Document:

Modification Agreement

 EXHIBIT 10.1 
 MODIFICATION AGREEMENT 
 THIS MODIFICATION AGREEMENT, dated as of March 30, 2007 (this
“Modification Agreement”), of that certain Credit Agreement referenced below is by and among Ventas Realty, Limited Partnership (the “Borrower”), the Guarantors, the undersigned Lenders, and Bank of America, N.A.,
as administrative agent (the “Administrative Agent”), the Issuing Bank and the Swingline Lender. Capitalized terms used but not otherwise defined herein have the meanings provided in the Credit Agreement. 
 WITNESSETH 
 WHEREAS, a revolving credit
facility was established in favor of the Borrower pursuant to the terms of that certain Credit and Guaranty Agreement, dated as of April 26, 2006 (as amended, restated, extended, supplemented, renewed, replaced or otherwise modified from time
to time, the “Credit Agreement”), by and among the Borrower, the Guarantors, the Lenders, and the Administrative Agent; 
 WHEREAS, the Borrower has requested that the Total Revolving Committed Amount be increased by $100 million from $500 million to $600 million; and 
 WHEREAS, certain of the Revolving Lenders have agreed to increase their Revolving Commitments pursuant to Section 2.1(d) of the Credit Agreement, as shown on Schedule 1.1 attached hereto, on the terms and
conditions set forth herein. 
 NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1. Increase in Revolving Commitments. Each of the
Revolving Lenders party to this Modification Agreement severally agrees to provide additional Revolving Commitments, if any, under the Credit Agreement as set forth on Schedule 1.1 attached hereto. After giving effect to such additional
Revolving Commitments, the Revolving Commitment Percentage of each Lender shall be revised as set forth on Schedule 1.1 attached hereto. Schedule 1.1 to the Credit Agreement is hereby replaced with Schedule 1.1 attached hereto.

 2. Increase in LOC Committed Amount. Concurrently with the increase in the Total Revolving Committed Amount pursuant to this
Modification Agreement, the LOC Committed Amount is hereby increased proportionately in accordance with Section 2.1(d)(ix) of the Credit Agreement such that the LOC Committed Amount equals $90 million. 
 3. Power and Authority. Each of the Revolving Lenders party to this Modification Agreement hereby represents and warrants that it has full power
and authority, and has taken all action necessary, to execute and deliver this Modification Agreement and to consummate the transactions contemplated hereby. 
 4. Conditions Precedent. This Modification Agreement shall be effective immediately upon the satisfaction in full or waiver by the Administrative Agent and the Revolving Lenders providing additional Revolving
Commitments hereunder of the following conditions precedent: 
 (a) Executed Modification Agreement. The Administrative
Agent shall have received executed counterparts of this Modification Agreement, which, when taken together, bear the signatures of the Administrative Agent, the Credit Parties and the Revolving Lenders providing additional Revolving Commitments
hereunder. 

 (b) Secretary’s Certificate. The Administrative Agent shall have received a
certificate of the Secretary or Authorized Officer of each Credit Party, dated as of the date hereof, and certifying, respectively, (i) that the Organizational Documents of such Credit Party previously delivered to the Administrative Agent have
not been amended, supplemented or otherwise modified and are currently in full force and effect, except as noted therein (in which case a complete copy of such Organizational Documents, including any amendments thereto shall be attached to such
certificate), (ii) (A) that attached thereto is a true and complete copy of resolutions adopted by Ventas’ Board of Directors authorizing the increase in the Total Revolving Committed Amount contemplated in this Modification
Agreement, the Guaranty of all borrowings under the Credit Agreement (after giving effect to the increase in the Total Revolving Committed Amount and the LOC Committed Amount as evidenced by this Modification Agreement) by Ventas and the other
Guarantors and the execution and delivery hereof, and further certifying that such resolutions have not been amended, rescinded or supplemented and are currently in effect and (B) that attached thereto is a true and complete copy of resolutions
adopted by the Board of Directors, Board of Managers or Board of Trustees, as applicable, of each Guarantor (other than those Guarantors whose resolutions are certified pursuant to clause (A) above), or each entity acting on behalf of
such Guarantors, as applicable, authorizing the Guaranty of all borrowings under the Credit Agreement (after giving effect to the increase in the Total Revolving Committed Amount and the LOC Committed Amount as evidenced by this Modification
Agreement) by each such Guarantor to which such resolutions respectively relate and the execution and delivery hereof, and further certifying that such resolutions have not been amended, rescinded or supplemented and are currently in effect and
(iii) as to the incumbency and specimen signature of each officer of Ventas and each other Credit Party, or each entity acting on behalf of such Credit Party, executing this Modification Agreement or any other document delivered in connection
herewith on behalf of Ventas or on behalf of Ventas, as the Borrower’s general partner, on behalf of the Borrower (such certificate to contain a certification by another officer of Ventas as to the incumbency and signature of the officer
signing the certificate referred to in this subsection (b)). 
 (c) Good Standing Certificates. The
Administrative Agent shall have received certificates of good standing or the equivalent for each of the Borrower and Ventas, Inc. from its respective jurisdiction of organization or formation certified as of a recent date by the appropriate
Governmental Authority. 
 (d) Legal Opinions. The Administrative Agent shall have received the written opinions of
(i) T. Richard Riney, internal general counsel to the Credit Parties, with respect to the authorization, execution and delivery of this Modification Agreement and (ii) Barack Ferrazzano Kirschbaum Perlman & Nagelberg LLP, counsel
to the Credit Parties, with respect to enforceability of this Modification Agreement, assuming that the substantive laws of the States of Illinois and New York are identical and certain other matters, each dated as of the date hereof and addressed
to the Administrative Agent, the Issuing Bank, the Swingline Lender and the Lenders, which opinions shall be in form and substance reasonably satisfactory to the Administrative Agent and to Moore & Van Allen PLLC, counsel to the
Administrative Agent. 
 (e) Fees and Expenses. The Borrower shall have paid all upfront and/or arrangement fees, if
any, in respect of the new Revolving Commitments so established. 
  

