Document:

Exhibit 10.14

 

OMNIAB, INC.

 

 2022 LIGAND SERVICE PROVIDER ASSUMED
AWARD PLAN

  

ARTICLE ONE

 

 GENERAL PROVISIONS

 

	I.	PURPOSE OF THE PLAN

  

The Corporation is a party
to the transactions contemplated by that certain Separation and Distribution Agreement, dated as of March 23, 2022, by and among Ligand,
the Corporation, Avista Public Acquisition Corp. II (“Merger Parent”), and Orwell Merger Sub Inc. (collectively the “Parties”,
and such agreement, as amended from time to time, the “Separation Agreement”), that certain Amended and Restated Employee
Matters Agreement, dated as of August [__], 2022, by and among Ligand, the Corporation, and Merger Parent (as amended from time to time,
the “Employee Matters Agreement”), and that certain Agreement and Plan of Merger, dated as of March 23, 2022, by and among
the Parties (as amended from time to time, the “Merger Agreement”). As a result of the Distribution, outstanding Company Equity
Awards granted under the Company Equity Plans will be adjusted into Company Equity Awards and/or SpinCo Equity Awards as set forth in
Article IV of the Employee Matters Agreement.  This Plan is intended to govern the SpinCo Equity Awards held by Company Service Providers
assumed by the Corporation and converted into such SpinCo Equity Awards at the Distribution Time in accordance with the terms of the Employee
Matters Agreement.

 

Pursuant to Section 4.2(d) of the Employee
Matters Agreement, as of the Effective Time, each SpinCo Equity Award that is then outstanding and unexercised shall be converted into
the right to receive an award relating to shares of Domesticated Parent Common Stock upon substantially the same terms and conditions
as are in effect with respect to such SpinCo Equity Award immediately prior to the Effective Time (other than terms that have been rendered
inoperative by the Transactions), including with respect to vesting and termination-related provisions (each, an “Adjusted Parent
Equity Award”), except that such Adjusted Parent Equity Award shall be adjusted as provided in Section 4.2(d) of the Employee Matters
Agreement.  As of the Effective Time, Merger Parent will assume this Plan and all outstanding SpinCo Equity Awards hereunder (which
shall become Adjusted Parent Equity Awards) in accordance with the terms of Article IV of the Employee Matters Agreement.

 

 Capitalized terms shall have the meanings
assigned to such terms in the attached Appendix.

  

	II.	STRUCTURE OF THE PLAN

  

A.     The Plan shall be divided
into three separate equity incentives programs:

 

1.     the Discretionary Option Grant Program under which
eligible persons may, at the discretion of the Plan Administrator, be granted options to purchase shares of Common Stock, 

 

2.     the Stock Issuance Program under which eligible
persons may, at the discretion of the Plan Administrator, be issued shares of Common Stock, and 

 

3.     the Other Stock Award Program under which eligible
persons may, at the discretion of the Plan Administrator, be granted restricted stock units, stock appreciation rights and dividend equivalents.

 

B.     The provisions of Articles
One, Five and Six shall apply to all equity programs under the Plan and shall govern the interests of all persons under the Plan.

 

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	III.	ADMINISTRATION OF THE PLAN

 

A.     The Primary Committee shall
have sole and exclusive authority to administer the Plan with respect to Section 16 Insiders (other than non-employee Board members, whose
Awards shall be administered by the full Board, as provided below). Administration of the Plan with respect to all other persons eligible
to participate in those programs may, at the Board’s discretion, be vested in the Primary Committee or a Secondary Committee, or
the Board may retain the power to administer those programs with respect to all such persons. However, any discretionary Awards for members
of the Primary Committee must be authorized by a disinterested majority of the Board.

 

B.     Members
of the Primary Committee or any Secondary Committee shall serve for such period of time as the Board may determine and may be removed
by the Board at any time. The Board may also at any time terminate the functions of any Secondary Committee and reassume all powers and
authority previously delegated to such committee.

 

C.     Each
Plan Administrator shall, within the scope of its administrative functions under the Plan, have full power and authority (subject to
the provisions of the Plan) to establish such rules and regulations as it may deem appropriate for proper administration of the Plan
and to make such determinations under, and issue such interpretations of, the provisions of those programs and any outstanding Awards
thereunder as it may deem necessary or advisable. Decisions of the Plan Administrator within the scope of its administrative functions
under the Plan shall be final and binding on all parties who have an interest in the equity incentive programs under its jurisdiction
or any Award thereunder.

 

D.     Service
on the Primary Committee or the Secondary Committee shall constitute service as a Board member, and members of each such committee shall
accordingly be entitled to full indemnification and reimbursement as Board members for their service on such committee. No member of
the Primary Committee or the Secondary Committee shall be liable for any act or omission made in good faith with respect to the Plan
or any Awards under the Plan.

 

E.     Notwithstanding
the foregoing, the full Board shall administer the Plan with respect to any Awards to the non-employee members of the Board.  In
addition, in its sole discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Primary
Committee or any Secondary Committee under the Plan except with respect to matters which under Rule 16b-3 under the Exchange Act, or
any regulations or rules issued thereunder, are required to be determined in the sole discretion of the Primary Committee.

 

	IV.	ELIGIBILITY

  

A.     The persons eligible to
participate in the Plan are the holders of the Adjusted Awards.

  

B.     Each Plan Administrator
shall, within the scope of its administrative jurisdiction under the Plan, have full authority to determine the time or times when each
Adjusted Award is to become exercisable, the vesting schedule (if any) applicable to the Adjusted Award, the maximum term for which the
Adjusted Award is to remain outstanding and such other terms and conditions of such Adjusted Award as the Plan Administrator determines
are appropriate.

 

	V.	STOCK SUBJECT TO THE PLAN

 

A.     Subject to adjustment pursuant
to this Section V, the number of shares of Common Stock which may be issued or transferred pursuant to Awards under the Plan is equal
to the number of shares of Common Stock underlying all Adjusted Awards.

 

 B.     [Reserved]

 

 C.     [Reserved]

 

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 D.     If any change is
made to the Common Stock by reason of any stock split, stock or cash dividend (other than normal cash dividends), recapitalization, combination
of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt
of consideration, equitable adjustments shall be made by the Plan Administrator to (i) the maximum number and/or class of securities
issuable under the Plan, (ii) the number and/or class of securities and the exercise or purchase price per share in effect under each
outstanding Award under the Plan, and (iii) the terms and conditions of any outstanding Awards (including, without limitation, any applicable
performance targets or criteria with respect thereto). Such adjustments to the outstanding Awards are to be effected in a manner which
shall preclude the enlargement or dilution of rights and benefits under such Awards. The adjustments determined by the Plan Administrator
shall be final, binding and conclusive.

 

 E.     Subject
to Article Two, Section III, Article Three, Section II and Article Four, Section V, in the event of any transaction or event described
in Section V.D or any unusual or nonrecurring transactions or events affecting the Corporation, any affiliate of the Corporation, or
the financial statements of the Corporation or any affiliate, or of changes in applicable laws, regulations or accounting principles,
including, without limitation, a Change in Control or a Hostile Take-Over, the Plan Administrator, in its sole and absolute discretion,
and on such terms and conditions as it deems appropriate, either by the terms of the Award or by action taken prior to the occurrence
of such transaction or event and either automatically or upon the Optionee’s or Participant’s request, is hereby authorized
to take any one or more of the following actions whenever the Plan Administrator determines that such action is appropriate in order
to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or with respect
to any Award under the Plan, to facilitate such transactions or events or to give effect to such changes in laws, regulations or principles:

 

 1.     To provide
for either (A) termination of any such Award in exchange for an amount of cash, if any, equal to the amount that would have been attained
upon the exercise of such Award or realization of the Optionee’s or Participant’s rights (and, for the avoidance of doubt,
if as of the date of the occurrence of the transaction or event described in this Section V.E the Plan Administrator determines in good
faith that no amount would have been attained upon the exercise of such Award or realization of the Optionee’s or Participant’s
rights, then such Award may be terminated by the Corporation without payment) or (B) the replacement of such Award with other rights
or property selected by the Plan Administrator in its sole discretion;

 

 2.     To
provide that such Award be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or shall be substituted
for by similar Awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with appropriate
adjustments as to the number and kind of shares and prices;

 

 3.     To
make adjustments in the number and type of shares of Common Stock (or other securities or property) subject to outstanding Awards, and
in the number and/or in the terms and conditions of (including the grant or exercise price), and the criteria included in, outstanding
Awards;

 

 4.     To
provide that such Award shall be exercisable or payable or fully vested with respect to all shares covered thereby, notwithstanding anything
to the contrary in the Plan or the applicable award agreement; and

 

 5.     To provide
that the Award cannot vest, be exercised or become payable after such event.

 

 F.     In the event of any pending stock dividend,
stock split, combination or exchange of shares, merger, consolidation or other distribution (other than normal cash dividends) of Corporation
assets to stockholders, or any other change affecting the shares of Common Stock or the share price of the Common Stock, for reasons
of administrative convenience, the Corporation in its sole discretion may refuse to permit the exercise of any Award during a period
of thirty (30) days prior to the consummation of any such transaction.

