Document:

rigl_Ex10_2

		
			Exhibit 10.2
		

		
			 
		

		
			 
		

		
			 
		

		
			CLINICAL RESEARCH CONSULTING AGREEMENT
		

		
			This Clinical Research Consulting Agreement (the “Agreement”) is made and entered into by and between Rigel Pharmaceuticals, Inc., a Delaware corporation located at 1180 Veterans Boulevard, South San Francisco, CA 94080 (“Rigel”), and Elliott Grossbard located at (“Consultant”).  Rigel and Consultant are sometimes referred to herein individually as a “Party” and collectively as the “Parties”.
		

		
			Whereas, Rigel desires to engage Consultant to assist Rigel in connection with the clinical development of its proprietary compounds; 
		

		
			Whereas, Consultant has the requisite expertise in the area of clinical trials and is willing to serve as a clinical research consultant to Rigel; 
		

		
			Therefore, Rigel and Consultant desire to enter into this Agreement.
		

		
			In consideration of the foregoing and the mutual promises and covenants contained in this Agreement, Rigel and Consultant agree to the following:
		

			
	
			
				 1.
			Engagement of Services; Compensation.  Consultant, pursuant to the provisions of this Agreement, agrees to provide consulting services to Rigel as such services are further described in Exhibit A (collectively, the “Services”).  Exhibit A also sets forth the nature and amount of Services, the location and time for providing Services (if designated), the rate of payment for Consultant’s Services, the timing of such payments, the nature of any equity compensation Consultant will receive as compensation for Services (if applicable), reimbursable expenses, and other terms and conditions appropriate or necessary for or relevant to the performance of Services. Consultant will perform all Services for Rigel in good faith and to the best of Consultant’s ability, consistent with accepted standards for human clinical trial program management in the biopharmaceutical industry.  

			
	
			
				 2.
			Rigel’s Confidential Information.

			
	
			
				 (a)
			 “Confidential Information” During the term of this Agreement and in the course of Consultant's performance hereunder, Consultant may receive and otherwise be exposed to confidential and proprietary information relating to Rigel's business practices, strategies and technologies as well as information of third parties as to which Rigel has an obligation of confidentiality.  Such confidential and proprietary information may include, but is not limited to: information relating to Rigel’s proprietary compounds in clinical development, protocols and clinical research programs, pre-clinical or clinical data, standard operating procedures, patents, trade secrets, research technology and business strategies, Consultant Work Product and Consulting Inventions (as defined in 3(a) and 3(c) respectively), developments, designs, applications, improvements, trade secrets, formulae, compound structures, ideas, know-how, methods or processes, discoveries, techniques, information regarding plans for research, development, new products, marketing business plans, budgets and unpublished financial statements, licenses, prices and costs, suppliers and customers; and information regarding the skills and compensation of employees of Rigel.  Consultant agrees that all Confidential Information, whether presently existing or developed in the future, whether or not patentable or registrable under copyright law, shall be the sole property of Rigel and its assigns, and that Rigel and its assigns shall be the sole owner of intellectual property and other rights in connection with such Confidential Information.

			
	
			
				 (b)
			Recognition of Rigel’s Rights; Nondisclosure. During the term of this Agreement and for seven (7) years after its termination, Consultant will keep in confidence and trust all Confidential Information.  Consultant shall not use, or disclose to any third party, Confidential Information or anything related to such information without the prior written consent of Rigel, unless such actions are required in the ordinary course of performing Services for Rigel pursuant to this Agreement.  Consultant agrees not to disclose, without the prior written consent of Rigel the terms and 

		 

		

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	conditions under which Consultant will provide Services under this Agreement.  Consultant may disclose the fact that Consultant serves as a Consultant to Rigel Pharmaceuticals, Inc., a biotechnology company.  Consultant agrees not to reproduce Confidential Information in any format, except as necessary and as permitted by Rigel for Consultant’s performance of Services.  

			
	
			
				 (c)
			Nondisclosure of Third-Party Information.  Consultant understands that Rigel has received, and in the future will receive, information from third parties that is confidential or proprietary (“Third-Party Information”).  Consultant recognizes Rigel’s duty to maintain the confidentiality of such information.  During the term of this Agreement and thereafter, Consultant will hold Third-Party Information in the strictest confidence and will not disclose or use Third-Party Information except as permitted by the agreement between Rigel and such third party, and as necessary for performing Services under this Agreement, unless expressly authorized to act otherwise by a written statement of an authorized representative of Rigel.

			
	
			
				 3.
			Ownership of Work Product; Background Technology and Consulting Inventions.

			
	
			
				 (a)
			Work Product.   Consultant may, in the course of providing Services on Rigel’s behalf, generate, create, conceive of and modify work product (collectively “Work Product”), and Consultant agrees that all such Work Product is considered “work made for hire” (as defined in 17 USC §§ 101 et seq.) and is the sole and exclusive property of Rigel. To the extent that any Work Product does not qualify as a “work made for hire”, Consultant shall assign all Work Product to Rigel in accordance with the terms of this Section 3. Consultant hereby assigns all of its right, title and interest in and to all Work Product to Rigel, including without limitation, all patents, trademarks, copyrights and other proprietary rights relating thereto.  

