Document:

FY2001 10K Exhibit 10.29

                                                                         Exhibit 10.29

PROTEIN DESIGN LABS, INC.

1999 NONSTATUTORY STOCK OPTION PLAN

(As amended on April 25, 2001 and as adjusted for 2:1
stock splits effective in August 2000 and in October 2001)

	Establishment, Purpose and Term of Plan.

	Establishment.  The Protein Design Labs, Inc. 1999 Nonstatutory Stock
Option Plan (the "Plan") is hereby established effective
as of August 19, 1999 (the "Effective Date").
	Purpose.  The purpose of the Plan is to advance the interests of the
Participating Company Group and its stockholders by providing an incentive to
attract, retain and reward persons performing services for the Participating
Company Group and by motivating such persons to contribute to the growth and
profitability of the Participating Company Group.

	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).

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

	"Committee" means the Compensation Committee, Stock
Option Committee or other committee of the Board 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.

	"Consultant" means any person, including an advisor,
engaged by a Participating Company to render services other than as an Employee
or a Director.

	"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 a Participating Company.

	"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, or by the Company, in its discretion, if such determination is
expressly allocated to the Company herein, 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 Company 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, there is no public market for the Stock, 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 acquired upon the exercise
thereof.

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

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

	"Participating Company" means the Company or any
Parent Corporation or Subsidiary Corporation.

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

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

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

	"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 Officers.  The Chief Executive Officer, President,
Senior Vice President, Corporate Affairs or General Counsel of the Company 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, provided the officer has apparent
authority with respect to such matter, right, obligation, determination or
election.

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

	to determine the persons to whom, and the time or times at which, Options
shall be granted and the number of shares of Stock to be subject to each
Option;
	to determine the Fair Market Value of shares of Stock or other
property;
	to determine the terms, conditions and restrictions applicable to each
Option (which need not be identical) and any shares acquired upon the exercise
thereof, including, without limitation, (i) the exercise price of the
Option, (ii) the method of payment for shares purchased upon the exercise
of the Option, (iii) the method for satisfaction of any tax withholding
obligation arising in connection with the Option or such shares, including by
the withholding or delivery of shares of stock, (iv) the timing, terms and
conditions of the exercisability of the Option or the vesting of any shares
acquired upon the exercise thereof, (v) the time of the expiration of the
Option, (vi) the effect of the Optionee's termination of Service with the
Participating Company Group on any of the foregoing, and (vii) all other
terms, conditions and restrictions applicable to the Option or such shares not
inconsistent with the terms of the Plan;
	to approve one or more forms of Option Agreement;
	to amend, modify, extend, cancel, renew, or grant a new Option in
substitution for, any Option or to waive any restrictions or conditions
applicable to any Option or any shares acquired upon the exercise thereof;
	to accelerate, continue, extend or defer the exercisability of any Option or
the vesting of any shares acquired upon the exercise thereof, including with
respect to the period following an Optionee's termination of Service with the
Participating Company Group;
	to prescribe, amend or rescind rules, guidelines and policies relating to
the Plan, or to adopt supplements to, or alternative versions of, the Plan,
including, without limitation, as the Board deems necessary or desirable to
comply with the laws of, or to accommodate the tax policy or custom of, foreign
jurisdictions whose citizens may be granted Options; and
	to correct any defect, supply any omission or reconcile any inconsistency in
the Plan or any Option Agreement and to make all other determinations and take
such other actions with respect to the Plan or any Option as the Board may deem
advisable to the extent consistent with the Plan and applicable law.

	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 eight million (8,000,000) and shall consist of
authorized but unissued or reacquired shares of Stock or any combination
thereof.  If an outstanding Option for any reason expires or is terminated or
canceled or if shares of Stock are acquired upon the exercise of an Option
subject to a Company repurchase option and are repurchased by the Company at the
Optionee's exercise price, the shares of Stock allocable to the unexercised
portion of such Option or such 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 and to any outstanding Options and in the exercise price per share
of any outstanding Options.  If a majority of the shares which are of the same
class as the shares that are subject to outstanding Options are exchanged for,
converted into, or otherwise become (whether or not pursuant to an Ownership
Change Event, as defined in Section 8.1) shares of another corporation (the
"New Shares"), the Board may unilaterally amend the
outstanding Options to provide that such Options are exercisable for New Shares.
In the event of any such amendment, the number of shares subject to, and the
exercise price per share of, the outstanding Options shall be adjusted in a fair
and equitable manner as determined by the Board, in its discretion.
Notwithstanding the foregoing, any fractional share resulting from an adjustment
pursuant to this Section 4.2 shall be rounded down to the nearest whole
number, and in no event may the exercise price of any Option be decreased to an
amount less than the par value, if any, of the stock subject to the Option.  The
adjustments determined by the Board pursuant to this Section 4.2 shall be
final, binding and conclusive.

	Eligibility and Option Limitations.

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

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

	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:

	Exercise Price.  The exercise price for each Option shall be
established in the discretion of the Board; provided, however, that the exercise
price per share shall be not less than eighty-five percent (85%) of the Fair
Market Value of a share of Stock on the effective date of grant of the Option.
Notwithstanding the foregoing, an Option may be granted with an exercise price
lower than the minimum exercise price set forth above if such Option is granted
pursuant to an assumption or substitution for another option in the manner
described in Section 424(a) of the Code.

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

	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
(as determined by the Company without regard to any restrictions on
transferability applicable to such stock by reason of federal or state
securities laws or agreements with an underwriter for the Company) not less than
the exercise price, (iii) by the assignment of the proceeds of a sale or
loan with respect to some or all of the shares being acquired upon the exercise
of the Option (including, without limitation, through an exercise complying with
the provisions of Regulation T as promulgated from time to time by the
Board of Governors of the Federal Reserve System) (a "Cashless
Exercise"), (iv) provided that the Optionee is an Employee and in
the Company's sole discretion at the time the Option is exercised, by cash for a
portion of the aggregate exercise price not less than the par value of the
shares being acquired and the Optionee's promissory note in a form approved by
the Company for the balance of the aggregate exercise price, (v) by such
other consideration as may be approved by the Board from time to time to the
extent permitted by applicable law, or (vi) by any combination thereof.
The Board may at any time or from time to time, by adoption of or by amendment
to the standard forms of Option Agreement described in Section 7, or by
other means, grant Options which do not permit all of the foregoing forms of
consideration to be used in payment of the exercise price or which otherwise
restrict one or more forms of consideration.

	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 law, regulation or agreement restricting the redemption
of the Company's stock.  Unless otherwise provided by the Board, an Option may
not be exercised by tender to the Company, or attestation to the ownership, of
shares of Stock unless such shares either have been owned by the Optionee for
more than six (6) months or were not acquired, directly or indirectly, from the
Company.

	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.

	Payment by Promissory Note.  No promissory note shall be permitted if
the exercise of an Option using a promissory note would be a violation of any
law.  Any permitted promissory note shall be on such terms as the Board shall
determine at the time the Option is granted.  The Board shall have the authority
to permit or require the Optionee to secure any promissory note used to exercise
an Option with the shares of Stock acquired upon the exercise of the Option or
with other collateral acceptable to the Company.  Unless otherwise provided by
the Board, if the Company at any time is subject to the regulations promulgated
by the Board of Governors of the Federal Reserve System or any other
governmental entity affecting the extension of credit in connection with the
Company's securities, any promissory note shall comply with such applicable
regulations, and the Optionee shall pay the unpaid principal and accrued
interest, if any, to the extent necessary to comply with such applicable
regulations.

