Document:

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                                                                   EXHIBIT 10.14

                              EMPLOYMENT AGREEMENT

                  AGREEMENT made as of June 28, 2001, between TransWestern
Publishing Company, LLC, a Delaware limited liability company (the "Company"),
TransWestern Communications Company, Inc., a Delaware corporation ("TCC"), and
Ita Shea-Oglesby ("Executive").

                  In consideration of the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

                  1. Employment. The Company shall employ Executive, and
Executive accepts employment with the Company, upon the terms and conditions set
forth in this Agreement for the period beginning on the date hereof and ending
as provided in paragraph 4 hereof (the "Employment Period").

                  2. Position and Duties.

                  (a) During the Employment Period, Executive shall serve as an
Executive Vice President of the Company and shall have the normal duties,
responsibilities and authority of an Executive Vice President of the Company,
subject to the ultimate authority of the Board of Directors of TCC (the
"Board").

                  (b) Executive shall report to the Board and shall devote her
reasonable efforts to the business and affairs of the Company and its
Affiliates. Executive shall perform her duties and responsibilities to the best
of her abilities in a diligent, trustworthy, businesslike and efficient manner.

                  (c) For purposes of this Agreement, "Affiliate" shall mean any
corporation, limited partnership, general partnership or limited liability
company controlling, controlled by or under common control with the Company.

                  3. Compensation.

                  (a) Base Salary. As compensation for Executive's services
during Executive's employment hereunder, the Company will pay Executive, so long
as Executive's employment hereunder continues, annual base salary of $145,000
through December 31, 2001 and, effective January 1, 2002, and on each
anniversary thereafter such base salary will be increased in accordance with the
recommendation of the Chief Executive Officer of the Company, subject to
approval by the Board. The amount of such salary as adjusted in any year is
referred to herein as the "Base Salary." The Base Salary will be payable in
installments at such regular intervals as the Company at the time is using for
the payment of salaries.

                  (b) Bonus. Each year during the Employment Period Executive
will be entitled to an annual bonus of up to 100% of the Base Salary based on
achievement of annually budgeted
<PAGE>   2
EBITDA and annually targeted sales turnover, in each case as approved by the
Board. As used herein, EBITDA means, for any period, the net income of the
Company for any such period plus the amount deducted (or in the case of
extraordinary gains, minus any amount added) in the computation thereof for (i)
all federal, state and local income taxes, (ii) interest expense, (iii) any
extraordinary gains or losses, (iv) depreciation and (v) amortization of
goodwill and other intangibles determined in accordance with generally accepted
accounting principles consistently applied. For purposes of this Agreement,
EBITDA will be determined, after deduction of any bonus payments paid or payable
with respect to such period, from the audited financial statements of the
Company and the components of EBITDA contained in the financial statements will
be conclusive and binding upon the parties.

                  (c) Benefits. During the Employment Period, Executive shall be
entitled to receive insurance benefits and fringe benefits that are
substantially similar to those provided to Executive by the Company as of the
date hereof, including participation in the Company's long-term disability
program, and shall be entitled to participate in all of the Company's employee
benefit programs for which senior executive employees of the Company are
generally eligible.

                  4. Term.

                  (a) Unless renewed by the mutual agreement of the Company and
Executive, the Employment Period shall end on the third anniversary of the date
of this Agreement; provided that (i) the Employment Period shall terminate prior
to such date upon Executive's resignation, death or permanent disability or
incapacity (as determined by the Board in its good faith judgment) and (ii) the
Employment Period may be terminated by the Company at any time prior to such
date for Cause (as defined below) or without Cause.

                  (b) If immediately after the third anniversary of the date of
this Agreement Executive ceases to be employed by the Company due to (i) the
Company's failure to renew Executive's employment without Cause or (ii)
Executive's refusal to renew her employment with Good Reason, Executive shall be
entitled to receive her Base Salary (as in effect on such third anniversary)
payable on the Company's regular payroll dates for a period of one year after
such termination, so long as Executive has not breached the provisions of
paragraphs 5, 6 and 7 hereof.

                  (c) If the Employment Period is terminated by the Company
without Cause or by Executive with Good Reason or due to Executive's death or
permanent disability or incapacity prior to the third anniversary of the date of
this Agreement, Executive or her estate, as the case may be, shall be entitled
to receive her Base Salary (as in effect on the date of such termination)
payable on the Company's regular payroll dates for a period of one year after
such termination, so long as Executive has not breached the provisions of
paragraphs 5, 6 and 7 hereof. For purposes of this Agreement, "Good Reason"
shall mean (i) a reduction in Executive's Base Salary by more than 20% of the
Base Salary, (ii) any willful action by the Company that is intentionally
inconsistent with the terms of this Agreement or Executive's Executive
Agreement, dated as of the date hereof, between Executive and the Company or
(iii) any material reduction by General Partner or the Company in the powers,
duties or responsibilities of which Executive was entitled to exercise as of the
date of this Agreement (except such reduction which is the result of Executive's
termination for Cause).