 

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ARTICLE TWO

 

 DISCRETIONARY OPTION GRANT PROGRAM

 

	I.	OPTION TERMS

 

Each option shall be evidenced
by one or more documents in the form approved by the Plan Administrator; provided, however, that each such document shall comply with
the terms specified below. Each document evidencing an Incentive Option shall, in addition, be subject to the provisions of the Plan applicable
to such options.

 

	 	A.	EXERCISE PRICE.

 

1.     The exercise price per share shall be fixed by
the Plan Administrator but shall not be less than one hundred percent (100%) of the Fair Market Value per share of Common Stock on the
option grant date.

 

2.     The exercise price shall become immediately due
upon exercise of the option and shall, subject to the provisions of the documents evidencing the option, be payable in one or more of
the forms specified below:

 

(i)     cash or check made payable
to the Corporation,

 

(ii)     shares of Common Stock
held by the Optionee or otherwise issuable upon exercise of the option and valued at Fair Market Value on the Exercise Date,

 

(iii)     to the extent the option
is exercised for vested shares, through a special sale and remittance procedure pursuant to which the Optionee shall concurrently provide
irrevocable instructions to (a) a Corporation-designated brokerage firm to effect the immediate sale of the purchased shares and remit
to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate exercise price
payable for the purchased shares plus all applicable income and employment taxes required to be withheld by the Corporation by reason
of such exercise and (b) the Corporation to deliver the certificates for the purchased shares directly to such brokerage firm in order
to complete the sale, or

 

(iv)     with the consent of the
Plan Administrator, a promissory note bearing interest at no less than such rate as shall then preclude the imputation of interest under
the Code.

 

Except to the extent such
sale and remittance procedure is utilized, payment of the exercise price for the purchased shares must be made on the Exercise Date.  Notwithstanding
any other provision of the Plan to the contrary, no Optionee who is a member of the Board or an “executive officer” of the
Corporation within the meaning of Section 13(k) of the Exchange Act shall be permitted to pay the exercise price of an option, or continue
any extension of credit with respect to the exercise of an option, with a loan from the Corporation or a loan arranged by the Corporation
in violation of Section 13(k) of the Exchange Act.

 

B.     EXERCISE AND TERM OF OPTIONS.
Each option shall be exercisable at such time or times, during such period and for such number of shares as shall be determined by the
Plan Administrator and set forth in the documents evidencing the option. However, no option shall have a term in excess of ten (10) years
measured from the option grant date.

 

C.     EFFECT OF TERMINATION OF
SERVICE.

 

1.     The following provisions shall govern the exercise
of any options held by the Optionee at the time of cessation of Service or death:

 

(i)     Any option outstanding at the time of the Optionee’s
cessation of Service for any reason shall remain exercisable for such period of time thereafter as shall be determined by the Plan Administrator
and set forth in the documents evidencing the option, but no such option shall be exercisable after the expiration of the option term.

 

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(ii)     Any option held by the
Optionee at the time of death and exercisable in whole or in part at that time may be subsequently exercised by the personal representative
of the Optionee’s estate or by the person or persons to whom the option is transferred pursuant to the Optionee’s will or
the laws of inheritance or by the Optionee’s designated beneficiary or beneficiaries of that option.

 

(iii)     During the applicable
post-Service exercise period, the option may not be exercised in the aggregate for more than the number of vested shares for which the
option is exercisable on the date of the Optionee’s cessation of Service. Upon the expiration of the applicable exercise period
or (if earlier) upon the expiration of the option term, the option shall terminate and cease to be outstanding for any vested shares for
which the option has not been exercised. However, the option shall, immediately upon the Optionee’s cessation of Service, terminate
and cease to be outstanding to the extent the option is not otherwise at that time exercisable for vested shares.

 

2.     The Plan Administrator shall have complete discretion,
exercisable either at the time an option is granted or at any time while the option remains outstanding, to:

 

(i)     extend the period of time
for which the option is to remain exercisable following the Optionee’s cessation of Service from the limited exercise period otherwise
in effect for that option to such greater period of time as the Plan Administrator shall deem appropriate, but in no event beyond the
expiration of the option term, and/or

 

(ii)     permit the option to be
exercised, during the applicable post-Service exercise period, not only with respect to the number of vested shares of Common Stock for
which such option is exercisable at the time of the Optionee’s cessation of Service but also with respect to one or more additional
installments in which the Optionee would have vested had the Optionee continued in Service.

 

D.     STOCKHOLDER RIGHTS. The
holder of an option shall have no stockholder rights with respect to the shares subject to the option until such person shall have exercised
the option, paid the exercise price and become a holder of record of the purchased shares.

 

E.     REPURCHASE RIGHTS. The Plan
Administrator shall have the discretion to grant options which are exercisable for unvested shares of Common Stock. Should the Optionee
cease Service while holding such unvested shares, the Corporation shall have the right to repurchase any or all of those unvested shares.
The terms upon which such repurchase right shall be exercisable (including the period and procedure for exercise and the appropriate vesting
schedule for the purchased shares) shall be established by the Plan Administrator and set forth in the document evidencing such repurchase
right.

 

F.     LIMITED
TRANSFERABILITY OF OPTIONS. During the lifetime of the Optionee, Incentive Options shall be exercisable only by the Optionee and
shall not be assignable or transferable other than by will or the laws of inheritance following the Optionee’s death.
Non-Statutory Options shall be subject to the same restriction, except that a Non-Statutory Option may be assigned in whole or in
part during the Optionee’s lifetime to one or more members of the Optionee’s family or to a trust established
exclusively for one or more such family members or to Optionee’s former spouse, to the extent such assignment is in connection
with the Optionee’s estate plan or pursuant to a domestic relations order. The assigned portion may only be exercised by the
person or persons who acquire a proprietary interest in the option pursuant to the assignment. The terms applicable to the assigned
portion shall be the same as those in effect for the option immediately prior to such assignment and shall be set forth in such
documents issued to the assignee as the Plan Administrator may deem appropriate. Notwithstanding the foregoing, the Optionee may
also designate one or more persons as the beneficiary or beneficiaries of his or her outstanding options under this Article Two, and
those options shall, in accordance with such designation, automatically be transferred to such beneficiary or beneficiaries upon the
Optionee’s death while holding those options. Such beneficiary or beneficiaries shall take the transferred options subject to
all the terms and conditions of the applicable agreement evidencing each such transferred option, including (without limitation) the
limited time period during which the option may be exercised following the Optionee’s death.

 

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	II.	INCENTIVE OPTIONS

 

The terms specified below
shall be applicable to all Incentive Options. Except as modified by the provisions of this Section II, all the provisions of Articles
One, Five and Six shall be applicable to Incentive Options.  To the extent an option which is designated as an Incentive Option fails
to meet the requirements of Section 422 of the Code, then such option shall be treated as a Non-Statutory Option.  Options which
are specifically designated as Non-Statutory Options when issued under the Plan shall not be subject to the terms of this Section II.

 

A.     ELIGIBILITY. Incentive Options
may only be granted to Employees.

 

B.     DOLLAR LIMITATION. The aggregate
Fair Market Value of the shares of Common Stock (determined as of the respective date or dates of grant) for which one or more options
granted to any Employee under the Plan (or any other option plan of the Corporation or any Parent or Subsidiary) may for the first time
become exercisable as Incentive Options during any one calendar year shall not exceed the sum of One Hundred Thousand Dollars ($100,000).
To the extent the Employee holds two (2) or more such options which become exercisable for the first time in the same calendar year, the
foregoing limitation on the exercisability of such options as Incentive Options shall be applied on the basis of the order in which such
options are granted.

 

C.     10% STOCKHOLDER. If any
Employee to whom an Incentive Option is granted is a 10% Stockholder, then the exercise price per share shall not be less than one hundred
ten percent (110%) of the Fair Market Value per share of Common Stock on the option grant date, and the option term shall not exceed five
(5) years measured from the option grant date.

 

	III.	CHANGE IN CONTROL/HOSTILE TAKE-OVER

 

A.     In the event of a Change
in Control, each outstanding option under the Discretionary Option Grant Program shall automatically accelerate so that each such option
shall, immediately prior to the effective date of that Change in Control, become exercisable for all the shares of Common Stock at the
time subject to such option and may be exercised for any or all of those shares as fully vested shares of Common Stock. However, an outstanding
option shall NOT become exercisable on such an accelerated basis if and to the extent: (i) such option is to be assumed by the successor
corporation (or parent thereof) or is otherwise to continue in full force and effect pursuant to the terms of the Change in Control transaction
or (ii) such option is to be replaced with a cash incentive program of the successor corporation which preserves the spread existing at
the time of the Change in Control on any shares for which the option is not otherwise at that time exercisable and provides for subsequent
payout of that spread in accordance with the same exercise/vesting schedule applicable to those option shares or (iii) the acceleration
of such option is subject to other limitations imposed by the Plan Administrator at the time of the option grant.