 2 

 For purposes of determining compliance with the conditions specified in this Section 4, each
of the Revolving Lenders that has signed this Modification Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required hereunder to be consented to or approved by or acceptable
or satisfactory to a Lender, unless the Administrative Agent shall have received written notice from such Lender prior to the effectiveness of this Modification Agreement specifying its objection thereto. 
 5. Effectiveness of Agreement. Upon effectiveness of this Modification Agreement, all references to the Credit Agreement in each of the
Fundamental Documents shall hereafter mean the Credit Agreement as modified by this Modification Agreement. Except as specifically modified or amended hereby or otherwise agreed in writing, the Credit Agreement and the other Fundamental Documents
(including, in each case, schedules and exhibits thereto) are hereby ratified and confirmed and shall remain in full force and effect according to its terms. 
 6. Representations and Warranties; Defaults. The Credit Parties, jointly and severally, affirm the following: 
 (a) the execution, delivery and performance of this Modification Agreement have been duly authorized by all necessary action on the part of each such Credit Party; 
 (b) the representations and warranties set forth in Article IV of the Credit Agreement and the other Fundamental Documents are true and
correct in all material respects on and as of the date hereof (except to the extent such representations and warranties expressly relate to an earlier date); and 
 (c) no Default or Event of Default has occurred and is continuing, nor shall any such event occur by reason of entering into this
Modification Agreement. 
 7. Guarantor Acknowledgment. Each Guarantor hereby (a) acknowledges and consents to all of the terms
and conditions of this Modification Agreement, (b) reaffirms that, jointly and severally together with the other Guarantors, it guarantees the prompt payment and performance of their obligations as provided in Article IX of the Credit Agreement
and (c) acknowledges and agrees that the such obligations will include any Obligations with respect to or resulting from the increase in the Total Revolving Committed Amount as provided hereunder. 
 8. Counterparts. This Modification Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. 
 9. Fees and Expenses. The Borrower shall pay all reasonable
out-of-pocket fees and expenses of the Administrative Agent (including reasonable attorneys’ fees and expenses of Moore & Van Allen, PLLC, arrangement and syndication expenses, but excluding fees for internal counsel) in connection
with the preparation, execution and delivery of this Modification Agreement. 
 10. Prepayment of Loans; Break-Funding Costs. The
Borrower shall make such prepayments and adjustments on the Revolving Loans outstanding on the date that the increase in the Revolving Commitments hereunder becomes effective (including payment of any amounts owing under Section 3.5 of the
Credit Agreement) as necessary to give effect to the revised Revolving Commitment Percentages and Revolving Commitments pursuant to this Modification Agreement. 
  

 3 

 11. Governing Law. This Modification Agreement shall be governed by, and construed in accordance
with, the law of the State of New York applicable to agreements made and to be performed entirely within such state; provided that the Administrative Agent and each Lender shall retain all rights arising under federal law. 
 [SIGNATURES ON FOLLOWING PAGES] 
  

 4 

 IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Modification Agreement to
be duly executed and delivered as of the date first above written. 
  

							
	BORROWER:	 		 	VENTAS REALTY, LIMITED PARTNERSHIP
				
		 		 	By:	 	Ventas, Inc., its General Partner
				
		 		 	By:	 	 /s/ T. Richard Riney

		 		 	Name:	 	T. Richard Riney
		 		 	Title:	 	Executive Vice President, Chief Administrative Officer, General Counsel and Corporate Secretary
			
	GUARANTORS:	 		 	VENTAS, INC.
				
		 		 	By:	 	 /s/ T. Richard Riney

		 		 	Name:	 	T. Richard Riney
		 		 	Title	 	Executive Vice President, Chief Administrative Officer, General Counsel and Corporate Secretary
			
		 		 	VENTAS CAPITAL CORPORATION
				
		 		 	By:	 	 /s/ T. Richard Riney

		 		 	Name:	 	T. Richard Riney
		 		 	Title:	 	Executive Vice President, Chief Administrative Officer, General Counsel and Corporate Secretary
			
		 		 	VENTAS LP REALTY, L.L.C.
				
		 		 	By:	 	Ventas, Inc., its Sole Member
				
		 		 	By:	 	 /s/ T. Richard Riney

		 		 	Name:	 	T. Richard Riney
		 		 	Title:	 	Executive Vice President, Chief Administrative Officer, General Counsel and Corporate Secretary

  

 MODIFICATION AGREEMENT 

			
	
	VENTAS TRS, LLC
		
	By:	 	Ventas Realty, Limited Partnership, its Sole Member
	By:	 	Ventas, Inc., its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, Chief Administrative Officer, General Counsel and Corporate Secretary
	
	VENTAS HEALTHCARE PROPERTIES, INC.
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	VENTAS MANAGEMENT, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	VENTAS FRAMINGHAM, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	VENTAS SUN LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary

  

 MODIFICATION AGREEMENT 

			
	
	VENTAS CAL SUN LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	VENTAS PROVIDENT, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	ELDERTRUST
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary
	
	ELDER TRUST OPERATING LIMITED PARTNERSHIP
		
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary
	
	ET CAPITAL CORP.
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Secretary
	
	ET SUB-BERKSHIRE LIMITED PARTNERSHIP
		
	By:	 	ET Berkshire, LLC, its General Partner
	By:	 	ElderTrust Operating Limited Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	ET BERKSHIRE, LLC
		
	By:	 	ElderTrust Operating Limited Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary
	
	CABOT ALF, L.L.C.
	By:	 	ElderTrust Operating Limited
		 	Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary
	
	CLEVELAND ALF, L.L.C.
		
	By:	 	ElderTrust Operating Limited
		 	Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary
	
	ET SUB-HERITAGE WOODS, L.L.C.
		
