Document:

rigl_Ex10_1

		
			Exhibit 10.1
		

		
			Approved by the Board of Directors on February 6, 2020
		

		
			RIGEL PHARMACEUTICALS, INC.
		

		
			EXECUTIVE SEVERANCE PLAN
		

			
	
			
				 Section 1.
			Introduction.

		
			The Rigel Pharmaceuticals, Inc. Executive Severance Plan (the “Plan”) is established effective January 24, 2018.  The purpose of the Plan is to provide for the payment of severance benefits to certain eligible executives of Rigel Pharmaceuticals, Inc. (the “Company”) who meet the eligibility criteria set forth in Section 2(a) below.  This Plan supersedes any severance plan, policy or practice with respect to COC Qualifying Terminations or Non-COC Qualifying Terminations (as defined below), whether formal or informal, written or unwritten, previously announced or maintained by the Company.  This Plan document also is the Summary Plan Description for the Plan.  
		

			
	
			
				 Section 2.
			Eligibility For Benefits.

			
	
			
				 (a)
			General Rules.  Subject to the requirements of the Plan, the Company will grant the severance benefits described in Section 3 to Eligible Employees.

			
	
			
				 (1)
			Definition of “Eligible Employee.” For purposes of this Plan, an Eligible Employee is an employee of the Company serving as (a) an “Executive Officer” (as defined in 3b-7 of the General Rules and Regulations promulgated under the Securities Exchange Act of 1934, as amended, and qualifying for treatment as an officer under Section 16 of the Security Exchange Act of 1934, as amended), or (b) a member of the executive committee leading the roles in any one of human resources, research, medical, legal, corporate development, or commercial (whether or not an Executive Officer), at the time he or she suffers a “Qualifying Termination” (as defined below).  The Plan Administrator shall make the determination of whether an employee is an Eligible Employee, and such determination shall be binding and conclusive on all persons.  Temporary employees and independent contractors are not eligible for severance benefits under the Plan.

			
	
			
				 (2)
			Obligations of Eligible Employees.  In order to receive any benefits under the Plan:

			
	
			
				 (i)
			the Eligible Employee must remain on the job and satisfactorily provide services to the Company until his or her date of termination;

			
	
			
				 (ii)
			the Eligible Employee must execute and return to the Company a general waiver and release in substantially the form attached hereto as Exhibit A, Exhibit B or Exhibit C, as applicable, within the time frame set forth therein (the “Release”) and such release must become effective in accordance with its terms but not later than the 60th day following the termination of employment (with the  Company having the authority, in its discretion, to modify the form of the required release to comply with applicable law and to determine the form of the required release, which may be incorporated into a termination agreement or other agreement with the Eligible Employee) and notwithstanding the payment schedules set forth in Appendix A and Appendix B, no benefits will be paid prior to the effective date of the Release (the “Release Effective Date”) but rather on the first regular payroll pay day following the effective date of the Release, the Company will pay the Eligible Employee the benefits the Eligible Employee would otherwise have received on or prior to the Release Effective Date but for the delay in payment related to the effectiveness of the Release, with the balance of the benefits being paid as originally scheduled;  and

		
			

		 

		

			
	
			
				 (iii)
			the Eligible Employee must remain in compliance with his or her continuing obligations to the Company, including obligations under his or her Employee Proprietary Information and Inventions Assignment Agreement (such form, or any similar form, the “Proprietary Agreement”).

			
	
			
				 (b)
			Exceptions to Benefit Entitlement.  An employee who otherwise is an Eligible Employee will not receive benefits under the Plan (or will receive reduced benefits under the Plan) in the following circumstances, as determined by the Company in its sole discretion:

			
	
			
				 (1)
			The employee is covered by any other severance or separation pay plan, policy or practice of the Company or has executed an individually negotiated employment contract or agreement with the Company relating to severance benefits, in either case with respect to severance benefits payable upon an event that constitutes a Qualifying Termination (used herein as defined herein), and such agreement, plan, policy or practice is in effect on his or her termination date.  In such case, the employee’s severance benefit upon a Qualifying Termination, if any, shall be governed by the terms of such other agreement, plan, policy or practice and shall be governed by this Plan only to the extent that (i) the employee elects to waive and release all claims and rights the employee has to severance pay or benefits upon a Qualifying Termination under such other agreement, plan, policy, or practice or (ii) the reduction pursuant to Section 3(c) below does not entirely eliminate benefits under this Plan.

			
	
			
				 (2)
			The employee’s employment terminates other than as a result of a Qualifying Termination (including a termination for Cause prior to the effective date of a previously scheduled Qualifying Termination, a termination as a result of death or disability, or the employee voluntarily terminates employment with the Company other than as a Resignation for Good Reason).  Voluntary terminations include, but are not limited to, resignation, retirement, failure to return from a leave of absence on the scheduled date and/or termination in order to accept employment with another entity (including but not limited to any entity that is wholly or partly owned (directly or indirectly) by the Company or an affiliate of the Company.)).

			
	
			
				 (3)
			The employee has not signed an enforceable Proprietary Agreement covering the employee’s period of employment with the Company (and with any predecessor) and does not confirm in writing that he or she is and shall remain subject to the terms of that Proprietary Agreement.

			
	
			
				 (4)
			Following notice of a Qualifying Termination, the employee’s behavior rises to level of Cause for termination.

			
	
			
				 (c)
			An involuntary termination without “Cause” means an involuntary termination of an employee’s employment by the Company other than as a result of death or disability and other than for one of the following reasons:

			
	
			
				 (1)
			an intentional action or intentional failure to act by the employee that was performed in bad faith and to the material detriment of the business of the Company or an Employer;

			
	
			
				 (2)
			an employee’s intentional refusal or intentional failure to act in accordance with any lawful and reasonable order of his or her superiors that has not been cured within ten (10) days after written notice from the Company, or that has caused irreparable damage incapable of cure;

			
	
			
				 (3)
			an employee’s habitual or gross neglect of the duties of employment that has not been cured within ten (10) days after written notice from the Company, or that has caused irreparable damage incapable of cure;

		
			

		 

		

			
	
			
				 (4)
			an employee’s indictment, charge, or conviction of a felony or any crime involving moral turpitude, or participation in any act of theft or dishonesty, in each case, that has had or could reasonably be expected to have a material detrimental effect on the business of the Company; or

		
			(5)an employee’s violation of any material provision of the Proprietary Agreement or violation of any material provision of any other written Company policy or procedure.
		

			
	
			
				 (d)
			A “Change of Control” means the consummation, in a single transaction or in a series of related transactions, of any one or more of the following events: 

			
	
			
				 (1)
			a sale, lease or other disposition of all or substantially all of the assets of the Company, other than a sale, lease or other disposition of all or substantially all of the assets of the Company to an entity, more than fifty percent (50%) of the combined voting power of the voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the outstanding voting securities of the Company immediately prior to such sale, lease or other disposition; 

			
	
			
				 (2)
			a merger, consolidation or similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not own, directly or indirectly, either (A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined outstanding voting power of the parent of the surviving entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their ownership of the outstanding voting securities of the Company immediately prior to such transaction; or 

			
	
			
				 (3)
			any “Exchange Act Person” becomes the owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction.

			
	
			
				 (e)
			A “COC Qualifying Termination” means an involuntary termination without Cause or a Resignation for Good Reason and in either case provided such termination is a separation from service” (as such term is defined in Section 1.409A-1(h) of the Treasury Regulations) and such termination occurs on or within eighteen (18) months following, the effective date of the Change of Control. 

			
	
			
				 (f)
			An “Exchange Act Person” means any natural person, entity or “group” (within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended), except that “Exchange Act Person” shall not include (1) the Company or any subsidiary of the Company, (2) any employee benefit plan of the Company or any subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any subsidiary of the Company, (3) an underwriter temporarily holding securities pursuant to an offering of such securities, (4) an entity owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company; or (5) any natural person, entity or “group” (within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended) that, as of the effective date of this Plan, is the owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities.

			
	
			
				 (g)
			A “Non-COC Qualifying Termination” means an involuntary termination without Cause or a Resignation for Good Reason and in either case provided such termination is a separation from service” (as such term is defined in Section 1.409A-1(h) of the Treasury Regulations) and such termination occurs before, or more than eighteen (18) months following the effective date of the Change of Control. 

		
			

		 

		

			
	
			
				 (h)
			A “Qualifying Termination” means either a COC Qualifying Termination, or Non-COC Qualifying Termination.

		
			(g) A “Resignation for Good Reason” means the Eligible Employee has resigned from all positions he or she then-holds with the Company (or any successor thereto):
		

		
			(1)one of the following actions has been taken:
		

		
			(i) there is a material diminution of Eligible Employee’s authority,  including but not limited to decision-making authority, duties, or responsibilities;
		

		
			(ii) there is a material reduction in the Eligible Employee’s annual base compensation (including the base salary and target bonus opportunity), where material is considered greater than 5%;
		

		
			(iii)the Eligible Employee is required to relocate his or her primary work location to a facility or location that would increase the Eligible Employee’s one way commute distance by more than twenty (20) miles from the Eligible Employee’s primary work location as of immediately prior to such change;
		

		
			(iv)       A material diminution in the authority, duties, or responsibilities of the supervisor to whom the Eligible Employee is required to report, including a requirement that the Eligible Employee report to a corporate officer or employee instead of reporting directly to the board of directors of a corporation (or similar governing body with respect to an entity other than a corporation); 
		

		
			(v)     A material diminution in the budget over which the Eligible Employee retains authority;
		

		
			(vi)the Eligible Employee is required, as a condition to continued service, to enter into any agreement with the Company or a successor thereto regarding confidentiality, non-competition, non-solicitation or other similar restrictive covenant that is materially more restrictive than under the Proprietary Agreement; 
		

		
			(vii)the Company materially breaches its obligations under this Plan or any then-effective written employment agreement with the Eligible Employee; or
		

		
			(viii)     any acquirer, successor or assign of the Company fails to assume and perform, in all material respects, the obligations of the Company hereunder; and
		

		
			 
		

		
			(2)the Eligible Employee provides written notice to the Company’s General Counsel within the 60-day period immediately following such action; and
		

		
			(3)such action is not remedied by the Company within thirty (30) days following the Company’s receipt of such written notice; and 
		

		
			(4)the Eligible Employee’s resignation is effective no later than sixty (60) days after the expiration of such thirty (30) day cure period.
		

		
			

		 

		

			
	
			
				 Section 3.
			Amount Of Benefit.

			
	
			
				 (a)
			Severance Benefits.  Subject to the terms and conditions of the Plan, the severance benefits that shall be provided to Eligible Employees under the Plan are set forth in Appendix A (“COC Qualifying Termination”), and Appendix B (“Non-COC Qualifying Termination”),.

			
	
			
				 (b)
			Additional Benefits.  Notwithstanding the foregoing, the Company may, in its sole discretion, authorize benefits in an amount in addition to those benefits set forth in Section 3(a) to an Eligible Employee.  The provision of any such benefits to an Eligible Employee shall in no way obligate the Company to provide such benefits to any other Eligible Employee or to any other employee, even if similarly situated.  Receipt of benefits under this Plan pursuant to such exceptions may be subject to a covenant of confidentiality and non-disclosure.

