Document:

EXHIBIT
10.22

 

RIGEL PHARMACEUTICALS, INC.

 

2000 NON-EMPLOYEE DIRECTORS’ STOCK
OPTION PLAN

 

ADOPTED AUGUST 18, 2000

APPROVED
BY STOCKHOLDERS SEPTEMBER 11, 2000

EFFECTIVE
DATE: DECEMBER 4, 2000

AMENDED
AND RESTATED APRIL 24, 2003

AMENDED
AND RESTATED JUNE 20, 2003

APPROVED
BY STOCKHOLDERS JUNE 20, 2003

AMENDED
AND RESTATED APRIL 22, 2005

APPROVED
BY STOCKHOLDERS JUNE 2, 2005

AMENDED
AND RESTATED JANUARY 31, 2007

APPROVED
BY STOCKHOLDERS MAY 31, 2007

AMENDED
AND RESTATED SEPTEMBER 18, 2007

AMENDED
AND RESTATED FEBRUARY 21, 2008

APPROVED
BY STOCKHOLDERS MAY 29, 2008

AMENDED
AND RESTATED MAY 19, 2009

AMENDED
AND RESTATED JANUARY 28, 2010

 

1.             PURPOSES.

 

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

 

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

 

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

 

 

2.             DEFINITIONS.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(iii)         the closing of:

 

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

 

 

combined
voting power of the voting securities of the Company outstanding immediately
before such merger or consolidation; or

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(j)          “Continuous
Service”
means that the Optionholder’s service with the Company or an Affiliate, whether
as an Employee, Director or Consultant, is not interrupted or terminated. 

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

(t)          “Officer” means a person who is an officer of the
Company within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

 

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

 

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

 

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

 

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

 

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

 

 

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

 

3.             ADMINISTRATION.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

4.             SHARES SUBJECT TO THE PLAN.

 

(a)          Share Reserve. Subject to the provisions of Section 11
relating to adjustments upon changes in the Common Stock, the Common Stock that
may be issued pursuant to Options shall not exceed in the aggregate 535,000
shares of Common Stock, which number consists of (i) 33,333 shares of
Common stock initially reserved for issuance under the Plan plus (ii) 66,667
shares of Common stock approved by the Board in April 2003 and
subsequently approved by the Company’s stockholders plus (iii) 225,000
shares of Common Stock approved by the Board in April 2005 and
subsequently approved by the Company’s stockholders plus (iv) 110,000
shares of Common Stock approved by the Board in January 2007 and
subsequently approved by the Company’s stockholders plus (v) 100,000
shares of Common Stock approved by the Board in February 2008 and
subsequently approved by the Company’s stockholders.

 

(b)          Reversion of Shares to the Share
Reserve. If any
Option shall for any reason expire or otherwise terminate, in whole or in part,
without having been exercised in full, the shares of Common Stock not acquired
under such Option shall revert to and again become available for issuance under
the Plan. If any shares subject to an Option are not delivered to an
Optionholder because the Option is exercised through a reduction of shares
subject to the Option ( i.e ., “net
exercised”), the number of shares that are not delivered to the Optionholder
shall not remain available for issuance under the Plan. If any shares subject
to an Option are not delivered to an Optionholder because such shares are
withheld in satisfaction of the withholding of taxes incurred in connection
with the exercise of an Option, the number of shares that are not delivered to
the Optionholder shall not remain available for subsequent issuance under the
Plan. If the exercise price of any Option is satisfied by tendering shares of
Common Stock held by the Optionholder (either by actual delivery or
attestation), then the number of shares so tendered shall not remain available
for subsequent issuance under the Plan.

 

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

 

 

5.             ELIGIBILITY.

 

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

 

6.             NON-DISCRETIONARY GRANTS.

 

(a)           Initial Grants. Without any further action of the Board,
each person who is elected or appointed for the first time to be a Non-Employee
Director automatically shall, upon the date of his or her initial election or
appointment to be a Non-Employee Director by the Board or stockholders of the
Company, be granted an Initial Grant to purchase twenty-five thousand (25,000)
shares of Common Stock on the terms and conditions set forth herein.

