as “LTIP Goals.”  Performance in each measure will be independent from the other measure.  Prior to or within 90 days after the beginning of each performance period, the Committee will establish threshold, target and maximum LTIP Goals and related potential award levels for Participants.

5.         Target and Actual Awards.  The Board or Committee will establish an LTIP target award for each Participant based on a percentage of the Participant’s annual base pay at the time of appointment.  Actual awards will vary from the target awards if the Company performs above or below target LTIP Goals.  Participants will receive no award for performance less than established threshold performance on the LTIP Goals.  Actual awards for superior performance are subject to a maximum of 225% of a Participant’s target award.

6.         Calculations.  The Board or the Committee will use the following formulas to determine and approve Company performance and actual awards:

						
	Net Revenue (50%)	Net revenue as reported in the audited financial statements of the Company’s Annual Report on Form 10-K for a given fiscal year ended December 31st consists of all gross revenues less product returns, allowances, prompt payment discounts, wholesaler service fees, volume rebates, chargebacks, and similar items of variable consideration, as applicable. Net revenue is reported in compliance with United States Generally Accepted Accounting Principles (“GAAP”).

	Adjusted EBITDA (50%)	Adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) determined in a manner consistent with the Company’s presentation of Adjusted EBITDA for external reporting purposes for a given fiscal year ended December 31st. Adjusted EBITDA is a financial measure that does not comply with GAAP and is used by management to better analyze financial results, forecast future periods and make managerial decisions.

						
	Relative TSR (Modifier)	The Company’s total shareholder return (“TSR”) performance will be measured against the companies comprising the S&P Pharmaceuticals Select Industry Index (“Index”) on the first day of the performance period (1/1). Based on the Company’s relative TSR performance, a modifier ranging from 100% of target to 150% of target will be applied to the payout resulting from financial performance

Total Shareholder Return = (Ending (12/31) Stock Price – Beginning (1/1) Stock Price + Dividends) / Beginning (1/1) Stock Price

Using percent rank, the Company’s TSR will be compared to the TSR of each of the companies comprising the Index, other than the Company.

	Pro-Rata Awards:	For Participants appointed during a performance period, pro-rata award calculations will be based on the portion of the performance period following their appointment, measured in full-month increments, rounded up for months during the performance period in which a Participant was actively employed for 15 days or more, and rounded down for 14 days or less.

7.         Adjustments.  The Board or the Committee may exercise its discretion to ensure Participants receive an equitable award, by adjusting: (a) calculations to include or exclude unusual items, in whole or in part; (b) an individual Participant’s actual award; or (c) the factors used to calculate awards.  Such adjustments may be made if unanticipated events occur or unusual business conditions develop after the beginning of a performance period, including but not limited to, significant acquisitions or divestitures.

8.         Vesting and Payment of Awards.  An LTIP award earned based on achievement of the LTIP Goals during the performance period will be subject to a three-year vesting period (the “Vesting Period”), beginning on January 1 of the calendar year immediately following the applicable performance period and ending on December 31 of the third calendar year following the applicable performance period (the “Vest Date”), with such award remaining completely unvested until the Vest Date (at which time, subject to Section 9, it shall become 100% vested).  The Company will pay vested LTIP awards no later than 60 days following the Vest Date.  Each LTIP award will be paid in cash.

9.         Continuous Employment.  Unless otherwise approved by the Board or the Committee, to be eligible for any payment of an earned LTIP award, Participants must be continuously and actively employed by the Company through the end of the Vest Date; except that, in the event of a Participant’s death or disability (within the meaning of Section 22(e)(3) of the Internal Revenue Code of 1986, as amended (the “Code”)) during the Vesting Period, the earned LTIP award will be paid in the normal course, as provided in Section 8.  No LTIP awards will be earned by or paid to Participants who do not satisfy these conditions, other than in the event of a Change of Control as provided in Section 10.  The Company considers approved leaves of absence to be active employment, provided they do not exceed the amount of leave to which a Participant might be entitled under applicable Company policies (including for active duty military), and under disability, family and medical leave laws.  For approved leaves that exceed such limits, payment of LTIP awards, if any, is subject to Committee discretion.