                                      -2-
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                  (d) If the Employment Period is terminated for any other
reason, including voluntary resignation or termination by the Company for Cause,
Executive shall only be entitled to receive her Base Salary through the date of
termination.

                  (e) All of Executive's rights to fringe benefits will continue
for a period of one year after termination, provided such termination is without
Cause by the Company or with Good Reason by Executive. Bonuses hereunder (if
any) accruing after the termination of the Employment Period shall cease upon
such termination.

                  (f) For purposes of this Agreement, "Cause" shall mean (i) the
commission of a felony or a crime involving moral turpitude or the commission of
any other act involving dishonesty, disloyalty or fraud with respect to the
Company or any of its Affiliates, (ii) conduct tending to bring the Company or
any of its Affiliates into substantial public disgrace or disrepute, (iii)
substantial and repeated failure to perform duties as reasonably directed by the
Board, (iv) gross negligence or willful misconduct with respect to the Company
or any of its Affiliates or (v) any other material breach of this Agreement
which is not cured within 15 days after written notice thereof to Executive.

                  5. Confidential Information. The Executive acknowledges that
the information, observations and data obtained by him while employed by the
Company concerning the business or affairs of the Company or any Affiliate
("Confidential Information") are the property of the Company or such Affiliate.
Therefore, Executive agrees that she shall not disclose to any unauthorized
person or use for her own account any Confidential Information without the prior
written consent of the Board, unless and to the extent that the aforementioned
matters become generally known to and available for use by the public other than
as a result of Executive's acts or omissions to act or required by law to be
disclosed. Executive shall deliver to the Company at the termination of the
Employment Period, or at any other time the Company may request, all memoranda,
notes, plans, records, reports, computer tapes and software and other documents
and data (and copies thereof) relating to the Confidential Information, Work
Product (as defined in Section 6 hereof) or the business of the Company or any
Affiliate which she may then possess or have under her control.

                  6. Inventions and Patents. Executive agrees that all
inventions, innovations, improvements, developments, methods, designs, analyses,
drawings, reports, and all similar or related information which relate to the
Company's or any of its Affiliates' actual or anticipated business, research and
development or existing or future products or services and which are conceived,
developed or made by Executive while employed by the Company or any Affiliate
("Work Product") belong to the Company or such Affiliate. Executive will
promptly disclose such Work Product to the Board and perform all actions
reasonably requested by the Board (whether during or after the Employment
Period) to establish and confirm such ownership (including, without limitation,
assignments, consents, powers of attorney and other instruments).

                  7. Non-Compete, Non-Solicitation.

                                      -3-
<PAGE>   4
                  (a) Executive acknowledges that in the course of her
employment with the Company she will become familiar with the Company's trade
secrets and with other confidential information concerning the Company and its
predecessors and that her services have been and will be of special, unique and
extraordinary value to the Company. Therefore, Executive agrees that, during the
Employment Period and for two years thereafter (the "Noncompete Period"), she
shall not directly or indirectly own, manage, control, participate in, consult
with, render services for, or in any manner engage in any yellow page directory
publishing business or any business competing for the same customers as the
businesses of the Company or its Affiliates as such businesses exist or are in
process on the date of the termination of Executive's employment within any
geographical area in which the Company or its Affiliates engage or plan to
engage in such businesses. Nothing herein shall prohibit Executive from (i)
being a passive owner of not more than 5% of the outstanding stock of any class
of any corporation, so long as Executive has no active participation in the
business of such corporation, (ii) becoming employed by a competitor; provided
that Executive is not directly or indirectly responsible for, or does not have
control over, the business of such competitor which directly competes with any
of the businesses of the Company or (iii) becoming an officer or director of any
entity (other than a competitor) not affiliated with the Company.

                  (b) During the Employment Period and for three years
thereafter, Executive shall not directly or indirectly through another entity
(i) induce or attempt to induce any employee of the Company or any Affiliate to
leave the employ of the Company or such Affiliate, or in any way interfere with
the relationship between the Company or any Affiliate and any employee thereof,
(ii) hire any person who was an employee of the Company or any Affiliate at any
time during the Employment Period, or (iii) induce or attempt to induce any
customer, supplier, licensee or other business relation of the Company or any
Affiliate to cease doing business with the Company or such Affiliate, or in any
way interfere with the relationship between any such customer, supplier,
licensee or business relation and the Company or any Affiliate.

