Document:

EX-10.5

 Exhibit 10.5 

MGM RESORTS INTERNATIONAL 

AMENDED AND RESTATED CHANGE OF CONTROL POLICY FOR EXECUTIVE OFFICERS 

ADOPTED: AUGUST 16, 2022 

 MGM RESORTS INTERNATIONAL 

AMENDED AND RESTATED CHANGE OF CONTROL POLICY FOR EXECUTIVE OFFICERS 

1. Definitions 
 For purposes of the Amended and Restated
Change of Control Policy for Executive Officers, the following terms are defined as set forth below (unless the context clearly indicates otherwise): 
  

			
	Administrator	  	The third-party accounting, actuarial, consulting or similar firm which shall be retained by the Company prior to a Change of Control to administer this Policy following a Change of Control.
		
	Annual Base Salary	  	The Participant’s base salary as in effect as of the date of a Change of Control (or, if greater, as of the Date of Termination).
		
	Board	  	The Board of Directors of the Company.
		
	Change of Control	  	 “Change of Control” shall have the following meaning, regardless of the definition given such term in any Current Employment
Agreement:
  
 (1) the date that a reorganization, merger, consolidation,
recapitalization, or similar transaction is consummated, unless: (i) at least 50% of the outstanding voting securities of the surviving or resulting entity (including, without limitation, an entity which as a result of such transaction owns the
Company either directly or through one or more subsidiaries) (“Resulting Entity”) are beneficially owned, directly or indirectly, by the persons who were the beneficial owners of the outstanding voting securities of the Corporation
immediately prior to such transaction in substantially the same proportions as their beneficial ownership, immediately prior to such transaction, of the outstanding voting securities of the Corporation and (ii) immediately following such
transaction no person or persons acting as a group beneficially owns capital stock of the Resulting Entity possessing thirty-five percent (35%) or more of the total voting power of the stock of the Resulting Entity;

 
 (2) the date that a majority of members of the Company’s Board is replaced
during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s Board before the date of the appointment or election; provided that no individual shall be
considered to be so endorsed if such individual initially assumed office as a result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the
Securities Exchange Act of 1934) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a “Proxy Contest”) including by reason of any agreement intended to avoid or settle any
Election Contest or Proxy Contest;
  
 (3) the date that any one person, or persons
acting as a group, acquires (or has or have acquired as of the date of the most recent acquisition by such person or persons) beneficial ownership of stock of the Company possessing thirty-five percent (35%) or more of the total voting power of the
stock of the Company; or
  
 (4) the date that any one person acquires, or persons
acting as a group acquire (or has acquired as of the date of the most recent acquisition by such person or persons) assets constituting all or substantially all of the assets of the Company and its Subsidiaries on a consolidated basis.

 
 For the avoidance of doubt, there can only be one Change of Control for purposes of the
Policy.

			
	Code	  	The Internal Revenue Code of 1986, as amended from time to time.
		
	Committee	  	The Board’s Human Capital and Compensation Committee or a subcommittee thereof, any successor thereto or such other committee or subcommittee as may be designated by the Board to administer the Policy.
		
	Company	  	MGM Resorts International, or any successor thereto.
		
	Current Employment Agreement	  	The Participant’s employment agreement with the Company or any of its affiliates (including, without limitation, any Parent or Subsidiary) in effect as of the applicable date of determination, if any.
		
	Date of Termination	  	 If the Participant’s employment is terminated by:
  

(i) the Employer with Employer’s Good Cause or by the Participant for Participant’s Good Cause, the Date of Termination shall be the date on
which the Participant or the Employer, as the case may be, receives the Notice of Termination (as described in Section 3.2(b)) or any later date specified therein, as the case may be.

 
 (ii) the Employer without Employer’s Good Cause or by the Participant without
Participant’s Good Cause, the Date of Termination shall be the date on which the Employer or the Participant, as applicable, notifies the other party of such termination.

 
 Notwithstanding the above, in the event that the Participant’s employment is
terminated within six months prior to a Change of Control under circumstances entitling the Participant to the benefits described in Section 3 hereof were such termination of employment within the period commencing on the Change of Control and
ending on the one-year anniversary thereof, the Participant’s Date of Termination for purposes of Section 3 hereof shall be the date of the Change of Control.

		
	Disability	  	“Disability” shall mean Employee’s inability to perform the essential functions of the Employee’s position, with or without a reasonable accommodation, for a period of six (6) consecutive months or for a
cumulative period of six (6) months over a twelve (12) month period.
		
	Effective Date	  	August 16, 2022.
		
	Employer	  	As applicable, the Company, the Subsidiaries, any Parent and any affiliated companies.
		
	Employer’s Good Cause	  	As defined in Section 3.2(a).
		
