Document:

Exhibit 10.1

 

 

 

 

 

 

Humanigen, Inc.

 

2020 Omnibus Incentive
Compensation Plan

 

 

 

 

 

 

    	 	 	 

    	 

    

 

Contents

 

	Article 1. Establishment, Objectives, Duration and Effect on Prior Awards	1
	Article 2. Definitions	1
	Article 3. Administration	5
	Article 4. Shares Subject to the Plan and Maximum Awards and Substituted Awards	6
	Article 5. Eligibility and Participation	8
	Article 6. Stock Options	8
	Article 7. Stock Appreciation Rights	10
	Article 8. Restricted Stock/Stock Awards	11
	Article 9. Restricted Stock Units, Performance Units, Performance Shares, and Cash-Based Awards	12
	Article 10. Beneficiary Designation	13
	Article 11. Deferrals	14
	Article 12. Rights of Participants	14
	Article 13. Termination of Employment/Directorship/Consulting Relationship	14
	Article 14. Change in Control	15
	Article 15. Amendment, Modification, Termination and Tax Compliance.	17
	Article 16. Withholding	18
	Article 17. Successors	18
	Article 18. General Provisions	19

 

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Article 1. Establishment, Objectives,
Duration and Effect on Prior Awards

 

1.1       Establishment
of the Plan. Humanigen, Inc., a Delaware corporation (hereinafter referred to as the “Company”), hereby adopts
the Company’s 2020 Omnibus Incentive Compensation Plan (hereinafter referred to as the “Plan”), as set forth
in this document. The Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights,
Restricted Stock, Stock Awards, Restricted Stock Units, Performance Shares, Performance Units, Cash-Based Awards and Substitute
Awards. The Plan shall become effective following communication to the Company’s stockholders of the approval of the Plan
in accordance with applicable provisions of Delaware law and the Exchange Act (the “Effective Date”), and shall remain
in effect as provided in Section 1.3 hereof.

 

1.2       Objectives
of the Plan. The objectives of the Plan are to optimize the profitability and growth of the Company through annual and long-term
incentives that are consistent with the Company’s goals and that link the personal interests of Participants to those of
the Company’s stockholders, to provide Participants with an incentive for excellence in individual performance, and to promote
teamwork among Participants. The Plan is further intended to provide flexibility to the Company and its Affiliates in their ability
to motivate, attract, and retain the services of Participants who make significant contributions to the Company’s success
and to allow Participants to share in that success.

 

1.3       Duration
of the Plan. The Plan shall commence on the Effective Date and shall remain in effect, subject to the right of the Committee
to amend or terminate the Plan at any time pursuant to Article 15 hereof, until all Shares subject to it shall have been purchased
or acquired according to the Plan’s provisions. However, in no event may an Award be granted under the Plan on or after
the tenth (10th) anniversary of the Effective Date.

 

1.4       Prior
Awards. As of the Effective Date no further Awards shall be made under the terms of the Company’s 2012 Equity Plan,
as amended (the “Predecessor Plan”) that were in effect prior to the Effective Date. Awards granted before the Effective
Date shall be governed by the terms of the Predecessor Plan.

 

Article 2. Definitions

 

Whenever used in the Plan, the following
terms shall have the meanings set forth below, and when the meaning is intended, the initial letter of the word shall be capitalized:

 

2.1       “Affiliate”
shall have the meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations of the Exchange Act.

 

2.2       “Award”
means, individually or collectively, a grant under this Plan of Nonqualified Stock Options, Incentive Stock Options, Stock
Appreciation Rights, Restricted Stock, Stock Awards, Restricted Stock Units, Performance Shares, Performance Units, Cash-Based
Awards, or Substitute Awards.

 

2.3       “Award
Agreement” means a written or electronic agreement entered into by the Company and each Participant setting forth the
terms and provisions applicable to Awards granted under this Plan.

 

2.4       “Beneficial
Owner” or “Beneficial Ownership” shall have the meaning ascribed to such term in Rule 13d-3 of the
General Rules and Regulations under the Exchange Act.

 

2.5       “Black
Horse Entity” means Black Horse Capital Management LLC, and its Affiliates.

 

    	 	 

	 

    	 

    

 

2.6       “Board”
or “Board of Directors” means the Board of Directors of the Company.

 

2.7       “Cash-Based
Award” means an Award granted to a Participant whose value is denominated in cash as described in Article 9 hereof.

 

2.8       “Change
in Control” means the first to occur of the following:

 

(a)       the
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”),
other than a Black Horse Entity, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 50% or more of either (i) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common
Stock”) or (ii) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally
in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes
of this Section, the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company,
(B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained
by the Company or one of its affiliates, or (D) any acquisition pursuant to a transaction that complies with (c)(i), (c)(ii) and
(c)(iii) below;

 

(b)       individuals
who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least
a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election
or nomination for election by the Company’s stockholders was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding,
for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election
contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board;

 

(c)       consummation
of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Company
or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition
of assets or stock of another entity by the Company or any of its subsidiaries (each, a “Business Combination”), in
each case, unless, following such Business Combination, (i) all or substantially all of the individuals and entities that were
the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior
to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common
stock and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors,
as the case may be, of the corporation or entity resulting from such Business Combination (including, without limitation, a corporation
or entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either
directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such
Business Combination of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be,
(ii) no Person (excluding any employee benefit plan (or related trust) of the Company or any corporation or entity resulting from
such Business Combination), other than a Black Horse Entity, beneficially owns, directly or indirectly, 50% or more of, respectively,
the then-outstanding shares of common stock of the corporation or entity resulting from such Business Combination or the combined
voting power of the then-outstanding voting securities of such corporation or entity, except to the extent that such ownership
existed prior to the Business Combination, and (iii) at least a majority of the members of the board of directors of the corporation
or entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial
agreement or of the action of the Board providing for such Business Combination; or

 

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(d)       approval
by the stockholders of the Company of a complete liquidation or dissolution of the Company.

 

Notwithstanding the foregoing, with respect to a Section
409A Award, the Committee may specify that the definition of Change in Control must also constitute an event that is a change
in ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company
within the meaning of Section 409A.

 

2.9       “Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

2.10       “Committee”
means the Board, or any committee appointed by the Board, to administer Awards to Participants, as specified in Article 3
hereof.

 

2.11       “Company”
means Humanigen, Inc., a Delaware corporation and any successor thereto as provided in Article 17 hereof.

 

2.12       “Consultant”
means a consultant or adviser who provides bona fide services to the Company, a Subsidiary or an Affiliate as an independent
contractor and who qualifies as a consultant or advisor under Instruction A.1.(a)(1) of Form S-8 under the Securities Act.

 

2.13       “Director”
means any individual who is a member of the Board of Directors of the Company; provided, however, that any Director who is
employed by the Company shall be considered an Employee under the Plan.

 

2.14       “Disability”
shall have the meaning ascribed to such term in the Award Agreement. If no such definition is provided in the Award Agreement,
“Disability” shall mean a medically determinable physical or mental impairment which can be expected to result in
death or has lasted or can be expected to last for a continuous period of not less than six months if such disabling condition
renders the person unable to perform the material and substantial duties of his or her occupation. With respect to Section 409A
Awards that become payable upon a disability, such disability must also qualify as a disability within the meaning of Treasury
Regulation 1.409A-3(i)(4).

 

2.15       “Effective
Date” shall have the meaning ascribed to such term in Section 1.1 hereof.

 

2.16       “Employee”
means any employee of the Company or its Subsidiaries or Affiliates.

 

2.17       “Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.

 

2.18       “Fair
Market Value” as of any date and in respect of any Share means the then most recent closing price of a Share reflected
in the consolidated trading tables of the Wall Street Journal or any other publication selected by the Board or a Committee, provided
that, if Shares shall not have been traded on the OTCQB Venture Market or a national securities exchange for more than 10 days
immediately preceding such date or if deemed appropriate by the Committee for any other reason, the fair market value of Shares
shall be as determined by the Committee in such other manner as it may deem appropriate, provided that such valuation is consistent
with the requirements of Section 409A. In no event shall the fair market value of any Share be less than its par value.

 

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2.19       “Freestanding
SAR” means an SAR that is granted independently of any Options, as described in Article 7 hereof.

 

2.20       “Incentive
Stock Option” or “ISO” means an option to purchase Shares granted under Article 6 hereof and that
is designated as an Incentive Stock Option and that is intended to meet the requirements of Code Section 422. To the extent that
an option is granted that is intended to meet the requirements of Code Section 422, but fails to meet such requirements, the option
will be treated as a NQSO.

 

2.21       “Insider”
shall mean an individual who is, on the relevant date, an executive officer, director or ten percent (10%) beneficial owner
of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, all as defined
under Section 16 of the Exchange Act.

 

2.22       “Nonqualified
Stock Option” or “NQSO” means an option to purchase Shares granted under Article 6 hereof and that
is not intended to be treated as an Incentive Stock Option, or that otherwise does not meet such requirements.

 

2.23       “Option”
means an Incentive Stock Option or a Nonqualified Stock Option, as described in Article 6 hereof.

 

2.24       “Option
Price” means the price at which a Share may be purchased by a Participant pursuant to an Option.

 

2.25       “Participant”
means an Employee, a Director or a Consultant who has been selected to receive an Award or who has outstanding an Award granted
under the Plan.

 

2.26       “Performance
Share” means an Award granted to a Participant whose value is denominated in Shares and is earned by satisfaction of
specified performance goals and such other terms and conditions that the Committee may specify, as described in Article 9 hereof.

 

2.27       “Performance
Unit” means an Award granted to a Participant whose value is specified by the Committee and is earned by satisfaction
of specified performance goals and such other terms and conditions that the Committee may specify, as described in Article 9 hereof.

 

2.28       “Period
of Restriction” means the period during which the transfer of Shares of Restricted Stock is not permitted (e.g., based
on the passage of time, the achievement of performance goals, or upon the occurrence of other events as determined by the Committee,
at its discretion), and the Shares are subject to a substantial risk of forfeiture, pursuant to the Restricted Stock Award Agreement,
as provided in Article 8 hereof.

 

2.29       “Person”
shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a “group” as defined in Section 13(d) thereof.