			
	
			
				 (b)
			Consulting Inventions; Assignment. Consultant agrees to disclose to Rigel, and hereby assigns to Rigel, Consultant’s entire right, title and interest in and to any and all inventions, ideas, methods, works of authorship, know-how or discoveries made, conceived or reduced to practice by Consultant, alone or jointly with others, in the performance of Services hereunder or arising from Consultant’s use of Rigel’s Confidential Information, whether or not patentable or otherwise protectable (the “Consulting Inventions”).  Consultant agrees that all such Consulting Inventions are the sole and exclusive property of Rigel.  

			
	
			
				 (c)
			Assistance.  Consultant further agrees to execute all papers, including patent applications, invention assignments and copyright assignments, and otherwise assist Rigel as reasonably required to perfect in Rigel all right, title and interest in Consultant's Work Product and Consultant Inventions expressly granted to Rigel under this Agreement.  Such assistance shall include but not be limited to providing affidavits or testimony in connection with patent interference, validity or infringement proceedings and other legal proceedings.  Costs related to such assistance, if required, shall be paid by Rigel.  Consultant’s obligation to assist Rigel as described above in this paragraph shall continue beyond the termination of this Agreement.  If Rigel is unable, after reasonable effort, to secure Consultant’s signature on any document as provided in this Section 3(d), Consultant hereby designates and appoints Rigel and its duly authorized officers and agents as its agent and attorney in fact to execute, verify and file applications, and to do all other lawfully permitted acts necessary to achieve the intent of this Section 3(d) with the same legal force and effect as if executed by Consultant.

			
	
			
				 4.
			No Conflicting Obligation. Consultant certifies that Consultant has not and will not enter into any agreement either written or oral, in conflict with this Agreement.  Absent a conflict of interest, Consultant is free to provide Services to any other entity during the performance of this Agreement.  Consultant shall list the names of all other entities for which Consultant performs consulting services on Exhibit B, which shall be updated from time to time during the term of this Agreement to reflect Consultant’s consulting relationships. 

			
	
			
				 5.
			No Improper Use of Third-Party Materials.  Consultant agrees not to bring to Rigel or to use in the performance of Services any materials or documents of a present or former employer of Consultant, or of Consultant’s employees, or any materials or documents obtained by Consultant under a binder of confidentiality imposed by reason of another of Consultant’s contracting relationships, unless such materials or documents are generally available to the public or Consultant has authorization from such present or former employer or client for the possession and unrestricted use of such materials.  Consultant understands that Consultant is not to breach any obligation of confidentiality or non-

		 

		

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	use of confidential information that Consultant has to present or former employers and agrees to fulfill all such obligations during the term of this Agreement.

			
	
			
				 6.
			Independent Contractor.  Rigel and Consultant agree that Consultant is an independent contractor and not an agent or employee of Rigel.  Consultant has no authority to act on behalf of Rigel or obligate Rigel by contract or otherwise except as expressly authorized by Rigel’s Vice President of Clinical Development or her designee. Consultant shall be responsible for payment of any applicable income taxes or other taxes in connection with his/her work and Consultant will not be eligible to participate in any benefit plan, program, employment policies, or workers’ compensation insurance provided by Rigel.

			
	
			
				 7.
			Term and Termination. Unless previously terminated as set forth below, the term of this Agreement shall commence on July 2, 2016 and shall terminate twnty four (24) months thereafter (the “Initial Term”), subject to renewal for additional six (6) month periods (each a “Renewal Term”) upon the mutual written consent of both parties. Notwithstanding the foregoing, if the Consultant continues to provide Services at Rigel’s request beyond Initial Term or Renewal Term, this Agreement shall be deemed to be in full force and effect until such Services are complete.  Consultant may terminate this Agreement upon two weeks written notice to Rigel.  Rigel may terminate this Agreement at any time with notice to Consultant.

			
	
			
				 8.
			Effect of Termination.

			
	
			
				 (a)
			Upon the termination of this Agreement, Consultant shall be released from all obligations to perform Services, except that any termination of this Agreement shall not relieve Consultant of Consultant’s obligations under Sections 2, 3, 6, 8, 9 and 10 hereof, nor shall any such termination relieve Consultant or Rigel from any liability arising from any breach of this Agreement.

			
	
			
				 (b)
			Upon any termination of this Agreement pursuant to Section 7, Consultant shall promptly deliver to Rigel all documents and other materials of any nature in Consultant’s possession pertaining to the Services, together with all documents and other items containing or pertaining to any Confidential Information.  Consultant shall not retain copies of any such documents or other materials after termination of this Agreement.

			
	
			
				 9.
			Legal and Equitable Remedies.    Because Consultant’s services are personal and unique and because Consultant will have access to and become acquainted with the Confidential Information of Rigel, Rigel shall have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief without prejudice to any other rights and remedies that Rigel may have for a breach of this Agreement.  

