Document:

2000 Directors' Stock Option Plan

 Exhibit 10.13 
  
 SEATTLE GENETICS, INC. 
 2000 DIRECTORS’ STOCK OPTION PLAN 
 (as amended February 5,
2010) 
  
 1. Purposes of the
Plan. The purposes of this Directors’ Stock Option Plan are to attract and retain the best available personnel for service as Directors of the Company, to provide additional incentive to the Outside Directors of the Company to
serve as Directors, and to encourage their continued service on the Board. 
  
 All options granted hereunder shall be nonstatutory stock options. 
  
 2. Definitions. As used herein, the following definitions shall apply: 
  
 (a) “Board” means the
Board of Directors of the Company. 
  
 (b) “Change of Control” means a sale of all or substantially all of the Company’s assets, or a merger, consolidation or other capital reorganization of the Company with or into another corporation, or any other
transaction or series of related transactions in which the Company’s stockholders immediately prior thereto own less than 50% of the voting stock of the Company (or its successor or parent) immediately thereafter. 
  
 (c) “Code” means the
Internal Revenue Code of 1986, as amended. 
  
 (d) “Common Stock” means the Common Stock of the Company. 
  
 (e) “Company” means Seattle Genetics, Inc., a Delaware corporation. 
  
 (f) “Continuous Status as a
Director” means the absence of any interruption or termination of service as a Director. 
  
 (g) “Director” means a member of the Board. 
  
 (h) “Employee” means
any person, including any officer or Director, employed by the Company or any Parent or Subsidiary of the Company. The payment of a director’s fee by the Company shall not be sufficient in and of itself to constitute “employment” by
the Company. 
  
 (i)
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (j) “Option” means a stock option granted pursuant to the Plan. All options shall be nonstatutory
stock options (i.e., options that are not intended to qualify as incentive stock options under Section 422 of the Code). 
  
 (k) “Optioned Stock” means the Common Stock subject to an Option. 
  
 (l) “Optionee” means an
Outside Director who receives an Option. 
  
 (m) “Outside Director” means a Director who is not an Employee. 
  
 (n) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in
Section 424(e) of the Code. 
  
 (o) “Plan” means this 2000 Directors’ Stock Option Plan. 
  
 (p) “Share” means a share of the Common Stock, as adjusted in accordance with Section 11 of the
Plan. 
  
 (q)
“Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code. 
  
 3. Stock Subject to the Plan. Subject to the provisions of Section 11 of the Plan, the
maximum aggregate number of Shares which may be optioned and sold under the Plan is 900,000 Shares of Common Stock (the “Pool”). The Shares may be authorized, but unissued, or reacquired Common Stock. 
  
 If an Option should expire or become unexercisable for any
reason without having been exercised in full, the unpurchased Shares which were subject thereto shall, unless the Plan has been terminated, become available for future grant under the Plan. In addition, any Shares of Common Stock that are retained
by the Company upon exercise of an Option in 
  

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 order to satisfy the exercise price for such Option, or any withholding taxes due with respect to such
exercise, shall be treated as not issued and shall continue to be available under the Plan. If Shares that were acquired upon exercise of an Option are subsequently repurchased by the Company, such Shares shall not in any event be returned to the
Plan and shall not become available for future grant under the Plan. 
  
 4. Administration of and Grants of Options under the Plan.  
  
 (a) Administrator. Except as otherwise required herein, the Plan shall be administered by the Board.

  
 (b) Procedure for
Grants. All grants of Options hereunder shall be automatic and nondiscretionary and shall be made strictly in accordance with the following provisions: 
  
 (i) No person shall have any discretion to select which Outside Directors shall be granted
Options or to determine the number of Shares to be covered by Options granted to Outside Directors. 
  
 (ii) Each person who is an Outside Director on the effective date of this Plan (as determined under Section 6 below)
shall on such date be automatically granted an Option to purchase 25,000 Shares (an “Initial Option”) provided that such Outside Director had not previously been granted any stock options by the Company. In addition, each Outside Director
shall on the date on which such person first becomes an Outside Director after the effective date of this Plan, whether through election by the shareholders of the Company or appointment by the Board of Directors to fill a vacancy, be automatically
granted an Initial Option. 
  
 (iii)
Each Outside Director, including an Outside Director who did not receive an Initial Option grant, shall be automatically granted an Option to purchase 17,500 Shares (the “Annual Option”) on the date of each Annual Meeting of the
Company’s shareholders immediately following which such Outside Director is serving on the Board, provided that, on such date, he or she shall have served on the Board for at least six (6) months prior to the date of such Annual Meeting.

  
 (iv) Notwithstanding the
provisions of subsections (ii) and (iii) hereof, in the event that a grant would cause the number of Shares subject to outstanding Options plus the number of Shares previously purchased upon exercise of Options to exceed the Pool, then
each such automatic grant shall be for that number of Shares determined by dividing the total number of Shares remaining available for grant by the number of Outside Directors receiving an Option on the automatic grant date. Any further grants shall
then be deferred until such time, if any, as additional Shares become available for grant under the Plan through action of the stockholders to increase the number of Shares which may be issued under the Plan or through cancellation or expiration of
Options previously granted hereunder. 
  
