Document:

Exhibit 10.36

                                                                    EXHIBIT 10.36

PROTEIN DESIGN LABS, INC.
        OUTSIDE DIRECTORS STOCK OPTION PLAN

(As amended June 29, 2000)

        1.      Purpose.  The Protein Design Labs, Inc. Outside Directors Stock
Option Plan (the "Plan") is established to create additional incentive for the
non-employee directors of Protein Design Labs, Inc. and any successor
corporation thereto (collectively referred to as the "Company"), to promote
the financial success and progress of the Company and any present or future
parent and/or subsidiary corporations of the Company (all of whom along with
the Company being individually referred to as a "Participating Company" and
collectively referred to as the "Participating Company Group").  The Plan
shall be effective as of the date it is approved by the stockholders of the
Company (the "Effective Date").  For purposes of the Plan, a parent
corporation and a subsidiary corporation shall be as defined in sections
424(e) and 424(f) of the Internal Revenue Code of 1986, as amended (the
"Code").

        2.      Administration.  The Plan shall be administered by the Board of
Directors of the Company (the "Board") and/or by a duly appointed committee of
the Board having such powers as shall be specified by the Board.  Any
subsequent references herein to the Board shall also mean the committee if
such committee has been appointed and, unless the powers of the committee have
been specifically limited, the committee shall have all of the powers of the
Board granted herein, including, without limitation, the power to terminate or
amend the Plan at any time, subject to the terms of the Plan and any
applicable limitations imposed by law.  The Board shall have no authority,
discretion, or power to select which non-employee directors of the Company
will receive options under the Plan, to set the exercise price of the options
granted under the Plan, to determine the number of shares of common stock to
be granted under an option or the time at which any  options are to be
granted, to establish the duration of option grants, or alter any other terms
or conditions specified in the Plan, except in the sense of administering or
amending the Plan subject to the provisions of the Plan.  All questions of
interpretation of the Plan or of any options granted under the Plan (an
"Option") shall be determined by the Board, and such determinations shall be
final and binding upon all persons having an interest in the Plan and/or any
Option.  The Chief Executive Officer, President or General Counsel of the
Company shall have the authority to act on behalf of the Company with respect
to any matter, right, obligation, or election which is the responsibility of
or which is allocated to the Company herein.

        3.      Eligibility and Type of Option.  Options may be granted only to
directors of the Company who are not employees of the Company or any present
parent and/or subsidiary corporations of the Company ("Outside Directors").
Options granted to Outside Directors shall be nonqualified stock options;
that is, options which are not treated as having been granted under section
422(b) of the Code.

        4.      Shares Subject to Option.  Options shall be for the purchase of
shares of the authorized but unissued common stock or treasury shares of
common stock of the Company (the "Stock"), subject to adjustment as provided
in paragraph 8 below.  The maximum number of shares of Stock which may be
issued under the Plan shall be two hundred thousand (200,000) shares.  In the
event that any outstanding Option for any reason expires or is terminated
and/or shares of Stock subject to repurchase are repurchased by the Company,
the shares allocable to the unexercised portion of such Option, or such
repurchased shares, may again be subject to an Option grant.

        5.      Time for Granting Options.  All Options shall be granted, if at
all, within ten (10) years from the Effective Date.

        6.      Terms, Conditions and Form of Options.  Options granted pursuant
to the Plan shall be evidenced by written agreements specifying the number of
shares of Stock covered thereby, in substantially the form attached hereto as
Exhibit A (the "Option Agreement"), which written agreements may incorporate
all or any of the terms of the Plan by reference and shall comply with and be
subject to the following terms and conditions:

                (a)     Automatic Grant of Options.  Subject to execution by each
Outside Director of an Option Agreement, options shall be granted
automatically and without further action of the Board, as follows:

                        (i)     Each person who is newly appointed or elected as an
Outside Director after February 6, 1997 or who becomes an Outside Director as
a result of ceasing to be an employee of the Company or any parent or
subsidiary corporation of the Company after June 29, 2000 (a "Future Outside
Director") shall be granted an Option for thirty thousand (30,000) shares of
Stock upon the date such person becomes an Outside Director.

                        (ii)    Each Outside Director shall be granted an Option for
thirty thousand (30,000) shares of Stock upon the fifth Anniversary Date (as
defined below) and each subsequent five year Anniversary Date thereafter
(e.g., 10th, 15th, etc.) of such Outside Director.

                        (iii)   The Anniversary Date of each Outside Director shall be
the date the Outside Director became an Outside Director except that if he or
she elected not to receive an option at that time under paragraph 6(a)(iv)
then his or her Anniversary Date shall be the date upon which he or she was
first granted an Option under the Plan.  If an Outside Director subsequently
elects not to receive an Option and later revokes that election, his or her
Anniversary Date may be adjusted as provided in paragraph 6(a)(iv).

                        (iv)    Notwithstanding the foregoing, any Outside Director
may elect not to receive an Option granted pursuant to this paragraph 6(a) by
delivering written notice of such election to the Board no later than the day
prior to the date such Option would otherwise be granted.  A person so
declining an Option shall receive no payment or other consideration in lieu of
such declined Option.  An Outside Director who has declined an Option may
revoke such election by delivering written notice of such revocation to the
Board, in which event such Outside Director shall be automatically granted an
Option on the later of the date the Option would otherwise have been granted
to such Outside Director or the date of such notice (and in such latter event
the Outside Director's Anniversary Date shall then become the date of such
notice).

                        (v)     Notwithstanding any other provision of the Plan, no
Option shall be granted to any individual on his or her Anniversary Date when
he or she is no longer serving as an Outside Director of the Company on such
Anniversary Date.

                (b)     Option Exercise Price.  The Option exercise price per share
of Stock for an Option shall be the fair market value of a share of the common
stock of the Company on the date of the granting of the Option.  Where there
is a public market for the common stock of the Company, the fair market value
per share of Stock shall be the mean of the bid and asked prices of the common
stock of the Company on the date of the granting of the Option, as reported in
the Wall Street Journal (or, if not so reported, as otherwise reported by the
National Association of Securities Dealers Automated Quotation ("NASDAQ")
System) or, in the event the common stock of the Company is listed on the
NASDAQ National Market System or a national or regional securities exchange,
the fair market value per share of Stock shall be the closing price on such
National Market System or exchange on the date of the granting of the Option,
as reported in the Wall Street Journal.  If the date of the granting of an
Option does not fall on a day on which the common stock of the Company is
trading on the NASDAQ National Market System or other national or regional
securities exchange, the date on which the Option exercise price per share
shall be established shall be the last day on which the common stock of the
Company was so traded prior to the date of the granting of the Option.