 

B.     All outstanding repurchase
rights under the Discretionary Option Grant Program shall automatically terminate, and the shares of Common Stock subject to those terminated
rights shall immediately vest in full, in the event of a Change in Control, except to the extent: (i) those repurchase rights are to be
assigned to the successor corporation (or parent thereof) or are otherwise to continue in full force and effect pursuant to the terms
of the Change in Control transaction or (ii) such accelerated vesting is precluded by other limitations imposed by the Plan Administrator
at the time the repurchase right is issued.

 

C.     Immediately
following the consummation of the Change in Control, all outstanding options under the Discretionary Option Grant Program shall terminate
and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof) or otherwise continued in
full force and effect pursuant to the terms of the Change in Control transaction.

 

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D.     Each option which is assumed
in connection with a Change in Control or otherwise continued in effect shall be appropriately adjusted, immediately after such Change
in Control, to apply to the number and class of securities which would have been issuable to the Optionee in consummation of such Change
in Control had the option been exercised immediately prior to such Change in Control. Appropriate adjustments shall also be made to the
exercise price payable per share under each outstanding option, provided the aggregate exercise price payable for such securities shall
remain the same (subject only to reduction by reason of rounding). To the extent the actual holders of the Corporation’s outstanding
Common Stock receive cash consideration for their Common Stock in consummation of the Change in Control, the successor corporation may,
in connection with the assumption of the outstanding options under the Discretionary Option Grant Program, substitute one or more shares
of its own common stock with a fair market value equivalent to the cash consideration paid per share of Common Stock in such Change in
Control transaction.

 

E.     The
Plan Administrator shall have the discretionary authority to structure one or more outstanding options under the Discretionary
Option Grant Program so that those options shall, immediately prior to the effective date of a Change in Control, become exercisable
for all the shares of Common Stock at the time subject to those options and may be exercised for any or all of those shares as fully
vested shares of Common Stock, whether or not those options are to be assumed in the Change in Control transaction or otherwise
continued in effect. In addition, the Plan Administrator shall have the discretionary authority to structure one or more of the
Corporation’s repurchase rights under the Discretionary Option Grant Program so that those rights shall immediately terminate
upon the consummation of the Change in Control transaction, and the shares subject to those terminated rights shall thereupon vest
in full.

 

F.     The Plan Administrator shall
have full power and authority to structure one or more outstanding options under the Discretionary Option Grant Program so that those
options shall become exercisable for all the shares of Common Stock at the time subject to those options in the event the Optionee’s
Service is subsequently terminated by reason of an Involuntary Termination within a designated period (not to exceed eighteen (18) months)
following the effective date of any Change in Control transaction in which those options do not otherwise accelerate. In addition, the
Plan Administrator may structure one or more of the Corporation’s repurchase rights so that those rights shall immediately terminate
with respect to any shares held by the Optionee at the time of such Involuntary Termination, and the shares subject to those terminated
repurchase rights shall accordingly vest in full at that time.

 

G.     The Plan Administrator shall
have the discretionary authority to structure one or more outstanding options under the Discretionary Option Grant Program so that those
options shall, immediately prior to the effective date of a Hostile Take-Over, become exercisable for all the shares of Common Stock at
the time subject to those options and may be exercised for any or all of those shares as fully vested shares of Common Stock. In addition,
the Plan Administrator shall have the discretionary authority to structure one or more of the Corporation’s repurchase rights under
the Discretionary Option Grant Program so that those rights shall terminate automatically upon the consummation of such Hostile Take-Over,
and the shares subject to those terminated rights shall thereupon vest in full. Alternatively, the Plan Administrator may condition the
automatic acceleration of one or more outstanding options under the Discretionary Option Grant Program and the termination of one or more
of the Corporation’s outstanding repurchase rights under such program upon the subsequent termination of the Optionee’s Service
by reason of an Involuntary Termination within a designated period (not to exceed eighteen (18) months) following the effective date of
such Hostile Take-Over.

 

H.     The
portion of any Incentive Option accelerated in connection with a Change in Control or Hostile Take-Over shall remain exercisable as
an Incentive Option only to the extent the applicable One Hundred Thousand Dollar ($100,000) limitation is not exceeded. To the
extent such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable as a Nonstatutory Option
under the Federal tax laws.

 

I.     The outstanding options
shall in no way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure
or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

 

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ARTICLE THREE

 

STOCK ISSUANCE PROGRAM

 

	I.	STOCK ISSUANCE TERMS

 

Shares of Common Stock may
be issued under the Stock Issuance Program through direct and immediate issuances without any intervening option grants. Each such stock
issuance shall be evidenced by a Stock Issuance Agreement which complies with the terms specified below. Shares of Common Stock may also
be issued under the Stock Issuance Program pursuant to share right awards which entitle the recipients to receive those shares upon the
attainment of designated performance goals or the satisfaction of specified Service requirements.

 

A.      PURCHASE PRICE.

 

1.      The purchase price per share, if any, shall be
fixed by the Plan Administrator.

 

2.      Shares of Common Stock may
be issued under the Stock Issuance Program for any form of consideration as the Plan Administrator may deem appropriate in each individual
instance, including, without limitation:

 

(i)     cash or check made payable
to the Corporation, or

 

(ii)     past services rendered
to the Corporation (or any Parent or Subsidiary), or

 

(iii)     future services to be
rendered to the Corporation (or any Parent or Subsidiary).

 

B.     RESTRICTIONS.  Shares
of Common Stock issued under this Stock Issuance Program shall be subject to such restrictions on transferability and other restrictions
as the Plan Administrator may impose (including, without limitation, limitations on the right to vote such shares or the right to receive
dividends on such shares).  These restrictions may lapse separately or in combination at such times, pursuant to such circumstances,
in such installments, or otherwise, as the Plan Administrator determines at the time of the grant of the shares or thereafter. Notwithstanding
the foregoing, with respect to shares of Common Stock issued under this Stock Issuance Program subject to vesting, dividends which are
paid prior to vesting shall only be paid out to the Participant to the extent that the vesting conditions are subsequently satisfied and
the share vests.

 

C.     FORFEITURE.  Except
as otherwise determined by the Plan Administrator at the time of the grant of the shares or thereafter, upon termination of employment
or service during the applicable restriction period, shares of Common Stock issued under this Stock Issuance Program that are at that
time subject to restrictions shall be forfeited; provided, however, that, the Plan Administrator may (a) provide in any award agreement
that restrictions or forfeiture conditions relating to such shares will be waived in whole or in part in the event of terminations resulting
from specified causes, and (b) in other cases waive in whole or in part restrictions or forfeiture conditions relating to such shares.

 

	II.	CHANGE IN CONTROL/HOSTILE TAKE-OVER

 

A.     All
of the Corporation’s outstanding forfeiture restrictions or repurchase rights on any shares of Common Stock issued under the
Stock Issuance Program shall terminate automatically, and all the shares of Common Stock subject to those terminated rights shall
immediately vest in full, in the event of any Change in Control, except to the extent (i) those forfeiture restrictions or
repurchase rights are to be assigned to the successor corporation (or parent thereof) or are otherwise to continue in full force and
effect pursuant to the terms of the Change in Control transaction or (ii) such accelerated vesting is precluded by other limitations
imposed in the Stock Issuance Agreement.

 

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B.     The Plan Administrator shall
have the discretionary authority to structure one or more of the Corporation’s forfeiture restrictions or repurchase rights under
the Stock Issuance Program so that those rights shall automatically terminate in whole or in part, and the shares of Common Stock subject
to those terminated rights shall immediately vest, in the event the Participant’s Service should subsequently terminate by reason
of an Involuntary Termination within a designated period (not to exceed eighteen (18) months) following the effective date of any Change
in Control transaction in which those forfeiture restrictions or repurchase rights are assigned to the successor corporation (or parent
thereof) or are otherwise continued in effect.

 

C.     The Plan Administrator shall
also have the discretionary authority to structure one or more of the Corporation’s forfeiture restrictions or repurchase rights
under the Stock Issuance Program so that those rights shall automatically terminate in whole or in part, and the shares of Common Stock
subject to those terminated rights shall immediately vest, either upon the occurrence of a Hostile Take-Over or upon the subsequent termination
of the Participant’s Service by reason of an Involuntary Termination within a designated period (not to exceed eighteen (18) months)
following the effective date of that Hostile Take-Over.

 

	III.	SHARE ESCROW/LEGENDS

 

Unvested shares may, in the Plan Administrator’s
discretion, be held in escrow by the Corporation until the Participant’s interest in such shares vests or may be issued directly
to the Participant with restrictive legends on the certificates evidencing those unvested shares.