 (v) Notwithstanding the provisions of subsections (ii) and (iii) hereof, any grant of an Option made before the Company has obtained stockholder approval of the Plan in accordance with Section 17 hereof shall be conditioned
upon obtaining such stockholder approval of the Plan in accordance with Section 17 hereof. 
  
 (vi) The terms of each Initial Option granted hereunder shall be as follows: 
  
 (1) each Initial Option shall be exercisable
only while the Outside Director remains a Director of the Company, except as set forth in Section 9 below; 
  
 (2) the exercise price per Share shall be 100% of the fair market value per Share on the date of grant of each Initial
Option, determined in accordance with Section 8 hereof; 
  
 (3) each Initial Option shall vest and become exercisable at the rate of twenty five percent (25%) of the Shares subject to the Initial Option on the first anniversary of the date of grant of the
Initial Option and 1/36 of the remaining Shares subject to the Initial Option each month thereafter. 
  
 (vii) The terms of each Annual Option granted hereunder shall be as follows: 
  
 (1) each Annual Option shall be exercisable
only while the Outside Director remains a Director of the Company, except as set forth in Section 9 below; 
  
 (2) the exercise price per Share shall be 100% of the fair market value per Share on the date of grant of each Annual
Option, determined in accordance with Section 8 hereof; 
  

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 (3) each Annual Option shall vest and become exercisable at the rate of one
hundred percent (100%) of the Shares subject to the Annual Option on the day before the first anniversary of the date of grant of the Annual Option. 
  
 (c) Powers of the Board. Subject to the provisions and restrictions of the Plan, the Board shall have the
authority, in its discretion: (i) to determine, upon review of relevant information and in accordance with Section 8(b) of the Plan, the fair market value of the Common Stock; (ii) to determine the exercise price per Share of Options
to be granted, which exercise price shall be determined in accordance with Section 8 of the Plan; (iii) to interpret the Plan; (iv) to prescribe, amend and rescind rules and regulations relating to the Plan; (v) to authorize any
person to execute on behalf of the Company any instrument required to effectuate the grant of an Option previously granted hereunder; and (vi) to make all other determinations deemed necessary or advisable for the administration of the Plan.

  
 (d) Effect of Board’s
Decision. All decisions, determinations and interpretations of the Board shall be final and binding on all Optionees and any other holders of any Options granted under the Plan. 
  
 (e) Suspension or Termination of
Option. If the Chief Executive Officer or his or her designee reasonably believes that an Optionee has committed an act of misconduct, such officer may suspend the Optionee’s right to exercise any option pending a determination by
the Board (excluding the Outside Director accused of such misconduct). If the Board (excluding the Outside Director accused of such misconduct) determines an Optionee has committed an act of embezzlement, fraud, dishonesty, nonpayment of an
obligation owed to the Company, breach of fiduciary duty or deliberate disregard of the Company rules resulting in loss, damage or injury to the Company, or if an Optionee makes an unauthorized disclosure of any Company trade secret or confidential
information, engages in any conduct constituting unfair competition, induces any Company customer to breach a contract with the Company or induces any principal for whom the Company acts as agent to terminate such agency relationship, neither the
Optionee nor his or her estate shall be entitled to exercise any Option whatsoever. In making such determination, the Board of Directors (excluding the Outside Director accused of such misconduct) shall act fairly and shall give the Optionee an
opportunity to appear and present evidence on Optionee’s behalf at a hearing before the Board or a committee of the Board. 
  
 5. Eligibility. Options may be granted only to Outside Directors. All Options shall be automatically granted in accordance
with the terms set forth in Section 4(b) above. An Outside Director who has been granted an Option may, if he or she is otherwise eligible, be granted an additional Option or Options in accordance with such provisions. 
  
 The Plan shall not confer upon any Optionee any
right with respect to continuation of service as a Director or nomination to serve as a Director, nor shall it interfere in any way with any rights which the Director or the Company may have to terminate his or her directorship at any time.

  
 6. Term of Plan; Effective
Date. The Plan shall become effective on the effectiveness of the registration statement under the Securities Act of 1933, as amended, relating to the Company’s initial public offering of securities. It shall continue in effect for
a term of ten (10) years unless sooner terminated under Section 13 of the Plan. 
  
 7. Term of Options. The term of each Option shall be ten (10) years from the date of grant thereof unless an Option terminates sooner pursuant to Section 9 below. 

 
 8. Exercise Price and Consideration. 

  
 (a) Exercise
Price. The per Share exercise price for the Shares to be issued pursuant to exercise of an Option shall be 100% of the fair market value per Share on the date of grant of the Option. 
  