                (c)     Exercise Period and Exercisability of Options.  An Option
granted pursuant to the Plan shall be exercisable for a term of ten (10)
years.  Options granted pursuant to the Plan shall become exercisable over a
sixty (60) month period commencing one (1) month after the date of grant as
provided in the form of Option Agreement.

                (d)     Payment of Option Exercise Price.  Payment of the Option
exercise price for the number of shares of Stock being purchased pursuant to
any Option shall be made (i) in cash, by check, or in cash equivalent, (ii) by
the assignment of the proceeds of a sale of some or all of the shares being
acquired upon the exercise of an Option (including, without limitation,
through an exercise complying with the provisions of Regulation T as
promulgated from time to time by the Board of Governors of the Federal Reserve
System), or (iii) by any combination thereof.  The Company reserves, at any
and all times, the right, in the Company's sole and absolute discretion, to
establish, decline to approve and/or terminate any program and/or procedure
for the exercise of Options by means of an assignment of the proceeds of a
sale of some or all of the shares of Stock to be acquired upon such exercise.

                (e)     Transfer of Control.  A "Transfer of Control" shall be
deemed to have occurred in the event any of the following occurs with respect
to the Company:

                        (i)     any acquisition of the Company's stock or any
reorganization as defined in section 368(a)(1) of the Code to which the
Company is a party as defined in section 368(b) of the Code and in which the
Company is not the surviving corporation or is not immediately after the
reorganization engaged in the active conduct of a trade or business or in
which the stockholders of the Company will own less than fifty percent (50%)
of the voting securities of the surviving corporation; or

                        (ii)    any sale or conveyance of substantially all of the net
assets of the Company, unless immediately after such sale the Company is
engaged in the active conduct of a trade or business.

        In the event of a Transfer of Control, the surviving, continuing,
successor, or purchasing corporation, as the case may be (the "Acquiring
Corporation"), shall either assume the Company's rights and obligations under
outstanding stock option agreements or substitute options for the Acquiring
Corporation's stock for such outstanding Options unless the Company's Board
otherwise agrees.  In the event that, with the Board's consent, the Acquiring
Corporation elects not to assume or substitute for such outstanding Options in
connection with a merger in which the Company is not the surviving corporation
or a reverse triangular merger in which the Company is the surviving
corporation where the stockholders of the Company before such merger do not
retain, directly or indirectly, at least a majority of the beneficial interest
in the voting stock of the Company after such merger, the Board may, but shall
not be obligated to, provide that any unexercisable and/or unvested portion of
the outstanding Options shall be immediately exercisable and vested as of a
date prior to the Transfer of Control, as the Board so determines.  The
exercise and/or vesting of any Option that was permissible solely by reason of
this paragraph 6(e) shall be conditioned upon the consummation of the Transfer
of Control.  Any Options which are neither assumed or substituted for by the
Acquiring Corporation nor exercised as of the date of the Transfer of Control
shall terminate effective as of the date of the Transfer of Control.

        7.      Authority to Vary Terms.  The Board shall have the authority from
time to time to vary the terms of the Option Agreement either in connection
with the grant of an individual Option or in connection with the authorization
of a new standard form or forms; provided, however, that the terms and
conditions of such revised or amended standard form or forms of Option
Agreement shall be in accordance with the terms of the Plan.  Such authority
shall include, but not by way of limitation, the authority to grant Options
which are immediately exercisable subject to the Company's right to repurchase
any unvested shares of Stock acquired by the Optionee on exercise of an Option
in the event such Optionee's service as a director of the Company is
terminated for any reason.

        8.      Effect of Change in Stock Subject to Plan.  Appropriate
adjustments shall be made in the number and class of shares of Stock subject
to the Plan and to any outstanding Options and in the Option exercise price of
any outstanding Options in the event of a stock dividend, stock split, reverse
stock split, combination, reclassification, or like change in the capital
structure of the Company.

        9.      Options Non-Transferable.  Except as may be permitted by the Board
and expressly provided in an Option agreement granted by the Board, Options
may not be assigned or transferred by an Optionee except by will or by the
laws of descent and distribution.

        10.     Termination or Amendment of Plan.  The Board, including any duly
appointed committee of the Board, may terminate or amend the Plan at any time;
provided, however, that without the approval of the stockholders of the
Company, there shall be (a) no increase in the total number of shares of Stock
covered by the Plan (except by operation of the provisions of paragraph 8
above), and (b) no expansion in the class of persons eligible to receive
Options.  In any event, no amendment may adversely affect any then outstanding
Option, or any unexercised portion thereof, without the consent of the
Optionee.

        IN WITNESS WHEREOF, the undersigned Secretary of the Company certifies
that the foregoing Protein Design Labs, Inc. Outside Directors Stock Option
Plan was approved by the stockholders of the Company at the Annual Meeting of
Stockholders on the twentieth day of October, 1992, and subsequently amended
by the Board on October 17, 1996, February 6, 1997 and June 29, 2000, in
accordance with applicable laws and the terms of the Plan.

Date:

By:

        Douglas O. Ebersole

        Secretary

        EXHIBIT A

        PROTEIN DESIGN LABS, INC.
        NONQUALIFIED STOCK OPTION AGREEMENT
        FOR OUTSIDE DIRECTORS

        Protein Design Labs, Inc., a Delaware corporation (the "Company"),
hereby grants to                              (the "Optionee") an option to
purchase a total of thirty thousand (30,000) shares of the common stock of the
Company (the "Number of Option Shares") under the Protein Design Labs, Inc.
Outside Directors Stock Option Plan (the "Plan"), at an exercise price of
$         per share and in the manner and subject to the provisions of this
Option Agreement (the "Option").  The grant, in all respects, is subject to
the terms and conditions of this Option Agreement and the Plan, the provisions
of which are incorporated by reference herein.  Unless otherwise provided in
this Option Agreement, defined terms shall have the meaning given to such
terms in the Plan.

        1.      Grant of the Option.  The Option is granted effective as of
                       (the "Date of Option Grant").  The Number of Option
Shares and the exercise price per share of the Option are subject to
adjustment from time to time as provided in the Plan.

        2.      Status of the Option.  The Option is intended to be a nonqualified
stock option and shall not be treated as an incentive stock option as
described in section 422 of the Internal Revenue Code of 1986, as amended.

        3.      Term of the Option.  The Option shall terminate and may no longer
be exercised on the first to occur of (i) the date ten (10) years after the
Date of Option Grant (the "Option Term Date"), (ii) the last date for
exercising the Option following termination of the Optionee's service as a
director of the Company as described in paragraph 6 below, or (iii) upon a
Transfer of Control of the Company as described in the Plan.