	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, as determined by the Company, equal to all
or any part of the federal, state, local and foreign taxes, if any, required by
law to be withheld by the Participating Company Group with respect to such
Option or the shares acquired upon the exercise thereof.  Alternatively or in
addition, in its discretion, the Company shall have the right to require the
Optionee, through payroll withholding, cash payment or otherwise, including by
means of a Cashless Exercise, to make adequate provision for any such tax
withholding obligations of the Participating Company Group arising in connection
with the Option or the shares acquired upon the exercise thereof.  The Company
shall have no obligation to deliver shares of Stock until the Participating
Company Group's tax withholding obligations have been satisfied by the
Optionee.

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

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

	Normal Retirement.  If the Optionee's Service with the Participating
Company Group terminates by reason of the normal retirement at or after the
normal retirement age of the Optionee within the meaning of the Protein Design
Labs, Inc. 401(k) Plan ("Normal Retirement"), the Option, to the
extent unexercised and exercisable on the date on which the Optionee's Service
terminated, may be exercised by the Optionee at any time prior to the Option
Expiration Date

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

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

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

	Extension if Optionee Subject to Section 16(b).
Notwithstanding the foregoing, if a sale within the applicable time periods set
forth in Section 6.5(a) of shares acquired upon the exercise of the Option
would subject the Optionee to suit under Section 16(b) of the Exchange Act,
the Option shall remain exercisable until the earliest to occur of (i) the
tenth (10th) day following the date on which a sale of such shares by the
Optionee would no longer be subject to such suit, (ii) the one hundred and
ninetieth (190th) day after the Optionee's termination of Service, or
(iii) the Option Expiration Date.

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

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

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

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

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

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

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

(1)without the Optionee's consent, any limitations of the Optionee's
responsibilities, substantially inconsistent with the Optionee's positions,
duties, responsibilities and status with the Participating Company Group
immediately prior to the date of the Change in Control;

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

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

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

	Standard Forms of Option Agreement.

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

	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.

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

	An "Ownership Change Event" shall be deemed to have
occurred if any of the following occurs with respect to the Company:
(i) the direct or indirect sale or exchange in a single or series of
related transactions by the stockholders of the Company of more than fifty
percent (50%) of the voting stock of the Company; (ii) a merger or
consolidation in which the Company is a party; (iii) the sale, exchange, or
transfer of all or substantially all of the assets of the Company; or
(iv) a liquidation or dissolution of the Company.
	A "Change in Control" shall mean an Ownership Change
Event or a series of related Ownership Change Events (collectively, the
"Transaction") wherein the stockholders of the Company
immediately before the Transaction do not retain immediately after the
Transaction, in substantially the same proportions as their ownership of shares
of the Company's voting stock immediately before the Transaction, direct or
indirect beneficial ownership of more than fifty percent (50%) of the total
combined voting power of the outstanding voting stock of the Company or the
corporation or corporations to which the assets of the Company were transferred
(the "Transferee Corporation(s)"), as the case
may be.  For purposes of the preceding sentence, indirect beneficial ownership
shall include, without limitation, an interest resulting from ownership of the
voting stock of one or more corporations which, as a result of the Transaction,
own the Company or the Transferee Corporation(s), as the case may be, either
directly or through one or more subsidiary corporations.  The Board shall have
the right to determine whether multiple sales or exchanges of the voting stock
of the Company or multiple Ownership Change Events are related, and its
determination shall be final, binding and conclusive.

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

	Provision of Information.

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

	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.  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 issuable upon exercise of the Option or (b) in the opinion of legal
counsel to the Company, the shares issuable upon exercise of the Option may be
issued in accordance with the terms of an applicable exemption from the
registration requirements of the Securities Act.  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 hereunder 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 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.

	Indemnification.

In addition to such other rights of indemnification as they may have as
members of the Board or officers or employees of the Participating Company
Group, members of the Board and any officers or employees of the Participating
Company Group to whom authority to act for the Board or the Company is delegated
shall be indemnified by the Company against all reasonable expenses, including
attorneys' fees, actually and necessarily incurred in connection with the
defense of any action, suit or proceeding, or in connection with any appeal
therein, to which they or any of them may be a party by reason of any action
taken or failure to act under or in connection with the Plan, or any right
granted hereunder, and against all amounts paid by them in settlement thereof
(provided such settlement is approved by independent legal counsel selected by
the Company) or paid by them in satisfaction of a judgment in any such action,
suit or proceeding, except in relation to matters as to which it shall be
adjudged in such action, suit or proceeding that such person is liable for gross
negligence, bad faith or intentional misconduct in duties; provided, however,
that within sixty (60) days after the institution of such action, suit or
proceeding, such person shall offer to the Company, in writing, the opportunity
at its own expense to handle and defend the same.

	Termination or Amendment of Plan.

The Board may terminate or amend the Plan at any time.  However, no
termination or amendment of the Plan shall affect any then outstanding Option
unless expressly provided by the Board.  In any event, no termination or
amendment of the Plan may adversely affect any then outstanding Option without
the consent of the Optionee, unless such termination or amendment is necessary
to comply with any applicable law, regulation or rule.FY2001 10K Exhibit 10.45

                                                                    Exhibit 10.40

Protein Design Labs, Inc.

Executive Retention and Severance Plan

Adopted October 10, 2001

 

	Establishment and Purpose

	Establishment. The Protein Design Labs, Inc. Executive Retention and
Severance Plan (the "Plan") is hereby established by the
Compensation Committee of the Board of Directors of Protein Design Labs, Inc.
effective October 10, 2001 (the "Effective Date").

	Purpose. The Company draws upon the knowledge, experience and advice
of its Officers and Key Employees in order to manage its business for the
benefit of the Company's stockholders. Due to the widespread awareness of the
possibility of mergers, acquisitions and other strategic alliances in the
Company's industry, the topic of compensation and other employee benefits in the
event of a Change in Control is an issue in competitive recruitment and
retention efforts. The Committee recognizes that the possibility or pending
occurrence of a Change in Control could lead to uncertainty regarding the
consequences of such an event and could adversely affect the Company's ability
to attract, retain and motivate its Officers and Key Employees. The Committee
has therefore determined that it is in the best interests of the Company and its
stockholders to provide for the continued dedication of its Officers and Key
Employees notwithstanding the possibility or occurrence of a Change in Control
by establishing this Plan to provide designated Officers and Key Employees with
enhanced financial security in the event of a Change in Control. The purpose of
this Plan is to provide its Participants with specified compensation and
benefits in the event of a Change in Control or termination of employment under
circumstances specified herein upon or following a Change in Control.

	Definitions and Construction

	Definitions. Whenever used in this Plan, the following terms shall
have the meanings set forth below:

	"Annual Base Salary" means an amount equal to a Participant's
aggregate base salary for a period of twelve (12) months determined at the
greater of (1) the Participant's base salary rate in effect immediately prior to
the Participant's Termination Upon a Change in Control or (2) the Participant's
base salary rate in effect immediately prior to the applicable Change in
Control. Annual Base Salary does not include any bonuses, commissions, fringe
benefits, car allowances, other irregular payments or any other compensation
except base salary.

	"Annual Bonus" means an amount equal to the greatest of
(1) the aggregate of all bonuses earned by the Participant (whether or not
actually paid) under the terms of the programs, plans or agreements providing
for such bonuses for the fiscal year of the Company immediately preceding the
fiscal year of the Change in Control, (2) the aggregate of all bonuses
earned by the Participant (whether or not actually paid) under the terms of the
programs, plans or agreements providing for such bonuses for the fiscal year of
the Company immediately preceding the fiscal year of the Participant's
Termination Upon a Change in Control, or (3) the aggregate of all annual
bonuses that would be earned by the Participant at the targeted annual rate
(assuming attainment of 100% of all applicable performance goals) under the
terms of the programs, plans or agreements providing for such bonuses in which
the Participant was participating for the fiscal year of the Participant's
Termination Upon a Change in Control.