 

(b)           Annual Grants. Without any further action of the Board,
a Non-Employee Director shall be granted an Annual Grant as follows: On the day
following each Annual Meeting commencing with the Annual Meeting in 2010, each
person who is then a Non-Employee Director automatically shall be granted an
Annual Grant to purchase fifteen thousand (15,000) shares of Common Stock on
the terms and conditions set forth herein;
provided, however, that if the person has not been serving as a
Non-Employee Director for the entire period since the preceding Annual Meeting,
then the number of shares subject to the Annual Grant shall be reduced pro rata
for each full quarter prior to the date of grant during which such person did
not serve as a Non-Employee Director.

 

7.             OPTION PROVISIONS.

 

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

 

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

 

(b)           Exercise Price. The exercise price of each Option shall
be one hundred percent (100%) of the Fair Market Value of the stock subject to
the Option on the date the Option is granted. Notwithstanding the foregoing, an
Option may be granted with an exercise price lower 

 

 

than that set
forth in the preceding sentence if such Option is granted pursuant to an
assumption or substitution for another option in a manner satisfying the
provisions of Section 424(a) of the Code.

 

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

 

(i)            By cash or check.

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

(f)            Vesting Schedule.

 

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

 

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

 

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

 

 

at which the
Optionholder is first scheduled to be considered for election to be a
Non-Employee Director by the stockholders of the Company.

 

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

 

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

 

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

 

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

 

(j)            Death of Optionholder. In the event (i) an Optionholder’s
Continuous Service terminates as a result of the Optionholder’s death or (ii) the
Optionholder dies within the three-month period after the termination of the
Optionholder’s Continuous Service for a reason other 

 

 

than death, then
the Option may be exercised (to the extent the Optionholder was entitled to
exercise the Option as of the date of death) by the Optionholder’s estate, by a
person who acquired the right to exercise the Option by bequest or inheritance
or by a person designated to exercise the Option upon the Optionholder’s death,
but only within the period ending on the earlier of (1) the date eighteen
(18) months following the date of death or (2) the expiration of the term
of such Option as set forth in the Option Agreement. If, after death, the
Option is not exercised within the time specified herein, the Option shall
terminate.

 

8.             COVENANTS OF THE COMPANY.

 

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

 

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

 

9.             USE OF PROCEEDS FROM STOCK.

 

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

 

10.          MISCELLANEOUS.

 

(a)           Stockholder Rights. No Optionholder shall be deemed to be
the holder of, or to have any of the rights of a holder with respect to, any
shares subject to such Option unless and 

 

 

until such
Optionholder has satisfied all requirements for exercise of the Option pursuant
to its terms.

 

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

 

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

 

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

 

 

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

 

11.          ADJUSTMENTS UPON CHANGES IN STOCK.

 

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

 

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

 

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

 

 

12.          AMENDMENT OF THE PLAN AND OPTIONS.

 

(a)           Amendment of Plan. The Board at any time, and from time to
time, may amend the Plan. However, except as provided in Section 11
relating to adjustments upon changes in stock, no amendment shall be effective
unless approved by the stockholders of the Company to the extent stockholder
approval is necessary to satisfy the requirements of Rule 16b-3 or any
Nasdaq or securities exchange listing requirements.

 

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

 

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

 

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

 

13.          TERMINATION OR SUSPENSION OF THE
PLAN.

 

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

 

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

 

 

14.          EFFECTIVE DATE OF PLAN.

 

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

 

15.          CHOICE OF LAW.

 

All questions concerning the construction, validity and interpretation
of this Plan shall be governed by the law of the State of Delaware, without
regard to such state’s conflict of laws rules.EXHIBIT 10.25

 

RIGEL PHARMACEUTICALS, INC.

 

2000 EMPLOYEE STOCK PURCHASE PLAN

 

APPROVED BY THE BOARD OF DIRECTORS AUGUST 18, 2000

APPROVED BY STOCKHOLDERS SEPTEMBER 11, 2000

AMENDED AND RESTATED APRIL 24, 2003

APPROVED BY STOCKHOLDERS JUNE 20, 2003

AMENDED JANUARY 31, 2007

APPROVED BY STOCKHOLDERS MAY 31, 2007

AMENDED BY THE COMPENSATION COMMITTEE NOVEMBER 13, 2008

AMENDED BY THE COMPENSATION COMMITTEE JANUARY 20, 2010

 

1.             PURPOSE.

 

(a)           The purpose of this 2000
Employee Stock Purchase Plan (the “Plan”) is to provide a means by which
employees of Rigel Pharmaceuticals, Inc. (the “Company”) and its
Affiliates, as defined in subparagraph 1(b), that are designated as provided in
subparagraph 2(b), may be given an opportunity to purchase common stock of the
Company (the “Common Stock”).