        4.      Exercise of the Option.

                (a)     Right to Exercise.  The Option shall first become
exercisable on the date occurring one (1) month after the Date of Option Grant
(the "Initial Exercise Date").  The Option shall be exercisable on and after
the Initial Exercise Date and prior to the termination of the Option in the
amount equal to the Number of Option Shares multiplied by the Vested Ratio as
set forth below less the number of shares previously acquired upon exercise of
the Option:

                                         Vested Ratio

Prior to Initial Exercise Date                0

On Initial Exercise Date,                    1/60
provided the Optionee has
continuously served as a
director of Company from the
Date of Option Grant until the
Initial Exercise Date

Plus

For each full month of the                   1/60
Optionee's continuous service
as a director of the Company
from the Initial Exercise Date

In no event shall the Vested
Ratio exceed 1/1.

In no event shall the Option be exercisable for more shares than the Number of
Option Shares.  Notwithstanding the foregoing, the Option may not be exercised
more frequently than twice in any continuous twelve (12) month period;
provided, however, that the foregoing restriction shall not apply so as to
prevent an exercise (i) following termination of the Optionee's service as a
director of the Company as described in paragraph 6 below or (ii) during the
thirty (30) day period immediately preceding a Transfer of Control of the
Company as described in the Plan.

                (b)     Method of Exercise.  The Option may be exercised by written
notice to the Company which must state the election to exercise the Option,
the number of shares of stock for which the Option is being exercised and such
other representations and agreements as to the Optionee's investment intent
with respect to such shares as may be required pursuant to the provisions of
this Option Agreement and the Plan.  The written notice must be signed by the
Optionee and must be delivered in person, by facsimile or by certified or
registered mail, return receipt requested, to the President of the Company, or
other authorized representative of the Participating Company Group, prior to
the termination of the Option as set forth in paragraph 3 above, accompanied
by full payment of the exercise price for the number of shares of stock being
purchased in a form permitted under the terms of the Plan.

                (c)     Withholding.  At the time the Option is exercised, in whole
or in part, or at any time thereafter as requested by the Company, the
Optionee shall make adequate provision for the foreign, federal and state tax
withholding obligations of the Company, if any, which arise in connection with
the Option including, without limitation, obligations arising upon (i) the
exercise, in whole or in part, of the Option, (ii) the transfer, in whole or
in part, of any shares of stock acquired on exercise of the Option, or (iii)
the lapsing of any restriction with respect to any shares acquired on exercise
of the Option.

                (d)     Certificate Registration.  The certificate or certificates
for the shares of stock as to which the Option shall be exercised shall be
registered in the name of the Optionee, or, if applicable, the heirs of the
Optionee.

                (e)     Restriction on Grant of the Option and Issuance of Shares.
The grant of the Option and the issuance of shares of stock on exercise of the
Option shall be subject to compliance with all of the applicable requirements
of federal or state law with respect to such securities.  The Option may not
be exercised if the issuance of shares of stock upon such exercise would
constitute a violation of any applicable federal or state securities laws or
other law or regulation.  In addition, no Option may be exercised unless (i) a
registration statement under the Securities Act of 1933, as amended (the
"Securities Act"), shall at the time of exercise of the Option be in effect
with respect to the shares of stock issuable upon exercise of the Option, or
(ii) in the opinion of legal counsel to the Company, the shares issuable upon
exercise of the Option may be issued in accordance with the terms of an
applicable exemption from the registration requirements of the Securities Act.
As a condition to the exercise of the Option, the Company may require the
Optionee to satisfy any qualifications that may be necessary or appropriate,
to evidence compliance with any applicable law or regulation and to make any
representation or warranty with respect thereto as may be requested by the
Company.

                (f)     Fractional Shares.  The Company shall not be required to
issue fractional shares of stock upon the exercise of the Option.

        5.      Non-Transferability of the Option.  The Option may be exercised
during the lifetime of the Optionee only by the Optionee and may not be
assigned or transferred in any manner except by will or by the laws of descent
and distribution.

        6.      Termination of Service as a Director.

                (a)     Termination of Director Status.  If the Optionee ceases to
be a director of the Company for any reason except death or disability within
the meaning of section 22(e)(3) of the Code, the Option, to the extent
unexercised and exercisable by the Optionee on the date on which the Optionee
ceased to be a director, may be exercised by the Optionee at any time prior to
the expiration of three (3) months from the date on which the Optionee's
service as a director of the Company terminated, but in any event no later
than the Option Term Date.  If the Optionee ceases to be a director of the
Company because of the death or disability of the Optionee within the meaning
of section 22(e)(3) of the Code, the Option, to the extent unexercised and
exercisable by the Optionee on the date on which the Optionee ceased to be a
director, may be exercised by the Optionee (or the Optionee's legal
representative) at any time prior to the expiration of twelve (12) months from
the date on which the Optionee's service as a director of the Company
terminated, but in any event no later than the Option Term Date.  The
Optionee's service as a director of the Company shall be deemed to have
terminated on account of death if the Optionee dies within three (3) months
after the Optionee's termination of service as a director of the Company.
Except as provided in this paragraph 6, an Option shall terminate and may not
be exercised after the Optionee ceases to be a director of the Company.

                (b)     Extension of Exercise Prevented by Law.  Notwithstanding the
foregoing, if the exercise of the Option within the applicable time periods
set forth above is prevented because the issuance of shares of stock upon such
exercise would constitute a violation of any applicable federal or state
securities law or other law or regulation, the Option shall remain exercisable
until three (3) months after the date the Optionee is notified by the Company
that the Option is exercisable, but in any event no later than the Option Term
Date.

                (c)     Extension if Optionee Subject to Section 16(b).
Notwithstanding the foregoing, if the exercise of the Option within the
applicable time periods set forth above would subject the Optionee to suit
under Section 16(b) of the Exchange Act, the Option shall remain exercisable
until the earliest to occur of (i) the tenth (10th) day following the date on
which the Optionee would no longer be subject to such suit, (ii) the one
hundred and ninetieth (190th) day after the Optionee's termination of service
as a director of the Company and (iii) the Option Term Date.

        7.      Rights as a Stockholder.  The Optionee shall have no rights as a
stockholder with respect to any shares of stock covered by the Option until
the date of the issuance of a certificate or certificates for the shares for
which the Option has been exercised.  No adjustment shall be made for
dividends or distributions or other rights for which the record date is prior
to the date such stock certificate or certificates are issued, except as
provided in the Plan.

        8.      Legends.  The Company may at any time place legends referencing
any applicable federal or state securities law restrictions on all
certificates representing shares of stock subject to the provisions of this
Option Agreement.  The Optionee shall, at the request of the Company, promptly
present to the Company any and all certificates representing shares of stock
acquired pursuant to the Option in the possession of the Optionee in order to
effectuate the provisions of this paragraph.