 

2.30       “Restricted
Stock” means an Award granted to a Participant pursuant to Article 8 hereof.

 

2.31       “Restricted
Stock Units” means an Award granted to a Participant whose value is denominated in Shares and is earned by satisfaction
of specified service requirements and such other terms and conditions that the Committee may specify, as described in Article
9 hereof.

 

2.32       “Retirement”
means a termination of employment after attaining age 55 and completing 5 years of service or such other definition set forth
in an Award Agreement.

 

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2.33       “Section
409A” means Code Section 409A and the regulations and other guidance issued thereunder.

 

2.34       “Section
409A Award” means an Award that is subject to the requirements of Section 409A.

 

2.35       “Securities
Act” means the Securities Act of 1933, as amended from time to time, or any successor act thereto.

 

2.36       “Shares”
means the Company’s common stock, par value $0.001 per share.

 

2.37       “Stock
Appreciation Right” or “SAR” means an Award, granted alone or in connection with a related Option,
designated as an SAR, pursuant to the terms of Article 7 hereof.

 

2.38       “Stock
Award” means an Award of Shares granted to a Participant pursuant to Section 8.7 hereof.

 

2.39       “Substitute
Awards” means Awards granted upon assumption of, or in substitution for, outstanding equity or equity-based awards previously
granted by a company or other entity (i) all or a portion of the assets or equity of which is acquired by the Company or a Subsidiary,
or (ii) with which the Company or a Subsidiary merges or otherwise combines.

 

2.40       “Subsidiary”
means any corporation, partnership, joint venture, or other entity in which the Company directly or indirectly has a majority
voting interest.

 

2.41       “Tandem
SAR” means an SAR that is granted in connection with a related Option pursuant to Article 7 hereof, the exercise of
which shall require forfeiture of the right to purchase a Share under the related Option (and when a Share is purchased under
the Option, the Tandem SAR shall similarly be canceled).

 

Article 3. Administration

 

3.1       General.
Subject to the terms and conditions of the Plan, the Plan shall be administered by the Committee. The members of the Committee
shall be appointed from time to time by, and shall serve at the discretion of, the Board of Directors. The Committee shall have
the authority to delegate administrative duties to officers of the Company.

 

3.2       Authority
of the Committee. Except as limited by law or by the Certificate of Incorporation or Bylaws of the Company, and subject to
the provisions herein (including, with respect to Section 409A Awards, the requirements of Section 409A), the Committee shall
have full power to select Employees, Directors and Consultants who shall participate in the Plan; determine the sizes and types
of Awards; determine the terms and conditions, including vesting criteria, of Awards in a manner consistent with the Plan; construe
and interpret the Plan and any agreement or instrument entered into under the Plan; establish, amend, or waive rules and regulations
for the Plan’s administration; and amend the terms and conditions of any outstanding Award as provided in the Plan. Further,
the Committee shall make all other determinations that it deems necessary or advisable for the administration of the Plan. As
permitted by law and the terms of the Plan, the Committee may delegate its authority herein. No member of the Committee shall
be liable for any action taken or decision made in good faith relating to the Plan or any Award granted hereunder.

 

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3.3       Decisions
Binding. All determinations and decisions made by the Committee pursuant to the provisions of the Plan and all related orders
and resolutions of the Committee shall be final, conclusive, and binding on all persons, including the Company, its stockholders,
Directors, Employees, Participants, and their estates and beneficiaries, unless changed by the Board.

 

Article 4. Shares Subject to the
Plan and Maximum Awards and Substituted Awards

 

4.1       Number
of Shares Available for Grants; Share Counting and Reacquired Shares. The number of Shares reserved for issuance to
Participants shall be 7 million (7,000,000). Shares issued under the Plan may be authorized but unissued shares or treasury
shares. The number of Shares reserved for issuance to Participants under the Plan is subject to adjustment as provided in
Section 4.2 hereof.

 

For purposes of counting the number
of Shares available for Awards under the Plan, the full number of shares of the Company’s common stock covered by Freestanding
SARs shall be counted against the number of Shares available for Awards (i.e., not the net Shares issued in satisfaction of a
Freestanding SAR Award); provided, however, that Freestanding SARs that may be settled in cash only shall not be so counted. Additionally,
if an Option may be settled by issuing net Shares (i.e., withholding a number of Shares equal to the exercise price), the full
number of shares of the Company’s common stock covered by the Option shall be counted against the number of Shares available
for Awards, not the net Shares issued in satisfaction of an Option. If any Award (a) expires or is terminated, surrendered or
canceled without having been fully exercised or is forfeited in whole or in part, or (b) results in any Shares not being issued
(including as a result of any Award that was permitted to be settled either in cash or in stock actually being settled in cash),
the unissued Shares covered by such Award shall again be available for the grant of Awards; provided, however, in the case of
Incentive Stock Options, the foregoing shall be subject to any limitations under the Code. The following Shares shall not be added
back to the number of Shares available for the future grant of Awards: (i) shares of the Company’s common stock tendered
to the Company by a Participant to (A) purchase shares of the Company’s common stock upon the exercise of an Award, or (B)
satisfy tax withholding obligations (including shares retained from the Award creating the tax obligation); (ii) shares of the
Company’s common stock that were subject to a stock-settled SAR granted under the Plan that were not issued upon the exercise
of such SAR, and (iii) shares of the Company’s common stock repurchased by the Company on the open market using the proceeds
from the exercise of an Award. Subject to the foregoing, the Committee shall determine the appropriate methodology for calculating
the number of Shares issued pursuant to the Plan.

 

The maximum number of Shares which
may be issued under Incentive Stock Options granted under the Plan is  7 million (7,000,000).

 

4.2       Adjustments
in Authorized Shares. In the event of material changes in the outstanding number of Shares or in the capital structure of
the Company by reason of a stock split, stock or extraordinary dividend, a reverse stock split, or an extraordinary corporate
transaction, such as any recapitalization, merger, consolidation, combination, exchange of shares or the like, separation, including
a spin-off, or other distribution of stock or property of the Company, any reorganization (whether or not such reorganization
comes within the definition of such term in Code Section 368) or any partial or complete liquidation of the Company, the Committee
shall make an appropriate adjustment in the number and class of Shares that may be delivered under Section 4.1, and in the number,
class of and/or price of Shares subject to outstanding Awards granted under the Plan, as may be determined to be equitable by
the Committee, in its sole discretion, to prevent dilution or enlargement of rights.

 

4.3       Adjustment
of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The Committee may make adjustments in the terms and
conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation,
the events described in Section 4.2 hereof) affecting the Company or the financial statements of the Company or of changes in
applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate
in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan.

 

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4.4       Limit
on Compensation Paid to Directors. The total compensation paid to a single Director in any calendar year, including the cash
compensation and the cash value of all equity Awards granted to the Director in such calendar year, shall not exceed $750,000.
Such annual limit shall be measured based on the value of an Award as of the date the Award is granted (not the date of payment).
Accordingly, the annual limit shall not include the value of an Award in the calendar year when it is paid or vests if such year
is different from the year the Award is granted. For purposes of this Section 4.4, Director compensation in any calendar year
shall include amounts or grants that would have been paid or made, as applicable, to the Director in the calendar year absent
the Director’s election to defer such compensation to a subsequent year.

 

4.5       Substitute
Awards.

 

(a)       Notwithstanding
any terms or conditions of the Plan to the contrary, Substitute Awards may have substantially the same terms and conditions, including
without limitation provisions relating to vesting, exercise periods, expiration, payment, forfeiture, and the consequences of
termination of service, as the awards that they replace, as determined by the Committee in its sole discretion.

 

(b)       The
recipient or holder of a Substitute Award shall be an eligible Participant hereunder even if not an Employee, Director or Consultant
with respect to the Company or an Affiliate.

 

(c)       In
the case of a Substitute Award, the date of grant may be treated as the effective date of the grant of such Award under the original
plan under which the award was authorized.

 

(d)       The
per share exercise price of an Option that is a Substitute Award may be less than 100% of the Fair Market Value of a Share on
the date of grant, provided that such substitution or adjustment complies with applicable laws and regulations, including the
listing requirements of the OTCQB Venture Market or any national securities exchange on which the Company’s common stock
may then be listed or quoted and Section 409A or Section 424 of the Code, as applicable. The per share exercise price of a Freestanding
SAR that is a Substitute Award may be less than 100% of the Fair Market Value of a Share on the date of grant, provided that such
substitution or adjustment complies with applicable laws and regulations, including the listing requirements of the OTCQB Venture
Market or any national securities exchange on which the Company’s common stock may then be listed or quoted and Section
409A, as applicable.

 

(e)       Anything
to the contrary in this Plan notwithstanding, any Shares underlying Substitute Awards shall not be counted against the limits
set forth in Section 4.1. Anything to the contrary in this Plan notwithstanding, any Shares underlying Substitute Awards shall
not be counted against the number of Shares authorized for issuance or the maximum number of Shares which may be issued under
Incentive Stock Options, and the lapse, expiration, termination, forfeiture or cancellation of any Substitute Award without the
issuance of Shares or payment of cash thereunder shall not result in an increase the number of Shares available for issuance under
the Plan.

 

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Article 5. Eligibility and Participation

 

5.1       Eligibility.
Persons eligible to participate in this Plan include all Employees, Directors and Consultants.

 

5.2       Actual
Participation. Subject to the provisions of the Plan, the Committee may, from time to time, select from all eligible Employees,
Directors and Consultants, those to whom Awards shall be granted and shall determine the nature and amount of each Award.

 

5.3       Newly
Eligible Participants. The Committee shall be entitled to make such rules, regulations, determinations and awards as it deems
appropriate in respect of any Participant who becomes eligible to participate in the Plan after the commencement of an award or
incentive period.

 

5.4       Leaves
of Absence. The Committee shall be entitled to make such rules, regulations, and determinations as it deems appropriate under
the Plan in respect of any leave of absence taken by the recipient of any award. Without limiting the generality of the foregoing,
the Committee shall be entitled to determine: (a) whether or not any such leave of absence shall constitute a termination of employment
within the meaning of the Plan; and (b) the impact, if any, of such leave of absence on awards under the Plan theretofore made
to any recipient who takes such leave of absence. Notwithstanding the foregoing, with respect to any Section 409A Award, all leaves
of absences and determinations of terminations of employment must be construed and interpreted consistent with the requirements
of Section 409A and the definition of “separation from service” thereunder.

