Document:

Exhibit 10.3

 

	
   

  

  	
   

  	
  PDL BioPharma, Inc.

  1400 Seaport Blvd.

  Redwood City, CA 94063

  

 

 

 

 

May 2,
2008

 

 

 

 

Richard
Murray

 

                Re: Retention Bonuses and Severance Benefits

 

Dear
Richard:

 

We view your contributions
as an officer of PDL BioPharma, Inc. (“PDL”) as important to our
efforts to transition to a streamlined biotech company and our long-term
success.  Acknowledging this, the
Compensation Committee of the Board of Directors of PDL recently approved
retention bonuses and certain severance benefits for you.

 

Retention Bonuses

 

Subject to your continued
employment in good standing with PDL through the applicable bonus dates (each,
a “Bonus Date”) and the terms and conditions of this letter agreement
(this “Letter Agreement”), you will earn, and PDL will pay you, the “Retention
Bonuses” set forth below:

 

·                  September 30,
2008 - $81,000.00

·                  June 30,
2009 - $81,000.00

·                  December 31,
2009 - $108,000.00

 

Subject to the terms and
conditions of this Letter Agreement, each Retention Bonus would be paid with
the next regular paycheck following the applicable Bonus Date.

 

Notwithstanding the foregoing or anything else in
this Letter Agreement, if prior to a Bonus Date PDL terminates your employment
without “Cause” (as that term is defined in PDL’s 2005 Equity Incentive Plan
(the “2005 Plan”)), then on the date of such employment termination you
would, subject to the last sentence in this paragraph, earn a prorated amount
of the portion of the next Retention Bonus that you otherwise would have
earned.  If such employment termination
occurs before September 30, 2008, the foregoing proration would be based
on the number of months between March 4, 2008 and such termination date,
rounded up to the nearest whole month. 
Otherwise, such proration would be based on the number of months between
the last Bonus Date and the date of such termination, rounded up to the nearest
whole month.  Any portion of your
Retention Bonuses that would be payable pursuant to this paragraph would be
earned provided that you sign, and do not revoke, PDL’s form of

 

release agreement (“Release Agreement”), and
we would pay such portion of your Retention Bonus promptly after the effective
date of your Release Agreement and in any event, provided that your Release
Agreement has become effective, within 60 days after your termination date.

 

Notwithstanding the terms of PDL’s Executive
Retention and Severance Plan (the “ERSP”) or the preceding paragraph,
should your employment be terminated without Cause following a “Change in
Control” (as that term is defined in and determined under PDL’s 2005 Equity Incentive
Plan) and prior to December 31, 2009 and provided you sign, and do not
revoke, the Release Agreement, we would pay you the full amount of your
Retention Bonuses that you have not yet earned promptly after the effective
date of your Release Agreement and, in any event, provided that your Release
Agreement has become effective, within 60 days of the date of your employment
termination.

 

Notwithstanding the foregoing or anything else in
this Letter Agreement, you agree that you will not earn any portion of your
Retention Bonuses pursuant to either of the two preceding paragraphs and this
Letter Agreement will immediately terminate if PDL terminates your employment
in connection with the transfer of PDL’s biotechnology-related assets to a
wholly owned subsidiary of PDL (“NewBio”), provided, that NewBio
offers you a comparable employment position and agrees to provide you a
retention bonus (or retention bonuses if such employment termination occurs
before June 30, 2009) on terms and conditions consistent with this Letter
Agreement.

 

If PDL terminates your
employment for Cause or you voluntarily terminate your employment, then you
would not receive any portion of your Retention Bonuses that you have not
earned.

 

You agree that, subject to
the terms of the ERSP, none of your Retention Bonuses would be “grossed up” and
will be subject to all applicable payroll withholdings and deductions.

 

Severance Benefit Prior to a
Change in Control

 

Subject to the last
paragraph under this heading, if prior to a Change in Control (i) we
terminate your employment without Cause; (ii) you remain in good standing
through your employment termination date; and (iii) you sign and deliver
to PDL the Release Agreement within 21 days of your receipt of the Release
Agreement and you do not revoke the Release Agreement, you would be eligible
for the following severance package:

 

·                  Severance pay
(payable in a lump sum and subject to tax withholding) equal to (A) one
year of your annual base salary plus (B) 100% of your target annual
bonus (subject to tax withholding and without giving effect to any company
performance or other multiplier);

·                  12 months
company-paid COBRA benefits (provided you timely elect COBRA coverage);

·                  Six months of
outplacement services; and

·                  Acceleration of
the vesting of 50% of the total number of shares originally subject to each of
your stock options (i.e., two years of vesting).

