Document:

Exhibit

Exhibit 10.2

PDL BIOPHARMA, INC.

Amended and Restated 2016/20 Long-Term Incentive Plan

This Amended and Restated 2016/20 Long-Term Incentive Plan (the “Plan”) is intended to enhance stockholder value by promoting a connection between the performance of PDL BioPharma, Inc. (the “Company”) and the compensation of personnel of the Company and retaining high performing personnel.  This Plan is the sixth long-term incentive plan in a series of long-term incentive plans, each plan overlapping the previous plan and having a subsequent vesting date to provide maximum continuity and retention effects.  The Plan is being implemented under the Company’s Amended and Restated 2005 Equity Incentive Plan, as amended (the “Equity Plan”), which was approved by the Company’s stockholders.  The Plan will be administered by the Compensation Committee of the Board of Directors of the Company (the “Committee”).  The Committee shall have all powers and discretion necessary to administer the Plan and to control its operation, and may delegate any and all such powers and discretion to any officer of the Company.  The Plan is effective as of January 1, 2016 (the “Effective Date”), and will 50% vest and be payable on December 12, 2017 (the “Initial Vesting Period Date”) and will 16.667% vest and be payable on each of December 12 of 2018, 2019 and 2020 (each a “Subsequent Vesting Period Date”) upon attainment of specified goals.  The Plan will terminate when all payments and benefits under the Plan have been made.

		
	1.
	Eligibility

The employees of the Company set forth in Exhibit A and any other employee approved by the Committee after the adoption of the Plan (each, a “Participant”) are eligible to receive a long-term incentive under this Plan. To be eligible for payment, a Participant must be employed by the Company as of the applicable vesting period date or otherwise eligible because of separation from the Company entitling such Participant to acceleration, vesting and payment of the Plan under any outstanding severance agreement.

		
	2.
	Performance Goals

Long-term incentives under this Plan will vest and are payable on the Initial Vesting Period Date and on applicable Subsequent Vesting Period Dates upon attainment of the Initial Performance Goal or a Subsequent Performance Goal, as applicable on such date. Failure to accomplish a Subsequent Performance Goal shall not affect any payments awarded on the Initial Vesting Period Date.  Failure to achieve the Initial Performance Goal will eliminate a Participant’s eligibility under the Subsequent Performance Goals.
The Initial Performance Goal is: deployment of $400 million or more in the aggregate in income-generating assets in the two calendar-year period of 2016 and 2017. Upon

attainment of the Initial Performance Goal, 50% of the long-term incentives of cash and restricted stock will vest and be payable on the Initial Vesting Period Date. 
Each of the Subsequent Performance Goals is: the basket of income-generating assets acquired during the two calendar-year period of 2016 and 2017 generates at least 75% of the projected cash flow for such basket in the calendar year of the applicable Subsequent Vesting Period Date.  Upon attainment of a Subsequent Performance Goal, 16.667% of the long-term incentive set forth on Exhibit A will vest and be payable as of the applicable Subsequent Vesting Period Date.  In the event that a Subsequent Performance Goal is not obtained in any calendar year, such long-term incentive may vest and be payable on the final Subsequent Vesting Period Date if the basket of income-generating assets acquired during the two calendar-year period of 2016 and 2017 generates at least 75% of the total projected cash flow for such basket during the combined calendar years of 2018-20. 
		
	3.
	Incentive

The long-term incentive consists of: (i) a cash payment and (ii) a grant of restricted stock, in each case awarded pursuant to the Equity Plan, as amended.  All incentives shall vest and pay on the Initial Vesting Period Date and Subsequent Vesting Period Date, as applicable, subject to compliance with Section 409A of the Internal Revenue Code and except as accelerated by a Change in Control.  The number of shares underlying the initial Restricted Stock Award shall be determined based on the closing price of the Company’s common stock on January 26, 2016.
Each Participant’s incentive as of the Effective Date is set forth in Exhibit A.
		
	4.
	Adjustments

There are circumstances in which adjustments to the Plan may be necessary or advisable.  The following are examples and are not intended to be an exhaustive list of such circumstances.
Early repayment of debt or buy out of a royalty: PDL acquires an income-generating asset from Company A in early 2016 which is structured as debt requiring repayment of principal and interest in 2017 through 2020.  It is part of the basket of 2016-17 income-generating assets against which the Initial and Subsequent Performance Goals under this Plan are measured.  Company A is acquired and the debt is fully repaid in June 2017.  For purposes of measuring the attainment of the Initial Performance Goal and Subsequent Performance Goals, the income-generating asset of Company A shall be treated as if it generated 100% of the projected income for purposes of attainment of the Initial and Subsequent Performance Goals even though the debt is no longer outstanding during the applicable measurement periods. 
Positive or Neutral restructuring of an income-generating asset: PDL provides a loan of $50 million to Company A in 2016.  In 2017, PDL modifies the terms of the loan to provide an additional tranche of cash upon attainment of a sales milestone.  The restructuring is beneficial to PDL because the asset is performing and the additional amount of the loan allows PDL to deploy more cash into an income-generating asset.  Attainment of the Initial and Subsequent Performance Goals is measured against the restructured deal.