 

Article 6. Stock Options

 

6.1       Grant
of Options. Subject to the terms and provisions of the Plan, Options may be granted to Participants in such number, and upon
such terms, and at any time and from time to time as shall be determined by the Committee. Notwithstanding the foregoing, Incentive
Stock Options may only be granted to Employees of Humanigen, Inc. or its Affiliates or Subsidiaries; provided that the Affiliate
or Subsidiary is a type of entity whose employees can receive such options under Code Sections 422 and 424.

 

6.2       Award
Agreement. Each Option grant shall be evidenced by an Award Agreement that shall specify the Option Price, the duration of
the Option, the number of Shares to which the Option pertains, and such other provisions as the Committee shall determine which
are not inconsistent with the terms of the Plan.

 

6.3       Option
Price. The Option Price for each grant of an Option under this Plan shall be as determined by the Committee; provided, however,
the per-share exercise price shall not be less than 100 percent of the Fair Market Value of the Shares on the date the Option
is granted. With respect to a Participant who owns, directly or indirectly, more than 10% of the total combined voting power of
all classes of the stock of the Company or any Subsidiary, the Option Price of Shares subject to an ISO shall be at least 110%
of the Fair Market Value of such Shares on the ISO’s grant date.

 

6.4       Duration
of Options. Each Option granted to a Participant shall expire at such time as the Committee shall determine at the time of
grant; provided that the Option must expire on or before the date that is the tenth anniversary of the date of grant. Notwithstanding
the foregoing, with respect to ISOs, in the case of a Participant who owns, directly or indirectly, more than 10% of the total
combined voting power of all classes of the stock of the Company or any Subsidiary, no such ISO shall be exercisable later than
the fifth anniversary of the grant date.

 

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6.5       Exercise
of Options. Options granted under this Article 6 shall be exercisable at such times and be subject to such restrictions and
conditions as the Committee shall in each instance approve, which need not be the same for each grant or for each Participant.

 

6.6       Payment.
Options granted under this Article 6 shall be exercised by the delivery of a written or electronic notice of exercise to the Company,
setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares.

 

The Option Price upon exercise of
any Option shall be payable to the Company in full either: (a) in cash or its equivalent; or (b) by tendering previously acquired
Shares having an aggregate Fair Market Value at the time of exercise equal to the total Option Price; or (c) by a combination
of (a) and (b); or (d) any other method approved by the Committee in its sole discretion. The tendering of previously acquired
shares may be done through attestation. No fractional shares may be tendered or accepted in payment of the Option Price.

 

Cashless exercises are permitted
pursuant to Federal Reserve Board’s Regulation T, subject to applicable securities law restrictions, or by any other means
which the Committee determines to be consistent with the Plan’s purpose and applicable law.

 

Subject to any governing rules or
regulations, as soon as practicable after receipt of notification of exercise and full payment, the Company shall deliver to the
Participant, in the Participant’s name, Share certificates in an appropriate amount based upon the number of Shares purchased
under the Option(s).

 

Unless otherwise determined by the
Committee, all payments under all of the methods indicated above shall be paid in United States dollars.

 

6.7       Restrictions
on Share Transferability. The Committee may impose such restrictions on any Shares acquired pursuant to the exercise of an
Option granted under this Article 6 as it may deem advisable, including, without limitation, restrictions under applicable federal
securities laws, under the requirements of any stock exchange or market upon which such Shares are then listed and/or traded,
or under any blue sky or state securities laws applicable to such Shares.

 

6.8       Nontransferability
of Options.

 

(a)       Incentive
Stock Options. No ISO granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated,
other than by will or by the laws of descent and distribution. Further, all ISOs granted to a Participant under the Plan shall
be exercisable during his or her lifetime only by such Participant.

 

(b)       Nonqualified
Stock Options. Except as otherwise provided in a Participant’s Award Agreement, no NQSO granted under this Article 6
may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent
and distribution; provided however, that no NQSO shall be transferable for value or consideration. Further, except as otherwise
provided in a Participant’s Award Agreement, all NQSOs granted to a Participant under this Article 6 shall be exercisable
during his or her lifetime only by such Participant or such Participant’s legal representative.

 

(c)       Domestic
Relations Orders. Notwithstanding paragraphs (a) and (b) above in this Section 6.8, subject to the approval of the Committee,
an Option may be transferred pursuant to the terms of a domestic relations order, official marital settlement agreement or other
divorce or separation instrument as permitted by Treasury Regulation Section 1.421-1(b)(2). If an Option is an
ISO, such Option may be deemed to be a NQSO as a result of such transfer.

 

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6.9       Restriction
on Cash Buyouts of Underwater Options. The Company may not purchase, cancel or buy out an underwater Option in exchange for
cash without first obtaining Shareholder approval.

 

6.10       Dividends
on Unvested Shares. Any dividends with respect to the Shares issued in connection with the exercise of an Option shall not
be paid to the Participant until the Shares to which the dividends relate vest. If any Shares are forfeited, the Participant shall
have no right to the dividends related to the forfeited Shares.

 

6.11       $100,000 Limitation on
ISOs.To the extent that the aggregate Fair Market Value (determined at the time of grant) of the Shares with respect to
which ISOs are exercisable for the first time by any Participant during any calendar year (under all plans of the Company and
any Affiliates) exceeds $100,000 (or such other limit established in the Code) or otherwise does not comply with the rules governing
ISOs, the Options or portions thereof that exceed such limit (according to the order in which they were granted) or otherwise
do not comply with such rules will be treated as NQSOs, notwithstanding any contrary provision of the applicable Award Agreement.

 

Article 7. Stock Appreciation
Rights

 

7.1       Grant
of SARs. Subject to the terms and conditions of the Plan, SARs may be granted to Participants at any time and from time to
time as shall be determined by the Committee. The Committee may grant Freestanding SARs, Tandem SARs, or any combination of these
forms of SARs.

 

Subject to the terms and conditions
of the Plan, the Committee shall have complete discretion in determining the number of SARs granted to each Participant and, consistent
with the provisions of the Plan, in determining the terms and conditions pertaining to such SARs.

 

The grant price of a Freestanding
SAR shall not be less than the Fair Market Value of a Share on the date of grant of the SAR. The grant price of Tandem SARs shall
equal the Option Price of the related Option.

 

7.2       SAR
Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall specify the grant price, the term of the SAR,
and such other provisions as the Committee shall determine.

 

7.3       Term
of SARs. The term of an SAR granted under the Plan shall be determined by the Committee, in its sole discretion; provided
that the SAR must expire on or before the date that is the tenth anniversary of the date of grant.

 

7.4       Exercise
of Freestanding SARs. Freestanding SARs may be exercised upon whatever terms and conditions the Committee, in its sole discretion,
imposes upon them.

 

7.5       Exercise
of Tandem SARs. Tandem SARs may be exercised for all or part of the Shares subject to the related Option upon the surrender
of the right to exercise the equivalent portion of the related Option. A Tandem SAR may be exercised only with respect to the
Shares for which its related Option is then exercisable.

 

7.6       Payment
of SAR Amount. Upon exercise of an SAR, a Participant shall be entitled to receive payment from the Company in an amount determined
by multiplying:

 

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(a)       The
excess of the Fair Market Value of a Share on the date of exercise over the grant price; by

 

(b)       The
number of Shares with respect to which the SAR is exercised.

 

In the sole discretion of the Committee,
the payment upon SAR exercise may be in cash, in Shares of equivalent value, in some combination thereof, or in any other manner
approved by the Committee. The Committee’s determination regarding the form of SAR payout shall be set forth in the Award
Agreement pertaining to the grant of the SAR.

 

7.7       Nontransferability
of SARs. Except as otherwise provided in a Participant’s Award Agreement, no SAR granted under the Plan may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.
Further, except as otherwise provided in a Participant’s Award Agreement, all SARs granted to a Participant under the Plan
shall be exercisable during his or her lifetime only by such Participant or such Participant’s legal representative. Notwithstanding
the foregoing, unless otherwise provided in a Participant’s Award Agreement, subject to the approval of the Committee, a
SAR may be transferred pursuant to the terms of a domestic relations order, official marital settlement agreement or other divorce
or separation instrument as permitted by applicable law.

 

7.8       Restriction
on Cash Buyouts of Underwater SARs. The Company may not purchase, cancel or buy out an underwater SAR in exchange for cash
without first obtaining Shareholder approval.

 

7.9       Dividends
on Unvested Shares. Any dividends with respect to the Shares issued in connection with the exercise of a SAR shall not be
paid to the Participant until the Shares to which the dividends relate vest. If any Shares are forfeited, the Participant shall
have no right to the dividends related to the forfeited Shares.

 

Article 8. Restricted Stock/Stock
Awards

 

8.1       Grant
of Restricted Stock. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may
grant Shares of Restricted Stock to Participants in such amounts, as the Committee shall determine.

 

8.2       Restricted
Stock Agreement. Each Restricted Stock grant shall be evidenced by a Restricted Stock Award Agreement that shall specify the
Period(s) of Restriction, the number of Shares of Restricted Stock granted, and such other provisions as the Committee shall determine.

 

8.3       Transferability.
Unless otherwise specified by the Committee in its sole discretion and set forth in the Restricted Stock Award Agreement, the
Shares of Restricted Stock granted herein may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated
until the end of the applicable Period of Restriction established by the Committee and specified in the Restricted Stock Award
Agreement, or upon earlier satisfaction of any other conditions, as specified by the Committee in its sole discretion and set
forth in the Restricted Stock Award Agreement. All rights with respect to the Restricted Stock granted to a Participant under
the Plan shall be available during his or her lifetime only to such Participant or such Participant’s legal representative.
Notwithstanding the foregoing, unless otherwise provided in a Participant’s Award Agreement, subject to the approval of
the Committee, the Shares of Restricted Stock granted herein may be transferred pursuant to the terms of a domestic relations
order, official marital settlement agreement or other divorce or separation instrument as permitted by applicable law.

