<SEC-DOCUMENT>0001171843-16-010233.txt : 20160523
<SEC-HEADER>0001171843-16-010233.hdr.sgml : 20160523
<ACCEPTANCE-DATETIME>20160520182733
ACCESSION NUMBER:		0001171843-16-010233
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20160224
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Submission of Matters to a Vote of Security Holders
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20160523
DATE AS OF CHANGE:		20160520

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			XOMA Corp
		CENTRAL INDEX KEY:			0000791908
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				942756657
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14710
		FILM NUMBER:		161667526

	BUSINESS ADDRESS:	
		STREET 1:		2910 SEVENTH ST
		CITY:			BERKELEY
		STATE:			CA
		ZIP:			94710
		BUSINESS PHONE:		5106441170

	MAIL ADDRESS:	
		STREET 1:		2910 SEVENTH ST
		CITY:			BERKELEY
		STATE:			CA
		ZIP:			94710

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	XOMA LTD /DE/
		DATE OF NAME CHANGE:	19990107

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	XOMA CORP /DE/
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k_052016.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">UNITED STATES</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SECURITIES AND EXCHANGE COMMISSION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Washington, D.C. 20549</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">FORM 8-K</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">CURRENT REPORT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Pursuant to Section 13 or 15(d) of the</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Securities Exchange Act of 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported):&nbsp;&nbsp;February
24, 2016</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>XOMA CORPORATION</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
its charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>DELAWARE</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(State or other jurisdiction of incorporation)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="background-color: white">
    <TD STYLE="width: 50%; text-decoration: underline; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>0-14710</U></FONT></TD>
    <TD STYLE="width: 50%; text-decoration: underline; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>52-2154066</U></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Commission File Number)</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(IRS Employer Identification No.)</FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="text-decoration: underline"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>2910 Seventh Street, Berkeley, California</U></FONT></TD>
    <TD STYLE="text-decoration: underline; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>94710</U></FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Address of principal executive offices)</FONT></TD>
    <TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Zip Code)</FONT></TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Registrant's telephone number, including area code</FONT></TD>
    <TD STYLE="text-decoration: underline; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>(510) 204-7200</U></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>Not applicable</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Former name or former address, if changed
since last report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 29.1pt 0pt 9pt">Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see
General Instruction A.2 below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 6%; text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt">o</FONT></TD>
    <TD STYLE="width: 94%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Written communications pursuant to Rule&nbsp;425 under the Securities&nbsp;Act (17 CFR 230.425)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt">o</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt">o</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR.14d-2(b))</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Wingdings; font-size: 10pt">o</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 11%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item 5.02&nbsp;</B></FONT></TD>
    <TD STYLE="width: 89%; text-decoration: underline"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers.</U></B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>2010 Long Term Incentive and Stock
Award Plan</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 24, 2016, the Compensation
Committee of the Board of Directors (the &ldquo;Board&rdquo;) (the &ldquo;Compensation Committee&rdquo;) of XOMA Corporation (the
&ldquo;Company&rdquo;) recommended to the Board, and on February 25, 2016, the Board adopted, subject to stockholder approval,
an amendment to the Company&rsquo;s 2010 Long Term Incentive and Stock Award Plan (the &ldquo;2010 Plan&rdquo;). At the 2016 Annual
Meeting of Stockholders of the Company, held on May 19, 2016 (the &ldquo;Annual Meeting&rdquo;), the Company&rsquo;s stockholders
voted on and approved the amendment to the 2010 Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The amendment (a)&nbsp;increases the number
of shares of Common Stock issuable over the term of the plan by 3,400,000, to 22,171,206 shares in the aggregate; (b)&nbsp;provides
that, for each stock appreciation right, restricted share, restricted stock unit, performance share, performance unit, divided
equivalent or other stock-based award issued, the number of available shares under the plan will be reduced by 1.08 shares; and
(c)&nbsp;increases the number of shares of common stock issuable under the plan as incentive stock options, or ISOs, by an additional
3,400,000 to 11,500,000 shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">A summary of the 2010 Plan is set forth
in the Company&rsquo;s proxy statement filed with the Securities and Exchange Commission on April 8, 2016. The description of the
amendment is qualified in its entirety by reference to the text of the 2010 Plan, which is filed as Exhibit&nbsp;10.1 hereto and
incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>2016 Incentive Compensation Plan</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 24, 2016, the Compensation
Committee approved the 2016 Incentive Compensation Plan (the &ldquo;2016 Bonus Plan&rdquo;) to replace the Company&rsquo;s CEO
Incentive Compensation Plan (the &ldquo;CICP&rdquo;), Management Incentive Compensation Plan (the &ldquo;MICP&rdquo;) and Bonus
Compensation Plan (the &ldquo;BCP&rdquo; and, together with the CICP and the MICP, the &ldquo;Previous Plans&rdquo;). The 2016
Bonus Plan provides XOMA&rsquo;s executive officers and other eligible employees the opportunity to earn bonuses based on the level
of achievement by XOMA of certain corporate achievement goals, or &ldquo;CAGs&rdquo;, and on each participant&rsquo;s individual
performance during any performance period, which the Compensation Committee set to coincide with the calendar quarters from January
1, 2016 through December 31, 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Board has approved the CAGs and assigned
a weighting to each objective. All full-time employees at the beginning of a performance period are eligible to participate in
the 2016 Bonus Plan. Individual performance is assessed at the end of each quarter, and a performance score is determined by each
participant&rsquo;s immediate supervisor, or, in the case of the Chief Executive Officer, by the Board. The Compensation Committee
has set targets for each named executive officer, with weighting of corporate and individual goals, as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 68%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; border-bottom: Black 0.5pt solid"><B>Named Executive Officer</B></P></TD>
    <TD STYLE="width: 10%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><B>Target</B></P></TD>
    <TD STYLE="width: 11%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><B>Company
        Weighting</B></P></TD>
    <TD STYLE="width: 11%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; border-bottom: Black 0.5pt solid"><B>Individual
        Weighting</B></P></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">John Varian</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Chief Executive Officer </I></P></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">50%</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80%</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20%</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Tom Burns</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Vice President, Finance and Chief Financial Officer</I></P></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">35%</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80%</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20%</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">James Neal</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Senior Vice President, Finance and Chief Operating Officer</I></P></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40%</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80%</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20%</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Paul D. Rubin, M.D.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Senior Vice President, Research and Development and Chief
        Medical Officer</I></P></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">40%</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80%</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20%</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Chris Wells</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Vice President, Human Resources and Information Technology</I></P></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">35%</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">80%</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">20%</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Whereas, under the Previous Plans,
awards were paid annually based on the attainment of predetermined corporate and individual goals, employees and executive
officers now may receive quarterly payments based primarily on the attainment of corporate goals, with individual performance
as a secondary factor. XOMA believes that this new methodology for determining awards will serve to focus efforts on results
that will contribute to long-term value for XOMA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the 2016 Bonus Plan, the target percentage
is set at the beginning of each performance period, and payouts ranging from zero to 200% of target for each CAG, or from zero
to 150% for individual performance, are possible, depending on achievement. Bonus targets may be adjusted at the discretion of
the Compensation Committee, or by the Board in the case of the Chief Executive Officer, but are reviewed at least every two years
for ongoing market competitiveness.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The description of the 2016 Bonus Plan
contained herein does not purport to be complete and is qualified in its entirety by reference to the 2016 Bonus Plan, a copy of
which is attached hereto as Exhibit 10.2 and is incorporated by reference herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 11%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item 5.07&nbsp;</B></FONT></TD>
    <TD STYLE="width: 89%; text-decoration: underline"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Submission of Matters to a&nbsp;Vote of Security Holders.</U></B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">On May 19, 2016, the Company held its
Annual Meeting at its offices at 2910 Seventh Street, Berkeley, California, pursuant to notice duly given. Only stockholders of
record as of the close of business on March 28, 2016 were entitled to vote at the Annual Meeting. As of March 28, 2016, the record
date for the Annual Meeting, 120,367,541 shares of common stock of the Company were outstanding and entitled to vote at the Annual
Meeting, of which 82,590,754 shares of common stock of the Company were represented, in person or by proxy, constituting a quorum.
The final results of the stockholder vote on each proposal brought before the Annual Meeting were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(a) <B>Proposal 1</B>. Each of the seven
(7) nominees for election to the Board of Directors was elected to serve for a one-year term based upon the following votes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 36%; border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Name</B></FONT></TD>
    <TD STYLE="width: 20%; border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Votes For</B></FONT></TD>
    <TD STYLE="width: 20%; border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Votes Withheld</B></FONT></TD>
    <TD STYLE="width: 24%; border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Broker Non-Votes</B></FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">John Varian</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">27,630,236</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,234,085</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">53,726,433</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Patrick J. Scannon, M.D., Ph.D.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">27,789,853</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,074,468</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">53,726,433</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">W. Denman Van Ness</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">17,097,281</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">11,767,040</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">53,726,433</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Peter Barton Hutt</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">23,390,281</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5,474,040</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">53,726,433</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Joseph M. Limber</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">18,084,016</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,780,305</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">53,726,433</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Timothy P. Walbert</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">15,093,177</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">13,771,144</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">53,726,433</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jack L. Wyszomierski</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">17,984,533</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10,879,788</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">53,726,433</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(b) <B>Proposal 2</B>. The amendment to
the Company&rsquo;s Amended and Restated 2010 Long Term Incentive and Stock Award Plan was approved based upon the following votes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 75%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Votes for </FONT></TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">26,674,439</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Votes against </FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,702,211</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Abstentions </FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">487,671</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Broker non-votes </FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">53,726,433</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">(c) <B>Proposal 3</B>. The appointment
of Ernst&nbsp;&amp; Young LLP to act as the Company&rsquo;s independent registered public accounting firm for the 2016 fiscal year
was ratified based upon the following votes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 75%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Votes for </FONT></TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">78,596,426</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Votes against </FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2,445,157</FONT></TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Abstentions </FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1,549,171</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 11%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Item 9.01</B></FONT></TD>
    <TD STYLE="width: 89%; text-decoration: underline"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><U>Financial Statements and Exhibits.</U></B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Number</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Description</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.1</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2010 Long Term Incentive and Stock Award Plan.</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.2</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2016 Incentive Compensation Plan</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="background-color: white">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dated: May 20, 2016</FONT></TD>
    <TD COLSPAN="2"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">XOMA CORPORATION</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD STYLE="width: 51%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 24%">&nbsp;</TD>
    <TD STYLE="width: 20%">&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">/s/ Tom Burns</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Tom Burns</FONT></TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="background-color: white">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD NOWRAP><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Vice President, Finance and Chief Financial Officer</FONT></TD>
    <TD>&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>