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Negative restructuring of an income-generating asset: Whether facts or circumstances warrant using a revised projection of cash flow based on the restructuring (as compared to the original projected cash flow) is solely within the discretion of the Committee. 
		
	5.
	Change in Control   

Notwithstanding the foregoing, in the event of a Change in Control, (i) the vesting of the restricted stock award, (ii) the payment of any accrued but unpaid dividends or other distributions, plus interest (at the rate set forth above), and (iii) the payment of cash, will accelerate and pay in connection with the Change in Control.
For purposes of this Plan, “Change in Control” shall be deemed to have occurred as of the first day after the Effective Date that any one or more of the following conditions is satisfied:
(a)    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 50% or more of (i) the outstanding shares of common stock of the Company or (ii) the combined voting power of the Company’s then-outstanding securities entitled to vote generally in the election of directors; or
(b)    the Company (i) is party to a merger, consolidation or exchange of securities which results in the holders of voting securities of the Company outstanding immediately prior thereto failing to continue to hold at least 50% of the combined voting power of the voting securities of the Company, the surviving entity or a parent of the surviving entity outstanding immediately after such merger, consolidation or exchange, or (ii) sells or disposes of all or substantially all of the Company’s assets (or any transaction or combination of transactions having similar effect is consummated), or (iii) the individuals constituting the Board of Directors immediately prior to such merger, consolidation, exchange, sale or disposition shall cease to constitute at least 50% of the Board of Directors, unless the election of each director who was not a director prior to such merger, consolidation, exchange, sale or disposition was approved by a vote of at least two-thirds of the directors then in office who were directors prior to such merger, consolidation, exchange, sale or disposition.
Notwithstanding the foregoing, a transaction will not be considered a Change in Control unless the transaction qualifies as a “change in control” as defined in Treasury Regulation Section 1.409A-3(i)(5)(i).
		
	6.
	409A

This Plan is intended to be exempt from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), pursuant to the short term deferral exemption of Code Section 409A, so that none of the payments or benefits under this Plan, or shares of Company common stock issuable pursuant to this Plan, will be subject to the additional tax, penalties or other sanctions imposed under Code Section 409A and this Plan shall in all respects be administered, and any ambiguities herein will be 

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interpreted, to be so exempt.  For purposes of Code Section 409A, each payment under this Plan shall be treated as a separate payment. In no event may a Participant, directly or indirectly, designate the calendar year of any payment to be made under this Plan.
		
	7.
	162(m)

It is the intent of the Company that the Plan, and all payments made hereunder, satisfy and be interpreted in a manner that, in the case of Participants who are persons whose compensation is subject to Section 162(m), qualify as Performance-Based Compensation under Section 162(m).  Any provision, application or interpretation of the Plan inconsistent with this intent to satisfy the requirements of Section 162(m) shall be disregarded.  However, notwithstanding anything to the contrary in the Plan, the provisions of the Plan may at any time be bifurcated by the Committee in any manner so that certain provisions of the Plan or any payment intended (or required in order) to satisfy the applicable requirements of Section 162(m) are only applicable to persons whose compensation is subject to the limitations on deductibility of compensation provided under Section 162(m).
		
	8.
	Miscellaneous

The Company shall withhold all applicable taxes from any payment paid or benefit provided under the Plan, including any federal, state and local taxes.
Nothing in this Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment or service at any time, with or without cause. Nothing in this Plan should be construed as an employment agreement or create any entitlement to any Participant for any incentive payment or benefit hereunder.
This Plan and all awards shall be construed in accordance with and governed by the laws of the State of Nevada, without regard to its conflict of law provisions.
Payments under this Plan shall be unsecured, unfunded obligations of the Company.  To the extent a Participant has any rights under this Plan, the Participant’s rights shall be those of a general unsecured creditor of the Company.