 

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8.4       Other
Restrictions. The Committee shall impose such other conditions and/or restrictions on any Shares of Restricted Stock granted
pursuant to the Plan as it may deem advisable including, without limitation, a requirement that Participants pay a stipulated
purchase price for each Share of Restricted Stock, restrictions based upon the achievement of specific performance goals, time-based
restrictions on vesting following the attainment of the performance goals, time-based restrictions, and/or restrictions under
applicable federal or state securities laws.

 

To the extent deemed appropriate
by the Committee, the Company may retain the certificates representing Shares of Restricted Stock in the Company’s possession
until such time as all conditions and/or restrictions applicable to such Shares have been satisfied.

 

Except as otherwise provided in
the Award Agreement, Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan shall become freely
transferable by the Participant after the last day of the applicable Period of Restriction.

 

8.5       Voting
Rights. If the Committee so determines, Participants holding Shares of Restricted Stock granted hereunder may be granted the
right to exercise full voting rights with respect to those Shares during the Period of Restriction.

 

8.6       Dividends
and Other Distributions. During the Period of Restriction, Participants holding Shares of Restricted Stock or Stock Awards
granted hereunder may, if the Committee so determines, be credited with dividends paid with respect to the underlying Shares while
they are so held; provided that, any dividends with respect to the Restricted Stock or Stock Awards shall not be paid to the Participant
until the Shares of Restricted Stock or Stock Awards to which the dividends relate vest. If any Shares of Restricted Stock or
Stock Awards are forfeited, the Participant shall have no right to the dividends related to the forfeited Shares.

 

8.7       Stock
Award. The Committee may grant and award Shares to a Participant that are not subject to Periods of Restrictions and which
may be subject to such conditions or provisions as the Committee determines.

 

Article 9. Restricted Stock Units,
Performance Units, Performance Shares, and Cash-Based Awards

 

9.1       Grant
of Restricted Stock Units, Performance Units, Performance Shares and Cash-Based Awards. Subject to the terms of the Plan,
Restricted Stock Units, Performance Shares, Performance Units, and/or Cash-Based Awards may be granted to Participants in such
amounts and upon such terms, and at any time and from time to time, as shall be determined by the Committee.

 

9.2       Award
Agreement. At the Committee’s discretion, each grant of Restricted Stock Units, Performance Shares, Performance Units
and Cash-Based Awards may be evidenced by an Award Agreement that shall specify the initial value, the duration of the Award,
the performance measures and/or service requirements, if any, applicable to the Award, and such other provisions as the Committee
shall determine which are not inconsistent with the terms of the Plan.

 

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9.3       Value
of Performance Units/Shares and Cash-Based Awards. Each Performance Unit shall have an initial value that is established by
the Committee at the time of grant. Each Restricted Stock Unit and Performance Share shall have an initial value equal to the
Fair Market Value of a Share on the date of grant. Each Cash-Based Award shall have a value as may be determined by the Committee.
The Committee shall set performance goals and/or service requirements in its discretion which, depending on the extent to which
they are met, will determine the number and/or value of Restricted Stock Units, Performance Units, Performance Shares and Cash-Based
Awards that will be paid out to the Participant. Generally, a Participant’s right to receive amounts under a Restricted
Stock Unit award shall be based on the Participant’s satisfaction of a service requirement and such other terms and conditions
that the Committee may specify. Generally, a Participant’s right to receive amounts under a Performance Unit, Performance
Share or Cash-Based Award shall be based on the satisfaction of a performance requirement and such other terms and conditions
that the Committee may specify. The Committee has full discretionary authority to establish performance goals and/or service requirements,
and a performance goal may include a service requirement. For purposes of this Article 9, the time period during which the performance
goals and/or service requirements must be met shall be called a “Performance Period.”

 

9.4       Earning
of Restricted Stock Units, Performance Units, Performance Shares and Cash-Based Awards. Subject to the terms of this Plan
and the Award Agreement (if any), after the applicable Performance Period has ended, the holder of Restricted Stock Units, Performance
Units, Performance Shares or Cash-Based Awards shall be entitled to receive payout on the number and value of Restricted Stock
Units, Performance Units, Performance Shares or Cash-Based Awards earned by the Participant over the Performance Period, to be
determined as a function of the extent to which the corresponding performance goals and/or service requirements have been achieved.
Unless otherwise determined by the Committee, notwithstanding any other provision of the Plan, payment of Cash-Based Awards shall
only be made for those Participants who are Directors or in the employ of the Company at the end of the Performance Period or,
if none has been specified, the end of the applicable award year.

 

9.5       Form
and Timing of Payment of Restricted Stock Units, Performance Units, Performance Shares and Cash-Based Awards. Payment of earned
Restricted Stock Units, Performance Units, Performance Shares and Cash-Based Awards shall be as determined by the Committee and,
if applicable, as evidenced in the related Award Agreement. Subject to the terms of the Plan, the Committee, in its sole discretion,
may pay earned Restricted Stock Units, Performance Units, Performance Shares and Cash-Based Awards in the form of cash or in Shares
(or in a combination thereof) that have an aggregate Fair Market Value equal to the value of the earned Restricted Stock Units,
Performance Units, Performance Shares and Cash-Based Awards at the close of the applicable Performance Period. Such Shares may
be granted subject to any restrictions deemed appropriate by the Committee. No fractional shares will be issued. The determination
of the Committee with respect to the form of payout of such Awards shall be set forth in the Award Agreement pertaining to the
grant of the Award.

 

Unless otherwise provided by the
Committee, Participants holding Restricted Stock Units, Performance Units, or Performance Shares may be entitled to receive dividends
or dividend units with respect to dividends declared on Shares underlying such Awards. No dividends or dividend units with respect
to the Restricted Stock Units, Performance Units, or Performance Shares shall not be paid to the Participant until the Restricted
Stock Units, Performance Units, or Performance Shares to which the dividends relate vest. If any Restricted Stock Units, Performance
Units, or Performance Shares are forfeited, the Participant shall have no right to the dividends or dividend units related to
the forfeited Awards.

 

9.6       Nontransferability.
Except as otherwise provided in a Participant’s Award Agreement, Restricted Stock Units, Performance Units, Performance
Shares and Cash-Based Awards may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than
by will or by the laws of descent and distribution. Further, except as otherwise provided in a Participant’s Award Agreement,
a Participant’s rights under such Awards shall be exercisable during the Participant’s lifetime only by such Participant
or such Participant’s legal representative. Notwithstanding the foregoing, if provided in a Participant’s Award Agreement,
subject to the approval of the Committee, Restricted Stock Units, Performance Units, Performance Shares and Cash-Based Awards
granted herein may be transferred pursuant to the terms of a domestic relations order, official marital settlement agreement or
other divorce or separation instrument as permitted by applicable law, including Section 409A of the Code, to the extent applicable.

 

    	 	13

	 

    	 

    

 

Article 10. Beneficiary Designation

 

The Committee may permit Participants
under the Plan to name, from time to time, any beneficiary or beneficiaries (who may be named contingently or successively) to
whom any benefit under the Plan is to be paid in case of his or her death before he or she receives any or all of such benefit.
Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Company,
and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime.
If a beneficiary designation has not been made, or the beneficiary was not properly designated (in the sole discretion of the
Committee), has died or cannot be found, all payments after death shall be paid to the Participant’s estate. In case of
disputes over the proper beneficiary, the Company reserves the right to make any or all payments to the Participant’s estate.

 

Article 11. Deferrals

 

Subject to the requirements of Section
409A, the Committee may permit or require a Participant to defer such Participant’s receipt of the payment of cash or the
delivery of Shares that would otherwise be due to such Participant by virtue of the lapse or waiver of restrictions with respect
to Restricted Stock, payment of a Stock Award or the satisfaction of any requirements or goals with respect to Restricted Stock
Units, Performance Units/Shares and Cash-Based Awards. If any such deferral election is required or permitted, the Committee shall,
in its sole discretion, establish rules and procedures for such payment deferrals provided that such rules must comply with the
requirements of Section 409A.

 

Article 12. Rights of Participants

 

12.1       Employment.
Nothing in the Plan shall confer upon any Participant any right to continue in the Company’s employ, or as a Director, or
as a Consultant, or interfere with or limit in any way the right of the Company to terminate any Participant’s employment
or directorship at any time.

 

12.2       Participation.
No Employee, Director or Consultant shall have the right to be selected to receive an Award under this Plan, or, having been so
selected, to be selected to receive a future Award.

 

12.3       Rights
as a Stockholder. Except as provided in Sections 8.5, 8.6 and 9.5, a Participant shall have none of the rights of a shareholder
with respect to shares of Common Stock covered by any Award until the Participant becomes the record holder of such shares.

 

Article 13. Termination of Employment/Directorship/Consulting
Relationship

 

Each Participant’s Award Agreement
shall set forth the extent to which the Participant shall have the right to such Participant’s outstanding Award(s) following
termination of the Participant’s employment or directorship or consulting services with the Company. Such provisions shall
be determined in the sole discretion of the Committee, shall be included in the Award Agreements entered into with each Participant,
need not be uniform among all Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination.