			
	
			
				 (c)
			Certain Reductions.  Except with respect to any bonus amount that may be payable to the Eligible Employee upon such Eligible Employee’s Qualifying Termination pursuant to the terms of the Company’s bonus policy, the Company shall reduce an Eligible Employee’s severance benefits under this Plan, in whole or in part, by any other severance benefits, pay in lieu of notice, or other similar benefits payable to the Eligible Employee by the Company in connection with the Eligible Employee’s Qualifying Termination, including but not limited to any payments or benefits that are due pursuant to (i) any other severance plan, policy or practice, or any individually negotiated employment contract or agreement with the Company relating to severance benefits, in each case, as is in effect on the Eligible Employee’s termination date, (ii) any applicable legal requirement, including, without limitation, the Worker Adjustment and Retraining Notification Act (the “WARN Act”), or (iii) any Company policy or practice providing for the Eligible Employee to remain on the payroll without being in active service for a limited period of time after being given notice of the termination of the Eligible Employee’s employment.  The benefits provided under this Plan are intended to satisfy, to the greatest extent possible, any and all statutory obligations that may arise out of an Eligible Employee’s termination of employment, and the Plan Administrator shall so construe and implement the terms of the Plan.  In the Company’s sole discretion, such reductions may be applied on a retroactive basis, with severance benefits previously paid being recharacterized as payments pursuant to the Company’s statutory obligation. 

			
	
			
				 (d)
			Parachute Payments. If any payment or benefit an Eligible Employee would receive pursuant to a Change in Control from the Company or otherwise (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount.  The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in the Eligible Employee’s receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the manner that results in the greatest economic benefit for the Eligible Employee.  If more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata.

		
			In the event it is subsequently determined by the Internal Revenue Service that some portion of the Reduced Amount as determined pursuant to clause (x) in the preceding paragraph is subject to the Excise Tax, the Eligible Employee agrees to promptly return to the Company a sufficient amount of the Payment so that no portion of the Reduced Amount is subject to the Excise Tax.  For the avoidance of doubt, if the Reduced Amount is determined pursuant to clause (y) in the preceding paragraph, the Eligible Employee will have no obligation to return any portion of the Payment pursuant to the preceding sentence.
		

		
			

		 

		

		
			Unless the Eligible Employee and the Company agree on an alternative accounting firm or law firm, the accounting firm engaged by the Company for general tax compliance purposes as of the day prior to the effective date of the Change in Control shall perform the foregoing calculations.  If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, the Company shall appoint a nationally recognized accounting or law firm to make the determinations required hereunder.  The Company shall bear all expenses with respect to the determinations by such accounting or law firm required to be made hereunder.
		

		
			The Company shall use commercially reasonable efforts to cause the accounting or law firm engaged to make the determinations hereunder to provide its calculations, together with detailed supporting documentation, to the Eligible Employee and the Company within fifteen (15) calendar days after the date on which the Eligible Employee’s right to a Payment is triggered (if requested at that time by the Eligible Employee or the Company) or such other time as requested by the Eligible Employee or the Company.  
		

			
	
			
				 (e)
			Code Section 409A.   If the Company (or, if applicable, the successor entity thereto) determines that the payments and benefits provided under the Plan (the “Plan Payments”) constitute “deferred compensation” under Code Section 409A (together, with any state law of similar effect, “Section 409A”) and an Eligible Employee is a “specified employee” of the Company or any successor entity thereto, as such term is defined in Section 409A(a)(2)(B)(i) (a “Specified Employee”), then, solely to the extent necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the timing of the Plan Payments shall be delayed as follows:  on the earliest to occur of (1) the date that is six months and one day after a “separation from service” (as such term is defined in Section 1.409A-1(h) of the Treasury Regulations), and (2) the date of the Eligible Employee’s death (such earliest date, the “Delayed Initial Payment Date”), and the Company (or the successor entity thereto, as applicable) shall then (i) pay to the Eligible Employee a lump sum amount equal to the sum of the Plan Payments that the Eligible Employee would otherwise have received through the Delayed Initial Payment Date if the commencement of the payment of the Plan Payments had not been delayed pursuant to this Section 3(e) and (ii) commence paying the balance of the Plan Payments in accordance with the applicable payment schedules set forth in on Appendix A and Appendix B.  Prior to the imposition of any delay on the Plan Payments as set forth above, it is intended that (A) each installment of the Plan Payments provided in Appendix A and Appendix B be regarded as a separate “payment” for purposes of Treasury Regulations Section 1.409A-2(b)(2)(i), (B) all Plan Payments provided in Appendix A and Appendix B satisfy, to the greatest extent possible, the exemptions from the application of Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4) and 1.409A-1(b)(9)(iii), and (C) the Plan Payments consisting of COBRA premiums also satisfy, to the greatest extent possible, the exemption from the application of Section 409A provided under Treasury Regulations Section 1.409A-1(b)(9)(v). In addition to the above, to the extent required to comply with Section 409A and the applicable regulations and guidance issued thereunder, if the applicable permitted period for Executive to execute (and not revoke) the applicable Release spans two calendar years, payment of the applicable severance payments shall not commence until the beginning of the second calendar year.  

			
	
			
				 Section 4.
			Company Property.

			
	
			
				 (a)
			Return of Company Property.  An Eligible Employee will not be entitled to any severance under the Plan unless and until the Eligible Employee returns all Company Property.  For this purpose, “Company Property” means all paper and electronic company documents (and all copies thereof) created and/or received by the Eligible Employee during his or her period of employment with the Company and other Company Property which the Eligible Employee had in his or her possession or control at any time, including, but not limited to, Company and/or Employer files, notes, drawings records, plans, forecasts, reports, studies, analyses, proposals, agreements, financial information, research and development information, sales and marketing information, operational and personnel information, specifications, code, software, databases, computer-recorded information, tangible property and equipment (including, but not limited to, leased vehicles, computers, computer equipment, software programs, facsimile machines, mobile telephones, servers), credit and calling cards, entry cards, identification badges and keys; and any materials 

		 

	of any kind which contain or embody any proprietary or confidential information of the Company and/or an Employer (and all reproductions thereof in whole or in part).  As a condition to receiving benefits under the Plan, Eligible Employees must not make or retain copies, reproductions or summaries of any such Company Property.  However, an Eligible Employee is not required to return his or her personal copies of documents evidencing the Eligible Employee’s hire, termination, compensation, benefits and stock options and any other documentation received as a shareholder of the Company.

			
	
			
				 (b)
			Transition of Work.  An Eligible Employee will not be entitled to any severance benefit under the Plan unless and until the Eligible Employee (1) has satisfactorily transitioned his or her work and information concerning his or her work to the Company to the extent reasonably requested in writing by the Company and (2) has provided the Company with all logins, passwords, passcodes and similar information created by the Eligible Employee for documents, email and electronic files that the Eligible Employee created or used on Company systems.

			
	
			
				 Section 5.
			Time Of Payment And Form Of Benefit.

		
			Except as otherwise provided in Section 3, all severance benefits under the Plan shall be paid at the time and in the form provided in Appendix A and Appendix B following the Eligible Employee’s satisfaction of all of the requirements under the Plan.  All payments under the Plan will be subject to applicable withholding for federal, state and local taxes.  If an Eligible Employee is indebted to the Company at his or her termination date, the Company reserves the right to offset any severance payments under the Plan by the amount of such indebtedness.  Additionally, if an Eligible Employee is subject to withholding for taxes related to any non-Plan benefits, the Company may offset any severance payments under the Plan by the amount of such withholding taxes.  However, payments under the Plan will not be subject to any other deductions such as, but not limited to, 401(k) plan contributions and/or 401(k) loan repayments or other employee benefit and benefit plan contributions.
		

			
	
			
				 Section 6.
			Right To Interpret Plan; Amendment and Termination.

			
	
			
				 (a)
			Exclusive Discretion.  The Plan Administrator is the Company.  As Plan Administrator, the Company is the named fiduciary charged with the responsibility for administering the Plan.  The Plan Administrator shall have the exclusive discretion and authority to establish rules, forms, and procedures for the administration of the Plan and to construe and interpret the Plan and to decide any and all questions of fact, interpretation, definition, computation or administration arising in connection with the operation of the Plan, including, but not limited to, the eligibility to participate in the Plan and amount of benefits paid under the Plan.  The Plan Administrator may delegate any or all of its administrative duties to an officer of the Company and any such delegation shall convey with it the full discretionary authority of the Plan Administrator to carry out the delegated duties.  The Company or the Plan Administrator shall indemnify and hold harmless any person to whom it delegated its responsibilities; provided,  however, such person does not act with gross negligence or willful misconduct.  The rules, interpretations, computations and other actions of the Plan Administrator or its delegate shall be binding and conclusive on all persons.

			
	
			
				 (b)
			Termination; Amendment.  The Company reserves the right to amend or terminate this Plan (including the exhibits and appendices hereto) and the benefits provided hereunder at any time prior to a Change of Control of the Company; provided, however, that no such amendment or termination shall affect the right to any unpaid benefit of any Eligible Employee whose Qualifying Termination date has occurred prior to amendment of the Plan.  

			
	
			
				 (c)
			Any purported amendment or termination of this Plan (and the exhibits and appendices hereto) upon or following a Change of Control of the Company will not be effective as to any Eligible Employee who has not consented, in writing, to such amendment or termination. Any action amending or terminating the Plan shall be in writing and executed by a duly authorized executive officer of the Company.

		
			

		 

		

			
	
			
				 Section 7.
			No Implied Employment Contract.

		
			The Plan shall not be deemed (i) to give any employee or other person any right to be retained in the employ of the Company or (ii) to interfere with the right of the Company to discharge any employee or other person at any time, with or without cause, which right is hereby reserved.
		

			
	
			
				 Section 8.
			Legal Construction.

		
			This Plan is intended to be governed by and shall be construed in accordance with the Employee Retirement Income Security Act of 1974 (“ERISA”) and, to the extent not preempted by ERISA, the laws of the State of California (without regard to principles of conflict of laws).
		

			
	
			
				 Section 9.
			Claims, Inquiries And Appeals.

			
	
			
				 (a)
			Applications for Benefits and Inquiries.  Any application for benefits, inquiries about the Plan or inquiries about present or future rights under the Plan must be submitted to the Plan Administrator in writing by an applicant (or his or her authorized representative).  The Plan Administrator is:

		
			Rigel Pharmaceuticals, Inc.
		

		
			Attn: General Counsel
		

		
			1180 Veterans Boulevard
		

		
			South San Francisco, CA 94080
		

		
			 
		

			
	
			
				 (b)
			Denial of Claims.  In the event that any application for benefits is denied in whole or in part, the Plan Administrator must provide the applicant with written or electronic notice of the denial of the application, and of the applicant’s right to review the denial.  Any electronic notice will comply with the regulations of the U.S. Department of Labor.  The notice  of denial will be set forth in a manner designed to be understood by the applicant and will include the following:

			
	
			
				 (1)
			the specific reason or reasons for the denial;

			
	
			
				 (2)
			references to the specific Plan provisions upon which the denial is based;

			
	
			
				 (3)
			a description of any additional information or material that the Plan Administrator needs to complete the review and an explanation of why such information or material is necessary; and

			
	
			
				 (4)
			an explanation of the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the applicant’s right to bring a civil action under Section 502(a) of ERISA following a denial on review of the claim, as described in Section 10(d) below.