 

2

 

The foregoing severance
payment would be paid in a lump sum within 30 days following the date of your
employment termination, provided that your Release Agreement has become
effective in accordance with its terms prior to such 30th day. The
option acceleration set forth above would be effective on the date your Release
Agreement has become effective.

 

For clarity, the foregoing
severance benefits and option acceleration are intended to apply to your
separation from service with PDL under circumstances in which the benefits
under the ERSP would not be available to you, and in all cases, you are
entitled only to either the severance and option acceleration benefits
described above, or, if applicable, those under the ERSP.

 

Notwithstanding
the foregoing or anything else in this Letter Agreement, you agree that you
will not earn any severance benefits and option acceleration under this Letter
Agreement and this Letter Agreement will immediately terminate if PDL
terminates your employment in connection with the transfer of PDL’s
biotechnology-related assets to NewBio, provided, that NewBio offers you
a comparable employment position and agrees to provide you severance benefits
and option acceleration on terms and conditions consistent with this Letter
Agreement.

 

Additional
Provisions

 

Notwithstanding
anything contained in this Letter Agreement to the contrary, no amount payable
pursuant to this Letter Agreement on account of your termination of employment
which constitutes a “deferral of compensation” within the meaning of the
Treasury Regulations issued pursuant to Section 409A of the Internal
Revenue Code (the “Section 409A Regulations”) will be paid unless
and until you have incurred a “separation from service” within the meaning of
the Section 409A Regulations. 
Furthermore, if you are a “specified employee” within the meaning of the
Section 409A Regulations as of the date of your separation from service,
no amount that constitutes a deferral of compensation which is payable on
account of your separation from service will paid to you before the date (the “Delayed
Payment Date”) which is first day of the seventh month after the date of
your separation from service or, if earlier, the date of your death following
such separation from service.  All such
amounts that would, but for this paragraph, become payable prior to the Delayed
Payment Date will be accumulated and paid on the Delayed Payment Date.

 

PDL
intends that income provided to you pursuant to this Letter Agreement will not
be subject to taxation under Section 409A of the Internal Revenue
Code.  The provisions of this Letter
Agreement shall be interpreted and construed in favor of satisfying any
applicable requirements of Section 409A. 
However, PDL does not guarantee any
particular tax effect for income provided to you pursuant to this letter.  In any event, except for PDL’s responsibility
to withhold applicable income and employment taxes from compensation paid or
provided to you, PDL will not be responsible for the payment of any applicable
taxes incurred by you on compensation paid or provided to you pursuant to this
Letter Agreement.

 

3

 

Except as otherwise provided in this Letter
Agreement, all of the other terms and conditions of your employment
relationship with PDL will continue to apply. 
This Letter Agreement is not intended change the “at will” nature of
your employment with PDL.  You would
continue to be free to resign at any time, just as PDL would be free to
terminate your employment at any time, with or without cause.

 

The terms of this Letter
Agreement, when accepted by you, supersede, with the exception of the ERSP, all
prior arrangements, whether written or oral, and understandings regarding the
subject matter of this Letter Agreement and, except as provided in the ERSP,
shall be the exclusive agreement for the determination of any payments and
benefits you are due upon the events described in this letter agreement.

 

On behalf of the
Compensation Committee and the Board of Directors I would like to thank you for
your many contributions and for your continued support and dedication to PDL.

 

To
indicate your acceptance of the terms of this Letter Agreement, please sign and
date this Letter Agreement in the space provided below and return it to Gwen
Carscadden, Director of Human Resources by May 16, 2008.

 

Sincerely,

 

 

 

L.
Patrick Gage, Ph.D.

Interim
Chief Executive Officer

 

 

	
  AGREED
  AND ACKNOWLEDGED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Richard
  Murray

  	
   

  
	
  Richard
  Murray

  	
   

  
	
  Executive
  Vice President and Chief Scientific Officer

  	
   

  
	
   

  	
   

  
	
  May 15,
  2008

  	
   

  
	
  Date

  	
   

  

 

4Exhibit 4.28L

 

AMENDMENT NO. 4

 