	Excise Tax	  	The excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax.
		
	Executive Officer	  	Any executive officer of the Company.
		
	Net After-Tax Benefit	  	The present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and 280G(d)(4) of the Code) of a Participant’s Payments less any Federal, state, and local income taxes and any Excise Tax payable on such
amount.
		
	Parent	  	A parent corporation as defined in Section 424(e) of the Code.
		
	Participant	  	An Executive Officer who meets the eligibility requirements of Section 2.1.

			
	Participant’s Good Cause	  	As defined in Section 3.2(a).
		
	Payment	  	Any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Participant, whether paid or payable pursuant to this Policy or
otherwise.
		
	Policy	  	This MGM Resorts International Amended and Restated Change of Control Policy for Executive Officers.
		
	Pro Rata Bonus	  	A cash payment equal to the prorated portion (based on the number of complete days employed during the applicable calendar year through the Date of Termination) of the Target Bonus that Participant would have received had his or her
employment not been terminated and the bonus had been earned at target levels.
		
	Separation Benefits	  	The amounts and benefits payable or required to be provided in accordance with Section 3.3 of this Policy.
		
	Subsidiary	  	A subsidiary corporation of the Company as defined in Section 424(f) of the Code or corporation or other entity, whether domestic or foreign, direct or indirect, in which the Company has or obtains a proprietary interest
of more than fifty percent (50%) by reason of stock ownership or otherwise.
		
	Target Bonus	  	The annual target bonus award for which a Participant is eligible under the Company’s Annual Performance-Based Incentive Plan for Executive Officers, or any successor plan, as in effect as of the date of a Change of Control
(or, if greater, as of the Date of Termination).

 2. Eligibility 

2.1. Participation. Each Executive Officer set forth on Schedule A hereto shall be a Participant subject to the Policy effective as of the
Effective Date and each other employee added to Schedule A by the Committee from time to time shall become a Participant subject to the Policy effective as of the date of such Committee action. 

2.2. Duration of Participation. A Participant shall cease to be a Participant subject to the Policy if (i) the Participant terminates
employment with the Employer under circumstances not entitling him or her to Separation Benefits or (ii) the Committee determines that Participant shall cease to be subject to the Policy prior to the occurrence of a Change of Control, provided
that no Executive Officer may be so removed from Policy participation subsequent to or in connection with a Change of Control that actually occurs. In the event that a Participant is removed from the Policy pursuant to the preceding sentence,
the Company shall, effective as of the date of such removal, amend the terms of any equity award or other agreement between the Company and such Participant, to the minimum extent necessary, to avoid the imposition of any additional taxes and/or
penalties under Section 409A of the Code on such Participant as a result of such removal. Additionally, in the event that a Participant was removed from Policy participation in the six months prior to a Change of Control, such Participant
will be deemed retroactively eligible to participate in the Policy. Furthermore, a Participant who is entitled to receive benefits under the Policy shall remain a Participant subject to the Policy until the amounts and benefits payable pursuant to
the Policy have been paid or provided to the Participant in full. 
 3. Separation Benefits 

3.1. Right to Separation Benefits. A Participant shall be entitled to receive from the Employer the Separation Benefits as provided in
Section 3.3, if a Change of Control occurs and the Participant’s employment with the Employer is terminated under circumstances specified in Section 3.2(a) during the period commencing on the date that is six months prior to such
Change of Control and ending on the first anniversary of such Change of Control. Termination of employment shall have the same meaning as “separation from service” within the meaning of Treasury Regulation § 1.409A-1(h). 

 3.2. Termination of Employment. 

 

	(a)	 Terminations which give rise to Separation Benefits under this Policy. The
circumstances specified in this Section 3.2(a) are any termination of employment with the Employer by action of the Employer without Employer’s Good Cause (and not by reason of Participant’s death or disability) or by a
Participant with Participant’s Good Cause. 

 For purposes of this Policy, “Employer’s Good Cause”
shall have the following meaning, regardless of the definition given such term in any Current Employment Agreement: 
  

	 	(i)	 Participant’s conviction of, or plea of guilty or nolo contendere to (x) a crime relating to the
Company or its affiliates or (y) any felony, or Participant’s failure to reasonably abide by Employer’s policies and procedures, gross misconduct, insubordination, failure to perform the duties required of Participant up to reasonable
standards established by the Employer’s senior management, or material breach of Participant’s Current Employment Agreement, which failure or breach is not cured by the Participant within ten (10) days after written notice thereof
from Employer specifying the facts and circumstances of the alleged failure or breach, provided, however, that such notice and opportunity to cure shall not be required if, in the good faith judgment of the Board, such breach is not capable of being
cured within ten (10) days; 

  