			
	
			
				 10.
			General.  This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties hereto; provided that Consultant may not assign or delegate Consultant’s obligations under this Agreement.  This Agreement shall be interpreted and enforced in accordance with the laws of the State of California, regardless of its choice of law principles. In connection with any claim or controversy arising out of or related to this Agreement, each of the Parties hereby consents to a court of applicable jurisdiction in the state of California, and each party hereby consents to the jurisdiction and venue of such court.  If one or more of the provisions in this Agreement are deemed unenforceable by law, then such provision will be deemed stricken from this Agreement and the remaining provisions will continue in full force and effect.    This Agreement, together with its Exhibits, constitute the final, exclusive and complete understanding and agreement of the parties hereto and supersede all prior understandings and agreements.  Any waiver, modification or amendment of any provision of this Agreement shall be effective only if in writing and signed by an authorized representative of each party.  All notices under this Agreement shall be in writing and shall be deemed given upon personal delivery or sent by certified or registered mail, three (3) days after the date of mailing to the Party’s address listed in the preamble of this Agreement.

		
			

		 

		

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In Witness Whereof, the parties hereto have executed this Agreement as of the Effective Date.
		

		
			Rigel Pharmaceuticals, Inc.Elliott Grossbard
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ James Diehl

					
					
						 

					
					
						By:

					
					
						/s/ Elliott Grossbard

				
	
					
						Name: James Diehl

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Title: VP of IP & Assoc. GC

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			
		

		
			
		

		
			

		 

		

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Exhibit A
		

		
			 
		

		
			SERVICES AND COMPENSATION
		

		
			 
		

		
			Consulting Services (the “Services”): 
		

		
			 
		

		
			Consult 
		

		
			 
		

		
			Provision of Services; Location for Provision of Services; Reporting:  
		

		
			 
		

		
			Consultant shall provide Services under this Agreement as requested or authorized in writing by Rigel’s Chief Medical Officer (CMO) or her designee. Services will be performed either remotely or in person at Rigel’s facilities located at 1180 Veterans Boulevard, South San Francisco, California.  During the term of the Consulting Period, Consultant will report to Rigel’s CMO, who will supervise Consultant’s performance of the Services.  
		

		
			 
		

		
			 
		

		
			Compensation for Services; Contingencies on Term: 
		

		
			 
		

		
			Consultant shall be paid $500.00 (USD) per hour for Services requested by Rigel’s CMO and actually provided, up to 30 hours per month, to a maximum amount of $180,000 (USD) per year over the two (2) year term. 
		

		
			 
		

		
			 
		

		
			Invoicing and Timing of payment(s); Retainer: 
		

		
			 
		

		
			Consultant shall invoice Rigel within thirty (30) days from the date of Services provided for the Services provided in the preceding 30 day period.  Consultant and Rigel may agree on weekly or bi-monthly invoicing and payment, if preferred by Consultant and approved by Rigel. Consultant’s invoice shall contain the date(s) and the number of hours of Service actually provided, a description of the Services, as well as the total amount due to Consultant by Rigel. Rigel will issue payment by check within thirty (30) days of receipt of each invoice and send payment to the Address for Payment listed below. 
		

		
			 
		

		
			Address for Payment: 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ JD

					
					
						 

					
					
						/s/ EG

				
	
					
						Initials

					
					
						 

					
					
						Initials

				
	
					
						Rigel Pharmaceuticals, Inc.

					
					
						 

					
					
						Consultant

				

		
			 
		

		
			
		

		
			

		 

		

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Exhibit B
		

		
			OTHER CONSULTING ACTIVITIES
		

		
			None
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ JD

					
					
						 

					
					
						/s/ EG

				
	
					
						Initials

					
					
						 

					
					
						Initials

				
	
					
						Rigel Pharmaceuticals, Inc.

					
					
						 

					
					
						Consultant

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		 

		

			6rigl_Ex10_3

		
			Exhibit 10.3
		

		
			 
		

		
			RIGEL PHARMACEUTICALS, INC.
		

		
			 
		

		
			2000 NON-EMPLOYEE DIRECTORS’ STOCK OPTION PLAN
		

		
			 
		

		
			ADOPTED AUGUST 18, 2000
		

		
			APPROVED BY STOCKHOLDERS SEPTEMBER 11, 2000
		

		
			EFFECTIVE DATE: DECEMBER 4, 2000
		

		
			AMENDED AND RESTATED APRIL 24, 2003
		

		
			AMENDED AND RESTATED JUNE 20, 2003
		

		
			APPROVED BY STOCKHOLDERS JUNE 20, 2003
		

		
			AMENDED AND RESTATED APRIL 22, 2005
		

		
			APPROVED BY STOCKHOLDERS JUNE 2, 2005
		

		
			AMENDED AND RESTATED JANUARY 31, 2007
		

		
			APPROVED BY STOCKHOLDERS MAY 31, 2007
		

		
			AMENDED AND RESTATED SEPTEMBER 18, 2007
		

		
			AMENDED AND RESTATED FEBRUARY 21, 2008
		

		
			APPROVED BY STOCKHOLDERS MAY 29, 2008
		

		
			AMENDED AND RESTATED MAY 19, 2009
		

		
			AMENDED AND RESTATED JANUARY 28, 2010
		

		
			APPROVED BY STOCKHOLDERS MAY 27, 2010
		

		
			AMENDED AND RESTATED JANUARY 28, 2010
		

		
			APPROVED BY STOCKHOLDERS MAY 27, 2010
		

		
			AMENDED AND RESTATED FEBRUARY 4, 2011
		

		
			APPROVED BY STOCKHOLDERS MAY 19, 2011
		

		
			AMENDED AND RESTATED FEBRUARY 8, 2013
APPROVED BY STOCKHOLDERS MAY 14, 2013
		

		
			AMENDED BY THE COMPENSATION COMMITTEE FEBRUARY 27, 2014
		

		
			AMENDED BY THE BOARD JANUARY 27, 2015
		

		
			AMENDED BY THE COMPENSATION COMMITTEE JUNE 16, 2015
		

		
			AMENDED AND RESTATED MAY 2, 2016
		

		
			APPROVED BY STOCKHOLDERS MAY 10, 2016
		

		
			 
