Document:

Exhibit 10.1

 

Transition Services Agreement

 

PDL BioPharma, Inc.,

a Delaware corporation

 

and

 

Facet Biotech Corporation,
 a Delaware corporation

 

Dated as of [                 ],
2008

 

 

Transition Services Agreement

 

This Transition Services Agreement (this “Agreement”)
is entered into as of [             ],
2008, by and between PDL BioPharma, Inc., a Delaware corporation (“PDL”),
and Facet Biotech Corporation, a Delaware corporation (“Facet”), each a “Party”
and together, the “Parties”.  Capitalized
terms not defined herein shall have the meaning set forth in that certain
Separation and Distribution Agreement dated as of the date hereof by and
between the Parties, as amended or otherwise modified from time to time (the “Separation
Agreement”).  This Agreement shall be
effective on the Distribution Date, as defined in the Separation Agreement.

 

Recitals:

 

WHEREAS, the Board of Directors of PDL has
determined that it is appropriate, desirable and in the best interests of PDL
and its stockholders to separate PDL into two separate, independent and
publicly traded companies;

 

WHEREAS, to effect this separation the
Parties entered into the Separation Agreement;

 

WHEREAS, the Parties have agreed to enter
into this Agreement in order for PDL to assist Facet, and for Facet to assist PDL,
each for a period from and after the Distribution Date, by providing to Facet
and PDL, respectively, certain services and support not otherwise specified in
the Separation Agreement or any other Ancillary Agreement.

 

NOW, THEREFORE, in consideration of the
foregoing premises, the mutual promises and covenants hereinafter set forth,
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties, intending to be legally bound, agree as
follows:

 

Article 1

Definitions

 

As used in this Agreement, the following
capitalized terms shall have the following meanings:

 

1.1           “Additional
Service” shall have the meaning set forth in Section 2.7(a).

 

1.2           “Agreement
Dispute” shall have the meaning set forth in Section 11.

 

1.3           “Business”
shall mean the PDL Business or the Facet Business, as applicable.

 

1.4           “Default
Interest Rate” shall have the meaning set forth in Section 3.2(b).

 

1.5           “Due
Date” shall have the meaning set forth in Section 3.2(a).

 

1.6           “Facet
Project Manager” shall have the meaning set forth in Section 2.9.

 

1.7           “Facet
Services” shall mean the enumerated services described on Schedule B
attached hereto.

 

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1.8           “Fee”
or “Fees” shall have the meaning set forth in Section 3.1(a).

 

1.9           “Force
Majeure” shall mean, with respect to a Party, an event beyond the
reasonable control of such Party (or any Person acting on its behalf), which by
its nature could not have been foreseen by such Party (or such Person), or, if
it could have been foreseen, was unavoidable, and includes acts of God, storms,
floods, earthquakes, hurricanes, riots, pandemics, fires, sabotage, strikes,
lockouts, civil commotion or civil unrest, interference by civil or military
authorities, acts of war (declared or undeclared) or armed hostilities or other
national or international calamity or one or more acts of terrorism.

 

1.10         “PDL
Project Manager” shall have the meaning set forth in Section 2.9.

 

1.11         “PDL
Services” shall mean the enumerated services described on Schedule A
attached hereto.

 

1.12         “Schedules”
shall mean Schedule A and Schedule B attached hereto.

 

1.13         “Service”
shall mean any of the Facet Services or the PDL Services, as applicable.

 

1.14         “Service
Provider” shall mean PDL with respect to the PDL Services, and Facet with
respect to the Facet Services.

 

1.15         “Service
Recipient” shall mean Facet with respect to the PDL Services, and PDL with
respect to the Facet Services.

 

1.16         “Services
Group” shall mean any Services or group of Services identified on one of
the Schedules for which a single, separate Fee is specified on such Schedule.

 

1.17         “Services
Term” shall have the meaning set forth in Section 4.1.

 

Article 2

Services

 

2.1           Scope
of Services.

 

(a)           Facet
hereby retains PDL to provide, and PDL hereby agrees to provide, the PDL
Services to Facet or any of its Subsidiaries, as designated by Facet, during
the relevant Services Term.

 

(b)           PDL
hereby retains Facet to provide, and Facet hereby agrees to provide, the Facet
Services to PDL or any of its Subsidiaries, as designated by PDL, during the
relevant Services Term.

 

(c)           Notwithstanding
anything to the contrary in this Agreement, (i) the PDL Services shall be
available to Facet or any of its Subsidiaries only for the purposes of
conducting the Facet Business substantially in the same manner as it was
conducted immediately prior to the Distribution Date; and (ii) the Facet
Services shall be available to PDL or any of its Subsidiaries 

 

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only for the purposes of
conducting the PDL Business substantially in the same manner as it was
conducted immediately prior to the Distribution Date.

 

2.2           Provision
of Services.  The PDL Services may be
directly provided by PDL or may be provided through any of its Affiliates or
subcontractors, and the Facet Services may be directly provided by Facet or may
be provided through any of its Affiliates or subcontractors; provided, however,
that the applicable Service Provider shall remain responsible, in accordance
with this Agreement, for performance of any Service it causes to be so
provided.

 

2.3           No
Assumption or Modification of Obligations. 
Nothing herein shall be deemed to (a) constitute the assumption by
Service Provider or any of its Affiliates, or the agreement to assume, any
duties, obligations or liabilities of Service Recipient or its Affiliates
whatsoever; or (b) alter, amend or otherwise modify any obligation of PDL
or Facet, as the case may be, under the Separation Agreement.

 

2.4           Application
of Resources. Unless otherwise expressly required under the terms of the
Separation Agreement or any Schedules, or otherwise agreed to by the Parties in
writing, in providing the Services, Service Provider or its Affiliates shall
not be obligated to: (a) expend funds and other resources beyond levels
that would be customary and reasonable for any other nationally recognized
service provider to perform services that are similar to the relevant Services;
(b) maintain the employment of any specific employee or subcontractor;
provided, however that Service Provider shall use commercially reasonable
efforts to provide a replacement with the necessary skill and expertise; (c) purchase,
lease or license any additional (measured as of the date hereof) equipment or
materials (but expressly excluding any renewal or extension of any leases or
licenses required for Service Provider to perform the relevant Services during
the relevant Services Term); (d) pay any of Service Recipient’s costs
related to its or any of its Subsidiaries’ receipt of the Services; (e) lend
any funds to a Service Recipient or its Subsidiaries; or (f) make any
payments or disbursements on behalf of Service Recipient, except to the extent
Service Recipient has previously delivered to Service Provider sufficient funds
to make any such payment or disbursement.