		
			This notice of denial will be given to the applicant within ninety (90) days after the Plan Administrator receives the application, unless special circumstances require an extension of time, in which case, the Plan Administrator has up to an additional ninety (90) days for processing the application.  If an extension of time for processing is required, written notice of the extension will be furnished to the applicant before the end of the initial ninety (90) day period.
		

		
			This notice of extension will describe the special circumstances necessitating the additional time and the date by which the Plan Administrator is to render its decision on the application.
		

			
	
			
				 (c)
			Request for a Review.  Any person (or that person’s authorized representative) for whom an application for benefits is denied, in whole or in part, may appeal the denial by submitting a 

		 

	request for a review to the Plan Administrator within sixty (60) days after the application is denied.  A request for a review shall be in writing and shall be addressed to:

		
			Rigel Pharmaceuticals, Inc.
		

		
			Attn: General Counsel
		

		
			1180 Veterans Boulevard
		

		
			South San Francisco, CA 94080
		

		
			 
		

		
			A request for review must set forth all of the grounds on which it is based, all facts in support of the request and any other matters that the applicant feels are pertinent.  The applicant (or his or her representative) shall have the opportunity to submit (or the Plan Administrator may require the applicant to submit) written comments, documents, records, and other information relating to his or her claim.  The applicant (or his or her representative) shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to his or her claim.  The review shall take into account all comments, documents, records and other information submitted by the applicant (or his or her representative) relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.
		

			
	
			
				 (d)
			Decision on Review.  The Plan Administrator will act on each request for review within sixty (60) days after receipt of the request, unless special circumstances require an extension of time (not to exceed an additional sixty (60) days), for processing the request for a review.  If an extension for review is required, written notice of the extension will be furnished to the applicant within the initial sixty (60) day period.  This notice of extension will describe the special circumstances necessitating the additional time and the date by which the Plan Administrator is to render its decision on the review.  The Plan Administrator will give prompt, written or electronic notice of its decision to the applicant. Any electronic notice will comply with the regulations of the U.S. Department of Labor.  In the event that the Plan Administrator confirms the denial of the application for benefits in whole or in part, the notice will set forth, in a manner calculated to be understood by the applicant, the following:

			
	
			
				 (1)
			the specific reason or reasons for the denial;

			
	
			
				 (2)
			references to the specific Plan provisions upon which the denial is based;

			
	
			
				 (3)
			a statement that the applicant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to his or her claim; and

			
	
			
				 (4)
			a statement of the applicant’s right to bring a civil action under Section 502(a) of ERISA.

			
	
			
				 (e)
			Rules and Procedures.  The Plan Administrator will establish rules and procedures, consistent with the Plan and with ERISA, as necessary and appropriate in carrying out its responsibilities in reviewing benefit claims.  The Plan Administrator may require an applicant who wishes to submit additional information in connection with an appeal from the denial of benefits to do so at the applicant’s own expense.

			
	
			
				 (f)
			Exhaustion of Remedies.  No legal action for benefits under the Plan may be brought until the applicant (i) has submitted a written application for benefits in accordance with the procedures described by Section 10(a) above, (ii) has been notified by the Plan Administrator that the application is denied, (iii) has filed a written request for a review of the application in accordance with the appeal procedure described in Section 10(c) above, and (iv) has been notified that the Plan Administrator has denied the appeal.  Notwithstanding the foregoing, if the Plan Administrator does not respond to an 

		 

	applicant’s claim or appeal within the relevant time limits specified in this Section 10, the applicant may bring legal action for benefits under the Plan pursuant to Section 502(a) of ERISA.

			
	
			
				 Section 10.
			Basis Of Payments To And From Plan.

		
			The Plan shall be unfunded, and all benefits under the Plan shall be paid only from the general assets of the Company.  An Eligible Employee’s right to receive payments under the Plan is no greater than that of the Company’s unsecured general creditors.  Therefore, if the Company were to become insolvent, the Eligible Employee might not receive benefits under the Plan.
		

			
	
			
				 Section 11.
			Other Plan Information.

			
	
			
				 (a)
			Employer and Plan Identification Numbers. The Employer Identification Number assigned to the Company (which is the “Plan Sponsor” as that term is used in ERISA) by the Internal Revenue Service is 94-3248524.  The Plan Number assigned to the Plan by the Plan Sponsor pursuant to the instructions of the Internal Revenue Service is 510.

			
	
			
				 (b)
			Ending Date for Plan’s Fiscal Year and Type of Plan.  The date of the end of the fiscal year for the purpose of maintaining the Plan’s records is December 31.  The Plan is a welfare benefit plan.

			
	
			
				 (c)
			Agent for the Service of Legal Process.  The agent for the service of legal process with respect to the Plan is:

		
			Rigel Pharmaceuticals, Inc.
		

		
			Attn: General Counsel
		

		
			1180 Veterans Boulevard
		

		
			South San Francisco, CA 94080
		

		
			 
		

			
	
			
				 (d)
			Plan Sponsor and Administrator.  The Plan Sponsor and the “Plan Administrator” of the Plan is:

		
			Rigel Pharmaceuticals, Inc.
		

		
			Attn: General Counsel
		

		
			1180 Veterans Boulevard
		

		
			South San Francisco, CA 94080
		

		
			 
		

		
			The Plan Sponsor’s and Plan Administrator’s telephone number is (650) 624-1100 and facsimile number is (650) 624‐1101.
		

			
	
			
				 Section 12.
			Statement Of ERISA Rights.

		
			Participants in this Plan are entitled to certain rights and protections under ERISA.  If you are an Eligible Employee, you are considered a participant in the Plan and, under ERISA, you are entitled to:
		

			
	
			
				 (a)
			Receive Information About Your Plan and Benefits

			
	
			
				 (1)
			Examine, without charge, at the Plan Administrator’s office and at other specified locations, such as worksites, all documents governing the Plan and a copy of the latest annual report (Form 5500 Series), if applicable, filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration;

			
	
			
				 (2)
			Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan and copies of the latest annual report (Form 5500 Series), if 

		 

	applicable, and an updated (as necessary) Summary Plan Description.  The Administrator may make a reasonable charge for the copies; and

			
	
			
				 (3)
			Receive a summary of the Plan’s annual financial report, if applicable.  The Plan Administrator is required by law to furnish each participant with a copy of this summary annual report.

			
	
			
				 (b)
			Prudent Actions by Plan Fiduciaries.  In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan.  The people who operate the Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries.  No one, including your employer, your union or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a Plan benefit or exercising your rights under ERISA.

			
	
			
				 (c)
			Enforce Your Rights.  If your claim for a Plan benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules as set forth in detail in Section 10 herein.

		
			Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request a copy of Plan documents or the latest annual report from the Plan, if applicable, and do not receive them within 30 days, you may file suit in a Federal court and you are not required to follow the claims procedure set forth in Section 10 herein.  In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator.
		

		
			If you have completed the claims and appeals procedure described in Section 10 and have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court.
		

		
			If you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court.  The court will decide who should pay court costs and legal fees.  If you are successful, the court may order the person you have sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.
		

			
	
			
				 (d)
			Assistance with Your Questions.  If you have any questions about the Plan, you should contact the Plan Administrator.  If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210.  You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration or accessing its website at http://www.dol.gov/ebsa/.

			
	
			
				 Section 13.
			GENERAL PROVISIONS.

			
	
			
				 (a)
			Notices.  Any notice, demand or request required or permitted to be given by either the Company or an Eligible Employee pursuant to the terms of this Plan shall be in writing and shall be deemed given when delivered personally or deposited in the U.S. mail, with postage prepaid, and addressed to the parties, in the case of the Company, at the address set forth in Section 12(d) and, in the case of an Eligible Employee, at the address as set forth in the Company’s employment file maintained for the 

		 

	Eligible Employee as previously furnished by the Eligible Employee or such other address as a party may request by notifying the other in writing.

			
	
			
				 (b)
			Transfer and Assignment.  The rights and obligations of an Eligible Employee under this Plan may not be transferred or assigned without the prior written consent of the Company.  This Plan shall be binding upon any person who is a successor by merger, acquisition, consolidation or otherwise to the business formerly carried on by the Company without regard to whether or not such person or entity actively assumes the obligations hereunder.  Following a Change of Control, any references to the “Company” in this Plan shall be deemed to be references also to any successor to the company.

			
	
			
				 (c)
			Waiver.  Any party’s failure to enforce any provision or provisions of this Plan shall not in any way be construed as a waiver of any such provision or provisions, nor prevent any party from thereafter enforcing each and every other provision of this Plan.  The rights granted the parties herein are cumulative and shall not constitute a waiver of any party’s right to assert all other legal remedies available to it under the circumstances.

			
	
			
				 (d)
			Severability.  Should any provision of this Plan be declared or determined to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired.

			
	
			
				 (e)
			Section Headings.  Section headings in this Plan are included for convenience of reference only and shall not be considered part of this Plan for any other purpose.

			
	
			
				 Section 14.
			Execution.

		
			To record the adoption of the Plan as set forth herein, effective as of January 24, 2018, Rigel Pharmaceuticals, Inc. has caused its duly authorized officer to execute the same this 25th day of April, 2018.
		

		
			Rigel Pharmaceuticals, Inc.
		

		
			By:/s/ Dolly Vance
		

		
			Title: EVP, General Counsel, Corporate Secretary
		

		
			 
		

		
			

		 

		

		
			Exhibit A
		

		
			RELEASE AGREEMENT
		

		
			I understand and agree completely to the terms set forth in the Rigel Pharmaceuticals, Inc. Executive Severance Plan (the “Plan”).
		

		
			I understand that this Release, together with the Plan, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company, affiliates of the Company and me with regard to the subject matter hereof.  I am not relying on any promise or representation by the Company or the Employers that is not expressly stated therein.  Certain capitalized terms used in this Release are defined in the Plan.
		

		
			I hereby confirm my obligations under my Proprietary Agreement with the Company and/or the Employer.
		

		
			Except as otherwise set forth in this Release, I hereby generally and completely release the Company, the Employers, and their current and former directors, officers, employees, stockholders, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns (collectively, the “Released Parties”) from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Agreement (collectively, the “Released Claims”).  The Released Claims include, but are not limited to:  (1) all claims arising out of or in any way related to my employment with the Company, the Employers or their affiliates, or the termination of that employment; (2) all claims related to my compensation or benefits, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company, the Employers, or their affiliates; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), the federal Employee Retirement Income Security Act of 1974 (as amended), and the California Fair Employment and Housing Act (as amended).  Notwithstanding the foregoing, the following are not included in the Released Claims (the “Excluded Claims”): (1) any rights or claims for indemnification I may have pursuant to any written indemnification agreement with the Company to which I am a party, the charter, bylaws, or operating agreements of the Company, or under applicable law; or (2) any rights which are not waivable as a matter of law.  In addition, I understand that nothing in this Release limits my ability to file a charge or complaint with the Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (“Government Agencies”).  I further understand that this Release does not limit my ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company and/or the Employer.  While this Release does not limit my right to receive an award for information provided to the Securities and Exchange Commission, I understand and agree that, to maximum extent permitted by law, I am otherwise waiving any and all rights I may have to individual relief based on any claims that I have released and any rights I have waived by signing this Release. I hereby represent and warrant that, other than the Excluded Claims, I am not aware of any claims I have or might have against any of the Released Parties that are not included in the Released Claims.  
		