	 	(ii)	 Participant’s failure or inability to apply for and obtain any license, qualification, clearance or other
similar approval which the Employer or any regulatory authority which has jurisdiction over the Employer requests or requires that the Participant obtain; 

  

	 	(iii)	 The Employer is directed by any governmental authority in Nevada, Michigan, Mississippi, Ohio, Maryland,
Massachusetts, New Jersey, New York, Macau S.A.R., or any other jurisdiction in which the Employer is engaged in a gaming business or where the Employer has applied to (or during the term of the Participant’s employment under the Current
Employment Agreement, may apply to) engage in a gaming business to cease business with the Participant; or 

  

	 	(iv)	 Any of the Employer’s gaming business licenses are threatened to be, or are, denied, curtailed, suspended
or revoked as a result of the Participant’s employment by the Employer or as a result of the Participant’s actions. 

For purposes of this Policy, “Participant’s Good Cause” shall have the following meaning, regardless of the definition given
such term in any Current Employment Agreement: 
  

	 	(i)	 The failure of Employer to pay Participant any compensation when due; or 

 

	 	(ii)	 A material reduction in the scope of duties or responsibilities of Participant or any reduction in
Participant’s then-current Annual Base Salary or Target Bonus. 

 If circumstances constituting Participant’s
Good Cause occur, the Participant shall give the Employer thirty (30) days’ advance written notice specifying the facts and circumstances of the alleged breach. During such thirty (30) day period, the Employer may either cure the
breach (in which case such notice will be considered withdrawn) or declare (to the Participant in writing) that the Employer disputes that Participant’s Good Cause exists, in which case Participant’s Good Cause shall not exist until
the dispute is resolved in accordance with the methods for resolving disputes specified in Exhibit A hereto. 

	(b)	 Notice of Termination. Any termination of employment initiated by the Employer for
Employer’s Good Cause, or by the Participant for Employee’s Good Cause, shall be communicated by a Notice of Termination to the other party. For purposes of this Policy, a “Notice of Termination” means a written notice which
(i) indicates the specific termination provision in this Policy relied upon, and (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Participant’s employment under the provision so indicated. The failure by the Participant or the Employer to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Employer’s Good Cause or
Employee’s Good Cause shall not waive any right of the Employer or the Participant, respectively, hereunder or preclude the Employer or the Participant, respectively, from asserting such fact or circumstance in enforcing the Employer’s or
the Participant’s rights hereunder. 

 3.3. Separation Benefits. If a Participant’s employment is terminated
under the circumstances set forth in Section 3.2(a) entitling the Participant to Separation Benefits, and if the Participant executes the general release of claims described in Section 3.5 within 21 days following the Date of
Termination (or 45 days, if applicable for a group termination under the ADEA), then, contingent upon the expiration of any revocation period provided in such release and subject to Section 6.6, within 30 days (or 60 days if applicable for a
group termination under the ADEA) following the Date of Termination, the Participant shall become entitled to the benefits set forth in items (a) through (e) below (the “Separation Benefits”): 

 

	(a)	 The Employer shall pay to the Participant, in a lump sum in cash within 30 days after the Date of Termination,
or on earlier date as required by applicable law, the sum of (A) the Participant’s Annual Base Salary through the Date of Termination to the extent not theretofore paid, (B) any bonus attributable to the Company’s most recently
completed fiscal year to the extent not previously paid, and (C) any accrued vacation pay, in each case to the extent not theretofore paid (to the extent applicable). The sum of the amounts described in sub clauses (A), (B), and (C), shall be
referred to as the “Accrued Obligations”. 

  

	(b)	 The Employer also shall pay to the Participant, in a lump sum in cash within 30 days after the Date of
Termination, an amount (“Separation Pay”) equal to the Pro Rata Bonus plus the product of (A) two (2) (in the case of a Participant who is serving as the Chief Executive Officer) or one and one half (1.5) (in the case of all other
Participants) and (B) the sum of (x) the Participant’s Annual Base Salary and (y) the Participant’s Target Bonus. 

  

	(c)	 The Employer also shall pay to the Participant, in a lump sum in cash within 30 days after the Date of
Termination, an amount (“Benefits Pay”) equal in value to 24 months of continued health and other insurance benefits provided by the Employer to the Participant immediately prior to the Change of Control (or, if greater, as of the Date of
Termination). 