        9.      Binding Effect.  This Option Agreement shall inure to the benefit
of the successors and assigns of the Company and be binding upon the Company
and the Optionee and the Optionee's heirs, executors, administrators,
successors and assigns.

        10.     Termination or Amendment.  The Board, including any duly appointed
committee of the Board, may terminate or amend the Plan and/or the Option at
any time subject to any limitations described in the Plan; provided, however,
that no such termination or amendment may adversely affect the Option or any
unexercised portion hereof without the consent of the Optionee.

        11.     Integrated Agreement.  This Option Agreement and the Plan
constitute the entire understanding and agreement of the Optionee and the
Company with respect to the subject matter contained herein and therein, and
there are no agreements, understandings, restrictions, representations, or
warranties among the Optionee and the Company other than those as set forth or
provided for herein or therein.  To the extent contemplated herein and
therein, the provisions of this Option Agreement and the Plan shall survive
any exercise of the Option and shall remain in full force and effect.

        12.     Applicable Law.  This Option Agreement shall be governed by the
laws of the State of California as such laws are applied to agreements between
California residents entered into and to be performed entirely within the
State of California.

        13.     Arbitration.  In the event a dispute between the parties to this
Option  Agreement arises out of, in connection with, or with respect to this
Option Agreement, or any breach of this Option Agreement, such dispute will,
on the written request of one (1) party delivered to the other party, be
submitted and settled by arbitration in Palo Alto, California in accordance
with the rules of the American Arbitration Association then in effect and will
comply with the California Arbitration Act, except as otherwise specifically
stated in this paragraph 13.  Judgment upon the award rendered by the
arbitrators may be entered in any court having jurisdiction.  The parties
submit to the in personam jurisdiction of the Supreme Court of the State of
California for the purpose of confirming any such award and entering judgment
upon the award.  Notwithstanding anything to the contrary that may now or in
the future be contained in the rules of the American Arbitration Association,
the parties agree as follows:

                (a)     Each party will appoint one person approved by the American
Arbitration Association to hear and determine the dispute within twenty (20)
days after receipt of notice of arbitration from the noticing party.  The two
(2) persons so chosen will select a third impartial arbitrator.  The majority
decision of the arbitrators will be final and conclusive upon the parties to
the arbitration.  If either party fails to designate its arbitrator within
twenty (20) days after delivery of the notice provided for in this paragraph
13(a), then the arbitrator designated by the one (1) party will act as the
sole arbitrator and will be considered the single, mutually approved
arbitrator to resolve the controversy.  In the event the parties are unable to
agree upon a rate of compensation for the arbitrators, they will be
compensated for their services at a rate to be determined by the American
Arbitration Association.

                (b)     The parties will enjoy, but are not limited to, the same
rights to discovery as they would have in the United States District Court for
the Northern District of California.

                (c)     The arbitrators will, upon the request of either party,
issue a written opinion of their findings of fact and conclusions of law.

                (d)     Upon receipt by the requesting party of said written
opinion, said party will have the right within ten (10) days to file with the
arbitrators a motion to reconsider, and upon receipt of a timely request the
arbitrators will reconsider the issues raised by said motion and either
confirm or change their majority decision which will then be final and
conclusive upon the parties to the arbitration.

                (e)     The arbitrators will award to the prevailing party in any
such arbitration reasonable expenses, including attorneys' fees and costs,
incurred in connection with the dispute.

        PROTEIN DESIGN LABS, INC.

        By:

        Title:

        The Optionee represents that the Optionee is familiar with the terms and
provisions of this Option Agreement and the Plan and hereby accepts the Option
subject to all of the terms and provisions thereof.

        The undersigned acknowledges receipt of a copy of the Plan.

Date:

Signature:Exhibit 10.37

                                                                    EXHIBIT 10.37

PROTEIN DESIGN LABS, INC.
1999 NONSTATUTORY STOCK OPTION PLAN

1.      ESTABLISHMENT, PURPOSE AND TERM OF PLAN.

1.1     Establishment.  The Protein Design Labs, Inc. 1999
Nonstatutory Stock Option Plan (the "Plan") is hereby established effective as
of August 19, 1999.

1.2     Purpose.  The purpose of the Plan is to advance the
interests of the Participating Company Group and its stockholders by providing
an incentive to attract, retain and reward Persons performing services for the
Participating Company Group and by motivating such Persons to contribute to
the goals of the Participating Company Group.

1.3     Term of Plan.  The Plan shall continue in effect until the
earlier of its termination by the Board or the date on which all of the shares
of Stock available for issuance under the Plan have been issued and all
restrictions on such shares under the terms of the Plan and the agreements
evidencing Options granted under the Plan have lapsed.

2.      DEFINITIONS AND CONSTRUCTION.

2.1     Definitions.  Whenever used herein, the following terms
shall have their respective meanings set forth below:

(a)     "Board" means the Board of Directors of the Company.
If one or more Committees have been appointed by the Board to administer the
Plan, "Board" also means such Committee(s).

(b)     "Code" means the Internal Revenue Code of 1986, as
amended, and any applicable regulations promulgated thereunder.

(c)     "Committee" means the committee(s) of the Board, if
any, duly appointed to administer the Plan and having such powers as shall be
specified by the Board.  Unless the powers of a Committee have been
specifically limited, the Committee shall have all of the powers of the Board
granted herein, including, without limitation, the power to amend or terminate
the Plan at any time, subject to the terms of the Plan and any applicable
limitations imposed by law.

(d)     "Company" means Protein Design Labs, Inc., a Delaware
corporation, or any successor corporation thereto.

(e)     "Consultant" means any Person, including an advisor,
engaged by a Participating Company to render services other than as an
Employee or a member of the Board.

(f)      "Disability" means the permanent and total disability
of the Optionee within the meaning of Section 22(e)(3) of the Code.

(g)     "Employee" means any Person treated as an employee in
the records of a Participating Company.

(h)     "Exchange Act" means the Securities Exchange Act of
1934, as amended.

(i)     "Fair Market Value" means, as of any date, the value
of a share of Stock or other property as determined by the Board, in its
discretion, subject to the following:

(i)     If, on such date, the Stock is listed on a
national or regional securities exchange or market system, the Fair Market
Value of a share of Stock shall be the closing sale price of a share of Stock
(or the mean of the closing bid and asked prices of a share of Stock if the
Stock is so quoted instead) as quoted on the Nasdaq National Market, The
Nasdaq SmallCap Market or such other national or regional securities exchange
or market system constituting the primary market for the Stock, as reported in
the Wall Street Journal or such other source as the Board deems reliable.  If
the relevant date does not fall on a day on which the Stock has traded on such
securities exchange or market system, the date on which the Fair Market Value
shall be established shall be the last day on which the Stock was so traded
prior to the relevant date, or such other appropriate day as shall be
determined by the Board, in its discretion.