 

ARTICLE FOUR

 

OTHER STOCK AWARDS PROGRAM

 

	I.	STOCK APPRECIATION RIGHTS

 

A.     A stock appreciation right
may be granted to any eligible person selected by the Plan Administrator.  A stock appreciation right shall be subject to such terms
and conditions not inconsistent with the Plan as the Plan Administrator shall impose and shall be evidenced by a stock appreciation right
agreement.

 

B.     A
stock appreciation right shall entitle the Participant (or other person entitled to exercise the stock appreciation right pursuant
to the Plan) to exercise all or a specified portion of the stock appreciation right (to the extent then exercisable pursuant to its
terms) and to receive from the Corporation an amount equal to the product of (i) the excess of (A) the Fair Market Value of the
Common Stock on the date the stock appreciation right is exercised over (B) the Fair Market Value of the Common Stock on the date
the stock appreciation right was granted and (ii) the number of shares of Common Stock with respect to which the stock appreciation
right is exercised, subject to any limitations the Plan Administrator may impose.  The exercise or base price per share of a
stock appreciation right shall be fixed by the Plan Administrator but shall not be less than one hundred percent (100%) of the Fair
Market Value per share of Common Stock on the date the stock appreciation right was granted.

 

C.     Subject
to Section I.B above, payment of the amounts determined under Sections I.B. above shall be in cash, in Common Stock (based on its Fair
Market Value as of the date the stock appreciation right is exercised) or a combination of both, as determined by the Plan Administrator.
  To the extent any payment is effected in Stock, it shall be made subject to satisfaction of all provisions of Article Two above
pertaining to options.

 

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D.     Each stock appreciation
right shall be exercisable at such time or times, during such period and for such number of shares as shall be determined by the Plan
Administrator and set forth in the documents evidencing the stock appreciation right. However, no stock appreciation right shall have
a term in excess of ten (10) years measured from the date the stock appreciation right was granted.

 

	II.	DIVIDEND EQUIVALENTS

 

Any eligible person selected
by the Plan Administrator may be granted dividend equivalents based on the dividends declared on the shares of Common Stock that are subject
to any Award, to be credited as of dividend payment dates, during the period between the date the Award is granted and the date the Award
is exercised, vests or expires, as determined by the Plan Administrator.  Such dividend equivalents shall be converted to cash or
additional shares of Common Stock by such formula and at such time and subject to such limitations as may be determined by the Plan Administrator.
  Notwithstanding anything to the contrary, dividends or dividend equivalents with respect to an Award that is subject to vesting
that are based on dividends paid prior to the vesting of such Award shall only be paid out to the extent that the vesting conditions are
subsequently satisfied and the Award vests. In addition, notwithstanding anything to the contrary, no dividend equivalents shall be payable
with respect to options or stock appreciation rights.

 

	III.	RESTRICTED STOCK UNITS

 

The Plan Administrator is
authorized to make Awards of restricted stock units (a right to shares of Common Stock deliverable in the future) to any eligible person
selected by the Plan Administrator in such amounts and subject to such terms and conditions as determined by the Plan Administrator.  At
the time of grant, the Plan Administrator shall specify the date or dates on which the restricted stock units shall become fully vested
and nonforfeitable, and may specify such conditions to vesting as it deems appropriate.  At the time of grant, the Plan Administrator
shall specify the maturity date applicable to each grant of restricted stock units which shall be no earlier than the vesting date or
dates of the Award and may be determined at the election of the grantee.  On the maturity date, the Corporation shall, subject to
Article Six, Section V,  transfer to the Participant one unrestricted, fully transferable share of Common Stock for each restricted
stock unit scheduled to be paid out on such date and not previously forfeited.

 

	IV.	OTHER TERMS

 

A.     Except as otherwise provided
herein, the term of any award of stock appreciation rights, dividend equivalents or restricted stock units shall be set by the Plan Administrator
in its discretion.

 

B.     Except as otherwise provided
herein, the Plan Administrator may establish the exercise or purchase price, if any, of any award of stock appreciation rights, dividend
equivalents or restricted stock units.

 

C.     An award of stock appreciation
rights, dividend equivalents or restricted stock units shall only be exercisable or payable prior to the Participant’s termination
of Service; provided, however, that the Plan Administrator in its sole and absolute discretion may provide that an award of stock
appreciation rights, dividend equivalents or restricted stock units may be exercised or paid subsequent to a termination of Service, as
applicable, or following a Change in Control of the Corporation, or because of the Participant’s retirement, death or disability,
or otherwise.

 

D.     Payments with respect to
any Awards granted under this Article Four shall be made in cash, in Stock or a combination of both, as determined by the Committee.

 

E.     All Awards under this Article
Four shall be subject to such additional terms and conditions as determined by the Plan Administrator and shall be evidenced by an award
agreement.

 

    10

     

    

 

	V.	CHANGE IN CONTROL/HOSTILE TAKE-OVER

 

A.     In the event of a Change
in Control, each outstanding Award under the Other Stock Award Program shall automatically accelerate so that each such Award shall, immediately
prior to the effective date of that Change in Control, become vested and exercisable and/or payable with respect to all the shares of
Common Stock at the time subject to such Award and may be exercised or paid for any or all of those shares as fully vested shares of Common
Stock. However, an outstanding Award shall NOT become vested and exercisable and/or payable on such an accelerated basis if and to the
extent: (i) such Award is to be assumed by the successor corporation (or parent thereof) or is otherwise to continue in full force and
effect pursuant to the terms of the Change in Control transaction or (ii) such Award is to be replaced with a cash incentive program of
the successor corporation which preserves the spread existing at the time of the Change in Control on any shares for which the Award is
not otherwise at that time vested, exercisable or payable and provides for subsequent payout of that spread in accordance with the same
exercise/vesting/payment schedule applicable to those Award shares or (iii) the acceleration of such Award is subject to other limitations
imposed by the Plan Administrator at the time of the Award grant.

 

B.     Immediately
following the consummation of the Change in Control, all outstanding Awards under the Other Stock Award Program shall terminate and
cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof) or otherwise continued in
full force and effect pursuant to the terms of the Change in Control transaction.

 

C.     Each Award which is assumed
in connection with a Change in Control or otherwise continued in effect shall be appropriately adjusted, immediately after such Change
in Control, to apply to the number and class of securities which would have been issuable to the Participant in consummation of such Change
in Control had the Award been exercised or paid immediately prior to such Change in Control. Appropriate adjustments shall also be made
to the exercise or purchase price payable per share under each outstanding Award, provided the aggregate exercise or purchase price payable
for such securities shall remain the same. To the extent the actual holders of the Corporation’s outstanding Common Stock receive
cash consideration for their Common Stock in consummation of the Change in Control, the successor corporation may, in connection with
the assumption of the outstanding Awards under the Other Stock Award Program, substitute one or more shares of its own common stock with
a fair market value equivalent to the cash consideration paid per share of Common Stock in such Change in Control transaction.

 

D.     The Plan Administrator
shall have the discretionary authority to structure one or more outstanding Awards under the Other Stock Award Program so that those Awards
shall, immediately prior to the effective date of a Change in Control, become vested and exercisable and/or payable exercisable for all
the shares of Common Stock at the time subject to those Awards and may be exercised or paid for any or all of those shares as fully vested
shares of Common Stock, whether or not those Awards are to be assumed in the Change in Control transaction or otherwise continued in effect.
In addition, the Plan Administrator shall have the discretionary authority to structure one or more of the Corporation’s repurchase
rights under the Other Stock Award Program so that those rights shall immediately terminate upon the consummation of the Change in Control
transaction, and the shares subject to those terminated rights shall thereupon vest in full.

 

E.     The Plan Administrator
shall have full power and authority to structure one or more outstanding Awards under the Other Stock Award Program so that those Awards
shall become vested and exercisable and/or payable for all the shares of Common Stock at the time subject to those Awards in the event
the Participant’s Service is subsequently terminated by reason of an Involuntary Termination within a designated period (not to
exceed eighteen (18) months) following the effective date of any Change in Control transaction in which those Awards do not otherwise
accelerate.

 

F.     The
Plan Administrator shall have the discretionary authority to structure one or more outstanding Awards under the Other Stock Award
Program so that those Awards shall, immediately prior to the effective date of a Hostile Take-Over, become vested and exercisable
and/or payable for all the shares of Common Stock at the time subject to those Awards and may be exercised or paid for any or
all of those shares as fully vested shares of Common Stock. Alternatively, the Plan Administrator may condition the automatic
acceleration of one or more outstanding Awards under the Other Stock Award Program upon the subsequent termination of the
Optionee’s Service by reason of an Involuntary Termination within a designated period (not to exceed eighteen (18) months)
following the effective date of such Hostile Take-Over.

 

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G.     The outstanding Awards shall
in no way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise change its capital or business structure
or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

 

ARTICLE FIVE

 

[RESERVED]

 

ARTICLE SIX

 

MISCELLANEOUS

 

	I.	TAX WITHHOLDING

 

A.     The Corporation’s
obligation to deliver shares of Common Stock upon the exercise, vesting or payment of Awards under the Plan shall be subject to the satisfaction
of all applicable income and employment tax withholding requirements.

