Document:

Q2 2002 10-Q Exhibit 10.1

                                                Exhibit 10.1

PROTEIN DESIGN LABS, INC.

2002 OUTSIDE DIRECTORS Stock OPTION PLAN

 

	Establishment, Purpose and Term of Plan.

	Establishment. The Protein Design Labs, Inc. 2002 Outside Directors
Stock Option Plan (the "Plan") is hereby established effective as
of the date of its approval by the stockholders of the Company, which date is
____________, 2002 (the "Effective Date").
	Purpose. The purpose of the Plan is to advance the interests of the
Company and its stockholders by providing an incentive to attract, retain and
reward persons performing services as Outside Directors of the Company and by
motivating such persons to contribute to the goals of the Company.

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

	Definitions and Construction.

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

	"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).

	"Change in Control" means the occurrence of any of the
following:

	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;
	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
	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).

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

	"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.

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

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

	"Employee" means any person treated as an employee in the
records of the Company or any Parent Corporation or Subsidiary Corporation.

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

	"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:

	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.
	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.

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

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

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

	"Optionee" means a person who has been granted one or more
Options.

	"Outside Director" means a Director who is not an
Employee.

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

	"Predecessor Plan" means the Protein Design Labs, Inc. Outside
Directors Stock Option Plan approved by the stockholders of the Company on
October 20, 1992 and subsequently amended from time to time.

	"Predecessor Plan Option" means an option granted pursuant to
the Predecessor Plan.

	"Predecessor Plan Termination Date" means the earlier of
October 20, 2002 or the date on which the Predecessor Plan is terminated by the
Board.

	"Prior Employee Option" means an outstanding Option previously
granted by the Company to an individual who, at the time of such grant, was an
Employee and who, subsequent to such grant, becomes an Outside Director.

	"Prior Option" means an outstanding Option, but in all
cases excluding Prior Employee Options, previously granted by the Company to a
Director in his or her capacity as such pursuant to any of the Company's stock
option plans, other than the Predecessor Plan.

	"Securities Act" means the Securities Act of 1933, as
amended.

	"Service" means an Optionee's service with the Company as a
Director. An 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. An 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 Optionee's Option Agreement. Subject to the
foregoing, the Company, in its discretion, shall determine whether an Optionee's
Service has terminated and the effective date of such termination.

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

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

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

	Administration.

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

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

	Shares Subject to Plan.

	Maximum Number of Shares Issuable. Subject to adjustment as
provided in Section 4.2, the maximum aggregate number of shares of Stock
that may be issued under the Plan shall be the sum of (a) 240,000, (b) the
number of shares that remain available for grant pursuant to the Predecessor
Plan on the Predecessor Plan Termination Date and (c) the number of unissued
shares subject to each Predecessor Plan Option outstanding on the Predecessor
Plan Termination Date which for any reason expires or is terminated or canceled.
Such shares shall consist of authorized but unissued or reacquired shares of
Stock or any combination thereof. If an outstanding Option for any reason
expires or is terminated or canceled or if unvested shares of Stock are acquired
upon the exercise of an Option subject to a Company repurchase option and are
repurchased by the Company, the shares of Stock allocable to the unexercised
portion of such Option or such unvested repurchased shares of Stock shall again
be available for issuance under the Plan.

	Adjustments for Changes in Capital Structure. In the event of any
stock dividend, stock split, reverse stock split, recapitalization, combination,
reclassification or similar change in the capital structure of the Company,
appropriate adjustments shall be made in the number and class of shares subject
to the Plan, to the grant of Options pursuant to Section 6.1, to the rates of
vesting pursuant to Section 6.3 and to any outstanding Options, and in the
exercise price per share of any outstanding Options. If a majority of the shares
which are of the same class as the shares that are subject to outstanding
Options are exchanged for, converted into, or otherwise become shares of another
corporation (the "New Shares"), the Board may unilaterally amend
the outstanding Options to provide that such Options are exercisable for New
Shares. In the event of any such amendment, the number of shares subject to, and
the exercise price per share of, the outstanding Options shall be adjusted in a
fair and equitable manner as determined by the Board, in its discretion.
Notwithstanding the foregoing, any fractional share resulting from an adjustment
pursuant to this Section 4.2 shall be rounded down to the nearest whole
number, and in no event may the exercise price of any Option be decreased to an
amount less than the par value, if any, of the stock subject to the Option. The
adjustments determined by the Board pursuant to this Section 4.2 shall be
final and binding.

	Eligibility.

Options may be granted only to those persons who, at the time of
grant, are serving as Outside Directors.

	Terms and Conditions of Options.