(ii)    If, on such date, the Stock is not listed on a
national or regional securities exchange or market system, the Fair Market
Value of a share of Stock shall be as determined by the Board without regard
to any restriction other than a restriction which, by its terms, will never
lapse.

(j)      "Nonstatutory Stock Option" means an Option not
intended to be an incentive stock option within the meaning of Section 422(b)
of the Code.

(k)     "Option" means a right to purchase Stock (subject to
adjustment as provided in Section 4.2) pursuant to the terms and conditions of
the Plan.  All Options shall be Nonstatutory Stock Options.

(l)     "Option Agreement" means a written agreement between
the Company and an Optionee setting forth the terms, conditions and
restrictions of the Option granted to the Optionee and any shares of Stock
acquired upon the exercise thereof.

(m)     "Optionee" means a Person who has been granted one or
more Options.

(n)     "Parent Corporation" means any present or future
"parent corporation" of the Company, as defined in Section 424(e) of the Code.

(o)     "Participating Company" means the Company or any
Parent Corporation or Subsidiary Corporation.

(p)     "Participating Company Group" means, at any point in
time, all corporations collectively which are then Participating Companies.

(q)     "Person" means a natural person.

(r)      "Securities Act" means the Securities Act of 1933, as
amended.

(s)     "Service" means an Optionee's employment or service
with the Participating Company Group, whether in the capacity of an Employee
or a Consultant.  Unless otherwise provided by the Board, an Optionee's
Service shall not be deemed to have terminated merely because of a change in
the capacity in which the Optionee renders Service to the Participating
Company Group or a change in the Participating Company for which the Optionee
renders such Service, provided that there is no interruption or termination of
the Optionee's Service.  Furthermore, an Optionee's Service with the
Participating Company Group shall not be deemed to have terminated if the
Optionee takes any bona fide leave of absence approved by the Company.
Notwithstanding the foregoing, unless otherwise required by law, the Company
may provide that an approved leave of absence shall not be treated as Service
for purposes of determining vesting under the Optionee's Option Agreement.  An
Optionee's Service shall be deemed to have terminated either upon an actual
termination of Service or upon the corporation for which the Optionee performs
Service ceasing to be a Participating Company.  Subject to the foregoing, the
Company, in its discretion, shall determine whether an Optionee's Service has
terminated and the effective date of such termination.

(t)     "Stock" means the common stock of the Company, as
adjusted from time to time in accordance with Section 4.2.

(u)     "Subsidiary Corporation" means any present or future
"subsidiary corporation" of the Company, as defined in Section 424(f) of the
Code.

2.2     Construction.  Captions and titles contained herein are for
convenience only and shall not affect the meaning or interpretation of any
provision of the Plan.  Except when otherwise indicated by the context, the
singular shall include the plural and the plural shall include the singular.
Use of the term "or" is not intended to be exclusive, unless the context
clearly requires otherwise.

3.      ADMINISTRATION.

3.1     Administration by the Board.  The Plan shall be administered
by the Board.  All questions of interpretation of the Plan or of any Option
shall be determined by the Board, and such determinations shall be final and
binding upon all Persons having an interest in the Plan or such Option.

3.2     Authority of Officers.  The Chief Executive Officer shall
have the authority to act on behalf of the Company with respect to any matter,
right, obligation, determination or election which is the responsibility of or
which is allocated to the Company herein.

3.3     Powers of the Board.  In addition to any other powers set
forth in the Plan and subject to the provisions of the Plan, the Board shall
have the full power and authority, in its discretion:

(a)     to determine the Persons to whom, and the time or
times at which, Options shall be granted and the number of shares of Stock to
be subject to each Option;

(b)     to determine the Fair Market Value of shares of Stock
or other property in the event such property is proposed as consideration for
payment for the exercise of an Option;

(c)     to determine the terms, conditions and restrictions
applicable to each Option (which need not be identical) and any shares of
Stock acquired upon the exercise thereof, including, without limitation,
(i) the exercise price of the Option, (ii) the method of payment for shares of
Stock purchased upon the exercise of the Option, (iii) the method for
satisfaction of any tax withholding obligation arising in connection with the
Option or such shares of Stock, including by the withholding or delivery of
shares of Stock, (iv) the timing, terms and conditions of the exercisability
of the Option or the vesting of any shares of Stock acquired upon the exercise
thereof, (v) the time of the expiration of the Option, (vi) the effect of the
Optionee's termination of Service with the Participating Company Group on any
of the foregoing, and (vii) all other terms, conditions and restrictions
applicable to the Option or such shares of Stock not inconsistent with the
terms of the Plan;

(d)     to approve one or more forms of Option Agreement;

(e)     to amend, modify, extend, cancel, renew, or grant a
new Option in substitution for, any Option or to waive any restrictions or
conditions applicable to any Option or any shares acquired upon the exercise
thereof;

(f)     to accelerate, continue, extend or defer the
exercisability of any Option or the vesting of any shares acquired upon the
exercise thereof, including with respect to the period following an Optionee's
termination of Service with the Participating Company Group;

(g)     to prescribe, amend or rescind rules, guidelines and
policies relating to the Plan, or to adopt supplements to, or alternative
versions of, the Plan, including, without limitation, as the Board deems
necessary or desirable to comply with the laws of, or to accommodate the tax
policy or custom of, foreign jurisdictions whose citizens may be granted
Options; and

(h)     to correct any defect, supply any omission or
reconcile any inconsistency in the Plan or any Option Agreement and to make
all other determinations and take such other actions with respect to the Plan
or any Option as the Board may deem advisable to the extent consistent with
the Plan and applicable law.

4.      SHARES SUBJECT TO PLAN.

4.1     Maximum Number of Shares Issuable.  Subject to adjustment as
provided in Section 4.2, the maximum aggregate number of shares of Stock that
may be issued under the Plan shall be 1,000,000 and shall consist of
authorized but unissued or reacquired shares of Stock or any combination
thereof.  If an outstanding Option for any reason expires or is terminated or
canceled or if unvested shares of Stock are acquired upon the exercise of an
Option subject to a Company repurchase option and are repurchased by the
Company, the shares of Stock allocable to the unexercised portion of such
Option or such unvested repurchased shares of Stock shall again be available
for issuance under the Plan.