 

B.     The Plan Administrator may,
in its discretion, provide any or all holders of Awards under the Plan with the right to use shares of Common Stock in satisfaction of
all or part of the Withholding Taxes to which such holders may become subject in connection with the exercise, vesting or payment of their
Awards. Such right may be provided to any such holder in either or both of the following formats:

 

Stock Withholding: The election
to have the Corporation withhold, from the shares of Common Stock otherwise issuable upon the exercise, vesting or payment of such Award,
a portion of those shares with an aggregate Fair Market Value equal to the minimum required percentage of the Withholding Taxes.

 

Stock Delivery: The election
to deliver to the Corporation, at the time the Award is exercised, vests or is paid, one or more shares of Common Stock previously acquired
by such holder (other than in connection with the exercise, vesting or payment triggering the Withholding Taxes) and held for at least
six (6) months (or such other period determined by the Plan Administrator) with an aggregate Fair Market Value equal to the percentage
of the Withholding Taxes (not to exceed one hundred percent (100%)) designated by the holder.

 

C.     Notwithstanding
any other provision of the Plan, the number of shares of Common Stock which may be withheld or delivered by the Participant in order
to satisfy the Withholding Taxes with respect to the exercise, vesting or payment of an Award shall be limited to the number of
shares of Common Stock which have a Fair Market Value on the date of withholding or delivery equal to the aggregate amount of such
Withholding Taxes based on the minimum statutory withholding rates for federal, state, local and foreign income tax and payroll tax
purposes that are applicable to such supplemental taxable income or such higher rate as may approved by the Plan Administrator
(which rates shall in no event exceed the maximum individual statutory tax rate in the applicable jurisdiction at the time of such
withholding (or such other rate as may be required to avoid the liability classification of the applicable award under generally
accepted accounting principles in the United States of America)); provided, however, unless otherwise approved by the Plan
Administrator, to the extent such shares of Common Stock were acquired by the Participant from the Company as compensation, the
shares of Common Stock must have been held for the minimum period required by applicable accounting rules to avoid a charge to the
Company’s earnings for financial reporting purposes; provided, further, that the number of shares of Common Stock withheld or
delivered shall be rounded up to the nearest whole share sufficient to cover the Withholding Taxes to the extent rounding up to the
nearest whole share does not result in the liability classification of the applicable Award under generally accepted accounting
principles in the United States of America.

 

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	II.	EFFECTIVE DATE AND TERM OF THE PLAN

 

A.     This Plan will become effective
on the Effective Date.

 

B.     The Plan shall terminate
upon the earlier to occur of (i) the termination of all Awards under the Plan, or (ii) the termination of all outstanding Awards in connection
with a Change in Control. In the event of the termination of the Plan, then all Awards outstanding at that time shall continue to have
force and effect in accordance with the provisions of the documents evidencing such Awards.

 

	III.	AMENDMENT OF THE PLAN

 

The Board shall have complete
and exclusive power and authority to amend or modify the Plan in any or all respects. However, no such amendment or modification shall
adversely affect the rights and obligations with respect to Awards at the time outstanding under the Plan unless the Optionee or the Participant
consents to such amendment or modification. In addition, certain amendments may require stockholder approval pursuant to applicable laws
or regulations.  Except as permitted by Article One, Section V, Article Two, Section III or Article Four, Section V in connection
with a transaction specified in Article One, Section V.D or V.E (including, without limitation, any Change in Control, Hostile Take-Over,
stock dividend, stock split, extraordinary cash dividend, recapitalization, combination of shares or exchange of shares), the terms of
outstanding Awards may not be amended to reduce the exercise price of outstanding options or stock appreciation rights or cancel, exchange,
substitute, buyout or surrender outstanding options or stock appreciation rights in exchange for cash, other Awards or options or stock
appreciation rights with an exercise price that is less than the exercise price of the original options or stock appreciation rights without
stockholder approval.

 

	IV.	USE OF PROCEEDS

 

Any cash proceeds received
by the Corporation from the sale of shares of Common Stock under the Plan shall be used for general corporate purposes.

 

	V.	REGULATORY APPROVALS

 

A.     The implementation of the
Plan, the granting of any Award under the Plan and the issuance of any shares of Common Stock under the Plan shall be subject to the Corporation’s
procurement of all approvals and permits required by regulatory authorities having jurisdiction over the Plan, the Awards granted under
it and the shares of Common Stock issued pursuant to it.

 

B.     No
shares of Common Stock or other assets shall be issued or delivered under the Plan unless and until there shall have been compliance
with all applicable requirements of applicable securities laws, including the filing and effectiveness of a registration statement
for the shares of Common Stock issuable under the Plan, and all applicable listing requirements of any stock exchange (or the Nasdaq
Global Market, if applicable) on which Common Stock is then listed for trading.

 

C.     All
stock certificates delivered pursuant to the Plan are subject to any stop-transfer orders and other restrictions as the Plan
Administrator deems necessary or advisable to comply with federal, state, or foreign jurisdiction, securities or other laws, rules
and regulations and the rules of any national securities exchange or automated quotation system on which the Stock is listed,
quoted, or traded.  The Plan Administrator may place legends on any stock certificate to reference restrictions applicable to
the Common Stock.  In addition to the terms and conditions provided herein, the Board may require that an Optionee or
Participant make such reasonable covenants, agreements, and representations as the Board, in its discretion, deems advisable in
order to comply with any such laws, regulations, or requirements. The Plan Administrator shall have the right to require any
Optionee or Participant to comply with any timing or other restrictions with respect to the settlement or exercise of any Award,
including a window-period limitation, as may be imposed in the discretion of the Plan Administrator.

 

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D.     Notwithstanding any other
provision of the Plan, unless otherwise determined by the Plan Administrator or required by any applicable law, rule or regulation, the
Corporation shall not deliver to any Optionee or Participant certificates evidencing shares of Common Stock issued in connection with
any award and instead such shares of Common Stock shall be recorded in the books of the Corporation (or, as applicable, its transfer agent
or stock plan administrator).

 

E.     In the event that the Corporation
establishes, for itself or using the services of a third party, an automated system for the documentation, granting or exercise of Awards,
such as a system using an internet website or interactive voice response, then the paperless documentation, granting or exercise of Awards
by an Optionee or a Participant may be permitted through the use of such an automated system.

 

	VI.	NO EMPLOYMENT/SERVICE RIGHTS

 

Nothing in the Plan shall
confer upon the Optionee or the Participant any right to continue in Service for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining such person) or Ligand
(or any Parent or Subsidiary) or of the Optionee or the Participant, which rights are hereby expressly reserved by each, to terminate
such person’s Service at any time for any reason, with or without cause.

 

	VII.	COMPLIANCE WITH SECTION 409A OF THE CODE

 

To the extent that the
Plan Administrator determines that any Award granted under the Plan is subject to Section 409A of the Code, the agreement evidencing
such Award shall incorporate the terms and conditions required by Section 409A of the Code.  To the extent applicable, the Plan
and Award agreements shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and
other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be
issued after the adoption of the Plan.  Notwithstanding any provision of the Plan to the contrary, in the event that following
the adoption of the Plan the Plan Administrator determines that any Award may be subject to Section 409A of the Code and related
Department of Treasury guidance (including such Department of Treasury guidance as may be issued after the adoption of the Plan),
the Plan Administrator may adopt such amendments to the Plan and the applicable Award agreement or adopt other policies and
procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Plan
Administrator determines are necessary or appropriate to (a) exempt the Award from Section 409A of the Code and/or preserve the
intended tax treatment of the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A of
the Code and related Department of Treasury guidance.

 

	VIII.	FORFEITURE AND CLAW-BACK PROVISIONS

 

A.     Pursuant to its general
authority to determine the terms and conditions applicable to Awards under the Plan, the Plan Administrator shall have the right to provide,
in the terms of Awards made under the Plan, or to require a participant to agree by separate written or electronic instrument, that: (1)
any proceeds, gains or other economic benefit actually or constructively received by the participant upon any receipt or exercise of the
Award, or upon the receipt or resale of any shares underlying the Award, must be paid to the Corporation, and (2) the Award shall terminate
and any unexercised portion of the Award (whether or not vested) shall be forfeited, if (i) a termination of Service occurs prior to a
specified date, or within a specified time period following receipt or exercise of the Award, (ii) the participant at any time, or during
a specified time period, engages in any activity in competition with the Corporation, or which is inimical, contrary or harmful to the
interests of the Corporation, as further defined by the Plan Administrator or (iii) the participant incurs a termination of Service for
Misconduct; and

 

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B.     All Awards (including any
proceeds, gains or other economic benefit actually or constructively received by a participant upon any receipt or exercise of any Award
or upon the receipt or resale of any shares underlying the Award) shall be subject to the applicable provisions of any claw-back policy
implemented by the Corporation, whether implemented prior to or after the grant of such Award, including without limitation, any claw-back
policy adopted to comply with the requirements of applicable law, including without limitation, the Dodd-Frank Wall Street Reform and
Consumer Protection Act and any rules or regulations promulgated thereunder, to the extent set forth in such claw-back policy and/or in
the applicable Award agreement.