 

2.5           Performance
of Services.  Subject to the other
terms (a) in this Agreement setting forth and circumscribing Service
Provider’s performance obligations hereunder (including in this Article 2
and in Article 6), and (b) in the relevant Schedules, each Service
Provider shall perform the Services required to be provided by it hereunder in
a manner specifically described in the relevant Schedules, or, to the extent
not so described in such Schedules, in a manner that is substantially the same
in nature, accuracy, quality, completeness, timeliness, responsiveness and
efficiency with how such relevant Services have been rendered in support of the
Facet Business and/or the PDL Business prior to the Distribution Date.  To the extent that either PDL or Facet determines that any sharing of
information or historical knowledge would be commercially detrimental in any
material respect, violate any Law or agreement or waive any attorney-client
privilege, the work product doctrine or other applicable privilege, the Parties
shall take all reasonable measures to permit the compliance with such
obligations in a manner that avoids any such harm or consequence.

 

2.6           Transitional
Nature of Services; Changes.  The
Parties acknowledge the transitional nature of the Services and agree that,
notwithstanding anything to the contrary 

 

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herein, each Service Provider
may make changes from time to time in the manner of performing the Services if
such Service Provider is making similar changes in performing similar services
for itself and/or its Subsidiaries; provided that Service Provider must
provide Service Recipient with at least thirty (30) days prior written
notice of material changes and reasonably cooperate with Service Recipient in
adjusting to such change.

 

2.7           Additional
Services; Extension of Services Terms. 
In the event that the Parties identify and agree upon (a) an
additional service to be provided under this Agreement, as well as the related
fees and other specific terms and conditions applicable thereto (an “Additional
Service”), or (b) an extension of any particular Service Term for any
Services Group, as well as the related fees and other specific terms and
conditions applicable thereto, the Parties shall execute an amendment to this
Agreement that provides for the substitution of the relevant Schedule, or
additions of supplements to the relevant Schedule, in order to describe such
Additional Service or extension, and the agreed upon related fees and other
specific terms and conditions applicable thereto. It is understood that the
Service Provider has no obligation to provide Additional Services and may
reject any request by any Service Recipient for Additional Services for any
reason or for no reason.

 

2.8           Impracticability.  Subject to the provisions of Section 2.10,
Service Provider shall not be required to provide any Service to the extent: (a) that
the performance of the Services would (i) require Service Provider or any
of its Subsidiaries to violate any applicable Laws (including any applicable
codes or standards of conduct established any Governmental Entity with respect
to their activities subject to the jurisdiction of such Governmental Entity) or
any internal policy reasonably adopted in order to comply with any applicable
Laws; (ii) result in the breach of any software license, lease, or other
Contract; or (iii) require prior approval of a Governmental Entity (except
to the extent such approval has already been obtained); or (b) that
Service Provider cannot provide such Service due to a Force Majeure event;
provided, however that Service Provider shall resume such Service as soon as
practicable after such Force Majeure event..

 

2.9           Project
Managers.  PDL shall designate from
time to time at least one individual, and shall inform Facet of the identity of
such individual, to whom all of Facet’s communications may be addressed with
respect to the PDL Services and who has authority to act for and bind PDL in
all aspects with respect to the PDL Services (the “PDL Project Manager”).  Facet shall designate from time to time at
least one individual and shall inform PDL of the identity of such individual, to
whom all of PDL’s communications may be addressed with respect to the Facet
Services and who has authority to act for and bind Facet in all aspects with
respect to the Facet Services (the “Facet Project Manager”).  The initial PDL Project Manager designated by
PDL shall be [             ]
and the initial Facet Project Manager designated by Facet shall be [                              ].

 

2.10         Cooperation.  In the event that there is nonperformance of
any Service as a result of impracticability pursuant to Section 2.8, the
Parties agree to work together in good faith to arrange for an alternative
means by which the applicable Service Recipient may obtain, at its sole cost
and expense, the Service so affected.  The
Service Provider shall cooperate with the Service Recipient in connection with
the performance of the Services, including producing on a timely basis all
Contracts, documents and other information that is reasonably requested with
respect to 

 

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the performance of Services; provided,
however, that such cooperation shall not unreasonably disrupt the normal
operations of the Service Recipient or its respective Subsidiaries.

 

2.11         Independent
Contractor Relationship.  The
relationship of the Parties hereunder is that of independent contractors, and
nothing in this Agreement is intended to, or shall be construed to, create a
partnership, agency, joint venture, employment or similar relationship.

 

Article 3

Pricing

 

3.1           Fees.
 Except as explicitly stated in Schedule
B for certain Facet Services, in consideration of Services performed pursuant
to this Agreement, the Parties shall pay the applicable fees (individually a “Fee”
and collectively the “Fees”) as follows:

 

(a)           by
PDL to Facet, at $125.00/hour/person  for
the time spent by employees within Facet performing the Facet Services;
and

 

(b)           by Facet
to PDL, at $125.00/hour/person  for
the time spent by employees within PDL performing the PDL Services.

 

3.2           Payment
Procedures.  If Fees are payable
pursuant to Section 3.1:

 

(a)           Service
Provider shall invoice Service Recipient on a monthly basis for all Fees
accrued with respect to the prior month. 
Fees shall be payable by Service Recipient within thirty (30) days after
Service Recipient’s receipt of an invoice (the “Due Date”).  All amounts (i) payable pursuant to the
terms of this Agreement shall be paid to Service Provider as directed by
Service Provider, and (ii) due and payable hereunder shall be invoiced and
paid in U.S. dollars, except as may be expressly provided in any relevant
Schedule.  A Service Recipient’s
obligation to make any required payments under this Agreement shall not be
subject to any unilateral right of offset, set-off, deduction or counterclaim,
however arising.