		
			I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the ADEA.  I also acknowledge that the consideration given for the Released Claims is in addition to anything of value to which I was already entitled.  I further acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) the Released Claims do not apply to any rights or claims that arise after the date I sign this Release; (b) I should consult with an attorney prior to signing this Release (although I may choose voluntarily not to do so); (c) I have twenty-one (21) days to consider this Release (although I may choose to voluntarily to sign it sooner); (d) I have seven (7) days following the date I sign this Release to revoke the Release by providing written notice to an 

		 

officer of the Company; and (e) the Release will not be effective until the date upon which the revocation period has expired unexercised, which will be the eighth day after I sign this Release (“Effective Date”).  
		

		
			I acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”  I hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release of any claims hereunder.
		

		
			I hereby represent that I have been paid all compensation owed and for all hours worked, I have received all the leave and leave benefits and protections for which I am eligible, and I have not suffered any on-the-job injury for which I have not already filed a workers’ compensation claim.
		

		
			I hereby agree not to disparage the Company, the Employers, or their officers, directors, employees, shareholders or agents, in any manner likely to be harmful to them or their business, business reputation, or personal reputation; provided, however, that I will respond accurately and fully to any question, inquiry or request for information when required by legal process or in connection with a government investigation.  In addition, I understand that nothing in this Release is intended to prohibit or restrain me in any manner from making disclosures that are protected under the whistleblower provisions of federal or state law or regulation.
		

		
			I acknowledge that to become effective, I must sign and return this Release to the Company so that it is received not later than twenty-one (21) days following the date it is provided to me, and I must not revoke it thereafter.
		

		
			Employee
		

		
			Name:
		

		
			Date:
		

		
			
		

		
			
		

		
			

		 

		

		
			Exhibit B
		

		
			RELEASE AGREEMENT
		

		
			I understand and agree completely to the terms set forth in the Rigel Pharmaceuticals, Inc. Executive Severance Plan (the “Plan”).
		

		
			I understand that this Release, together with the Plan, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company, affiliates of the Company and me with regard to the subject matter hereof.  I am not relying on any promise or representation by the Company or the Employers that is not expressly stated therein.  Certain capitalized terms used in this Release are defined in the Plan.
		

		
			I hereby confirm my obligations under my Proprietary Agreement with the Company and/or the Employer.
		

		
			Except as otherwise set forth in this Release, I hereby generally and completely release the Company, the Employers, and their current and former directors, officers, employees, stockholders, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns (collectively, the “Released Parties”) from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Agreement (collectively, the “Released Claims”).  The Released Claims include, but are not limited to:  (1) all claims arising out of or in any way related to my employment with the Company, the Employers or their affiliates, or the termination of that employment; (2) all claims related to my compensation or benefits, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company, the Employers, or their affiliates; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), the federal Employee Retirement Income Security Act of 1974 (as amended), and the California Fair Employment and Housing Act (as amended).  Notwithstanding the foregoing, the following are not included in the Released Claims (the “Excluded Claims”): (1) any rights or claims for indemnification I may have pursuant to any written indemnification agreement with the Company to which I am a party, the charter, bylaws, or operating agreements of the Company, or under applicable law; or (2) any rights which are not waivable as a matter of law.  In addition, I understand that nothing in this Release limits my ability to file a charge or complaint with the Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (“Government Agencies”).  I further understand that this Release does not limit my ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company and/or the Employer.  While this Release does not limit my right to receive an award for information provided to the Securities and Exchange Commission, I understand and agree that, to maximum extent permitted by law, I am otherwise waiving any and all rights I may have to individual relief based on any claims that I have released and any rights I have waived by signing this Release..  I hereby represent and warrant that, other than the Excluded Claims, I am not aware of any claims I have or might have against any of the Released Parties that are not included in the Released Claims.  
		

		
			I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the ADEA.  I also acknowledge that the consideration given for the Released Claims is in addition to anything of value to which I was already entitled.  I further acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) the Released Claims do not apply to any rights or claims that arise after the date I sign this Release; (b) I should consult with an attorney prior to signing this Release (although I may choose voluntarily not to do so); (c) I have forty-five (45) days to consider this Release (although I may choose to voluntarily to sign it sooner); (d) I have seven (7) days following the date I sign this Release to revoke the Release by providing written notice to an officer of 

		 

the Company; and (e) the Release will not be effective until the date upon which the revocation period has expired unexercised, which will be the eighth day after I sign this Release (“Effective Date”).  
		

		
			I have received with this Release all of the information required by the ADEA (under 29 U.S.C. § 626(f)(1)(H)), including without limitation a detailed list of the job titles and ages of all employees who were terminated in this group termination and the ages of all employees of the Company in the same job classification or organizational unit who were not terminated, along with information on the eligibility factors used to select employees for the group termination and any time limits applicable to this group termination program.
		

		
			I acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”  I hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release of any claims hereunder.
		

		
			I hereby represent that I have been paid all compensation owed and for all hours worked, I have received all the leave and leave benefits and protections for which I am eligible, and I have not suffered any on-the-job injury for which I have not already filed a workers’ compensation claim.
		

		
			I hereby agree not to disparage the Company, the Employers, or their officers, directors, employees, shareholders or agents, in any manner likely to be harmful to them or their business, business reputation, or personal reputation; provided, however, that I will respond accurately and fully to any question, inquiry or request for information when required by legal process or in connection with a government investigation.  In addition, I understand that nothing in this Release is intended to prohibit or restrain me in any manner from making disclosures that are protected under the whistleblower provisions of federal or state law or regulation.
		

		
			I acknowledge that to become effective, I must sign and return this Release to the Company so that it is received not later than forty-five (45) days following the date it is provided to me, and I must not revoke it thereafter.
		

		
			
		

		
			Employee
		

		
			Name:
		

		
			Date:
		

		
			
		

		
			

		 

		

		
			 
		

		
			Exhibit C
		

		
			RELEASE AGREEMENT
		

		
			I understand and agree completely to the terms set forth in the Rigel Pharmaceuticals, Inc. Executive Severance Plan (the “Plan”).
		

		
			I understand that this Release, together with the Plan, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company, affiliates of the Company and me with regard to the subject matter hereof.  I am not relying on any promise or representation by the Company or the Employers that is not expressly stated therein.  Certain capitalized terms used in this Release are defined in the Plan.
		

		
			I hereby confirm my obligations under my Proprietary Agreement with the Company and/or the Employer.
		

		
			Except as otherwise set forth in this Release, I hereby generally and completely release the Company, the Employers, and their current and former directors, officers, employees, stockholders, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns (collectively, the “Released Parties”) from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Agreement (collectively, the “Released Claims”).  The Released Claims include, but are not limited to:  (1) all claims arising out of or in any way related to my employment with the Company, the Employers or their affiliates, or the termination of that employment; (2) all claims related to my compensation or benefits, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company, the Employers, or their affiliates; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, and the California Fair Employment and Housing Act (as amended).  Notwithstanding the foregoing, the following are not included in the Released Claims (the “Excluded Claims”): (1) any rights or claims for indemnification I may have pursuant to any written indemnification agreement with the Company to which I am a party, the charter, bylaws, or operating agreements of the Company, or under applicable law; or (2) any rights which are not waivable as a matter of law.  In addition, I understand that nothing in this Release limits my ability to file a charge or complaint with the Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other federal, state or local governmental agency or commission (“Government Agencies”).  I further understand that this Release does not limit my ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company and/or the Employer.  While this Release does not limit my right to receive an award for information provided to the Securities and Exchange Commission, I understand and agree that, to maximum extent permitted by law, I am otherwise waiving any and all rights I may have to individual relief based on any claims that I have released and any rights I have waived by signing this Release..  I hereby represent and warrant that, other than the Excluded Claims, I am not aware of any claims I have or might have against any of the Released Parties that are not included in the Released Claims.  
		

		
			I acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”  I hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release of any claims hereunder.
		

		
			

		 

		

		
			I hereby represent that I have been paid all compensation owed and for all hours worked, I have received all the leave and leave benefits and protections for which I am eligible, and I have not suffered any on-the-job injury for which I have not already filed a workers’ compensation claim.
		

		
			I hereby agree not to disparage the Company, the Employers, or their officers, directors, employees, shareholders or agents, in any manner likely to be harmful to them or their business, business reputation, or personal reputation; provided, however, that I will respond accurately and fully to any question, inquiry or request for information when required by legal process or in connection with a government investigation.  In addition, I understand that nothing in this Release is intended to prohibit or restrain me in any manner from making disclosures that are protected under the whistleblower provisions of federal or state law or regulation.
		

		
			I acknowledge that to become effective, I must sign and return this Release to the Company so that it is received not later than fourteen (14) days following the date it is provided to me.
		

		
			Employee
		

		
			Name:
		

		
			Date:
		

		
			 
		

		
			

		 

		

		
			Appendix A
		

		
			 
		

		
			Rigel Pharmaceuticals, Inc.
		

		
			 
		

		
			Executive Severance Plan (COC Qualifying Termination)
		

		
			 
		

		
			Severance benefits provided to Eligible Employees under the Rigel Pharmaceuticals, Inc. Executive Severance Plan (the “Plan”) are as follows:
		

			
	
			
				 1.
			

			
	
			
			Severance Benefits.  Subject to the exceptions set forth in Section 2 of the Plan, each Eligible Employee who suffers a COC Qualifying Termination and who meets all of the requirements set forth in the Plan, including, without limitation, executing and letting become effective a general waiver and release in substantially the form attached to the Plan as Exhibit A, Exhibit B or Exhibit C, as applicable, within the applicable time period set forth therein, shall receive severance benefits as set forth in this Appendix A.  

			
	
			
				 (a)
			

			
	
			
			Cash Severance.  The Company shall make a lump sum payment of “Cash Severance” to the Eligible Employee in an amount determined as follows in the table below:  

			
					
						Title at Termination

					
					
						Amount 

				
	
					
						CEO, President or EVP

					
					
						2.5 x (Base Salary + Eligible Bonus) 

				
	
					
						SVP or VP

					
					
						2.0 x (Base Salary +Eligible Bonus)

				

		
			Subject to Sections 2(a)(2)(ii) and 3(e) of the Plan, the Cash Severance will be paid in a lump sum on the first regular payroll date following the effective date of the general waiver and release, but in no event later than March 15 of the year following the year in which the  COC Qualifying Termination occurs.   
		