  

	(d)	 Notwithstanding anything to the contrary in the Company’s 2005 Omnibus Incentive Plan (to the extent any
awards under such plan remain outstanding) or 2022 Omnibus Incentive Plan, or any successor thereto under which equity awards are granted, or the applicable award agreements with respect to any such equity awards, the Participant’s outstanding
equity awards, if any, shall accelerate and vest in full with respect to any time-based vesting conditions, and with respect to any stock appreciation rights or stock options, the Participant may exercise such awards until the date that is one
(1) year following the Date of Termination or the expiration of the maximum term of the award, if earlier. If an equity award has performance conditions, the treatment of the performance conditions shall be as set forth in the applicable
award form, which form may provide that payment of any awards shall be delayed until the performance conditions have been satisfied. Notwithstanding, the preceding sentences, to the extent the Company is not the surviving entity in the case of a
Change of Control and equity awards are not exchanged for equivalent awards of any successor entity in connection with the Change in Control, all equity awards shall become fully vested and payable immediately prior to the consummation of the Change
of Control. In the event the prior sentence applies, the treatment of awards with performance conditions shall be based on the provisions of such awards applicable to computing performance in the event of a Change of Control or, if no treatment is
specified, shall be deemed satisfied at 100% of target. 

 If a Participant’s employment is terminated under the circumstances set
forth in Section 3.2(a) entitling the Participant to Separation Benefits and such termination of employment occurs prior to the occurrence of a Change of Control, the Participant’s benefits under this Policy as described in this
Section 3.3 shall commence upon the occurrence of the Change of Control (or such later date as may be required pursuant to Section 409A of the Code) and shall be offset against any severance compensation or benefits the Participant was
entitled to and received as a result of such termination of employment prior to the Change of Control under any other agreement between the Participant and the Company or any other Company plan or policy. 

 Further if a Participant’s employment is terminated under the circumstances set forth in
Section 3.2(a) entitling the Participant to Separation Benefits and such termination of employment occurs prior to the occurrence of a Change of Control and the Change of Control does not meet the definition of a change in control event
for purposes of Section 409A, to the extent required by Section 409A, the Participant’s benefits under this Policy as described in this Section 3.3 shall be paid in accordance with the applicable payment schedule set forth in the
Participant’s Current Employment Agreement or equity award agreement. 
 3.4. Excise Tax. Unless otherwise provided in a Current
Employment Agreement, notwithstanding anything in this Plan to the contrary, in the event it shall be determined that any Payment would be subject to the Excise Tax, and if the Participant’s Net After-Tax
Benefit would be greater if the amount of the Payments was one dollar less than the smallest amount that would give rise to any Excise Tax (the “Reduced Amount”), then the amount of the Payments will be reduced to the Reduced
Amount. The Company and its affiliates shall bear no responsibility for any Excise Tax payable on any Reduced Amount pursuant to a subsequent claim by the Internal Revenue Service or otherwise. For purposes of determining the Reduced Amount
under this Section 3.4, amounts otherwise payable to the Participant shall be reduced such that the reduction of compensation to be provided to the Participant as a result of this Section 3.4 is minimized. In applying this principle,
the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code and where two economically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro
rata basis but not below zero. All determinations required to be made under this Section 3.4, including whether a Reduced Amount or a Net After-Tax Benefit is payable, and the assumptions to be
utilized in arriving at such determinations, shall be made by the Company’s independent auditors or such other nationally recognized certified public accounting firm as may be designated by the Company and approved by the Participant (the
“Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Participant within 15 business days of the receipt of notice from the Participant that there has been a Payment, or such earlier time as
is requested by the Company. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any determination by the Accounting Firm shall be binding upon the Company, its Affiliates and the Participant. 

3.5. Payment Obligations Absolute. Upon a Change of Control and termination of employment under the circumstances described in
Section 3.2(a), subject to Participant’s execution of a general release, the obligations of the Employer to pay or provide the Separation Benefits described in Section 3.3 shall be absolute and unconditional and shall not be affected
by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Employer may have against any Participant. In no event shall a Participant be
obligated to seek other employment or take any other action by way of mitigation of the amounts payable to a Participant under any of the provisions of this Policy, nor shall the amount of any payment or value of any benefits hereunder be reduced by
any compensation or benefits earned by a Participant as a result of employment by another employer. 
 3.6. General Release of Claims. Upon
a Change of Control and termination of employment under the circumstances described in Section 3.2(a), the obligations of the Employer to pay or provide the Separation Benefits described in Section 3.3 are contingent on the
Participant’s (for him/herself, his/her heirs, legal representatives and assigns) agreement to execute a general release in the form and substance as reasonably specified by Employer, releasing the Employer, its affiliated companies and their
officers, directors, agents and employees from any claims or causes of action of any kind that the Participant might have against any one or more of them as of the date of the release, regarding his/her employment or the termination of that
employment. 
 3.7. Non-Exclusivity of Rights; Non-Duplication of
Benefits. Nothing in this Policy shall prevent or limit the Participant’s continuing or future participation in any plan, program, policy or practice provided by the Employer and for which the Participant may qualify, nor shall
anything herein limit or otherwise affect such rights as the Participant may have under any contract or agreement with the Employer; provided, however, that any payments under this Policy shall be reduced by any cash severance payments and/or
insurance continuation benefits payable under any Current Employment Agreement. Amounts or benefits which the Participant is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Employer
shall payable in a cash lump sum as a part of the Separation Benefits under Section 3.3, subject to the terms and conditions thereof 