 

(b)           The word “Affiliate” as used
in the Plan means any parent corporation or subsidiary corporation of the
Company, as those terms are defined in Sections 424(e) and (f),
respectively, of the Internal Revenue Code of 1986, as amended (the “Code”).

 

(c)           The Company, by means of the
Plan, seeks to retain the services of its employees, to secure and retain the
services of new employees, and to provide incentives for such persons to exert
maximum efforts for the success of the Company.

 

(d)           The Company intends that the
rights to purchase stock of the Company granted under the Plan be considered
options issued under an “employee stock purchase plan” as that term is defined
in Section 423(b) of the Code.

 

2.             ADMINISTRATION.

 

(a)           The Plan shall be
administered by the Board of Directors (the “Board”) of the Company unless and
until the Board delegates administration to a Committee, as provided in
subparagraph 2(c).  Whether or not the
Board has delegated administration, the Board shall have the final power to
determine all questions of policy and expediency that may arise in the
administration of the Plan.

 

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

 

1

 

(i)                                    To determine
when and how rights to purchase stock of the Company shall be granted and the
provisions of each offering of such rights (which need not be identical).

 

(ii)                                To designate
from time to time which Affiliates of the Company shall be eligible to
participate in the Plan.

 

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

 

(iv)                               To amend the
Plan as provided in paragraph 13.

 

(v)                                   To terminate or
suspend the Plan as provided in paragraph 15.

 

(vi)                               Generally, to
exercise such powers and to perform such acts as the Board deems necessary or
expedient to promote the best interests of the Company and its Affiliates and
to carry out the intent that the Plan be treated as an “employee stock purchase
plan” within the meaning of Section 423 of the Code.

 

(c)           The Board may delegate
administration of the Plan to a Committee composed of not fewer than two (2) members
of the Board (the “Committee”).  If
administration is delegated to a Committee, the Committee shall have, in
connection with the administration of the Plan, the powers theretofore
possessed by the Board, subject, however, to such resolutions, not inconsistent
with the provisions of the Plan, as may be adopted from time to time by the
Board.  The Board may abolish the
Committee at any time and revest in the Board the administration of the Plan.

 

3.             SHARES
SUBJECT TO THE PLAN.

 

(a)           Subject to the provisions of
paragraph 12 relating to adjustments upon changes in stock, the Common Stock
that may be sold pursuant to rights granted under the Plan shall not exceed in
the aggregate 464,062  shares of
Common Stock, plus an annual increase to be added on the first seven (7) anniversaries
of the Effective Date of the Plan ending on and including the anniversary of
the Effective Date in 2007, equal to the least of (i) one
percent (1%) of the total number of shares of Common Stock outstanding on such
anniversary date, (ii) 88,888 shares, or (iii) a number of shares
determined by the Board prior to the anniversary date.  In addition, an additional 1,500,000 shares
shall be made available under the Plan on the first date of the next Offering
that commences on or after July 1, 2007. 
If any right granted under the Plan shall for any reason terminate
without having been exercised, the Common Stock not purchased under such right
shall again become available for the Plan.

 

(b)           The stock subject to the
Plan may be unissued shares or reacquired shares, bought on the market or
otherwise.

 

2

 

4.             GRANT
OF RIGHTS; OFFERING.

 

The
Board or the Committee may from time to time grant or provide for the grant of
rights to purchase Common Stock of the Company under the Plan to eligible
employees (an “Offering”) on a date or dates (the “Offering Date(s)”) selected
by the Board or the Committee.  Each
Offering shall be in such form and shall contain such terms and conditions as
the Board or the Committee shall deem appropriate, which shall comply with the
requirements of Section 423(b)(5) of the Code that all employees
granted rights to purchase stock under the Plan shall have the same rights and
privileges.  The terms and conditions of
an Offering shall be incorporated by reference into the Plan and treated as part
of the Plan.  The provisions of separate
Offerings need not be identical, but each Offering shall include (through
incorporation of the provisions of this Plan by reference in the document
comprising the Offering or otherwise) the period during which the Offering
shall be effective, which period shall not exceed twenty-seven (27) months
beginning with the Offering Date, and the substance of the provisions contained
in paragraphs 5 through 8, inclusive.