			
	
			
				 (b)
			

			
	
			
			COBRA Premium Benefit.  If the Eligible Employee was enrolled in a group health plan (i.e., medical, dental, or vision plan) sponsored by the Company or an affiliate of the Company immediately prior to the COC Qualifying Termination, the Eligible Employee may be eligible to continue coverage under such group health plan (or to convert to an individual policy) at the time of the Eligible Employee’s termination of employment under the Consolidated Omnibus Budget Reconciliation Act of 1985 (together with any state law of similar effect, “COBRA”).  The Company will notify the Eligible Employee of any such right to continue such coverage at the time of termination pursuant to COBRA.  No provision of this Plan will affect the continuation coverage rules under COBRA, except that the Company’s payment, if any, of applicable insurance premiums, or waiver of any cost of coverage under any self-funded group health plan, will be credited as payment by the Eligible Employee for purposes of the Eligible Employee’s payment required under COBRA.  Therefore, the period during which an Eligible Employee may elect to continue the Company’s or its affiliate’s group health plan coverage at his or her own expense under COBRA, the length of time during which COBRA coverage will be made available to the Eligible Employee, and all other rights and obligations of the Eligible Employee under COBRA (except the obligation to pay insurance premiums that the Company pays, if any, or, with respect to a self-funded plan, any obligation to pay the cost of coverage to the Company that the Company waives, if any) will be applied in the same manner that such rules would apply in the absence of this Plan.

		
			Provided that the Eligible Employee and/or his or her eligible dependents elect continued medical insurance coverage in accordance with the applicable provisions of the 

		 

Consolidated Omnibus Budget Reconciliation Act of 1986 and any other applicable state and federal law (commonly referred to as “COBRA”), the Company shall pay to the Eligible Employee, on the first day of each month, a fully taxable cash payment equal to the applicable COBRA premiums for that month (including premiums for the Eligible Employee and his or her eligible dependents who have elected and remain enrolled in such COBRA coverage), subject to applicable tax withholdings (such amount, the “Special Severance Payment”), for a number of months equal to the lesser of (i) the duration of the period in which the Eligible Employee and his or her eligible dependents are enrolled in such COBRA coverage (and not otherwise covered by another employer’s group health plan that does not impose an applicable preexisting condition exclusion) and (ii) eighteen (18) months.  The Eligible Employee may, but is not obligated to, use such Special Severance Payment toward the cost of COBRA premiums. On the 45th day following the Eligible Employee’s termination of employment, the Company will make the first payment to the Eligible Employee under this Section Section 1(b), in a lump sum, equal to the aggregate Special Severance Payments that the Company would have paid to the Participant through such date had the Special Severance Payments commenced on the first day of the first month following the termination of employment through such day, with the balance of the Special Severance Payments paid thereafter on the schedule described above.  In the event the terminated Eligible Employee becomes covered under another employer's group health plan (other than a plan that imposes a preexisting condition exclusion unless the preexisting condition exclusion does not apply) or otherwise ceases to be eligible for COBRA during the period provided in this Section 1(b), then the Eligible Employee must immediately notify the Company of such event, and the Special Severance Payments shall cease.  Notwithstanding the foregoing, if the if the Company determines in its sole discretion that it may pay COBRA premiums for Eligible Employee and any dependents covered under the Company’s group health plan immediately prior to such termination of employment without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then, in lieu of paying to the Eligible Employee the Special Severance Payments described above, for a period of 18 months commencing one calendar day following the date upon which Eligible Employee incurs a termination of employment, the Company shall pay COBRA premiums for Eligible Employee and any dependents covered under the Company’s group health plan immediately prior to such termination of employment, provided that the Company may cease making such premium payments when Eligible Employee secures other employment and becomes eligible to participate in the health insurance plan of Eligible Employee’s new employer (other than a plan that imposes a preexisting condition exclusion unless the preexisting condition exclusion does not apply).
		

		
			For purposes of this Section 1(b), any applicable insurance premiums that are paid by the Company shall not include any amounts payable by the Eligible Employee under an Internal Revenue Code Section 125 health care reimbursement plan, which amounts, if any, are the sole responsibility of the Eligible Employee.
		

			
	
			
				 (c)
			

			
	
			
			Accelerated Vesting.   The vesting and exercisability of all then-outstanding compensatory equity awards held by the Eligible Employee shall be accelerated such that the awards are fully vested and exercisable as of the date of the COC Qualifying Termination.

		
			(d)Extended Period to Exercise Post Termination.    If the Eligible Employee has signed an agreement to extend the period to exercise post termination within thirty (30) days after becoming eligible to participate in the Plan, the Company will amend such Eligible Employee’s then-outstanding stock options to extend the post-termination exercise period of such options that is applicable upon a COC Qualifying Termination until the earlier of (i) the original end of the term of each such option (generally 10 years 

		 

from the date of grant) or (ii) the one (1) year anniversary of the date of the COC Qualifying Termination. 
		

		
			 
		

		
			2.Definitions:  The following definitions shall apply for purposes of this Appendix A:
		

			
	
			
				 (d)
			

			
	
			
			“Base Salary” shall mean the greater of the Eligible Employee’s base salary in effect immediately prior to (i) the Change of Control or (ii) the date of the COC Qualifying Termination. Base Salary does not include variable forms of compensation such as bonuses, incentive compensation, commissions, expenses or expense allowances.

			
	
			
				 (e)
			

			
	
			
			“Eligible Bonus” shall mean the product of (i) the average percentage of the target annual incentive bonus earned by the Eligible Employee for performance during the two fiscal years immediately prior to the fiscal year in which the Qualifying Termination occurs and (ii) the target annual incentive bonus, expressed in dollars, which the Eligible Employee is eligible to earn in the fiscal year in which (A) the Change of Control occurs or (B) the Qualifying Termination occurs, whichever of (A) or (B) is greater.    

		
			The foregoing severance benefits are subject to all of the terms and conditions of the Plan, including reduction against any other severance owed to the Eligible Employee.  
		

		
			 
		

		
			Rigel Pharmaceuticals, Inc.
		

		
			By:/s/ Dolly Vance
		

		
			Title: EVP, General Counsel, Corporate Secretary
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			
		

		
			

		 

		

		
			Appendix b
		

		
			Rigel Pharmaceuticals, Inc.
		

		
			Executive Severance Plan (Non-COC Qualifying Termination)
		

		
			Severance benefits provided to Eligible Employees under the Rigel Pharmaceuticals, Inc. Executive Severance Plan (the “Plan”) are as follows:
		

			
	
			
				 1.
			

			
	
			
			Severance Benefits.  Subject to the exceptions set forth in Section 2 of the Plan, each Eligible Employee who suffers a Non-COC Qualifying Termination and who meets all of the requirements set forth in the Plan, including, without limitation, executing and letting become effective a general waiver and release in substantially the form attached to the Plan as Exhibit A, Exhibit B or Exhibit C, as applicable, within the applicable time period set forth therein, shall receive severance benefits as set forth in this Appendix B.  

			
	
			
				 (a)
			

			
	
			
			Cash Severance.  The Company shall make a provide for continuing Base Salary payments (“Cash Severance”) to the Eligible Employee in an amount equal to the Base Salary that would have been paid during the period (the “Severance Period”) in the table below had the Eligible Employee continued the service through such Severance Period:  

			
					
						 

					
					
						 

				
	
					
						Title at Termination

					
					
						Severance Period 

				
	
					
						CEO

					
					
						18 months 

				
	
					
						EVP

					
					
						12 months

				
	
					
						SVP 

					
					
						12 months 

				
	
					
						VP

					
					
						9 months

				

		
			 
		

		
			Subject to Sections 2(a)(2)(ii) and 3(e) of the Plan, the Cash Severance will be paid in regular installments on each regularly scheduled payroll date until the earlier to occur of the Severance Period following the Non-COC Qualifying Termination or the March 14 of the calendar year following the Non-COC Qualifying Termination.   
		

			
	
			
				 (b)
			

			
	
			
			COBRA Premium Benefit.  If the Eligible Employee was enrolled in a group health plan (i.e., medical, dental, or vision plan) sponsored by the Company or an affiliate of the Company immediately prior to the Non-COC Qualifying Termination, the Eligible Employee may be eligible to continue coverage under such group health plan (or to convert to an individual policy) at the time of the Eligible Employee’s termination of employment under the Consolidated Omnibus Budget Reconciliation Act of 1985 (together with any state law of similar effect, “COBRA”).  The Company will notify the Eligible Employee of any such right to continue such coverage at the time of termination pursuant to COBRA.  No provision of this Plan will affect the continuation coverage rules under COBRA, except that the Company’s payment, if any, of applicable insurance premiums, or waiver of any cost of coverage under any self-funded group health plan, will be credited as payment by the Eligible Employee for purposes of the Eligible Employee’s payment required under COBRA.  Therefore, the period during which an Eligible Employee may elect to continue the Company’s or its affiliate’s group health plan coverage at his or her own expense under COBRA, the length of time during which COBRA coverage will be made available to the Eligible Employee, and all other rights and obligations of the Eligible Employee under 

		 

	COBRA (except the obligation to pay insurance premiums that the Company pays, if any, or, with respect to a self-funded plan, any obligation to pay the cost of coverage to the Company that the Company waives, if any) will be applied in the same manner that such rules would apply in the absence of this Plan.

		
			Provided that the Eligible Employee and/or his or her eligible dependents elect continued medical insurance coverage in accordance with the applicable provisions of the Consolidated Omnibus Budget Reconciliation Act of 1986 and any other applicable state and federal law (commonly referred to as “COBRA”), the Company shall pay to the Eligible Employee, on the first day of each month, a fully taxable cash payment equal to the applicable COBRA premiums for that month (including premiums for the Eligible Employee and his or her eligible dependents who have elected and remain enrolled in such COBRA coverage), subject to applicable tax withholdings (such amount, the “Special Severance Payment”), for a number of months equal to the lesser of (i) the Severance Period in the table above, and (ii) the duration of the period in which the Eligible Employee and his or her eligible dependents are enrolled in such COBRA coverage (and not otherwise covered by another employer’s group health plan that does not impose an applicable preexisting condition exclusion).  The Eligible Employee may, but is not obligated to, use such Special Severance Payment toward the cost of COBRA premiums. On the 45th day following the Eligible Employee’s termination of employment, the Company will make the first payment to the Eligible Employee under this Section Section 1(b), in a lump sum, equal to the aggregate Special Severance Payments that the Company would have paid to the Participant through such date had the Special Severance Payments commenced on the first day of the first month following the termination of employment through such day, with the balance of the Special Severance Payments paid thereafter on the schedule described above.  In the event the terminated Eligible Employee becomes covered under another employer's group health plan (other than a plan that imposes a preexisting condition exclusion unless the preexisting condition exclusion does not apply) or otherwise ceases to be eligible for COBRA during the period provided in this Section 1(b), then the Eligible Employee must immediately notify the Company of such event, and the Special Severance Payments shall cease.  Notwithstanding the foregoing, if the if the Company determines in its sole discretion that it may pay COBRA premiums for Eligible Employee and any dependents covered under the Company’s group health plan immediately prior to such termination of employment without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then, in lieu of paying to the Eligible Employee the Special Severance Payments described above, for the Severance Period in the table above commencing one calendar day following the date upon which Eligible Employee incurs a termination of employment, the Company shall pay COBRA premiums for Eligible Employee and any dependents covered under the Company’s group health plan immediately prior to such termination of employment, provided that the Company may cease making such premium payments when Eligible Employee secures other employment and becomes eligible to participate in the health insurance plan of Eligible Employee’s new employer (other than a plan that imposes a preexisting condition exclusion unless the preexisting condition exclusion does not apply).
		