 Notwithstanding anything herein to the contrary, in the event the Change of Control does not meet the
definition of a change in control event for purposes of Section 409A, to the extent required by Section 409A, the benefits set forth in Section 3.3 shall not be paid in accordance with the payment schedule set forth in
Section 3.3, but shall be paid in accordance with the applicable payment schedule set forth in the Participant’s Current Employment Agreement or equity award agreement. 

4. Successor to Company 
 This Policy shall bind any
successor of the Company, its assets or its businesses (whether direct or indirect, by purchase, merger, consolidation or otherwise), in the same manner and to the same extent that the Company or its Subsidiaries would be obligated under this Policy
if no succession had taken place. 
 In the case of any transaction in which a successor would not by the foregoing provision or by operation of law be
bound by this Policy, the Company shall require such successor expressly and unconditionally to assume and agree to perform the Company’s or its Subsidiaries’ obligations under this Policy, in the same manner and to the same extent that
the Company would be required to perform if no such succession had taken place. The term “Company,” as used in this Policy, shall mean the Company as hereinbefore defined and any successor or assignee to the business or assets which by
reason hereof becomes bound by this Policy. 
 5. Duration, Amendment and Termination 

5.1. Duration. This Policy shall remain in effect until terminated as provided in Section 5.2. Notwithstanding the foregoing, if a Change of
Control occurs, this Policy shall continue in full force and effect and shall not terminate or expire until after all Participants who become entitled to any payments or benefits hereunder shall have received such payments or benefits in full. 

5.2. Amendment and Termination. The Policy may be terminated or amended in any respect by resolution adopted by the Committee prior to the
occurrence of a Change of Control. However, after the Board has knowledge of a possible transaction or event that if consummated would constitute a Change of Control, this Policy may not be terminated or amended in any manner which would adversely
affect the rights or potential rights of Participants, unless and until the Board has determined that all transactions or events that, if consummated, would constitute a Change of Control have been abandoned and will not be consummated, and,
provided that, the Board does not have knowledge of other transactions or events that, if consummated, would constitute a Change of Control. If a Change of Control occurs, the Policy shall no longer be subject to amendment, change, substitution,
deletion, revocation or termination in any respect that adversely affects the rights of Participants, and no Participant shall be removed from Policy participation. 

6. Miscellaneous 
 6.1. Legal Fees. The
Employer agrees to pay, to the full extent permitted by law, all reasonable legal fees and expenses which the Participant may reasonably incur as a result of any contest by the Employer, the Participant or others of the validity or enforceability
of, or liability under, any provision of this Policy or any guarantee of performance thereof (including as a result of any contest by the Participant about the amount of any payment pursuant to this Policy); provided that the Employer shall have no
obligation under this Section 6.1 to the extent the resolution of any such contest includes a finding denying, in total, the Participant’s claims in such contest. Such fees and expenses shall be paid within thirty (30) days
following an invoice from the Participant to the Company following the initial resolution of any contest. 
 6.2. Employment Status. This Policy
does not constitute a contract of employment or impose on the Participant, the Company or the Participant’s Employer any obligation to retain the Participant as an employee or to change the Employer’s policies regarding termination of
employment. 

 6.3. Tax Withholding. The Employer may withhold from any amounts payable under this Policy such
federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
 6.4. Validity and
Severability. The invalidity or unenforceability of any provision of the Policy shall not affect the validity or enforceability of any other provision of the Policy, which shall remain in full force and effect, and any prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 6.5. Governing
Law. The validity, interpretation, construction and performance of the Policy shall in all respects be governed by the laws of the State of Delaware, without reference to principles of conflict of law. 

6.6. Section 409A of the Code. Notwithstanding anything herein to the contrary: 

 

	(a)	 The Policy shall be interpreted, construed and operated to reflect the intent of the Company that all aspects
of the Policy shall be interpreted either to be exempt from the provisions of Section 409A of the Code or, to the extent subject to Section 409A of the Code, comply with Section 409A of the Code and any regulations and other guidance
thereunder. This Policy may be amended at any time, without the consent of any Participant, to avoid the application of Section 409A of the Code in a particular circumstance or to the extent determined necessary or desirable to satisfy any
of the requirements under Section 409A of the Code, but the Employer shall not be under any obligation to make any such amendment. Nothing in the Policy shall provide a basis for any person to take action against the Employer based on
matters covered by Section 409A of the Code, including the tax treatment of any award made under the Policy, and the Employer shall not under any circumstances have any liability to any Participant or other person for any taxes, penalties or
interest due on amounts paid or payable under the Policy, including taxes, penalties or interest imposed under Section 409A of the Code. 