 

5.             ELIGIBILITY.

 

(a)           Rights may be granted only
to employees of the Company or, as the Board or the Committee may designate as
provided in subparagraph 2(b), to employees of any Affiliate of the
Company.  Except as provided in
subparagraph 5(b), an employee of the Company or any Affiliate shall not be
eligible to be granted rights under the Plan unless, on the Offering Date, such
employee has been in the employ of the Company or any Affiliate for such
continuous period preceding such grant as the Board or the Committee may
require, but in no event shall the required period of continuous employment be
greater than two (2) years.  In
addition, unless otherwise determined by the Board or the Committee and set
forth in the terms of the applicable Offering, no employee of the Company or
any Affiliate shall be eligible to be granted rights under the Plan, unless, on
the Offering Date, such employee’s customary employment with the Company or
such Affiliate is for at least twenty (20) hours per week and at least five (5) months
per calendar year.

 

(b)           The Board or the Committee
may provide that each person who, during the course of an Offering, first
becomes an eligible employee of the Company or designated Affiliate will, on a
date or dates specified in the Offering which coincides with the day on which
such person becomes an eligible employee or occurs thereafter, receive a right
under that Offering, which right shall thereafter be deemed to be a part of
that Offering.  Such right shall have the
same characteristics as any rights originally granted under that Offering, as
described herein, except that:

 

(i)            the date on which such right
is granted shall be the “Offering Date” of such right for all purposes,
including determination of the exercise price of such right;

 

(ii)           the period of the Offering
with respect to such right shall begin on its Offering Date and end coincident
with the end of such Offering; and

 

3

 

(iii)          the Board or the Committee
may provide that if such person first becomes an eligible employee within a specified
period of time before the end of the Offering, he or she will not receive any
right under that Offering.

 

(c)           No employee shall be
eligible for the grant of any rights under the Plan if, immediately after any
such rights are granted, such employee owns stock possessing five percent (5%)
or more of the total combined voting power or value of all classes of stock of
the Company or of any Affiliate.  For
purposes of this subparagraph 5(c), the rules of Section 424(d) of
the Code shall apply in determining the stock ownership of any employee, and
stock which such employee may purchase under all outstanding rights and options
shall be treated as stock owned by such employee.

 

(d)           An eligible employee may be
granted rights under the Plan only if such rights, together with any other
rights granted under “employee stock purchase plans” of the Company and any
Affiliates, as specified by Section 423(b)(8) of the Code, do not
permit such employee’s rights to purchase stock of the Company or any Affiliate
to accrue at a rate which exceeds twenty-five thousand dollars ($25,000) of
fair market value of such stock (determined at the time such rights are
granted) for each calendar year in which such rights are outstanding at any
time.

 

(e)           Officers of the Company and
any designated Affiliate shall be eligible to participate in Offerings under
the Plan; provided, however, that the Board may
provide in an Offering that certain employees who are highly compensated
employees within the meaning of Section 423(b)(4)(D) of the Code
shall not be eligible to participate.

 

6.             RIGHTS;
PURCHASE PRICE.

 

(a)           On each Offering Date, each
eligible employee, pursuant to an Offering made under the Plan, shall be
granted the right to purchase up to the number of shares of Common Stock of the
Company purchasable with a percentage designated by the Board or the Committee
not exceeding fifteen percent (15%) of such employee’s Earnings (as defined in
subparagraph 7(a)) during the period which begins on the Offering Date (or such
later date as the Board or the Committee determines for a particular Offering)
and ends on the date stated in the Offering, which date shall be no later than
the end of the Offering.  The Board or
the Committee shall establish one or more dates during an Offering (the “Purchase
Date(s)”) on which rights granted under the Plan shall be exercised and
purchases of Common Stock carried out in accordance with such Offering.

 

(b)           In connection with each
Offering made under the Plan, the Board or the Committee may specify a maximum
number of shares that may be purchased by any employee as well as a maximum
aggregate number of shares that may be purchased by all eligible employees
pursuant to such Offering.  In addition,
in connection with each Offering that contains more than one Purchase Date, the
Board or the Committee may specify a maximum aggregate number of shares which
may be purchased by all eligible employees on any given Purchase Date under the
Offering.  If the aggregate purchase of
shares upon exercise of rights granted under the Offering would exceed any such
maximum aggregate number, the Board or the Committee shall make a 

 

4

 

pro rata allocation of the
shares available in as nearly a uniform manner as shall be practicable and as
it shall deem to be equitable.