10.       Change of Control.             

a.         Notwithstanding any other provision in this LTIP to the contrary, in the event of a Change of Control (as defined below):

            (A) if the Change of Control occurs during the performance period for an LTIP award, Participants will be entitled to a payout equal to the greater of (i) the value of the LTIP award based on actual performance determined by the Board or the Committee as of the date of the Change of Control or (ii) Participant’s target LTIP award, and such LTIP award will remain unvested and subject to the Participant’s continued and active employment through the end of the Vest Date, except in the event the Company terminates the Participant’s employment without Cause (as defined below) or the Participant terminates his or her employment for Good Reason (as defined below), in each case, within 30 days prior to, or 12 months following, the Change of Control, in which case, the Participant will be entitled to payment of such LTIP award within 60 days after the date of termination of employment; or 

            (B) if the Change of Control occurs during the Vesting Period for an LTIP award, Participants will be entitled to a payout equal to the earned LTIP award based on actual performance through the end of the performance period, and such LTIP award will remain unvested and subject to the Participant’s continued and active employment through the end of the Vest Date, except in the event the Company terminates the Participant’s employment without Cause or the Participant 

terminates his or her employment for Good Reason, in each case, within 30 days prior to, or 12 months following, the Change of Control, in which case, such Participant will be entitled to payment of such LTIP award within 60 days after the date of termination of employment.  

“Change of Control” means any of the following events that also constitutes a change in control event under Treasury Regulation Section 1.409A-3(i)(5): (A) a merger or consolidation of the Company into another entity in which the stockholders of the Company do not control fifty percent (50%) or more of the total voting power of the surviving entity (other than a reincorporation merger); (B) the sale, transfer or other disposition of all or substantially all of the Company’s assets in liquidation or dissolution of the Company; or (C) the sale or transfer of more than fifty percent (50%) of the outstanding voting stock of the Company.  In the case of each of the foregoing clauses (A), (B) and (C), a Change of Control as a result of a financing transaction of the Company shall not constitute a Change of Control for purposes of this LTIP.

“Cause” means (A) Participant’s failure to substantially perform his or her duties to the Company after there has been delivered to Participant written notice setting forth in detail the specific respects in which the Company believes that Participant has not substantially performed his or her duties and, if the Company reasonably considers the situation to be correctable, a demand for substantial performance and opportunity to cure, giving Participant 30 calendar days after receipt of such notice to correct the situation; (B) Participant’s having engaged in fraud, misconduct, dishonesty, gross negligence or having otherwise acted in a manner injurious to the Company or in intentional disregard for the Company’s best interests; (C) Participant’s failure to follow reasonable and lawful instructions from the Company and Participant’s failure to cure such failure after receiving 20 days advance written notice; (D) Participant’s material breach of the terms of an employment agreement, the Employee Proprietary Information and Inventions Assignment Agreement or any other similar agreement that may be in effect from time to time; or (E) Participant’s conviction of, or pleading guilty or nolo contendere to, any misdemeanor involving dishonesty or moral turpitude or related to the Company’s business, or any felony.

“Good Reason” means the occurrence of any one or more of the following events without the prior written consent of the Participant: (A) any material reduction of the Participant’s then effective base salary other than a reduction that is related to a cross-executive team salary reduction; (B) any material breach by the Company of its obligations under this LTIP or any agreement under which the Participant provides services to the Company; or (C) a material reduction in the Participant’s responsibilities or duties, provided that in the case of clause (C), a mere reassignment following a Change of Control to a position that is substantially similar to the position held prior to the Change of Control will not constitute a material reduction in job responsibilities or duties; provided, however, that no such event or condition will constitute Good Reason unless (x) the Participant gives the Company written notice of the existence of the condition that the Participant believes constitutes Good Reason within 90 days of the initial existence of such condition (which notice sets forth in reasonable detail the facts or circumstances constituting or giving rise to such condition), (y) the Company fails to remedy such condition within 30 days of its receipt of such notice and (z) the Participant terminates employment within 60 days following the end of such 30-day remedial period.

b.         For the avoidance of doubt, LTIP awards are not included in the definition of “Targeted Incentive Bonus” as set forth in individual Executive Employment Agreements previously entered into between the Company and selected officers of the Company and in effect as of the approval date for this LTIP; therefore, treatment of LTIP awards in the event of a Change of Control is exclusively governed by this LTIP.

11.       Employment Terms.  Participants’ terms of employment remain unchanged by appointment to this LTIP, except as specifically provided in the LTIP Terms.  Nothing in the appointment process or in the LTIP Terms guarantees continued employment.  Participants remain subject to usual Company policies and practices, and to any other employment agreements, service terms, appointments, or mandates to which they are otherwise subject.

12.       Plan Administration & Interpretation.  The Committee administers this LTIP.  The Committee will have the full power and authority to consider and decide any issues arising under the LTIP, to oversee and approve actual award calculations and payments, and to make any other determination and take any other action that the Committee deems necessary or desirable for administration of this LTIP.  The Committee’s decisions concerning LTIP administration and interpretation are final and binding, except as they might relate to the CEO, in which case the Board has final decision-making authority.