4.2     Adjustments for Changes in Capital Structure.  In the event
of any stock dividend, stock split, reverse stock split, recapitalization,
combination, reclassification or similar change in the capital structure of
the Company, appropriate adjustments shall be made in the number and class of
shares subject to the Plan and to any outstanding Options and in the exercise
price per share of any outstanding Options.  If a majority of the shares which
are of the same class as the shares that are subject to outstanding Options
are exchanged for, converted into, or otherwise become (whether or not
pursuant to an Ownership Change Event, as defined in Section 8.1) shares of
another corporation (the "New Shares"), the Board may unilaterally amend the
outstanding Options to provide that such Options are exercisable for New
Shares.  In the event of any such amendment, the number of shares subject to,
and the exercise price per share of, the outstanding Options shall be adjusted
in a fair and equitable manner as determined by the Board, in its discretion.
Notwithstanding the foregoing, any fractional share resulting from an
adjustment pursuant to this Section 4.2 shall be rounded down to the nearest
whole number, and in no event may the exercise price of any Option be
decreased to an amount less than the par value, if any, of the stock subject
to the Option.  The adjustments determined by the Board pursuant to this
Section 4.2 shall be final and binding.

5.      ELIGIBILITY AND OPTION LIMITATIONS.

5.1     Persons Eligible for Options.  Options may be granted only
to Employees and Consultants.  For purposes of the foregoing sentence,
"Employees" and "Consultants" shall include prospective Employees and
prospective Consultants to whom Options are granted in connection with written
offers of employment or other service relationship with the Participating
Company Group.  However, notwithstanding any other provision herein to the
contrary, no Person shall be eligible to be granted an Option under the Plan
whose eligibility would require approval of the Plan by the Stockholders of
the Company under any law or regulation or the rules of any stock exchange or
market system upon which the Stock may then be listed.  If not inconsistent
with any such law, regulation or rule, an Option may be granted to a Person,
not previously employed by the Company, as an inducement essential to entering
into an employment contract with the Company.  Eligible Persons may be granted
more than one (1) Option.

5.2     Options Authorized.  Options granted under the Plan may only
be Nonstatutory Stock Options.

6.      TERMS AND CONDITIONS OF OPTIONS.

                Options shall be evidenced by Option Agreements specifying the
number of shares of Stock covered thereby, in such form as the Board shall
from time to time establish.  No Option or purported Option shall be a valid
and binding obligation of the Company unless evidenced by a fully executed
Option Agreement.  Option Agreements may incorporate all or any of the terms
of the Plan by reference and shall comply with and be subject to the following
terms and conditions:

6.1     Exercise Price.  The exercise price for each Option shall be
established in the discretion of the Board.

6.2     Exercise Period.  Options shall be exercisable at such time
or times, or upon such event or events, and subject to such terms, conditions,
performance criteria, and restrictions as shall be determined by the Board and
set forth in the Option Agreement evidencing such Option; provided, however,
that no Option granted to a prospective Employee or prospective Consultant may
become exercisable prior to the date on which such Person commences Service
with a Participating Company.  Subject to the foregoing, unless otherwise
specified by the Board in the grant of an Option, any Option granted hereunder
shall have a term of ten (10) years from the effective date of grant of the
Option.

6.3     Payment of Exercise Price.

(a)     Forms of Consideration Authorized.  Except as
otherwise provided below, payment of the exercise price for the number of
shares of Stock being purchased pursuant to any Option shall be made (i) in
cash, by check or cash equivalent, (ii) by tender to the Company, or
attestation to the ownership, of shares of Stock owned by the Optionee having
a Fair Market Value not less than the exercise price, (iii) by the assignment
of the proceeds of a sale or loan with respect to some or all of the shares
being acquired upon the exercise of the Option (including, without limitation,
through an exercise complying with the provisions of Regulation T as
promulgated from time to time by the Board of Governors of the Federal Reserve
System) (a "Cashless Exercise"), (iv) by such other consideration as may be
approved by the Board from time to time to the extent permitted by applicable
law, or (v) by any combination thereof.  The Board may at any time or from
time to time, by approval of or by amendment to the standard form of Option
Agreement described in Section 7, or by other means, grant Options which do
not permit all of the foregoing forms of consideration to be used in payment
of the exercise price or which otherwise restrict one or more forms of
consideration.

(b)     Limitations on Forms of Consideration.

(i)     Tender of Stock.  Notwithstanding the foregoing,
an Option may not be exercised by tender to the Company, or attestation to the
ownership, of shares of Stock to the extent such tender or attestation would
constitute a violation of the provisions of any law, regulation or agreement
restricting the redemption of the shares of Stock.  Unless otherwise provided
by the Board, an Option may not be exercised by tender to the Company, or
attestation to the ownership, of shares of Stock unless such shares either
have been owned by the Optionee for more than six (6) months or were not
acquired, directly or indirectly, from the Company.

(ii)    Cashless Exercise.  The Company reserves, at any
and all times, the right, in the Company's sole and absolute discretion, to
establish, decline to approve or terminate any program or procedures for the
exercise of Options by means of a Cashless Exercise.

6.4     Tax Withholding.  The Company shall have the right, but not
the obligation, to deduct from the shares of Stock issuable upon the exercise
of an Option, or to accept from the Optionee the tender of, a number of whole
shares of Stock having a Fair Market Value equal to all or any part of the
federal, state, local and foreign taxes, if any, required by law to be
withheld by the Participating Company Group with respect to such Option or the
shares of Stock acquired upon the exercise thereof.  Alternatively or in
addition, in its discretion, the Company shall have the right to require the
Optionee, through payroll withholding, cash payment or otherwise, including by
means of a Cashless Exercise, to make adequate provision for any such tax
withholding obligations of the Participating Company Group arising in
connection with the Option or the shares of Stock acquired upon the exercise
thereof.  The Company shall have no obligation to deliver shares of Stock
until the Participating Company Group's tax withholding obligations have been
satisfied by the Optionee.

6.5     Effect of Termination of Service.

(a)     Option Exercisability.  Subject to earlier termination
of the Option as otherwise provided herein and unless otherwise provided by
the Board in the grant of an Option and set forth in the Option Agreement, an
Option shall be exercisable after an Optionee's termination of Service as
follows:

(i)     Disability.  If the Optionee's Service with the
Participating Company Group is terminated because of the Disability of the
Optionee, the Option, to the extent unexercised and exercisable on the date on
which the Optionee's Service terminated, may be exercised by the Optionee (or
the Optionee's guardian or legal representative) at any time prior to the
expiration of twelve (12) months after the date on which the Optionee's
Service terminated, but in any event no later than the date of expiration of
the Option's term as set forth in the Option Agreement evidencing such Option
(the "Option Expiration Date").