	By:	 	ElderTrust Operating Limited Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	ET SUB-HIGHGATE, L.P.
		
	By:	 	ET GENPAR, L.L.C., its General Partner
	By:	 	ElderTrust Operating Limited
		 	Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary
	
	ET GENPAR, L.L.C.
		
	By:	 	ElderTrust Operating Limited
		 	Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary
	
	ET SUB-LACEY I, L.L.C.
		
	By:	 	ElderTrust Operating Limited Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary
	
	ET SUB-LEHIGH LIMITED PARTNERSHIP
		
	By:	 	ET Lehigh, LLC, its General Partner
	By:	 	ElderTrust Operating Limited
		 	Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	ET LEHIGH, LLC
		
	By:	 	ElderTrust Operating Limited
		 	Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary
	
	ET SUB-LOPATCONG, L.L.C.
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Secretary
	
	ET SUB-PENNSBURG MANOR LIMITED PARTNERSHIP, L.L.P.
		
	By:	 	ET Pennsburg Finance, L.L.C., its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Secretary
	
	ET PENNSBURG FINANCE, L.L.C.
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Secretary
	
	ET SUB-PHILLIPSBURG I, L.L.C.
		
	By:	 	ElderTrust Operating Limited
		 	Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	ET SUB-PLEASANT VIEW, L.L.C.
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Secretary
	
	ET SUB-RITTENHOUSE LIMITED PARTNERSHIP, L.L.P.
		
	By:	 	ET GENPAR, L.L.C., its General Partner
	By:	 	ElderTrust Operating Limited
		 	Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary
	
	ET SUB-RIVERVIEW RIDGE LIMITED PARTNERSHIP, L.L.P.
		
	By:	 	ET GENPAR, L.L.C., its General Partner
	By:	 	ElderTrust Operating Limited
		 	Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary
	
	ET SUB-SANATOGA LIMITED PARTNERSHIP
		
	By:	 	ET Sanatoga, LLC, its General Partner
	By:	 	ElderTrust Operating Limited
		 	Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	ET SANATOGA, LLC
		
	By:	 	ElderTrust Operating Limited
		 	Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary
	
	ET SUB-SMOB, L.L.C.
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Secretary
	
	VERNON ALF, L.L.C.
		
	By:	 	ElderTrust Operating Limited
		 	Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary
	
	ET SUB-WILLOWBROOK LIMITED PARTNERSHIP, L.L.P.
		
	By:	 	ET GENPAR, L.L.C., its General Partner
	By:	 	ElderTrust Operating Limited
		 	Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary
	
	ET SUB-WAYNE I LIMITED PARTNERSHIP, L.L.P.
		
	By:	 	ET Wayne Finance, L.L.C., its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Secretary

  

 MODIFICATION AGREEMENT 

			
	
	ET WAYNE FINANCE, L.L.C.
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Secretary
	
	ET WAYNE FINANCE, INC.
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Chairman, Executive Vice President and Secretary
	
	ET SUB-WOODBRIDGE, L.P.
		
	By:	 	ET GENPAR, L.L.C., its General Partner
	By:	 	ElderTrust Operating Limited Partnership, its Sole Member
	By:	 	ElderTrust, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Trustee and Secretary
	
	PSLT GP, LLC
		
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	PSLT OP, L.P.
		
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary

  

 MODIFICATION AGREEMENT 

			
	
	PSLT-BLC PROPERTIES HOLDINGS, LLC
		
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	BROOKDALE LIVING COMMUNITIES OF ARIZONA-EM, LLC
		
	By:	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	BROOKDALE LIVING COMMUNITIES OF CALIFORNIA, LLC
		
	By:	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary

  

 MODIFICATION AGREEMENT 

			
	
	BROOKDALE LIVING COMMUNITIES OF CALIFORNIA-RC, LLC
		
	By:	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	BROOKDALE LIVING COMMUNITIES OF CALIFORNIA-SAN MARCOS, LLC
		
	By:	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	BROOKDALE LIVING COMMUNITIES OF ILLINOIS-2960, LLC
		
	By:	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary

  

 MODIFICATION AGREEMENT 

			
	
	BROOKDALE LIVING COMMUNITIES OF ILLINOIS-II, LLC
		
	By:	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	BLC OF CALIFORNIA-SAN MARCOS, L.P.
		
	By:	 	Brookdale Living Communities of California-San Marcos, LLC, its General Partner
	By:	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	BROOKDALE HOLDINGS, LLC
		
	By:	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary

  

 MODIFICATION AGREEMENT 

			
	
	BROOKDALE LIVING COMMUNITIES OF INDIANA-OL, LLC
		
	By:	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	BROOKDALE LIVING COMMUNITIES OF MASSACHUSETTS-RB, LLC
		
	By:	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	BROOKDALE LIVING COMMUNITIES OF MINNESOTA, LLC
		
	By:	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary

  

 MODIFICATION AGREEMENT 

			
	
	 BROOKDALE LIVING COMMUNITIES OF
 NEW YORK-GB,
LLC

		
	By:	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	BROOKDALE LIVING COMMUNITIES OF WASHINGTON-PP, LLC
		
	By:	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	THE PONDS OF PEMBROKE LIMITED PARTNERSHIP
		
	By:	 	Brookdale Holdings, LLC, its General
		 	Partner
	By:	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary

  

 MODIFICATION AGREEMENT 

			
	
	RIVER OAKS PARTNERS
		
	By:	 	Brookdale Holdings, LLC, its General Partner
	By:	 	PSLT-BLC Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	PSLT-ALS PROPERTIES HOLDINGS, LLC
		
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	PSLT-ALS PROPERTIES I, LLC
		
	By:	 	PSLT-ALS Properties Holdings, LLC, its Sole Member
	By:	 	PSLT OP, L.P., its Sole Member
	By:	 	PSLT GP, LLC, its General Partner
	By:	 	Ventas Provident, LLC, its Sole Member
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Corporate Secretary
	