 

(c)           The purchase price of stock
acquired pursuant to rights granted under the Plan shall be not less than the
lesser of:

 

(i)            an amount equal to
eighty-five percent (85%) of the fair market value of the stock on the Offering
Date; or

 

(ii)           an amount equal to
eighty-five percent (85%) of the fair market value of the stock on the Purchase
Date.

 

7.             PARTICIPATION;
WITHDRAWAL; TERMINATION.

 

(a)           An eligible employee may
become a participant in the Plan pursuant to an Offering by delivering a
participation agreement to the Company within the time specified in the
Offering, in such form as the Company provides. 
Each such agreement shall authorize payroll deductions of up to the maximum
percentage specified by the Board or the Committee of such employee’s Earnings
during the Offering.  “Earnings” is
defined as an employee’s wages (including amounts thereof elected to be
deferred by the employee, that would otherwise have been paid, under any
arrangement established by the Company that is intended to comply with Section 125,
Section 401(k), Section 402(h) or Section 403(b) of
the Code or that provides non-qualified deferred compensation), which shall
include overtime pay, but shall exclude profit sharing, bonuses, incentive pay,
commissions or other remuneration paid directly to the employee, the cost of
employee benefits paid for by the Company or an Affiliate, education or tuition
reimbursements, imputed income arising under any group insurance or benefit
program, traveling expenses, business and moving expense reimbursements, income
received in connection with stock options, contributions made by the Company or
an Affiliate under any employee benefit plan, and similar items of
compensation, as determined by the Board or the Committee.  The payroll deductions made for each
participant shall be credited to an account for such participant under the Plan
and shall be deposited with the general funds of the Company.  A participant may reduce (including to zero)
or increase such payroll deductions, and an eligible employee may begin such
payroll deductions, after the beginning of any Offering only as provided for in
the Offering.  A participant may make
additional payments into his or her account only if specifically provided for in
the Offering and only if the participant has not had the maximum amount
withheld during the Offering.

 

(b)           At any time during an
Offering, a participant may terminate his or her payroll deductions under the
Plan and withdraw from the Offering by delivering to the Company a notice of
withdrawal in such form as the Company provides.  Such withdrawal may be elected at any time
prior to the end of the Offering except as provided by the Board or the
Committee in the Offering.  Upon such
withdrawal from the Offering by a participant, the Company shall distribute to
such participant all of his or her accumulated payroll deductions (reduced to
the extent, if any, such deductions have been used to acquire stock for the
participant) under the Offering, without interest, and such participant’s
interest in that Offering shall be automatically terminated.  A participant’s withdrawal from an Offering
will have no effect upon such participant’s eligibility 

 

5

 

to participate in any other
Offerings under the Plan but such participant will be required to deliver a new
participation agreement in order to participate in subsequent Offerings under
the Plan.

 

(c)           Rights granted pursuant to
any Offering under the Plan shall terminate immediately upon cessation of any
participating employee’s employment with the Company and any designated
Affiliate, for any reason, and the Company shall distribute to such terminated
employee all of his or her accumulated payroll deductions (reduced to the
extent, if any, such deductions have been used to acquire stock for the
terminated employee), under the Offering, without interest.

 

(d)           Rights granted under the
Plan shall not be transferable by a participant otherwise than by will or the
laws of descent and distribution, or by a beneficiary designation as provided
in paragraph 14 and, otherwise during his or her lifetime, shall be exercisable
only by the person to whom such rights are granted.

 

8.             EXERCISE.

 

(a)           On each Purchase Date
specified therefor in the relevant Offering, each participant’s accumulated
payroll deductions and other additional payments specifically provided for in
the Offering (without any increase for interest) will be applied to the
purchase of whole shares of stock of the Company, up to the maximum number of
shares permitted pursuant to the terms of the Plan and the applicable Offering,
at the purchase price specified in the Offering.  No fractional shares shall be issued upon the
exercise of rights granted under the Plan. 
The amount, if any, of accumulated payroll deductions remaining in each
participant’s account after the purchase of shares which is less than the
amount required to purchase one share of stock on the final Purchase Date of an
Offering shall be held in each such participant’s account for the purchase of
shares under the next Offering under the Plan, unless such participant
withdraws from such next Offering, as provided in subparagraph 7(b), or is no
longer eligible to be granted rights under the Plan, as provided in paragraph
5, in which case such amount shall be distributed to the participant after such
final Purchase Date, without interest. 
The amount, if any, of accumulated payroll deductions remaining in any
participant’s account after the purchase of shares which is equal to the amount
required to purchase whole shares of stock on the final Purchase Date of an
Offering shall be distributed in full to the participant after such Purchase
Date, without interest.