	"Benefit Period" means (1) with respect to a Participant
who is the Chief Executive Officer, a period of three (3) years, (2) with
respect to a Participant who is an Executive Committee Member (other than the
Chief Executive Officer), a period of two (2) years, and (3) with respect
to a Participant who is a Key Employee or an Officer who is not an Executive
Committee Member, a period of one (1) year.

	"Board" means the Board of Directors of the Company.

	"Cause" means the occurrence of any of the following, as
determined in good faith by a vote of not less than two-thirds of the entire
membership of the Board at a meeting of the Board called and held for such
purpose (after reasonable notice to the Participant and an opportunity for the
Participant, together with the Participant's counsel, to be heard before the
Board):

	the Participant's theft of property of the Company Group, act of dishonesty
or fraud against the Company Group, or intentional falsification of any
employment or other record of the Company Group;
	the Participant's improper use or disclosure of confidential or proprietary
information of the Company Group;
	the Participant's gross negligence or willful misconduct in the performance
of the Participant's assigned duties (but not mere unsatisfactory performance);
provided, however, that (i) the conduct described in this subparagraph (3)
shall not constitute "Cause" unless such conduct has not been cured within ten
(10) days following the Participant's receipt of written notice from the Board
identifying the conduct which the Board believes in good faith will constitute
"Cause" if not cured and (ii) no act or failure to act on the part of the
Participant shall be deemed "willful" unless done, or omitted to be done, by the
Participant not in good faith and without reasonable belief that the
Participant's act, or failure to act, was in the best interests of the Company
Group; or
	the Participant's conviction (including any plea of guilty or nolo
contendere) of a felony which materially impairs the Participant's ability to
perform his or her duties with the Company Group.

	"Change in Control" means, except as otherwise provided in the
Participation Agreement applicable to a given Participant, the occurrence of any
of the following:

	any "person" (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (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;
	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); or
	a change in the composition of the Board within any consecutive two-year
period as a result of which fewer than a majority of the directors are Incumbent
Directors.

	"Change in Control Period" means a period commencing upon the
consummation of a Change in Control and ending on (1) the third anniversary
of the date of such consummation in the case of a Participant who is the Chief
Executive Officer, (2) the second anniversary of the date of such
consummation in the case of a Participant who is an Officer other than the Chief
Executive Officer or (3) the first anniversary of the date of such
consummation in the case of a Participant who is a Key Employee.

	"Chief Executive Officer" means the individual who,
immediately prior to the consummation of a Change in Control, serves as the
Company's Chief Executive Officer as appointed by the Board.

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

	"Committee" means the Compensation Committee of the
Board.

	"Company" means Protein Design Labs, Inc., a Delaware
corporation, and, following a Change in Control, a Successor that agrees to
assume all of the terms and provisions of this Plan or a Successor which
otherwise becomes bound by operation of law to this Plan.

	"Company Group" means the group consisting of the Company and
each present or future parent and subsidiary corporation or other business
entity thereof.

	"Disability" means a Participant's incapacity due to physical
or mental injury or illness as a result of which the Participant has been absent
from the full-time performance of the Participant's duties with the Company
Group for a period of six (6) consecutive months, or for shorter periods
aggregating to eight (8) months within any twelve-month period; provided that
the Company shall have given the Participant notice of a possible termination of
employment for Disability and the Participant shall not have returned to the
full-time performance of the Participant's duties within thirty (30) days after
such notice is given.

	"Executive Committee Member" means an Officer who, immediately
prior to the consummation of a Change in Control, serves as a member of the
Company's Executive Committee.

	"Good Reason" means the occurrence of any of the following
conditions upon or following a Change in Control, without the Participant's
informed written consent, which condition(s) remain(s) in effect ten
(10) days after written notice to the Company from the Participant of such
condition(s):

	assignment of the Participant to a position that is not a Substantive
Functional Equivalent of the position which the Participant occupied immediately
prior to the Change in Control;
	a decrease in the Participant's Annual Base Salary or target bonus amount
(subject to applicable performance requirements with respect to the actual
amount of bonus compensation earned by the Participant);
	any failure by the Company to pay to the Participant any material portion of
the Participant's compensation within seven (7) days of the date on which such
compensation is due to be paid;
	any failure by the Company to (i) continue to provide the Participant
with the opportunity to participate, on terms no less favorable than those in
effect for the benefit of any employee group which customarily includes a person
holding the employment position or a comparable position with the Company Group
then held by the Participant, in any benefit or compensation plans and programs,
including, but not limited to, the Company Group's life, disability, health,
dental, medical, savings, profit sharing, stock purchase and retirement plans,
if any, in which the Participant was participating immediately prior to the date
of the Change in Control, or their equivalent, or (ii) provide the
Participant with all other fringe benefits (or their equivalent) from time to
time in effect for the benefit of any employee group which customarily includes
a person holding the employment position or a comparable position with the
Company Group then held by the Participant;
	the relocation of the Participant's work place for the Company Group to a
location that increases the regular commute distance between the Participant's
residence and work place by more than fifteen (15) miles (one-way), or the
imposition of travel requirements substantially more demanding of the
Participant than such travel requirements existing immediately prior to the
Change in Control; or
	any material breach of this Plan by the Company with respect to the
Participant.

The existence of Good Reason shall not be affected by the Participant's
temporary incapacity due to physical or mental illness not constituting a
Disability. The Participant's continued employment shall not constitute consent
to, or a waiver of rights with respect to, any condition constituting Good
Reason hereunder. For the purposes of any determination regarding the existence
of Good Reason hereunder, any claim by the Participant that Good Reason exists
shall be presumed to be correct unless the Company establishes to the Board that
Good Reason does not exist, and the Board, acting in good faith, affirms such
determination by a vote of not less than two-thirds of its entire
membership.

	"Incumbent Director" means a director who either (1) is a
member of the Board as of the Effective Date, or (2) is elected, or
nominated for election, to the Board with the affirmative votes of at least a
majority of the Incumbent Directors at the time of such election or nomination,
but (3) was not elected or nominated in connection with an actual or
threatened proxy contest relating to the election of directors of the
Company.

	"Key Employee" means an individual, other than an Officer,
who, immediately prior to the consummation of a Change in Control, is employed
by the Company Group and has been designated by the Board or the Committee as
eligible to participate in the Plan.

	"Officer" means an individual who, immediately prior to the
consummation of a Change in Control, serves as an officer of the Company as
appointed by the Board.

	"Option" means any option to purchase shares of the capital
stock of the Company or of any other member of the Company Group granted to a
Participant by the Company or any other Company Group member, whether granted
before or after a Change in Control.

	"Participant" means each Officer and each Key Employee
designated by the Committee to participate in the Plan, provided such individual
has executed a Participation Agreement.

	"Participation Agreement" means an Agreement to Participate in
the Protein Design Labs, Inc. Executive Retention and Severance Plan in the form
attached hereto as Exhibit A or in such other form as the Committee
may approve from time to time; provided, however, that, after a Participation
Agreement has been entered into between a Participant and the Company, it may be
modified only by a supplemental written agreement executed by both the
Participant and the Company. The terms of such forms of Participation Agreement
need not be identical with respect to each Participant. For example, a
Participation Agreement may limit the duration of a Participant's participation
in the Plan or may modify the definition of "Change in Control" with respect to
a Participant.

	"Release" means a general release of all known and unknown
claims against the Company and its affiliates and their stockholders, directors,
officers, employees, agents, successors and assigns in substantially the form
attached hereto as Exhibit B, with any modifications thereto
determined by legal counsel to the Company to be necessary or advisable to
comply with applicable law or to accomplish the intent of Section 8 hereof.