		

			
	
			
				 1.
			PURPOSES.

			
	
			
				 (a)
			Eligible Option Recipients. The persons eligible to receive Options are the Non-Employee Directors of the Company.

			
	
			
				 (b)
			Available Options. The purpose of the Plan is to provide a means by which Non-Employee Directors may be given an opportunity to benefit from increases in value of the Common Stock through the granting of Nonstatutory Stock Options.

			
	
			
				 (c)
			General Purpose. The Company, by means of the Plan, seeks to retain the services of its Non-Employee Directors, to secure and retain the services of new Non-Employee Directors and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Affiliates.

			
	
			
				 2.
			DEFINITIONS.

			
	
			
				 (a)
			“Affiliate” means, at the time of determination, any “parent” or “subsidiary” of the Company as such terms are defined in Rule 405 of the Securities Act. The Board shall have the authority to determine the time or times at which “parent” or “subsidiary” status is determined within the foregoing definition.

			
	
			
				 (b)
			“Annual Grant” means an Option granted annually to all Non-Employee Directors who meet the criteria specified in subsection 6(b) of the Plan.

		 

		

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				 (c)
			“Annual Meeting” means the annual meeting of the stockholders of the Company.

			
	
			
				 (d)
			“Board” means the Board of Directors of the Company.

			
	
			
				 (e)
			A  “Change in Control,” with respect to Options granted on or after the effective date of the Plan, will be deemed to have occurred upon the first to occur of an event set forth in any one of the following paragraphs:

			
	
			
				 (i)
			the acquisition (other than from the Company, by any person (as such term is defined in Section 13(c) or 14(d) of the Exchange Act of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty percent (50%) or more of the combined voting power of the Company’s then outstanding voting securities;

			
	
			
				 (ii)
			the individuals who, as of the effective date of the Plan, are members of the Board (the ”Incumbent Board”), cease for any reason to constitute at least a majority of the Board, unless the election, or nomination for election by the Company’s stockholders, of any new director was approved by a vote of at least a majority of the Incumbent Board, and such new director shall, for purposes of this Plan, be considered as a member of the Incumbent Board; or

			
	
			
				 (iii)
			the closing of:

			
	
			
				 (1)
			a merger or consolidation involving the Company if the stockholders of the Company, immediately before such merger or consolidation, do not, as a result of such merger or consolidation, own, directly or indirectly, more than fifty percent (50%) of the combined voting power of the then outstanding voting securities of the corporation resulting from such merger or consolidation in substantially the same proportion as their ownership of the combined voting power of the voting securities of the Company outstanding immediately before such merger or consolidation; or

			
	
			
				 (2)
			a complete liquidation or dissolution of the Company or an agreement for the sale or other disposition of all or substantially all of the assets of the Company.

		
			Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities is acquired by (i) a trustee or other fiduciary holding securities under one or more employee benefit plans maintained by the Company or any of its subsidiaries or (ii) any corporation which, immediately prior to such acquisition, is owned directly or indirectly by the stockholders of the Company in the same proportion as their ownership of stock in the Company immediately prior to such acquisition.
		

		
			For the avoidance of doubt, the term Change in Control shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company.
		

		
			Notwithstanding the foregoing or any other provision of this Plan, the definition of Change in Control (or any analogous term) in an individual written agreement between the Company or any Affiliate and the Optionholder shall supersede the foregoing definition with respect to Options subject to such agreement; provided, however, that if no definition of Change in Control or any analogous term is set forth in such an individual written agreement, the foregoing definition shall apply.
		

			
	
			
				 (f)
			“Code” means the Internal Revenue Code of 1986, as amended.

			
	
			
				 (g)
			“Common Stock” means the common stock of the Company.

			
	
			
				 (h)
			“Company” means Rigel Pharmaceuticals, Inc., a Delaware corporation.

			
	
			
				 (i)
			“Consultant” means any person, including an advisor, (i) engaged by the Company or an Affiliate to render consulting or advisory services and who is compensated for such services or (ii) who is a member of the Board of Directors of an Affiliate. However, the term “Consultant” shall not include either Directors of the Company who are not compensated by the Company for their services as Directors or Directors of the Company who are merely paid a director’s fee by the Company for their services as Directors.

		 

		

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				 (j)
			“Continuous Service” means that the Optionholder’s service with the Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated. The Optionholder’s Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which the Optionholder renders service to the Company or an Affiliate as an Employee, Consultant or Director or a change in the entity for which the Optionholder renders such service, provided that there is no interruption or termination of the Optionholder’s service. For example, a change in status without interruption from a Non-Employee Director of the Company to a Consultant of an Affiliate or an Employee of the Company will not constitute an interruption of Continuous Service. The Board or the chief executive officer of the Company, in that party’s sole discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave.