 

(b)           Default
Interest Rate.  Subject to the
provisions of Section 3.2(c), amounts not paid on or before the Due Date
shall be payable with accrued interest thereon, from the date originally due,
at the annual rate announced by the Bank of America (or any successor) as its
prime rate in effect on the date that such payment was first due plus two
percent (2%).

 

(c)           Disputes.  In the event that Service Recipient disputes
the accuracy of any invoice or portion thereof, Service Recipient shall provide
Service Provider on or prior to the Due Date written notice of the disputed amounts,
together with a statement of the particulars of the dispute.  Should Service Recipient fail to provide notice
of any disputed amounts on or before the Due Date, the amounts set forth on the
invoice shall be owed with interest at the Default Interest Rate from the Due
Date until payment is received.  Should
Service Recipient provide the required information on or before the Due Date,
Service Provider shall have thirty (30) days following receipt of the required
information to reject Service Recipient’s modified invoice (or portion thereof)
by providing Service Recipient notice of such rejection within such 30-day
period.  Should Service Provider fail to
provide such notice within the time period allowed, Service Recipient’s
modified invoice (or portion thereof) shall be deemed to be the correct
invoice.  Should Service Provider provide
the required notice within such 30-day period, 

 

5

 

resolution of the disputed
invoice shall be in accordance with the provisions of Article 11
hereof.  If Service Recipient has
underpaid the amount actually due, Service Recipient shall remit to the Service
Provider, within five (5) business days after receipt of the determination
from Service Provider, any amount due plus interest at the Default Interest
Rate from the Due Date until paid.  Notwithstanding
any disputed invoice or portion thereof, Service Recipient shall nevertheless
pay when due any undisputed amount of such invoice to Service Provider.

 

3.3           Taxes.
 If any Governmental Entity shall impose
a tax on the Services rendered to a Service Recipient or its Subsidiaries by
Service Provider hereunder, Service Recipient agrees to pay, or remit to
Service Provider so that Service Provider may pay, the amount of such tax imposed
now or in the future on the Services rendered to Service Recipient or its
Subsidiaries by Service Provider under this Agreement.  Notwithstanding anything to the contrary
contained in this Agreement, Service Recipient shall have no liability for, and
shall not be obligated to pay for, any property taxes of any kind or type
applicable to the property of Service Provider or any of its Subsidiaries or
any income taxes of any kind or type applicable to the income of Service
Provider or any of its Subsidiaries, except as may be expressly provided in any
relevant Schedule.

 

3.4           Expenses.
 In addition to the payment of all Fees,
at the end of each month during the Services Term, Service Recipient shall
reimburse Service Provider for all reasonable out-of-pocket costs and expenses
incurred by Service Provider or its Subsidiaries in connection with providing
the Services (including pass-through costs for third party contractors and travel-related
expenses).  Any travel-related expenses
incurred in performing the Services shall be incurred and charged to Service
Recipient in accordance with Service Provider’s then applicable business travel
policies.

 

Article 4

Services Term; Termination

 

4.1           Services
Term.  The performance of the
Services shall commence on the Distribution Date and shall expire as set forth
on Schedule A or Schedule B, as applicable, with respect to each
such Service, unless earlier terminated pursuant to Section 4.2 hereof
(the “Services Term”).

 

4.2           Termination.
 The obligations under this Agreement may
be terminated prior to the expiration of the relevant Services Term only as provided
on Schedule A or Schedule B, as applicable, with respect to each
such Service.

 

4.3           Rights
and Obligations Upon Termination. Upon expiration of the Services Term or
in the event of a termination pursuant to Section 4.2, no Party, nor any
of its Affiliates, shall have any liability or further obligation to any other
Party or any of its Affiliates pursuant to this Agreement, except: (a) that
the provisions of Sections 3 (to the extent of amounts accrued thereunder
through the date of such expiration or termination), 4.3, 5, 6, 7, 8, 9, 10, 11,
12, 13, and 14 (as well as in each case associated defined terms) shall survive
any such expiration or termination and not be extinguished thereby; and (b) any
Party nevertheless shall be entitled to seek any remedy to which it may be
entitled at law or in equity for the violation or breach by the 

 

6

 

other Party of any agreement,
covenant, representation, warranty, or indemnity contained in this Agreement
that occurs prior to such expiration or termination.

 

Article 5

Return Of Leased Property Or Licensed Software

 

Service Recipient shall be liable for all
costs and expenses incurred by Service Provider or any of its Subsidiaries
resulting from any delay or failure of Service Recipient to return to Service
Provider or any licensor, as applicable, any leased property or licensed
software that is included as part of the Services provided to such Service
Recipient upon (a) the termination of the relevant Services as provided
herein, or (b) the expiration of the term of the applicable lease or
license, provided that Services Provider has provided Service Recipient with at
least sixty (60) days prior written notice of such expiration.

 

Article 6

Internal Controls And Procedures

 

In addition to the record retention
requirements of the Separation Agreement, with respect to the Services for
which each Service Provider is responsible, such Service Provider shall
maintain and comply with such internal controls and procedures as are necessary
to comply with the Sarbanes-Oxley Act of 2002 or as otherwise agreed by the
Parties to be implemented by the Parties to comply with internal controls and procedures
or applicable Law.  In the event a
Service Recipient requires a change to the internal controls or procedures, or
requires the implementation of additional internal controls or procedures,
related to the Services required to be provided to such Service Recipient in
order for such Service Recipient to comply with changes to applicable Law,
Service Provider shall change or add to such Service Provider’s internal
controls or procedures related to such Services as reasonably requested by such
Service Recipient; provided, however, in connection with a
Service Provider changing or adding to internal controls or procedures as
required by the foregoing, Service Recipient shall pay for any and all
additional costs and expenses associated with the implementation or maintenance
of the applicable change or addition; provided further, however,
that if such change or addition is required for the compliance by both Parties
with a Law applicable to both Parties, the Parties shall negotiate in good
faith an equitable sharing of the costs and expenses associated with such
change or addition.

 

Article 7

Books And Records

 

The Parties shall keep and maintain books,
records, accounts and other documents sufficient to reflect accurately and
completely the transactions conducted, and all associated costs incurred,
pursuant to this Agreement.  Such records
shall include receipts, invoices, memoranda, vouchers, inventories, timesheets
and accounts pertaining to the Services, as well as complete copies of all
contracts, purchase orders, service agreements and other such arrangements
entered into in connection therewith.