	"Restricted Stock" means any shares of the capital stock of
the Company or of any other member of the Company Group granted to a Participant
by the Company or any other Company Group member or acquired upon the exercise
of an Option, whether such shares are granted or acquired before or after a
Change in Control, including any shares issued in exchange for any such shares
by a Successor or any other member of the Company Group.

	"Retiree Medical Plan" means any medical and/or dental
insurance benefit plan established by the Company for the benefit of any group
of employees (including covered dependents) who retire from employment with the
Company under the terms and conditions specified by such plan.

	"Substantive Functional Equivalent" means an employment
position occupied by a Participant after a Change in Control that:

	is in a substantive area of competence (such as, accounting, executive
management, finance, human resources, marketing, sales and service, or
operations, etc.) that is consistent with the Participant's experience and not
materially different from the position occupied by the Participant immediately
prior to the Change in Control;
	allows the Participant to serve in a role and perform duties that are
functionally equivalent to those performed immediately prior to the Change in
Control (such as, business unit executive with profit and loss responsibility,
product line manager, marketing strategist, geographic sales manager, executive
officer, etc.);
	with respect to a Participant who is an Executive Committee Member, carries
a title in the Company or an equivalent business unit of its parent that does
not connote a lesser rank or corporate role than the title held by such
Participant immediately prior to the Change in Control;
	with respect to a Participant who is an Executive Committee Member, reports
directly to an executive officer or the board of directors of the Company, its
parent or an equivalent business unit of its parent that is no less senior than
the executive officer or board of directors, as the case may be, to whom the
Participant reported at the Company immediately prior to the Change in Control;
and
	does not otherwise constitute a material, adverse change in the
Participant's responsibilities or duties, as measured against the Participant's
responsibilities or duties prior to the Change in Control, causing it to be of
materially lesser rank or responsibility within the Company or an equivalent
business unit of its parent.

	"Successor" means any successor in interest to substantially
all of the business and/or assets of the Company.

	"Termination Upon a Change in Control" means the occurrence of
any of the following events:

	termination by the Company Group of the Participant's employment for any
reason other than Cause during the applicable Change in Control Period; or
	the Participant's resignation for Good Reason during the applicable Change
in Control Period from all capacities in which the Participant is then rendering
service to the Company Group; or
	in the case of a Participant who is the Chief Executive Officer, the
Participant's resignation for any reason or no reason during the applicable
Change in Control Period from all capacities in which the Participant is then
rendering service to the Company Group;

provided, however, that Termination Upon a Change in Control shall not
include any termination of the Participant's employment which is (i) for
Cause, (ii) a result of the Participant's death or Disability, or
(iii) a result of the Participant's voluntary termination of employment
other than for Good Reason (except with respect to a Participant who is the
Chief Executive Officer as provided in subsection (3) above).

	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.

	Eligibility

The Board or Committee shall designate those Officers and Key
Employees who shall be eligible to become Participants in the Plan.

	Treatment of Options and Restricted Stock Upon a Change in
Control

	In General. Notwithstanding any provision to the contrary contained
in any agreement evidencing an Option or shares of Restricted Stock granted to a
Participant, in the event of a Change in Control, the vesting and exercisability
of each outstanding Option and the vesting of shares of Restricted Stock held,
in either case, by those Participants designated below shall be accelerated to
the extent set forth below, effective immediately prior to but conditioned upon
the consummation of the Change in Control.

	Chief Executive Officer. If the Participant is the Chief Executive
Officer, such vesting and exercisability shall be accelerated in full so that
each Option and share of Restricted Stock held by such Participant shall be
immediately exercisable and fully vested.

	Executive Committee Member. If the Participant is an Executive
Committee Member (other than the Chief Executive Officer), such vesting and
exercisability shall be accelerated to the extent of fifty percent (50%) of the
number of shares subject to each future vesting installment called for under the
agreement(s) evidencing Options and/or shares of Restricted Stock held by such
Participant, and the balance of the shares subject to each such future vesting
installment shall remain subject to vesting at the same time or times called for
under such agreement(s). For example, assuming an Option under which 100 shares
would otherwise vest and become exercisable on the first day of each of the 24
calendar months following the consummation of a Change in Control, the
application of this Section 4.1(b) would result in the acceleration of
vesting of 1,200 shares effective immediately prior to the consummation of such
Change in Control. The remaining 50 shares subject to each future vesting
installment would vest on the first day of each of the subsequent 24 calendar
months in accordance with the terms of the agreement evidencing such
Option.

	Acceleration of Vesting Upon Non-Assumption of Options.
Notwithstanding any provision to the contrary contained in any agreement
evidencing an Option granted to a Participant, in the event of a Change in
Control in which the surviving, continuing, successor, or purchasing corporation
or other business entity or parent thereof, as the case may be (the
"Acquiring Corporation"), fails either to assume the Company's
rights and obligations under any then-outstanding Options held by the
Participant or to substitute for such Options substantially equivalent options
for the Acquiring Corporation's stock, the vesting and exercisability of each
such Option shall be accelerated to the extent set forth below, effective
immediately prior to but conditioned upon the consummation of the Change in
Control. Notwithstanding the foregoing, the provisions of Section 4.1 and
not this Section 4.2 shall apply to Options held by any Participant
designated in Section 4.1 if that Section's provisions would confer a
greater benefit with respect to such Options than this Section 4.2. In no
event shall the vesting or exercisability of any Option exceed one hundred
percent (100%) of the number of shares initially subject to the Option (as the
same may be adjusted from time to time in connection with changes in the capital
structure of the issuer pursuant to the provisions of such agreement).

	If Employed Less Than Two Years. If, on the date of the consummation
of a Change in Control, a Participant has been employed by the Company Group for
a period of less than two (2) years, then, to the extent that this
Section 4.2 is applicable to any Options held by the Participant, the
vesting and exercisability of such Options shall be determined by crediting the
Participant with two (2) years of employment in addition to the Participant's
actual term of employment with the Company Group.

	If Employed Two or More Years. If, on the date of the consummation of
a Change in Control, a Participant has been employed by the Company Group for a
period of two (2) or more years, then, to the extent that this Section 4.2
is applicable to any Options held by the Participant, the vesting and
exercisability of such Options shall be accelerated in full so that each such
Option shall be immediately exercisable and fully vested.

	Severance Benefits

In the event of a Participant's Termination Upon a Change in Control
and provided that the Participant has executed and not revoked a Release at the
time of such Termination Upon a Change in Control, the Participant shall be
entitled to receive, in addition to all compensation and benefits earned by the
Participant through the date of the Participant's termination of employment, the
following severance payments and benefits:

	Salary and Bonus. Within thirty (30) days following the later of the
Participant's termination of employment or the last day following the
Participant's execution of the Release that the Participant may, by its terms,
revoke such Release, the Company shall pay to the Participant in a lump sum cash
payment an amount equal to (a) the sum of the Participant's Annual Base Salary
and Annual Bonus multiplied by (b) the number of years in the Benefit Period
applicable to the Participant.