 (b) Fair Market Value. The
fair market value shall be determined by the Board; provided however that in the event the Common Stock is traded on the Nasdaq National Market or listed on a stock exchange, the fair market value per Share shall be the closing sales price on such
system or exchange on the date of grant of the Option (or, in the event that the Common Stock is not traded on such date, on the immediately preceding trading date), as reported in The Wall Street Journal, or if there is a public market for
the Common Stock but the Common Stock is not traded on the Nasdaq National Market or listed on a stock exchange, the fair market value per Share shall be the mean of the bid and asked prices of the Common Stock in the over-the-counter market on the
date of grant, 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). 
  
 (c) Form of
Consideration. The consideration to be paid for the Shares to be issued upon exercise of an Option shall consist entirely of cash, check, other Shares of Common Stock having a fair market value on the date of surrender 
  

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 equal to the aggregate exercise price of the Shares as to which the Option shall be
exercised (which, if acquired from the Company, shall have been held for at least six months), or any combination of such methods of payment and/or any other consideration or method of payment as shall be permitted under applicable corporate law.

  
 9. Exercise of Option.  

 
 (a) Procedure for Exercise; Rights as
a Stockholder. Any Option granted hereunder shall be exercisable at such times as are set forth in Section 4(b) above; provided however that no Options shall be exercisable prior to stockholder approval of the Plan in accordance
with Section 17 below has been obtained. 
  
 An Option may not be exercised for a fraction of a Share. 
  
 An Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance
with the terms of the Option by the person entitled to exercise the Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company. Full payment may consist of any consideration and method of
payment allowable under Section 8(c) of the Plan. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the stock certificate evidencing such Shares, no
right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. A share certificate for the number of Shares so acquired shall be issued to the
Optionee as soon as practicable after exercise of the Option. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 11 of the Plan.

  
 Exercise of an Option in any
manner shall result in a decrease in the number of Shares which thereafter may be available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 
  
 (b) Termination of Continuous Status as a
Director. If an Outside Director ceases to serve as a Director, he or she may, but only within ninety (90) days after the date he or she ceases to be a Director of the Company, exercise his or her Option to the extent that he or
she was entitled to exercise it at the date of such termination. Notwithstanding the foregoing, in no event may the Option be exercised after its term set forth in Section 7 has expired. To the extent that such Outside Director was not entitled
to exercise an Option at the date of such termination, or does not exercise such Option (to the extent he or she was entitled to exercise) within the time specified above, the Option shall terminate and the Shares underlying the unexercised portion
of the Option shall revert to the Plan. 
  
 (c) Disability of Optionee. Notwithstanding Section 9(b) above, in the event a Director is unable to continue his or her service as a Director with the Company as a result of his or her total and permanent disability
(as defined in Section 22(e)(3) of the Code), he or she may, but only within twelve (12) months from the date of such termination, exercise his or her Option to the extent he or she was entitled to exercise it at the date of such
termination. Notwithstanding the foregoing, in no event may the Option be exercised after its term set forth in Section 7 has expired. To the extent that he or she was not entitled to exercise the Option at the date of termination, or if he or
she does not exercise such Option (to the extent he or she was entitled to exercise) within the time specified above, the Option shall terminate and the Shares underlying the unexercised portion of the Option shall revert to the Plan. 
  
 (d) Death of Optionee. In
the event of the death of an Optionee: (A) during the term of the Option who is, at the time of his or her death, a Director of the Company and who shall have been in Continuous Status as a Director since the date of grant of the Option, or
(B) three (3) months after the termination of Continuous Status as a Director, the Option may be exercised, at any time within twelve (12) months following the date of death, by the Optionee’s estate or by a person who acquired
the right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that had accrued at the date of death or the date of termination, as applicable. Notwithstanding the foregoing, in no event may the Option be
exercised after its term set forth in Section 7 has expired. To the extent that an Optionee was not entitled to exercise the Option at the date of death or termination or if he or she does not exercise such Option (to the extent he or she was
entitled to exercise) within the time specified above, the Option shall terminate and the Shares underlying the unexercised portion of the Option shall revert to the Plan. 
  

 10. Nontransferability of Options. The Option may not be sold, pledged, assigned, hypothecated, transferred
or disposed of in any manner other than by will or by the laws of descent or distribution or pursuant to a qualified domestic relations order (as defined by the Code or the rules thereunder). The designation of a beneficiary by an Optionee does not
constitute a transfer. An Option may be exercised during the lifetime of an Optionee only by the Optionee or a transferee permitted by this Section. 
  

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 11. Adjustments Upon Changes in Capitalization; Corporate Transactions. 