		
			For purposes of this Section 1(b), any applicable insurance premiums that are paid by the Company shall not include any amounts payable by the Eligible Employee under an Internal Revenue Code Section 125 health care reimbursement plan, which amounts, if any, are the sole responsibility of the Eligible Employee.
		

			
	
			
				 (c)
			

			
	
			
			Accelerated Vesting.   The vesting and exercisability of any then-outstanding and unvested time-based compensatory equity awards held by the Eligible Employee that would have vested during the period in the table below (the “Vesting Amount”) had the Eligible Employee continued employment with the Company through the end of such 

		 

	period shall become vested and exercisable as of the date of the Non-COC Qualifying Termination:

			
					
						 

					
					
						 

				
	
					
						Title at Termination

					
					
						Vesting Amount 

				
	
					
						CEO

					
					
						18 months 

				
	
					
						EVP

					
					
						12 months 

				
	
					
						SVP 

					
					
						12 months 

				
	
					
						VP

					
					
						9 months

				

		
			 
		

		
			 
		

		
			Further, the vesting and exercisability of any then-outstanding and unvested performance-based compensatory equity awards held by the Eligible Employee that would have vested during the Period to Exercise in the table below had the Eligible Employee continued employment with the Company through the end of such period shall become vested and exercisable as of the date, if any, that the performance goal relating to such performance-based vesting awards is achieved. 
		

		
			(d)Extended Period to Exercise Post Termination.    If the Eligible Employee has signed an agreement to extend the period to exercise post termination within thirty (30) days after becoming eligible to participate in the Plan, the post-termination exercise period of such Eligible Employee’s then-outstanding stock options will be automatically extended until the earlier of (i) the original end of the term of each such option (generally 10 years from the date of grant) or (ii) the Period to Exercise in the table below.   
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Title at Termination

					
					
						Period to Exercise 

				
	
					
						CEO

					
					
						30 months 

				
	
					
						EVP 

					
					
						24 months 

				
	
					
						SVP 

					
					
						24 months

				
	
					
						VP

					
					
						21 months 

				

		
			 
		

		
			 
		

		
			2.Definition:  The following definition shall apply for purposes of this Appendix B:
		

			
	
			
				 (d)
			

			
	
			
			“Base Salary” shall mean the greater of the Eligible Employee’s base salary in effect immediately prior to the date of the Non-COC Qualifying Termination. Base Salary does not include variable forms of compensation such as bonuses, incentive compensation, commissions, expenses or expense allowances.

		
			 
		

		
			 
		

		
			

		 

		

		
			 
		

		
			The foregoing severance benefits are subject to all of the terms and conditions of the Plan, including reduction against any other severance owed to the Eligible Employee.  
		

		
			 
		

		
			Rigel Pharmaceuticals, Inc.
		

		
			By:     /s/ Dolly Vance
		

		
			Title: EVP, General Counsel, Corporate SecretaryExhibit 10.1

 

2020
Long Term Retention Program

 

MERCADOLIBRE, INC. 2020 LONG TERM RETENTION
PROGRAM

 

 

 

 

 

 

 

 

 

Effective as of January 1, 2020

 

 

Contents

 

 

MercadoLibre, Inc. 2020 Long Term Retention
Program

 

	Article 1.   Purpose	2
	Article 2.   Definitions	2
	Article 3.   Participation and Award Opportunities	5
	Article 4.   Payment of Awards	5
	Article 5.   Termination of Employment; Forfeitures	7
	Article 6.   Administrative Provisions	9

    	 	1	 

     

    

MERCADOLIBRE,
INC. 2020 LONG TERM RETENTION PROGRAM

 

Article 1.                
Purpose

 

The MercadoLibre, Inc. 2020 Long Term Retention
Program (the “Plan”) is effective as of January 1, 2020. The principal purpose of the Plan is to assist the Company
in the retention of key employees that have valuable industry experience and developed competencies by rewarding Participants in
relation to their individual results and their contributions to the organization, as well as overall Company goals and performance.

 

Article 2.                
Definitions

 

When used in the Plan, the following terms
shall have the meanings set forth below:

 

“Affiliate” means with respect
to any Person, a Person that controls, is controlled by, or is under common control with such Person (it being understood, that
a Person shall be deemed to “control” another Person, for purposes of this definition, if such Person directly or indirectly
has the power to direct or cause the direction of the management and policies of such other Person, whether through holding ownership
interests in such other Person, through agreements or otherwise, and that direct or indirect ownership of ten percent (10%) or
more of the voting interests of another Person shall always be deemed to constitute “control”).

 

“Award” means a cash bonus to
be paid to a Participant, subject to the terms and conditions of this Plan, for services provided to the Company.

 

“Award Committee” means (i) with
respect to all Eligible Employees, the Compensation Committee of the Board, or such other committee that the Board appoints to
administer this Plan, which shall have general administrative authority concerning the Plan, and (ii) with respect to Eligible
Employees who are not executive officers of the Company, the Company’s Chief Executive Officer, each of which shall, subject
to Article 6, have the authority and discretion to resolve any and all terms and conditions of any Awards and disputes concerning
the Plan and any Awards hereunder.

 

“Board” means the board of directors
of the Company.

 

“Cause” means “cause”
or a similar term set forth in the Participant’s employment agreement with the Company or, if no such agreement is then in
effect, shall mean (A) the Participant’s material disregard of his responsibilities, authorities, powers, functions or duties
or failure to act, (B) repeated or material negligence or misconduct by the Participant in the performance of his duties, (C) appropriation
(or attempted appropriation) of a business opportunity of the Company, including attempting to secure or securing any personal
profit in connection with any transaction entered into on behalf of the Company, (D) the commission by the Participant of any act
of fraud, theft or financial dishonesty with respect to the Company, or any felony or criminal act involving moral turpitude or
dishonesty on the part of the Participant, (E) the Participant’s habitual drunkenness or excessive absenteeism not related
to sickness, and/or (F) the material breach by the Participant of any provision of his employment agreement that is not cured by
the Participant within thirty (30) days after written notice of breach has been delivered to the Participant by the Company, unless
such breach is incapable of cure (in which case the Participant shall not be entitled to an opportunity to cure), in each case
of clauses (A) through (F) above, as determined by the Board in good faith.

 

“Change in Control” shall mean
a change in control of the Company which will be deemed to have occurred after the date hereof if:

 

		(a)	any “person” as such term is used in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d)
and 14(d) thereof, is or becomes the beneficial owner, as such term is defined in Rule 13d-3 under the Exchange Act, directly or
indirectly, of securities of the Company representing at least fifty percent (50%) of the combined voting power or Shares of the
Company; provided, however, that such term shall not include (A) the Company or any of its subsidiaries, (B) any trustee or other
fiduciary holding securities under an employee benefit plan of the Company or any of its affiliates, (C) an underwriter temporarily
holding securities pursuant to an offering of such securities, (D) any corporation owned, directly or indirectly, by the shareholders
of the Company in substantially the same proportions as their ownership of the Company’s Shares, or (E) any person or group
as used in Rule 13d-1(b) under the Exchange Act;

    	 	2	 

     

    

		(b)	there is consummated a merger or consolidation of the Company or any of its direct or indirect subsidiaries with any other
corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving
entity or any parent thereof) more than fifty percent (50%) of the combined voting power and Shares of the Company or such surviving
entity or any parent thereof outstanding immediately after such merger or consolidation; or

 

		(c)	there is completed a sale or disposition by the Company of all or substantially all of the Company’s assets (or any transaction
having a similar effect, including a liquidation) other than a sale or disposition by the Company of all or substantially all of
the Company’s assets to an entity, more than fifty percent (50%) of the combined voting power and Shares of which is owned
by shareholders of the Company in substantially the same proportions as their ownership of the Shares of the Company immediately
prior to such sale.

 

“Company” means MercadoLibre,
Inc. and its consolidated subsidiaries, and MercadoLibre, Inc.’s successors or assigns.

 

“Covered Termination” means (i)
a termination of a Participant’s employment by the Company without Cause and for a reason other than the Participant’s
death or disability (as determined under Article 5(a)) or (ii) a Participant’s resignation from the Company with Good Reason).

 

“Eligible Employee” means an
individual who is designated by the Award Committee as eligible for this Plan and who is employed by the Company as determined
by the Award Committee.

 

“Good Reason” means (i) a material
diminution in the Participant’s duties, functions and responsibilities to the Company without the Participant’s consent
or the Company preventing the Participant from fulfilling or exercising the Participant’s materials duties, functions and
responsibilities to the Company without the Participant’s consent; (ii) a material reduction in the Participant’s base
salary or bonus opportunity or (iii) a requirement that the Participant relocate the Participant’s employment more than fifty
(50) miles from the location of the Participant’s principal office without the consent of the Participant. A Participant’s
resignation shall not be a resignation with Good Reason unless the Participant gives the Company written notice (delivered within
thirty (30) days after the Participant knows of the event, action, etc. that the Participant asserts constitutes Good Reason),
the event, action, etc. that the Participant asserts constitutes Good Reason is not cured, to the reasonable satisfaction of the
Participant, within thirty (30) days after such notice and the Participant resigns effective not later than thirty (30) days after
the expiration of such cure period.

 

“Market Value” of a Share, as
of any date, means (i) the average closing sale price of one Share as reported on a national stock exchange, including, but not
limited to, the NASDAQ Global Market (a “National Stock Exchange”) during the sixty (60) trading day period (or such
shorter period as the Shares are so listed) ending on the last trading day immediately preceding such date; (ii) if the Shares
are not listed for trading on a National Stock Exchange during any day in that sixty (60) trading day period but are quoted on
the Over-the-Counter-Bulletin Board (the “OTCBB”), the mean between the closing bid and closing asked prices for the
Shares as quoted on the OTCBB during the sixty (60) trading day period (or such shorter period as the Shares are so quoted) ending
on the last trading day immediately preceding such date, (iii) if the Shares are not listed for trading on a National Stock Exchange
or quoted on the OTCBB during any day in that sixty (60) trading day period and the Shares were last traded on a National Stock
Exchange, the average closing sale price of one Share as reported on the National Stock Exchange during the ninety (90) trading
day period ending on the last day the Shares were listed for trading on such Exchange or (iv) if the Shares are not listed for
trading on a National Stock Exchange or quoted on the OTCBB during any day in that sixty (60) trading day period and the Shares
were last traded on the OTCBB, the mean between the closing bid and closing asked prices for the Shares as quoted on the OTCBB
during the ninety (90) trading day period ending on the last day the Shares were quoted on the OTCBB. For purposes of calculating
the benefits and valuing Shares for the single cash payment payable within fifteen (15) days after a Change in Control, the term
“Market Value” means the amount determined under the preceding sentence determined as of the date on which the Change
in Control occurs. For purposes of calculating benefits and valuing Shares for other payments payable after a Change of Control,
the term “Market Value” means, (x) in the event the Company is not the surviving entity in the Change in Control, the
amount determined under the first sentence of this paragraph and determined as of the date on which the Change in Control occurs,
or, (y) in the event the Company is the surviving entity in the Change in Control, the greater of (A) the amount determined under
the first sentence of this paragraph and determined as of the date the benefit is a payable (e.g., as of January 31
of the appropriate year or the date of a Participant’s Covered Termination, as applicable) or (B) the amount determined under
the first sentence of this paragraph and determined as of the date on which the Change in Control occurs.