 

7

 

Article 8

Compliance With Laws And Governmental Requirements

 

Each Party shall be responsible for
compliance with all Laws affecting its Business.  Each Service Recipient shall be responsible
for any use such Service Recipient may make of the Services to assist it in
complying with applicable Laws.  Each
Service Provider shall comply with (a) all Laws applicable to the
provision by it of the Services hereunder, and (b) the accounting and
reporting requirements of any Governmental Entity having jurisdiction over it
or any Party with respect to their respective activities related to such
Service Provider’s performance of the Services.

 

Article 9

Disclaimer And Limitation Of Liability

 

9.1           EACH
PARTY ACKNOWLEDGES AND AGREES (A) THAT ALL SERVICES ARE PROVIDED BY
SERVICE PROVIDER ON AN “AS IS” BASIS, AND (B) THAT NEITHER SERVICE
PROVIDER MAKES ANY REPRESENTATIONS OR WARRANTIES, WHETHER STATUTORY, EXPRESS,
OR IMPLIED, TO SERVICE RECIPIENT OR ANY OF ITS AFFILIATES WITH RESPECT TO THE
SERVICES, ANY EQUIPMENT OR MATERIALS PROVIDED UNDER THIS AGREEMENT, OR
OTHERWISE HEREUNDER, INCLUDING ANY WARRANTIES OF MERCHANTABILITY AND FITNESS
FOR A PARTICULAR PURPOSE, OR ANY WARRANTIES ARISING FROM COURSE OF DEALING OR
USAGE OF TRADE.

 

9.2           NO
PARTY SHALL UNDER ANY CIRCUMSTANCES BE LIABLE TO ANY OTHER PARTY FOR ANY
SPECIAL, INDIRECT, INCIDENTAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES
(INCLUDING LOSS OF PROFITS OR REVENUE, LOSS OF BUSINESS, LOSS OF USE OR OF
DATA, INTERRUPTION OF BUSINESS OR OTHERWISE) RESULTING OR ARISING FROM THE
SERVICES, ANY PERFORMANCE OR NONPERFORMANCE OF THE SERVICES OR TERMINATION OF
THE SERVICES REGARDLESS OF WHETHER SUCH DAMAGES OR OTHER RELIEF ARE SOUGHT
BASED ON BREACH OF WARRANTY, BREACH OF CONTRACT, NEGLIGENCE, STRICT LIABILITY
IN TORT, OR ANY OTHER LEGAL OR EQUITABLE THEORY, EXCEPT TO THE EXTENT THAT ANY
SUCH DAMAGES RELATE TO A CLAIM FOR INDEMNIFICATION PURSUANT TO ARTICLE 10, A
BREACH OF ANY OF THE CONFIDENTIALITY PROVISIONS OF THIS AGREEMENT OR THE
SEPARATION AGREEMENT, OR FRAUD, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE
SERVICE PROVIDER OR ITS AFFILIATES.

 

Article 10

Indemnity

 

10.1         Service
Recipient Indemnity.  Service
Recipient hereby agrees to indemnify, defend and hold harmless Service Provider
and each of its Affiliates from and against any and all claims, losses,
demands, liabilities, costs and expenses (including reasonable attorneys’ fees and
costs and expenses related thereto) suffered or incurred by Service Provider or
any of its Affiliates as a result of or in connection with any third party
claims to the extent caused, in whole or in part, by the fraud, gross
negligence or willful misconduct of Service Recipient or any of its Affiliates
in its receipt of the Services or in its provision to Service Provider or any
of its Affiliates of any information reasonably required for performance of the
Services by Service 

 

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Provider or any of its
Affiliates. In no event shall the aggregate liability of Service Recipient and
its Affiliates to Service Provider and its Affiliates, for any damages
concerning Service Recipient’s or its Subsidiaries’ receipt of the Services or
any other matter arising out of, or related to, this Agreement (regardless of
whether any such claim for such damages is based in contract or in tort) exceed
the amounts actually paid to Service Provider by Service Recipient pursuant to
this Agreement.

 

10.2         Service
Provider Indemnity.  Service Provider
hereby agrees to indemnify, defend and hold harmless Service Recipient and each
of its Affiliates from and against any and all claims, losses, demands,
liabilities, costs and expenses (including reasonable attorney’s fees and costs
and expenses related thereto) suffered or incurred by Service Recipient or any
of its Affiliates as a result of, or in connection with, any third party claims
to the extent caused, in whole or in part, by the fraud, gross negligence or
willful misconduct of Service Provider or any of its Affiliates in performing
the Services.  In no event shall the
aggregate liability of Service Provider and its Affiliates to Service Recipient
and its Affiliates, for any damages concerning Service Provider’s or its Subsidiaries’
or subcontractors’ performance or nonperformance of the Services or any other
matter arising out of, or related to, this Agreement (regardless of whether any
such claim for such damages is based in contract or in tort) exceed the amounts
actually paid to Service Provider by Service Recipient pursuant to this
Agreement.

 

10.3         Procedures.  Any claim for indemnification under this Article 10
shall be governed by, and be subject to, the provisions of Article V of
the Separation Agreement, which provisions are hereby incorporated by reference
into this Agreement and any references to “Agreement” in such Article V as
incorporated herein shall be deemed to be references to this Agreement.

 

Article 11

Dispute Resolution

 

Any controversy, dispute or claim arising out
of, in connection with, or in relation to the interpretation, performance,
nonperformance, validity, termination or breach of this Agreement or otherwise
arising out of, or in any way related to this Agreement or the transactions
contemplated hereby, including any claim based on contract, tort, statute or
constitution (but excluding any controversy, dispute or claim arising out of
any Contract relating to the use or lease of real property if any third party
is a necessary party to such controversy, dispute or claim) (collectively, “Agreement
Dispute”), shall be governed by, and be subject to, the provisions of Article IX
of the Separation Agreement, which provisions (and related defined terms) are
hereby incorporated by reference into this Agreement.