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<FILENAME>exh_101.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<P STYLE="margin: 0; text-align: right"><B>Exhibit 10.1</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>XOMA CORPORATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AMENDED AND RESTATED</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>2010 LONG TERM INCENTIVE AND STOCK AWARD
PLAN</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</FONT></TD>
    <TD STYLE="font-size: 10pt; text-decoration: underline"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Purposes.</U></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The purposes of the XOMA Corporation Amended and Restated 2010
Long Term Incentive and Stock Award Plan are to advance the interests of XOMA Corporation and its stockholders by providing a means
to attract, retain, and motivate employees, consultants and directors of the Company, its Subsidiaries and Affiliates, to provide
for competitive compensation opportunities, to encourage long term service, to recognize individual contributions and reward achievement
of performance goals, and to promote the creation of long term value for stockholders by aligning the interests of such persons
with those of stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</FONT></TD>
    <TD STYLE="font-size: 10pt; text-decoration: underline"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Definitions.</U></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For purposes of this Plan, the following terms shall be defined
as set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a) &ldquo;Affiliate&rdquo; means any entity other than the
Company and its Subsidiaries that is designated by the Board or the Committee as a participating employer under this Plan;&nbsp;<U>provided</U>,&nbsp;<U>however</U>,
that the Company directly or indirectly owns at least 20% of the combined voting power of all classes of stock of such entity or
at least 20% of the ownership interests in such entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b) &ldquo;Award&rdquo; means any Option, SAR, Restricted Share,
Restricted Stock Unit, Performance Share, Performance Unit, Dividend Equivalent, or Other Stock-Based Award granted to an Eligible
Person under this Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(c) &ldquo;Award Agreement&rdquo; means any written agreement,
contract, or other instrument or document evidencing an Award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d) &ldquo;Beneficiary&rdquo; means the person, persons, trust
or trusts which have been designated by an Eligible Person in his or her most recent written beneficiary designation filed with
the Company to receive the benefits specified under this Plan upon the death of the Eligible Person, or, if there is no designated
Beneficiary or surviving designated Beneficiary, then the person, persons, trust or trusts entitled by will or the laws of descent
and distribution to receive such benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(e) &ldquo;Board&rdquo; means the Board of Directors of the
Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(f) &ldquo;Change in Control&rdquo; means the occurrence of
any of the following events:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(i) a merger, consolidation or acquisition in which
the Company is not the surviving or continuing entity, except for a transaction the principal purpose of which is to change the
jurisdiction of the Company&rsquo;s organization;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(ii) the sale, transfer or other disposition of
all or substantially all of the assets of the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(iii) any other reorganization or business combination
in which fifty percent (50%)&nbsp;or more of the Company&rsquo;s outstanding voting securities are transferred to different holders
in a single transaction or series of related transactions;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(iv) any approval by the stockholders of the Company
of a plan of complete liquidation of the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(v) any &ldquo;person&rdquo; (as such term is used
in Sections&nbsp;13(d) and 14(d) of the Exchange Act) becoming the &ldquo;beneficial owner&rdquo; (as defined in Rule&nbsp;13d-3
under the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%)&nbsp;of
the total voting power represented by the Company&rsquo;s then outstanding voting securities; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(vi) a change in the composition of the Board, as
a result of which fewer than a majority of the directors are Incumbent Directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(g) &ldquo;Code&rdquo; means the Internal Revenue Code of 1986,
as amended from time to time. References to any provision of the Code shall be deemed to include successor provisions thereto and
regulations thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(h) &ldquo;Committee&rdquo; means the Compensation Committee
of the Board, or such other Board committee or committees (which may include the entire Board) as may be designated by the Board
to administer all or any portion of this Plan;&nbsp;<U>provided&nbsp;</U>,&nbsp;<U>however&nbsp;</U>, that, unless otherwise determined
by the Board, a Committee shall consist of two or more directors of the Company, each of whom is a &ldquo;non-employee director&rdquo;
within the meaning of Rule 16b-3 under the Exchange Act, to the extent applicable, and each of whom is an &ldquo;outside director&rdquo;
within the meaning of Section&nbsp;162(m) of the Code, to the extent applicable;&nbsp;<U>provided</U>,&nbsp;<U>further</U>, that
the mere fact that a Committee shall fail to qualify under either of the foregoing requirements shall not invalidate any Award
made by such Committee which Award is otherwise validly made under this Plan. Different Committees may administer this Plan with
respect to different groups of Eligible Persons. As used herein, the singular &ldquo;Committee&rdquo; shall include the plural
&ldquo;Committees&rdquo; if applicable, except where the context requires otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(i) &ldquo;Company&rdquo; means XOMA Corporation, a Delaware
corporation, or any successor company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(j) &ldquo;Director&rdquo; means a member of the Board who is
not an employee of the Company, a Subsidiary or an Affiliate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(k) &ldquo;Dividend Equivalent&rdquo; means a right, granted
under Section&nbsp;5(g), to receive cash, Shares, or other property equal in value to dividends paid with respect to a specified
number of Shares. Dividend Equivalents may be awarded on a free-standing basis or in connection with another Award, and may be
paid currently or on a deferred basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(l) &ldquo;Effective Date&rdquo; means July&nbsp;21, 2010, contingent
on shareholder approval of this Plan on such date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(m) &ldquo;Eligible Person&rdquo; means (i)&nbsp;an employee
or consultant of the Company, a Subsidiary or an Affiliate, including any director who is an employee, or (ii)&nbsp;a Director.
Notwithstanding any provisions of this Plan to the contrary, an Award may be granted to an employee or consultant in connection
with his or her hiring or retention prior to the date the employee or consultant first performs services for the Company, a Subsidiary
or an Affiliate; <U>provided</U>,&nbsp;<U>however</U>, that any such Award shall not become vested or exercisable prior to the
date the employee or consultant first performs such services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(n) &ldquo;Exchange Act&rdquo; means the Securities Exchange
Act of 1934, as amended from time to time. References to any provision of the Exchange Act shall be deemed to include successor
provisions thereto and regulations thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(o) &ldquo;Fair Market Value&rdquo; means:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(i) if the Shares are not at the time listed or
admitted to trading on any stock exchange but are traded in the over-the-counter market, the fair market value shall be the closing
selling price per Share on the date in question, as such price is reported on The NASDAQ Global Market or any successor system;&nbsp;<U>provided&nbsp;</U>that
if there is no reported closing selling price for Shares on the date in question, then the closing selling price on the last preceding
date for which such quotation exists shall be determinative of fair market value;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(ii) if the Shares are at the time listed or admitted
to trading on any stock exchange, then the fair market value shall be the closing selling price per Share on the date in question
on the stock exchange determined by the Committee to be the primary market for the Shares, as such price is officially quoted on
such exchange;&nbsp;<U>provided&nbsp;</U>that if there is no reported sale of Shares on such exchange on the date in question,
then the fair market value shall be the closing selling price on the exchange on the last preceding date for which such quotation
exists; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(iii) if the Shares are at the time neither listed
nor admitted to trading on any stock exchange nor traded in the over-the-counter market (or if the Committee determines that the
value as determined pursuant to subsection (i)&nbsp;or (ii)&nbsp;above does not reflect fair market value), then the Committee
shall determine fair market value after taking into account such factors as it deems appropriate, including one or more independent
professional appraisals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(p) &ldquo;Incumbent Directors&rdquo; means directors who (i)&nbsp;are
directors of the Company as of the date hereof, (ii)&nbsp;are elected, or nominated for election, to the Board with the affirmative
votes of the directors of the Company as of the date hereof, or (iii)&nbsp;are elected, or nominated for election, to the Board
with the affirmative votes of at least a majority of those directors whose election or nomination was not in connection with any
transaction described in subsections&nbsp;(i) through (v)&nbsp;of the definition of Change in Control or in connection with an
actual or threatened proxy contest relating to the election of directors of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(q) &ldquo;ISO&rdquo; means any Option intended to be and designated
as an incentive stock option within the meaning of Section&nbsp;422 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(r) &ldquo;NQSO&rdquo; means any Option that is not an ISO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(s) &ldquo;Option&rdquo; means a right, granted under Section&nbsp;5(b),
to purchase Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(t) &ldquo;Other Stock-Based Award&rdquo; means a right, granted
under Section&nbsp;5(h) that relates to or is valued by reference to Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(u) &ldquo;Participant&rdquo; means an Eligible Person who has
been granted an Award under this Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(v) &ldquo;Performance Award&rdquo; shall have the meaning set
forth in Section&nbsp;7(a).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(w) &ldquo;Performance Period&rdquo; shall have the meaning
set forth in Section&nbsp;5(f)(i).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(x) &ldquo;Performance Share&rdquo; means a performance share
granted under Section&nbsp;5(f).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(y) &ldquo;Performance Unit&rdquo; means a performance unit
granted under Section&nbsp;5(f).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(z) &ldquo;Plan&rdquo; means this XOMA Corporation Amended and
Restated 2010 Long Term Incentive and Stock Award Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(aa) &ldquo;Restricted Shares&rdquo; means an Award of Shares
under Section&nbsp;5(d) that may be subject to certain restrictions and to a risk of forfeiture.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(bb) &ldquo;Restricted Stock Unit&rdquo; means a right, granted
under Section&nbsp;5(e), to receive Shares or cash at the end of a specified deferral period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(cc) &ldquo;Rule 16b-3&rdquo; means Rule 16b-3, as from time
to time in effect and applicable to this Plan and Participants, promulgated by the Securities and Exchange Commission under Section&nbsp;16
of the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(dd) &ldquo;SAR&rdquo; or &ldquo;Stock Appreciation Right&rdquo;
means the right, granted under Section&nbsp;5(c), to be paid an amount measured by the difference between the exercise price of
the right and the Fair Market Value of Shares on the date of exercise of the right, with payment to be made in cash, Shares, or
property as specified in the Award or determined by the Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(ee) &ldquo;Shares&rdquo; means shares of common stock of the
Company, and such other securities as may be substituted for Shares pursuant to Section&nbsp;4(c) hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(ff) &ldquo;Subsidiary&rdquo; means any company (other than
the Company) in an unbroken chain of companies beginning with the Company if each of the companies (other than the last company
in the unbroken chain) owns shares possessing 50% or more of the total combined voting power of all classes of stock in one of
the other companies in the chain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(gg) &ldquo;Termination of Service&rdquo; means the termination
of the Participant&rsquo;s employment, consulting services or directorship with the Company, its Subsidiaries and its Affiliates,
as the case may be. A Participant employed by a Subsidiary of the Company or one of its Affiliates shall also be deemed to incur
a Termination of Service if the Subsidiary of the Company or Affiliate ceases to be such a Subsidiary or an Affiliate, as the case
may be, and the Participant does not immediately thereafter become an employee or director of, or a consultant to, the Company,
another Subsidiary of the Company or an Affiliate. In the event that a Participant who is an employee of the Company, a Subsidiary
or an Affiliate becomes a Director or a consultant to the Company, a Subsidiary or an Affiliate upon the Participant&rsquo;s termination
of employment, unless otherwise determined by the Committee in its sole discretion, no Termination of Service shall be deemed to
occur until such time as such Participant is no longer an employee of, or consultant to, the Company, a Subsidiary or an Affiliate
or a Director, as the case may be. If a Participant who is a Director becomes an employee of, or a consultant to, the Company,
a Subsidiary or an Affiliate upon such Participant ceasing to be a Director, unless otherwise determined by the Committee in its
sole discretion, such termination of the Participant&rsquo;s directorship shall not be treated as a Termination of Service unless
and until the Participant&rsquo;s employment or consultancy, as the case may be, terminates. Temporary absences from employment
because of illness, vacation or leave of absence and transfers among the Company and its Subsidiaries and Affiliates shall not
be considered a Termination of Service.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</FONT></TD>
    <TD STYLE="font-size: 10pt; text-decoration: underline"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Administration.</U></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a)&nbsp;&nbsp;<U>Authority of the Committee.</U> This Plan
shall be administered by the Committee, and the Committee shall have full and final authority to take the following actions, in
each case subject to and consistent with the provisions of this Plan:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(i) to select Eligible Persons to whom Awards may
be granted;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(ii) to designate Affiliates;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(iii) to determine the type or types of Awards to
be granted to each Eligible Person;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(iv) to determine the type and number of Awards
to be granted, the number of Shares to which an Award may relate, the terms and conditions of any Award granted under this Plan
(including, but not limited to, any exercise price, grant price, or purchase price, any restriction or condition, any schedule
for lapse of restrictions or conditions relating to transferability or forfeiture, exercisability, or settlement of an Award, and
waiver or accelerations thereof, and waivers of performance conditions relating to an Award, based in each case on such considerations
as the Committee shall determine), and all other matters to be determined in connection with an Award;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(v) to determine whether, to what extent, and under
what circumstances an Award may be settled, or the exercise price of an Award may be paid, in cash, Shares, other Awards, or other
property, or an Award may be canceled, forfeited, exchanged, or surrendered;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(vi) to determine whether, to what extent, and under
what circumstances cash, Shares, other Awards, or other property payable with respect to an Award will be deferred either automatically,