    	 	3	 

     

    

“MercadoLibre Business” means
any activities directly or indirectly related to Online Transactional Platforms, Online Classified Advertisements and/or Payment
Platforms.

 

“Online Classified Advertisements”
means listings of goods, products or services on Internet sites, which listings (1) serve the same purpose as the listings appearing
in the classifieds section of printed newspapers, (2) include direct contact information of the seller via telephone, e-mail or
any offline method, which contact information is readily and continuously available to any visitor without restriction or special
action required from the visitor, or provide for a method to contact the seller so that the seller may then respond providing direct
contact information, and (3) are on Internet sites the operator or administrator of which does not (x) play any role in consummating
the transaction to which the listing relates, or (y) provide any information (other than contact information) to the seller regarding
the potential buyer or interested party, or otherwise serve as middle-man between a potential buyer and seller (other than for
the limited purposes expressly set forth in this paragraph), or (z) charge any fee or commission for such transaction (including,
without limitation, any fees for completion of transactions and/or fees based on number of users contacting another user) other
than a listing fee, which is a fee for placing the listing on the website and is chargeable before or at the time such listing
appears. Examples of Online Classifieds Advertisements include Craigslist.com, Kijiji.com, and olx.com.

 

“Online Transactional Platforms”
means online transactional platforms or similar as determined by the Award Committee including, but not limited to, (a) any online
platform offering a wide variety of product lines and/or services, operating in a manner similar to Amazon.com or Submarino.com
as of the date hereof and/or (b) online transactional marketplaces located on websites in which sellers and potential buyers transact
for any kinds of goods and/or services, which goods and/or services are displayed on such website, and in which the sellers’
and potential buyers’ initial contact can only be made through such website (for purposes of initial contact, direct contact
information of another user is not made available to users, in accordance with the terms of use of such website), such as eBay.com,
MercadoLibre.com, DeRemate.com, etc. (and any such domain name with country suffixes).

 

“Participant” means an Eligible
Employee who is designated as eligible to receive an Award for services provided in 2020. The designation of an individual as a
Participant under this Plan shall not provide the individual with any rights to any future participation for any subsequent long
term retention plans that may be adopted by the Company in future years but, subject to the terms of the Plan, an individual shall
remain a Participant for purposes of receiving a payment of an Award until such individual ceases to be an Eligible Employee.

 

“Payments Platforms” means websites
or platforms enabling the sending, receipt, holding and/or transfer of money from one user to another user through an account that
is funded by, among other things, traditional payment methods and then used to transact with another user electronically, such
as PayPal.com, MercadoPago.com, or Dineromail.com (and any such domain name with country suffixes).

 

“Person” means and includes a
natural person, a corporation, an association, a partnership, a limited liability company, a trust, a joint venture, an unincorporated
organization or any other similar entity or a governmental or quasi-governmental body.

 

“Shares” means shares of common
stock of the Company, $0.001 par value per share.

 

“Territory” means the United
States of America and each country and territory in Latin America and the Caribbean, including, without limitation, Argentina,
Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua,
Panama, Paraguay, Peru, Puerto Rico, Uruguay, and Venezuela.

    	 	4	 

     

    

Article 3.                
Participation and Award Opportunities

 

The amount of the Award for each Plan Participant
will be established by the Award Committee and communicated to each Plan Participant. The amount of each Award may be different
for each Participant or levels of Participants as determined by the Award Committee.

 

The amount of each Award shall be enumerated
as a specified amount, calculated in accordance with Article 4 hereof, of United States dollars, unless the Award Committee determines
the amount of any such Award in a local currency. The amount of each Award, to the extent it becomes payable, shall be paid in
the form of cash only.

 

Article 4.                
Payment of Awards

 

(a)        Conditions
and Payment.

 

		(1)	Any Award granted to a Participant shall be payable to the Participant in accordance with and subject
to the terms of this Article 4 and Article 5.

 

(2) The timing and conditions
of the payment of such Award are subject to the terms and conditions of the Plan and, subject to Article 6 of the Plan, any other
terms and conditions determined by the Award Committee to be appropriate. Subject to the following paragraphs and Article 5, Participant
must be employed as an Eligible Employee on the date each portion Award is to be paid to such Participant. An Award may, but is
not required to, be evidenced by a separate agreement executed by the Participant.

 

(3) Each Participant’s
Award shall be payable as follows:

 

		(i)	Sixteen and two-thirds percent (16.66%) of half of Participant’s Award shall be payable to the Participant on or about
January 31 of each calendar year for a period of six (6) years starting in 2021; and

 

		(ii)	the Participant shall receive on or about January 31 of each calendar year for a period of six (6) years starting in 2021,
a payment equal in value to the product of (i) multiplied by (ii), where (i) equals sixteen and two-thirds percent (16.66%) of
half of Participant’s Award and (ii) equals the quotient of (a) divided by (b), where (a), the numerator, equals the Market
Value as of last day of the fiscal year immediately preceding the fiscal year in which the applicable payment date occurs and (b),
the denominator, equals $553.45 (the average closing price of the Company’s common stock on the NASDAQ Global Market during
the final sixty (60) trading days of 2019).

 

(b)       
Notwithstanding anything in the Plan or any other agreement entered into in connection with or pursuant to the Plan:

 

		(1)	Each Participant who is employed by the Company on the date a Change in Control occurs shall be vested in the right to receive
fifty percent (50%) of the Award payments scheduled to be paid thereafter.

 

		(2)	As soon as practicable after the date a Change in Control occurs, but in no event more than fifteen (15) days after the date
a Change in Control occurs, each Participant described in clause (1) of this paragraph shall receive a single cash payment equal
to fifty percent (50%) of the Award payments scheduled to be paid after the Change in Control (based on the Market Value on the
date the Change in Control occurs).

 

		(3)	Each Award payment scheduled to be paid after the Change in Control shall be reduced by fifty percent (50%), i.e., to
reflect the single cash payment under clause (2) of this paragraph, and shall continue to be paid on each January 31 in accordance
with the preceding paragraph, subject to the Participant’s continued employment; provided, however, that if a Participant
described in clause (1) of this paragraph experiences a Covered Termination on or after Change in Control, then any Award payments
scheduled to be paid after the Covered Termination shall be paid in a single cash payment (based on the Market Value on the date
of the Covered Termination) within fifteen (15) days after the Covered Termination.

    	 	5	 

     

    

(c)        Notwithstanding
anything in the Plan or any agreement entered into in connection with or pursuant to the Plan:

 

		(1)	The portion of any Award under this Plan that was forfeited or forfeitable upon the Participant’s Covered Termination
before a Change in Control shall be reinstated (or if not yet forfeited, retained) as of the date of the Change in Control if such
date is not more than one hundred and twenty (120) days after the date of the Covered Termination.

 

		(2)	As soon as practicable after the date a Change in Control occurs, but in no event more than fifteen (15) days after the date
a Change in Control occurs, each Participant described in clause (1) of this paragraph shall receive a single cash payment equal
to one hundred percent (100%) of the Award payments scheduled to be paid after the date of the Participant’s Covered Termination.
With respect to any Award payment originally scheduled to have been paid before the date of the Change in Control, the amount of
such payment will be based on the Market Value on the date of the Covered Termination. With respect to any Award payments scheduled
to be paid on or after the Change in Control, the amount of such payment will be based on the Market Value on the date the Change
in Control occurs.

 

(d)        Notwithstanding
anything in the Plan or any other agreement entered into in connection with or pursuant to the Plan:

 

		(1)	If any portion of an Award received or to be received by a Participant (either alone or together with other payments or benefits
which such Participant received or realized or is then entitled to receive or realize from the Company under any other plan, program,
arrangement or agreement in connection with a Change in Control or a Participant’s termination of employment) (all such payments
and benefits, being hereinafter referred to as the “Total Payments”) would be subject (in whole or part), to any excise
tax imposed under section 4999 of the Internal Revenue Code of 1986 (the “Code”, and such excise tax, the “Excise
Tax”), then, after taking into account any reduction in the Total Payments provided by reason of section 280G of the Code
in any other plan, program, arrangement or agreement, the Company will reduce the payment of the Award to the extent necessary
so that no portion of the Total Payments is subject to the Excise Tax (but in no event to less than zero); provided, however,
that the Award will only be reduced if (i) the net amount of any Total Payments, as so reduced (and after subtracting the net amount
of United States federal, state, municipal and local income taxes on such reduced Total Payments and after taking into account
the phase out, if any, of itemized deductions and personal exemptions attributable to such reduced Total Payments), is greater
than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal,
state, municipal and local income taxes on such Total Payments and the amount of Excise Tax to which the Participant would be subject
in respect of such unreduced Total Payments and after taking into account the phase out, if any, of itemized deductions and personal
exemptions attributable to such unreduced Total Payments).

 

		(2)	If (A) any portion of the Total Payments other than an Award (the “Other Payments”) is required to be reduced pursuant
to a provision substantially similar to this Article 4(d), (B) any portion of an Award is required to be reduced pursuant to this
Article 4(d); and (C) there is no other provision in any other plan, program, arrangement or agreement governing the payment of
the Other Payments which dictates the order of the reduction in the Other Payments, then the Total Payments will be reduced in
the following order: (i) payments that are payable in cash that are valued at full value under Treasury Regulation Section 1.280G-1,
Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last reduced first; (ii) payments and benefits
due in respect of any equity valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a), with the highest values
reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; (iii)
payments that are payable in cash that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24,
with amounts that are payable last reduced first, will next be reduced; (iv) payments and benefits due in respect of any equity
valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest values reduced first (as
such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; and (v) all other non-cash
benefits not otherwise described in clauses (ii) or (iv) will be next reduced pro-rata. Any reductions made pursuant to each of
clauses (i)-(v) above will be made in the following manner: first, a pro-rata reduction of cash payment and payments and benefits
due in respect of any equity not subject to section 409A of the Code, and second, a pro-rata reduction of cash payments and payments
and benefits due in respect of any equity subject to section 409A of the Code as deferred compensation.

    	 	6	 

     

    

		(3)	For purposes of determining whether and the extent to which the Award will be subject to the Excise Tax and the amount of such
Excise Tax: (i) no portion of the Award the receipt or enjoyment of which the Participant shall have waived at such time and in
such manner as not to constitute a “payment” within the meaning of section 280G(b) of the Code will be taken into account;
and (ii) no portion of the Award will be taken into account which, in the opinion of the accounting firm which was, immediately
prior to the Change in Control, the Company’s independent auditor, does not constitute a “parachute payment”
within the meaning of section 280G(b)(2) of the Code (including by reason of section 280G(b)(4)(A) of the Code) and, in calculating
the Excise Tax, no portion of such Award will be taken into account which constitutes reasonable compensation for services actually
rendered, within the meaning of section 280G(b)(4)(B) of the Code, in excess of the Base Amount (as defined in section 280G(b)(3)
of the Code) allocable to such reasonable compensation.