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Exhibit A
Participant Incentive

	
						
	 
	 
	Title
	 
	Target Cash Payment
	Value of Restricted Stock Award

	John P. McLaughlin
	 
	President and Chief Executive Officer
	 
	$3,000,000
	$1,300,000

	Peter Garcia
	 
	Vice President, Chief Financial Officer
	 
	$759,229
	$325,384

	Christopher L. Stone
	 
	Vice President, General Counsel and Secretary
	 
	$765,310
	$327,990

	Danny Hart
	 
	Vice President, Business Development
	 
	$710,500
	$304,500

	Steffen Pietzke
	 
	Controller & Chief Accounting Officer
	 
	$233,920
	$100,254

	Nathan Kryszak
	 
	Senior Counsel and Assistant Secretary
	 
	$328,020
	$140,580

- 5 -Exhibit

EXHIBIT 10.1

December 22, 2014

Edward F. Mackey
[ADDRESS]
[ADDRESS]
Dear Ed:
We are pleased to offer you the position of Executive Vice President, Operations, reporting to Michael Mahoney, President and Chief Executive Officer.  As part of this offer, you will become a member of Boston Scientific’s Executive Committee, an “executive officer” under the federal securities laws and an “officer” for purposes of Section 16 of the Exchange Act.  This letter and the Agreement Concerning Employment summarize our understanding of the terms of your employment.  We look forward to you formally accepting this offer.
COMPENSATION 
Boston Scientific’s compensation programs provide our employees with significant compensation opportunities on a pay for performance basis.  The objective of these programs is to recognize and reward both individual and company performance during the performance year (defined as January 1st through December 31st of each year).
Base Salary:  Base salary for this position will be $17,307.70 currently payable bi-weekly, equivalent to $450,000.20 on an annualized basis.  Your performance and base salary will generally be reviewed on an annual basis during the normal executive review process.  Your 2015 performance and base salary will be reviewed during the normal executive review process, expected to commence in the first quarter of 2016. I am pleased to advise you that in your specific case, any merit increase will not be prorated based on your date of hire.
Annual Bonus Plan:  You will be eligible to participate in the Boston Scientific Corporation Annual Bonus Plan starting in 2015, subject to its terms. The Annual Bonus Plan provides employees with the opportunity for a variable financial incentive in recognition of performance in a given year.  Your annual target incentive will be 60% of your base salary.  Typically, any such payment will be prorated based on the number of days of eligible employment in the calendar year.  However, I am pleased to advise you that in your specific case, your 2015 annual bonus will not be pro-rated based on your date of hire.  Your actual award will be based on your achievement of individual goals and the company's achievement of corporate performance goals.  Under the plan, generally you must be an employee on the date of payment to be eligible to earn and receive any bonus payment.
Deferred Bonus Plan: You will be eligible to participate in the Boston Scientific Corporation Deferred Bonus Plan starting in 2016, subject to its terms.  This plan allows you to save additional tax-deferred money for your future by deferring a portion of your annual bonus awarded under the Annual Bonus Plan. Specifically, under the plan, on an annual basis, you can elect to defer up to 75% of the Annual Bonus Plan bonus awarded to you subject to the provisions of the Plan. The open enrollment will be in June, 2016 for the 2016 plan year and every subsequent year following which you are eligible for.

EXHIBIT 10.1

Cash Sign-On Bonus:  To compensate for the anticipated loss of your 2014 annual bonus from your current employer, Boston Scientific would provide you with a one-time sign-on bonus in the amount of $200,000 (gross amount) payable within your first thirty days of employment. If you receive your 2014 annual bonus from your current employer, you are not eligible for this sign-on bonus. In addition, you must be employed by Boston Scientific to receive the cash sign-on bonus.  If you should leave Boston Scientific voluntarily or if you are discharged due to a serious violation of company policy prior to the first anniversary of your start date, you must repay the entire sign-on bonus to the company within 30 days of your departure. 