at the election of the Committee, or at the election of the Eligible Person,&nbsp;<U>provided&nbsp;</U>that such deferral shall
be intended to be in compliance with Section&nbsp;409A of the Code;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(vii) to prescribe the form of each Award Agreement,
which need not be identical for each Eligible Person;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(viii) to adopt, amend, suspend, waive, and rescind
such rules and regulations and appoint such agents as the Committee may deem necessary or advisable to administer this Plan;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(ix) to correct any defect or supply any omission
or reconcile any inconsistency in this Plan and to construe and interpret this Plan and any Award, rules and regulations, Award
Agreement, or other instrument hereunder;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(x) to accelerate the exercisability or vesting
of all or any portion of any Award or to extend the period during which an Award is exercisable;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(xi) to determine whether uncertificated Shares
may be used in satisfying Awards and otherwise in connection with this Plan; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(xii) to make all other decisions and determinations
as may be required under the terms of this Plan or as the Committee may deem necessary or advisable for the administration of this
Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b)&nbsp;&nbsp;<U>Manner of Exercise of Committee Authority.</U>
The Committee shall have sole discretion in exercising its authority under this Plan. Any action of the Committee with respect
to this Plan shall be final, conclusive, and binding on all persons, including the Company, Subsidiaries, Affiliates, Eligible
Persons, any person claiming any rights under this Plan from or through any Eligible Person, and stockholders. The express grant
of any specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power
or authority of the Committee. The Committee may delegate to other members of the Board or officers or managers of the Company
or any Subsidiary or Affiliate the authority, subject to such terms as the Committee shall determine, to perform administrative
functions and, with respect to Awards granted to persons not subject to Section&nbsp;16 of the Exchange Act, to perform such other
functions as the Committee may determine, to the extent permitted under Rule 16b-3 (if applicable) and applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(c)&nbsp;&nbsp;<U>Limitation of Liability.</U> Each member of
the Committee shall be entitled to, in good faith, rely or act upon any report or other information furnished to him or her by
any officer or other employee of the Company or any Subsidiary or Affiliate, the Company&rsquo;s independent certified public accountants,
or other professional retained by the Company to assist in the administration of this Plan. No member of the Committee, and no
officer or employee of the Company acting on behalf of the Committee, shall be personally liable for any action, determination,
or interpretation taken or made in good faith with respect to this Plan, and all members of the Committee and any officer or employee
of the Company acting on their behalf shall, to the extent permitted by law, be fully indemnified and protected by the Company
with respect to any such action, determination, or interpretation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d)&nbsp;&nbsp;<U>Limitation on Committee&rsquo;s Discretion.</U>
Anything in this Plan to the contrary notwithstanding, in the case of any Award which is intended to qualify as &ldquo;performance-based
compensation&rdquo; within the meaning of Section&nbsp;162(m)(4)(C) of the Code, the Committee shall have no discretion to increase
the amount of compensation payable under the Award to the extent such an increase would cause the Award to lose its qualification
as such performance-based compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(e)&nbsp;&nbsp;<U>No Option or SAR Repricing Without Stockholder
Approval.</U> Except as provided in the first sentence of Section&nbsp;4(c) hereof relating to certain anti-dilution adjustments,
unless the approval of stockholders of the Company is obtained, (i)&nbsp;Options and SARs shall not be amended to lower their exercise
price, (ii)&nbsp;Options and SARs will not be exchanged for other Options or SARs with lower exercise prices, (iii)&nbsp;Options
and SARs with an exercise price in excess of the Fair Market Value of the underlying Shares will not be exchanged for cash or other
property and (iii)&nbsp;no other action shall be taken with respect to Options or SARs that would be treated as a repricing under
the rules of the principal stock exchange on which the Shares are listed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(f)&nbsp;&nbsp;<U>Limitation
on Committee&rsquo;s Authority under 409A.</U></FONT> <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Anything
in this Plan to the contrary notwithstanding, the Committee&rsquo;s authority to modify outstanding Awards shall be limited to
the extent necessary so that the existence of such authority does not (i)&nbsp;cause an Award that is not otherwise deferred compensation
subject to Section&nbsp;409A of the Code to become deferred compensation subject to Section&nbsp;409A of the Code or (ii)&nbsp;cause
an Award that is otherwise deferred compensation subject to Section&nbsp;409A of the Code to fail to meet the requirements prescribed
by Section&nbsp;409A of the Code.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</FONT></TD>
    <TD STYLE="font-size: 10pt; text-decoration: underline"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Shares Subject to this Plan</U>.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a) Subject to adjustment as provided in Section&nbsp;4(c) hereof,
the total number of Shares reserved for issuance in connection with Awards under this Plan shall be (i)&nbsp;22,171,206 plus (ii)&nbsp;the
number of Shares subject to awards granted prior to the Effective Date of this Plan under the Company&rsquo;s 1981 Share Option
Plan, its Restricted Share Plan or its 1992 Directors Share Option Plan (the &ldquo;Prior Plans&rdquo;) which awards are, after
the Effective Date, forfeited, canceled, surrendered or otherwise terminated without a distribution of Shares to the holder of
the award;&nbsp;<U>provided&nbsp;</U>,&nbsp;&nbsp;<U>however&nbsp;</U>, that, subject to adjustment as provided in Section&nbsp;4(c)
hereof, no more than 11,5000,000 Shares may be issued as ISOs under this Plan; and,&nbsp;<U>provided&nbsp;</U>,<U>further&nbsp;</U>,
that for each Restricted Share, Restricted Stock Unit, Performance Share, Performance Unit, Dividend Equivalent or Other Stock-Based
Award issued, such total number of available Shares shall be reduced by 1.08 Shares. No Award may be granted if the number of Shares
to which such Award relates, when added to the number of Shares previously issued under this Plan, exceeds the number of Shares
reserved under the applicable provisions of the preceding sentence. If any Awards are forfeited, canceled, terminated, exchanged
or surrendered or such Award is settled in cash or otherwise terminates without a distribution of Shares to the Participant, any
Shares counted against the number of Shares reserved and available under this Plan with respect to such Award shall, to the extent
of any such forfeiture, repurchase, settlement, termination, cancellation, exchange or surrender, again be available for Awards
under this Plan. Further, for each share underlying an Award that was granted under this Plan and is a Restricted Share, Restricted
Stock Unit, Performance Share, Performance Unit, Dividend Equivalent or Other Stock-Based Award and for each share underlying an
award other than an option or stock appreciation right that was granted under a Prior Plan, in each case, that is forfeited, cancelled,
terminated, exchanged or surrendered, such forfeiture, cancellation, termination, exchange or surrender will result in the addition
of 1.08 shares to the share reserve of this Plan. Upon the exercise of any Award granted in tandem with any other Awards, such
related Awards shall be canceled to the extent of the number of Shares as to which the Award is exercised. If any shares subject
to an Award are not delivered to a participant because the Award is exercised through a reduction of shares subject to the Award
(i.e., &ldquo;net exercised&rdquo;), the number of shares that are not delivered to the participant shall not remain available
for issuance under the Long Term Incentive Plan. Also, any shares withheld or reacquired by the Company pursuant to the exercise
of an option or SAR or as consideration for the exercise of an option or SAR, and any shares withheld or reacquired by the Company
in satisfaction of the Company&rsquo;s tax withholding obligation on an Award shall not again become available for issuance under
the Plan</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b) Subject to adjustment as provided in Section&nbsp;4(c) hereof,
the maximum number of Shares (i)&nbsp;with respect to which Options or SARs may be granted during a calendar year to any Eligible
Person under this Plan shall be 466,666 Shares, and (ii)&nbsp;with respect to which Performance Shares, Performance Units, Restricted
Shares or Restricted Stock Units intended to qualify as performance-based compensation within the meaning of Section&nbsp;162(m)(4)(C)
of the Code may be granted during a calendar year to any Eligible Person under this Plan shall be 466,666 Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(c) In the event that the Committee shall determine that any
dividend in Shares, recapitalization, Share split, reverse split, reorganization, merger, consolidation, spin-off, combination,
repurchase, share exchange, extraordinary distribution or other similar corporate transaction or event, affects the Shares such
that an adjustment is appropriate in order to prevent dilution or enlargement of the rights of Eligible Persons under this Plan,
then the Committee shall make such equitable changes or adjustments as it deems appropriate and, in such manner as it may deem
equitable, (i)&nbsp;adjust any or all of (x)&nbsp;the number and kind of shares which may thereafter be issued under this Plan,
(y)&nbsp;the number and kind of shares, other securities or other consideration issued or issuable in respect of outstanding Awards,
and (z)&nbsp;the exercise price, grant price, or purchase price relating to any Award, or (ii)&nbsp;provide for a distribution
of cash or property in respect of any Award; <U>provided&nbsp;</U>,&nbsp;<U>however&nbsp;</U>, in each case that, with respect
to ISOs, such adjustment shall be made in accordance with Section&nbsp;424(a) of the Code, unless the Committee determines otherwise;&nbsp;<U>provided&nbsp;</U>,&nbsp;<U>further&nbsp;</U>,
that no adjustment shall be made pursuant to this Section&nbsp;4(c) that causes any Award that is not otherwise deferred compensation
subject to Section&nbsp;409A of the Code to be treated as deferred compensation pursuant to Section&nbsp;409A of the Code. In addition,
the Committee is authorized to make adjustments in the terms and conditions of, and the criteria and performance objectives, if
any, included in, Awards in recognition of unusual or non-recurring events (including, without limitation, events described in
the preceding sentence) affecting the Company or any Subsidiary or Affiliate or the financial statements of the Company or any
Subsidiary or Affiliate, or in response to changes in applicable laws, regulations, or accounting principles;&nbsp;<U>provided&nbsp;</U>,&nbsp;<U>however&nbsp;</U>,
that the Committee shall not have discretion to increase the amount of compensation payable under any Award intended to qualify
as performance-based compensation for purposes of Section&nbsp;162(m)(4)(C) of the Code to the extent such an increase would cause
the Award to lose its qualification as performance-based compensation for purposes of Section&nbsp;162(m)(4)(C) of the Code and
the regulations thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d) Any Shares distributed pursuant to an Award may consist,
in whole or in part, of authorized and unissued Shares or treasury Shares including Shares acquired by purchase in the open market
or in private transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</FONT></TD>
    <TD STYLE="font-size: 10pt; text-decoration: underline"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Specific Terms of Awards</U>.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a)&nbsp;&nbsp;<U>General</U>.&nbsp;Awards may be granted on
the terms and conditions set forth in this Section&nbsp;5. In addition, the Committee may impose on any Award or the exercise thereof,
at the date of grant or thereafter (subject to Section&nbsp;9(d)), such additional terms and conditions, not inconsistent with
the provisions of this Plan, as the Committee shall determine, including terms regarding forfeiture of Awards or continued exercisability
of Awards in the event of Termination of Service by the Eligible Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b)&nbsp;&nbsp;<U>Options</U>.&nbsp;The Committee is authorized
to grant Options, which may be NQSOs or ISOs, to Eligible Persons on the following terms and conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(i)&nbsp;&nbsp;<U>Exercise Price</U>.&nbsp;The exercise
price per Share purchasable under an Option shall be determined by the Committee;&nbsp;<U>provided</U>,&nbsp;<U>however</U>, that
the exercise price per Share of an Option shall not be less than the Fair Market Value of a Share on the date of grant of the Option.
The Committee may, without limitation, set an exercise price that is based upon achievement of performance criteria if deemed appropriate
by the Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(ii)&nbsp;&nbsp;<U>Option Term</U>.&nbsp;The term
of each Option shall be determined by the Committee;&nbsp;<U>provided</U>,&nbsp;<U>however</U>, that such term shall not be longer
than ten years from the date of grant of the Option.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(iii)&nbsp;&nbsp;<U>Time and Method of Exercise</U>.&nbsp;The
Committee shall determine at the date of grant or thereafter the time or times at which an Option may be exercised in whole or
in part (including, without limitation, upon achievement of performance criteria if deemed appropriate by the Committee), the methods
by which such exercise price may be paid or deemed to be paid (including, without limitation, broker-assisted exercise arrangements),
the form of such payment (including, without limitation, cash, Shares or other property), and the methods by which Shares will
be delivered or deemed to be delivered to Eligible Persons.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(iv)&nbsp;&nbsp;<U>ISOs</U>.&nbsp;The terms of any
ISO granted under this Plan shall comply in all respects with the provisions of Section&nbsp;422 of the Code, including but not
limited to the requirement that the ISO shall be granted within ten years from the earlier of the date of adoption or stockholder
approval of this Plan. ISOs may only be granted to employees of the Company or a Subsidiary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(c)&nbsp;&nbsp;<U>SARs</U>.&nbsp;The Committee is authorized
to grant SARs (Stock Appreciation Rights) to Eligible Persons on the following terms and conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(i)&nbsp;&nbsp;<U>Right to Payment&nbsp;</U>.&nbsp;A
SAR shall confer on the Eligible Person to whom it is granted a right to receive with respect to each Share subject thereto, upon
exercise thereof, the excess of (1)&nbsp;the Fair Market Value of one Share on the date of exercise over (2)&nbsp;the exercise
price per Share of the SAR, as determined by the Committee as of the date of grant of the SAR (which shall not be less than the
Fair Market Value per Share on the date of grant of the SAR and, in the case of a SAR granted in tandem with an Option, shall be
equal to the exercise price of the underlying Option).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(ii)&nbsp;&nbsp;<U>Other Terms</U>.&nbsp;The Committee
shall determine, at the time of grant or thereafter, the time or times at which a SAR may be exercised in whole or in part (which
shall not be more than ten years after the date of grant of the SAR), the method of exercise, method of settlement, form of consideration
payable in settlement, method by which Shares will be delivered or deemed to be delivered to Eligible Persons, whether or not a
SAR shall be in tandem with any other Award, and any other terms and conditions of any SAR. Unless the Committee determines otherwise,
a SAR (1)&nbsp;granted in tandem with an NQSO may be granted at the time of grant of the related NQSO or at any time thereafter
and (2)&nbsp;granted in tandem with an ISO may only be granted at the time of grant of the related ISO.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d)&nbsp;&nbsp;<U>Restricted Shares</U>.&nbsp;The Committee
is authorized to grant Restricted Shares to Eligible Persons on the following terms and conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(i)&nbsp;&nbsp;<U>Issuance and Restrictions</U>.&nbsp;Restricted
Shares shall be subject to such restrictions on transferability and other restrictions, if any, as the Committee may impose at
the date of grant or thereafter, which restrictions may lapse separately or in combination at such times, under such circumstances
(including, without limitation, upon achievement of performance criteria if deemed appropriate by the Committee), in such installments,