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

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

	Initial Option. Each person who first becomes an Outside
Director on or after the Effective Date (whether upon initial election or
appointment to the Board (including following a break in service as a Director)
or upon ceasing to be an Employee while remaining or simultaneously becoming a
Director) shall be granted on the date such person first becomes an Outside
Director an Option to purchase twelve thousand (12,000) shares of Stock (an
"Initial Option"), except as follows:

	An Outside Director who holds Prior Employee Option(s) that will continue to
vest on the basis of such individual's Service as an Outside Director shall be
granted an Initial Option only upon the date that such Prior Employee Option(s)
cease to vest.
	Each person who was an Outside Director prior to the Effective Date, and who
does not have a break in Service as an Outside Director subsequent to the
Effective Date, shall not be granted an Initial Option.

	Annual Option. Each Outside Director shall be granted on the
date of each annual meeting of the stockholders of the Company which occurs on
or after the Effective Date (an "Annual Meeting") immediately
following which such person remains an Outside Director an Option to purchase
twelve thousand (12,000) shares of Stock (an "Annual Option");
provided, however, that no Annual Option shall be granted to an Outside Director
granted an Initial Option on the same Annual Meeting date, and subject to the
following:

	An Outside Director who holds Prior Employee Option(s) that continue to vest
on the basis of such individual's Service as an Outside Director shall be
granted his or her first Annual Option on the date of the Annual Meeting
immediately following the grant to such individual of an Initial Option, as
described in Section 6.1(a)(i). The number of shares subject to such Annual
Option shall be determined in accordance with Section 6.1(b)(ii).
	An Annual Option granted to an Outside Director who was granted an Initial
Option prior to the date of the current Annual Meeting and subsequent to the
date of the preceding Annual Meeting shall be reduced by a number of shares
equal to one thousand (1,000) multiplied by the number of months (rounded to the
nearest whole number) determined by dividing the number of days between the date
of the preceding Annual Meeting and the date of grant of an Initial Option to
such Outside Director by thirty (30).
	The first Annual Option granted to an Outside Director who holds Predecessor
Plan Option(s) or Prior Option(s) shall be granted on the date of the Annual
Meeting immediately preceding the date on which the Predecessor Plan Option(s)
or the Prior Option(s), as applicable, are scheduled to cease vesting. Such
Annual Option shall be reduced by a number of shares equal to one thousand
(1,000) multiplied by the number of months (rounded to the nearest whole number)
determined by dividing the number of days between the date of grant of such
Annual Option and the date on which the Predecessor Plan Option(s) or the Prior
Option(s), as applicable, are scheduled to cease vesting by thirty (30).
Notwithstanding anything herein to the contrary, if the number of shares subject
to such Annual Option would be reduced to zero (0) pursuant to the preceding
sentence, then the first Annual Option shall be granted to such Outside Director
at the Annual Meeting immediately following the date on which the Predecessor
Plan Option(s) or the Prior Option(s), as applicable, cease to vest, and the
number of shares of Stock subject to such Annual Option shall be twelve thousand
(12,000).

	Right to Decline Option. Notwithstanding the foregoing, any
person may elect not to receive an Option by delivering written notice of such
election to the Board no later than the day prior to the date such Option would
otherwise be granted. A person so declining an Option shall receive no payment
or other consideration in lieu of such declined Option. A person who has
declined an Option may revoke such election by delivering written notice of such
revocation to the Board no later than the day prior to the date such Option
would be granted pursuant to Section 6.1(a) or (b), as the case may
be.

	Exercise Price. The exercise price for each Option shall be
the Fair Market Value of a share of Stock on the date of grant of an
Option.

	Exercisability and Term of Options. Except as otherwise
provided in the Plan or in the Option Agreement evidencing an Option and
provided that the Optionee's Service has not terminated prior to the relevant
date, the Options shall vest and become exercisable as follows:

	Each Initial Option and each Annual Option (other than an Annual Option
described in Section 6.1(b)(i), (ii) or (iii)) shall vest and become exercisable
at the rate of one thousand (1,000) shares for each full month of the Optionee's
continuous Service from the date of grant until the Option is fully vested.
	Each Annual Option described in Section 6.1(b)(i) or (ii) shall vest and
become exercisable at the rate of one thousand (1,000) shares for each full
month of the Optionee's continuous Service from the date on which the Optionee's
Initial Option vests in full until such Annual Option is fully vested.
	Each Annual Option described in Section 6.1(b)(iii) shall vest and become
exercisable at the rate of one thousand (1,000) shares for each full month of
the Optionee's continuous Service from the date on which the Optionee's
Predecessor Plan Option(s) or Prior Option(s), as applicable, cease to vest
until such Annual Option is fully vested.