 

    	 	14

	 

    	 

    

 

Article 14. Change in Control

 

14.1       Treatment
of Outstanding Awards Other than Cash-Based Awards. In the event of a Change in Control, unless otherwise specifically prohibited
under applicable laws, or by the rules and regulations of any governing governmental agencies or national securities exchanges,
the treatment of non-Cash-Based Awards shall be as specified in the applicable Award Agreement. Subject to such applicable laws,
rules and regulations, and unless the Committee specifies otherwise in the Award Agreement:

  

(a)       Non-Cash-Based
Awards will fully vest if: (i) the Awards are not continued or assumed (e.g., the Awards are not equitably converted or substituted
for awards of a successor entity) in connection with the Change in Control; or (ii) the Participant has a qualifying termination
of his or her service relationship (as defined in the Award Agreement) within two years following the date of the Change in Control.
In the event that non-Cash-Based Awards to Participant are not so continued or assumed in connection with the Change in Control
or in the event of a qualifying termination of his or her service relationship (as defined in the Award Agreement) within two
years following the date of the Change in Control, then upon such Change in Control or such qualifying termination (as the case
may be):

 

(i)       Any
and all Options and SARs granted hereunder shall become fully exercisable during their remaining term; and

 

(ii)       Any
restriction periods and restrictions imposed on Restricted Stock that are not performance-based shall lapse; and

 

(iii)       The
target payout opportunities attainable under all outstanding Awards of performance-based Restricted Stock, Performance Units and
Performance Shares shall be deemed to have been fully earned for the entire Performance Period (s) as of the effective date of
the Change in Control or such qualifying termination. The vesting of all such Awards denominated in Shares shall be accelerated
as of the effective date of the Change in Control or such qualifying termination and shall be paid out to the Participants within
thirty (30) days following the effective date of the Change in Control or such qualifying termination based upon an assumed achievement
of all relevant target performance goals (such payment shall be in full satisfaction of the Award). Such Awards denominated in
cash shall be paid to the Participants in cash within thirty (30) days following the effective date of the Change in Control or
such qualifying termination based on an assumed achievement of all relevant target performance goals (such payment shall be in
full satisfaction of the Award). Restricted Stock Units shall be fully vested as of the effective date of the Change in Control
or such qualifying termination, and the full value of such an Award shall be paid out to the Participants within thirty (30) days
following the effective date of the Change in Control or such qualifying termination. Notwithstanding the foregoing, in the event
that the Award is not so continued or assumed in connection with a Change in Control, the payment of a Section 409A Award will
only be accelerated if the Change in Control also constitutes a change in ownership or effective control of the Company or a change
in the ownership of a substantial portion of the assets of the Company within the meaning of Section 409A and will not result
in additional taxes under Section 409A.

 

14.2       Treatment
of Cash-Based Awards. In the event of a Change in Control, unless otherwise specifically prohibited under applicable laws,
or by the rules and regulations of any governing governmental agencies or national securities exchanges, the treatment of Cash-Based
Awards shall be as specified in the applicable Award Agreement or resolutions adopted by the Committee. Subject to such applicable
laws, rules and regulations, unless the Committee shall provide otherwise in the Award Agreement or resolutions adopted by the
Committee:

 

    	 	15

	 

    	 

    

 

(a)       Cash-Based
Awards will fully vest if: (i) the Awards are not continued or assumed (e.g., the Awards are not equitably converted or substituted
for awards of a successor entity) in connection with the Change in Control; or (ii) the Participant has a qualifying termination
of his or her service relationship (as defined in the Award Agreement) within two years following the date of the Change in Control.
In the event that the Cash-Based Awards granted to Participants are not so continued or assumed or in the event of a qualifying
termination of the service relationship (as defined in the Award Agreement) within two years following the date of the Change
in Control, the vesting of all outstanding Cash-Based Awards shall be accelerated as of the date of such event (and, in the case
of performance-based Cash-Based Awards, based on an assumed achievement of all relevant target performance goals), and all Cash-Based
Awards shall be paid to Participants in cash within thirty (30) days following the effective date of such event (such payment
shall be in full satisfaction of the Award). Notwithstanding the foregoing, in the event that the Cash-Based Awards is not so
continued or assumed in connection with a Change in Control, the payment of a Cash-Based Section 409A Award will only be accelerated
if the Change in Control also constitutes a change in ownership or effective control of the Company or a change in the ownership
of a substantial portion of the assets of the Company within the meaning of Section 409A and will not result in additional taxes
under Section 409A.

 

14.3       Code
Section 280G. The acceleration or payment of Awards could, in certain circumstances, subject the Participant to the excise
tax provided under Section 4999 of the Code. Notwithstanding any other provision of this Agreement or any other plan, arrangement
or agreement to the contrary, if any of the payments or benefits provided or to be provided by the Company or its Affiliates to
a Participant pursuant to the terms of this Plan or otherwise (“Covered Payments”) constitute parachute payments (“Parachute
Payments”) within the meaning of Section 280G of the Code, as amended (the “Code”) and would, but for this Section
14.3 be subject to the excise tax imposed under Section 4999 of the Code (or any successor provision thereto) or any similar tax
imposed by state or local law or any interest or penalties with respect to such taxes (collectively, the “Excise Tax”),
then prior to making the Covered Payments, a calculation shall be made comparing (i) the Net Benefit (as defined below) to the
Participant of the Covered Payments after payment of the Excise Tax to (ii) the Net Benefit to the Participant if the Covered
Payments are limited to the extent necessary to avoid being subject to the Excise Tax. Only if the amount calculated under (i)
above is less than the amount under (ii) above will the Covered Payments be reduced to the minimum extent necessary to ensure
that no portion of the Covered Payments is subject to the Excise Tax (that amount, the “Reduced Amount”). “Net
Benefit” shall mean the present value of the Covered Payments net of all federal, state, local, foreign income, employment
and excise taxes.

 

In the event the Participant is
party to an employment agreement or severance plan that specifies which Covered Payments shall be reduced to result in the Reduced
Amount as provided in the previous paragraph, the terms of such agreement or plan shall apply. If not, the Covered Payments shall
be reduced in a manner that maximizes the Participant’s economic position. In applying this principle, the reduction shall
be made in a manner that will not trigger taxes under Section 409A of the Code, and where two economically equivalent amounts
are subject to reduction but payable at different times, the amount payable at the later time shall be reduced first.

 

The application of the rules in
Section 14.3 shall be made by the Company in its sole discretion and any such determination shall be conclusive and binding on
the Participant.

 

14.4       Expenses.
The Company shall pay all legal fees, court costs, fees of experts and other costs and expenses when incurred by a Participant
in connection with any actual, threatened or contemplated litigation or legal, administrative or other proceeding involving the
provisions of Section 14.3, whether or not initiated by the Participant.

 

    	 	16

	 

    	 

    

 

The reimbursements of such expenses
and costs shall comply with the requirements of Section 409A, which generally require (i) that the amount of expenses and costs
eligible for reimbursement during a calendar year may not affect the expenses and costs eligible for reimbursement in any other
taxable year; (ii) the reimbursement of an eligible expense or cost is made on or before the last day of the calendar year following
the calendar year in which the expense or cost was incurred; and (iii) the right to reimbursement is not subject to liquidation
or exchange for another benefit.

 

Notwithstanding the foregoing, the
Participant shall be solely responsible for any amounts the Participant owes under Code Sections 4999 or 409A, and the Company
and the Committee shall have no liability for such amounts.

 

14.5       Cancellation
of Underwater Options or SARs. In the event of a Change in Control, in the case of any Option or Stock Appreciation Right
with an exercise price that equals or exceeds the price paid for a Share in connection with the Change in Control, the Committee
may cancel the Option or Stock Appreciation Right without the payment of consideration therefor.

 

14.6       Termination,
Amendment, and Modifications of Change-in-Control Provisions. Notwithstanding any other provision of this Plan or any Award
Agreement provision, the provisions of this Article 14 may not be terminated, amended, or modified on or after the date of a Change
in Control to affect adversely any Award theretofore granted under the Plan and any rights or benefits provided to a Participant
pursuant to this Article 14 without the prior written consent of the Participant with respect to said Participant’s outstanding
Awards; provided, however, the Committee may terminate, amend, or modify this Article 14 at any time and from time to time prior
to the date of a Change in Control.

 

Article 15. Amendment, Modification,
Termination and Tax Compliance.

 

15.1       Amendment,
Modification, and Termination. Subject to the terms of the Plan, the Committee or the Board may at any time and from time
to time, alter, amend, suspend, or terminate the Plan in whole or in part.

 

15.2       Awards
Previously Granted. Notwithstanding any other provision of the Plan to the contrary, no termination, amendment, or modification
of the Plan shall adversely affect in any material way any Award previously granted under the Plan, without the written consent
of the Participant holding such Award; provided that no consent is required for any amendment the Committee deems necessary or
appropriate to comply with applicable legal or tax requirements.

 

15.3       Shareholder
Approval Required for Certain Amendments. Shareholder approval will be required for any amendment of the Plan that does any
of the following: (a) permits the grant of any Option with an Option Price less than the Fair Market Value of the Shares on the
date of grant; (b) reduces the Option Price of an outstanding Option by lowering the Option Price, by canceling an outstanding
Option and granting a replacement Option with a lower exercise price, or by exchanging the outstanding Option with another stock-based
or cash Award; (c) permits the grant of any SAR with a grant price that is less than the Fair Market Value of the Shares on the
date of grant; or (d) reduces the grant price of an outstanding SAR by lowering the grant price, by canceling an outstanding SAR
and granting a replacement SAR with a lower exercise price, or by exchanging the outstanding SAR with another stock-based or cash
Award.

 

    	 	17

	 

    	 

    

 

15.4       Compliance
with Section 409A. It is intended that Awards under this Plan are either exempt from Section 409A or are structured to comply
with the requirements of Section 409A. The Plan shall be administered and interpreted in accordance with that intent. By way of
example, the following rules shall apply:

 

		·	Any
                                         provision of the Plan that would conflict with the requirements of a Section 409A Award
                                         shall not apply to a Section 409A Award.

 

		·	Any
                                         adjustment or modification to an Award shall be made in compliance with Section 409A
                                         (e.g., any adjustment to an Option or SAR under Section 4.2 shall be made in accordance
                                         with the requirements of Section 409A).

 

		·	For
                                         Section 409A Awards, all rights to amend, terminate or modify the Plan or any Award are
                                         subject to the requirements and limitations of Section 409A.

 

		·	For
                                         Section 409A Awards, any payment or distribution that is triggered upon termination or
                                         cessation of employment or a comparable event shall be interpreted consistent with the
                                         definition of “separation from service” within the meaning of Treasury Regulation
                                         Section 1.409A-1(h).

 

		·	With
                                         respect to amounts payable under a Section 409A Award, in the event that a Participant
                                         is a “specified employee” as defined in Section 409A, any amount that is
                                         payable in connection with the Participant’s separation from service shall not
                                         be paid prior to the date which is six months after the date the Participant separates
                                         from service (or, if earlier, the date the Participant dies). A Participant who is subject
                                         to the restriction described in the previous sentence shall be paid on the first day
                                         of the seventh month after the Participant’s separation from service an amount
                                         equal to the benefit that the Participant would have received during such six month period
                                         absent the restriction.