  
 (a)
Adjustment. Subject to any required action by the stockholders of the Company, the number of shares of Common Stock covered by each outstanding Option, the number of Shares of Common Stock set forth in Sections 4(b)(ii),
(iii) and (iv) above, and the number of Shares of Common Stock which have been authorized for issuance under the Plan but as to which no Options have yet been granted or which have been returned to the Plan upon cancellation or expiration
of an Option, as well as the price per Share of Common Stock covered by each such outstanding Option, shall be proportionately adjusted for any increase or decrease in the number of issued Shares of Common Stock resulting from a stock split, reverse
stock split, stock dividend, combination or reclassification of the Common Stock (including any such change in the number of Shares of Common Stock effected in connection with a change in domicile of the Company) or any other increase or decrease in
the number of issued Shares of Common Stock effected without receipt of consideration by the Company; provided however that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of
consideration.” Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option. 
  
 (b) Change of Control. In
the event of any transaction that qualifies as a Change of Control and notwithstanding whether or not outstanding Options are assumed, substituted for or terminated in connection with the transaction, the vesting of each outstanding Option shall
accelerate in full such that each Optionee shall have the right to exercise his or her Option as to all of the Optioned Stock, including Shares as to which the Option would not otherwise be exercisable, immediately prior to consummation of the
transaction. 
  
 For purposes of
this Section 11(b), an Option shall be considered assumed, without limitation, if, at the time of issuance of the stock or other consideration upon such Change of Control, each Optionee would be entitled to receive upon exercise of an Option
the same number and kind of shares of stock or the same amount of property, cash or securities as the Optionee would have been entitled to receive upon the occurrence of such transaction if the Optionee had been, immediately prior to such
transaction, the holder of the number of Shares of Common Stock covered by the Option at such time (after giving effect to any adjustments in the number of Shares covered by the Option as provided for in this Section 11); provided however that
if such consideration received in the transaction was not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon
exercise of the Option to be solely common stock of the successor corporation or its Parent equal to the Fair Market Value of the per Share consideration received by holders of Common Stock in the transaction. 
  
 (c) Certain
Distributions. In the event of any distribution to the Company’s stockholders of securities of any other entity or other assets (other than dividends payable in cash or stock of the Company) without receipt of consideration by the
Company, the Administrator may, in its discretion, appropriately adjust the price per Share of Common Stock covered by each outstanding Option to reflect the effect of such distribution. 
  
 12. Time of Granting Options. The date of grant of an Option shall, for all purposes, be the
date determined in accordance with Section 4(b) hereof. Notice of the determination shall be given to each Outside Director to whom an Option is so granted within a reasonable time after the date of such grant. 
  
 13. Amendment and Termination of the Plan. 

  
 (a) Amendment and
Termination. The Board may amend or terminate the Plan from time to time in such respects as the Board may deem advisable; provided that, to the extent necessary and desirable to comply with Rule 16b-3 under the Exchange Act (or any
other applicable law or regulation), the Company shall obtain approval of the stockholders of the Company to Plan amendments to the extent and in the manner required by such law or regulation. 
  
 (b) Effect of Amendment or
Termination. Any such amendment or termination of the Plan that would impair the rights of any Optionee shall not affect Options already granted to such Optionee and such Options shall remain in full force and effect as if this Plan had
not been amended or terminated, unless mutually agreed otherwise between the Optionee and the Board, which agreement must be in writing and signed by the Optionee and the Company. 
  
 14. Conditions Upon Issuance of Shares. Notwithstanding any other provision of the Plan or
any agreement entered into by the Company pursuant to the Plan, the Company shall not be obligated, and shall have no liability for failure, to issue or deliver any Shares under the Plan unless such issuance or delivery would comply with the legal
requirements relating to the administration of stock option plans under applicable U.S. state corporate laws, U.S. federal and applicable state 
  

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 securities laws, the Code, any stock exchange or Nasdaq rules or regulations to which the Company may be
subject and the applicable laws of any other country or jurisdiction where Options are granted under the Plan, as such laws, rules, regulations and requirements shall be in place from time to time (the “Applicable Laws”). Such
compliance shall be determined by the Company in consultation with its legal counsel. 
  
 As a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and
warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by
law. 
  
 15. Reservation of
Shares. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
  
 16. Option Agreement. Options shall be
evidenced by written option agreements in such form as the Board shall approve. 
  
 17. Stockholder Approval. If required by the Applicable Laws, continuance of the Plan shall be subject to approval by the stockholders of the Company. Such stockholder approval shall be
obtained in the manner and to the degree required under the Applicable Laws. 
  

 6Employment Agreement

 Exhibit 10.43 
 EXECUTIVE EMPLOYMENT AGREEMENT 
 THIS
EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the 1st day of April 2009, by and between SEATTLE GENETICS, INC., a Delaware corporation (“Company”) and Vaughn B. Himes (“Executive”).