			
	
			
				 (k)
			“Director” means a member of the Board of Directors of the Company.

			
	
			
				 (l)
			“Disability” means the permanent and total disability of a person within the meaning of Section 22(e)(3) of the Code.

			
	
			
				 (m)
			“Employee” means any person employed by the Company or an Affiliate. Mere service as a Director or payment of a director’s fee by the Company or an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate.

			
	
			
				 (n)
			“Exchange Act” means the Securities Exchange Act of 1934, as amended.

			
	
			
				 (o)
			“Fair Market Value” means, as of any date, the value of the Common Stock determined as follows:

			
	
			
				 (i)
			If the Common Stock is listed on any established stock exchange or traded on the Nasdaq National Market or the Nasdaq SmallCap Market, the Fair Market Value of a share of Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the Common Stock) on the last market trading day prior to the day of determination, as reported in The Wall Street Journal or such other source as the Board deems reliable.

			
	
			
				 (ii)
			In the absence of such markets for the Common Stock, the Fair Market Value shall be determined in good faith by the Board.

			
	
			
				 (p)
			“Initial Grant” means an Option granted to a Non-Employee Director who meets the criteria specified in subsection 6(a) of the Plan.

			
	
			
				 (q)
			“IPO Date” means the effective date of the initial public offering of the Common Stock.

			
	
			
				 (r)
			“Non-Employee Director” means a Director who is not an Employee.

			
	
			
				 (s)
			“Nonstatutory Stock Option” means an Option not intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

			
	
			
				 (t)
			“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.

			
	
			
				 (u)
			“Option” means a Nonstatutory Stock Option granted pursuant to the Plan.

			
	
			
				 (v)
			“Option Agreement” means a written agreement between the Company and an Optionholder evidencing the terms and conditions of an individual Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan.

			
	
			
				 (w)
			“Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option.

			
	
			
				 (x)
			“Plan” means this Rigel Pharmaceuticals, Inc. 2000 Non-Employee Directors’ Stock Option Plan.

		 

		

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				 (y)
			“Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time.

			
	
			
				 (z)
			“Securities Act” means the Securities Act of 1933, as amended.

			
	
			
				 3.
			ADMINISTRATION.

			
	
			
				 (a)
			Administration by Board. The Board shall administer the Plan. The Board may not delegate administration of the Plan to a committee.

			
	
			
				 (b)
			Powers of Board. The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan:

			
	
			
				 (i)
			To determine the provisions of each Option to the extent not specified in the Plan.

			
	
			
				 (ii)
			To construe and interpret the Plan and Options granted under it, and to establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Option Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective.

			
	
			
				 (iii)
			To amend the Plan or an Option as provided in Section 12.

			
	
			
				 (iv)
			To terminate or suspend the Plan as provided in Section 13.

			
	
			
				 (v)
			Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company that are not in conflict with the provisions of the Plan.

			
	
			
				 (c)
			Effect of Board’s Decision. All determinations, interpretations and constructions made by the Board in good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons.

			
	
			
				 (d)
			Cancellation and Re-Grant of Options. Notwithstanding anything to the contrary in the Plan, neither the Board nor any Committee shall have the authority to: (i) reprice any outstanding Option under the Plan, (ii) cancel and re-grant any outstanding Option under the Plan, or (iii) effect any other action that is treated as a repricing under generally accepted accounting principles unless, in each case, the stockholders of the Company have approved such an action within twelve (12) months prior to such an event.

			
	
			
				 4.
			SHARES SUBJECT TO THE PLAN.

			
	
			
				 (a)
			Share Reserve. Subject to the provisions of Section 11 relating to adjustments upon changes in the Common Stock, the Common Stock that may be issued pursuant to Options shall not exceed in the aggregate 1,235,000 shares of Common Stock, which number consists of (i) 33,333 shares of Common stock initially reserved for issuance under the Plan plus (ii) 66,667 shares of Common stock approved by the Board in April 2003 and subsequently approved by the Company’s stockholders plus (iii) 225,000 shares of Common Stock approved by the Board in April 2005 and subsequently approved by the Company’s stockholders plus (iv) 110,000 shares of Common Stock approved by the Board in January 2007 and subsequently approved by the Company’s stockholders plus (v) 100,000 shares of Common Stock approved by the Board in February 2008 and subsequently approved by the Company’s stockholders plus (vi) 350,000 shares of Common Stock approved by the Board in January 2010 and subsequently approved by the Company’s stockholders plus (vii) 250,000 shares of Common Stock approved by the Board in February 2011 and subsequently approved by the Company’s stockholders plus (viii) 100,000 shares of Common Stock approved by the Board in February 2013 and subsequently approved by the Company’s stockholders.