or otherwise, as the Committee may determine. Except to the extent restricted under the Award Agreement relating to the Restricted
Shares, an Eligible Person granted Restricted Shares shall have all of the rights of a stockholder including, without limitation,
the right to vote Restricted Shares and the right to receive dividends thereon.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(ii)&nbsp;&nbsp;<U>Forfeiture</U>.&nbsp;Except as
otherwise determined by the Committee, at the date of grant or thereafter, upon Termination of Service during the applicable restriction
period, Restricted Shares shall be repurchased by the Company for a nominal amount equal to their par value and any accrued but
unpaid dividends or Dividend Equivalents that are at that time subject to restrictions shall be forfeited;&nbsp;<U>provided&nbsp;</U>,&nbsp;<U>however&nbsp;</U>,
that the Committee may provide, by rule or regulation or in any Award Agreement, or may determine in any individual case, that
restrictions or forfeiture conditions relating to Restricted Shares will be waived in whole or in part in the event of Termination
of Service resulting from specified causes, and the Committee may in other cases waive in whole or in part the forfeiture of Restricted
Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(iii)&nbsp;&nbsp;<U>Certificates for Shares</U>.&nbsp;Restricted
Shares granted under this Plan may be evidenced in such manner as the Committee shall determine. If certificates representing Restricted
Shares are registered in the name of the Eligible Person, such certificates shall bear an appropriate legend referring to the terms,
conditions, and restrictions applicable to such Restricted Shares, and, unless otherwise determined by the Committee, the Company
shall retain physical possession of the certificate and the Participant shall deliver a stock power to the Company, endorsed in
blank, relating to the Restricted Shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(iv)&nbsp;&nbsp;<U>Dividends</U>.&nbsp;Dividends
paid on Restricted Shares shall be either paid at the dividend payment date, or deferred for payment to such date, and subject
to such conditions, as determined by the Committee, in cash or in restricted or unrestricted Shares having a Fair Market Value
equal to the amount of such dividends. Unless otherwise determined by the Committee, Shares distributed in connection with a Share
split or dividend in Shares, and other property distributed as a dividend, shall be subject to restrictions and a risk of forfeiture
to the same extent as the Restricted Shares with respect to which such Shares or other property has been distributed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(e)&nbsp;&nbsp;<U>Restricted Stock Units</U>.&nbsp;The Committee
is authorized to grant Restricted Stock Units to Eligible Persons, subject to the following terms and conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(i)&nbsp;&nbsp;<U>Award and Restrictions</U>.&nbsp;Delivery
of Shares or cash, as the case may be, will occur upon expiration of the deferral period specified for Restricted Stock Units by
the Committee (or, if permitted by the Committee, as elected by the Eligible Person). In addition, Restricted Stock Units shall
be subject to such restrictions as the Committee may impose, if any (including, without limitation, the achievement of performance
criteria if deemed appropriate by the Committee), at the date of grant or thereafter, which restrictions may lapse at the expiration
of the deferral period or at earlier or later specified times, separately or in combination, in installments or otherwise, as the
Committee may determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(ii)&nbsp;&nbsp;<U>Forfeiture</U>.&nbsp;Except as
otherwise determined by the Committee at the date of grant or thereafter, upon Termination of Service during the applicable deferral
period or portion thereof to which forfeiture conditions apply (as provided in the Award Agreement evidencing the Restricted Stock
Units), or upon failure to satisfy any other conditions precedent to the delivery of Shares or cash to which such Restricted Stock
Units relate, all Restricted Stock Units that are at that time subject to deferral or restriction shall be forfeited;&nbsp;<U>provided</U>,&nbsp;<U>however&nbsp;</U>,
that the Committee may provide, by rule or regulation or in any Award Agreement, or may determine in any individual case, that
restrictions or forfeiture conditions relating to Restricted Stock Units will be waived in whole or in part in the event of Termination
of Service resulting from specified causes, and the Committee may in other cases waive in whole or in part the forfeiture of Restricted
Stock Units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(iii)&nbsp;&nbsp;<U>Dividend Equivalents</U>.&nbsp;Unless
otherwise determined by the Committee at the date of grant, Dividend Equivalents on the specified number of Shares covered by a
Restricted Stock Unit shall be either (A)&nbsp;paid with respect to such Restricted Stock Unit at the dividend payment date in
cash or in restricted or unrestricted Shares having a Fair Market Value equal to the amount of such dividends, or (B)&nbsp;deferred
with respect to such Restricted Stock Unit and the amount or value thereof automatically deemed reinvested in additional Restricted
Stock Units or other Awards, as the Committee shall determine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(f)&nbsp;&nbsp;<U>Performance Shares and Performance Units</U>.&nbsp;The
Committee is authorized to grant Performance Shares or Performance Units or both to Eligible Persons on the following terms and
conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(i)&nbsp;&nbsp;<U>Performance Period</U>.&nbsp;The
Committee shall determine a performance period (the &ldquo;Performance Period&rdquo;) of one or more years or other periods and
shall determine the performance objectives for grants of Performance Shares and Performance Units. Performance objectives may vary
from Eligible Person to Eligible Person and shall be based upon the performance criteria as the Committee may deem appropriate.
The performance objectives may be determined by reference to the performance of the Company, or of a Subsidiary or Affiliate, or
of a division or unit of any of the foregoing. Performance Periods may overlap and Eligible Persons may participate simultaneously
with respect to Performance Shares and Performance Units for which different Performance Periods are prescribed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(ii)&nbsp;&nbsp;<U>Award Value</U>.&nbsp;At the
beginning of a Performance Period, the Committee shall determine for each Eligible Person or group of Eligible Persons with respect
to that Performance Period the range of number of Shares, if any, in the case of Performance Shares, and the range of dollar values,
if any, in the case of Performance Units, which may be fixed or may vary in accordance with such performance or other criteria
specified by the Committee, which shall be paid to an Eligible Person as an Award if the relevant measure of Company performance
for the Performance Period is met.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(iii)&nbsp;&nbsp;<U>Significant Events</U>.&nbsp;If
during the course of a Performance Period there shall occur significant events as determined by the Committee which the Committee
expects to have a substantial effect on a performance objective during such period, the Committee may revise such objective;&nbsp;<U>provided&nbsp;</U>,&nbsp;<U>however&nbsp;</U>,
that, in the case of any Award intended to qualify as performance-based compensation for purposes of Section&nbsp;162(m)(4)(C)
of the Code, the Committee shall not have any discretion to increase the amount of compensation payable under the Award to the
extent such an increase would cause the Award to lose its qualification as performance-based compensation for purposes of Section&nbsp;162(m)(4)(C)
of the Code and the regulations thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(iv)&nbsp;&nbsp;<U>Forfeiture</U>.&nbsp;Except as
otherwise determined by the Committee at the date of grant or thereafter, upon Termination of Service during the applicable Performance
Period, Performance Shares and Performance Units for which the Performance Period was prescribed shall be forfeited; <U>provided&nbsp;</U>,&nbsp;<U>however&nbsp;</U>,
that the Committee may provide, by rule or regulation or in any Award Agreement, or may determine in an individual case, that restrictions
or forfeiture conditions relating to Performance Shares and Performance Units will be waived in whole or in part in the event of
Terminations of Service resulting from specified causes, and the Committee may in other cases waive in whole or in part the forfeiture
of Performance Shares and Performance Units.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(v)&nbsp;&nbsp;<U>Payment</U>.&nbsp;Each Performance
Share or Performance Unit may be paid in whole Shares, or cash, or a combination of Shares and cash either as a lump sum payment
or in installments, all as the Committee shall determine, at the time of grant of the Performance Share or Performance Unit or
otherwise, commencing at the time determined by the Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(vi)&nbsp;&nbsp;<U>Restriction on Dividends</U>.&nbsp;No
dividends or Dividend Equivalents shall be paid on any Performance Share or Performance Unit until such time (if ever) as the performance
criteria associated therewith have been met.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(g)&nbsp;&nbsp;<U>Dividend Equivalents</U>.&nbsp;The Committee
is authorized to grant Dividend Equivalents to Eligible Persons. The Committee may provide, at the date of grant or thereafter,
that Dividend Equivalents shall be paid or distributed when accrued or shall be deemed to have been reinvested in additional Shares,
or other investment vehicles as the Committee may specify; <U>provided</U>,&nbsp;<U>however&nbsp;</U>, that, unless otherwise determined
by the Committee, Dividend Equivalents (other than freestanding Dividend Equivalents) shall be subject to all conditions and restrictions
of any underlying Awards to which they relate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(h)&nbsp;&nbsp;<U>Other Stock-Based Awards</U>.&nbsp;The Committee
is authorized, subject to limitations under applicable law, to grant to Eligible Persons such other Awards that may be denominated
or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Shares, as deemed by the Committee
to be consistent with the purposes of this Plan, including, without limitation, unrestricted shares awarded purely as a &ldquo;bonus&rdquo;
and not subject to any restrictions or conditions, other rights convertible or exchangeable into Shares, purchase rights for Shares,
Awards with value and payment contingent upon performance of the Company or any other factors designated by the Committee, and
Awards valued by reference to the performance of specified Subsidiaries or Affiliates. The Committee shall determine the terms
and conditions of such Awards at date of grant or thereafter. Shares delivered pursuant to an Award in the nature of a purchase
right granted under this Section&nbsp;5(h) shall be purchased for such consideration, paid for at such times, by such methods,
and in such forms, including, without limitation, cash, Shares, notes or other property, as the Committee shall determine. Cash
awards, as an element of or supplement to any other Award under this Plan, shall also be authorized pursuant to this Section&nbsp;5(h).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</FONT></TD>
    <TD STYLE="font-size: 10pt; text-decoration: underline"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Certain Provisions Applicable to Awards</U>.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a)&nbsp;&nbsp;<U>Stand-Alone, Additional, Tandem and Substitute
Awards</U>.&nbsp;Awards granted under this Plan may, in the discretion of the Committee, be granted to Eligible Persons either
alone or in addition to, in tandem with, or in exchange or substitution for, any other Award granted under this Plan or any award
granted under any other plan or agreement of the Company, any Subsidiary or Affiliate, or any business entity to be acquired by
the Company or a Subsidiary or Affiliate, or any other right of an Eligible Person to receive payment from the Company or any Subsidiary
or Affiliate. Awards may be granted in addition to or in tandem with such other Awards or awards, and may be granted either as
of the same time as, or a different time from, the grant of such other Awards or awards. Subject to the provisions of Section&nbsp;3(e)
hereof prohibiting Option and SAR repricing without stockholder approval, the per Share exercise price of any Option, or grant
price of any SAR, which is granted in connection with the substitution of awards granted under any other plan or agreement of the
Company or any Subsidiary or Affiliate, or any business entity to be acquired by the Company or any Subsidiary or Affiliate, shall
be determined by the Committee, in its discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b)&nbsp;&nbsp;<U>Term of Awards</U>.&nbsp;The term of each
Award granted to an Eligible Person shall be for such period as may be determined by the Committee;&nbsp;<U>provided</U>, <U>however</U>,
that in no event shall the term of any Option or SAR exceed a period of ten years from the date of its grant (or, in the case of
ISOs, such shorter period as may be applicable under Section&nbsp;422 of the Code).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(c)&nbsp;&nbsp;<U>Form of Payment Under Awards</U>.&nbsp;Subject
to the terms of this Plan and any applicable Award Agreement, payments to be made by the Company or a Subsidiary or Affiliate upon
the grant, maturation, or exercise of an Award may be made in such forms as the Committee shall determine at the date of grant
or thereafter, including, without limitation, cash, Shares, notes or other property, and may be made in a single payment or transfer,
in installments, or on a deferred basis,&nbsp;<U>provided&nbsp;</U>that any such deferral shall be intended to be in compliance
with Section&nbsp;409A of the Code. The Committee may make rules relating to installment or deferred payments with respect to Awards,
including the rate of interest to be credited with respect to such payments, and the Committee may require deferral of payment
under an Award if, in the sole judgment of the Committee, it may be necessary in order to avoid nondeductibility of the payment
under Section&nbsp;162(m) of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d)&nbsp;&nbsp;<U>Nontransferability</U>.&nbsp;Awards shall
not be transferable by an Eligible Person except by will or the laws of descent and distribution (except pursuant to a Beneficiary
designation) and shall be exercisable during the lifetime of an Eligible Person only by such Eligible Person or his or her guardian
or legal representative,&nbsp;<U>provided&nbsp;</U>that Awards that are NQSOs may be transferred or assigned by the optionee to
the optionee&rsquo;s spouse or descendent (any such spouse or descendent, an &ldquo;Immediate Family Member&rdquo;) or a corporation,
partnership, limited liability company or trust so long as all of the stockholders, partners, members or beneficiaries thereof,
as the case may be, are either the optionee or the optionee&rsquo;s Immediate Family Member,&nbsp;<U>provided&nbsp;</U>,&nbsp;<U>further&nbsp;</U>,
that (i)&nbsp;there may be no consideration for any such transfer and (ii)&nbsp;subsequent transfers of the transferred NQSO will
be prohibited other than by will or the laws of descent and distribution. An Eligible Person&rsquo;s rights under this Plan may
not be pledged, mortgaged, hypothecated, or otherwise encumbered, and shall not be subject to claims of the Eligible Person&rsquo;s
creditors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(e)&nbsp;&nbsp;<U>Noncompetition</U>.&nbsp;The Committee may,
by way of the Award Agreements or otherwise, establish such other terms, conditions, restrictions and/or limitations, if any, of
any Award, provided they are not inconsistent with this Plan, including, without limitation, the requirement that the Participant
not engage in competition with, solicit customers or employees of, or disclose or use confidential information of the Company or
its Affiliates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.</FONT></TD>
    <TD STYLE="font-size: 10pt; text-decoration: underline"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Performance Awards</U>.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a)&nbsp;&nbsp;<U>Performance Awards Granted to Covered Employees</U>.&nbsp;If
the Committee determines that an Award (other than an Option or SAR) to be granted to an Eligible Person should qualify as &ldquo;performance-based
compensation&rdquo; for purposes of Section&nbsp;162(m) of the Code, the grant, vesting, exercise and/or settlement of such Award
(each, a &ldquo;Performance Award&rdquo;) shall be contingent upon achievement of pre-established performance goals and other terms
set forth in this Section&nbsp;7(a).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(i)&nbsp;&nbsp;<U>Performance Goals Generally</U>.&nbsp;The
performance goals for such Performance Awards shall consist of one or more business criteria and a targeted level or levels of
performance with respect to each of such criteria, as specified by the Committee consistent with this Section&nbsp;7(a). The performance
goals shall be objective and shall otherwise meet the requirements of Section&nbsp;162(m) of the Code and regulations thereunder