AMENDMENT NO. 4 (this “Amendment”), dated as of June 25, 2008, to the Amended
and Restated Loan and Security Agreement, dated as of December 1, 2005 (as
amended, supplemented and in effect from time to time, the “Loan Agreement”; capitalized terms used herein and not
defined herein shall have the meaning set forth in the Loan Agreement) by and
among Credit Suisse, as administrative agent for the LC Facility, Bank of
America, N.A., as administrative agent for the Revolving Facility and
syndication agent for the LC Facility, Banc of America Securities LLC (“BAS”), as sole arranger under the Revolving Facility, Credit
Suisse, as sole bookrunner under the LC Facility, Credit Suisse and BAS, as
joint lead arrangers under the LC Facility, Clean Harbors, Inc., a
Massachusetts corporation (“Parent”), the
Canadian Borrowers, and each of the other Subsidiaries of Parent from time to
time a party thereto (each such Subsidiary, together with Parent and Canadian
Borrowers, a “Credit Party” and, collectively, “Credit Parties”).

 

W  I  T  N  E
S  S  E  T  H:

 

WHEREAS, subsection 11.3 of the Loan
Agreement permits the Loan Agreement to be amended from time to time;

 

WHEREAS, the Loan Agreement is being amended
at the request of the Borrowers;

 

NOW, THEREFORE, in consideration of the
foregoing, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree
as follows:

 

Section 1.               Amendments.

 

(a)           The following
defined terms shall be added to Section 1 of the Loan Agreement:

 

“Amendment No. 4”
shall mean Amendment No. 4 to this Agreement, dated as of June 25,
2008.

 

“Amendment No. 4
Effective Date” shall mean the first Business Day on which all
conditions precedent set forth in Section 2 of Amendment No. 4 are satisfied.

 

(b)           Section 9.20 of the Loan
Agreement is hereby amended by deleting Section 9.20 in its entirety and
replacing it with the following:

 

 

9.20         Limitation on Capital Expenditures.  Credit Parties shall not permit the aggregate
amount of Capital Expenditures made in each of fiscal years 2008, 2009 and 2010
of Parent to exceed $60.0 million in any such fiscal year; provided,
however, that (x) if the aggregate
amount of Capital Expenditures made in fiscal years 2008, 2009 or 2010 shall be
less than the maximum amount of Capital Expenditures permitted under this Section 9.20
for such fiscal year (before giving effect to any carryover), then an amount of
such shortfall not exceeding 50% of such maximum amount (without giving effect
to clause (y) below) may be added to the amount of Capital Expenditures
permitted under this Section 9.20 for the imme-diately succeeding (but not
any other) fiscal year, and (y) in determining whether any amount is
available for carryover, the amount expended in any fiscal year shall first be
deemed to be from the amount allocated to such fiscal year (before giving
effect to any carryover).

 

Section 2.               Conditions to Effectiveness.  This Amendment shall become effective as of
the date (the “Amendment No. 4 Effective
Date”) when, and only when (x) the Administrative
Agents shall have received counterparts of this Amendment executed by each
Credit Party, the Administrative Agents, a number of Lenders sufficient to
constitute the Majority LC Facility Lenders and each Revolving Lender and (y) Borrowers
shall pay on the Amendment No. 4 Effective Date a cash fee in an amount
equal to (i) in the case of each LC Facility Lender that delivers a fully
and properly executed signature page to this Amendment at or before the
Amendment No. 4 Effective Date, 0.25% of the aggregate amount of the
Credit-Linked Deposits held by such LC Facility Lender immediately prior to the
Amendment No. 4 Effective Date and (ii) in the case of each Term Loan
Lender that delivers a fully and properly executed signature page to this
Amendment at or before the Amendment No. 4 Effective Date, 0.25% of the
aggregate of the Term Loans held by such Term Loan Lender immediately prior to
the Amendment No. 4 Effective Date. 
The effectiveness of this Amendment (other than Sections Five, Six and
Seven hereof) is conditioned upon the accuracy of the representations and
warranties set forth in Section Three hereof.

 

Section 3.               Representations and Warranties.  In order to induce the Lenders and the
Administrative Agents to enter into this Amendment, Borrowers represent and warrant
to each of the Lenders and the Administrative Agents that before and after
giving effect to this Amendment, (a) no Default or Event of Default
exists, has occurred and is continuing or will have occurred and be continuing
and (b) all of the representations and warranties in the Loan Agreement
are true and complete in all material respects on and as of the date hereof as
if made on the date hereof (or, if any such representation or warranty is
expressly stated to have been made as of a specific date, as of such specific
date).