 

Article 12

Property Rights

 

12.1         No
Transfer.  The Parties acknowledge
and agree that nothing in this Agreement is intended to transfer any right,
title, or interest in and to any tangible, intangible, real or personal
property (including any and all intellectual property rights).  Notwithstanding any materials, deliverables,
or other products that may be created or developed by Service Provider or its Subsidiaries
from the date hereof through the expiration or termination of the relevant 

 

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Services Term, Service Provider
does not hereby convey, nor does Service Recipient nor any of its Subsidiaries hereby
obtain, any right, title, or interest in or to any of Service Provider’s or any
of its Subsidiaries’ equipment, materials, deliverables, products, or any other
rights or property used to provide the Services.  All customer and personnel data, files and
input and output materials and the media upon which they are located that are
supplied by Service Recipient or any of its Subsidiaries in connection with
this Agreement shall remain Service Recipient’s or such Subsidiary’s property,
respectively, and Service Provider shall not have any rights or interests with
respect thereto.

 

Article 13

Confidential Information

 

Any Confidential Information received by
either Party or its Affiliates from the other Party or any of its Affiliates in
connection with this Agreement shall be governed by, and be subject to, the
provisions of Article VII of the Separation Agreement, which provisions
are hereby incorporated by reference into this Agreement and any references to “Agreement”
in such Article VII as incorporated herein shall be deemed to be
references to this Agreement.

 

Article 14

Miscellaneous

 

14.1         Incorporation.  The provisions of Article XII
(Miscellaneous) (except for Section 12.8) of the Separation Agreement are
incorporated herein, mutatis mutandis,
by reference.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the Parties caused this
Transition Services Agreement to be duly executed as of the day and year first
above written.

 

 

	
   

  	
  PDL BioPharma, Inc.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Facet Biotech Corporation,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:Exhibit 10.9

 

Indemnity
Agreement

 

This
Indemnity Agreement (this “Agreement”), dated as of December     ,
2008, is made by and between Facet Biotech Corporation, a Delaware corporation
(the “Company”), and
                                                    ,
an individual (the “Indemnitee”).

 

Background

 

A.            The Indemnitee’s service to the
Company substantially benefits the Company.

 

B.            The Company is aware that competent
and experienced persons are increasingly reluctant to serve as directors,
officers or agents of corporations unless they are protected by comprehensive
liability insurance or indemnification, due to increased exposure to litigation
costs and risks resulting from their service to such corporations, and due to
the fact that the exposure frequently bears no reasonable relationship to the
compensation of such directors, officers and other agents.

 

C.            The Company believes that it is
unfair for its directors, officers and agents and the directors, officers and
agents of its subsidiaries to assume the risk of huge judgments and other
expenses which may occur in cases in which the director, officer or agent
received no personal profit and in cases where the director, officer or agent
was not culpable.

 

D.            The Board of Directors of the
Company (the “Board”) has concluded that, to retain and attract talented
and experienced individuals to serve as directors, officers and agents of the
Company and its subsidiaries, it is necessary for the Company to contractually
indemnify its directors, officers and agents and the directors, officers and
agents of its subsidiaries, and to assume for itself maximum liability for
expenses and damages in connection with claims against such directors, officers
and agents in connection with their service to the Company and its
subsidiaries, and has further concluded that the failure to provide such
contractual indemnification could result in great harm to the Company and its
subsidiaries and the Company’s stockholders.

 

E.             Section 145 of the General
Corporation Law of Delaware, under which the Company is organized (“Section 145”),
empowers the Company to indemnify its directors, officers, employees and agents
by agreement and to indemnify persons who serve, at the request of the Company,
as the directors, officers, employees or agents of other corporations or
enterprises, and expressly provides that the indemnification provided by Section 145
is not exclusive.

 

F.             The Company’s Bylaws requires,
subject to the provisions therein, that it indemnify its directors, officers
and legal representatives to the fullest extent authorized by the General
Corporation Law of Delaware.

 

G.            The Company desires and has
requested the Indemnitee to serve as a director, officer or agent of the
Company and/or one or more subsidiaries of the Company free from undue concern
for claims for damages arising out of or related to such services to the
Company and/or one or more subsidiaries of the Company.

 

 

H.            Indemnitee is willing to serve, or
to continue to serve, the Company and/or one or more subsidiaries of the
Company, provided that he or she is furnished the
indemnity provided for in this Agreement.

 

Agreement

 

The
Company and Indemnitee, intending to be legally bound, agree as follows:

 

1.             Definitions.

 

(a)           Agent.  For the purposes of this Agreement, “agent”
of the Company means any person who is the legal representative, is or was a
director, officer or employee of the Company or is or was serving at the
request of the Company as a director, officer or employee of another
corporation or of a partnership, joint venture, trust or other enterprise,
including service with respect to employee benefit plans.

 

(b)           Expenses.  For purposes of this Agreement, “expenses”
include all out-of-pocket costs of any type or nature whatsoever (including,
without limitation, all attorneys’ fees and related disbursements), actually
and reasonably incurred by the Indemnitee in connection with either the
investigation, defense or appeal of a proceeding or establishing or enforcing a
right to indemnification under this Agreement or Section 145 or otherwise;
provided, however,
that “expenses” shall not include any judgments, fines, ERISA excise taxes or
penalties, or amounts paid in settlement of a proceeding.

 

(c)           Proceeding.  For the purposes of this Agreement, “proceeding”
means any threatened, pending, or completed action, suit or other proceeding,
whether civil, criminal, administrative, or investigative.

 

(d)           Subsidiary.  For purposes of this Agreement, “subsidiary”
means any corporation of which more than 50% of the outstanding voting
securities is owned directly or indirectly by the Company, by the Company and
one or more other subsidiaries, or by one or more other subsidiaries.

 

2.             Agreement
to Serve.  In consideration of the
Company’s covenants and commitments hereunder, the Indemnitee agrees to serve
as agent of the Company, so long as he or she is duly appointed or elected and
qualified in accordance with the applicable provisions of the Bylaws of the
Company or any subsidiary of the Company or until such time as he or she
tenders his or her resignation in writing (subject to any contractual
obligation under any other agreement or any obligation imposed by operation of
law); provided, however,
that nothing contained in this Agreement is intended to create any right to
continued employment by Indemnitee.