			
	
			
				 (b)
			Reversion of Shares to the Share Reserve. If any Option shall for any reason expire or otherwise terminate, in whole or in part, without having been exercised in full, the shares of Common Stock not acquired under such Option shall revert to and again become available for issuance under the Plan. If any shares subject to an Option are not delivered to an Optionholder because the Option is exercised through a reduction of shares subject to the Option ( i.e., “net exercised”), the number of shares that are not delivered to the Optionholder shall not remain available for issuance under the Plan. If any shares subject to an Option are not delivered to an Optionholder because such shares are 

		 

		

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	withheld in satisfaction of the withholding of taxes incurred in connection with the exercise of an Option, the number of shares that are not delivered to the Optionholder shall not remain available for subsequent issuance under the Plan. If the exercise price of any Option is satisfied by tendering shares of Common Stock held by the Optionholder (either by actual delivery or attestation), then the number of shares so tendered shall not remain available for subsequent issuance under the Plan.

			
	
			
				 (c)
			Source of Shares. The shares of Common Stock subject to the Plan may be unissued shares or reacquired shares, bought on the market or otherwise.

			
	
			
				 5.
			ELIGIBILITY.

		
			The Options as set forth in section 6 automatically shall be granted under the Plan to all Non-Employee Directors who meet the specified criteria.
		

			
	
			
				 6.
			NON-DISCRETIONARY GRANTS.

			
	
			
				 (a)
			Initial Grants. Without any further action of the Board, each person who is elected or appointed for the first time to be a Non-Employee Director automatically shall, upon the date of his or her initial election or appointment to be a Non-Employee Director by the Board or stockholders of the Company, be granted an Initial Grant to purchase eighty thousand (80,000) shares of Common Stock on the terms and conditions set forth herein.

			
	
			
				 (b)
			Annual Grants. Without any further action of the Board, a Non-Employee Director shall be granted an Annual Grant as follows: On the day following each Annual Meeting commencing with the Annual Meeting in 2014, each person who is then a Non-Employee Director automatically shall be granted an Annual Grant to purchase forty thousand (40,000) shares of Common Stock on the terms and conditions set forth herein; provided, however, that if the person has not been serving as a Non-Employee Director for the entire period since the preceding Annual Meeting, then the number of shares subject to the Annual Grant shall be reduced pro rata for each full quarter prior to the date of grant during which such person did not serve as a Non-Employee Director.

			
	
			
				 (c)
			Limitation on Grants to Non-Employee Directors. The maximum number of shares of Common Stock subject to Stock Awards granted under the Plan or otherwise during any one calendar year to any Non-Employee Director shall not exceed the limits described in Sections 6(a) and 6(b) above. The maximum amount of cash compensation that may be payable by the Company to a Non-Employee Director shall not exceed $150,000 per year. The Board may make exceptions to the cash compensation limit in the immediately preceding sentence of this Section 6(c) for individual Non-Employee Directors in extraordinary circumstances (for example, to compensate such individual for interim service in the capacity of an officer of the Company), as the Board may determine in its discretion, provided that the Non-Employee Director receiving such additional cash compensation may not participate in the decision to award such compensation.

			
	
			
				 7.
			OPTION PROVISIONS.

		
			Each Option shall be in such form and shall contain such terms and conditions as required by the Plan. Each Option shall contain such additional terms and conditions, not inconsistent with the Plan, as the Board shall deem appropriate. Each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following provisions:
		

			
	
			
				 (a)
			Term. No Option shall be exercisable after the expiration of ten (10) years from the date it was granted.

			
	
			
				 (b)
			Exercise Price. The exercise price of each Option shall be one hundred percent (100%) of the Fair Market Value of the stock subject to the Option on the date the Option is granted. Notwithstanding the foregoing, an Option may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code.

			
	
			
				 (c)
			Consideration. The purchase price of stock acquired pursuant to an Option may be paid, to the extent permitted by applicable statutes and regulations, in any combination of the following methods:

			
	
			
				 (i)
			By cash or check.

		 

		

			5

		

		

			 

		

 

			
	
			
				 (ii)
			Provided that at the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street Journal, by delivery to the Company of shares of Common Stock that are owned free and clear of any liens, claims, encumbrances or security interests, and that are valued at Fair Market Value on the date of exercise. “Delivery” for these purposes shall include delivery to the Company of the Optionholder’s attestation of ownership of such shares of Common Stock in a form approved by the Company. Notwithstanding the foregoing, the Optionholder may not exercise the Option by tender to the Company of Common Stock to the extent such tender would violate the provisions of any law, regulation or agreement restricting the redemption of the Company’s stock.

			
	
			
				 (iii)
			Provided that at the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street Journal, pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds.

			
	
			
				 (iv)
			By a “net exercise” arrangement pursuant to which the Company will reduce the number of shares of Common Stock issued upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; provided, however, that the Company shall accept a cash or other payment from the Optionholder to the extent of any remaining balance of the aggregate exercise price not satisfied by such holding back of whole shares; provided, further, however, that shares of Common Stock will no longer be outstanding under an Option and will not be exercisable thereafter to the extent that (i) shares are used to pay the exercise price pursuant to the “net exercise,” (ii) shares are delivered to the Optionholder as a result of such exercise, and (iii) shares are withheld to satisfy tax withholding obligations.