(including Treasury Regulation 1.162-27 and successor regulations thereto), including the requirement that the level or levels
of performance targeted by the Committee result in the achievement of performance goals being &ldquo;substantially uncertain.&rdquo;
The Committee may determine that such Performance Awards shall be granted, vested, exercised and/or settled upon achievement of
any one performance goal or that two or more of the performance goals must be achieved as a condition to grant, vesting, exercise
and/or settlement of such Performance Awards. Performance goals may differ for Performance Awards granted to any one Participant
or to different Participants.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(ii)&nbsp;&nbsp;<U>Business Criteria</U>.&nbsp;One
or more of the following business criteria for the Company, on a consolidated basis, and/or for specified Subsidiaries or Affiliates
or other business units or lines of business of the Company shall be used by the Committee in establishing performance goals for
such Performance Awards: (1)&nbsp;earnings per share (basic or fully diluted); (2)&nbsp;revenues; (3)&nbsp;earnings, before or
after taxes, from operations (generally or specified operations), or before or after interest expense, depreciation, amortization,
incentives, or extraordinary or special items; (4)&nbsp;cash flow, free cash flow, cash flow return on investment (discounted or
otherwise), net cash provided by operations, or cash flow in excess of cost of capital; (5)&nbsp;return on net assets, return on
assets, return on investment, return on capital, return on equity; (6)&nbsp;economic value added; (7)&nbsp;operating margin or
operating expense; (8)&nbsp;net income; (9)&nbsp;Share price or total stockholder return; (10)&nbsp;book value; (11)&nbsp;expense
ratio; (12)&nbsp;operating income; and (13)&nbsp;strategic business criteria, consisting of one or more objectives based on meeting
specified market penetration, geographic business expansion goals, cost targets, customer satisfaction, supervision of litigation
and information technology, and goals relating to acquisitions or divestitures of Subsidiaries, Affiliates or joint ventures. The
targeted level or levels of performance with respect to such business criteria may be established at such levels and in such terms
as the Committee may determine, in its discretion, including in absolute terms, as a goal relative to performance in prior periods,
or as a goal compared to the performance of one or more comparable companies or an index covering multiple companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(iii)&nbsp;&nbsp;<U>Performance Period; Timing for
Establishing Performance Goals; Per-Person Limit</U>.&nbsp;Achievement of performance goals in respect of such Performance Awards
shall be measured over a performance period, as specified by the Committee. A performance goal shall be established not later than
the earlier of (A)&nbsp;90 days after the beginning of any performance period applicable to such Performance Award or (B)&nbsp;the
time 25% of such performance period has elapsed. In all cases, the maximum Performance Award of any Participant shall be subject
to the limitation set forth in Section&nbsp;4(b) or 7(a)(v), as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(iv)&nbsp;&nbsp;<U>Settlement of Performance Awards;
Other Terms</U>.&nbsp;Settlement of such Performance Awards shall be in cash, Shares, other Awards or other property, in the discretion
of the Committee. The Committee may, in its discretion, reduce the amount of a settlement otherwise to be made in connection with
such Performance Awards, but may not exercise discretion to increase any such amount payable to the Participant in respect of a
Performance Award subject to this Section&nbsp;7(a). Any settlement which changes the form of payment from that originally specified
shall be implemented in a manner such that the Performance Award and other related Awards do not, solely for that reason, fail
to qualify as &ldquo;performance-based compensation&rdquo; for purposes of Section&nbsp;162(m) of the Code. The Committee shall
specify the circumstances in which such Performance Awards shall be paid or forfeited in the event of Termination of Service of
the Participant or other event (including a Change in Control) prior to the end of a performance period or settlement of such Performance
Awards.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 12.25pt">(v)&nbsp;&nbsp;<U>Maximum Annual Cash Award&nbsp;</U>.&nbsp;The
maximum amount payable upon settlement of a cash-settled Performance Unit (or other cash-settled Award) granted under this Plan
that is intended to satisfy the requirements for &ldquo;performance-based compensation&rdquo; under Section&nbsp;162(m) of the
Code for any calendar year to any Eligible Person shall not exceed $3,000,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b)&nbsp;&nbsp;<U>Written Determinations</U>.&nbsp;Determinations
by the Committee as to the establishment of performance goals, the amount potentially payable in respect of Performance Awards,
the level of actual achievement of the specified performance goals relating to Performance Awards and the amount of any final Performance
Award shall be recorded in writing in the case of Performance Awards intended to qualify under Section&nbsp;162(m) of the Code.
Specifically, the Committee shall certify in writing, in a manner conforming to applicable regulations under Section&nbsp;162(m),
prior to settlement of each such Award, that the performance objective relating to the Performance Award and other material terms
of the Award upon which settlement of the Award was conditioned have been satisfied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">8.&nbsp;<U>Change in Control Provisions</U>. Unless otherwise
provided by the Committee at the time of the Award grant, in the event of a Change in Control, each outstanding Award shall either
be assumed by the successor company or parent thereof or to be replaced with comparable awards with respect to capital stock of
the successor company or parent thereof, such comparability to be determined by the Committee; provided, however&nbsp;<I>,&nbsp;</I>that
notwithstanding the foregoing, if an outstanding Award is not so assumed or replaced, then (i)&nbsp;such outstanding Award pursuant
to which the Participant may have rights the exercise of which is restricted or limited, shall become fully exercisable at the
time of the Change in Control, and (ii)&nbsp;unless the right to lapse of restrictions or limitations is waived or deferred by
a Participant prior to such lapse, all restrictions or limitations (including risks of forfeiture and deferrals) on such outstanding
Award subject to restrictions or limitations under this Plan shall lapse, and all performance criteria and other conditions to
payment of Awards under which payments of cash, Shares or other property are subject to conditions shall be deemed to be achieved
or fulfilled at target (if applicable) and shall be waived by the Company at the time of the Change in Control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">9.</FONT></TD>
    <TD STYLE="width: 97%; font-size: 10pt; text-decoration: underline"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>General Provisions</U>.</FONT></TD>
    <TD STYLE="width: 1%; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(a)&nbsp;&nbsp;<U>Compliance with Legal and Trading Requirements</U>.&nbsp;This
Plan, the granting and exercising of Awards thereunder, and the other obligations of the Company under this Plan and any Award
Agreement, shall be subject to all applicable federal, state and foreign laws, rules and regulations, and to such approvals by
any stock exchange, regulatory or governmental agency as may be required. The Company, in its discretion, may postpone the issuance
or delivery of Shares under any Award until completion of such stock exchange or market system listing or registration or qualification
of such Shares or any required action under any state, federal or foreign law, rule or regulation as the Company may consider appropriate,
and may require any Participant to make such representations and furnish such information as it may consider appropriate in connection
with the issuance or delivery of Shares in compliance with applicable laws, rules and regulations. No provisions of this Plan shall
be interpreted or construed to obligate the Company to register any Shares under federal, state or foreign law. The Shares issued
under this Plan may be subject to such other restrictions on transfer as determined by the Committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(b)&nbsp;&nbsp;<U>No Right to Continued Employment or Service</U>.&nbsp;Neither
this Plan nor any action taken thereunder shall be construed as giving any employee, consultant or director the right to be retained
in the employ or service of the Company or any of its Subsidiaries or Affiliates, nor shall it interfere in any way with the right
of the Company or any of its Subsidiaries or Affiliates to terminate any employee&rsquo;s, consultant&rsquo;s or director&rsquo;s
employment or service at any time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(c)&nbsp;&nbsp;<U>Taxes</U>.&nbsp;The Company or any Subsidiary
or Affiliate is authorized to withhold from any Award granted, any payment relating to an Award under this Plan, including from
a distribution of Shares, or any payroll or other payment to an Eligible Person, amounts of withholding and other taxes due in
connection with any transaction involving an Award, and to take such other action as the Committee may deem advisable to enable
the Company and Eligible Persons to satisfy obligations for the payment of withholding taxes and other tax obligations relating
to any Award. This authority shall include authority to withhold or receive Shares or other property and to make cash payments
in respect thereof in satisfaction of an Eligible Person&rsquo;s tax obligations;&nbsp;<U>provided</U>,&nbsp;<U>however&nbsp;</U>,
that the amount of tax withholding to be satisfied by withholding Shares shall be limited to the minimum amount of taxes, including
employment taxes, required to be withheld under applicable Federal, state and local law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d)&nbsp;&nbsp;<U>Changes to this Plan and Awards</U>.&nbsp;The
Board may amend, alter, suspend, discontinue, or terminate this Plan or the Committee&rsquo;s authority to grant Awards under this
Plan without the consent of stockholders of the Company or Participants, except that any such amendment or alteration shall be
subject to the approval of the Company&rsquo;s stockholders (i)&nbsp;to the extent such stockholder approval is required under
the rules of any stock exchange or automated quotation system on which the Shares may then be listed or quoted, or (ii)&nbsp;as
it applies to ISOs, to the extent such stockholder approval is required under Section&nbsp;422 of the Code;&nbsp;<U>provided&nbsp;</U>,&nbsp;<U>however&nbsp;</U>,
that, without the consent of an affected Participant, no amendment, alteration, suspension, discontinuation, or termination of
this Plan may materially and adversely affect the rights of such Participant under any Award theretofore granted to him or her.
The Committee may waive any conditions or rights under, amend any terms of, or amend, alter, suspend, discontinue or terminate,
any Award theretofore granted, prospectively or retrospectively;&nbsp;<U>provided</U>,&nbsp;<U>however</U>, that, without the consent
of a Participant, no amendment, alteration, suspension, discontinuation or termination of any Award may materially and adversely
affect the rights of such Participant under any Award theretofore granted to him or her.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(e)&nbsp;&nbsp;<U>No Rights to Awards; No Stockholder Rights</U>.&nbsp;No
Eligible Person or employee shall have any claim to be granted any Award under this Plan, and there is no obligation for uniformity
of treatment of Eligible Persons and employees. No Award shall confer on any Eligible Person any of the rights of a stockholder
of the Company unless and until Shares are duly issued or transferred to the Eligible Person in accordance with the terms of the
Award.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(f)&nbsp;&nbsp;<U>Unfunded Status of Awards</U>.&nbsp;This Plan
is intended to constitute an &ldquo;unfunded&rdquo; plan for incentive compensation. With respect to any payments not yet made
to a Participant pursuant to an Award, nothing contained in this Plan or any Award shall give any such Participant any rights that
are greater than those of a general creditor of the Company; <U>provided</U>,&nbsp;<U>however</U>, that the Committee may authorize
the creation of trusts or make other arrangements to meet the Company&rsquo;s obligations under this Plan to deliver cash, Shares,
other Awards, or other property pursuant to any Award, which trusts or other arrangements shall be consistent with the &ldquo;unfunded&rdquo;
status of this Plan unless the Committee otherwise determines with the consent of each affected Participant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(g)&nbsp;&nbsp;<U>Nonexclusivity of this Plan</U>.&nbsp;Neither
the adoption of this Plan by the Board nor its submission to the stockholders of the Company for approval shall be construed as
creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including,
without limitation, the granting of options and other awards otherwise than under this Plan, and such arrangements may be either
applicable generally or only in specific cases.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(h)&nbsp;&nbsp;<U>Not Compensation for Benefit Plans</U>.&nbsp;No
Award payable under this Plan shall be deemed salary or compensation for the purpose of computing benefits under any benefit plan
or other arrangement of the Company for the benefit of its employees, consultants or directors unless the Company shall determine
otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(i)&nbsp;&nbsp;<U>No Fractional Shares</U>.&nbsp;No fractional
Shares shall be issued or delivered pursuant to this Plan or any Award. The Committee shall determine whether cash, other Awards,
or other property shall be issued or paid in lieu of such fractional Shares or whether such fractional Shares or any rights thereto
shall be forfeited or otherwise eliminated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(j)&nbsp;&nbsp;<U>Governing Law</U>.&nbsp;The validity, construction,
and effect of this Plan, any rules and regulations relating to this Plan, and any Award Agreement shall be determined in accordance
with the laws of the State of Delaware without giving effect to principles of conflict of laws thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(k)&nbsp;&nbsp;<U>Effective Date; Plan Termination</U>.&nbsp;This
Plan became effective as of the Effective Date. This Plan shall terminate as to future awards on May&nbsp;25, 2020 unless earlier
terminated or extended by amendment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(l)&nbsp;&nbsp;<U>Section&nbsp;409A</U>.&nbsp;Awards under this
Plan are intended to comply with, or be exempt from, the applicable requirements of Section&nbsp;409A of the Code and shall be
limited, construed and interpreted in accordance with such intent. Although the Company does not guarantee any particular tax treatment,
to the extent that any Award is subject to Section&nbsp;409A of the Code, it shall be paid in a manner that is intended to comply
with Section&nbsp;409A of the Code, including regulations and any other guidance issued by the Secretary of the Treasury and the
Internal Revenue Service with respect thereto. In no event whatsoever shall the Company be liable for any additional tax, interest
or penalties that may be imposed on a Participant by Section&nbsp;409A of the Code or any damages for failing to comply with Section&nbsp;409A
of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(m)&nbsp;&nbsp;<U>Change of Domicile</U>.&nbsp;This Plan has
been amended and restated to give effect to the Company&rsquo;s change of its jurisdiction of incorporation from Bermuda to Delaware
(the &ldquo;Domestication&rdquo;), effective December&nbsp;31, 2011 (the &ldquo;Domestication Effective Date&rdquo;). To the extent
that Shares are required to, or may, be issued pursuant to an Award, shares of common stock of XOMA Corporation, a Delaware corporation,
will be issued upon exercise or payment of any such Award previously or hereafter granted under this Plan, including Awards that
were outstanding prior to the Domestication Effective Date. Until surrendered and exchanged, each certificate delivered to a Participant
pursuant to this Plan and evidencing outstanding Shares immediately prior to the Domestication Effective Date shall, for all purposes
of this Plan and the Shares, continue to evidence the identical amount and number of outstanding Shares at and after the Domestication
Effective Date. After the Domestication Effective Date, the Company may make such modifications in the certificates evidencing
(and the form of) the Shares as it deems necessary to reflect the substance of the changes to this Plan relating to the Domestication,
but no such modifications shall be necessary to reflect the substance thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(n)&nbsp;&nbsp;<U>Titles and Headings</U>.&nbsp;The titles and
headings of the sections in this Plan are for convenience of reference only. In the event of any conflict, the text of this Plan,
rather than such titles or headings, shall control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