  

	(b)	 To the extent that any payment or benefit pursuant to this Policy constitutes a “deferral of
compensation” subject to Section 409A of the Code (after taking into account to the maximum extent possible any applicable exemptions) (a “409A Payment”) treated as payable upon a separation from service (as defined under
Section 409A of the Code, then, if on the date of the Participant’s separation from service, the Participant is a specified employee (as defined under Section 409A of the Code), then to the minimum extent required for the Participant
not to incur additional taxes pursuant to Section 409A of the Code, no such 409A Payment shall be made to the Participant sooner than the earlier of (i) six (6) months after the Participant’s separation from service; or
(ii) the date of the Participant’s death, at which time all such delayed payments shall be paid in lump sum without interest. 

  

	(c)	 No 409A Payment payable under this Policy shall be subject to acceleration or to any change in the specified
time or method of payment, except as otherwise provided under this Policy and consistent with Section 409A. If under this Policy, a 409A Payment is to be paid in two or more installments, for purposes of Section 409A, each installment
shall be treated as a separate payment. Moreover, if the Company determines in good faith that any provision of this Policy has the effect of impermissibly delaying or accelerating any payment schedule initially set forth in any applicable
employment agreement or equity award, the applicable provision (or part thereof) of this Policy shall be disregarded and have no force or effect and the payment schedule shall be governed by the applicable provision of the applicable employment
agreement or equity award agreement. 

 6.7 Claim Procedure. If a Participant makes a written request alleging a right to
receive Separation Benefits under the Policy or alleging a right to receive an adjustment in benefits being paid under the Policy, the Company shall treat it as a claim for benefits. All claims for Separation Benefits under the Policy shall be sent
to the General Counsel of the Company and must be received within 30 days after the Date of Termination. If the Company determines that any individual who has claimed a right to receive Separation Benefits under the Policy is not entitled to receive
all or a part of the benefits claimed, it will inform the claimant in writing of its determination and the reasons therefore in terms calculated to be understood by the claimant. The notice will be sent within 90 days of the written request, unless
the Company determines additional time, not exceeding 90 days, is needed and provides the Participant with notice, during the initial 90-day period, of the circumstances requiring the extension of time and the
length of the extension. The notice shall make specific reference to the pertinent Policy provisions on which the 

 denial is based, and describe any additional material or information that is necessary. Such notice shall,
in addition, inform the claimant what procedure the claimant should follow to take advantage of the review procedures set forth below in the event the claimant desires to contest the denial of the claim. The claimant may within 90 days thereafter
submit in writing to the Administrator a notice that the claimant contests the denial of his or her claim by the Company and desires a further review. The Administrator shall within 60 days thereafter review the claim and authorize the claimant to
appear personally and review the pertinent documents and submit issues and comments relating to the claim to the persons responsible for making the determination on behalf of the Administrator. The Administrator will render its final decision with
specific reasons therefor in writing and will transmit it to the claimant within 60 days of the written request for review, unless the Administrator determines additional time, not exceeding 60 days, is needed, and so notifies the Participant during
the initial 60-day period. The Committee may revise the foregoing procedures as it determines necessary to comply with changes in the applicable U.S. Department of Labor regulations. 

6.8. Unfunded Status. This Policy is intended to be an unfunded plan and to qualify as a severance pay plan within the meaning of Department of
Labor regulations Section 2510.3-2(b). All payments pursuant to the Policy shall be made from the general funds of the Employer and no special or separate fund shall be established or other segregation of
assets made to assure payment. No Participant or other person shall have under any circumstances any interest in any particular property or assets of the Employer as a result of being subject to the Policy. Notwithstanding the foregoing, the
Committee may authorize the creation of trusts or other arrangements to assist in accumulating funds to meet the obligations created under the Policy; provided, however, that, unless the Committee otherwise determines, the existence of such trusts
or other arrangements is consistent with the “unfunded” status of the Policy. 
 6.9. Reliance on Adoption of Policy. Subject to
Section 5.2, each person who shall become a Participant shall be deemed to have served and continue to serve in such capacity in reliance upon the Change on Control provisions contained in this Policy. 

 SCHEDULE A 

William J. Hornbuckle 
 Corey I. Sanders 

Jonathan S. Halkyard 
 John M. McManus 

 EXHIBIT A 

ARBITRATION 
 This Exhibit A sets forth the
methods for resolving disputes should any arise under the Policy, and accordingly, this Exhibit A shall be considered a part of the Policy. 
  