 

While the Company intends for Awards
to either be exempt from or in compliance with Section 409A, neither the Company nor the Committee shall be liable to any person
for the tax consequences of any failure to comply with the requirements of Section 409A or any other tax consequences relating
to Awards under this Plan.

 

Article 16. Withholding

 

The Company shall have the power
and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy Federal,
state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising
as a result of this Plan; provided that the amount that is withheld, or may be withheld at the Participant’s discretion,
cannot exceed the amount of the taxes owed by the Participant using the maximum statutory tax rate in the Participant’s
applicable jurisdiction(s). The Participant may satisfy, totally or in part, his obligations pursuant to this Article by electing
to have Shares withheld, to redeliver Shares acquired under an Award, or to deliver previously owned Shares, provided that the
election is made in writing on or prior to (i) the date of exercise, in the case of Options and SARs (ii) the date of payment,
in respect of Stock Awards, Restricted Stock Units, Performance Units, Performance Shares, or Cash-Based Awards, and (iii) the
expiration of the Period of Restriction, in respect of Restricted Stock. Any election made under this Article shall be irrevocable
by the Participant and may be disapproved by the Committee at any time in its sole discretion. If an election is disapproved by
the Committee, the Participant must satisfy his obligations pursuant to this paragraph in cash.

 

Article 17. Successors

 

All obligations of the Company under
the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such
successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of
the business, stock and/or assets of the Company.

 

    	 	18

	 

    	 

    

 

Article 18. General Provisions

 

18.1       Gender
and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine;
the plural shall include the singular and the singular shall include the plural.

 

18.2       Severability.
If any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the
remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been
included.

 

18.3       Requirements
of Law. The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

 

18.4       Recoupment.
Notwithstanding any other provisions in this Plan, the Company may cancel any Award, require reimbursement of any Award by a Participant,
and effect any other right of recoupment of equity or other compensation provided under the Plan in accordance with any Company
policies that may be adopted and/or modified from time to time (“Recoupment Policy”). In addition, a Participant may
be required to repay to the Company previously paid compensation, whether provided pursuant to the Plan or an Award Agreement,
in accordance with the Recoupment Policy. By accepting an Award, the Participant is agreeing to be bound by the Recoupment Policy,
as in effect or as may be adopted and/or modified from time to time by the Company in its discretion (including, without limitation,
to comply with applicable law or stock exchange listing requirements).

 

18.5       Securities
Law Compliance. With respect to Insiders, transactions under this Plan are intended to comply with all applicable conditions
of Rule 16b-3 or its successors under the Exchange Act, unless determined otherwise by the Board. To the extent any provision
of the Plan or action by the Committee fails to so comply, it shall be deemed null and void, to the extent permitted by law and
deemed advisable by the Board.

 

18.6       Listing.
The Company may use reasonable endeavors to register Shares allotted pursuant to the exercise of an Option with the United States
Securities and Exchange Commission or to effect compliance with the registration, qualification, and listing requirements of any
national securities laws, stock exchange, or automated quotation system.

 

18.7       Inability
to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall
relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

 

18.8       No
Additional Rights. Neither the Award nor any benefits arising under this Plan shall constitute part of an employment contract
between the Participant and the Company or any Subsidiary or Affiliate, and accordingly, subject to Section 15.2, this Plan and
the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Committee without giving rise
to liability on the part of the Company or any Affiliate for severance payments.

 

    	 	19

	 

    	 

    

 

18.9       Employees
Based Outside of the United States. Notwithstanding any provision of the Plan to the contrary, to comply with provisions of
laws in other countries in which the Company, its Affiliates, and its Subsidiaries operate or have Employees, the Committee, in
its sole discretion, shall have the power and authority to:

 

(a)       Determine
which Affiliates and Subsidiaries will be covered by the Plan or relevant subplans;

 

(b)       Determine
which Employees employed outside the United States are eligible to become Participants in the Plan;

 

(c)       Modify
the terms and conditions of any Award granted to Participants who are employed outside the United States;

 

(d)       Establish
subplans, modified exercise procedures, and other terms and procedures to the extent such actions may be necessary, advisable
or convenient, or to the extent appropriate to provide maximum flexibility for the Participant’s financial planning. Any
subplans and modifications to the Plan terms or procedures established under this Section 18.9 by the Committee shall be filed
with the Plan document as Appendices; and

 

(e)       Take
any action, before or after an Award is made, which the Committee deems advisable to obtain, comply with, or otherwise reflect
any necessary governmental regulatory procedures, exemptions or approvals, as they may affect this Plan, any subplan, or any Participant.

 

18.10       Uncertificated
Shares. To the extent that the Plan provides for issuance of certificates to reflect the transfer of Shares, the transfer
of such Shares may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any
stock exchange.

 

18.11       Governing
Law. The Plan and each Award Agreement shall be governed by the laws of the State of Delaware, excluding any conflicts or
choice of law, rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law
of another jurisdiction.

 

 

20Exhibit 10.2

 

Humanigen,
Inc.

2020 Omnibus Incentive Compensation Plan

Notice
of Stock Option Grant

 

You have been granted the following option
to purchase shares of the common stock of Humanigen, Inc. (the “Company”):

 

	Name of Participant:	 	 
	 	 	 
	Total Number of Shares:	 	 
	 	 	 
	Type of Option:	 	Incentive Stock Option (ISO)
	 	 	 
	Exercise Price per Share:	 	$
	 	 	 
	Date of Grant:	 	 
	 	 	 
	Vesting Commencement Date:	 	 
	 	 	 
	Vesting Schedule:	 	This option vests and becomes exercisable with respect to 1/12th of the shares of common stock subject to this option on _________, with the remainder vesting in the same number of shares on the first day of each quarter thereafter subject to your completion of each quarter of Continuous Service from the Vesting Commencement Date.   
	 	 	 
	 	 	If the Company is subject to a “Change in Control” (as defined in the Company’s 2020 Omnibus Incentive Compensation Plan (the “Plan”)) and your Continuous Service terminates as a result of an involuntary termination without Cause at any time on or within two (2) years after a Change in Control, and provided you sign a general release of claims against the Company, its Subsidiaries and Affiliates that is effective not later than thirty (30) days after your termination of Continuous Service, then the vesting of any then-unvested portion of your option shall accelerate in full such that 100% of the then unvested shares underlying such option will become vested and exercisable as of your termination date.
	 	 	 
	Expiration Date:	 	[Month] [XX], 20[XX]. This option expires earlier if your Continuous Service terminates earlier, as described in the Stock Option Agreement, and may terminate earlier in connection with certain corporate transactions as described in Article 14 of the Plan.

 

You and the Company agree that this option
is granted under and governed by the terms and conditions of the Plan and the Stock Option Agreement, both of which are attached
to, and made a part of, this document. All capitalized terms used in this Notice of Stock Option Grant shall have the meanings
assigned to them in the Stock Option Agreement, the Notice of Stock Option Grant or the Plan.

 

    	 	 	 

    	 

    

 

You further agree to accept by email all
documents relating to the Plan or this option (including, without limitation, prospectuses required by the Securities and Exchange
Commission) and all other documents that the Company is required to deliver to its security holders (including, without limitation,
annual reports and proxy statements). You also agree that the Company may deliver these documents by posting them on a website
maintained by the Company or by a third party under contract with the Company. If the Company posts these documents on a website,
it will notify you by email.

 

You further agree to comply with the Company’s
Securities Trading Policy when selling shares of the Company’s common stock.

 

	Participant	 	Humanigen, Inc.	 
	 	 	 	 
	 	 	By: 	 	 
	 	 	Title:	 	 

 

    	 	2	 

    	 

    

 

Humanigen,
Inc.

2020 Omnibus Incentive Compensation Plan

Stock Option Agreement

 

	Grant of Option	
        Subject to all of the terms and conditions
        set forth in the Notice of Stock Option Grant, this Stock Option Agreement (the “Agreement”) and the Plan, the Company
        has granted you an option to purchase up to the total number of shares of common stock specified in the Notice of Stock Option
        Grant at the exercise price indicated in the Notice of Stock Option Grant.

         

        All capitalized terms used in this Agreement
        shall have the meanings assigned to them in this Agreement, the Notice of Stock Option Grant or the Plan.

        

	 	 
	Tax Treatment	This option is intended to be an incentive stock option under Section 422 of the Code as provided in the Notice of Stock Option Grant.  However, even though this option is designated as an incentive stock option in the Notice of Stock Option Grant, it shall be deemed to be a nonstatutory stock option to the extent it does not qualify as an incentive stock option under federal tax law, including under the $100,000 annual limitation under Section 422(d) of the Code.
	 	 
	Vesting	
        This option vests and becomes exercisable
        in accordance with the vesting schedule set forth in the Notice of Stock Option Grant.

         

        In no event will this
        option vest or become exercisable for additional shares after your Continuous Service has terminated for any reason.

        

	 	 
	Exercise 

    Restriction for 

    Non-Exempt 

    Employees	Notwithstanding anything in the Notice of Stock Option Grant or this Agreement to the contrary, in the event you are an employee eligible for overtime compensation under the Fair Labor Standards Act of 1938, as amended (a “Non-Exempt Employee”), you may not exercise your option until you have completed at least six months of Continuous Service as measured from the Date of Grant specified in the Notice of Stock Option Grant other than in accordance with Article 14 of the Plan. 
	 	 
	Term	This option expires in any event at the close of business at Company headquarters on the day before the 10th anniversary of the Date of Grant, as shown in the Notice of Stock Option Grant. However, in the case of a Participant who owns, directly or indirectly, more than 10% of the total combined voting power of all classes of the stock of the Company or any Subsidiary or parent (as determined under Section 424 of the Code), the option expires at the close of business at Company headquarters on the day before the 5th anniversary of the Date of Grant. (This option will expire earlier if your Continuous Service terminates, as described below, and this option may be terminated earlier as provided in Article 14 of the Plan.)