                  (c) If, at the time of enforcement of this paragraph 7, a
court shall hold that the duration, scope or area restrictions stated herein are
unreasonable under circumstances then existing, the parties agree that the
maximum duration, scope or area reasonable under such circumstances shall be
substituted for the stated duration, scope or area and that the court shall be
allowed to revise the restrictions contained herein to cover the maximum period,
scope and area permitted by law.

                  (d) In the event of the breach or a threatened breach by
Executive of any of the provisions of this paragraph 7, the Company, in addition
and supplementary to other rights and remedies existing in its favor, may apply
to any court of law or equity of competent jurisdiction for specific performance
and/or injunctive or other relief in order to enforce or prevent any violations
of the provisions hereof (without posting a bond or other security).

                  8. Executive Representations. Executive hereby represents and
warrants to the Company that (i) the execution, delivery and performance of this
Agreement by Executive does not and will not conflict with, breach, violate or
cause a default under any contract, agreement, instrument, order, judgment or
decree to which Executive is a party or by which she is bound, (ii) Executive is
not a party to or bound by any employment agreement, noncompete agreement or
confidentiality agreement with any other person or entity and (iii) upon the
execution and delivery

                                      -4-
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of this Agreement by the Company, this Agreement shall be the valid and binding
obligation of Executive, enforceable in accordance with its terms.

                  9. Survival. Paragraphs 5, 6 and 7 shall survive and continue
in full force in accordance with their terms notwithstanding any termination of
the Employment Period.

                  10. Notices. Any notice provided for in this Agreement shall
be in writing and shall be either personally delivered, or mailed by first class
mail, return receipt requested, to the recipient at the address below indicated:

                  Notices to Executive:

                           Ita Shea-Oglesby
                           c/o TransWestern Publishing Company, LLC
                           8344 Clairemont Mesa Blvd.
                           San Diego, CA 92111

                  Notices to the Company or TCC:

                           TransWestern Publishing Company, L.P.
                           c/o Thomas H. Lee Company
                           75 State Street
                           Boston, MA  02109
                           Attention:       Scott A. Schoen
                                            C. Hunter Boll

                           with a copy to:

                           Kirkland & Ellis
                           200 East Randolph Drive
                           Chicago, Illinois  60601
                           Attention:       William S. Kirsch

or such other address or to the attention of such other person as the recipient
party shall have specified by prior written notice to the sending party. Any
notice under this Agreement will be deemed to have been given when so delivered
or mailed.

                  11. Severability. Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision, but this Agreement will be reformed, construed and enforced
in such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein.

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                  12. Complete Agreement. This Agreement, those documents
expressly referred to herein and other documents of even date herewith embody
the complete agreement and understanding among the parties and supersede and
preempt any prior understandings, agreements or representations by or among the
parties, written or oral, which may have related to the subject matter hereof in
any way.

                  13. Counterparts. This Agreement may be executed in separate
counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

                  14. Successors and Assigns. This Agreement is intended to bind
and inure to the benefit of and be enforceable by Executive, the Company and
their respective heirs, successors and assigns, except that Executive may not
assign her rights or delegate her obligations hereunder without the prior
written consent of the Company.

                  15. Choice of Law. This Agreement shall be governed by and
construed in accordance with the domestic laws of the State of California,
without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of California or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of
California.

                  16. Amendment and Waiver. The provisions of this Agreement may
be amended or waived only with the prior written consent of the Company and
Executive, and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement.

                                    * * * * *

                                      -6-
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                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date first written above.

                                     TRANSWESTERN PUBLISHING COMPANY, LLC

                                     By              /s/
                                        ----------------------------------------

                                     Its    Chief Executive Officer
                                         ---------------------------------------

                                     TRANSWESTERN COMMUNICATIONS COMPANY, INC.