	Health and Life Insurance Benefits. For the period commencing
immediately following the Participant's termination of employment and continuing
for the duration of the Benefit Period applicable to the Participant, the
Company shall arrange to provide the Participant and his or her dependents with
health (including medical and dental) and life insurance benefits substantially
similar to those provided to the Participant and his or her dependents
immediately prior to the date of such termination of employment (without giving
effect to any reduction in such benefits constituting Good Reason). Such
benefits shall be provided to the Participant at the same premium cost to the
Participant and at the same coverage level as in effect as of the Participant's
termination of employment (without giving effect to any reduction in such
benefits constituting Good Reason); provided, however, that the Participant
shall be subject to any change in the premium cost and/or level of coverage
applicable generally to all employees holding the position or comparable
position with the Company which the Participant held immediately prior to the
Change in Control. The Company may satisfy its obligation to provide a
continuation of health insurance benefits by paying that portion of the
Participant's premiums required under the Consolidated Omnibus Budget
Reconciliation Act ("COBRA") that exceed the amount of premiums
that the Participant would have been required to pay for continuing coverage had
he or she continued in employment. If the Company is not reasonably able to
continue such coverage under the Company's benefit plans, the Company shall
provide substantially equivalent coverage under other sources or will reimburse
the Participant for premiums (in excess of the Participant's premium cost
described above) incurred by the Participant to obtain his or her own such
coverage. If the Participant becomes eligible to receive such coverage under
another employer's benefit plans during the applicable Benefit Period, the
Participant shall report such eligibility to the Company, and the Company's
obligations under this Section 5.2 shall be secondary to the coverage
provided by such other employer's plans. For the balance of any period in excess
of the applicable Benefit Period during which the Participant is entitled to
continuation coverage under COBRA, the Participant shall be entitled to maintain
coverage for himself or herself and the Participant's eligible dependents at the
Participant's own expense. Notwithstanding the foregoing, a Participant may
elect to receive benefits under any Retiree Medical Plan for which he or she is
qualified as of the time of such Participant's termination of employment in lieu
of receiving the corresponding health benefits (i.e., medical and/or dental) to
which such Participant would be entitled pursuant to this Section 5.2, provided
that such election shall not terminate the Participant's right to receive
benefits pursuant to this Section 5.2 which are of a different class (i.e.,
medical, dental or life insurance) than those provided under the Retiree Medical
Plan.

	Acceleration of Vesting of Options and Restricted Stock; Extension of
Option Exercise Period. Notwithstanding any provision to the contrary
contained in any agreement evidencing an Option or shares of Restricted Stock
granted to a Participant, the vesting and exercisability of each of the
Participant's outstanding Options and the vesting of the Participant's shares of
Restricted Stock shall be accelerated in full effective as of the date of the
Participant's termination of employment so that each Option and share of
Restricted Stock held by the Participant shall be immediately exercisable and
fully vested. Furthermore, notwithstanding any provision to the contrary
contained in the agreement evidencing any such Option, the Option, to the extent
unexercised on the date on which the Participant's employment terminated, may be
exercised by the Participant (or the Participant's guardian or legal
representative) at any time prior to the expiration of six (6) months (subject
to extension to the extent provided by Section 13.3) after the date on which the
Participant's employment terminated, but in any event no later than the date of
expiration of the Option's term as set forth in the agreement evidencing such
Option.

	Indemnification; Insurance.

	In addition to any rights a Participant may have under any
indemnification agreement previously entered into between the Company and such
Participant (a "Prior Indemnity Agreement"), from and after the
date of the Participant's termination of employment, the Company shall indemnify
and hold harmless the Participant against any costs or expenses (including
attorneys' fees), judgments, fines, losses, claims, damages or liabilities
incurred in connection with any claim, action, suit, proceeding or
investigation, whether civil, criminal, administrative or investigative, by
reason of the fact that the Participant is or was a director, officer, employee
or agent of the Company Group, or is or was serving at the request of the
Company Group as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, whether asserted or
claimed prior to, at or after the date of the Participant's termination of
employment, to the fullest extent permitted under applicable law, and the
Company shall also advance fees and expenses (including attorneys' fees) as
incurred by the Participant to the fullest extent permitted under applicable
law. In the event of a conflict between the provisions of a Prior Indemnity
Agreement and the provisions of this Plan, the Participant may elect which
provisions shall govern.
	For a period of six (6) years from and after the date of termination of
employment of a Participant who was an officer and/or director of the Company at
any time prior to such termination of employment, the Company shall maintain a
policy of directors' and officers' liability insurance for the benefit of such
Participant which provides him or her with coverage no less favorable than that
provided for the Company's continuing officers and directors but in any event no
less favorable than that in effect immediately prior to the Change in
Control.

	Federal Excise Tax Under Section 4999 of the Code

	Additional Payment. In the event that any payment or benefit
received or to be received by the Participant pursuant to this Plan or otherwise
payable to the Participant (collectively, the "Payments") would be
subject to the excise tax imposed by Section 4999 of the Code, or any
similar or successor provision (the "Excise Tax"), the Company
shall pay to the Participant within ninety (90) days of the date the Participant
becomes subject to the Excise Tax (i.e., at the time such Payment is made), an
additional amount (the "Gross-
Up Payment") such that the
net amount retained by the Participant from the Payments and the Gross-Up
Payment, after deduction of (a) any Excise Tax on the Payments, (b) any federal,
state and local income or employment tax and Excise Tax on the Gross-Up Payment
and (c) any interest, penalties or additions to tax payable by the Participant
with respect thereto, shall be equal to the Payments. Notwithstanding the
foregoing, if the Payments would otherwise be subject to the Excise Tax but do
not exceed the greatest amount of Payments that could be paid to the Participant
without giving rise to the Excise Tax (the "Reduced Amount") by
more than an amount equal to the lesser of $100,000 or five percent of the
Payments, then no Gross-Up Payment shall be paid to the Participant and the
Payments, in the aggregate, shall be reduced to the Reduced Amount.

	Determination of Amounts.

	Determination by Accountants. All computations and determinations called
for by this Section 6 shall be promptly determined and reported in writing to
the Company and the Participant by independent public accountants selected by
the Company and reasonably acceptable to the Participant (the
"Accountants"). For the purposes of such determinations, the
Accountants may rely on reasonable, good faith interpretations concerning the
application of Sections 280G and 4999 of the Code. The Company and the
Participant shall furnish to the Accountants such information and documents as
the Accountants may reasonably request in order to make their required
determinations. The Company shall bear all fees and expenses charged by the
Accountants in connection with such services.

	Determination of Excise Tax. For purposes of determining whether any
of the Payments will be subject to the Excise Tax and the amount of such Excise
Tax:

	Any payments or benefits received or to be received by the Participant in
connection with transactions contemplated by a Change in Control event or the
Participant's termination of employment (whether pursuant to the terms of this
Plan or any other plan, arrangement or agreement with the Company), shall be
treated as "parachute payments" within the meaning of Section 280G
of the Code or any similar or successor provision ("Section
280G"), and all "excess
parachute payments" within the
meaning of Section 280G shall be treated as subject to the Excise Tax,
unless in the opinion of the Accountants such payments or benefits (in whole or
in part) do not constitute parachute payments, or such excess parachute payments
(in whole or in part) represent reasonable compensation for services actually
rendered within the meaning of Section 280G in excess of the base amount
within the meaning of Section 280G, or are otherwise not subject to the
Excise Tax.
	The amount of the Payments which shall be treated as subject to the Excise
Tax shall be equal to the lesser of (i) the total amount of the Payments or
(ii) the amount of the excess parachute payments within the meaning of
Section 280G (after applying Section 6.2(b)(1) above).
	The value of any non-cash benefits or any deferred payment or benefit shall
be determined by the Accountants in accordance with the principles of
Section 280G.

	Determination of Gross-Up Payment. For purposes of determining the
amount of the Gross-Up Payment, the Participant shall be deemed to pay federal
income taxes at the highest marginal rate of federal income taxation in the
calendar year in which the Gross-Up Payment is to be made and state and local
income taxes at the highest marginal rate of taxation in the state and locality
of the Participant's residence on the date the Gross-Up Payment is to be made,
net of the maximum reduction in federal income taxes which could be obtained
from deduction of such state and local taxes.

	Notice and Contest of Claim.