	VSCRE HOLDINGS, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	UNITED REHAB REALTY HOLDING, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC MARTINSBURG REALTY, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC ONTARIO REALTY, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC MEDINA REALTY, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC WASHINGTON TOWNSHIP REALTY, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	EC LEBANON REALTY, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	EC HAMILTON PLACE REALTY, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	EC TIMBERLIN PARC REALTY, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	EC HALCYON REALTY, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC ALTOONA REALTY, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC ALTOONA REALTY GP, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC ALTOONA REALTY, LP
		
	By:	 	BCC Altoona Realty GP, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	BCC READING REALTY, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC READING REALTY GP, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC READING REALTY, LP
		
	By:	 	BCC Reading Realty GP, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC BERWICK REALTY, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC BERWICK REALTY GP, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	BCC BERWICK REALTY, LP
		
	By:	 	BCC Berwick Realty GP, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC LEWISTOWN REALTY, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC LEWISTOWN REALTY GP, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC LEWISTOWN REALTY, LP
		
	By:	 	BCC Lewistown Realty GP, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC STATE COLLEGE REALTY, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	BCC STATE COLLEGE REALTY GP, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC STATE COLLEGE REALTY, LP
		
	By:	 	BCC State College Realty GP, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	SOUTH BEAVER REALTY HOLDINGS, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC SOUTH BEAVER REALTY, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	SHIPPENSBURG REALTY HOLDINGS, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BCC SHIPPENSBURG REALTY, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	IPC (AP) HOLDING, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	AL (AP) HOLDING, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	ALLISON PARK NOMINEE, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	ALLISON PARK NOMINEE, LP
		
	By:	 	Allison Park Nominee, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	IPC (HCN) HOLDING, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	AL (HCN) HOLDING, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	BLOOMSBURG NOMINEE, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	BLOOMSBURG NOMINEE, LP
		
	By:	 	Bloomsburg Nominee, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	SAGAMORE HILLS NOMINEE, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	SAGAMORE HILLS NOMINEE, LP
		
	By:	 	Sagamore Hills Nominee, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	LEBANON NOMINEE, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	LEBANON NOMINEE, LP
		
	By:	 	Lebanon Nominee, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	SAXONBURG NOMINEE, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	SAXONBURG NOMINEE, LP
		
	By:	 	Saxonburg Nominee, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	LOYALSOCK NOMINEE, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	LOYALSOCK NOMINEE, LP
		
	By:	 	Loyalsock Nominee, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	IPC (MT) HOLDING, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	AL (MT) HOLDING, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	LEWISBURG NOMINEE, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	LEWISBURG NOMINEE, LP
		
	By:	 	Lewisburg Nominee, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	HENDERSONVILLE NOMINEE, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	HENDERSONVILLE NOMINEE, LP
		
	By:	 	Hendersonville Nominee, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	LIMA NOMINEE, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	LIMA NOMINEE, LP
		
	By:	 	Lima Nominee, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	KINGSPORT NOMINEE, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	KINGSPORT NOMINEE, LP
		
	By:	 	Kingsport Nominee, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	XENIA NOMINEE, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	XENIA NOMINEE, LP
		
	By:	 	Xenia Nominee, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	KNOXVILLE NOMINEE, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	KNOXVILLE NOMINEE, LP
		
	By:	 	Knoxville Nominee, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	CHIPPEWA NOMINEE, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary

  

 MODIFICATION AGREEMENT 

			
	
	CHIPPEWA NOMINEE, LP
		
	By:	 	Chippewa Nominee, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	DILLSBURG NOMINEE, LLC
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary
	
	DILLSBURG NOMINEE, LP
		
	By:	 	Dillsburg Nominee, LLC, its General Partner
		
	By:	 	 /s/ T. Richard Riney

	Name:	 	T. Richard Riney
	Title:	 	Executive Vice President, General Counsel and Secretary

  

 MODIFICATION AGREEMENT 

							
			
	 ADMINISTRATIVE AGENT:
	 		 	 BANK OF AMERICA, N.A.,
 as Administrative
Agent

				
		 		 	By:	 	 /s/ Charles Graber

		 		 	Name:	 	Charles Graber
		 		 	Title:	 	Vice President

  

 MODIFICATION AGREEMENT 

							
			
	LENDERS:	 		 	BANK OF AMERICA, N.A., individually as a Lender, the Swingline Lender and the Issuing Bank
				
		 		 	By:	 	 /s/ Amie L. Edwards

		 		 	Name:	 	Amie L. Edwards
		 		 	Title:	 	Vice President

  

 MODIFICATION AGREEMENT 

			
	
	CALYON NEW YORK BRANCH
		
	By:	 	 /s/ Thomas Randolph

	Name:	 	Thomas Randolph
	Title:	 	Managing Director
		
	By:	 	 /s/ Priya Vrat

	Name:	 	Priya Vrat
	Title:	 	Director

  

 MODIFICATION AGREEMENT 

			
	
	CITICORP NORTH AMERICA, INC.
		