 RECITALS: 
 A. The Company desires that Executive perform his services as Executive Vice President, Technical Operations of the Company. 
 B. Executive desires to continue in such engagement. 
 C. This Agreement contains other provisions applicable to the employment of Executive by the Company. 
 In consideration of the above Recitals and the provisions of this Agreement, the Company and Executive agree as follows: 
  

	I.	DUTIES 

 1.1 Title and
Responsibilities. Executive shall serve as Executive Vice President, Technical Operations of the Company, which title may be changed at any time in the sole discretion of the Company. Executive’s responsibilities and duties shall include
those inherent in Executive’s position with the Company and shall further include such other managerial responsibilities and executive duties consistent with such position as may be assigned to Executive from time to time by the Chief Executive
Officer of the Company. Executive shall devote his best efforts and full business time to the business and interests of the Company. During the term of Executive’s employment with the Company, Executive may serve on the board of directors of
other companies, manage personal investments, and engage in civic and charitable activities, provided that such activities shall not represent a conflict of interest with the Company and do not materially detract from fulfilling Executive’s
responsibilities and duties to the Company. 
  

	II.	COMPENSATION 

 2.1 Base
Salary. Executive shall be paid a base salary (“Base Salary”) by the Company during the term of Executive’s employment at the rate determined by the Compensation Committee of the Board of Directors (the
“Compensation Committee”), which is currently $310,000 per year. Executive’s Base Salary shall be reviewed annually by the Compensation Committee and evaluated based on performance and salary levels of other executives of
comparable position within the industry and geographic location of the Company. Based upon such evaluation and review, Executive’s Base Salary may be adjusted from time to time as determined by the Compensation Committee in its sole discretion.

 2.2 Bonus. Executive shall receive a bonus of $25,000 payable
upon commencement of his employment with the Company (“Initial Bonus”). Executive will be responsible for the payment of any taxes associated with this Initial Bonus. If Executive’s employment terminates by Voluntary
Termination (as defined below) within one (1) year of Executive’s hire date, then Executive shall reimburse the Company the amount of the Initial Bonus upon his termination date. In addition to the Initial Bonus, Executive may be
eligible to receive an annual bonus (“Annual Bonus”), currently targeted at thirty-five percent (35%) of Executive’s Base Salary, based upon performance criteria and financial and operational results of the Company as
determined by the Compensation Committee. To the extent that the Annual Bonus is earned and becomes payable in accordance with the terms under which it is offered and unless otherwise specified in a written document reflecting the bonus arrangement,
any Annual Bonus earned by Executive will be paid to Executive prior to two and one half (2 1/2) months following the year in which the Annual Bonus becomes payable as a result of Executive’s vesting in the right to the Annual Bonus. 
 2.3 Stock Options. Upon approval by the Company’s Board of Directors, Executive will be granted an option to purchase 200,000
shares of Company common stock at an exercise price set at the closing sales price of the Company’s common stock as of the date of grant. Executive may be eligible to receive additional grants of stock options or purchase rights from time to
time in the future, on such terms and subject to such conditions as the Compensation Committee or the Board of Directors shall determine as of the date of any such grant and pursuant to the existing stock plan(s) of the Company. 
 2.4 Other Benefits. 
 (i) Executive shall be entitled to such employee benefits generally available to full-time salaried employees of the Company, including without limitation, health insurance, paid vacation of not less than
four (4) weeks per year, retirement plans and other similar benefits; provided, that Company reserves the right to amend, modify, terminate or make any other changes in such benefits generally available to full-time salaried employees of the
Company at any time in its sole discretion. 
 (ii) The Company shall pay or reimburse Executive for all travel
and entertainment expenses incurred by Executive in connection with Executive’s duties on behalf of the Company, subject to the reasonable approval of the Company. Executive shall only be entitled to reimbursement to the extent that Executive
follows the reasonable procedures established by the Company for reimbursement of such expenses which will include, but will not be limited to, providing satisfactory evidence of such expenditures. 
  

	III.	TERMINATION OF EMPLOYMENT 

 3.1 Termination of Employment and Severance Benefits. 
 (a) Termination of
Employment. This Agreement may be terminated upon the occurrence of any of the following events: 
 (i) The
Company’s determination in good faith that it is terminating Executive for Cause (as defined in Section 3.3 below) (“Termination for Cause”); 
  