 

This
Agreement shall not be deemed an employment contract between the Company (or
any of its Subsidiaries) and the Indemnitee. 
The Indemnitee specifically acknowledges that with respect to the
Indemnitee’s service as an officer or key employee, such Indemnitee’s
employment with the Company (or any of its Subsidiaries), if any, is at will,
and Indemnitee may be discharged at any time for any reason, with or without
cause, except as may be otherwise provided in any written contract between the
Indemnitee and the Company (or any of its 

 

2

 

subsidiaries), other applicable formal severance
policies duly adopted by the Board of Directors of the Company or by the
Company’s Certificate of Incorporation, Bylaws, and the General Corporation Law
of Delaware.  The Indemnitee specifically
acknowledges that with respect to the Indemnitee’s service as a director, such
Indemnitee may be discharged from service at any time for any reason, with or
without cause, except as may be otherwise provided by the Company’s Certificate
of Incorporation, Bylaws and the General Corporation Law of Delaware.

 

3.             Liability
Insurance.

 

(a)           Maintenance of
D&O Insurance.  The Company
hereby covenants and agrees that, so long as the Indemnitee shall serve as an
agent of the Company and thereafter so long as the Indemnitee shall be subject
to any possible proceeding by reason of the fact that the Indemnitee was an
agent of the Company, the Company, subject to Section 3(c), shall promptly
obtain and maintain in full force and effect directors’ and officers’ liability
insurance (“D&O Insurance”) in reasonable amounts from established
and reputable insurers.

 

(b)           Rights and
Benefits.  In all policies of D&O
Insurance, the Indemnitee shall be named as an insured in such a manner as to
provide the Indemnitee the same rights and benefits as are accorded to the most
favorably insured of the Company’s directors, if the Indemnitee is a director;
or of the Company’s officers, if the Indemnitee is not a director of the
Company but is an officer; or of the Company’s key employees, if the Indemnitee
is not a director or officer but is a key employee.

 

(c)           Limitation on
Required Maintenance of D&O Insurance. 
Notwithstanding the foregoing, the Company shall have no obligation to
obtain or maintain D&O Insurance if the Company determines in good faith
that such insurance is not reasonably available, the premium costs for such
insurance are disproportionate to the amount of coverage provided, the coverage
provided by such insurance is limited by exclusions so as to provide an
insufficient benefit, or the Indemnitee is covered by similar insurance
maintained by a subsidiary of the Company.

 

4.             Mandatory
Indemnification.  Subject to Section 9,
the Company shall indemnify the Indemnitee as follows:

 

(a)           Third Party
Actions.  If the Indemnitee is a
person who was or is a party or is threatened to be made a party to any
proceeding (other than an action by or in the right of the Company) by reason
of the fact that he is or was an agent of the Company, or by reason of anything
done or not done by him in any such capacity, the Company shall indemnify the
Indemnitee against any and all expenses and liabilities of any type whatsoever
(including, but not limited to, judgments, fines, ERISA excise taxes and
penalties, and amounts paid in settlement) actually and reasonably incurred by
him in connection with the investigation, defense, settlement or appeal of such
proceeding, provided the Indemnitee acted in good
faith and in a manner he reasonably believed to be in or not opposed to the
best interests of the Company and its stockholders, and, with respect to any
criminal action or proceeding, had no reasonable cause to believe the
Indemnitee’s conduct was unlawful.

 

(b)           Derivative
Actions.  If the Indemnitee is a
person who was or is a party or is threatened to be made a party to any
proceeding by or in the right of the Company by reason of 

 

3

 

the fact that he
is or was an agent of the Company, or by reason of anything done or not done by
him in any such capacity, the Company shall indemnify the Indemnitee against
all expenses actually and reasonably incurred by him in connection with the
investigation, defense, settlement, or appeal of such proceeding, provided the Indemnitee acted in good faith and in a manner
he reasonably believed to be in or not opposed to the best interests of the
Company and its stockholders; except that no indemnification under this Section 4(b) shall
be made in respect to any claim, issue or matter as to which such person shall
have been finally adjudged to be liable to the Company by a court of competent
jurisdiction unless and only to the extent that the court in which such
proceeding was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case,
such person is fairly and reasonably entitled to indemnity for such amounts
which the court shall deem proper, provided, further, that no indemnification
under Section 4(b) shall be made in respect to any claim, issue or
matter if it has been finally adjudged that the Indemnitee is liable to the
Company for an accounting of profits made from the purchase or sale by the
Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of
the Securities Exchange Action of 1934, as amended, the rules and
regulations promulgated thereunder or similar provisions of any federal, state
or local statutory law.

 

(c)           Actions where
Indemnitee is Deceased.  If the
Indemnitee is a person who was or is a party or is threatened to be made a
party to any proceeding by reason of the fact that he or she is or was an agent
of the Company, or by reason of anything done or not done by him or her in any
such capacity, and if prior to, during the pendency of or after completion of
such proceeding Indemnitee becomes deceased, the Company shall indemnify the
Indemnitee’s heirs, executors and administrators against any and all expenses
and liabilities of any type whatsoever (including, but not limited to,
judgments, fines, ERISA excise taxes and penalties, and amounts paid in
settlement) actually and reasonably incurred to the extent Indemnitee would
have been entitled to indemnification pursuant to Sections 4(a) or 4(b) were
Indemnitee still alive.

 

(d)           Limitations.  Notwithstanding the foregoing, the Company
shall not be obligated to indemnify the Indemnitee for expenses or liabilities
of any type whatsoever (including, but not limited to, judgments, fines, ERISA
excise taxes and penalties, and amounts paid in settlement) (i) for which
payment is actually made to or on behalf of Indemnitee under a valid and
collectible insurance policy of D&O Insurance, or under a valid and
enforceable indemnity clause, by-law or agreement, (ii) to the extent that
the Company has advanced expense in accordance with Section 6 or (iii) if
the Indemnitee would not be permitted to be indemnified under applicable law.

 

5.             Partial
Indemnification.  If the Indemnitee
is entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of any expenses or liabilities of any type
whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes
and penalties, and amounts paid in settlement) incurred by him or her in the
investigation, defense, settlement or appeal of a proceeding, but not entitled,
however, to indemnification for all of the total amount hereof, the Company
shall nevertheless indemnify the Indemnitee for such total amount except as to
the portion hereof to which the Indemnitee is not entitled.