 

(b)           No rights granted under the
Plan may be exercised to any extent unless the shares to be issued upon such
exercise under the Plan (including rights granted thereunder) are covered by an
effective registration statement pursuant to the Securities Act of 1933, as
amended (the “Securities Act”) and the Plan is in material compliance with all
applicable state, foreign and other securities and other laws applicable to the
Plan.  If on a Purchase Date in any
Offering hereunder the Plan is not so registered or in such compliance, no
rights granted under the Plan or any Offering shall be exercised on such
Purchase Date, and the Purchase Date shall be delayed until the Plan is subject
to such an effective registration statement and such compliance, except that
the Purchase Date shall not be delayed more than twelve (12) months and the
Purchase Date shall in no event be more than twenty-seven (27) months from the
Offering Date.  If on the 

 

6

 

Purchase Date of any
Offering hereunder, as delayed to the maximum extent permissible, the Plan is
not registered and in such compliance, no rights granted under the Plan or any
Offering shall be exercised and all payroll deductions accumulated during the
Offering (reduced to the extent, if any, such deductions have been used to
acquire stock) shall be distributed to the participants, without interest.

 

9.             COVENANTS
OF THE COMPANY.

 

The Company shall seek to
obtain from each federal, state, foreign or other regulatory commission or
agency having jurisdiction over the Plan such authority as may be required to
issue and sell shares of stock upon exercise of the rights granted under the
Plan.  If, after reasonable efforts, the
Company is unable to obtain from any such regulatory commission or agency the
authority which counsel for the Company deems necessary for the lawful issuance
and sale of stock under the Plan, the Company shall be relieved from any
liability for failure to issue and sell stock upon exercise of such rights
unless and until such authority is obtained.

 

10.          USE OF PROCEEDS FROM STOCK.

 

Proceeds
from the sale of stock pursuant to rights granted under the Plan shall
constitute general funds of the Company.

 

11.          RIGHTS AS A STOCKHOLDER.

 

A
participant shall not be deemed to be the holder of, or to have any of the rights
of a holder with respect to, any shares subject to rights granted under the
Plan unless and until the participant’s shareholdings acquired upon exercise of
rights under the Plan are recorded in the books of the Company.

 

12.          ADJUSTMENTS UPON CHANGES IN STOCK.

 

(a)           If any change is made in the
stock subject to the Plan, or subject to any rights granted under the Plan, due
to a change in corporate capitalization and without the receipt of
consideration by the Company (through reincorporation, stock dividend, stock
split, reverse stock split, combination or reclassification of shares), the
Plan will be appropriately adjusted in the class(es) and maximum number of
securities subject to the Plan pursuant to subsection 3(a), and the outstanding
rights will be appropriately adjusted in the class(es) and number of securities
and price per share of stock subject to such outstanding rights.  Such adjustments shall be made by the Board,
the determination of which shall be final, binding and conclusive.

 

(b)           In the event of:  (1) a dissolution, liquidation or sale
of all or substantially all of the securities or assets of the Company, (2) a
merger or consolidation in which the Company is not the surviving corporation
or (3) a reverse merger in which the Company is the surviving corporation
but the shares of Common Stock outstanding immediately preceding the merger are
converted by virtue of the merger into other property, whether in the form of
securities, cash or otherwise, then any surviving corporation may assume outstanding
rights or substitute similar rights for those under the Plan.  In the event that no surviving corporation
assumes outstanding rights or substitutes similar rights therefor, participants’
accumulated payroll deductions shall be 

 

7

 

used to purchase Common
Stock immediately prior to the transaction described above and the participants’
rights under the ongoing Offering shall terminate immediately following such
purchase.