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<P STYLE="margin: 0; text-align: right"><B>Exhibit 10.2</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 3.9pt 175.35pt 0 176.5pt"><B>XOMA CORPORATION</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0 129.15pt 0 130.4pt"><B>2016 INCENTIVE COMPENSATION PLAN</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0 129.15pt 0 130.4pt"><B>&nbsp;</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>SECTION 1</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>BACKGROUND AND PURPOSE</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0 155.3pt 0 156.45pt"><B>&nbsp;</B></P>

<P STYLE="font-size: 10pt; margin: 0 0 0 41pt">1.1&#9;<U>Effective Date</U>. The Plan is adopted effective as of February 25, 2016.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 1.6pt 2.25pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 1.6pt 2.25pt 0 5pt">1.2&#9;<U>Purpose of the Plan</U>. The purpose of the
Plan is: (1) to motivate, attract, reward and retain highly qualified employees who are important to the Company&rsquo;s success,
and (2) to provide competitive compensation incentives relating directly to the financial performance and long-term growth of the
Company. The Plan is intended to permit the payment of bonuses that qualify as Performance-Based Compensation.</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0 207.2pt 0 208.3pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>SECTION 2</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>DEFINITIONS</B></P>

<P STYLE="font-size: 10pt; margin: 0 7.35pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0 7.35pt 0 5pt">The following words and phrases shall have the following meanings unless a different
meaning is plainly required by the context:</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 8.1pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 8.1pt 0 5pt">2.1&#9;&ldquo;<U>Actual Award</U>&rdquo; means as to any
Performance Period, the actual award (if any) payable to a Participant for the Performance Period. Each Actual Award is determined
by the Payout Formula for the Performance Period, subject to the Committee&rsquo;s authority under Section 3.6 to modify the award
otherwise determined by the Payout Formula.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 50.7pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 50.7pt 0 5pt">2.2&#9;&ldquo;<U>Affiliate</U>&rdquo; means any corporation
or other entity (including, but not limited to, partnerships and joint ventures) controlled by the Company.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 16.1pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 16.1pt 0 5pt">2.3&#9;&ldquo;<U>Base Salary</U>&rdquo; means as to any
Performance Period, the Participant&rsquo;s annualized salary rate for the Performance Period. Such Base Salary shall be determined
before both (a) deductions for taxes or benefits, and (b) deferrals of compensation pursuant to any Company or Affiliate sponsored
plans.</P>