 

6.             Mandatory
Advancement of Expenses.  Subject to Section 9(a),
the Company shall advance all expenses incurred by the Indemnitee in connection
with the investigation, 

 

4

 

defense,
settlement or appeal of any proceeding to which the Indemnitee is a party or is
threatened to be made a party by reason of the fact that the Indemnitee is or
was an agent of the Company.  Indemnitee
hereby undertakes to repay such amounts advanced only if, and to the extent
that, it shall be determined ultimately that the Indemnitee is not entitled to
be indemnified by the Company as authorized hereby.  The advances to be made under this Agreement
shall be paid by the Company to the Indemnitee within twenty (20) days
following delivery of a written request therefor and documentation evidencing
such expenses by the Indemnitee to the Company. 
In the event that the Company fails to pay expenses as incurred by the
Indemnitee as required by this paragraph, Indemnitee may seek mandatory
injunctive relief from any court having jurisdiction to require the Company to
pay expenses as set forth in this paragraph. 
If Indemnitee seeks mandatory injunctive relief pursuant to this
paragraph, it shall not be a defense to enforcement of the Company’s
obligations set forth in this paragraph that Indemnitee has an adequate remedy
at law for damages.

 

7.             Notice
and Other Indemnification Procedures.

 

(a)           Notice by
Indemnitee.  Promptly after receipt
by the Indemnitee of notice of the commencement of or the threat of
commencement of any proceeding, the Indemnitee shall, if the Indemnitee
believes that indemnification with respect thereto may be sought from the
Company under this Agreement, notify the Company of the commencement or threat
of commencement thereof.

 

(b)           Notice by Company.  If, at the time of the receipt of a notice of
the commencement of a proceeding pursuant to Section 7(a), the Company has
D&O Insurance in effect, the Company shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the
procedures set forth in the respective policies.  The Company shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of the
Indemnitee, all amounts payable as a result of such proceeding in accordance
with the terms of such policies.

 

(c)           Defense.  In the event the Company reasonably
determines that it may be obligated to pay the expenses of any proceeding
against the Indemnitee, the Company shall be entitled to assume the defense of
such proceeding, with counsel approved by the Indemnitee, upon the delivery to
the Indemnitee of written notice of its election so to do.  After delivery of such notice, approval of
such counsel by the Indemnitee and the retention of such counsel by the
Company, the Company will not be liable to the Indemnitee under this Agreement
for any fees of counsel subsequently incurred by the Indemnitee with respect to
the same proceeding, provided that (i) the
Indemnitee shall have the right to employ his or her counsel in any such
proceeding at the Indemnitee’s expense; and (ii) if (A) the
employment of counsel by the Indemnitee has been previously authorized by the
Company, (B) the Indemnitee shall have reasonably concluded that there may
be a conflict of interest between the Company and the Indemnitee in the conduct
of any such defense, or (C) the Company shall not, in fact, have employed
counsel to assume the defense of such proceeding in a timely manner, then the
fees and expenses of Indemnitee’s counsel shall be at the expense of the
Company.

 

5

 

8.             Determination
of Right to Indemnification.

 

(a)           Successful
Defense.  To the extent the
Indemnitee has been successful on the merits or otherwise in defense of any
proceeding (including, without limitation, an action by or in the right of the
Company) to which the Indemnitee was a party by reason of the fact that he is
or was an agent of the Company at any time, the Company shall indemnify the
Indemnitee against all expenses of any type whatsoever actually and reasonably
incurred by him or her in connection with the investigation, defense or appeal
of such proceeding.  If the Indemnitee is
not wholly successful in defense of such proceeding but is successful, on the
merits or otherwise, as to one or more but less than all claims, issues or
matters in such proceeding, the Company shall indemnify the Indemnitee against
all expenses actually and reasonably incurred by the Indemnitee in connection
with each successfully resolved claim, issue or matter.

 

(b)           Other Situations.  In the event that Section 8(a) is
inapplicable, the Company shall also indemnify the Indemnitee in accordance
with the terms of this Agreement unless, and except to the extent that, the
Company shall prove by clear and convincing evidence in a forum listed in Section 8(c) that
the Indemnitee has not met the applicable standard of conduct required to
entitle the Indemnitee to such indemnification.

 

(c)           Selection of
Forum.  The Indemnitee shall be
entitled to select the forum in which the validity of the Company’s claim under
Section 8(b) that the Indemnitee is not entitled to indemnification
will be heard from among the following:

 

(i)            A quorum of the
Board consisting of all directors who are not parties to the proceeding for
which indemnification is being sought;

 

(ii)           Legal counsel
selected by the Indemnitee, and reasonably approved by the Board, which counsel
shall make such determination in a written opinion; or

 

(iii)          A panel of three
arbitrators, one of whom is selected by the Company, another of whom is
selected by the Indemnitee and the last of whom is selected by the first two
arbitrators so selected.

 

(d)           Submission to
Forum.  As soon as practicable, and
in no event later than thirty (30) days after written notice of the Indemnitee’s
choice of forum pursuant to Section 8(c), the Company shall, at its own
expense, submit to the selected forum in such manner as the Indemnitee or the
Indemnitee’s counsel may reasonably request, its claim that the Indemnitee is
not entitled to indemnification; and the Company shall act in the utmost good
faith to assure the Indemnitee a complete opportunity to defend against such
claim.

 

(e)           Application to
Court of Chancery.  Notwithstanding a
determination by any forum listed in Section 8(c) that Indemnitee is
not entitled to indemnification with respect to a specific proceeding, the
Indemnitee shall have the right to apply to the Court of Chancery of Delaware,
the court in which that proceeding is or was pending or any other court of
competent jurisdiction, for the purpose of enforcing the Indemnitee’s right to
indemnification pursuant to this Agreement.

 

6

 

(f)            Expenses Related
to this Agreement.  Notwithstanding
any other provision in this Agreement to the contrary, the Company shall
indemnify the Indemnitee against all expenses incurred by the Indemnitee in connection
with any hearing or proceeding under this Section 8 involving the
Indemnitee and against all expenses incurred by the Indemnitee in connection
with any other proceeding between the Company and the Indemnitee involving the
interpretation or enforcement of the rights of the Indemnitee under this
Agreement unless a court of competent jurisdiction finds that any of the claims
and/or defenses of the Indemnitee in any such proceeding was frivolous or made
in bad faith.