13.       Modification and Termination.  The Board or the Committee, in its sole discretion, may modify or terminate this LTIP at any time without the consent of any Participant.  The Board or the Committee may amend the terms of any outstanding LTIP award, prospectively or retroactively; provided, that any such amendment will not materially adversely affect any rights under such outstanding LTIP award without the consent of the Participant.  Notwithstanding the foregoing, outstanding LTIP awards or portions thereof may be terminated or amended without the Participant’s consent (a) to the extent 

the Board or the Committee reasonably deem necessary or advisable to comply with, or take into account, changes in applicable tax laws, accounting rules or other applicable laws, rules or regulations or (b) to avoid the imposition of interest or penalties under Section 409A of the Code and the Treasury Regulations and other guidance promulgated thereunder (collectively, “Code Section 409A”).

14.       Section 409A.  The Company intends that this LTIP and the payments provided hereunder comply with, or be exempt from, the requirements of Code Section 409A.  Notwithstanding any provision in this LTIP or any other agreement to the contrary, this LTIP shall be interpreted, operated, and administered in a manner consistent with such intentions; provided, however, that (i) the Company makes no representation or warranty that this LTIP (or any payment provided hereunder) is exempt from, or complies with, Code Section 409A, and (ii) in no event shall the Company or any of its subsidiaries or affiliates (or any of their respective successors) be liable for any additional tax, interest or penalty that may be imposed on any Participant pursuant to Code Section 409A or for any damages incurred by any Participant as a result of this LTIP (or any of the payments provided hereunder) failing to comply with, or be exempt from, Code Section 409A. Without limiting the generality of the foregoing, and notwithstanding any other provision of this LTIP or any other agreement to the contrary (other than the proviso set forth in the immediately preceding sentence), if, at the time a Participant “separates from service,” as defined in Treasury Regulation Section 1.409A-1(h), the Participant is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent necessary to avoid subjecting the Participant to the imposition of any additional tax or interest under Code Section 409A, amounts that would (but for this provision) be payable within six months following the date of the Participant’s separation from service will not be paid to the Participant during such period, but will instead be paid in a lump sum on the first business day that is more than six months after the date of the Participant’s separation from service or, if earlier, first business day following the Participant’s death.

15.       Recoupment.  To the extent required by applicable law or any applicable securities exchange listing standards, or as otherwise determined by the Board or the Committee, amounts paid or payable under this LTIP will be subject to the provisions of any applicable clawback policies or procedures adopted by the Company, which clawback policies or procedures may provide for forfeiture and/or recoupment of amounts paid or payable under this LTIP. Notwithstanding any provision of this LTIP to the contrary, the Company reserves the right, without the consent of a Participant, to adopt any such clawback policies and procedures, including such policies and procedures applicable to this LTIP with retroactive effect.

16.       Taxes.  The Participant is ultimately responsible for all taxes owed in connection with any payment made pursuant to this LTIP. Payments will be subject to reduction for all applicable taxes and withholding, including any federal, state, local or foreign taxes as required by law. The Company makes no representation or undertaking regarding the adequacy of any tax withholding made in connection with the LTIP.

17.       Indemnification.  Each person who is or shall have been a member of the Board, or a committee appointed by the Board, will be indemnified and held harmless by the Company against and from any loss, cost, liability or expense that may be imposed upon or reasonably incurred by such person in connection with or resulting from any claim, action, suit or proceeding to which such person may be a party or in which such person may be involved by reason of any action taken or failure to act under the this LTIP and against and from any and all amounts paid by such person in settlement thereof, with the Company’s approval, or paid by such person in satisfaction of any judgment in any such claim, action, suit or proceeding against such person; provided, however, that such person will give the Company an opportunity, at its own expense, to handle and defend the same before such person undertakes to handle and defend it on such person's own behalf, unless such loss, cost, liability or expense is a result of such person’s own willful misconduct or except as expressly provided by statute.  The foregoing right of indemnification will not be exclusive of any other rights of indemnification to which such person may be entitled under the Company’s certificate of incorporation or bylaws, as a matter of law, or otherwise, or of any power that the Company may have to indemnify or hold harmless.

18.       No trust or fund.  This LTIP is intended to constitute an "unfunded" plan.  Nothing contained herein will require the Company to segregate any monies or other property or to create any trusts, or to make any special deposits for any immediate or deferred amounts payable to any Participant, and no Participant will have any rights that are greater than those of a general unsecured creditor of the Company.

19.       Successors.  All obligations of the Company under this LTIP will be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all the business and/or assets of the Company.

20.       Choice of Law.  This LTIP, all awards granted hereunder, and all determinations made and actions taken pursuant hereto, to the extent not otherwise governed by the laws of the United States, will be governed by the laws of the 

State of Delaware without giving effect to principles of conflicts of law.  Participants irrevocably consent to the nonexclusive jurisdiction and venue of the state and federal courts located in the State of New Jersey.