<P STYLE="font-size: 10pt; margin: 0 0 0 41pt">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0 0 0 41pt">2.4&#9;&ldquo;<U>Board</U>&rdquo; means the Board of Directors of the Company.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 1.6pt 7.65pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 1.6pt 7.65pt 0 5pt">2.5&#9;&ldquo;<U>Code</U>&rdquo; means the Internal
Revenue Code of 1986, as amended. Reference to a specific section of the Code or regulation thereunder shall include such section
or regulation, any valid regulation promulgated thereunder, and any comparable provision of any future legislation or regulation
amending, supplementing or superseding such section or regulation.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 8.85pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 8.85pt 0 5pt">2.6&#9;&ldquo;<U>Committee</U>&rdquo; means the Compensation
Committee of the Board, or any other committee appointed by the Board (pursuant to Section 5.1) to administer the Plan.</P>

<P STYLE="font-size: 10pt; margin: 0 0 0 5pt">thereto.</P>

<P STYLE="font-size: 10pt; margin: 0 0 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 8.85pt 0 5pt">2.7&#9;&ldquo;<U>Company</U>&rdquo; means XOMA Corporation, a Delaware corporation,
or any successor</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 1.6pt 10.45pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 1.6pt 10.45pt 0 5pt">2.8&#9;&ldquo;<U>Determination Date</U>&rdquo; means
as to an award intended to qualify as Performance-Based Compensation, the latest possible date that will not jeopardize the award&rsquo;s
qualification as Performance- Based Compensation.</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 3.7pt 33.25pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 3.7pt 33.25pt 0 5pt"></P>

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<P STYLE="font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 3.7pt 33.25pt 0 5pt">2.9 &ldquo;<U> Empl oyee &rdquo;
</U> means any employee of the Company or of an Affiliate, whether such employee is so employed at the time the Plan is adopted
or becomes so employed subsequent to the adoption of the Plan.</P>

<P STYLE="font-size: 10pt; margin: 0 0 0 41pt">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0 0 0 41pt">2.10&#9;&ldquo;<U>Fiscal Year</U>&rdquo; means the fiscal year of the Company.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 1.6pt 23.95pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 1.6pt 23.95pt 0 5pt">2.11&#9;&ldquo;<U>Maximum Award</U>&rdquo; means any
maximum adopted by the Committee as to any Participant for any Performance Period. With respect to an award intended to qualify
as Performance Based Compensation such maximum will be formalized in the Plan document and approved by the Company&rsquo;s stockholders.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 14.6pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 14.6pt 0 5pt">2.12&#9;&ldquo;<U>Participant</U>&rdquo; means as to any
Performance Period, an Employee who has been selected by the Committee for participation in the Plan for that Performance Period.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 9pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 9pt 0 5pt">2.13&#9;&ldquo;<U> Payout Formul a&rdquo; </U> means as to
any Performance Period, the formula or payout matrix established by the Committee pursuant to Section 3.4 in order to determine
the Actual Awards (if any) to be paid to Participants. The formula or matrix may differ from Participant to Participant.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 9pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 9pt 0 5pt">2.14&#9;&ldquo;<U>Performance-Based Compensation</U>&rdquo;
means bonuses under the Plan qualifying as &ldquo;performance-based compensation&rdquo; under Section 162(m) of the Code.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 13.7pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 13.7pt 0 5pt">2.15&#9;&ldquo;<U>Performance Goals</U>&rdquo; means the
goal(s) (or combined goal(s)) determined by the Committee (in its discretion) to be applicable to a Participant for a Target Award
for a Performance Period. As determined by the Committee, the Performance Goals for any Target Award applicable to a Participant
may provide for a targeted level or levels of achievement using measures including one or more of the following measures: (i)
share price, (ii) earnings per share, (iii) total stockholder return, (iv) operating margin, (v) gross margin, (vi) return on
equity, (vii) return on assets, (viii) return on investment, (ix) operating income, (x) net operating income, (xi) pre-tax profit,
(xii) cash flow, (xiii) revenue, (xiv) expenses, (xv) earnings before interest, taxes and depreciation, (xvi) economic value added,
(xvii) market share, (xviii) net income, (xix) personal goals, (xx) sales, (xxi) improvements in capital structure, (xxii) earnings
before interest, taxes and amortization, (xxiii) budget comparisons, (xxiv) controllable profits, (xxv) expense management, (xxvi)
improvements in capital structure), (xxvii) profit margins, (xxviii) operating or gross margin, (xxix) profitability of an identifiable
business unit or product, (xxx) cash flow, operating cash flow, or cash flow or operating cash flow per share, (xxxi) reduction
in costs, (xxxii) return on capital, (xxxiii) improvement in or attainment of expense levels or working capital level, and (xxxiv)
earnings before interest, taxes, depreciation and amortization. The performance criteria may be applicable to the Company or an
Affiliate as a whole or a segment of the Company or an Affiliate. In addition, with respect to awards intended to qualify as Performance-Based
Compensation, the performance criteria shall be calculated in accordance with generally accepted accounting principles, but excluding
the effect (whether positive or negative) of any change in accounting standards and any extraordinary, unusual or nonrecurring
item, as determined by the Committee, occurring after the establishment of the Performance Goals for the Performance Period. Each
such adjustment, if any, shall be made solely for the purpose of providing a consistent basis from period to period for the calculation
of the Performance Goals in order to prevent the dilution or enlargement of a Participant&rsquo;s rights with respect to an award
intended to qualify as Performance-Based Compensation. The Performance Goals may differ from Participant to Participant and from
award to award. Awards not intended to qualify as Performance-Based Compensation may take into account other measures, including
subjective measures. With respect to awards not intended to qualify as Performance-Based Compensation, the performance criteria
may include the effect (whether positive or negative) of any change in accounting standards and any extraordinary, unusual or
nonrecurring item, as determined by the Committee, occurring after the establishment of the Performance Goals for the Performance
Period.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 3.85pt 3.4pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 3.85pt 3.4pt 0 5pt"></P>

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<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 3.85pt 3.4pt 0 5pt">2.16&#9;&ldquo;<U>Performance Period</U>&rdquo; means
any period of time which does not exceed five Fiscal Years, as determined by the Committee in its sole discretion.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 13.45pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 13.45pt 0 5pt">2.17&#9;&ldquo;<U>Plan</U>&rdquo; means the XOMA Corporation
Incentive Compensation Plan, as set forth in this instrument and as hereafter amended from time to time.</P>

<P STYLE="font-size: 10pt; margin: 0 0 0 41pt">&nbsp;</P>

<P STYLE="font-size: 10pt; margin: 0 0 0 41pt">2.18&#9;&ldquo;<U>Shares</U>&rdquo; means shares of the Company&rsquo;s common stock.</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 1.6pt 16.8pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: justify; text-indent: 0.5in; margin: 1.6pt 16.8pt 0 5pt">2.19 <U> &ldquo; Target Award</U>&rdquo;
means the target award payable under the Plan to a Participant for the Performance Period, expressed as a percentage of his or
her Base Salary or a specific dollar amount, as determined by the Committee in accordance with Section 3.3.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 7.35pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 7.35pt 0 5pt">2.20&#9;&ldquo;<U>Termination of Employment</U>&rdquo; means
a cessation of the employee-employer relationship between an Employee and the Company or an Affiliate for any reason, including,
but not by way of limitation, a termination by resignation, discharge, death, disability, retirement, or the disaffiliation of
an Affiliate, but excluding any such termination where there is a simultaneous reemployment by the Company or an Affiliate.</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0 207.2pt 0 208.3pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>SECTION 3</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0.05pt 54.55pt 0 55.65pt"><B>SELECTION OF PARTICIPANTS AND DETERMINATION
OF AWARDS</B></P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 0.05in 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 0.05in 0 5pt">3.1&#9;<U>Selection of Participants</U><I>. </I>The Committee,
in its sole discretion, shall select the Employees who shall be Participants for any Performance Period. The Committee, in its
sole discretion, may also designate as Participants one or more individuals (by name or position) who are expected to become Employees
during a Performance Period. Participation in the Plan is in the sole discretion of the Committee, and on a Performance Period
by Performance Period basis. Accordingly, an Employee who is a Participant for a given Performance Period in no way is guaranteed
or assured of being selected for participation in any subsequent Performance Period.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 2.25pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 2.25pt 0 5pt">3.2&#9;<U>Determination of Performance Goals</U>. The Committee,
in its sole discretion, shall establish the Performance Goals for each Participant for the Performance Period. Such Performance
Goals shall be set forth in writing. The Committee may also provide for discretionary awards that do not require achievement of
Performance Goals.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 8.2pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 8.2pt 0 5pt">3.3&#9;<U>Determination of Target Awards</U>. The Committee,
in its sole discretion, shall establish a Target Award for each Participant. Each Participant&rsquo;s Target Award shall be determined
by the Committee in its sole discretion, and each Target Award shall be set forth in writing.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 2.2pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 2.2pt 0 5pt">3.4&#9;<U>Determination of Payout Formula or Formulae</U>.
The Committee, in its sole discretion, shall establish a Payout Formula or Formulae for purposes of determining the Actual Award
(if any) payable to each Participant. Each Payout Formula shall (a) be in writing, (b) be based on a comparison of actual performance
to the Performance Goals, (c) provide for the payment of a Participant&rsquo;s Target Award if the Performance Goals for the Performance
Period are achieved, and (d) provide for an Actual Award greater than or less than the Participant&rsquo;s Target Award, depending
upon the extent to which actual performance exceeds or falls below the Performance Goals. The portion of an award that is discretionary
may result in an Actual Award not tied to performance against a Performance Goal. Notwithstanding the preceding, with respect to
an Actual Award intended to qualify as Performance-Based Compensation, in no event shall a Participant&rsquo;s Actual Award for
any Performance Period exceed his or her Maximum Award.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 3.7pt 15.1pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 3.7pt 15.1pt 0 5pt"></P>