(ii)    Death.  If the Optionee's Service with the
Participating Company Group is terminated because of the death of the
Optionee, the Option, to the extent unexercised and exercisable on the date on
which the Optionee's Service terminated, may be exercised by the Optionee's
legal representative or other Person who acquired the right to exercise the
Option by reason of the Optionee's death at any time prior to the expiration
of twelve (12) months after the date on which the Optionee's Service
terminated, but in any event no later than the Option Expiration Date.  The
Optionee's Service shall be deemed to have terminated on account of death if
the Optionee dies within three (3) months after the Optionee's termination of
Service.

(iii)   Termination After Change in Control.  If the
Optionee's Service with the Participating Company Group ceases as a result of
Termination After Change in Control (as defined below), then (1) the Option,
to the extent unexercised on the date on which the Optionee's Service
terminated, may be exercised by the Optionee (or the Optionee's guardian or
legal representative) at any time prior to the expiration of six (6) months
after the date on which the Optionee's Service terminated, but in any event no
later than the Option Expiration Date, and (2) the exercisability and vesting
of the Option shall be accelerated effective as of the date on which the
Optionee's Service terminated to such extent, if any, as shall have been
determined by the Board, in its discretion, and set forth in the Option
Agreement.  Notwithstanding the foregoing, if it is determined that the
provisions or operation of this Section 6.5(a)(iii) would preclude treatment
of a Change in Control as a "pooling-of-interests" for accounting purposes and
provided further that in the absence of the preceding sentence such Change in
Control would be treated as a "pooling-of-interests" for accounting purposes,
then this Section 6.5(a)(iii) shall be void ab initio, and the vesting and
exercisability of the Option shall be determined under any other applicable
provision of the Plan or the Option Agreement evidencing such Option.

(iv)    Other Termination of Service.  If the Optionee's
Service with the Participating Company Group terminates for any reason, except
Disability, death, or Termination After Change in Control, the Option, to the
extent unexercised and exercisable by the Optionee on the date on which the
Optionee's Service terminated, may be exercised by the Optionee within
three (3) months (or such longer period of time as determined by the Board, in
its discretion) after the date on which the Optionee's Service terminated, but
in any event no later than the Option Expiration Date.

(b)     Extension if Exercise Prevented by Law.
Notwithstanding the foregoing, if the exercise of an Option within the
applicable time periods set forth in Section 6.5(a) is prevented by the
provisions of Section 11 below, the Option shall remain exercisable until
ninety (90) days after the date the Optionee is notified by the Company that
the Option is exercisable, but in any event no later than the Option
Expiration Date.

(c)     Extension if Optionee Subject to Section 16(b).
Notwithstanding the foregoing, if a sale within the applicable time periods
set forth in Section 6.5(a) of shares acquired upon the exercise of the Option
would subject the Optionee to suit under Section 16(b) of the Exchange Act,
the Option shall remain exercisable until the earliest to occur of (i) the
thirtieth (30th) day following the date on which a sale of such shares by the
Optionee would no longer be subject to such suit, (ii) the two hundred tenth
(210th) day after the Optionee's termination of Service, or (iii) the Option
Expiration Date.

(d)     Certain Definitions.  The following terms shall have
their respective meanings set forth below:

(i)     "Termination After Change in Control" shall mean
either of the following events occurring within twelve (12) months after a
Change in Control:

(1)     termination by the Participating Company
Group of the Optionee's Service with the Participating Company Group for any
reason other than for Cause (as defined below); or

(2)     the Optionee's resignation from all
capacities in which the Optionee is then rendering Service to the
Participating Company Group within a reasonable period of time following an
event constituting a Constructive Termination (as defined below).

Notwithstanding any provision herein to the contrary, Termination After Change
in Control shall not include any termination of the Optionee's Service with
the Participating Company Group which (1) is for Cause (as defined below);
(2) is a result of the Optionee's death or disability; (3) is a result of the
Optionee's voluntary termination of Service other than upon a Constructive
Termination; or (4) occurs prior to the effectiveness of a Change in Control.

(ii)    "Cause" shall mean any of the following: (1) the
Optionee's theft, dishonesty, or falsification of any Participating Company
documents or records; (2) the Optionee's improper use or disclosure of a
Participating Company's confidential or proprietary information; (3) any
action by the Optionee which has a detrimental effect on a Participating
Company's reputation or business; (4) the Optionee's failure or inability to
perform any reasonable assigned duties after written notice from the
Participating Company Group of, and a reasonable opportunity to cure, such
failure or inability; (5) any material breach by the Optionee of any
employment agreement between the Optionee and the Participating Company Group,
which breach is not cured pursuant to the terms of such agreement; or (6) the
Optionee's conviction (including any plea of guilty or nolo contendere) of any
criminal act which impairs the Optionee's ability to perform his or her duties
with the Participating Company Group.

(iii)   "Constructive Termination" shall mean any one or
more of the following:

(1)     without the Optionee's express written
consent, any assignment to the Optionee of any duties, or any limitation of
the Optionee's responsibilities, substantially inconsistent with the
Optionee's positions, duties, responsibilities and status with a Participating
Company immediately prior to the date of the Change in Control;

(2)     without the Optionee's express written
consent, the relocation of the principal place of the Optionee's Service to a
location that is more than fifty (50) miles from the Optionee's principal
place of Service immediately prior to the date of the Change in Control, or
the imposition of travel requirements substantially more demanding of the
Optionee than such travel requirements existing immediately prior to the date
of the Change in Control;

(3)     any failure by a Participating Company to
pay, or any material reduction by a Participating Company of, (A) the
Optionee's base salary in effect immediately prior to the date of the Change
in Control, or (B) the Optionee's bonus compensation, if any, in effect
immediately prior to the date of the Change in Control (subject to applicable
performance requirements with respect to the actual amount of bonus
compensation earned by the Optionee); or

(4)     any failure by a Participating Company to
(A) continue to provide the Optionee with the opportunity to participate, on
terms not materially less favorable than those in effect for the benefit of
any employee group which customarily includes a Person holding the employment
position or a comparable position with the Participating Company then held by
the Optionee, in any benefit or compensation plans and programs, including,
but not limited to, the Participating Company's life, disability, health,
dental, medical, savings, profit sharing, stock purchase and retirement plans,
if any, in which the Optionee was participating immediately prior to the date
of the Change in Control, or their equivalent, or (B) provide the Optionee
with all other fringe benefits (or their equivalent) from time to time in
effect for the benefit of any employee group which customarily includes a
Person holding the employment position or a comparable position with the
Participating Company then held by the Optionee.

7.      STANDARD FORM OF OPTION AGREEMENT.

7.1     Nonstatutory Stock Option Agreement. Unless otherwise
provided by the Board at the time the Option is granted, each Option shall
comply with and be subject to the terms and conditions set forth in the
appropriate form of Nonstatutory Stock Option Agreement adopted by the Board
concurrently with its adoption of the Plan and as amended from time to time.