	The Participant shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the
Company of a Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than sixty (60) calendar days after the Participant is
informed in writing of such claim and shall apprise the Company of the nature of
such claim and the date on which such claim is requested to be paid. The
Participant shall not pay such claim prior to the expiration of the thirty
(30) day period following the date on which the Participant gives such
notice to the Company (or such shorter period ending on the date that any
payment of taxes with respect to such claim is due). If the Company notifies the
Participant in writing prior to the expiration of such period that it desires to
contest such claim, the Participant shall:

	give the Company any information reasonably requested by the Company
relating to such claim;
	take such action in connection with contesting such claim as the Company
shall reasonably request in writing from time to time, including, without
limitation, accepting legal representation with respect to such claim by an
attorney reasonably selected by the Company and reasonably satisfactory to the
Participant;
	cooperate with the Company in good faith in order to effectively contest
such claim; and
	permit the Company to participate in any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including, but not limited to, additional interest and penalties and
related legal, consulting or other similar fees) incurred in connection with
such contest and shall indemnify and hold the Participant harmless, on an after-
tax basis, for any Excise Tax or other tax (including interest and penalties
with respect thereto) imposed as a result of such representation and payment of
costs and expenses.

	The Company shall control all proceedings taken in connection with such
contest and, at its sole option, may pursue or forego any and all administrative
appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim and may, at its sole option, either direct the Participant
to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and the Participant agrees to prosecute such contest to a
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Participant to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Participant on an interest-free basis, and shall indemnify and
hold the Participant harmless, on an after-tax basis, from any Excise Tax or
other tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and provided, further, that if the Participant is required to
extend the statute of limitations to enable the Company to contest such claim,
the Participant may limit this extension solely to such contested amount. The
Company's control of the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and the Participant shall be
entitled to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority. In addition, no position
may be taken nor any final resolution be agreed to by the Company without the
Participant's consent if such position or resolution could reasonably be
expected to adversely affect the Participant (including any other tax position
of the Participant unrelated to the matters covered hereby).

	Adjustments.

	In the event that the Excise Tax is subsequently determined to be less
than the amount taken into account hereunder, the Participant shall repay to the
Company, at the time that the amount of such reduction in Excise Tax is finally
determined, the portion of the Gross-Up Payment attributable to such reduction
(plus the portion of the Gross-Up Payment attributable to the Excise Tax and
federal, state and local income and employment taxes imposed on the Gross-Up
Payment being repaid by the Participant to the extent that such repayment
results in a reduction in Excise Tax and/or a federal, state or local income or
employment tax deduction) plus interest on the amount of such repayment at the
rate provided in Section 1274(b)(2)(B) of the Code.
	In the event that the Excise Tax is subsequently determined to exceed the
amount taken into account hereunder (including by reason of any payment the
existence or amount of which cannot be determined at the time of the Gross-Up
Payment), the Company shall make an additional Gross-Up Payment in respect of
such excess (plus any interest, penalties or additions to tax payable by the
Participant with respect to such excess) at the time that the amount of such
excess is finally determined.
	In the event that it is subsequently determined that, notwithstanding the
Accountants' good faith determination of the Reduced Amount pursuant to Section
6.1, if applicable, the aggregate "parachute payments" within the meaning of
Section 280G paid to the Participant are in an amount that would result in any
portion of such parachute payments not being deductible by reason of Section
280G, then the Participant shall pay to the Company an amount equal to the sum
of (1) the excess of the aggregate parachute payments paid to the Participant
over the aggregate parachute payments that could have been paid to the
Participant without any portion of such parachute payments not being deductible
by reason of Section 280G; and (2) interest on the amount determined pursuant to
clause (1) of this sentence at the rate provided in Section 1274(b)(2)(B)
of the Code from the date of the Participant's receipt of such excess until the
date of such payment. Notwithstanding the foregoing, if the aggregate reduction
in Payments resulting from the initial application of Section 6.1 and the
subsequent application of this Section 6.4(c) would exceed the lesser of
$100,000 or five percent of the Payments, then this Section 6.4(c) shall not
apply, and the Company shall direct the Accountants to compute and shall pay the
Gross-Up Payment in accordance with the provisions of Section 6.1.

	Conflict in Benefits; Noncumulation of Benefits

	Effect of Plan. The terms of this Plan, when accepted by a
Participant pursuant to an executed Participation Agreement, shall supersede all
prior arrangements, whether written or oral, and understandings regarding the
subject matter of this Plan and shall be the exclusive agreement for the
determination of any payments and benefits due to the Participant upon the
events described in Sections 4, 5 and 6.

	Noncumulation of Benefits. Except as expressly provided in a written
agreement between a Participant and the Company entered into after the date of
such Participant's Participation Agreement and which expressly disclaims this
Section 7.2 and is approved by the Board or the Committee, the total amount of
payments and benefits that may be received by the Participant as a result of the
events described in Sections 4, 5 and 6 pursuant to (a) the Plan, (b) any
agreement between the Participant and the Company or (c) any other plan,
practice or statutory obligation of the Company, shall not exceed the amount of
payments and benefits provided by this Plan upon such events (plus any payments
and benefits provided pursuant to a Retiree Medical Plan or a Prior Indemnity
Agreement), and the aggregate amounts payable under this Plan shall be reduced
to the extent of any excess (but not below zero).

	Exclusive Remedy

The payments and benefits provided by Section 5 and Section 6
(plus any payments and benefits provided pursuant to a Retiree Medical Plan or a
Prior Indemnity Agreement), if applicable, shall constitute the Participant's
sole and exclusive remedy for any alleged injury or other damages arising out of
the cessation of the employment relationship between the Participant and the
Company in the event of the Participant's Termination Upon a Change in Control.
The Participant shall be entitled to no other compensation, benefits, or other
payments from the Company as a result of any Termination Upon a Change in
Control with respect to which the payments and benefits described in
Section 5 and Section 6, if applicable, have been provided to the
Participant, except as expressly set forth in this Plan or, subject to the
provisions of Sections 7.2, in a duly executed employment agreement between
Company and the Participant.

	Proprietary and Confidential Information

The Participant agrees to continue to abide by the terms and
conditions of the confidentiality and/or proprietary rights agreement between
the Participant and the Company.

	Nonsolicitation

If the Company performs its obligations to deliver the payments and
benefits set forth in Section 5 and Section 6, then for a period equal to
the Benefit Period applicable to a Participant following the Participant's
Termination Upon a Change in Control, the Participant shall not, directly or
indirectly, recruit, solicit or invite the solicitation of any employees of the
Company to terminate their employment relationship with the Company.

	No Contract of Employment

Neither the establishment of the Plan, nor any amendment thereto, nor
the payment of any benefits shall be construed as giving any person the right to
be retained by the Company, a Successor or any other member of the Company
Group. Except as otherwise established in an employment agreement between the
Company and a Participant, the employment relationship between the Participant
and the Company is an "at-will" relationship. Accordingly, either the
Participant or the Company may terminate the relationship at any time, with or
without cause, and with or without notice except as otherwise provided by
Section 14. In addition, nothing in this Plan shall in any manner obligate any
Successor or other member of the Company Group to offer employment to any
Participant or to continue the employment of any Participant which it does hire
for any specific duration of time.

	Arbitration

	Disputes Subject to Arbitration. Any claim, dispute or controversy
arising out of this Plan, the interpretation, validity or enforceability of this
Plan or the alleged breach thereof shall be submitted by the parties to binding
arbitration by the American Arbitration Association; provided, however, that (a)
the arbitrator shall have no authority to make any ruling or judgment that would
confer any rights with respect to trade secrets, confidential and proprietary
information or other intellectual property; and (b) this arbitration provision
shall not preclude the parties from seeking legal and equitable relief from any
court having jurisdiction with respect to any disputes or claims relating to or
arising out of the misuse or misappropriation of intellectual property. Judgment
may be entered on the award of the arbitrator in any court having
jurisdiction.