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<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 3.7pt 15.1pt 0 5pt">3.5&#9;<U>Date for Determinations</U>. With respect
to awards intended to qualify as Performance- Based Compensation, the Committee shall make all determinations under Section 3.1
through 3.4 on or before the Determination Date.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 2.4pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 2.4pt 0 5pt">3.6&#9;<U>Determination of Actual Awards</U>. After
the end of each Performance Period, the Committee shall certify in writing the extent to which the Performance Goals
applicable to each Participant for the Performance Period were achieved or exceeded. The Actual Award for each Participant
shall be determined by applying the Payout Formula to the level of actual performance that has been certified by the
Committee and adding to the result any discretionary component. Notwithstanding any contrary provision of the Plan, the
Committee, in its sole discretion, may (a) eliminate or reduce the Actual Award payable to any Participant below that which
otherwise would be payable under the Payout Formula, and (b) determine whether, to what extent and under what circumstances a
Participant will receive an Actual Award in the event the Participant incurs a Termination of Employment prior to the date
the Actual Award is to be paid. In addition, notwithstanding any contrary provision of the Plan, with respect to an Actual
Award not intended to qualify as Performance-Based Compensation, the Committee, in its sole discretion, may increase the
Actual Award payable to any Participant above that which otherwise would be payable under the Payout Formula. To the extent
in compliance with Section 162(m) of the Code for awards intended to qualify as Performance-Based Compensation, for any
Performance Period, the Committee may make such other or additional awards to any Participant as it deems appropriate, so
long as the aggregate awards made under the Plan do not exceed the maximum reserved pool of cash available for awards for the
Performance Period (if a maximum has been established by the</P>

<P STYLE="font-size: 10pt; margin: 0 0 0 5pt">Committee).</P>

<P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>SECTION 4</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>PAYMENT OF AWARDS</B></P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 6.85pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 6.85pt 0 5pt">4.1&#9;<U>Right to Receive Payment</U><I>. </I>Each Actual
Award that may become payable under the Plan shall be paid solely from the general assets of the Company or the Affiliate that
employs the Participant (as the case may be), as determined by the Committee. Nothing in this Plan shall be construed to create
a trust or to establish or evidence any Participant&rsquo;s claim of any right to payment of an Actual Award other than as an unsecured
general creditor with respect to any payment to which he or she may be entitled. If the Committee determines as of the date of
grant of an award that the award is intended to qualify as Performance-Based Compensation, no amount will be paid pursuant to such
award until any stockholder approval required under Section 162(m) of the Code has been obtained.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 9.25pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 9.25pt 0 5pt">4.2&#9;<U>Timing of Payment</U>. Subject to Section 3.6
and Section 6.7, payment of each Actual Award shall be made as soon as administratively practicable. It is intended that, absent
special circumstances, performance will be determined within fifteen (15) days of the end of a Performance Period, and the Actual
Award will be paid within fifteen (15) days after the Committee makes its determination. In no event will payment be made later
than March 15 of the calendar year following the calendar year which includes the last day of the Performance Period during which
the award was earned.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 6.35pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 6.35pt 0 5pt">4.3&#9;<U>Form of Payment</U>. Each Actual Award normally
shall be paid in cash (or its equivalent) in a single lump sum. However, the Committee, in its sole discretion, may declare any
Actual Award, in whole or in part, payable in Shares of restricted stock, restricted stock units, options and/or other stock awards
granted under one of the Company&rsquo;s stock plans. The number of Shares of restricted stock, restricted stock units, options
and/or other stock awards granted shall be determined in the sole discretion of the Committee.</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 3.9pt 208.2pt 0 208.3pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 3.9pt 208.2pt 0 208.3pt"></P>

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<P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>SECTION 5</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>ADMINISTRATION</B></P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 6.25pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 6.25pt 0 5pt">5.1&#9;<U>Committee is the Administrator</U><I>. </I>The
Plan shall be administered by the Committee. With respect to awards intended to qualify as Performance-Based Compensation, the
Committee shall consist of not less than two (2) members of the Board. The members of the Committee shall be appointed from time
to time by, and serve at the pleasure of, the Board. With respect to awards intended to qualify as Performance-Based Compensation,
each member of the Committee shall qualify as an &ldquo;outside director&rdquo; under Section 162(m) of the Code. If it is later
determined that one or more members of the Committee do not so qualify, actions taken by the Committee prior to such determination
shall be valid despite such</P>

<P STYLE="font-size: 10pt; margin: 0 0 0 5pt">failure to qualify.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 3.9pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 3.9pt 0 5pt">5.2&#9;<U>Committee Authority</U>. It shall be the duty
of the Committee to administer the Plan in accordance with the Plan&rsquo;s provisions. The Committee shall have all powers and
discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power
to (a) determine which Employees shall be granted awards, (b) prescribe the terms and conditions of awards, (c) interpret the
Plan and the awards, (d) adopt such procedures and subplans as are necessary or appropriate to permit participation in the Plan
by Employees who are foreign nationals or employed outside of the United States, (e) bifurcate the Plan and treat Participants
differently as provided by Section 8.1, (f) adopt rules for the administration, interpretation and application of the Plan as
are consistent therewith, and (g) interpret, amend or revoke any such rules.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 5.25pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 5.25pt 0 5pt">5.3&#9;<U>Decisions Binding</U>. All determinations and
decisions made by the Committee, the Board, and any delegate of the Committee pursuant to the provisions of the Plan shall be final,
conclusive, and binding on all persons, and shall be given the maximum deference permitted by law.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 11.9pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 11.9pt 0 5pt">5.4&#9;<U>Delegation by the Committee</U>. The Committee,
in its sole discretion and on such terms and conditions as it may provide, may delegate all or part of its authority and powers
under the Plan to one or more directors and/or officers of the Company; provided, however, that the Committee may delegate its
authority and powers only with respect to awards that are not intended to qualify as Performance-Based Compensation and only to
the extent consistent with the rules and regulations of the principal securities market on which the Company&rsquo;s securities
are listed or qualified for trading.</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0 208.2pt 0 208.3pt"><B>&nbsp;</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>SECTION 6</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>GENERAL PROVISIONS</B></P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 12.95pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 12.95pt 0 5pt">6.1&#9;<U>Tax Withholding</U><I>. </I>The Company or an
Affiliate, as determined by the Committee, shall withhold all applicable taxes from any Actual Award, including any federal, state
and local taxes.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 4.05pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 4.05pt 0 5pt">6.2&#9;<U>No Effect on Employment</U>. Nothing in the Plan
shall interfere with or limit in any way the right of the Company or an Affiliate, as applicable, to terminate any Participant&rsquo;s
employment or service at any time, with or without cause. For purposes of the Plan, transfer of employment of a Participant between
the Company and any one of its Affiliates (or between Affiliates) shall not be deemed a Termination of Employment. Employment with
the Company and its Affiliates is on an at-will basis only. Except as may be provided in an employment contract with the Participant,
the Company expressly reserves the right, which may be exercised at any time and without regard to when during or after a Performance
Period such exercise occurs, to terminate any individual&rsquo;s employment or service with or without cause, and to treat him
or her without regard to the effect which such treatment might have upon him or her as a Participant.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 3.7pt 6.2pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 3.7pt 6.2pt 0 5pt"></P>

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<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 3.7pt 6.2pt 0 5pt">6.3&#9;<U>Participation</U>. No Employee shall have the
right to be selected to receive an award under this Plan, or, having been so selected, to be selected to receive a future award.
Participation in this Plan shall not give any Employee the right to participate in any other benefit, stock or deferred compensation
plan of the Company or any Affiliate.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 27.8pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 27.8pt 0 5pt">6.4&#9;<U>Successors</U>. All obligations of the Company
under the Plan, with respect to awards granted hereunder, shall be binding on any successor to the Company, whether the existence
of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially
all of the business or assets of the Company.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 4.2pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 4.2pt 0 5pt">6.5&#9;<U>Beneficiary Designations</U>. If permitted by the
Committee, a Participant under the Plan may name a beneficiary or beneficiaries to whom any vested but unpaid award shall be paid
in the event of the Participant&rsquo;s death. Each such designation shall revoke all prior designations by the Participant and
shall be effective only if given in a form and manner acceptable to the Committee. In the absence of any such designation, any
vested benefits remaining unpaid at the Participant&rsquo;s death shall be paid to the Participant&rsquo;s estate.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 2.35pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 2.35pt 0 5pt">6.6&#9;<U>Nontransferability of Awards</U>. No award granted
under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, by the
laws of descent and distribution, or to the limited extent provided in Section 6.6. All rights with respect to an award granted
to a Participant shall be available during his or her lifetime only to the Participant.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 2.1pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 2.1pt 0 5pt">6.7&#9;<U>Deferrals</U>. The Committee, in its sole discretion,
may permit a Participant to defer receipt of the payment of cash or stock that would otherwise be delivered to a Participant under
the Plan. Any such deferral elections shall be subject to such rules and procedures as shall be determined by the Committee in
its sole discretion.</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0 206.2pt 0 208.3pt"><B>&nbsp;</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>SECTION 7</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>AMENDMENT, TERMINATION AND DURATION</B></P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 12.55pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 12.55pt 0 5pt">7.1&#9;<U>Amendment, Suspension or Termination</U><I>.
</I>The Board or the Committee, each in its sole discretion, may amend or terminate the Plan, or any part thereof, at any time
and for any reason. No award may be granted during any period of suspension or after termination of the Plan.</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 6.85pt 0 5pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 6.85pt 0 5pt">7.2&#9;<U>Duration of the Plan</U>. The Plan shall commence
on the date specified herein, and subject to Section 7.1 (regarding the Board&rsquo;s or the Committee&rsquo;s right to amend or
terminate the Plan), shall remain in effect thereafter.</P>

<P STYLE="font-size: 10pt; text-align: center; margin: 0 206.2pt 0 208.3pt">&nbsp;</P>

<P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>SECTION 8</B></P>

<P STYLE="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><B>LEGAL CONSTRUCTION</B></P>

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<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 4.35pt 0 5pt">8.1&#9;<U>Section 162(m) Conditions; Bifurcation of Plan</U>.
With respect to awards intended to qualify as Performance-Based Compensation, it is the intent of the Company that the Plan and
the awards paid under the Plan satisfy any applicable requirements of Section 162(m) of the Code, and, with respect to such awards,
any provision, application or interpretation of the Plan inconsistent with this intent shall be disregarded. The provisions of
the Plan may be bifurcated by the Board or the Committee at any time so that certain provisions of the Plan, or any award, required
in order to satisfy the requirements of Section 162(m) of the Code are only applicable to awards intended to qualify as Performance-Based
Compensation. Notwithstanding the foregoing, the Committee may, in its sole discretion, grant awards under the Plan that are not
intended to qualify as Performance-Based Compensation.</P>

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<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 3.7pt 2.3pt 0 5pt">8.2&#9;<U>Gender and Number</U>. Except where otherwise
indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular
and the singular shall include the plural.</P>

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<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 3.45pt 0 5pt">8.3&#9;<U>Severability</U>. In the event any provision of
the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of
the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.</P>

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<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 17.6pt 0 5pt">8.4&#9;<U>Requirements of Law</U>. The granting of awards
under the Plan shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies
or national securities exchanges as may be required.</P>

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<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 28.15pt 0 5pt">8.5&#9;<U>Governing Law</U>. The Plan and all awards shall
be construed in accordance with and governed by the laws of the State of California, but without regard to its conflict of law
provisions.</P>

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<P STYLE="font-size: 10pt; text-indent: 0.5in; margin: 0 20.4pt 0 5pt">8.6&#9;<U>Captions</U>. Captions are provided herein for
convenience only, and shall not serve as a basis for interpretation or construction of the Plan.</P>



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<P STYLE="margin-top: 0; margin-bottom: 0; text-align: center">7</P>

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