 

13.          AMENDMENT OF THE PLAN.

 

(a)           The Board at any time, and
from time to time, may amend the Plan. 
However, except as provided in paragraph 12 relating to adjustments upon
changes in stock, no amendment shall be effective unless approved by the stockholders
of the Company within twelve (12) months before or after the adoption of the
amendment, where the amendment will:

 

(i)            Increase the number of
shares reserved for rights under the Plan;

 

(ii)           Modify the provisions as to
eligibility for participation in the Plan (to the extent such modification
requires stockholder approval in order for the Plan to obtain employee stock
purchase plan treatment under Section 423 of the Code or to comply with
the requirements of Rule 16b-3 promulgated under the Securities Exchange
Act of 1934, as amended (“Rule 16b-3”)); or

 

(iii)         Modify the Plan in any other
way if such modification requires stockholder approval in order for the Plan to
obtain employee stock purchase plan treatment under Section 423 of the
Code or to comply with the requirements of Rule 16b-3.

 

It
is expressly contemplated that the Board may amend the Plan in any respect the
Board deems necessary or advisable to provide eligible employees with the
maximum benefits provided or to be provided under the provisions of the Code
and the regulations promulgated thereunder relating to employee stock purchase
plans and/or to bring the Plan and/or rights granted under it into compliance
therewith.

 

(b)           Rights and obligations under
any rights granted before amendment of the Plan shall not be impaired by any
amendment of the Plan, except with the consent of the person to whom such
rights were granted, or except as necessary to comply with any laws or
governmental regulations, or except as necessary to ensure that the Plan and/or
rights granted under the Plan comply with the requirements of Section 423
of the Code.

 

14.          DESIGNATION OF BENEFICIARY.

 

(a)           A participant may file a
written designation of a beneficiary who is to receive any shares and cash, if
any, from the participant’s account under the Plan in the event of such
participant’s death subsequent to the end of an Offering but prior to delivery
to the participant of such shares and cash. 
In addition, a participant may file a written designation of a
beneficiary who is to receive any cash from the participant’s account under the
Plan in the event of such participant’s death during an Offering.

 

(b)           Such designation of
beneficiary may be changed by the participant at any time by written
notice.  In the event of the death of a
participant and in the absence of a beneficiary validly designated under the
Plan who is living at the time of such participant’s death, the 

 

8

 

Company shall deliver such
shares and/or cash to the executor or administrator of the estate of the
participant, or if no such executor or administrator has been appointed (to the
knowledge of the Company), the Company, in its sole discretion, may deliver
such shares and/or cash to the spouse or to any one or more dependents or
relatives of the participant, or if no spouse, dependent or relative is known
to the Company, then to such other person as the Company may designate.

 

15.          TERMINATION OR SUSPENSION OF THE
PLAN.

 

(a)           The Board in its discretion,
may suspend or terminate the Plan at any time. 
No rights may be granted under the Plan while the Plan is suspended or
after it is terminated.

 

(b)           Rights and obligations under
any rights granted while the Plan is in effect shall not be altered or impaired
by suspension or termination of the Plan, except as expressly provided in the
Plan or with the consent of the person to whom such rights were granted, or
except as necessary to comply with any laws or governmental regulation, or
except as necessary to ensure that the Plan and/or rights granted under the
Plan comply with the requirements of Section 423 of the Code.

 

(c)           Notwithstanding the
foregoing, the Plan shall terminate and no rights may be granted under the Plan
after December 31, 2020.

 

16.          EFFECTIVE DATE OF PLAN.

 

The
Plan shall become effective simultaneously with the effectiveness of the
Company’s registration statement under the Securities Act with respect to the
initial public offering of shares of the Company’s Common Stock (the “Effective
Date”), but no rights granted under the Plan shall be exercised unless and
until the Plan has been approved by the stockholders of the Company within
twelve (12) months before or after the date the Plan is adopted by the Board,
which date may be prior to the Effective Date.

 

17.          MISCELLANEOUS PROVISIONS.

 

(a)           The Plan and Offering do not
constitute an employment contract. 
Nothing in the Plan or in the Offering shall in any way alter the at
will nature of a participant’s employment or 
be deemed to create in any way whatsoever any obligation on the part of
any participant to continue in the employ of the Company or any Affiliate, or
on the part of the Company or any Affiliate to continue the employment of a
participant.

 

(b)           The provisions of the Plan
shall be governed by the laws of the State of Delaware without resort to that
state’s conflicts of laws rules.

 

9

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