			
	
			
				 (d)
			Transferability. The Board may, in its sole discretion, impose such limitations on the transferability of Options as the Board shall determine. In the absence of such a determination by the Board to the contrary, the following restrictions on the transferability of Options shall apply:

			
	
			
				 (i)
			Restrictions on Transfer. An Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder; provided, however, that the Board may, in its sole discretion, permit transfer of the Option in a manner that is not prohibited by applicable tax and securities laws upon the Optionholder’s request. Except as explicitly provided herein, an Option may not be transferred for consideration.

			
	
			
				 (ii)
			Domestic Relations Orders. Notwithstanding the foregoing, an Option may be transferred pursuant to a domestic relations order.

			
	
			
				 (iii)
			Beneficiary Designation. Notwithstanding the foregoing, the Optionholder may, by delivering written notice to the Company, in a form provided by or otherwise satisfactory to the Company and any broker designated by the Company to effect Option exercises, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option and receive the Common Stock or other consideration resulting from such exercise. In the absence of such a designation, the executor or administrator of the Optionholder’s estate shall be entitled to exercise the Option and receive the Common Stock or other consideration resulting from such exercise.

			
	
			
				 (e)
			Exercise Schedule. The Option shall be exercisable as the shares of Common Stock subject to the Option vest.

			
	
			
				 (f)
			Vesting Schedule.

			
	
			
				 (i)
			Each Option granted as an initial grant shall vest in accordance with the schedule set forth below that results in a shorter period of full vesting:

			
	
			
				 (1)
			1/36th of the shares of Common Stock subject to the Option shall vest each month after the date of grant over a period of three (3) years; or

			
	
			
				 (2)
			the Option shall vest in equal monthly installments after the date of grant over a period commencing on the date that the Optionholder is appointed for the first time to be a Non-Employee Director by the Board and ending on the date of the Annual Meeting at which the Optionholder is first scheduled to be considered for election to be a Non-Employee Director by the stockholders of the Company.

		 

		

			6

		

		

			 

		

 

			
	
			
				 (ii)
			Each Option granted as an annual grant before the Annual Meeting in 2008 shall vest such that 1/36th of the shares of Common Stock subject to such Option shall vest each month after the date of grant over a period of three (3) years; and each Option granted as an annual grant on or after the Annual Meeting in 2008 shall vest such that 1/12th of the shares of Common Stock subject to such Option shall vest each month after the date of grant over a period of one (1) year.

			
	
			
				 (g)
			Termination of Continuous Service. In the event an Optionholder’s Continuous Service terminates (other than upon the Optionholder’s death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise it as of the date of termination) but only within such period of time ending on the earlier of (i) the date three (3) months following the termination of the Optionholder’s Continuous Service, or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified in the Option Agreement, the Option shall terminate.

			
	
			
				 (h)
			Extension of Termination Date. If the exercise of the Option following the termination of the Optionholder’s Continuous Service (other than upon the Optionholder’s death or Disability) would be prohibited at any time solely because the issuance of shares would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of the term of the Option set forth in subsection 7(a) or (ii) the expiration of a total period of three (3) months (that need not be consecutive) after the termination of the Optionholder’s Continuous Service during which the exercise of the Option would not be in violation of such registration requirements.

			
	
			
				 (i)
			Disability of Optionholder. In the event an Optionholder’s Continuous Service terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise it as of the date of termination), but only within such period of time ending on the earlier of (i) the date twelve (12) months following such termination or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified herein, the Option shall terminate.

			
	
			
				 (j)
			Death of Optionholder. In the event (i) an Optionholder’s Continuous Service terminates as a result of the Optionholder’s death or (ii) the Optionholder dies within the three-month period after the termination of the Optionholder’s Continuous Service for a reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise the Option as of the date of death) by the Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the Option upon the Optionholder’s death, but only within the period ending on the earlier of (1) the date eighteen (18) months following the date of death or (2) the expiration of the term of such Option as set forth in the Option Agreement. If, after death, the Option is not exercised within the time specified herein, the Option shall terminate.

			
	
			
				 8.
			COVENANTS OF THE COMPANY.

			
	
			
				 (a)
			Availability of Shares. During the terms of the Options, the Company shall keep available at all times the number of shares of Common Stock required to satisfy such Options.

			
	
			
				 (b)
			Securities Law Compliance. The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Options and to issue and sell shares of Common Stock upon exercise of the Options; provided, however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Option or any stock issued or issuable pursuant to any such Option. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful issuance and sale of stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell stock upon exercise of such Options unless and until such authority is obtained.

			
	
			
				 9.
			USE OF PROCEEDS FROM STOCK.

		
			Proceeds from the sale of stock pursuant to Options shall constitute general funds of the Company.
		

		 

		

			7

		

		

			 

		

 

			
	
			
				 10.
			MISCELLANEOUS.

			
	
			
				 (a)
			Stockholder Rights. No Optionholder shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares subject to such Option unless and until such Optionholder has satisfied all requirements for exercise of the Option pursuant to its terms.

			
	
			
				 (b)
			No Service Rights. Nothing in the Plan or any instrument executed or Option granted pursuant thereto shall confer upon any Optionholder any right to continue to serve the Company as a Non-Employee Director or shall affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.