 

9.             Exceptions.  Any other provision in this Agreement to the
contrary notwithstanding, the Company shall not be obligated pursuant to the
terms of this Agreement:

 

(a)           Claims Initiated
by Indemnitee.  To indemnify or
advance expenses to the Indemnitee with respect to proceedings or claims initiated
or brought voluntarily by the Indemnitee and not by way of defense, unless (i) such
indemnification is expressly required to be made by law, (ii) the
proceeding was authorized by the Board, (iii) such indemnification is
provided by the Company, in its sole discretion, pursuant to the powers vested
in the Company under the General Corporation Law of Delaware or (iv) subject
to Section 9(b), the proceeding is brought to establish or enforce a right
to indemnification under this Agreement or any other statute or law or
otherwise as required under Section 145;

 

(b)           Lack of Good
Faith.  To indemnify the Indemnitee
for any expenses incurred by the Indemnitee with respect to any proceeding
instituted by the Indemnitee to enforce or interpret this Agreement, if a court
of competent jurisdiction determines that each of the material assertions made
by the Indemnitee in such proceeding was not made in good faith or was
frivolous; or

 

(c)           Unauthorized
Settlements.  To indemnify the
Indemnitee under this Agreement for any amounts paid in settlement of a
proceeding unless the Company consents to such settlement, which consent shall
not be unreasonably withheld.

 

10.           Non-exclusivity.  The provisions for indemnification and
advancement of expenses set forth in this Agreement shall not be deemed
exclusive of any other rights which the Indemnitee may have under any provision
of law, the Company’s Certificate of Incorporation or Bylaws, the vote of the
Company’s stockholders or disinterested directors, other agreements, or
otherwise, both as to action in his or her official capacity and to action in
another capacity as a result of serving his or her position as an agent of the
Company, and the Indemnitee’s rights under this Agreement continue for 10 years
after the Indemnitee has ceased acting as an agent of the Company and shall
inure to the benefit of the heirs, executors and administrators of the
Indemnitee.

 

11.           Enforcement.  Any right to indemnification or advances
granted by this Agreement to Indemnitee shall be enforceable by or on behalf of
Indemnitee in any court of competent jurisdiction if (i) the claim for
indemnification or advances is denied, in whole or in part, or (ii) no
disposition of such claim is made within ninety (90) days of request
therefor.  Indemnitee, in such
enforcement action, if successful in whole or in part, shall be entitled to be
paid also the expense of prosecuting the Indemnitee’s claim.  It shall be a defense to any action 

 

7

 

for which a claim
for indemnification is made under this Agreement (other than an action brought
to enforce a claim for expenses pursuant to Section 6, provided that the required undertaking has been tendered to
the Company) that Indemnitee is not entitled to indemnification because of the
limitations set forth in Sections 4 and 9. 
Neither the failure of the Company (including its Board of Directors or
its stockholders) to have made a determination prior to the commencement of
such enforcement action that indemnification of Indemnitee is proper in the
circumstances, nor an actual determination by the Company (including its Board
of Directors or its stockholders) that such indemnification is improper, shall
be a defense to the action or create a presumption that Indemnitee is not
entitled to indemnification under this Agreement or otherwise.

 

12.           Subrogation.  In the event the Company is obligated to make
a payment under this Agreement, the Company shall be subrogated to the extent
of such payment to all of the rights of recovery under an insurance policy or
any other indemnity agreement covering the Indemnitee, who shall execute all
documents required and shall do all acts that may be necessary to secure such
rights and to enable the Company effectively to bring suit to enforce such
rights.

 

13.           Survival
of Rights.

 

(a)           All agreements and
obligations of the Company contained in this Agreement shall continue during
the period Indemnitee is an agent of the Company and shall continue thereafter
for 10 years so long as Indemnitee shall be subject to any possible claim or
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, arbitrational, administrative or investigative, by reason of the fact
that Indemnitee was serving in the capacity referred to in this Agreement.

 

(b)           The Company shall
require any successor to the Company (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
or assets of the Company, expressly to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform if no such succession had taken place.

 

14.           Interpretation
of Agreement.  It is understood that
the Company and Indemnitee intend this Agreement to be interpreted and enforced
so as to provide indemnification to the Indemnitee to the fullest extent
permitted by law including those circumstances in which indemnification would
otherwise be discretionary.

 

15.           Severability.  If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever, (i) the validity, legality and enforceability of the remaining
provisions of the Agreement (including without limitation, all portions of any
paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby, and (ii) to
the fullest extent possible, the provisions of this Agreement (including,
without limitation, all portions of any paragraph of this Agreement containing
any such provision held to be invalid, illegal or unenforceable, that are not
themselves invalid, illegal or unenforceable) shall be construed so as to give
effect to the intent manifested by the provision held invalid, illegal or
unenforceable and to give effect to Section 14.

 

8

 

16.           Modification
and Waiver.  No supplement,
modification or amendment of this Agreement shall be binding unless executed in
writing by both of the Company and Indemnitee. 
No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions of this Agreement (whether or
not similar) nor shall such waiver constitute a continuing waiver.

 

17.           Notices.  All notices and other communications
hereunder shall be in writing and shall be deemed given if properly addressed: (a) if
delivered personally or by commercial delivery service, on the day of delivery;
or (b) if delivered by registered or certified mail (return receipt
requested), or first class mail, three business days after mailing.  Notices shall be deemed to be properly
addressed to either party if addressed to the following addresses (or at such
other address for a party as shall be specified by like notice):

 

If to the Company :              Facet
Biotech Corporation

1400 Seaport Boulevard

Redwood City, CA 
94063

Attention: 
General Counsel

 

If to Indemnitee:                   To
the address set forth on the signature page to this Agreement

 

18.           Governing
Law.  This Agreement shall be
governed exclusively by and construed according to the laws of the State of
Delaware as applied to contracts between Delaware residents entered into and to
be performed entirely within Delaware.

 

The
Company and Indemnitee have entered into this Agreement effective as of the
date first above written.

 

	
  Facet
  Biotech Corporation  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Officer
  or Director’s name]

  
	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  
	
  Ttile:

  	
   

  	
   

  	
   

  	
   

  
							

 

9

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