Equity Sign-on Grant:  As part of this offer of employment, we are offering you an equity incentive award having a total value of $2,050,000 on the date of grant.  The equity incentive award could be in the form of Deferred Stock Units (DSUs) or non-qualified stock options or a mix of both DSUs and non-qualified stock options, depending on your preference.  Upon your acceptance of this offer, we will provide you an election form to document your choice.  Your award will be made pursuant to the 2011 Boston Scientific Long Term Incentive Plan. Our Long-Term Incentive Plans are designed to share the rewards of the business with individuals who most significantly contribute to the achievement of the Company’s strategic and operating goals.  The date of grant will be the first trading day of the month following date of hire.
Annual Equity Grant:  As part of this offer of employment, during the normal annual review process (scheduled for Q1 2015) you will be recommended to be granted an equity award having a total value of $750,000 on the effective date of grant.  This award will constitute your annual equity grant under the 2015 Long Term Incentive Program. This award will be made pursuant to the 2011 Boston Scientific Long Term Incentive Plan.  The effective date of grant will be the date on which 2015 long-term incentive awards are made to equity eligible employees of Boston Scientific, which under our policies is generally on the date of approval..  Thereafter, your performance and entitlement to long term incentive compensation grants will be reviewed in the normal course, on an annual basis starting with the annual review process which we expect to have in Q1 of 2016. The current program provides for an equal mix of Total Shareholder Return Performance Shares (TSR PSP), Free Cash Flow Performance Shares (FCF PSP), Deferred Stock Units (DSU’s) and Non-Qualified Stock Options. 
Total Shareholder Return Performance Share Program (TSR PSP) Award:  A TSR PSP award reflects Boston Scientific’s commitment to grant to you a number of shares of Boston Scientific common stock (less applicable tax and other withholdings), subject to certain performance, eligibility and other conditions, and will fully vest at the end of a three year period beginning on the effective date of the grant.  The target number of Performance Share Units (PSU) to be awarded to you will be calculated using the Fair Market Value (closing price) of Boston Scientific common stock on the effective date of grant. The actual number of shares delivered to you at the end of the vesting period will be based on Boston Scientific's stock performance over the three year period as compared to the S&P HealthCare Index and may be earned at less than, at or greater than the target number of  PSUs awarded.  The TSR PSP award will be subject to the provisions of the Boston Scientific 2011 Long Term Incentive Plan (2011 LTIP), and the TSR PSP and the PSU Award Agreement.
Free Cash Flow Performance Share Program (FCF PSP) Award:  A FCF PSP award reflects Boston Scientific’s commitment to grant to you a number of shares of Boston Scientific common stock (less applicable tax and other withholdings), subject to certain performance, eligibility and other conditions, and will fully vest at the end of a three year period beginning on the effective date of the grant.  The target number of Performance Share Units (PSU) to be awarded to you will be calculated using the Fair Market Value (closing price) of Boston Scientific common stock on the effective date of grant. The actual number of shares delivered to you at the end of the vesting period will be based on Boston Scientific's Free Cash Flow performance against plan in 2015 and may be earned at less than, at or greater than the target number of PSUs awarded. The FCF PSP award will be subject to the provisions of the 2011 LTIP, the FCF PSP and the PSU Award Agreement. 

EXHIBIT 10.1

DSU Award:  An award of Deferred Stock Units (DSUs) reflects Boston Scientific’s commitment to grant to you a number of shares of Boston Scientific common stock (less applicable tax and other withholdings), to be issued in five equal annual increments beginning on the first anniversary of the date of the grant.  The DSU award will be subject to the provisions of the 2011 LTIP and the DSU Award Agreement.  

Non-Qualified Stock Options:  A stock option grant provides an opportunity to purchase shares of Boston Scientific common stock at the exercise price.  The number of stock options granted to you will be calculated using a Black Scholes calculation of the value of the options on the effective date of grant.  The exercise price will be equal to the Fair Market Value (closing price) of Boston Scientific common stock on the effective date of grant.  The stock option grant will vest in four equal annual installments beginning on the first anniversary of the date of grant and would expire on the 10th anniversary of the grant date.  The stock option award will be subject to the provisions of the 2011 LTIP and the Non-Qualified Stock Option Award Agreement.  

Thereafter, during the normal executive review process you will be eligible for consideration for an annual equity incentive award, subject to and in accordance with the terms of Boston Scientific’s Long Term Incentive Program.   Awards will depend on both company and individual performance. The target value for your level will be evaluated annually by the Executive Compensation and Human Resource Committee of the Boston Scientific Board of Directors.  

EXECUTIVE RETIREMENT PLAN
As an Executive Committee Member, if you were to "Retire" from Boston Scientific (as that term is defined in the Boston Scientific Executive Retirement Plan), you may be eligible to receive certain benefits provided under that plan, subject to and in accordance with its terms. A copy of Boston Scientific's Executive Retirement Plan is attached for your information.