 

    	 	3	 

    	 

    

 

	Termination of 

Continuous 

Service	
        If your Continuous Service terminates for
        any reason, this option will expire immediately to the extent the option is unvested as of your termination date and does not vest
        as a result of your termination of Continuous Service. The Committee determines when your Continuous Service terminates for all
        purposes of this option in accordance with the below definition of Continuous Service.

         

        For purposes of this Agreement, Continuous
        Service means that your service with the Company, a Subsidiary or an Affiliate, whether as an Employee, Director or Consultant,
        is not interrupted or terminated. A change in the capacity in which you renders service to the Company, Subsidiary or an Affiliate
        as an Employee, Consultant or Director or a change in the entity for which you render such service, provided that there is no interruption
        or termination of your service with the Company, a Subsidiary or an Affiliate, will not terminate your Continuous Service.

         

        Notwithstanding the foregoing, for purposes
        of this option qualifying as an incentive stock option, Continuous Service means that your service with the Company, a Subsidiary
        or an Affiliate, as an Employee, is not interrupted or terminated. A change in the capacity in which you render service to the
        Company, a Subsidiary or an Affiliate will be deemed to terminate your Continuous Service in the event you no longer render service
        to the Company, a Subsidiary or an Affiliate as an Employee.

        

	 	 
	Regular 

Termination	
        If your Continuous Service terminates for
        any reason except death, total and permanent Disability or Cause, then this option, to the extent vested as of your termination
        date, will expire at the close of business at Company headquarters on the date three months after your termination date.

         

        Notwithstanding the foregoing, if you are
        a Non-Exempt Employee and your Continuous Service terminates within six months after the Date of Grant, then this option, to the
        extent vested as of your termination date, will expire at the close of business at Company headquarters on the later of (a) the
        date seven months after the Date of Grant or (b) the date three months after your termination date.

         

        Notwithstanding anything in this Agreement
        to the contrary, in no event will your option be exercisable after the Expiration Date.

        

	 	 
	Death	If your Continuous Service terminates as a result of your death, then this option will expire at the close of business at Company headquarters on the date 12 months after the date of death.
	 	 
	Disability	
        If your Continuous Service terminates because
        of your Disability, then this option will expire at the close of business at Company headquarters on the date 6 months after your
        termination date.

         

        For all purposes under this Agreement,
        “Disability” means a medically determinable physical or mental impairment which can be expected to result in death
        or has lasted or can be expected to last for a continuous period of not less than six months if such disabling condition renders
        the person unable to perform the material and substantial duties of his or her occupation.

        

 

    	 	4	 

    	 

    

 

	Termination of 

Continuous 

Service for Cause	
        Notwithstanding anything in this Agreement
        to the contrary, in the event your Continuous Service is terminated for Cause, you will immediately and automatically forfeit all
        options granted to you including all vested and unvested rights to purchase shares of common stock thereunder.

         

        If your Continuous Service is terminated
        as a result of any of the following, as determined by the Committee, you will be considered to have been terminated for Cause:

         

        ·     commission
        of an act of fraud, embezzlement or other act of dishonesty that would reflect adversely on the Company’s, its Subsidiaries’
        or Affiliates’ integrity, character or reputation, or that would cause harm to the Company’s or its Subsidiaries’
        or its Affiliates’ operations or business prospects;

         

        ·     breach
        of a fiduciary duty owed to the Company, its Subsidiaries or its Affiliates;

         

        ·     violation
        or threatening to violate a restrictive covenant agreement, such as a non-compete, non-solicit, or non-disclosure agreement, between
        you and the Company, a Subsidiary or an Affiliate;

         

        ·     unauthorized
        disclosure or use of confidential information or trade secrets of the Company, a Subsidiary or Affiliate;

         

        ·     violation
        of any of the Company’s, its Subsidiaries’ or its Affiliates’ lawful policies or rules, including any applicable
        code of conduct;

         

        ·     commission
        of criminal activity;

         

        ·     failure
to reasonably cooperate in any investigation or proceeding concerning the Company, a Subsidiary or an Affiliate; or

         

        ·     neglect
        or misconduct in the performance of your duties and responsibilities, provided that, if curable, you did not cure such neglect
        or misconduct within ten (10) days after you were provided written notice of such neglect or misconduct.

         

        Notwithstanding the above, if you have
        an employment agreement with the Company, a Subsidiary or an Affiliate that contains a different definition of cause, then the
        definition contained in your employment agreement will control.

        

 

    	 	5	 

    	 

    

 

	Leaves of Absence 

and Part-Time 

Work	
        For purposes of this option, your Continuous
        Service does not terminate when you go on a military leave, a sick leave or another bona fide leave of absence, if the leave
        was approved by the Company in writing and if continued crediting of service is required by applicable law, the Company’s
        leave of absence policy, or the terms of your leave. However, your Continuous Service terminates when the approved leave ends,
        unless you immediately return to active work; provided, however, if reemployment upon expiration of the approved leave is not guaranteed
        by statute or contract, then any incentive stock option shall cease to be treated as such and shall instead be treated as a nonstatutory
        stock option beginning six months following the first day of such leave.

         

        If you go on a leave of absence, then the
        vesting schedule specified in the Notice of Stock Option Grant may be adjusted in accordance with the Company’s leave of
        absence policy or the terms of your leave. If you commence working on a part-time basis, the Company may adjust the vesting schedule
        so that the rate of vesting is commensurate with your reduced work schedule.

        

	 	 
	Notice Concerning 

Incentive Stock 

Option Treatment	Even though this option is designated as an incentive stock option in the Notice of Stock Option Grant, it ceases to qualify for favorable tax treatment as an incentive stock option to the extent that it is exercised: (a) more than three months after the date when you cease to be an Employee for any reason other than death or permanent and total disability (as defined in Section 22(e)(3) of the Code), (b) more than 12 months after the date when you cease to be an Employee by reason of permanent and total Disability (as defined in Section 22(e)(3) of the Code) or (c) more than three months after the date when you have been on a leave of absence for 90 days, unless your reemployment rights following such leave were guaranteed by statute or by contract.
	 	 
	Restrictions on 

Exercise	The Company will not permit you to exercise this option if the issuance of shares at that time would violate any law or regulation.
	 	 
	
        Notice of Exercise

         

         
	
        When you wish to exercise this option,
        you must notify the Company by filing the proper “Notice of Exercise” form (Exhibit A or B) according to the instructions
        provided on the form. Your notice must specify how many shares you wish to purchase. The notice will be effective when the Company
        receives it.

         

        If someone else wants to exercise this
        option after your death, that person must prove to the Company’s satisfaction that he or she is entitled to do so.

         

        You may only exercise your option for whole
        shares.

        

 

    	 	6	 

    	 

    

 

	Form of Payment	
        When you submit your notice of exercise,
        you must include payment of the option exercise price for the shares that you are purchasing. To the extent permitted by applicable
        law, payment may be made in one (or a combination of two or more) of the following forms:

        

         

        ·     By
        delivering to the Company your personal check, a cashier’s check or a money order, or arranging for a wire transfer, along
        with the completed form contained in Exhibit A.

         

        ·     By delivering to the Company certificates for shares of common stock of the Company that you own, along with any forms needed to
        effect a transfer of those shares to the Company and the completed form contained in Exhibit A. The value of the shares, determined
        as of the effective date of the option exercise, will be applied to the option exercise price. Instead of surrendering shares of
        common stock of the Company, you may attest to the ownership of those shares on a form provided by the Company and have the same
        number of shares subtracted from the option shares issued to you.

         

        ·     In
        the event of net exercise, the Participant shall exchange a number of Options for a number of shares of common stock of the Company,
        such number of shares to be determined by a) multiplying the number of options being exchanged by b) the number arrived at by subtracting
        the exercise price of the option from the closing price of the stock on the date of exercise and c) dividing the result by the
        closing price of the common stock on the date of exercise. Participant shall also deliver the completed form contained in Exhibit
        B.

        

	 	 
	Withholding 

Taxes	You will not be allowed to exercise this option unless you make arrangements acceptable to the Company to pay any withholding taxes that may be due as a result of the option exercise.  These arrangements include payment in cash. With the Company’s consent, these arrangements may also include (a) withholding shares of Company stock that otherwise would be issued to you when you exercise this option with a fair market value no greater than the minimum amount required to be withheld by law, (b) surrendering shares that you previously acquired with a fair market value no greater than the minimum amount required to be withheld by law, or (c) withholding cash from other compensation.  The fair market value of withheld or surrendered shares, determined as of the date when taxes otherwise would have been withheld in cash, will be applied to the withholding taxes.
	 	 
	Restrictions on 

Resale	You agree not to sell any option shares at a time when applicable laws, Company policies or an agreement between the Company and its underwriters prohibit a sale.  This restriction will apply as long as your Continuous Service continues and for such period of time after the termination of your Continuous Service as the Company may specify.

 

    	 	7	 

    	 

    

 

	Transfer of 

Option	
        Prior to your death, only you may exercise
        this option. You cannot transfer or assign this option. For instance, you may not sell this option or use it as security for a
        loan. If you attempt to do any of these things, this option will immediately become invalid. You may, however, dispose of this
        option in your will or by means of a written beneficiary designation; provided, however, that your beneficiary or a representative
        of your estate acknowledges and agrees in writing in a form reasonably acceptable to the Company, to be bound by the provisions
        of this Agreement and the Plan as if such beneficiary of the estate were you.

         

        Notwithstanding the above, subject to the
        approval of the Committee, the option may be transferred pursuant to the terms of a domestic relations order, official marital
        settlement agreement or other divorce or separation instrument as permitted by Treasury Regulation Section 1.421-1(b)(2). If
        an the option is still treated as an incentive stock option upon transfer, such option may be deemed to be a nonstatutory stock
        option as a result of such transfer.

        

	 	 
	Employment 

Rights	Your option or this Agreement does not give you the right to be employed by the Company, Subsidiary, or an Affiliate in any capacity.  The Company, its Subsidiaries and Affiliates reserve the right to terminate your Continuous Service at any time, with or without Cause.
	 	 
	Stockholder 

Rights	You, or your estate or heirs, have no rights as a stockholder of the Company until you have exercised this option by giving the required notice to the Company, paying the exercise price, and satisfying any applicable withholding taxes.  No adjustments are made for dividends or other rights if the applicable record date occurs before you exercise this option, except as described in the Plan.
	 	 