	Site of Arbitration. The site of the arbitration proceeding shall be
in Palo Alto, California or any other site mutually agreed to by the Company and
the Participant.

	Costs and Expenses Borne by Company. All costs and expenses of
arbitration, including but not limited to reasonable attorneys' fees and other
costs reasonably incurred by the Participant in connection with an arbitration
in accordance with this Section 12, shall be paid by the Company.
Notwithstanding the foregoing, if the Participant initiates the arbitration, and
the arbitrator finds that the Participant's claims were totally without merit or
frivolous, then the Participant shall be responsible for the Participant's own
attorneys' fees and costs.

	Successors and Assigns

	Successors of the Company. The Company shall require any successor
or assign (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company, expressly, absolutely and unconditionally to assume and agree to
perform this Plan in the same manner and to the same extent that the Company
would be required to perform it if no such succession or assignment had taken
place. Failure of the Company to obtain such agreement shall be a material
breach of this Plan and shall entitle the Participant to resign for Good Reason
and to receive the benefits provided under this Plan in the event of Termination
Upon a Change in Control.

	Acknowledgment by Company. If, after a Change in Control, the Company
fails to reasonably confirm that it has performed the obligation described in
Section 13.1 within thirty (30) days after written notice from the
Participant, such failure shall be a material breach of this Plan and shall
entitle the Participant to resign for Good Reason and to receive the benefits
provided under this Plan in the event of Termination Upon a Change in
Control.

	Heirs and Representatives of Participant. This Plan shall inure to
the benefit of and be enforceable by the Participant's personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devises, legatees or other beneficiaries. If the Participant should die while
any amount would still be payable to the Participant hereunder (other than
amounts which, by their terms, terminate upon the death of the Participant) if
the Participant had continued to live, then (a) all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Plan to the executors, personal representatives or administrators of the
Participant's estate and (b) notwithstanding any provision to the contrary
contained in any agreement evidencing an Option granted to the Participant, the
period of time during which such Option may be exercised in accordance with such
agreement or this Plan following the Participant's termination of employment
shall be extended by the number of days between the date of the Participant's
death and the date on which the executors, personal representatives or
administrators of the Participant's estate determine the person who acquired the
right to exercise such Option by reason of the Participant's death, but in any
event the Option shall cease to be exercisable no later than the date of
expiration of the Option's term as set forth in the agreement evidencing such
Option.

	Notices

	General. For purposes of this Plan, notices and all other
communications provided for herein shall be in writing and shall be deemed to
have been duly given when personally delivered or when mailed by United States
certified mail, return receipt requested, or by overnight courier, postage
prepaid, as follows:

	if to the Company:

Protein Design Labs, Inc.

34801 Campus Drive

Fremont, California 94555

Attention: General Counsel

	if to the Participant, at the home address which the Participant most
recently communicated to the Company in writing.

Either party may provide the other with notices of change of address, which
shall be effective upon receipt.

	Notice of Termination. Any termination by the Company of the
Participant's employment during the Change in Control Period or any resignation
by the Participant during the Change in Control Period shall be communicated by
a notice of termination or resignation to the other party hereto given in
accordance with Section 14.1. Such notice shall indicate the specific
termination provision in this Plan relied upon, shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination
under the provision so indicated, and shall specify the termination
date.

	Termination and Amendment of Plan

This Plan and/or any Participation Agreement executed by a
Participant may not be terminated with respect to such Participant without the
written consent of the Participant. This Plan and/or any Participation Agreement
executed by a Participant may be modified, amended or superseded with respect to
such Participant only by a supplemental written agreement between the
Participant and the Company.

	Miscellaneous Provisions

	Unfunded Obligation. Any amounts payable to Participants pursuant to
the Plan are unfunded obligations. The Company shall not be required to
segregate any monies from its general funds, or to create any trusts, or
establish any special accounts with respect to such obligations. The Company
shall retain at all times beneficial ownership of any investments, including
trust investments, which the Company may make to fulfill its payment obligations
hereunder. Any investments or the creation or maintenance of any trust or any
Participant account shall not create or constitute a trust or fiduciary
relationship between the Board or the Company and a Participant, or otherwise
create any vested or beneficial interest in any Participant or the Participant's
creditors in any assets of the Company.

	No Duty to Mitigate; Obligations of Company. A Participant shall not
be required to mitigate the amount of any payment or benefit contemplated by
this Plan by seeking employment with a new employer or otherwise, nor shall any
such payment or benefit (except for benefits to the extent described in Section
5.2) be reduced by any compensation or benefits that the Participant may receive
from employment by another employer. Except as otherwise provided by this Plan,
the obligations of the Company to make payments to the Participant and to make
the arrangements provided for herein are absolute and unconditional and may not
be reduced by any circumstances, including without limitation any set-off,
counterclaim, recoupment, defense or other right which the Company may have
against the Participant or any third party at any time.

	No Representations. By executing a Participation Agreement, the
Participant acknowledges that in becoming a Participant in the Plan, the
Participant is not relying and has not relied on any promise, representation or
statement made by or on behalf of the Company which is not set forth in this
Plan.

	Waiver. No waiver by the Participant or the Company of any breach of,
or of any lack of compliance with, any condition or provision of this Plan by
the other party shall be considered a waiver of any other condition or provision
or of the same condition or provision at another time.

	Choice of Law. The validity, interpretation, construction and
performance of this Plan shall be governed by the substantive laws of the State
of California, without regard to its conflict of law provisions.

	Validity. The invalidity or unenforceability of any provision of this
Plan shall not affect the validity or enforceability of any other provision of
this Plan, which shall remain in full force and effect.

	Benefits Not Assignable. Except as otherwise provided herein or by
law, no right or interest of any Participant under the Plan shall be assignable
or transferable, in whole or in part, either directly or by operation of law or
otherwise, including, without limitation, by execution, levy, garnishment,
attachment, pledge or in any other manner, and no attempted transfer or
assignment thereof shall be effective. No right or interest of any Participant
under the Plan shall be liable for, or subject to, any obligation or liability
of such Participant.

	Tax Withholding. All payments made pursuant to this Plan will be
subject to withholding of applicable income and employment taxes.

	Consultation with Legal and Financial Advisors. By executing a
Participation Agreement, the Participant acknowledges that this Plan confers
significant legal rights, and may also involve the waiver of rights under other
agreements; that the Company has encouraged the Participant to consult with the
Participant's personal legal and financial advisers; and that the Participant
has had adequate time to consult with the Participant's advisers before
executing the Participation Agreement.

	Agreement

By executing a Participation Agreement, the Participant acknowledges
that the Participant has received a copy of this Plan and has read, understands
and is familiar with the terms and provisions of this Plan. This Plan shall
constitute an agreement between the Company and the Participant executing a
Participation Agreement.

IN WITNESS WHEREOF, the undersigned Secretary of the Company certifies that
the foregoing Plan was duly adopted by the Committee on October 10, 2001.

		
	 	
      

    
	 	
                                   Douglas O. Ebersole, Secretary

legal/common/generalcorp/execsevplan/ExecRetSevPlan011010final

EXHIBIT A

 

FORM OF

AGREEMENT TO PARTICIPATE IN THE

PROTEIN DESIGN LABS, INC.

EXECUTIVE RETENTION AND SEVERANCE PLAN

 

Agreement to Participate in the

Protein Design Labs, Inc.

Executive Retention and Severance Plan

Adopted October 10, 2001

In consideration of the benefits provided by the Protein Design Labs,
Inc. Executive Retention and Severance Plan (the "Plan"), the
undersigned employee of Protein Design Labs, Inc. (the "Company")
and the Company agree that, as of the date written below, the undersigned shall
become a Participant in the Plan and shall be fully bound by and subject to all
of its provisions. All references to a "Participant" in the Plan shall be deemed
to refer to the undersigned.