CHANGE IN CONTROL AGREEMENT
As an Executive Committee Member, Boston Scientific will provide you an executive-level Change in Control agreement. In general, the Change in Control agreement would entitle you to a lump sum payment of three times your base salary and assumed on-plan incentive bonus if, following a change in control of Boston Scientific, either your employment is terminated other than for “cause” or you resign for “good reason” (each as defined in the Change in Control agreement) all subject to and in accordance with the agreement. A copy of this agreement will be distributed to you in your first week of your new role.
BENEFITS 
You will be provided with information regarding Boston Scientific's current benefit programs following your acceptance of this offer.  You should review this information prior to your start date so you are prepared to enroll within your first 31 days of employment.  Boston Scientific reserves the right to change and/or terminate any aspect of our benefit offerings, including employee contributions toward benefits.
RELOCATION
To assist with your move, Boston Scientific is pleased to provide you with a relocation package that would include certain provisions of Boston Scientific’s Tier 5 Executive Officer Domestic Relocation Policy, subject to its terms and conditions.  The provisions we offer are as follows: closing costs on the sale of your principal residence, a guaranteed buyout provision should your principal residence not sell (provided the property meets the eligibility requisites under the Relocation Policy, and you elect to enter into a Guaranteed Sale/Amended Sale Agreement);  closing costs on your purchase of a new home, costs of move of goods to your new home, up to two months of dual housing offset if required, and a miscellaneous allowance of $7,500.  As a condition of receiving relocation benefits, you will be required to sign an Agreement to Reimburse.  A copy of the Relocation Policy is attached; the form Agreement to Reimburse is on the last page of the policy.

To support your transition to your new location, Boston Scientific will provide relocation support through our third party vendor, Weichert Relocation Services.  A representative from Weichert will contact you in January 2015 to discuss the specific provisions of your package.   Please note that you will be required to sign an 

EXHIBIT 10.1

Agreement to Reimburse, which requires you to repay expenses in the event you voluntarily resign or are terminated for certain reasons, in accordance with the terms of the Agreement.    

NOTE:   Since Home Sale Assistance is a provision of your relocation, it is required that Weichert be allowed to make the initial call to the realtor of your choice. Therefore, you are encouraged not to contact a realtor directly before speaking with Weichert as doing so may impact your eligibility for relocation services.
AGREEMENT CONCERNING EMPLOYMENT AND NO CONFLICT WITH PRIOR AGREEMENTS 
You must enter into an Agreement Concerning Employment with Boston Scientific.  Please read this Agreement before accepting your offer because it contains provisions that affect your legal rights, including obligations regarding protection of confidential and proprietary information and other important covenants.  You will be asked to sign the Agreement Concerning Employment upon accepting the offer. In addition, Boston Scientific expects that you will comply with any valid ongoing obligations to any prior employer, including that you will not bring with you or use during your employment with Boston Scientific any confidential information from any prior employer. By accepting this offer, you represent that your employment with Boston Scientific shall not breach any valid agreement you have with any third party.
EMPLOYMENT AT WILL 
Upon acceptance of this offer and your active start of employment, you will become an "at will" employee of Boston Scientific.  This means that you will be free to resign at any time.  Likewise, Boston Scientific will have the right to terminate your employment at any time with or without reason or notice.  Acceptance of this offer acknowledges your understanding and acceptance of the "at will" nature of your employment.
BACKGROUND VERIFICATION AND PRE-EMPLOYMENT DRUG TESTING 
Please note that this offer of employment is contingent upon your successful completion of a background check and drug test.  The drug test must be completed within three (3) business days of accepting this offer.  You will be contacted by Boston Scientific’s vendor, HireRight, to provide and receive information necessary to perform the background check and drug test.   By accepting your offer, you acknowledge that you have received and reviewed Boston Scientific’s Pre-Employment Drug Testing Policy and that you consent to pre-employment drug testing under the policy.
AUTHORIZATION TO WORK 
This offer of employment is also contingent upon your ability to provide, within three (3) days following your start date, a completed I-9 form with acceptable original documents that will establish your identity and authorization to work in the U.S. in compliance with the Immigration Reform and Control Act of 1986, a federal law.  You will be asked to present these documents on your first day of employment so please remember to bring them. 
ONBOARDING 
Upon receipt of your acceptance, you will receive an email with a link to Boston Scientific’s Welcome Portal.   Please create a password and login within 48 hours of receipt.  The portal contains electronic forms that must be completed prior to your start date. You will also find information on how to enroll for benefits.  
ACCEPTANCE 
This offer of employment is contingent upon the following:
• Successful completion of background check and drug test; 
• An acceptance no later than December 30, 2014; 
• A start date to be mutually agreed upon, but no later than February 2, 2015 and 
• A signed Agreement Concerning Employment 
Please indicate your acceptance by acknowledging below.

Ed, we believe that the opportunity here with Boston Scientific will be a mutually rewarding one and we look forward to your acceptance of this offer.

EXHIBIT 10.1

Sincerely,

/s/ Michael F. Mahoney  
Michael F. Mahoney                                                                                                                                 President and Chief Executive Officer 

Agreed to and Accepted by:  /s/ Edward F. Mackey__________________________ Date: _12/24/2014__                                                         Edward F. Mackey
             
Enclosures:
Deferred Bonus Plan
Executive Retirement Plan
Agreement Concerning Employment

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