 

	IX.	ADJUSTED AWARDS

 

A.     It is the intention
that each Adjusted Award shall be subject to the same terms and conditions as applied to the original Company Equity Award to which
such Adjusted Award relates immediately prior to the effective time of the Distribution, as provided in this Plan and the applicable
award agreement, except (i) to the extent such terms are rendered inoperative by reason of the Transactions, (ii) to reflect the
adjustment of such Adjusted Award pursuant to Article IV of the Employee Matters Agreement, (iii) to reflect that the Corporation is
the issuer of the Common Stock subject to the Adjusted Award, and (iv) to reflect the holder of such Adjusted Award’s status
as an employee, director or consultant of the Corporation or Ligand (or their respective Parents or Subsidiaries), as applicable,
following the Transactions. Nothing in this Plan or in any applicable award agreement evidencing an Adjusted Award is intended to
provide the holder of any Adjusted Award with additional benefits to those that the holder had under the original Company Equity
Award to which such Adjusted Award relates.  In the event of any inconsistency between the terms of an Adjusted Award and this
Plan and the original Company Equity Award to which such Adjusted Award relates (and the Company Equity Plan under which it was
originally granted) that provides the holder of any Adjusted Award with an additional benefit in violation of Section 424 or Section
409A of the Code, the terms of the original Company Equity Award shall be deemed to apply to such Adjusted Award so that no such
additional benefit shall apply.

 

B.     The conversion of the Adjusted
Awards pursuant to the Distribution is intended to comply in all respects with the requirements of Section 424 and Section 409A of the
Code, to the extent applicable, and all such provisions of this Plan, the Employee Matters Agreement and each award agreement shall be
interpreted and implemented in accordance with the foregoing.

 

C.     None of the Transactions
shall, in and of itself, constitute a termination of Service for purposes of any Adjusted Award, and, except as otherwise provided in
the Employee Matters Agreement, continued employment with Ligand (or any Parent or Subsidiary) shall be treated as continued employment
with the Corporation with respect to SpinCo Equity Awards that are held by Company Service Providers.

 

D.     Notwithstanding the foregoing,
with respect to any unvested Adjusted Award, if the original Company Equity Award to which such Adjusted Award relates was subject, as
of immediately prior to the Distribution, to accelerated vesting provisions (i) by reference to a termination of employment or Service
with Ligand (or any Parent or Subsidiary) and/or (ii) in connection with a “Change in Control” (as defined in the applicable
award agreement and/or Company Equity Plan) of Ligand, then the Adjusted Award also shall be subject to such same acceleration provisions
upon the Adjusted Award holder’s termination of employment or Service with Ligand (or any Parent or Subsidiary) and/or in connection
with a Change in Control of Ligand.

 

E.     With respect to any unvested
Adjusted Award held by a Company Service Provider following the Distribution, notwithstanding anything in the Plan, Employee Matters Agreement
or the applicable award agreement to the contrary, such Adjusted Award will vest in full upon a Change in Control of the Corporation.

 

F.     In no event shall the vesting
of any Adjusted Awards accelerate solely by reason of the transactions or events contemplated by any Transaction Document.

 

G.     Notwithstanding
anything in the Plan, Employee Matters Agreement or the applicable award agreement to the contrary, if, following the Distribution,
the Board determines, in its discretion, to accelerate in full the vesting of all Awards then held by SpinCo Service Providers
(other than in connection with a Change in Control), the Board shall also accelerate in full the vesting of all outstanding Adjusted
Awards which are then held by Company Service Providers.

 

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APPENDIX

 

The following definitions shall be in effect under
the Plan:

 

	 	A.	ADJUSTED AWARD shall mean a SpinCo Equity Award held by a Company Service Provider that is assumed by Merger Parent at the Effective Time and becomes an Adjusted Parent Equity Award.

 

	 	B.	ADJUSTED PARENT EQUITY AWARD shall have the meaning given to such term in Article One, Section I.

 

	 	C.	AWARD shall mean any Adjusted Award.

 

	 	D.	BOARD shall mean the Corporation’s Board of Directors.

 

	 	E.	CHANGE IN CONTROL shall mean a change in ownership or control of the Corporation effected through any of the following transactions:

 

	 	a.	a merger, consolidation or other reorganization approved by the Corporation’s stockholders, unless securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by the persons who beneficially owned the Corporation’s outstanding voting securities immediately prior to such transaction, or

 

	 	b.	the sale, transfer or other disposition of all or substantially all of the Corporation’s assets in complete liquidation or dissolution of the Corporation, or

 

	 	c.	the acquisition, directly or indirectly by any person or related group of persons (other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation), of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to the Corporation’s stockholders.

 

None of the Transactions
shall constitute a Change in Control.

 

	 	F.	CODE shall mean the Internal Revenue Code of 1986, as amended.

   

		

	 	G.	COMMON STOCK shall mean the Corporation’s common stock.

 

	 	H.	COMPANY EQUITY AWARDS shall have the meaning set forth in the Employee Matters Agreement.

		 	

	 	I.	COMPANY EQUITY PLANS shall have the meaning set forth in the Employee Matters Agreement.

		 	

	 	J.	COMPANY SERVICE PROVIDER shall have the meaning set forth in the Employee Matters Agreement.

		 	

	 	K.	CORPORATION
    shall mean OmniAb, Inc., a Delaware corporation, and any corporate successor to all or substantially all of the assets
or voting stock of the Corporation which shall by appropriate action adopt or assume the Plan, including, as of the Effective Time, Merger
Parent.

 

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	 	L.	DISCRETIONARY OPTION GRANT PROGRAM shall mean the discretionary option grant program in effect under Article Two of the Plan.

		 	

	 	M.	DISTRIBUTION shall have the meaning set forth in the Merger Agreement.

		 	

	 	N.	DISTRIBUTION TIME shall have the meaning set forth in the Employee Matters Agreement.

		 	

	 	O.	DOMESTICATED PARENT COMMON STOCK shall have the meaning set forth in the Merger Agreement.

		 	

	 	P.	EFFECTIVE DATE shall mean the date immediately prior to the date on which the Distribution occurs.

		 	

	 	Q.	EFFECTIVE TIME shall have the meaning set forth in the Merger Agreement.

 

	 	R.	EMPLOYEE shall mean an individual who is in the employ of the Corporation (or any Parent or Subsidiary) or Ligand (or any Parent or Subsidiary), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance.

 

	 	S.	EMPLOYEE MATTERS AGREEMENT shall have the meaning given to such term in Article One, Section I.

		 	

	 	T.	EXERCISE DATE shall mean the date on which the Corporation shall have received written notice of the option exercise.

 

	 	U.	FAIR MARKET VALUE per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

 

	 	a.	If the Common Stock is at the time traded on the Nasdaq Global Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq Global Market and published in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

 

	 	b.	If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange and published in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

 

	 	V.	HOSTILE TAKE-OVER shall mean a change in ownership or control of the Corporation effected through either of the following transactions:

 

	 	a.	a change
    in the composition of the Board over a period of thirty-six (36) consecutive months or less such that a majority of the Board,
    members ceases, by reason of one or more contested elections for Board membership,
to be comprised of individuals who either (A) have been Board members continuously since the beginning of such period or (B) have been
elected or nominated for election as Board members during such period by at least a majority of the Board members described in clause
(A) who were still in office at the time the Board approved such election or nomination, or

 

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	 	b.	a Hostile Tender-Offer.

 

	 	W.	HOSTILE TENDER-OFFER shall mean the acquisition, directly or indirectly, by any person or related group of persons (other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation) of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to the Corporation’s stockholders which the Board does not recommend such stockholders to accept.

 

	 	X.	INCENTIVE OPTION shall mean an option which satisfies the requirements of Code Section 422.

 

	 	Y.	INVOLUNTARY TERMINATION shall mean the termination of the Service of any individual which occurs by reason of:

 

	 	a.	such individual’s involuntary dismissal or discharge by the Corporation or Ligand (or any Parent or Subsidiary) for reasons other than Misconduct, or

 

	 	b.	such individual’s voluntary resignation following (A) a change in his or her position with the Corporation or Ligand (or any Parent or Subsidiary) which materially reduces his or her duties and responsibilities or the level of management to which he or she reports, (B) a reduction in his or her level of compensation (including base salary, fringe benefits and target bonus under any corporate-performance based bonus or incentive programs) by more than fifteen percent (15%) or (C) a relocation of such individual’s place of employment by more than fifty (50) miles, provided and only if such change, reduction or relocation is effected by the Corporation or Ligand (or any Parent or Subsidiary) without the individual’s consent.