	By:	 	 /s/ Malav Kakad

	Name:	 	Malav Kakad
	Title:	 	Vice President

  

 MODIFICATION AGREEMENT 

			
	
	 MERRILL LYNCH CAPITAL CORPORATION

		
	By:	 	 /s/ Michael E. O’Brien

	Name:	 	Michael E. O’Brien
	Title:	 	Vice President

  

 MODIFICATION AGREEMENT 

			
	
	UBS LOAN FINANCE LLC
		
	By:	 	 /s/ David B. Julie

	Name:	 	David B. Julie
	Title:	 	Associate Director
		 	Banking Products Services, US
		
	By:	 	 /s/ Mary E. Evans

	Name:	 	Mary E. Evans
	Title:	 	Associate Director
		 	Banking Products Services, US

  

 MODIFICATION AGREEMENT 

			
	
	DEUTSCHE BANK TRUST COMPANY AMERICAS
		
	By:	 	 /s/ Frederick W. Laird

	Name:	 	Frederick W. Laird
	Title:	 	Managing Director
		
	By:	 	 /s/ Ming K. Chu

	Name:	 	Ming K. Chu
	Title:	 	Vice President

  

 MODIFICATION AGREEMENT 

			
	
	BANK OF MONTREAL
		
	By:	 	 /s/ Aaron Lanski

	Name:	 	Aaron Lanski
	Title:	 	Vice President

  

 MODIFICATION AGREEMENT 

			
	
	KEYBANK NATIONAL ASSOCIATION
		
	By:	 	 /s/ Amy L. MacLearie

	Name:	 	Amy L. MacLearie
	Title:	 	Closing Officer

  

 MODIFICATION AGREEMENT 

			
	
	LASALLE BANK NATIONAL ASSOCIATION
		
	By:	 	 /s/ Brad Feine

	Name:	 	Brad Feine
	Title:	 	Vice President

  

 MODIFICATION AGREEMENT 

			
	
	MORGAN STANLEY BANK
		
	By:	 	 /s/ Daniel Twenge

	Name:	 	Daniel Twenge
	Title:	 	Authorized Signatory
		 	Morgan Stanley Bank

  

 MODIFICATION AGREEMENT 

			
	
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	 /s/ Marc E. Costantino

	Name:	 	Marc E. Costantino
	Title:	 	Executive Director

  

 MODIFICATION AGREEMENT 

 SCHEDULE 1.1 
 LENDERS AND COMMITMENTS 
  

																
	 Lender
	  	Revolving
Commitments before
giving effect to
Modification
Agreement	  	Revolving
Commitment
Percentage before
giving effect to
Modification
Agreement	 	 	Additional Revolving
Commitments added
pursuant Modification
Agreement	  	Revolving
Commitments after
giving effect to
Modification
Agreement	  	 Revolving
Commitment
Percentage
 after giving effect to
 Modification
Agreement
	 
	 Bank of America, N.A.
	  	$	47,000,000.00	  	9.400000000	%	 	$	8,000,000.00	  	$	55,000,000.00	  	9.166666667	%
	 Calyon New York Branch
	  	$	47,000,000.00	  	9.400000000	%	 	$	8,000,000.00	  	$	55,000,000.00	  	9.166666667	%
	 Citicorp North America, Inc.
	  	$	37,000,000.00	  	7.400000000	%	 	$	12,500,000.00	  	$	49,500,000.00	  	8.250000000	%
	 Merrill Lynch Capital Corporation
	  	$	37,000,000.00	  	7.400000000	%	 	$	12,500,000.00	  	$	49,500,000.00	  	8.250000000	%
	 UBS Loan Finance LLC
	  	$	35,000,000.00	  	7.000000000	%	 	$	9,000,000.00	  	$	44,000,000.00	  	7.333333333	%
	 Deutsche Bank Trust Company Americas
	  	$	35,000,000.00	  	7.000000000	%	 	$	9,000,000.00	  	$	44,000,000.00	  	7.333333333	%
	 Bank of Montreal
	  	$	35,000,000.00	  	7.000000000	%	 	$	9,000,000.00	  	$	44,000,000.00	  	7.333333333	%
	 KeyBank National Association
	  	$	35,000,000.00	  	7.000000000	%	 	$	9,000,000.00	  	$	44,000,000.00	  	7.333333333	%
	 LaSalle Bank National Association
	  	$	35,000,000.00	  	7.000000000	%	 	$	9,000,000.00	  	$	44,000,000.00	  	7.333333333	%
	 Morgan Stanley Bank
	  	$	35,000,000.00	  	7.000000000	%	 	$	9,000,000.00	  	$	44,000,000.00	  	7.333333333	%
	 JPMorgan Chase Bank, N.A.
	  	$	25,000,000.00	  	5.000000000	%	 	$	5,000,000.00	  	$	30,000,000.00	  	5.000000000	%
	 Wachovia Bank, National Association
	  	$	25,000,000.00	  	5.000000000	%	 	$	0	  	$	25,000,000.00	  	4.166666667	%
	 Emigrant Bank
	  	$	25,000,000.00	  	5.000000000	%	 	$	0	  	$	25,000,000.00	  	4.166666667	%
	 AIB Debt Management Limited
	  	$	15,000,000.00	  	3.000000000	%	 	$	0	  	$	15,000,000.00	  	2.500000000	%
	 Allied Irish Banks, plc
	  	$	7,000,000.00	  	1.4000000000	%	 	$	0	  	$	7,000,000.00	  	1.166666667	%
	 Bank of the West
	  	$	15,000,000.00	  	3.000000000	%	 	$	0	  	$	15,000,000.00	  	2.500000000	%
	 State Bank of India, New York Branch
	  	$	10,000,000.00	  	2.000000000	%	 	$	0	  	$	10,000,000.00	  	1.666666667	%
		  	 	 	  	 	 	 	 	 	  	 	 	  	 	 
	 Total:
	  	$	500,000,000.00	  	100.0000000000	%	 	$	100,000,000.00	  	$	600,000,000.00	  	100.000000000	%Form of Notice of Grant of Stock and Stock Option Agreement

 EXHIBIT 10.2 
 Grant No.                              
 Notice of Grant of Stock Option 
 (2002 Outside Directors Stock Option Plan) 
 PDL BioPharma, Inc., a Delaware corporation (the “Company”), has granted
                             (the “Optionee”) an option (the
“Option”) to purchase shares of Stock pursuant to the Company’s 2002 Outside Directors Stock Option Plan (the “Plan”), as follows: 
  

							
	Date of Option Grant:	  	  
	 		  	
				
	Number of Option Shares:	  	  
	 		  	
				
	Exercise Price:	  	  
	 	per share	  	
				
	Vesting Start Date:	  	  
	 		  	
		
	Option Expiration Date:	  	The date seven (7) years after the Date of Option Grant.
		