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 (ii) The Company’s determination that it is terminating Executive
without Cause, which determination may be made by the Company at any time at the Company’s sole discretion, for any or no reason (“Termination Without Cause”); 
 (iii) The effective date of a written notice sent to the Company from Executive stating that Executive is electing to
terminate his employment with the Company (“Voluntary Termination”); 
 (iv) A change in
Executive’s status such that a Constructive Termination (as defined in Section 3.2(d) below) has occurred; or 
 (v) Following Executive’s death or Disability (as defined in Section 3.4 below). 
 3.2 Severance Benefits. Executive shall be entitled to receive severance benefits upon termination of employment only as set forth in this Section 3.2 contingent upon resignation from all
positions held by Executive and only if Executive executes a full release and waiver of claims within thirty (30) days of Executive’s termination (and allows it to become effective in accordance with its terms): 
 (a) Voluntary Termination. If Executive’s employment terminates by Voluntary Termination, then Executive
shall not be entitled to receive payment of any severance benefits. Executive will receive payment(s) for all salary and unpaid vacation accrued as of the date of Executive’s termination of employment and Executive’s benefits will be
continued under the Company’s then existing benefit plans and policies in accordance with such plans and policies in effect on the date of termination and in accordance with applicable law. 
 (b) Involuntary Termination. If Executive’s employment is terminated under
Section 3.1(a)(ii) (Termination Without Cause) or 3.1(a)(iv) (Constructive Termination) above (such termination, an “Involuntary Termination”), Executive will be entitled to receive payment of severance benefits equal to
Executive’s regular monthly salary for twelve (12) months (the “Severance Period”). Such payments shall be made, at the Company’s option, in a lump sum within thirty (30) days after the date of Executive’s
Involuntary Termination or periodically over the Severance Period according to the Company’s standard payroll schedule, provided that such payments may not extend beyond two and one-half (2 1/2) months following the end of the calendar year in which the date of
Involuntary Termination occurs. Executive will also be entitled to receive payment on the date of Involuntary Termination of the pro rata portion of any Annual Bonus based on achievement of the specific corporate and individual performance targets
established for the fiscal year in which the termination occurs, payable prior to two and one-half (2 1/2) months following the end of the calendar year in which the date of Involuntary Termination occurs. Executive will receive payment(s) for all salary and unpaid vacation
accrued as of the date of Executive’s termination of employment and health insurance benefits will be continued through payment of Executive’s COBRA health insurance premiums by the Company over the Severance Period so long as Executive
timely elects to continue Executive’s health insurance coverage under COBRA and subject to COBRA’s terms, conditions and requirements. 
  

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 (c) Termination for Cause. If Executive’s employment is
terminated for Cause, then Executive shall not be entitled to receive payment of any severance benefits. Executive will receive payment(s) for all salary and unpaid vacation accrued as of the date of Executive’s termination of employment and
Executive’s benefits will be continued under the Company’s then existing benefit plans and policies in accordance with such plans and policies in effect on the date of termination and in accordance with applicable law. 
 (d) Constructive Termination. “Constructive Termination” shall be deemed to occur if
(A) there is a material reduction or change in job duties, responsibilities and requirements inconsistent with Executive’s position with the Company and prior duties, responsibilities and requirements, provided that neither a mere change
in title alone nor reassignment to a position that is substantially similar to the position held prior to the change in terms of job duties, responsibilities or requirements shall constitute a material reduction in job responsibilities; or
(B) there is a reduction in Executive’s then-current base salary by at least twenty percent (20%), provided that an across-the-board reduction in the salary level of all other senior executives by the same percentage amount as part of a
general salary level reduction shall not constitute such a salary reduction; or (C) Executive refuses to relocate to a facility or location more than 50 miles from the Company’s current location; provided, however, that in each case above,
Executive must first provide notice of the existence of the circumstances giving rise to a Constructive Termination within ninety (90) days of the initial existence of such circumstances and the Company must be provided with a period of thirty
(30) days from the date of receipt of such notice to cure the circumstances giving rise to a Constructive Termination; provided further that the Company may notify Executive at any time prior to expiration of the cure period that it will not
cure the circumstances, in which case the cure period shall end immediately upon such notification. 
 (e) Termination by Reason of Death or Disability. In the event that Executive’s employment with the Company terminates as a result of Executive’s death or Disability (as defined in Section 3.4 below),
Executive or Executive’s estate or representative will receive all salary and unpaid vacation accrued as of the date of Executive’s death or Disability and any other benefits payable under the Company’s then existing benefit plans and
policies in accordance with such plans and policies in effect on the date of death or Disability and in accordance with applicable law. In addition, Executive’s estate or representative will receive the amount of Executive’s Annual Bonus
for the fiscal year in which the death or Disability occurs to the extent that the Annual Bonus has been earned as of the date of Executive’s death or Disability, as determined by the Board of Directors or its Compensation Committee based on
the specific corporate and individual performance targets established for such fiscal year, which will be paid prior to two and one-half (2 1/2) months following the year of Executive’s death or Disability (subject to Executive’s termination as a result of such Disability).

 3.3 Definition of Cause. For purposes of this Agreement, “Cause” for Executive’s
termination will exist at any time after the happening of one or more of the following events: 
 (a) An action
or omission of Executive which constitutes a willful and intentional material breach of this Agreement or the Confidentiality Agreement (defined below), including without limitation, Executive’s theft or other misappropriation of the
Company’s proprietary information; 
  

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 (b) Executive’s commitment of fraud, embezzlement, misappropriation of
funds or breach of trust in connection with Executive’s employment; or 
 (c) Executive’s conviction of
any crime which involves dishonesty or a breach of trust, or gross negligence in connection with the performance of the Executive’s duties. 
 3.4. Definition of Disability. For purposes of this Agreement “Disability” shall mean any medically determinable physical or mental impairment that can be expected to result in
death or that has lasted or can be expected to last for a continuous period of not less than twelve (12) months and renders Executive unable to perform the duties of Executive Vice President, Technical Operations. 
  