The undersigned employee acknowledges that the Plan confers significant
legal rights and may also constitute a waiver of rights under other agreements
with the Company; that Company has encouraged the undersigned to consult with
the undersigned's personal legal and financial advisers; and that the
undersigned has had adequate time to consult with the undersigned's advisers
before executing this agreement.

The undersigned employee acknowledges that he or she has received a copy
of the Plan and has read, understands and is familiar with the terms and
provisions of the Plan. The undersigned employee further acknowledges that (1)
by accepting the arbitration provision set forth in Section 12 of the Plan, the
undersigned is waiving any right to a jury trial in the event of any dispute
covered by such provision and (2) except as otherwise established in an
employment agreement between the Company and the undersigned, the employment
relationship between the undersigned and the Company is an "at-will"
relationship.

Executed on _________________________.

		
	 	
                                                           PARTICIPANT

                                                       

                            Signature

                                                       

                            Name Printed

                                                       

                             Address

                                                       

 

 

                            PROTEIN DESIGN LABS, INC.

                            By:_____________________________

                            Title: ________________________

EXHIBIT B

 

  

 

FORM OF

GENERAL RELEASE OF CLAIMS

 

 

RELEASE OF CLAIMS

This Agreement is by and between [name of employee]
("Employee") and [Protein Design Labs, Inc. or successor that agrees
to assume all of the terms and provisions of the Executive Retention and
Severance Plan following a Change in Control] (the "Company").  This
Agreement is effective on the day it is signed by Employee (the "Effective
Date").  

RECITALS

	Employee was employed by the Company as of ____________.  
	Employee and the Company entered into an Agreement to Participate in the
Protein Design Labs, Inc. Executive Retention and Severance Plan (such agreement
and plan being referred to herein as the "ERS Plan") effective as of
___________ wherein Employee is entitled to receive certain benefits upon a
termination due to a change in control, provided Employee signs a Release.
	[briefly describe change in control]
	Employee's employment is being terminated upon a change in control, as
defined in the ERS Plan.  Employee's last day of work and termination is
effective as of _____________________ (the "Termination Date").
Employee desires to receive the benefits provided in the ERS Plan by executing
this Release.

NOW, THEREFORE, the parties agree as follows:

	Commencing on the Effective Date, the Company shall provide Employee with
the applicable payments and benefits set forth in the ERS Plan in accordance
with the terms of the ERS Plan.

Employee acknowledges that the payments and benefits made pursuant to this
paragraph are made in full satisfaction of the Company's obligations under the
ERS Plan.  Employee further acknowledges that s/he has been paid all wages and
accrued, unused vacation that Employee earned during his/her employment with the
Company.

	Employee and his/her successors release the Company, its respective
subsidiaries, stockholders, investors, directors, officers, employees, agents,
attorneys, insurers, legal successors and assigns of and from any and all
claims, actions and causes of action, whether now known or unknown, which
Employee now has, or at any other time had, or shall or may have against those
released parties based upon or arising out of any matter, cause, fact, thing,
act or omission whatsoever directly related to Employee's employment by the
Company or the termination of such employment and occurring or existing at any
time up to and including the Termination Date, including, but not limited to,
any claims of breach of written contract, wrongful termination, retaliation,
fraud, defamation, infliction of emotional distress, or national origin, race,
age, sex, sexual orientation, disability or other discrimination or harassment
under the Civil Rights Act of 1964, the Age Discrimination In Employment Act of
1967, the Americans with Disabilities Act, the Fair Employment and Housing Act
or any other applicable law.  Notwithstanding the foregoing, this release shall
not apply to any right of the Employee pursuant to Sections 5.4 or 6.4(b)
of the ERS Plan or pursuant to a Retiree Medical Plan or Prior Indemnity
Agreement (as such terms are defined by the ERS Plan).
	Employee acknowledges that s/he has read Section 1542 of the Civil Code of
the State of California, which states in full:

A general release does not extend to claims which the creditor does not know
or suspect to exist in his favor at the time of executing the release, which if
known by him must have materially affected his settlement with the debtor.

Employee waives any rights that s/he has or may have under Section 1542 and
comparable or similar provisions of the laws of other states in the United
States to the full extent that s/he may lawfully waive such rights pertaining to
this general release of claims, and affirms that s/he is releasing all known and
unknown claims that s/he has or may have against the parties listed above.

	Employee and the Company acknowledge and agree that they shall continue to
be bound by and comply with the terms and his obligations under the following
agreements: (i) any proprietary rights or confidentiality agreements between the
Company and Employee, (ii) the ERS Plan, (iii) any Retiree Medical Plan or Prior
Indemnity Agreement (as such terms are defined by the ERS Plan) under which
Employee is a beneficiary or to which Employee is a Party, and (iv) any stock
option or stock purchase agreements between the Company and Employee.
	This Agreement shall be binding upon, and shall inure to the benefit of, the
parties and their respective successors, assigns, heirs and personal
representatives. 
	The parties agree that any and all disputes that both 1) arise out of the
ERS Plan, the interpretation, validity or enforceability of the ERS Plan or the
alleged breach thereof and 2) relate to the enforceability of this Agreement or
the interpretation of the terms of this Agreement shall be subject to binding
arbitration pursuant to Section 12 of the ERS Plan.  
	The parties agree that any and all disputes that 1) do not arise out of the
ERS Plan, the interpretation, validity or enforceability of the ERS Plan or the
alleged breach thereof and 2) relate to the enforceability of this Agreement,
the interpretation of the terms of this Agreement or any of the matters herein
released or herein described shall be subject to binding arbitration, to the
extent permitted by law, in Palo Alto, California or any other cite mutually
agreed to by the Company and Employee, before the American Arbitration
Association, as provided in this paragraph.  The parties agree to and hereby
waive their rights to jury trial as to such matters to the extent permitted by
law; provided however, that (a) the arbitrator shall have no authority to make
any ruling or judgment that would confer any rights with respect to trade
secrets, confidential and proprietary information or other intellectual
property; and (b) this arbitration provision shall not preclude the parties from
seeking legal and equitable relief from any court having jurisdiction with
respect to any disputes or claims relating to or arising out of the misuse or
misappropriation of intellectual property.  The Company shall bear the costs of
the arbitrator, forum and filing fees and each party shall bear its own
respective attorney fees and all other costs, unless otherwise provided by law
and awarded by the arbitrator.
	This Agreement constitutes the entire agreement between the parties with
respect to the subject matter hereof and supersedes all prior negotiations and
agreements, whether written or oral, with the exception of any agreements
described in paragraph 4 of this Agreement.  This Agreement may not be
modified or amended except by a document signed by an authorized officer of the
Company and Employee.  If any provision of this Agreement is deemed invalid,
illegal or unenforceable, such provision shall be modified so as to make it
valid, legal and enforceable, and the validity, legality and enforceability of
the remaining provisions of this Agreement shall not in any way be
affected.

EMPLOYEE UNDERSTANDS THAT S/HE SHOULD CONSULT WITH AN ATTORNEY PRIOR TO
SIGNING THIS AGREEMENT AND THAT S/HE IS GIVING UP ANY LEGAL CLAIMS S/HE HAS
AGAINST THE PARTIES RELEASED ABOVE BY SIGNING THIS AGREEMENT.  EMPLOYEE
ACKNOWLEDGES THAT S/HE IS SIGNING THIS AGREEMENT KNOWINGLY, WILLINGLY AND
VOLUNTARILY IN EXCHANGE FOR THE COMPENSATION AND BENEFITS DESCRIBED IN
PARAGRAPH 1.

	

 

Dated:__________________________
	

 

____________________________

[Employee Name]

	

 

 

 

 

 

Dated:___________________________
	

 

[Company]

 

 

By:_____________________________

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