	Type of Option:	  	Nonstatutory Stock Option
		
	Vested Shares:	  	Except as otherwise provided by the Stock Option Agreement, One Thousand Two Hundred Fifty (1,250) shares shall become Vested Shares for each full month of the
Optionee’s continuous Service from the Vesting Start Date, provided that the number of Vested Shares shall not exceed the Number of Option Shares.

 By their signatures below, the parties hereto agree that the Option is governed by the terms and conditions of the
Stock Option Agreement attached to and made a part of this document. The Optionee acknowledges receipt of a copy of the Stock Option Agreement, represents that the Optionee is familiar with its provisions, and hereby accepts the Option subject to
all of its terms and conditions. Capitalized terms used without definition in this Notice have the meanings ascribed to them in the Plan. 
  

							
	PDL BioPharma, Inc.	 		 	Optionee
				
	By:	 	  
	 		 	  

		 		 		 	Signature
	Name:	 	  
	 		 	
		 		 		 	  

	Title:	 	  
	 		 	Print Name

											
						
	Address:	 	34801 Campus Drive	 		 		 	Address:	 	  

		 	Fremont, CA 94555	 		 		 		 	
		 		 		 		 		 	  

 ATTACHMENTS: 
 Stock Option Agreement (Outside Director) 
 Exercise Notice 

 Grant No.
                             
  

 Stock Option Agreement (Outside Director) 
 PDL BioPharma, Inc., a Delaware corporation (the “Company”), has granted to the individual (the “Optionee”) named in
the Notice of Grant of Stock Option (the “Notice”) to which this Stock Option Agreement (Outside Director) (this “Option Agreement”) is attached an option (the “Option”) to purchase certain
shares of Stock upon the terms and conditions set forth in this Option Agreement and the Notice. The Option has been granted pursuant to the Company’s 2002 Outside Directors Stock Option Plan (the “Plan”). By signing the
Notice, the Optionee represents that the Optionee is familiar with the terms and provisions of this Option Agreement and accepts the Option subject to all of the terms and provisions hereof. The Optionee agrees to accept as final and binding all
decisions or interpretations of the Board upon any questions arising under the Notice, this Option Agreement or the Plan. 
 1.
Definitions and Construction. 
 1.1 Definitions. Whenever used herein, capitalized terms shall have the meanings as 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) “Change in Control” means
the occurrence of any of the following: 
 (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act, other than a trustee or other fiduciary holding securities of the Company under an employee benefit plan of the Company, becomes the “beneficial owner” (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or
indirectly, of securities of the Company representing forty percent (40%) or more of (i) the outstanding shares of common stock of the Company or (ii) the total combined voting power of the Company’s then-outstanding securities
entitled to vote generally in the election of directors; 
 (ii) the Company is party to a merger or consolidation which results in the
holders of the voting securities of the Company outstanding immediately prior thereto failing to retain immediately after such merger or consolidation direct or indirect beneficial ownership of more than fifty percent (50%) of the total
combined voting power of the securities entitled to vote generally in the election of directors of the Company or the surviving entity outstanding immediately after such merger or consolidation; or 
 (iii) the sale or disposition of all or substantially all of the Company’s assets or consummation of any transaction having similar effect (other
than a sale or disposition to one or more subsidiaries of the Company). 
 (c) “Code” means the Internal Revenue Code of
1986, as amended, and any applicable regulations promulgated thereunder. 

 Grant No.
                             
  

 (d) “Committee” means the committee 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 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 amend or terminate the Plan at any time, subject to the terms of the Plan and any applicable limitations imposed by law. 
 (e)
“Company” means PDL BioPharma, Inc., a Delaware corporation, or any successor corporation thereto. 
 (f)
“Director” means a member of the Board. 
 (g) “Disability” means the permanent and total disability of
the Optionee within the meaning of Section 22(e)(3) of the Code. 
 (h) “Employee” means any person treated as an
employee in the records of the Company or any Parent Corporation or Subsidiary Corporation. 
 (i) “Exchange Act” means the
Securities Exchange Act of 1934, as amended. 
 (j) “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. 
 (k) “Parent Corporation” means any present
or future “parent corporation” of the Company, as defined in Section 424(e) of the Code. 
 (l) “Securities
Act” means the Securities Act of 1933, as amended. 

 Grant No.
                             
  

 (m) “Service” means the Optionee’s service with the Company as a Director. The
Optionee’s Service shall be deemed to have terminated if the Optionee ceases to be a Director, even if the Optionee continues or commences to render service to the Company or to a Parent Corporation or Subsidiary Corporation in a capacity other
than as a Director. The Optionee’s Service with the Company 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 Option Agreement. Subject to the foregoing, the Company, in its discretion, shall determine whether the
Optionee’s Service has terminated and the effective date of such termination. 
 (n) “Stock” means the common stock of
the Company, as adjusted from time to time in accordance with Section 9. 
 (o) “Subsidiary Corporation” means any
present or future “subsidiary corporation” of the Company, as defined in Section 424(f) of the Code. 
 1.2
Construction. Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of this Option Agreement. 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. 
 2. Tax Status of Option. This Option is intended to be a Nonstatutory Stock Option and shall not be treated as an “incentive stock
option” within the meaning of Section 422(b) of the Code. 
 3. Administration. All questions of interpretation
concerning this Option Agreement shall be determined by the Board. All determinations by the Board shall be final and binding upon all persons having an interest in the Option. The Chief Executive Officer 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. 
 4. Exercise of the Option. 
 4.1 Right to Exercise. Except as otherwise provided herein, the Option shall be
exercisable prior to the termination of the Option (as provided in Section 6) in an amount not to exceed that portion of the Number of Option Shares (as adjusted pursuant to Section 9) which have become Vested Shares less the number of
shares previously acquired upon exercise of the Option. 
 4.2 Method of Exercise. Exercise of the Option shall be by written notice
to the Company which must state the election to exercise the Option, the number of whole 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. The written notice must be signed by the Optionee and 

 Grant No.
                             