	IV.	STOCK ACCELERATION 

 4.1
Accelerated Vesting. In addition to any other right of acceleration that may be provided pursuant to any stock option plan or agreement pursuant to which Executive has been granted options to purchase shares of Common Stock of the Company, if
Executive’s employment is terminated due to an Involuntary Termination, the vesting of any unvested stock options and the lapsing of the Company’s repurchase right with respect to any shares of restricted stock held by Executive as of the
date of Executive’s Involuntary Termination shall accelerate such that the options shall become vested and the repurchase right shall lapse as to an additional twelve (12) months; provided that if such Involuntary Termination occurs
within twelve (12) months after a Change of Control (as defined below), then the vesting of all stock options and the lapse of the Company’s repurchase right with respect to all shares of restricted stock of the Company held by Executive
shall be accelerated completely so that one hundred percent (100%) of the shares of common stock covered by the stock options are fully vested and exercisable and the Company’s repurchase right has lapsed with respect to all shares of
restricted stock held by Executive. 
 4.2 Definition of Change of Control. For purposes of this Agreement,
“Change of Control” shall mean the occurrence of any of the following events: (i) an acquisition of the Company by another entity by means of any transaction or series of related transactions (including, without limitation, any
reorganization, merger or consolidation but excluding any merger effected exclusively for the purpose of changing the domicile of the Company), or (ii) a sale of all or substantially all of the assets of the Company (collectively, a
“Merger”), so long as in either case the Company’s stockholders of record immediately prior to such Merger will, immediately after such Merger, hold less than fifty percent (50%) of the voting power of the surviving or
acquiring entity. 
  

	V.	RESTRICTIVE COVENANTS 

 5.1 Confidentiality Agreement. Executive shall sign, or has signed the Company’s form of Proprietary Information and Inventions Agreement (the “Confidentiality Agreement”) substantially in the form attached
hereto as Exhibit A. Executive hereby represents and warrants to the Company that he has complied with all obligations under the Confidentiality Agreement and agrees to continue to abide by the terms of the Confidentiality Agreement and
further agrees that the provisions of the Confidentiality Agreement shall survive any termination of this Agreement or of Executive’s employment relationship with the Company, including the noncompetition provisions of the Confidentiality
Agreement. 
  

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	VI.	OTHER PROVISIONS 

 6.1
Limitation on Severance Benefits. In the event that any severance benefits provided for in this Agreement to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of
1986, as amended (the “Code”) and (ii) but for this Section 6.1, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s severance benefits under Section 3.2 shall be payable
either: 
 (a) in full, or 
 (b) as to such lesser amount which would result in no portion of such benefits being subject to excise tax under
Section 4999 of the Code, 
 whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes
and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of benefits under Section 3.2 notwithstanding that all or some portion of such benefits may be taxable under
Section 4999 of the Code. Any determination required under this Section 6.1 shall be made in writing by independent public accountants appointed by Executive and reasonably acceptable to the Company (the “Accountants”),
whose determination shall be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required by this Section 6.1, the Accountants may make reasonable assumptions and approximations
concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Executive shall furnish to the Accountants such information and documents as the
Accountants may reasonably request in order to make a determination under this Section 6.1. The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 6.1. If a
reduced amount is to be paid under this Section 6.1, reductions in payments and/or benefits shall occur in the following order: (1) reduction of cash payments, (2) cancellation of accelerated vesting of stock awards other than stock
options, (3) cancellation of accelerated vesting of stock options and (4) reduction of other benefits (if any) paid to the Executive. 
 6.2 Code Section 409A. This Agreement shall be interpreted to avoid any penalty sanctions under Section 409A of the Code and the final regulations and any guidance promulgated thereunder
(“Section 409A”). If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions under Section 409A, then such benefit or payment shall be provided in full at the earliest time
thereafter when such sanctions will not be imposed. All payments to be made upon a termination of employment under this Agreement may be made only upon a “separation of service” under Section 409A. Notwithstanding anything to the
contrary in this Agreement, if at the time of Executive’s termination of employment, Executive is a “specified employee” within the meaning of Section 409A, and the deferral of the commencement of any severance payments or
benefits otherwise payable pursuant to this Agreement as a result of such termination of employment is necessary in

  