	1.	 Except for a claim by either Participant or the Company for injunctive relief where such would be otherwise
authorized by law, any controversy or claim arising out of or relating to the Policy or the breach hereof including without limitation any claim involving the interpretation or application of the Policy, shall be submitted to binding arbitration in
accordance with the employment arbitration rules then in effect of the Judicial Arbitration and Mediation Service (“JAMS”), to the extent not inconsistent with this paragraph. This Exhibit A covers any claim Participant might have
against the Company, any officer, director, employee, or agent of the Company, or any of the Company’s subsidiaries, divisions, and affiliates, and all successors and assigns of any of them. The promises by the Company and Participant to
arbitrate differences, rather than litigate them before courts or other bodies, provide consideration for each other, in addition to other consideration provided under the Policy. 

 

	2.	 Claims Subject to Arbitration. This Exhibit A contemplates mandatory arbitration to the fullest
extent permitted by law. Only claims that are justiciable under applicable state or federal law are covered by this Exhibit A. Such claims include any and all alleged violations of any state or federal law whether common law, statutory,
arising under regulation or ordinance, or any other law, brought by any current or former employees. 

  

	3.	 Non-Waiver of Substantive Rights. This Exhibit A does not
waive any rights or remedies available under applicable statutes or common law. However, it does waive Participant’s right to pursue those rights and remedies in a judicial forum. By accepting benefits under the Policy, the
Participant shall be deemed to have voluntarily agreed to arbitrate his or her claims covered by this Exhibit A. 

  

	4.	 Time Limit to Pursue Arbitration; Initiation: To ensure timely resolution of disputes,
Participant and the Company must initiate arbitration within the statute of limitations (deadline for filing) provided for by applicable law pertaining to the claim. The failure to initiate arbitration within this time limit will bar any such
claim. The parties understand that the Company and Participant are waiving any longer statutes of limitations that would otherwise apply, and any aggrieved party is encouraged to give written notice of any claim as soon as possible after the
event(s) in dispute so that arbitration of any differences may take place promptly. The parties agree that the aggrieved party must, within the time frame provided by this Exhibit A, give written notice of a claim. In the event such notice is
to be provided to the Company, the Participant shall provide a copy of such notice of a claim to the Company’s Executive Vice President and General Counsel. Written notice shall identify and describe the nature of the claim, the supporting
facts and the relief or remedy sought. 

  

	5.	 Selecting an Arbitrator: This Exhibit A mandates Arbitration under the then current rules of
the Judicial Arbitration and Mediation Service (JAMS) regarding employment disputes. The arbitrator shall be either a retired judge or an attorney experienced in employment law and licensed to practice in the state in which arbitration is
convened. The parties shall select one arbitrator from among a list of three qualified neutral arbitrators provided by JAMS. If the parties are unable to agree on the arbitrator, each party shall strike one name and the remaining named
arbitrator shall be selected. 

  

	6.	 Representation/Arbitration Rights and Procedures: 

 

	 	a.	 Participant may be represented by an attorney of his/her choice at his/her own expense. 

 

	 	b.	 The arbitrator shall apply the substantive law (and the law of remedies, if applicable) of Nevada (without
regard to its choice of law provisions) and/or federal law when applicable. In all cases, this Exhibit A shall provide for the broadest level of arbitration of claims between the Company and Participant under Nevada or applicable federal
law. The arbitrator is without jurisdiction to apply any different substantive law or law of remedies. 

	 	c.	 The arbitrator shall have no authority to award non-economic damages or
punitive damages except where such relief is specifically authorized by an applicable state or federal statute or common law. In such a situation, the arbitrator shall specify in the award the specific statute or other basis under which such
relief is granted. 

  

	 	d.	 The applicable law with respect to privilege, including attorney-client privilege, work product, and offers to
compromise must be followed. 

  

	 	e.	 The parties shall have the right to conduct reasonable discovery, including written and oral (deposition)
discovery and to subpoena and/or request copies of records, documents and other relevant discoverable information consistent with the procedural rules of JAMS. The arbitrator shall decide disputes regarding the scope of discovery and shall have
authority to regulate the conduct of any hearing and/or trial proceeding. The arbitrator shall have the right to entertain a motion to dismiss and/or motion for summary judgment. 

 

	 	f.	 The parties shall exchange witness lists at least 30 days prior to the trial/hearing procedure. The arbitrator
shall have subpoena power so that either Participant or the Company may summon witnesses. The arbitrator shall use the Federal Rules of Evidence. Both parties have the right to file a post hearing brief. Any party, at its own expense,
may arrange for and pay the cost of a court reporter to provide a stenographic record of the proceedings. 