Unless earlier terminated in accordance with the terms of the Plan or the
Option Agreement evidencing an Option, each Option shall terminate and cease to
be exercisable ten (10) years after the date of grant of the Option.

	Payment of Exercise Price.

	Forms of Consideration Authorized. Except as otherwise provided
below, payment of the exercise price for the number of shares of Stock being
purchased pursuant to any Option shall be made (i) in cash, by check or
cash equivalent, (ii) by tender to the Company, or attestation to the
ownership, of shares of Stock owned by the Optionee having a Fair Market Value
not less than the exercise price, (iii) by the assignment of the proceeds
of a sale or loan with respect to some or all of the shares being acquired upon
the exercise of the Option (including, without limitation, through an exercise
complying with the provisions of Regulation T as promulgated from time to
time by the Board of Governors of the Federal Reserve System) (a "Cashless
Exercise"), or (iv) by any combination thereof.

	Limitations on Forms of Consideration.

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

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

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

	Effect of Termination of Service.

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

	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 date
of expiration of the Option's term as set forth in the Option Agreement
evidencing such Option (the "Option Expiration Date").

	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.

	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
six (6) months (or such longer period of time as determined by the Board,
in its discretion) after the date on which the Optionee's Service terminated,
but in any event no later than the Option Expiration Date.

	Extension if Exercise Prevented by Law. Notwithstanding the
foregoing, if the exercise of an Option within the applicable time periods set
forth in Section 6.6(a) is prevented by the provisions of Section 10
below, the Option shall remain exercisable until ninety (90) days after the date
the Optionee is notified by the Company that the Option is exercisable, but in
any event no later than the Option Expiration Date.

	Extension if Optionee Subject to Section 16(b).
Notwithstanding the foregoing, if a sale within the applicable time periods set
forth in Section 6.6(a) of shares acquired upon the exercise of the Option
could 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.

	Standard Forms of Option Agreement.

	Outside Director Stock Option Agreement. Each Option shall comply
with and be subject to the terms and conditions set forth in the appropriate
form of Option Agreement approved by the Board concurrently with its adoption of
the Plan and as amended from time to time.

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

	Change in Control.

In the event of a Change in Control, any unexercisable or
unvested portions of outstanding Options 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 any 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 outstanding Options or
substitute for outstanding Options substantially equivalent options for the
Acquiring Corporation's stock. Any Options which are neither assumed or
substituted for by the Acquiring Corporation in connection with the Change in
Control nor exercised as of the date of the Change in Control shall terminate
and cease to be outstanding effective as of the date of the Change in Control.
Notwithstanding the foregoing, if the corporation the stock of which is subject
to the outstanding Options immediately prior to a Change in Control described in
Section 2.1(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 outstanding Options shall not terminate
unless the Board otherwise provides in its discretion.

	Transferability of Options.

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

	Compliance with Securities Law.

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

	Termination or Amendment of Plan.

The Board may terminate or amend the Plan at any time. However,
without the approval of the Company's stockholders, there shall be (a) no
increase in the maximum aggregate number of shares of Stock that may be issued
under the Plan (except by operation of the provisions of Section 4.2), and
(b) no material change in the class of persons eligible to receive Options.
No termination or amendment of the Plan shall affect any then outstanding Option
unless expressly provided by the Board. In any event, no termination or
amendment of the Plan may adversely affect any then outstanding Option without
the consent of the Optionee, unless such termination or amendment is necessary
to comply with any applicable law, regulation or rule.

IN WITNESS WHEREOF, the undersigned Secretary of the Company certifies
that the foregoing sets forth the Protein Design Labs, Inc. 2002 Outside
Directors Stock Option Plan as adopted by the Board on ____________, 2002 and
approved by the stockholders on _____, 2002.

__________________________

Douglas O. Ebersole

   Secretary

legal/common/equity plans/DirPlans/2002 DirPlans/

Final 2002 Plan/Final Plan (04-17-02) clean
  

PLAN HISTORY
 

	
________, 2002
	
Board adopts Plan, with an initial share reserve equal to the sum of (a)
240,000 shares, (b) the number of shares remaining available for grant under the
Predecessor Plan upon its termination (_________ shares as of date of Plan
adoption), and (c) the number of unissued shares subject to options outstanding
under the Predecessor Plan upon its termination which expire or are terminated
or canceled (__________ shares are subject to Predecessor Plan options as of the
date of Plan adoption)..

	
________, 2002
	
Stockholders approve the Plan.

STANDARD FORM OF

PROTEIN DESIGN LABS, INC.