 

Section 4.               Reference to and Effect on the
Loan Agreement.  On and after the
Amendment No. 4 Effective Date, each reference in the Loan Agreement, to “this
Agreement,” “hereunder,” “hereof” or words of like import referring to the Loan
Agreement, respectively, and in each of the Financing Agreements to “the Loan
Agreement,” “thereunder,” “thereof” or words of like import referring to the
Loan Agreement shall mean and be a reference to the Loan 

 

 

Agreement as amended by this Amendment.  The Loan Agreement and each other Financing
Agreement, as specifically amended by this Amendment, are and shall continue to
be in full force and effect and are hereby in all respects ratified and confirmed.  The execution, delivery and effectiveness of
this Amendment shall not, except as expressly provided herein, operate as a
waiver of any right, power or remedy of any Lender or any Agent under any of
the Financing Agreements, nor constitute a waiver of any provision of any of
the Financing Agreements.

 

Section 5.               Costs, Expenses and Taxes.  Borrowers agree to pay all reasonable costs
and expenses of the Administrative Agents in connection with the preparation,
execution and delivery of this Amendment and the other instruments and
documents to be delivered hereunder, if any, in accordance with the terms of
the Loan Agreement.

 

Section 6.               Execution in Counterparts.  This Amendment may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which
taken together shall constitute but one and the same agreement.  Delivery of an executed counterpart of a signature
page to this Amendment by telecopier shall be effective as delivery of a
manually executed counterpart of this Amendment.

 

Section 7.               Governing Law.  THIS AMENDMENT SHALL BE GOVERNED
BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO
PRINCIPLES OF CONFLICTS OF LAW).

 

[Signature Pages Follow]

 

 

	
   

  	
  CREDIT
  PARTIES

  
	
   

  	
   

  
	
   

  	
  CLEAN HARBORS, INC.

  
	
   

  	
  ALTAIR DISPOSAL SERVICES, LLC

  
	
   

  	
  BATON ROUGE DISPOSAL, LLC

  
	
   

  	
  BRIDGEPORT DISPOSAL, LLC

  
	
   

  	
  CH INTERNATIONAL HOLDINGS, INC.

  
	
   

  	
  CLEAN HARBORS ANDOVER, LLC

  
	
   

  	
  CLEAN HARBORS ANTIOCH, LLC

  
	
   

  	
  CLEAN HARBORS ARAGONITE, LLC

  
	
   

  	
  CLEAN HARBORS ARIZONA, LLC

  
	
   

  	
  CLEAN HARBORS OF BALTIMORE, INC.

  
	
   

  	
  CLEAN HARBORS BATON ROUGE, LLC

  
	
   

  	
  CLEAN HARBORS BDT, LLC

  
	
   

  	
  CLEAN HARBORS BUTTONWILLOW, LLC

  
	
   

  	
  CLEAN HARBORS CHATTANOOGA, LLC

  
	
   

  	
  CLEAN HARBORS COFFEYVILLE, LLC

  
	
   

  	
  CLEAN HARBORS COLFAX, LLC

  
	
   

  	
  CLEAN HARBORS DEER PARK, L.P.

  
	
   

  	
  CLEAN HARBORS DEER TRAIL, LLC

  
	
   

  	
  CLEAN HARBORS DEVELOPMENT, LLC

  
	
   

  	
  CLEAN HARBORS DISPOSAL SERVICES, INC.

  
	
   

  	
  CLEAN HARBORS EL DORADO, LLC

  
	
   

  	
  CLEAN HARBORS FINANCIAL SERVICES COMPANY

  
	
   

  	
  CLEAN HARBORS FLORIDA, LLC

  
	
   

  	
  CLEAN HARBORS GRASSY MOUNTAIN, LLC

  
	
   

  	
  CLEAN HARBORS KANSAS, LLC

  
	
   

  	
  CLEAN HARBORS LAPORTE, L.P.

  

 

 

	
   

  	
  By:

  	
   /s/
  James M. Rutledge

  
	
   

  	
  Title: 

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
				

 

 

	
   

  	
  CLEAN HARBORS LAUREL, LLC

  
	
   

  	
  CLEAN HARBORS LONE MOUNTAIN, LLC

  
	
   

  	
  CLEAN HARBORS LONE STAR CORP.

  
	
   

  	
  CLEAN HARBORS LOS ANGELES, LLC

  
	
   

  	
  CLEAN HARBORS (MEXICO), INC.