  

	 	g.	 Any arbitration hearing or proceeding shall take place in private, not open to the public, in Las Vegas,
Nevada. 

  

	7.	 Arbitrator’s Award: The arbitrator shall issue a written decision containing the specific issues
raised by the parties, the specific findings of fact, and the specific conclusions of law. The award shall be rendered promptly, typically within 30 days after conclusion of the arbitration hearing, or the submission of post-hearing briefs if
requested. The arbitrator may not award any relief or remedy in excess of what a court could grant under applicable law. The arbitrator’s decision is final and binding on both parties. Judgment upon an award rendered by the
arbitrator may be entered in any court having competent jurisdiction. 

  

	 	a.	 Either party may bring an action in any court of competent jurisdiction to compel arbitration under this
Exhibit A and to enforce an arbitration award. 

  

	 	b.	 In the event of any administrative or judicial action by any agency or third party to adjudicate a claim on
behalf of Participant which is subject to arbitration under this Exhibit A, Participant hereby waives the right to participate in any monetary or other recovery obtained by such agency or third party in any such action, and Participant’s sole
remedy with respect to any such claim shall be any award decreed by an arbitrator pursuant to the provisions of this Exhibit A. 

  

	8.	 Fees and Expenses: The Company shall be responsible for paying any filing fee and the fees and costs of
the arbitrator; provided, however, that if Participant is the party initiating the claim, Participant will contribute an amount equal to the filing fee to initiate a claim in the court of general jurisdiction in the state in which Participant is (or
was last) employed by the Company. Participant and the Company shall each pay for their own expenses, attorney’s fees (a party’s responsibility for his/her/its own attorney’s fees is only limited by any applicable statute
specifically providing that attorney’s fees may be awarded as a remedy), and costs and fees regarding witness, photocopying and other preparation expenses. If any party prevails on a statutory claim that affords the prevailing party
attorney’s fees and costs, or if there is a written agreement providing for attorney’s fees and/or costs, the arbitrator may award reasonable attorney’s fees and/or costs to the prevailing party, applying the same standards a court
would apply under the law applicable to the claim(s). 

  

	9.	 The arbitration provisions of this Exhibit A shall survive the termination of Participant’s employment
with the Company. These arbitration provisions can only be modified or revoked in a writing signed by both parties and which expressly states an intent to modify or revoke the provisions of this Exhibit A. 

	10.	 The arbitration provisions of this Exhibit A do not alter or affect the termination provisions of the Policy.

  

	11.	 Capitalized terms not defined in this Exhibit A shall have the same definition as in the Policy to which this
is Exhibit A. 

  

	12.	 If any provision of this Exhibit A is adjudged to be void or otherwise unenforceable, in whole or in part, such
adjudication shall not affect the validity of the remainder of Exhibit A. All other provisions shall remain in full force and effect. 

 ACKNOWLEDGMENT 

BOTH PARTIES ACKNOWLEDGE THAT: THEY HAVE CAREFULLY READ THIS EXHIBIT A IN ITS ENTIRETY, THEY UNDERSTAND ITS TERMS, EXHIBIT A CONSTITUTES A MATERIAL
TERM AND CONDITION OF POLICY TO WHICH IT IS EXHIBIT A, AND THEY AGREE TO ABIDE BY ITS TERMS. 
 The parties also specifically acknowledge that by accepting
benefits under the Policy and thereby agreeing to the terms of this Exhibit A, they are waiving the right to pursue claims covered by this Exhibit A in a judicial forum and instead agree to arbitrate all such claims before an arbitrator without a
court or jury. It is specifically understood that this Exhibit A does not waive any rights or remedies which are available under applicable state and federal statutes or common law. Both parties enter into this Exhibit A voluntarily and
not in reliance on any promises or representation by the other party other than those contained in the Agreement or in this Exhibit A. 
 Participant
further acknowledges that Participant has been given the opportunity to discuss this Exhibit A with Participant’s private legal counsel and that Participant has availed himself/herself of that opportunity to the extent Participant wishes to do
so. 
 *                
*                 *Exhibit 10.20
​
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.
​

1

	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]
​

2

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.
​

3

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:
​

4

(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.
​
(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
​

5

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.
​
	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
​

6

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.
​
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
​

7

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.
​
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
​

8

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.
​
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
​

9

extent any payment is effected in Stock, it shall be made subject to satisfaction of all provisions of Article Two above pertaining to options.
​
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
​

11

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.
​
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
​

12

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.
​
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,
​

13

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.
​
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
​
​

14

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.
​
​

15

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.
​
​

16

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

​

17

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.
​
		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

​

18

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
​
		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

​

19

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.
​
		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,

20

Section I.
​
		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.

21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00348-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00348-of-00352.parquet"}]]