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order to prevent any accelerated income recognition or additional tax under Section 409A(a)(1), then the Company will not commence any payment of any such severance payments or benefits
otherwise required hereunder (but without any reduction in such payments or benefits ultimately paid or provided to Executive) that (a) will not and may not under any circumstances, regardless of when such termination occurs, be paid in full by
March 15 of the year following Executive’s termination (or two and one half (2 1/2) months after the close of the Company’s fiscal year, if later), and (b) are in excess of the lesser of (i) two (2) times Executive’s then annual compensation or (ii) two
(2) times the limit on compensation set forth in Section 401(a)(17) of the Code for the year in which Executive’s employment is terminated and will not be paid by the end of the second calendar year following the year in which the
termination occurs, until the first payroll date that occurs after the date that is six (6) months following Executive’s “separation of service” with the Company (as defined under Code Section 409A). If any payments are
delayed due to such requirements, such amounts will be paid in a lump sum to Executive on the earliest of (x) Executive’s death following the date of Executive’s termination of employment with the Company or (y) the first payroll
date that occurs after the date that is six (6) months following Executive’s “separation of service” with the Company. For these purposes, each severance payment or benefit is designated as a separate payment or benefit and will
not collectively be treated as a single payment or benefit. This provision is intended to comply with the requirements of Code Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the
additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions
which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A. Notwithstanding anything to the contrary set forth in this Agreement, to the
extent that any amendment to this Agreement with respect to the payment of any severance payments or benefits would constitute under Section 409A a delay or acceleration in a payment or a change in the form of payment, then such amendment must
be done in a manner that complies with Section 409A(a)(4)(C). 
 6.3 Indemnification. The Company hereby
agrees to indemnify and hold the Executive harmless, to the fullest extent permitted by law and as set forth in the Amended and Restated Certificate of Incorporation of the Company, from and against any expenses, including legal fees, and all
judgments, fines and amounts paid in settlement and reasonably incurred in connection with legal, administrative or investigative proceedings to which the Executive is made, or threatened to be made, a party by reason of the fact the Executive is or
was a director or officer of the Company. 
 6.4 Entire Agreement. This Agreement, the Confidentiality Agreement and any
agreement pertaining to Executive’s stock options or shares of restricted stock contain the entire agreement and understanding of the parties with respect to Executive’s employment by the Company and compensation payable to Executive by
the Company and supersede all prior understandings, agreements and discussions. This Agreement may only be amended or modified by a written instrument executed by Executive and the Chief Executive Officer of the Company pursuant to authorization by
the Compensation Committee. 
  

 -7- 

 6.5 Notices. Any and all notices permitted or required to be given under this
Agreement must be in writing. Notices will be deemed given (i) on the first business day after having been sent by commercial overnight courier with written verification of receipt, or (ii) on the third business day after having been sent
by registered or certified mail from a location on the United States mainland, return receipt requested, postage prepaid, whichever occurs first, at the address set forth below or at any new address, notice of which will have been given in
accordance with this Section 6.5: 
  

			
	If to the Company:	  	Seattle Genetics, Inc.
		  	21823 30th Drive SE
		  	Bothell, WA 98021
		  	Attn: General Counsel
		
	If to Executive:	  	Vaughn B. Himes

 6.6 Non-Waiver.
Failure to enforce at any time any of the provisions of this Agreement shall not be interpreted to be a waiver of such provisions or to affect either the validity of this Agreement or the right of either party thereafter to enforce each and every
provision of this Agreement. 
 6.7 Separability. If one or more provisions of this Agreement is finally determined to be
invalid or unenforceable, such provision will not affect or impair the other provisions of this Agreement, all of which will continue to be in effect and will be enforceable, provided, however, that any such invalid provisions shall, to the extent
possible, be reformed so as to implement insofar as practicable the intentions of the parties. 
 6.8 Term. The
employment of Executive under this Agreement shall be for an unspecified term. The Company and Executive acknowledge and agree that Executive’s employment is and shall continue to be at-will, as defined under applicable law, and that
Executive’s employment with the Company may be terminated by either party at any time for any or no reason, and with or without notice. If Executive’s employment terminates for any reason, Executive shall not be entitled to any payments,
benefits, damages award or compensation other than as provided in this Agreement. 
 6.9 Law. This Agreement shall be
interpreted in accordance with the laws of the State of Washington. 
 6.10 No Duty to Mitigate. Executive shall not be
required to mitigate the amount of any payment contemplated by this Agreement (whether by seeking new employment or in any other manner), nor, except as otherwise provided in this Agreement, shall any such payment be reduced by any earnings that
Executive may receive from any other source. 
 6.11 Legal Fees. In the event either party breaches this Agreement, the
nonbreaching party shall be entitled to recover from the breaching party any and all damages, costs and expenses, including without limitation, attorneys’ fees and court costs, incurred by the nonbreaching party as a result of the breach.

  

 -8- 

 6.12 Counterparts. This Agreement may be executed in counterparts which when
taken together will constitute one instrument. Any copy of this Agreement with the original signatures of all parties appended will constitute an original. 
 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. 
  

			
	COMPANY:
	
	SEATTLE GENETICS, INC.
		
	By:	 	/s/ Clay B. Siegall
	Name:	 	Clay B. Siegall
	Title:	 	President & CEO
	
	EXECUTIVE
	
	/s/ Vaughn B. Himes
	Vaughn B. Himes

  

 -9-

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