  
	
   

  	
  CLEAN HARBORS OF TEXAS, LLC

  
	
   

  	
  CLEAN HARBORS PECATONICA, LLC

  
	
   

  	
  CLEAN HARBORS PLAQUEMINE, LLC

  
	
   

  	
  CLEAN HARBORS PPM, LLC

  
	
   

  	
  CLEAN HARBORS REIDSVILLE, LLC

  
	
   

  	
  CLEAN HARBORS SAN JOSE, LLC

  
	
   

  	
  CLEAN
  HARBORS RECYCLING SERVICES OF CHICAGO, LLC

  
	
   

  	
  CLEAN
  HARBORS RECYCLING SERVICES OF OHIO, LLC

  
	
   

  	
  CLEAN HARBORS TENNESSEE, LLC

  
	
   

  	
  CLEAN HARBORS WESTMORLAND, LLC

  
	
   

  	
  CLEAN HARBORS WHITE CASTLE, LLC

  
	
   

  	
  CLEAN HARBORS WILMINGTON, LLC

  
	
   

  	
  CROWLEY DISPOSAL, LLC

  
	
   

  	
  DISPOSAL PROPERTIES, LLC

  
	
   

  	
  GSX DISPOSAL, LLC

  
	
   

  	
  HARBOR MANAGEMENT CONSULTANTS, INC.

  
	
   

  	
  HARBOR INDUSTRIAL SERVICES TEXAS, L.P.

  
	
   

  	
  HILLIARD DISPOSAL, LLC

  
	
   

  	
  NORTHEAST CASUALTY REAL PROPERTY, LLC

  
	
   

  	
  ROEBUCK DISPOSAL, LLC

  
	
   

  	
  SAWYER DISPOSAL SERVICES, LLC

  
	
   

  	
  SERVICE CHEMICAL, LLC

  
	
   

  	
  TULSA DISPOSAL, LLC

  

 

 

	
   

  	
  By:

  	
  /s/ James M. Rutledge

  
	
   

  	
  Title: 

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
				

 

 

	
   

  	
  CLEAN HARBORS ENVIRONMENTAL SERVICES, INC

  
	
   

  	
  CLEAN HARBORS OF BRAINTREE, INC.

  
	
   

  	
  CLEAN HARBORS OF NATICK, INC.

  
	
   

  	
  CLEAN HARBORS SERVICES, INC.

  
	
   

  	
  MURPHY’S WASTE OIL SERVICE, INC.

  
	
   

  	
  CLEAN
  HARBORS KINGSTON FACILITY CORPORATION

  
	
   

  	
  CLEAN HARBORS OF CONNECTICUT, INC.

  
	
   

  	
  SPRING GROVE RESOURCE RECOVERY, INC.

  
	
   

  	
  CH CANADA HOLDINGS CORP.

  
	
   

  	
  CH CANADA GP, INC.

  
	
   

  	
  CLEAN HARBORS CANADA LP

  
	
   

  	
  CLEAN HARBORS CANADA, INC.

  
	
   

  	
  CLEAN HARBORS QUEBEC, INC.

  
	
   

  	
  CLEAN HARBORS MERCIER, INC.

  
	
   

  	
  510127 N.B. INC.

  

 

 

	
   

  	
  By:

  	
  /s/ James M. Rutledge

  
	
   

  	
  Title: 

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
				

 

 

REVOLVING
ADMINISTRATIVE AGENT,

ACCOUNTS
COLLATERAL AGENT AND

US REVOLVING
LENDER

 

BANK OF
AMERICA, N.A.,

Individually
and as Agent

 

	
  By:

  	
  /s/ Christopher M. O’Halloran

  	
   

  
	
  Title: 

  	
  Vice
  President

  	
   

  

 

 

CANADIAN
COLLATERAL AGENT

AND CANADIAN LENDER

 

BANK OF
AMERICA, N.A., CANADA BRANCH

Individually
and as Agent

 

	
  By:

  	
  /s/ Medina Sales de Andrade

  	
   

  
	
  Title: 

  	
  Vice
  President

  	
   

  

 

 

LC FACILITY
ADMINISTRATIVE AGENT

AND LC FACILITY COLLATERAL AGENT

 

CREDIT
SUISSE, CAYMAN ISLANDS BRANCH

 

	
  By:

  	
  /s/ Doreen Barr

  	
   

  
	
  Title: 

  	
  Vice
  President

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Morenikeji Ajayi

  	
   

  
	
  Title: 

  	
  Associate

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