 

	 	Z.	LIGAND shall mean Ligand Pharmaceuticals Incorporated, a Delaware corporation.

 

	 	AA.	LIGAND BOARD shall mean Ligand’s Board of Directors.

 

	 	BB.	MERGER AGREEMENT shall have the meaning given to such term in Article One, Section I.

 

	 	CC.	MERGER PARENT shall have the meaning given to such term in Article One, Section I.

 

	 	DD.	MISCONDUCT
    shall mean the commission of any act of fraud, embezzlement or dishonesty by the Optionee or Participant, any unauthorized use or
    disclosure by such person of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary) or Ligand
    (or any Parent or Subsidiary), or any other intentional misconduct by such person adversely affecting the business or affairs of the
    Corporation (or any Parent or Subsidiary) or Ligand (or any Parent or Subsidiary) in a material manner. The foregoing definition
    shall not in any way preclude or restrict the right of the Corporation (or any Parent or Subsidiary) or Ligand (or any Parent or
    Subsidiary) to discharge or dismiss any Optionee, Participant or other person in the Service of the Corporation (or any Parent or
    Subsidiary) or Ligand (or any Parent or Subsidiary) for any other acts or omissions, but such other acts
or omissions shall not be deemed, for purposes of the Plan, to constitute grounds for termination for Misconduct.

 

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	 	EE.	1934 ACT shall mean the Securities Exchange Act of 1934, as amended.

 

	 	FF.	NON-STATUTORY OPTION shall mean an option not intended to satisfy the requirements of Code Section 422.

 

	 	GG.	OPTIONEE shall mean any holder of an Adjusted Award that is an option.

 

	 	HH.	OTHER STOCK AWARD PROGRAM shall mean the discretionary stock award grant program in effect under Article Four of the Plan

 

	 	II.	PARENT shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

 

	 	JJ.	PARTICIPANT shall mean any holder of an Adjusted Award other than an option.

 

	 	KK.	PARTIES shall have the meaning given to such term in Article One, Section I.

 

	 	LL.	PERMANENT DISABILITY OR PERMANENTLY DISABLED shall mean the inability of the Optionee or the Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment expected to result in death or to be of continuous duration of twelve (12) months or more. However, solely for purposes of the Awards granted to non-employee Board members, Permanent Disability or Permanently Disabled shall mean the inability of the non-employee Board member to perform his or her usual duties as a Board member by reason of any medically determinable physical or mental impairment expected to result in death or to be of continuous duration of twelve (12) months or more.

 

	 	MM.	PLAN shall mean this 2022 Ligand Service Provider Assumed Award Plan.

 

	 	NN.	PLAN ADMINISTRATOR shall mean the particular entity, whether the Primary Committee, the Board or the Secondary Committee, which is authorized to administer the Plan with respect to one or more classes of eligible persons, to the extent such entity is carrying out its administrative functions under those programs with respect to the persons under its jurisdiction.

 

	 	OO.	PRIMARY COMMITTEE shall mean the committee of two (2) or more non-employee Board members appointed by the Board to administer the Discretionary Option Grant and Stock Issuance Programs with respect to Section 16 Insiders.

 

	 	PP.	SECONDARY COMMITTEE shall mean a committee of one or more Board members appointed by the Board to administer the Discretionary Option Grant, Stock Issuance and Other Stock Award Programs with respect to eligible persons other than Section 16 Insiders.

 

	 	QQ.	SECTION 16 INSIDER shall mean an officer or director of the Corporation subject to the short-swing profit liabilities of Section 16 of the 1934 Act.

		 	

	 	RR.	SEPARATION
    AGREEMENT shall have the meaning given to such term in Article One, Section I.

 

    19

     

    

 

	 	SS.	SERVICE shall mean the performance of services for the Corporation (or any Parent or Subsidiary) or Ligand (or any Parent or Subsidiary) by a person in the capacity of an Employee, a non-employee member of the board of directors or a consultant or independent advisor, except to the extent otherwise specifically provided in the documents evidencing the option grant or stock issuance.

 

	 	TT.	SPINCO EQUITY AWARD shall have the meaning set forth in the Employee Matters Agreement.

 

	 	UU.	SPINCO SERVICE PROVIDER shall have the meaning set forth in the Employee Matters Agreement.

 

	 	VV.	STOCK EXCHANGE shall mean either the American Stock Exchange or the New York Stock Exchange.

 

	 	WW.	STOCK ISSUANCE AGREEMENT shall mean the agreement entered into by the Corporation and the Participant at the time of issuance of shares of Common Stock under the Stock Issuance Program.

 

	 	XX.	STOCK ISSUANCE PROGRAM shall mean the stock issuance program in effect under Article Three of the Plan.

 

	 	YY.	SUBSIDIARY shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

 

	 	ZZ.	10% STOCKHOLDER shall mean the owner of stock (as determined under Code Section 424(d)) possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation (or any Parent or Subsidiary).

 

	 	AAA.	TRANSACTION DOCUMENTS shall have the meaning set forth in the Merger Agreement.

 

	 	BBB.	TRANSACTIONS shall have the meaning set forth in the Merger Agreement.

 

	 	CCC.	WITHHOLDING TAXES shall mean the applicable income and employment withholding taxes to which the holder of Non-Statutory Options or unvested shares of Common Stock may become subject in connection with the exercise of those options or the vesting of those shares.

 

    20Exhibit 10.15

 

OMNIAB, INC.

 

DIRECTOR COMPENSATION AND STOCK OWNERSHIP POLICY

 

I. DIRECTOR COMPENSATION

 

Non-employee members of the board of directors
(the “Board”) of OmniAb, Inc. (the “Company”) shall be eligible to receive cash and
equity compensation as set forth in this Director Compensation Policy, effective as of the date of the consummation of the transactions
(the “Merger”) contemplated by that certain Agreement and Plan of Merger, by and among the Company, Ligand
Pharmaceuticals Incorporated (“Ligand”), Avista Public Acquisition Corp. II, a Cayman Islands exempted company,
and Orwell Merger Sub Inc., a Delaware corporation, dated March 23, 2022 (such date, the “Effective Date”).
The cash compensation and stock awards described in this Director Compensation Policy shall be paid or be made, as applicable, automatically
and without further action of the Board, to each member of the Board who is not an employee of the Company or any parent or subsidiary
of the Company (each, an “Independent Director”) who may be eligible to receive such cash compensation or stock
awards, unless such Independent Director declines the receipt of such cash compensation or stock awards by written notice to the Chairman
of the Board. This Director Compensation Policy shall remain in effect until it is revised or rescinded by further action of the Board.
The terms and conditions of this Director Compensation Policy shall supersede any prior cash or equity compensation arrangements between
the Company and its directors.

 

	 	1.	Cash Compensation.

 

	 	a.	Annual Retainer.
    Each Independent Director shall be eligible to receive an annual retainer of $50,000 for service on the Board. In addition, an Independent
    Director serving as:

 

	 	i.	chairman of the Board shall
    be eligible to receive an additional annual retainer of $30,000 for such service;

 

	 	ii.	chairman of the Audit Committee
    shall be eligible to receive an additional annual retainer of $20,000 for such service;

 

	 	iii.	members (other than the chairman)
    of the Audit Committee shall be eligible to receive an additional annual retainer of $10,000 for such service;

 

	 	iv.	chairman of the Human Capital
    Management and Compensation Committee shall be eligible to receive an additional annual retainer of $15,000 for such service;

 

	 	v.	members (other than the chairman)
    of the Human Capital Management and Compensation Committee shall be eligible to receive an additional annual retainer of $7,500 for
    such service;

 

	 	vi.	chairman of the Nominating
    and Corporate Governance Committee shall be eligible to receive an additional annual retainer of $10,000 for such service; and

 

	 	vii.	members (other than the chairman)
    of the Nominating and Corporate Governance Committee shall be eligible to receive an additional annual retainer of $5,000 for such
    service.

 

	 	b.	Payment of Cash Compensation.

 

	 	i.	Annual retainer fees shall
    be earned on a quarterly basis based on a calendar quarter and shall be paid by the Company in arrears not later than 30 days following
    the end of each calendar quarter. In the event that an Independent Director does not serve as a director for an entire calendar quarter,
    the retainer paid to such Independent Director shall be prorated for the portion of such calendar quarter actually served as a director.

 

    1

     

    

 

	 	ii.	Committee retainer fees shall
    also be earned on a quarterly basis based on a calendar quarter and shall be paid by the Company in arrears not later than 30 days
    following the end of each calendar quarter. In the event an Independent Director does not serve in the applicable committee position(s)
    described in Section 1(a) for an entire calendar quarter, the retainer paid to such Independent Director shall be prorated for the
    portion of such calendar quarter actually served in such committee position(s).