21.       Employee Data Privacy.  By accepting an LTIP award, Participant (a) explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of any of Participant’s personal data that is necessary to facilitate the implementation, administration and management of the LTIP award and this LTIP; (b) understands that the Company and Participant’s employer may, for the purpose of implementing, administering and managing this LTIP, hold certain personal information about Participant, including, but not limited to, Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title and details of all awards granted to Participant under this LTIP or otherwise (“Data”); (c) understands that Data may be transferred to any third parties assisting in the implementation, administration and management of this LTIP, and that these recipients may be located in Participant’s country or elsewhere, and that the recipient's country may have different data privacy laws and protections than Participant’s country; (d) waives any data privacy rights Participant may have with respect to the Data; and (e) authorizes the Company, its related companies, and its agents to store and transmit such information in electronic form.

Attachment:   Appendix A—Form of LTIP Appointment Letter

PACIRA BIOSCIENCES, INC.

APPENDIX A—LONG-TERM INCENTIVE PLAN APPOINTMENT LETTER

1.         Appointment, Terms & Conditions.  Pacira BioSciences, Inc. (the "Company") has appointed Participant to its Long-Term Incentive Plan (“LTIP”), subject to all terms and conditions stated here and in the LTIP document.  Capitalized terms that are not defined herein have the meanings given to them in the LTIP.
						
	

Participant:
	
	
Performance Period:	
	
Vesting Period:	
	
Target Award:	
	
Form of Payment:	
Cash

2.         LTIP Award Table.  Attached is a copy of the LTIP Award Table the Company will use to determine your actual award.  Your actual award will vary depending on the Company’s performance of the established LTIP Goals for the performance period and will be calculated as a percentage of your target award.  You will receive 100% of your target award if the Company achieves the target LTIP Goals shown on the LTIP Award Table.  You will receive no award if Company performance falls short of certain thresholds shown on the LTIP Award Table.  You will receive a fractional percentage of your target award for results that meet or exceed the thresholds but fall short of target LTIP Goals.  If Company performance exceeds target LTIP Goals, you will receive more than your target award, up to a maximum of 225% of your target award.  See the attached LTIP Award Table and the LTIP document for further information, terms, and conditions.

3.         Congratulations on your appointment to the LTIP.  Achieving our long-term performance goals depends on your dedicated leadership, contributions and passion to continue to help provide opioid-free treatment solutions to as many patients as possible.  We are pleased to provide you with this additional incentive to continue creating maximum shareholder value and share in that value creation.

Approved by the Compensation Committee of the Pacira Board of Directors and issued on their behalf.

Pacira BioSciences, Inc.

______________________________
Dave Stack
Chief Executive Officer and Chairman

Attachments:
LTIP Award Table
Long-Term Incentive Plan

PACIRA BIOSCIENCES, INC.

LONG-TERM INCENTIVE PLAN ― LTIP AWARD TABLE 

						
	Performance Period:	
	Vesting Period:	

1.    Financial Performance Metrics, Range in Performance, Payout Curves. The following table governs the range in performance between threshold and maximum of financial performance metrics and how payouts are calculated for each independent metric. Performance and payouts between those summarized below are interpolated on a straight-line basis.

																																							
			Threshold Performance
		Target Performance
		Maximum Performance

	Performance Goal
		Performance (% of Target)
	Performance
($ Value)
	Payout (% of Target)
		Performance (% of Target)
	Performance
($ Value)
	Payout (% of Target)
		Performance (% of Target)
	Performance
($ Value)
	Payout (% of Target)

													
	Net Revenue
		95.0%
	[ $ • ]
	50.0%
		100.0%
	[ $ • ]
	100.0%
		105.0%
	[ $ • ]
	150.0%

	Adjusted EBITDA
		90.0%
	[ $ • ]
	50.0%
		100.0%
	[ $ • ]
	100.0%
		110.0%
	[ $ • ]
	150.0%

2.    Relative Total Shareholder Return, Award Modifier. Relative Total Shareholder Return (TSR) performance is based on a percent rank vs. the companies comprising the selected Index. The Company’s percent rank vs. the Index translates into an award modifier according to the below table, which will be applied to the award calculation above to determine a final payout. Performance and payouts between those summarized below are interpolated on a straight-line basis.

																														
			Percent Rank

	Performance Goal
		Below 50th Percentile
	50th
Percentile
	55th
Percentile
	60th Percentile
	65th
Percentile
	70th Percentile
	75th
Percentile
	Above 75th Percentile

										
	TSR Modifier
		100.0%
	100.0%
	110.0%
	120.0%
	130.0%
	140.0%
	150.0%
	150.0%

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