2002 OUTSIDE DIRECTORS STOCK OPTION PLAN

OUTSIDE DIRECTOR STOCK OPTION AGREEMENT

 

PROTEIN DESIGN LABS, INC.

STOCK OPTION AGREEMENT (OUTSIDE DIRECTOR)

Protein Design Labs, Inc. 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) (the "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 Protein Design Labs, Inc. 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.

	Definitions and Construction.

	Definitions. Whenever used herein, capitalized terms shall have
the meanings assigned in the Notice or as set forth below:

	"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).

	"Change in Control" means the occurrence of any of the
following:

	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;
	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
	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).

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

	"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.

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

	"Director" means a member of the Board.

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

	"Employee" means any person treated as an employee in the
records of the Company or any Parent Corporation or Subsidiary Corporation.

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

	"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:

	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.
	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.

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

	"Securities Act" means the Securities Act of 1933, as
amended.

	"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.

	"Stock" means the common stock of the Company, as adjusted
from time to time in accordance with Section 9.

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

	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.

	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.

	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.

	Exercise of the Option.

	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.

	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 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 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.

	Payment of Exercise Price.

	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.

	Limitation on Forms of Consideration.

	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.

	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.

	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.

	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.

	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.

	Fractional Shares. The Company shall not be required to issue
fractional shares of Stock upon the exercise of the Option.

	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.

	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, (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.

	Effect of Termination of Service.

	Option Exercisability. 

	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.

	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.

	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 six
(6) months (or such longer period of time as determined by the Board, in its
discretion) after the date on which the Optionee's Service terminated, but in
any event no later than the Option Expiration Date.

	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.

	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.

	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.

	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.

	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. 

	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.

	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.

	Miscellaneous Provisions.

	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.

	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.

	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.

	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.

	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.

Optionee: ___________________________

Date: ___________________________

PROTEIN DESIGN LABS, INC.

STOCK OPTION (OUTSIDE DIRECTOR)

EXERCISE NOTICE

Protein Design Labs, Inc.

   Attention: Stock Administrator

   34801 Campus Drive

   Fremont, CA 94555

Ladies and Gentlemen:

1.Option. I was granted a nonstatutory stock option
("Option") to purchase shares of the common stock
("Shares") of Protein Design Labs, 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 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

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 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:

   PROTEIN DESIGN LABS, INC.

By:__________________________

Title: _______________________

Dated: _________________________Q2 2002 10-Q Exhibit 10.2

                                                Exhibit 10.2

PROTEIN DESIGN LABS, INC.

NOTICE OF GRANT OF STOCK OPTION

(1999 Stock Option Plan)

________________________ (the "Optionee") has been
granted an option (the "Option") to purchase certain shares of
Stock of Protein Design Labs, Inc. pursuant to the Protein Design Labs, Inc.
1999 Stock Option Plan (the "Plan"), as follows:

	
Date of Option Grant:
	
_________________

	
Number of Option Shares:
	
_________________

	
Exercise Price:
	
The date one (1) year after _________________

	
Initial Vesting Date:
	
_________________

	
Option Expiration Date:
	
The date ten (10) years after the Date of Option
Grant.

	
Type of Option:
	
Nonstatutory Stock Option

	
Vested Shares:
	
Except as provided in the Stock Option Agreement, determined as
of any date by multiplying the Number of Option Shares by the "Vested
Ratio" as follows:

	
 
	
Vested Ratio

	
	

	
Prior to Initial Vesting Date
	
0

	
	

	
On Initial Vesting Date, provided the Optionee's Service as an
Employee has not terminated prior to such date
	
1/4

	
	

	
Plus:
	
 

	
	

	
For each full month of the Optionee's continuous Service as an
Employee from Initial Vesting Date until the Vested Ratio equals 1/1, an
additional
	
 

1/48

Adjustments to Vested Ratio: The
Company may adjust the Vested Ratio to account for any periods of part-time
Service as an Employee.

Termination of Unvested Option: Except as may otherwise be
provided by the Board, upon termination of the Optionee's Service as an
Employee, the Option shall terminate immediately with respect to shares that are
not Vested Shares. However, provided the Optionee's Service continues
uninterrupted in a capacity other than as an Employee, the Option shall continue
in accordance with the terms of the Stock Option Agreement with respect to any
Vested Shares. Upon termination of the Optionee's Service, the Option shall
terminate in accordance with the terms of the Stock Option Agreement.

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.

	
PROTEIN DESIGN LABS, INC.
	
OPTIONEE

	
By:_________________________
	
___________________________

	
 
	
Signature

	
Its: _______________________
	
____________________________

	
 
	
Date

	
34801 Campus Drive
	
____________________________

	
Fremont, California 94555
	
Address

	
 
	
____________________________

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