  

 
must be delivered to the Chief Financial Officer, Controller or Stock Administrator of the Company, or other authorized representative of the Company, prior
to the termination of the Option as set forth in Section 6, accompanied by full payment of the aggregate Exercise Price (as set forth in the Notice) for the number of shares of Stock being purchased and the tax withholding obligations, if any,
as provided in Section 4.4. The Option shall be deemed to be exercised upon receipt by the Company of such written notice, the aggregate Exercise Price, and tax withholding obligations, if any. 
 4.3 Payment of Exercise Price. 
 (a)
Forms of Consideration Authorized. Except as otherwise provided below, payment of the aggregate Exercise Price for the number of shares of Stock for which the Option is being exercised 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 means of a Cashless Exercise, as defined in
Section 4.3(b)(ii), or (iv) by any combination of the foregoing. 
 (b) Limitation on Forms of Consideration. 

(i) Tender of Stock. Notwithstanding the foregoing, the 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 shares of Stock. The 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 (and not used for another option exercise by attestation during such period) or were not acquired,
directly or indirectly, from the Company. 
 (ii) Cashless Exercise. A “Cashless Exercise” means the assignment in a
form acceptable to the Company of the proceeds of a sale or loan with respect to some or all of the shares of Stock acquired upon the exercise of the Option pursuant to a program or procedure approved by the Company (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). The Company reserves, at any and all times, the right, in the Company’s sole and
absolute discretion, to decline to approve or terminate any such program or procedure. 
 4.4 Tax 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 hereby authorizes withholding from any amounts payable to the Optionee, and otherwise agrees to make adequate provision for (including by means of
a Cashless Exercise to the extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company, if any, which arise in connection with the Option. 
 4.5 Certificate Registration. Except in the event the Exercise Price is paid by means of a Cashless Exercise, the certificate for the shares of
Stock as to which the Option is exercised shall be registered in the name of the Optionee, or, if applicable, in the names of the heirs of the Optionee. 

 Grant No.
                             
  

 4.6 Restrictions on Grant of the Option and Issuance of Shares. The grant of the Option and
the issuance of shares of Stock upon exercise of the Option shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such securities. The Option 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, the Option may not be exercised unless (i) a registration statement under the Securities Act shall at the time of exercise of the Option be in effect with respect to the shares issuable upon exercise of the Option or (ii) 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 OPTIONEE IS
CAUTIONED THAT THE OPTION MAY NOT BE EXERCISED UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY, THE OPTIONEE MAY NOT BE ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS VESTED. Questions concerning this restriction
should be directed to the Legal Department of the Company. 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 subject to the Option shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained. 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. 
 4.7 Fractional Shares. The Company shall not be required to issue fractional shares of Stock upon
the exercise of the Option. 
 5. Nontransferability of the Option. The Option may be exercised during the lifetime of the
Optionee only by the Optionee or the Optionee’s guardian or legal representative and may not be assigned or transferred in any manner except by will or by the laws of descent and distribution. Following the death of the Optionee, the Option, to
the extent provided in Section 7, may be exercised by the Optionee’s legal representative or by any person empowered to do so under the deceased Optionee’s will or under the then applicable laws of descent and distribution.

 6. Termination of the Option. The Option shall terminate and may no longer be exercised after the first to occur of
(a) the Option Expiration Date (as set forth in the Notice), (b) the last date for exercising the Option following termination of the Optionee’s Service as described in Section 7, or (c) a Change in Control to the extent
provided in Section 8. 

 Grant No.
                             
  

 7. Effect of Termination of Service. 
 7.1 Option Exercisability.  
 (a)
Disability. If the Optionee’s Service with the Company 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
Option Expiration Date. 
 (b) Death. If the Optionee’s Service with the Company 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, provided that such period shall be extended by the number of days between the date
on which the Optionee’s Service terminated and the date on which the executor, personal representative or administrator of the Optionee’s estate determines the person who acquired the right to exercise the Option by reason of the
Optionee’s death. Notwithstanding the foregoing, in no event shall the option be exercisable following 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. 
 (c) Other Termination of Service. If the Optionee’s
Service with the Company terminates for any reason, except Disability or death, 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 one (1) year (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. 
 7.2 Extension if Exercise Prevented by Law. Notwithstanding the foregoing, if the exercise of the Option within the applicable time periods set
forth in Section 7.1 is prevented by the provisions of Section 4.6, 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. 
 7.3 Extension if Optionee Subject to Section 16(b). Notwithstanding the foregoing, if a
sale within the applicable time periods set forth in Section 7.1 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. 

 Grant No.
                             
  

 8. Change in Control. In the event of a Change in Control, any unexercisable or
unvested portions of the Option and any shares acquired upon the exercise thereof shall be immediately exercisable and vested in full as of the date ten (10) days prior to the date of the Change in Control. The exercise or vesting of the Option
and any shares acquired upon the exercise thereof that was permissible solely by reason of this Section 8 shall be conditioned upon the consummation of the Change in Control. In addition, 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 the Option or substitute for the Option a substantially equivalent option
for the Acquiring Corporation’s stock. The Option shall terminate and cease to be outstanding effective as of the date of the Change in Control to the extent that the Option is 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. Notwithstanding the foregoing, if the corporation the stock of which is subject to the Option immediately prior to a Change in Control described in
Section 1.1(b)(i) is the surviving or continuing corporation and immediately after such Change in Control 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 Option shall not terminate unless the Board otherwise provides in
its sole discretion. 
 9. 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, Exercise Price and class of shares of stock subject to the Option.
If a majority of the shares which are of the same class as the shares that are subject to the Option are exchanged for, converted into, or otherwise become (whether or not pursuant to an Ownership Change Event) shares of another corporation (the
“New Shares”), the Board may unilaterally amend the Option to provide that the Option is exercisable for New Shares. In the event of any such amendment, the Number of Option Shares and the Exercise Price shall be adjusted in a fair
and equitable manner, as determined by the Board, in its sole discretion. Notwithstanding the foregoing, any fractional share resulting from an adjustment pursuant to this Section 9 shall be rounded down to the nearest whole number, as
determined by the Board, and in no event may the Exercise Price 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 9 shall be final and
binding. 
 10. 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 for the shares of Stock for which the Option has been exercised (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such certificate is issued, except as provided in Section 9. 
 11. Legends. The Company may at any time place legends referencing any applicable federal, state or foreign 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 carry out the provisions of this Section 11. 