 

		(4)	The fact that the Participant’s right to payments or benefits may be reduced by reason of the limitations contained in
this Article 4(d)(4) will not of itself limit or otherwise affect any other rights of the Participant under the Plan. The Participant
and the Company shall each reasonably cooperate with the other in connection with any administrative or judicial proceedings concerning
the existence or amount of liability for Excise Tax with respect to the Award.

 

Article 5.                
Termination of Employment; Forfeitures

 

(a)              
Except as provided in Article 4 with respect to a Covered Termination within one hundred and twenty (120) days before a
Change in Control or a Covered Termination on or after a Change in Control, participation in the Plan shall cease immediately upon
a Participant’s retirement, resignation or termination of employment as an Eligible Employee for any reason (with or without
Cause), or if determined by the Award Committee, upon the Participant’s death or disability. Disability will be determined
under the Company’s long term disability plan, if any, or upon receipt of a letter of determination or similar of the Participant’s
complete disability by the applicable governmental authority under local applicable law, which complete disability entitles the
Participant to disability payments under local law.

 

(b)              
In the event that:

 

		(1)	while the Participant is employed by the Company, he or she engages in, directly or indirectly, any other business or activity
that could materially or adversely affect the Company’s business or his or her ability to perform his or her duties for the
Company, including, but not limited to, any activities adversely affecting the MercadoLibre Business anywhere in the Territory;

 

		(2)	while the Participant is employed by the Company or during the one-year period following the termination of the Participant’s
employment for any reason, he or she directly or indirectly, on his or her own behalf or on behalf of another Person or entity,
hires or solicits for hire any employees of the Company or its Affiliates or in any manner attempts to influence or induce any
employee of the Company or its Affiliates to leave their employment; or

    	 	7	 

     

    

		(3)	while the Participant is employed by the Company or during the one-year period following the termination of the Participant’s
employment for any reason, he or she alone (or in association with any other Person) directly or indirectly, in any capacity, owns,
operates, manages, controls, engages in, invests in, becomes employed by, acts as a consultant or advisor to, or provides services
for, or otherwise assists any other Person in activities that are competitive with the MercadoLibre Business anywhere in the Territory,

 

he or she will automatically forfeit any
and all benefits received under the Plan and any and all benefits which the Participant may otherwise be entitled to receive under
the Plan. If the Participant terminates employment with the Company for any reason (with or without Cause) and he or she alone
(or in association with any other Person) takes any of the action set forth in subparagraph (1), (2) or (3) above, the Participant
will be required to immediately, and in no event more than five (5) days following the termination of the Participant’s employment,
return all amounts which the Participant has received under the terms of the Plan (the “Recovery Amount”), and the
Participant and the Company hereby agree to the following, notwithstanding any Plan provision to the contrary:

 

(i)                
that the Company may withhold all or a portion of the Recovery Amount from any salary, wages or other amounts due to the
Participant from the Company; and

 

(ii)             
in addition to the Recovery Amount, the Company may also recover any fees incurred by the Company in seeking to collect
the Recovery Amount, including, but not limited to, the Company’s reasonable attorneys’ fees.

 

Notwithstanding the foregoing, ownership
of less than five percent (5%) of the outstanding capital stock of any Person whose securities are registered under the Securities
Exchange Act of 1934, as amended, in and of itself shall not be cause for automatic forfeiture under Article 5(b)(3), whether or
not the subject Person is competitive with the Company.

 

(c)              
Except as provided in Article 4 with respect to a Covered Termination within one hundred and twenty (120) days before a
Change in Control or a Covered Termination on or after a Change in Control, the portion of any Award under this Plan that has not
been actually paid to the Participant prior to the date of such resignation or other termination of employment shall be forfeited,
except that the Award Committee, in its discretion, may pay all or part of the amount that remains payable under an Award upon
the disability or death of the Participant in accordance with such rules or procedures established by the Award Committee provided,
however, that any amount of the Award payment that the Award Committee determines to pay shall be paid no later than March 15
of the year following the year that the Participant’s employment ends on account of disability or death. Notwithstanding
any provision of the Plan to the contrary, any Award paid to the Participant shall be subject to recovery by the Company in the
event that the Participant is terminated for Cause and shall, to the extent permitted by law, be subject to recovery from any amounts
owed by the Company to the Participant, including, but not limited to, offsetting any amounts owed under the Plan to the Company
against any amounts otherwise owed to the Participant by the Company.

 

(d)              
If the Award Committee decides to pay all or part of an Award after the death of a Participant in accordance with this Article
5, the Participant may designate in writing one or more persons (“beneficiary”) to receive any unpaid portion of the
Participant’s Award upon the death of the Participant. By similar action, the Participant may designate a change of beneficiary
at any time, which change shall be effective only upon receipt by the Award Committee of said notice. The last such designation
form filed with the Award Committee prior to the Participant’s death shall control. The Award Committee may establish a form
or other requirements for such designation. If the Participant designates his spouse as a beneficiary, the divorce of Participant
shall automatically revoke that designation of his spouse as beneficiary except to the extent otherwise provided in a subsequent
beneficiary designation filed by the Participant with the Award Committee. In the absence of a written designation, or in the event
the Participant dies without a beneficiary surviving him, any amount which would otherwise be payable on account of his death shall
be paid to the surviving spouse of the Participant or if none, to the Participant’s estate. A beneficiary of a Participant
shall have no interest or rights hereunder during the lifetime of the Participant.

    	 	8	 

     

    

Article 6.                
Administrative Provisions

 

(a)                    
The Plan was approved by the Board on April 29, 2020 to be effective as of January 1, 2020 for all services provided
by Participants in 2020.

 

(b)                    
Unless the Board provides otherwise, the Plan shall be administered and interpreted by the Award Committee, which has been
provided absolute authority hereunder to administer the Plan, subject to the limitation on the authority of the Chief Executive
Officer set forth in the definition of Award Committee above. The Board and its members, the members of the Award Committee and
any other individual who may, from time to time, have been delegated responsibility with respect to the administration of this
Plan (collectively, “Authorized Persons”), shall have the full authority, discretion and power necessary or desirable
to administer and interpret this Plan, in accordance with the Plan terms. Benefits under the Plan shall be payable only if the
Authorized Persons in their respective sole and absolute discretion determine that any such benefits are properly payable under
the Plan. Without in any way limiting the foregoing, all Authorized Persons shall have complete authority, sole discretion and
power to: (i) determine the Participants; (ii) determine the amount of the Award for each Participant; (iii) interpret the provisions
of this Plan and any other documentation used in connection with this Plan, including documentation specifying individual Awards
and the like; (iv) establish and interpret rules, regulations and procedures (written or by practice) for the administration of
the Plan; (v) determine which entity is responsible for making Award payments; (vi) determine the effect, if any, the transfer
of a Participant’s service location from one jurisdiction to another will have on an outstanding Award; and (vii) make all
other determinations and take all other actions necessary or desirable for the administration or interpretation of this Plan. The
express grant in the Plan of any specific power to Authorized Persons shall not be construed as limiting any power or authority
of such Authorized Person. All actions, decisions and interpretations of the Authorized Persons shall be final, conclusive and
binding on all parties. All expenses of administering the Plan shall be borne by the Company.

 

(c)                    
Nothing in this Plan shall be deemed by implication, action or otherwise to constitute a contract of employment or otherwise
to impose any limitation on any right of the Company to terminate a Participant’s employment at any time for any or no reason.

 

(d)                    
 A Participant shall have no right to anticipate, alienate, sell, transfer, assign, pledge or encumber any right to receive
any Award made under the Plan, nor will any Participant have any lien on any assets of the Company by reason of any Award made
under the Plan.

 

(e)                    
The Company shall have the right to deduct or withhold, or require a Participant to remit to the Company, any taxes required
by law to be withheld from Awards made under this Plan.

 

(f)                     
The Plan may be amended, suspended or terminated at any time and from time to time, by action of the Board or the Award
Committee, including, without limitation, by way of an amendment to eliminate Award payments during any calendar year, as determined
by any of the Authorized Persons in its sole discretion, but in any event, the Plan will be terminated no later than upon the last
date the Company pays all Participants any and all amounts that may due under the Plan and no amounts remain due and payable under
the Plan to any person as determined by Award Committee. The preceding sentence to the contrary notwithstanding, on and after a
Change in Control, no amendment, suspension or termination of the Plan that adversely affects the rights of a Participant (or the
beneficiary of a deceased Participant who has not received payment of an amount approved by the Award Committee under Article 5),
shall be effective without the written consent of that Participant or beneficiary.

 

(g)                    
The adoption of the Plan does not imply any commitment to continue to maintain the Plan, or any modified version of the
Plan, or any other plan for incentive compensation for such Participant for any period of time. Neither the adoption of this Plan,
its operation, nor any documents describing or referring to this Plan (or any part thereof) shall confer upon any employee any
right to continue in the employ of the Company or in any way affect any right and power of the Company to terminate the employment
of any employee at any time without assigning a reason therefor.

    	 	9	 

     

    

(h)                    
This Plan, insofar as it provides for Awards, shall be unfunded, and the Company shall not be required to segregate any
assets that may at any time be represented by Awards under the Plan. Any liability of the Company to any person with respect to
any Awards under this Plan shall be based solely upon any contractual obligations which may be created pursuant to this Plan. No
such obligation of the Company shall be deemed to be secured by any pledge of, or other encumbrance on, any property of the Company.

 

(i)                      
In order to be effective, any amendment of this Plan or any Award must be in writing and made by the Award Committee. No
oral statement, representation, written presentation or the like shall have the effect of amending or modifying this Plan or any
Award, or otherwise have any binding effect on the Company, the Board, the Chief Executive, the Award Committee or any individual
who has been delegated authority to administer this Plan.

 

(j)                      
The Plan shall be construed in accordance with and governed by the substantive laws of the State of Delaware, without regard
to principles of conflicts of law.

 

(k)                    
In case any provision of the Plan shall be held illegal or void, such illegality or invalidity shall not affect the remaining
provisions of this Plan, but shall be fully severable, and the Plan shall be construed and enforced as if said illegal or invalid
provisions had never been inserted herein.

 

(l)                      
Except for their own gross negligence or gross misconduct regarding the performance of the duties specifically assigned
to them under, or their willful breach of the terms of this Plan, the Company (and its affiliates), Board and its members, the
Award Committee and its members, and any other entity or individual administering any aspect of this Plan shall be held harmless
by the Participants and their respective representatives, heirs, successors, and assigns, against liability or losses occurring
by reason of any act or omission under the Plan.

 

(m)                  
Should the Company effect one or more stock dividends, stock splits, subdivisions or consolidations of Shares or other similar
changes in capitalization, then the terms of outstanding Awards shall be adjusted as the Award Committee shall determine to be
equitably required. Any determination made under this Article 6(m) by the Award Committee shall be final and conclusive. The issuance
by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, for cash or property,
or for labor or services, either upon direct sale or upon the exercise of rights or warrants to subscribe therefor, or upon conversion
of shares or obligations of the Company convertible into such shares or other securities, shall not affect, and no adjustment by
reason thereof shall be made with respect to, Awards.

 

Executed on the 29 day of April, 2020 to
be effective as of the 1st day of January, 2020.

 

	 	MercadoLibre, Inc.
	 	 	 
	 	 	 
	 	 	 
	 	By:	 

 

 

 

10

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