 

	 	iii.	Any Independent Director who
    ceases service on the board of directors of Ligand and commences service on the Board in connection with the consummation of the
    Merger will not be entitled to any annual retainer fees and/or committee retainer fees in respect of services provided during the
    period beginning on the Effective Date and ending on the date of the next occurring annual meeting of the Company’s stockholders;
    provided, however, that any such Independent Director will be entitled to any amount by which the annual retainer fees and/or committee
    retainer fees to which the Independent Director would be entitled under this Director Compensation Policy for such period (based
    on his or her committee assignments following the Effective Time) are greater than those for which the Independent Director received
    payment from Ligand for such period.

 

	 	2.	Equity Compensation.
    The Independent Directors shall be granted the following stock awards. The stock awards described below shall be granted under and
    shall be subject to the terms and provisions of the Company’s 2022 Incentive Award Plan (the “2022 Plan”)
    and shall be granted subject to the execution and delivery of award agreements, including attached exhibits, in substantially the
    same forms previously approved by the Board.

 

	 	a.	Initial Stock Awards.
    A person who is initially elected or appointed to the Board on or after the Effective Date, and who is an Independent Director at
    the time of such initial election or appointment, shall be eligible to receive the following stock awards on the date of such initial
    election or appointment (each, an “Initial Stock Award”):

 

	 	i.	that number of restricted stock
    units determined by dividing (A) $145,000, by (B) the average closing price per share of the Company’s common stock on the
    Nasdaq Global Market (or such other established stock exchange or national quotation system on which the stock is quoted) for the
    60-calendar day period prior to the date of grant (or, if the Effective Date occurred less than 60-calendar days prior to such Subsequent
    Stock Award Date, such lesser number of calendar days following (and including) the Effective Date); provided, however that the amount
    in clause (B) shall be equal to the closing price per share of the Company’s common stock on the Effective Date for any Initial
    Stock Awards granted on such date); and

 

	 	ii.	that number of stock options
    having a value of $280,000, calculated on the grant date in accordance with the Black-Scholes option pricing model (utilizing the
    same assumptions that the Company utilizes in preparation of its financial statements).

 

Notwithstanding
the foregoing, an Independent Director who is initially elected or appointed to the Board on the Effective Date and who served as a member
of the Ligand board of directors prior to the Effective Date shall not be eligible for an Initial Stock Award.

 

	 	b.	Subsequent Stock Awards.
    A person who is an Independent Director as of the date of each annual meeting of the Company’s stockholders (each, a “Subsequent
    Stock Award Date”), and who will continue to serve as an Independent Director following such Subsequent Stock Award
    Date, shall be eligible to receive the following stock awards on each such Subsequent Stock Award Date (each, a “Subsequent
    Stock Award”):

 

	 	i.	that number of restricted stock
    units determined by dividing (A) $85,000, by (B) the average closing price per share of the Company’s common stock on the Nasdaq
    Global Market (or such other established stock exchange or national quotation system on which the stock is quoted) for the 60-calendar
    day period prior to the date of grant (or, if the Effective Date occurred less than 60-calendar days prior to such Subsequent Stock
    Award Date, such lesser number of calendar days following (and including) the Effective Date); and

 

    2

     

    

 

	 	ii.	that
    number of stock options having a value of $175,000, calculated on the grant date in accordance with the Black-Scholes option pricing
    model (utilizing the same assumptions that the Company utilizes in preparation of its financial statements).

 

An
Independent Director elected for the first time to the Board at an annual meeting of stockholders on or after the Effective Date
shall only receive an Initial Stock Award in connection with such election, and shall not receive a Subsequent Stock Award on the date
of such meeting as well. The stock awards described in clauses 2(a) and 2(b) above shall be collectively referred to as “Stock
Awards.”

 

	 	c.	Termination
    of Employment of Employee Directors. Members of the Board who are employees of the Company
    or any parent or subsidiary of the Company who subsequently terminate their employment with the Company and any parent or subsidiary
    of the Company and remain on the Board will not receive any Initial Stock Awards pursuant to clause 2(a) above, but to the extent
    that they are otherwise eligible, will be eligible to receive, after termination from employment with the Company and any parent
    or subsidiary of the Company, Subsequent Stock Awards as described in clause 2(b) above.

 

	 	d.	Vesting
    of Stock Awards Granted to Independent Directors.

 

	 	i.	Initial
    Stock Awards granted hereunder shall vest in three (3) equal annual installments on each of the first three (3) anniversaries following
    the date of grant, subject to the Independent Director’s continuing service on the Board through each such vesting date.

 

	 	ii.	Subsequent
    Stock Awards granted hereunder shall vest in full on the earlier of (A) the date of the annual meeting of the Company’s stockholders
    next following the grant date (it being understood that the Subsequent Stock Awards shall vest on the date of such annual meeting
    whether or not the Independent Director is re-elected at such meeting, so long as the Independent Director serves through such meeting)
    and (B) on the first anniversary of the date of grant, subject to the Independent Director’s continuing service on the Board
    through each such vesting date.

 

	 	iii.	Any Stock
    Awards granted hereunder shall vest in full in the event of a Change in Control (as defined in the 2022 Plan) to the extent the Independent
    Director is serving on the Board at the time of such transaction or in the event an Independent Director ceases to serve on the Board
    by reason of death or Permanent Disability (as defined in the 2022 Plan).

 

	 	iv.	Any unvested
    Stock Awards will be forfeited to the Company in the event an Independent Director ceases to serve on the Board prior to the vesting
    of such awards.

 

	 	e.	Effect
    of Termination of Board Service on Stock Options. An Independent Director shall be able
    to exercise his or her stock options that were vested at the time of his or her cessation of Board service until the first to occur of (i) the third anniversary
of the date of his or her cessation of Board service, or (ii) the original expiration date of the term of such stock options.

 

    3

     

    

 

	 	f.	Term
    of Stock Options. Each stock option granted hereunder shall have a term of ten (10) years
    measured from the date of grant.

 

	 	g.	Exercise
    Price of Stock Options. The exercise price per share of any stock options granted hereunder
    shall be equal to one hundred percent (100%) of the Fair Market Value (as defined in the 2022 Plan) of the common stock on the date
    of grant.

 

	 	h.	Ligand
    Stock Awards. The commencement of service on the Board in connection with the consummation
    of the Merger and corresponding cessation of service on the board of directors of Ligand shall not constitute a termination of service
    for any Independent Director who was serving on the board of directors of Ligand prior to commencing service as an Independent Director
    and who holds stock awards granted by Ligand (“Ligand Stock Awards”). For purposes of any Ligand Stock
    Awards held by any Independent Director, service as a member of the Board shall be treated as service with Ligand for purposes of
    the continued vesting and/or exercisability of the Ligand Stock Awards held by such Independent Directors. In addition, such Ligand
    Stock Awards shall be eligible to vest on an accelerated basis as set forth in Section 2(d)(iii) above. All Ligand Stock Awards will
    be adjusted in connection with the Merger in accordance with that certain Employee Matters Agreement by and among the Company, Ligand,
    Avista Public Acquisition Corp. II, a Cayman Islands exempted company, and Orwell Merger Sub Inc., a Delaware corporation, dated
    March 23, 2022, as amended.

 

II. DIRECTOR STOCK OWNERSHIP
GUIDELINES

 

Independent Directors are expected to own and
hold shares of the Company’s common stock with a value equal to three times the annual cash retainer for service as an Independent
Director (without regard to any retainers paid for committee service or service as chairman of the Board). The stock ownership level
should be achieved by each Independent Director on or before the five-year anniversary of the Effective Date or, if later, within five
years after the Independent Director’s first appointment to the Board.

 

Stock that counts toward satisfaction of these
guidelines include: shares of common stock owned outright by the Independent Director and his or her immediate family members who share
the same household, whether held individually or jointly; restricted stock where the restrictions have lapsed; shares acquired upon stock
option exercise; shares purchased in the open market; and shares held in trust for the benefit of the Independent Director or his or
her family. Restricted stock units, which represent the right to receive shares, and options to purchase shares of common stock, do not
count towards satisfaction of these guidelines. Shares held in trust may be included. Due to the complexities of trust accounts, requests
to include shares held in trust should be submitted to the Secretary of the Company and the Chairman of the Board will make the final
decision as to whether to include those shares.

 

An Independent Director will be deemed to be
in compliance with these guidelines if the Fair Market Value of the shares of the Company’s common stock held by such Independent
Director on any date prior to the deadline for his or her compliance equals or exceeds the required multiple of his or her annual cash
retainer. After meeting the requirements set forth in these guidelines, any subsequent decreases in the market value of the Company’s
common stock shall not be considered, so long as the Independent Director continues to hold at least the same number of shares of the
Company’s common stock as he or she did when the guidelines were first met or exceeded by such Independent Director.

 

The guidelines may be waived for Independent
Directors, at the discretion of the Board, if compliance would create hardship or prevent an Independent Director from complying with
a court order, as in the case of a divorce settlement.

 

    4

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