 Grant No.
                             
  

 12. Arbitration. In the event any dispute between the parties to this Option Agreement
arises out of, or in connection with, this Option Agreement, the parties to this Option Agreement agree that all such disputes shall, upon the written request of one (1) party delivered to the other party, be submitted to the American
Arbitration Association in the county in which the Company’s principal offices are located, to be fully, finally and exclusively resolved by binding arbitration. The parties to this Option Agreement hereby waive their respective rights to have
any such disputes or claims tried to a judge or jury. This arbitration provision shall not apply to any claims for injunctive relief by the parties to this Option Agreement. 
 The arbitrator shall have the power to enter any award that could be entered by a judge of the Superior Court of the State of California or the United
States District Court, and only such power, and shall follow the law. The arbitrator shall issue the award in writing and state the essential findings and conclusions on which the award is based. The parties to this Option Agreement agree to abide
by and perform any valid award rendered by the arbitrator and judgment on the award may be entered in any court of competent jurisdiction. The arbitrator shall award to the prevailing party in any such arbitration reasonable expenses, including
attorneys’ fees and costs, incurred in connection with the dispute. 
 13. Miscellaneous Provisions. 
 13.1 Binding Effect. Subject to the restrictions on transfer set forth herein, this Option Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective heirs, executors, administrators, successors and assigns. 
 13.2 Termination or
Amendment. The Board may terminate or amend the Plan or the Option at any time; provided, however, that except as provided in Section 8 in connection with a Change in Control, no such termination or amendment may adversely affect the Option
or any unexercised portion hereof without the consent of the Optionee unless such termination or amendment is necessary to comply with any applicable law or government regulation. No amendment or addition to this Option Agreement shall be effective
unless in writing. 
 13.3 Notices. Any notice required or permitted hereunder shall be given in writing and shall be deemed
effectively given (except to the extent that this Option Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery or upon deposit in the United States Post Office, by registered or certified mail, with
postage and fees prepaid, addressed to the other party at the address of such party as set forth in the Notice or at such other address as such party may designate in writing from time to time to the other party. 
 13.4 Integrated Agreement. This Option Agreement and the Notice 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 with respect to such subject matter other than those as set
forth or provided for herein or therein. To the extent contemplated herein, the provisions of this Option Agreement shall survive any exercise of the Option and shall remain in full force and effect. 

 Grant No.
                             
  

 13.5 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. 
 [Remainder of page intentionally blank] 

 Grant No.
                             
  

 Optionee:
                             
 Date:                              
 PDL BioPharma, Inc. 
 Stock Option
(Outside Director) 
 Exercise Notice 
 PDL BioPharma, Inc. 
 Attention: Stock Administrator 
 34801 Campus Drive 
 Fremont, CA 94555 
 1. Option. I was granted a nonstatutory stock option (“Option”) to purchase shares of common stock (“Shares”) of PDL BioPharma, Inc. (“Company”) pursuant to the Company’s 2002
Outside Directors Stock Option Plan (the “Plan”) as follows: 
  

																	
	 Grant Number:
	  	________________________	  		  		  		  		  		  		  	
									
	 Date of Option Grant:
	  	________________________	  		  		  		  		  		  		  	
									
	 Number of Option Shares:
	  	________________________	  		  		  		  		  		  		  	
									
	 Exercise Price per Share:
	  	$_______________________	  		  		  		  		  		  		  	

 2. Exercise of Option. I hereby elect to exercise the Option to purchase the following
number of Shares, all of which have vested in accordance with my Stock Option Agreement: 
  

																	
	 No. of Shares Purchased:
	  	________________________	  		  		  		  		  		  		  	
									
	 Total Exercise Price:
	  	$_______________________	  		  		  		  		  		  		  	

 3. Payment. I enclose payment in full of the total exercise price for the Shares in the
following form(s), as authorized by my Option Agreement: 
  

																	
	          Cash:
	  	$_______________________	  		  		  		  		  		  		  	
									
	          Check:
	  	$_______________________	  		  		  		  		  		  		  	
									
	          Tender of Company Stock:
	  	Contact Stock Administrator for additional forms	  		  		  		  		  		  		  	
									
	          Cashless exercise (same-day sale):
	  	Contact Stock Administrator for additional forms	  		  		  		  		  		  		  	

 Grant No.
                             
  

 4. Tax Withholding. I will make adequate provision for federal, state, local and foreign tax
withholding obligations of the Company, if any, in connection with my exercise of the Option and my subsequent disposition of the Shares. 
 5. Optionee Information. 
 My address is: 
  

	
	 
	
	 

  

			
	 My Social Security Number is:
	 	 

 I understand that I am purchasing the Shares pursuant to the terms of the Plan and my Stock Option
Agreement, a copy of which I have received and have carefully read and understand. 
  

	
	 Very truly yours,

	
	  

	 (Signature)

	
	  

	 (Optionee’s Name Printed)

 Receipt of the above is hereby acknowledged: 
  

			
	PDL BioPharma, Inc.
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	 Dated:

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