7.2     Authority to Vary Terms.  The Board shall have the authority
from time to time to vary the terms of the standard form of Option Agreement
described in this Section 7 either in connection with the grant or amendment
of an individual Option or in connection with the authorization of a new
standard form or forms; provided, however, that the terms and conditions of
any such new, revised or amended standard form or forms of Option Agreement
are not inconsistent with the terms of the Plan.

8.      CHANGE IN CONTROL.

8.1     Definitions.  The following terms shall have their
respective meanings set forth below:

(a)     An "Ownership Change Event" shall be deemed to have
occurred if any of the following occurs with respect to the Company: (i) the
direct or indirect sale or exchange in a single or series of related
transactions by the stockholders of the Company of more than fifty percent
(50%) of the voting stock of the Company; (ii) a merger or consolidation in
which the Company is a party; (iii) the sale, exchange, or transfer of all or
substantially all of the assets of the Company; or (iv) a liquidation or
dissolution of the Company.

(b)     A "Change in Control" shall mean an Ownership Change
Event or a series of related Ownership Change Events (collectively, the
"Transaction") wherein the stockholders of the Company immediately before the
Transaction do not retain immediately after the Transaction, in substantially
the same proportions as their ownership of shares of the Company's voting
stock immediately before the Transaction, direct or indirect beneficial
ownership of more than fifty percent (50%) of the total combined voting power
of the outstanding voting stock of the Company or the corporation or
corporations to which the assets of the Company were transferred (the
"Transferee Corporation(s)"), as the case may be.  For purposes of the
preceding sentence, indirect beneficial ownership shall include, without
limitation, an interest resulting from ownership of the voting stock of one or
more corporations which, as a result of the Transaction, own the Company or
the Transferee Corporation(s), as the case may be, either directly or through
one or more subsidiary corporations.  The Board shall have the right to
determine whether multiple sales or exchanges of the voting stock of the
Company or multiple Ownership Change Events are related, and its determination
shall be final, binding and conclusive.

8.2     Effect of Change in Control on Options.  In the event of a
Change in Control, the surviving, continuing, successor, or purchasing
corporation or parent corporation thereof, as the case may be (the "Acquiring
Corporation"), may either assume the Company's rights and obligations under
outstanding Options or substitute for outstanding Options substantially
equivalent options for the Acquiring Corporation's stock.  In the event the
Acquiring Corporation elects not to assume or substitute for outstanding
Options in connection with a Change in Control, the exercisability and vesting
of each such outstanding Option held by an Optionee whose Service has not
terminated prior to such date shall be accelerated effective as of the date
ten (10) days prior to the date of the Change in Control to such extent, if
any, as shall have been determined by the Board, in its discretion, and set
forth in the Option Agreement evidencing such Option.  The exercise or vesting
of any Option that was permissible solely by reason of this Section 8.2 and
the provisions of such Option Agreement shall be conditioned upon the
consummation of the Change in Control.  Any Options which are neither assumed
or substituted for by the Acquiring Corporation in connection with the Change
in Control nor exercised as of the date of the Change in Control shall
terminate and cease to be outstanding effective as of the date of the Change
in Control.  Notwithstanding the foregoing, if the corporation the stock of
which is subject to the outstanding Options immediately prior to an Ownership
Change Event described in Section 8.1(a)(i) constituting a Change in Control
is the surviving or continuing corporation and immediately after such
Ownership Change Event less than fifty percent (50%) of the total combined
voting power of its voting stock is held by another corporation or by other
corporations that are members of an affiliated group within the meaning of
Section 1504(a) of the Code without regard to the provisions of
Section 1504(b) of the Code, the outstanding Options shall not terminate
unless the Board otherwise provides in its discretion.

9.      PROVISION OF INFORMATION.

                Each Optionee shall be given access to information concerning the
Company equivalent to that information generally made available to the
Company's common stockholders.

10.     TRANSFERABILITY OF OPTIONS.

                During the lifetime of the Optionee, an Option shall be
exercisable only by the Optionee or the Optionee's guardian or legal
representative.  No Option shall be assignable or transferable by the
Optionee, except by will or by the laws of descent and distribution.
Notwithstanding the foregoing, an Option shall be assignable or transferable
to the extent permitted by the Board and set forth in the Option Agreement
evidencing such Option.

11.     COMPLIANCE WITH SECURITIES LAW.

                The grant of Options and the issuance of shares of Stock upon
exercise of Options shall be subject to compliance with all applicable
requirements of federal, state or foreign law with respect to such securities.
Options may not be exercised if the issuance of shares of Stock upon exercise
would constitute a violation of any applicable federal, state or foreign
securities laws or other law or regulations or the requirements of any stock
exchange or market system upon which the Stock may then be listed.  In
addition, no Option may be exercised unless (a) a registration statement under
the Securities Act shall at the time of exercise of the Option be in effect
with respect to the shares of Stock issuable upon exercise of the Option or
(b) in the opinion of legal counsel to the Company, the shares of Stock
issuable upon exercise of the Option may be issued in accordance with the
terms of an applicable exemption from the registration requirements of the
Securities Act.  The inability of the Company to obtain from any regulatory
body having jurisdiction the authority, if any, deemed by the Company's legal
counsel to be necessary to the lawful issuance and sale of any shares of Stock
hereunder shall relieve the Company of any liability in respect of the failure
to issue or sell such shares of Stock as to which such requisite authority
shall not have been obtained.  As a condition to the exercise of any Option,
the Company may require the Optionee to satisfy any qualifications that may be
necessary or appropriate, to evidence compliance with any applicable law or
regulation and to make any representation or warranty with respect thereto as
may be requested by the Company.

12.     TERMINATION OR AMENDMENT OF PLAN.

                The Board may terminate or amend the Plan at any time.  However,
no termination or amendment of the Plan shall affect any then outstanding
Option unless expressly provided by the Board.  In any event, no termination
or amendment of the Plan may adversely affect any then outstanding Option
without the consent of the Optionee, unless such termination
or amendment is necessary to comply with any applicable law, regulation or
rule.

        IN WITNESS WHEREOF, the undersigned Secretary of the Company certifies
that the foregoing sets forth the Protein Design Labs, Inc. 1999 Nonstatutory
Stock Option Plan as adopted by the Board on August 19, 1999.

        Douglas O. Ebersole

        Secretary

PLAN HISTORY

August 19, 1999 Board adopts Plan, with an initial share reserve of
1,000,000 shares.  No stockholder approval is
required.

August 23, 2000 Plan adjusted for 2:1 stock split.  (Note: Section 4.1
is not restated to reflect split.)

December 14, 2000       Board adopts amendments to Section 2.1 of the Plan as
to the definitions of the terms "Board" and
"Committee".

        No stockholder approval is required.

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