			
	
			
				 (c)
			Investment Assurances. The Company may require an Optionholder, as a condition of exercising or acquiring stock under any Option, (i) to give written assurances satisfactory to the Company as to the Optionholder’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Option; and (ii) to give written assurances satisfactory to the Company stating that the Optionholder is acquiring the stock subject to the Option for the Optionholder’s own account and not with any present intention of selling or otherwise distributing the stock. The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (iii) the issuance of the shares upon the exercise or acquisition of stock under the Option has been registered under a then currently effective registration statement under the Securities Act or (iv) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the stock.

			
	
			
				 (d)
			Withholding Obligations. The Optionholder may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of stock under an Option by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the Optionholder by the Company) or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to withhold shares from the shares of the Common Stock otherwise issuable to the Optionholder as a result of the exercise or acquisition of stock under the Option, provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (iii) delivering to the Company owned and unencumbered shares of the Common Stock.

			
	
			
				 (e)
			Electronic Delivery. Any reference herein to a “written” agreement or document shall include any agreement or document delivered electronically or posted on the Company’s intranet.

			
	
			
				 11.
			ADJUSTMENTS UPON CHANGES IN STOCK.

			
	
			
				 (a)
			Capitalization Adjustments. If any change is made in the stock subject to the Plan, or subject to any Option, without the receipt of consideration by the Company (through merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company), the Board shall appropriately and proportionately adjust (i) the class(es) and maximum number of securities subject both to the Plan pursuant to subsection 4(a) and to the nondiscretionary Options specified in Section 5, (ii) the class(es) and number of securities and price per share of stock subject to outstanding Options. The Board shall make such adjustments, and its determination shall be final, binding and conclusive. (The conversion of any convertible securities of the Company shall not be treated as a transaction “without receipt of consideration” by the Company.)

			
	
			
				 (b)
			Corporate Transaction. In the event of (i) a sale, lease or other disposition of all or substantially all of the securities or assets of the Company, (ii) a merger or consolidation in which the Company is not the surviving corporation or (iii) a reverse merger in which the Company is the surviving corporation but the shares of Common Stock outstanding 

		 

		

			8

		

		

			 

		

 

	immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise, then any surviving corporation or acquiring corporation may assume any Options outstanding under the Plan or may substitute similar Options (including an option to acquire the same consideration paid to the stockholders in the transaction described in this subsection 11(b)) for those outstanding under the Plan. In the event no surviving corporation or acquiring corporation assumes such Options or substitutes similar Options for those outstanding under the Plan, then with respect to Options held by Optionholders who are in Continuous Service immediately prior to such an event, the vesting of such Options (and the time during which such Options may be exercised) shall be accelerated in full, and the Options shall terminate if not exercised at or prior to such event. With respect to any other Options outstanding under the Plan, such Options shall terminate if not exercised prior to such event.

			
	
			
				 (c)
			Change in Control. Upon a Change in Control, all Options held by each Optionholder whose Continuous Service has not terminated immediately prior to the Change in Control shall become fully vested and exercisable immediately prior to the effectiveness of such Change in Control.

			
	
			
				 12.
			AMENDMENT OF THE PLAN AND OPTIONS.

			
	
			
				 (a)
			Amendment of Plan. The Board at any time, and from time to time, may amend the Plan. However, except as provided in Section 11 relating to adjustments upon changes in stock, no amendment shall be effective unless approved by the stockholders of the Company to the extent stockholder approval is necessary to satisfy the requirements of Rule 16b-3 or any Nasdaq or securities exchange listing requirements; provided, however, that the Board may not amend Section 6 to increase the non-discretionary grants or limitations on cash compensation described therein without stockholder approval.

			
	
			
				 (b)
			Stockholder Approval. The Board may, in its sole discretion, submit any other amendment to the Plan for stockholder approval.

			
	
			
				 (c)
			No Impairment of Rights. Rights under any Option granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (i) the Company requests the consent of the Optionholder and (ii) the Optionholder consents in writing.

			
	
			
				 (d)
			Amendment of Options. The Board at any time, and from time to time, may amend the terms of any one or more Options including, but not limited to, amendments to provide terms more favorable than previously provided in the agreement evidencing an Option, subject to any specified limits in the Plan that are not subject to Board discretion; provided, however, that the rights under any Option shall not be impaired by any such amendment unless (i) the Company requests the consent of the Optionholder and (ii) the Optionholder consents in writing.

			
	
			
				 13.
			TERMINATION OR SUSPENSION OF THE PLAN.

			
	
			
				 (a)
			Plan Term. The Board may suspend or terminate the Plan at any time. No Options may be granted under the Plan while the Plan is suspended or after it is terminated.

			
	
			
				 (b)
			No Impairment of Rights. Suspension or termination of the Plan shall not impair rights and obligations under any Option granted while the Plan is in effect except with the written consent of the Optionholder.

			
	
			
				 14.
			EFFECTIVE DATE OF PLAN.

		
			The Plan shall become effective on the IPO Date, but no Option shall be exercised unless and until the Plan has been approved by the stockholders of the Company, which approval shall be within twelve (12) months before or after the date the Plan is adopted by the Board.
		

			
	
			
				 15.
			CHOICE OF LAW.

		
			All questions concerning the construction, validity and interpretation of this Plan shall be governed by the law of the State of Delaware, without regard to such state’s conflict of laws rules. 
		

		
			 
		

		 

		

			9

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