	Recoupment 

Policy	This option, and the shares acquired upon exercise of this option, shall be subject to any Company recoupment policy in effect from time to time.
	 	 
	Adjustments	In the event of a stock split, a stock dividend or a similar change in Company stock, the number of shares covered by this option and the exercise price per share will be adjusted pursuant to the Plan.
	 	 
	Effect of 

Significant 

Corporate 

Transactions	If the Company is a party to a merger, consolidation, or certain change in control transactions, then this option will be subject to the applicable provisions of Articles 4 and 14 of the Plan.
	 	 
	Applicable Law	This Agreement will be interpreted and enforced under the laws of the State of Delaware (without regard to its choice-of-law provisions).

 

    	 	8	 

    	 

    

 

	The Plan and 

Other Agreements	
        The text of the Plan is incorporated in
        this Agreement by reference.

         

        This Plan, this Agreement and the Notice
        of Stock Option Grant constitute the entire understanding between you and the Company regarding this option. Any prior agreements,
        commitments or negotiations concerning this option are superseded. This Agreement may be amended only by another written agreement
        between the parties.

        

 

 

By
signing the cover sheet of this Agreement, you agree to all of the terms and conditions described above and in the Plan.

 

    	 	9	 

    	 

    

 

Exhibit
A

 

Humanigen,
Inc. 

2020
Omnibus Incentive Compensation Plan

Notice
of Stock Option Exercise 

Using
Cash or Company Common Shares

 

 

You
must sign this Notice on Page 3 before submitting it to the Company.

 

 

Participant
Information:

 

	Name: 	 	 	Last four digits of Social Security Number:	 
	 	 	 	 	 
	Address:	 	 	 	 
	 	 	 	 	 

 

Option
Information:

 

	Date of Grant: ______________________________, 20________	 	Type of Stock Option:
	 	 	 
	Exercise Price per Share: $_____________	 	o  Nonstatutory (NSO)
	 	 	 
	
        Total number of shares of common stock of Humanigen, Inc. (the
        “Company”) covered by the option:

         

        ______________________________

        
	 	o  Incentive (ISO)

 

Exercise
Information:

 

Number of shares of common stock of the Company for which the
option is being exercised now: _____________________. (These shares are referred to below as the “Purchased Shares.”)

 

Total Exercise Price for the Purchased Shares: $___________________

 

	o	Check for $__________________________,
payable to “Humanigen, Inc.”, or

 

	o	Number of shares of common stock of the Company being submitted in payment of the Exercise Price for the Purchased Shares: _______________________________.

 

    	 		 

    	 

    

 

Income
Tax Withholding (if applicable):

 

o Check payable
to “Humanigen, Inc.” to pay for the required withholding tax: $____________.

 

o I hereby authorize
the Company to deduct $________ to pay for any required withholding taxes related to the exercise of this option.

 

Transfer
Agent Registration Information:

 

Name(s) in which the Purchased Shares should be registered by
transfer agent (please check one box)

 

	o     In my name only	 	 
	o     In the names of my spouse and myself as community property	 	
        My spouse’s name (if applicable):

         

	 	 	 
	o     In the names of my spouse and myself as community property with the right of survivorship	 	
         

         

	o     In the names of my spouse and myself as joint tenants with the right of survivorship	 	
         

         

	o     In the name of an eligible revocable trust 	 	Full legal name of revocable trust:
	 	 	 
	 	 	 
	 	 	 

 

Issuance
Information:

 

Please issue shares: (please check one box)

 

	o     DWAC to my broker	 	Name and address of broker: 
	 	 	 
	 	 	 
	 	 	 
	o     In book entry at Computershare	 	 

 

 

Acknowledgements
of the Participant:

 

		1.	I understand that all sales of Purchased Shares are subject to compliance with the Company’s
Security Trading Policy.

 

		2.	I acknowledge that I have received and read a copy of the prospectus describing the Company’s
2020 Omnibus Incentive Compensation Plan and the tax consequences of an option exercise.

 

    	 	2	 

    	 

    

 

		3.	In the case of a nonstatutory option, I understand that I will recognize ordinary income equal
to the spread between the Fair Market Value of the Purchased Shares on the date of exercise and the Exercise Price. I further understand
that I am required to pay withholding taxes at the time of exercising a nonstatutory option.

 

		4.	In the case of an incentive stock option, I agree to notify the Company if I dispose of the Purchased
Shares before I have met both of the tax holding periods applicable to incentive stock options (that is, if I make a disqualifying
disposition).

 

		5.	I acknowledge that the Company has encouraged me to consult my own adviser to determine the form
of ownership that is appropriate for me. In the event that I choose to transfer my Purchased Shares to a trust that does not satisfy
the requirements of the Internal Revenue Service (i.e., a trust that is not an eligible revocable trust), I also acknowledge that
the transfer will be treated as a “disposition” for tax purposes. As a result, the favorable incentive stock option
tax treatment will be unavailable and other unfavorable tax consequences may occur.

 

		6.	I acknowledge that I am acquiring the Purchased Shares subject to all other terms of the Notice
of Stock Option Grant, the Plan and Stock Option Agreement.

 

		7.	I agree that the Company does not have a duty to design or administer the 2020 Omnibus Incentive
Compensation Plan or its other compensation programs in a manner that minimizes my tax liabilities. I will not make any claim against
the Company, any Affiliates or Subsidiaries, its Board of Directors or officers or employees related to tax liabilities arising
from my options or my other compensation.

 

		8.	I agree to seek the consent of my spouse to the extent required by the Company to enforce the foregoing.

 

 

	Signature:	 	Date:
	 	 	 
	 	 	 
	 	 	 

 

    	 	3	 

    	 

    

 

Exhibit
B

 

Humanigen,
Inc. 

2020
Omnibus Incentive Compensation Plan

Notice
of Stock Option Exercise

Using
the Net Exercise Procedure

 

You
must sign this Notice on Page 3 before submitting it to the Company.

 

Participant
Information:

 

	Name: 	 	 	Last four digits of Social Security Number:	 
	 	 	 	 	 
	Address:	 	 	 	 
	 	 	 	 	 

 

Option
Information:

 

	Date of Grant: ______________________________, 20________	 	Type of Stock Option:
	 	 	 
	Exercise Price per Share: $_____________	 	o  Nonstatutory (NSO)
	 	 	 
	
        Total number of shares of common stock of Humanigen, Inc. (the
        “Company”) covered by the option:

         

        ______________________________

        
	 	o  Incentive (ISO)

 

Net
Exercise Information:

 

Number of options being exercised now: _____________________.

 

Note: Multiply the
number of options being exercised by the number arrived at by subtracting the exercise price of the option from the closing price
of the stock on today’s date and divide that number by the closing price of the stock on the date of exercise to arrive at
the number of shares of common stock of the Company to be issued.

 

Total number of shares of common stock of the Company to be
issued: ___________________.

  

Income
Tax Withholding (if applicable):

 

o Check payable
to “Humanigen, Inc.” to pay for the required withholding tax: $____________.

 

o I hereby authorize
the Company to deduct $________ to pay for any required withholding taxes related to the exercise of this option.

 

o Number of shares
of common stock of the Company being withheld from the exercise of the option in payment of the required withholding tax related
to the exercise of this option: ________________________________.

 

    	 		 

    	 

    

 

Transfer
Agent Registration Information:

 

Name(s) in which the Purchased Shares should be registered by
transfer agent (please check one box)

 

	o     In my name only	 	 
	o     In the names of my spouse and myself as community property	 	
        My spouse’s name (if applicable):

         

	 	 	 
	o     In the names of my spouse and myself as community property with the right of survivorship	 	
         

         

	o     In the names of my spouse and myself as joint tenants with the right of survivorship	 	
         

         

	o     In the name of an eligible revocable trust 	 	Full legal name of revocable trust:
	 	 	 
	 	 	 
	 	 	 

 

Issuance
Information:

 

Please issue shares: (please check one box)

 

	o     DWAC to my broker	 	Name and address of broker: 
	 	 	 
	 	 	 
	 	 	 
	o     In book entry at Computershare	 	 

 

Acknowledgements of
the Participant:

 

		1.	I understand that all sales of Purchased Shares are subject to compliance with Company’s
Security Trading Policy.

 

		2.	I acknowledge that I have received and read a copy of the prospectus describing the Company’s
2020 Omnibus Incentive Compensation Plan and the tax consequences of an option exercise.

 

		3.	In the case of a nonstatutory option, I understand that I will recognize ordinary income equal
to the spread between the Fair Market Value of the Purchased Shares on the date of exercise and the Exercise Price. I further understand
that I am required to pay withholding taxes at the time of exercising a nonstatutory option.

 

    	 	2	 

    	 

    

 

		4.	In the case of an incentive stock option, I agree to notify the Company if I dispose of the Purchased
Shares before I have met both of the tax holding periods applicable to incentive stock options (that is, if I make a disqualifying
disposition).

 

		5.	I acknowledge that the Company has encouraged me to consult my own adviser to determine the form
of ownership that is appropriate for me. In the event that I choose to transfer my Purchased Shares to a trust that does not satisfy
the requirements of the Internal Revenue Service (i.e., a trust that is not an eligible revocable trust), I also acknowledge that
the transfer will be treated as a “disposition” for tax purposes. As a result, the favorable ISO tax treatment will
be unavailable and other unfavorable tax consequences may occur.

 

		6.	I acknowledge that I am acquiring the Purchased Shares subject to all other terms of the Notice
of Stock Option Grant and Stock Option Agreement.

 

		7.	I agree that the Company does not have a duty to design or administer the 2020 Omnibus Incentive
Compensation Plan or its other compensation programs in a manner that minimizes my tax liabilities I will not make any claim against
the Company, any Affiliates or Subsidiaries, its Board of Directors or officers or employees related to tax liabilities arising
from my options or my other compensation.

 

		8.	I agree to seek the consent of my spouse to the extent required by the Company to enforce the foregoing.

 

 

	Signature:	 	Date:
	 	 	 
	 	 	 
	 	 	 

 

 

3

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