                                     By              /s/
                                        ----------------------------------------

                                     Its    Chief Executive Officer
                                         ---------------------------------------

                                                     /s/
                                     -------------------------------------------
                                     Name:  Ita Shea-Oglesby

                    (SIGNATURE PAGE TO EMPLOYMENT AGREEMENT)NEITHER  THIS  CONVERTIBLE  NOTE  NOR THE UNDERLYING SHARES HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT").  THE HOLDER
(AS  DEFINED BELOW) MAY NOT TRANSFER THIS CONVERTIBLE NOTE, OR ANY SHARES ISSUED
PURSUANT  TO  ITS  CONVERSION  PROVISION,  UNLESS  (i)  THERE  IS  AN  EFFECTIVE
REGISTRATION  STATEMENT  COVERING  SUCH NOTE OR SUCH SHARES UNDER THE SECURITIES
ACT  AND  APPLICABLE  STATE  SECURITIES  LAWS, (ii) THE COMPANY FIRST RECEIVES A
LETTER  FROM  AN ATTORNEY, ACCEPTABLE TO THE COMPANY OR ITS AGENTS, STATING THAT
IN THE OPINION OF THE ATTORNEY THE PROPOSED TRANSFER IS EXEMPT FROM REGISTRATION
UNDER  THE  SECURITIES  ACT  AND  UNDER ALL APPLICABLE STATE SECURITIES LAWS, OR
(iii)  THE  TRANSFER  IS  MADE  PURSUANT  TO  RULE 144 UNDER THE SECURITIES ACT.

                                 EXELIXIS, INC.

                                5.75% CONVERTIBLE
                              NOTE DUE MAY 22, 2006

                                                 South San Francisco, California

FOR  VALUE  RECEIVED,  Exelixis,  Inc.,  a Delaware corporation (the "Company"),
hereby  promises  to  pay,  subject  to  the  conversion provisions in Section 6
herein,  to  Protein Design Labs, Inc., a Delaware corporation, or its permitted
transfers  and  assigns  (the  "Lender" or "Holder") the principal sum of THIRTY
MILLION  DOLLARS  ($30,000,000) plus interest plus enforcement costs (including,
but  not  limited  to,  reasonable  attorney  fees)  thereon  (collectively, the
"Obligations")  on  the  earlier  of  (i)  a "Change in Control" (as hereinafter
defined)  of  the  Company;  and  (ii) May 22, 2006 (such earlier date being the
"Maturity  Date").  A  "Change  in  Control"  of  the Company would occur if the
Company  sells, conveys or otherwise disposes of all or substantially all of its
property  or  business,  or merges or consolidates with any other corporation or
business entity (other than a wholly-owned subsidiary of the Company) or effects
any  other transaction or series of transactions in which (I) the members of the
Board  of  Directors  of  the  Company  prior  to  the  transaction or series of
transactions constituting the putative Change in Control event do not constitute
a  majority of the members of the Board of Directors of the enterprise following
completion  of  the  transaction  or  series  of  transactions  constituting the
putative  Change  in  Control  event  (and  in any event excluding from any such
calculation  any  members  of  the  Board  of  Directors  who  prior  to  such
transaction(s)  were  members  of  the  Board of both the Company and such other
company  or  entity); and (II) the stockholders of the Company immediately prior
thereto  own  less  than  a majority of the outstanding voting securities of the
Company  (or  its  successor  or  parent)  immediately  thereafter.

SECTION  1.  INTEREST.  Interest  on  the  outstanding principal amount shall be
cumulative,  accrue  at  the  rate of 5.75% per annum (or, if lower, the maximum
rate  permitted  by law), and be paid in cash annually in arrears from and after
the  date  hereof until and including the Maturity Date, unless this convertible
note  ("Note")  is converted pursuant to Section 6 hereof, in which case accrued
interest thereon (whether or not yet payable) shall be payable in cash to Lender
within  thirty (30) days of such date of conversion.  Any interest not paid when
due  shall accrue interest at a rate of 10% per annum (or, if lower, the maximum
rate  permitted  by  law)  and shall be treated as principal for the purposes of
Section  6  hereof  until  paid.

SECTION  2.  NOTE  PURCHASE  AGREEMENT.  This Note has been issued pursuant to a
Note  Purchase  Agreement  (the  "Note Purchase Agreement") dated as of the date
hereof by and among the Company and the Holder.  The Company shall keep or cause
to  be  kept  at its principal office appropriate records for the recordation of
the  name  and  address of the Holder, which address may be changed from time to
time effective ten (10) days after receipt of written notice of such change from
the  Holder.

SECTION  3.  DEFAULT.  The  occurrence  of  one  or more of the following events
shall  constitute  an  event  of  default  ("Event  of  Default"):

3.1     The Company shall fail to pay any of the Obligations when the same shall
have  become  due  and  payable.

3.2     The  Company  shall  fail  to  pay  any  of  its material debts or other
material  obligations (other than the Obligations under this Note) when the same
shall  have  become  due  and  payable.

3.3     The  entry of a decree or order by a court having jurisdiction adjudging
the  Company as bankrupt or insolvent, or approving as properly filed a petition
seeking  reorganization arrangement, adjustment, or composition of or in respect
of  the  Company  under  the Bankruptcy Act, as amended, or any other applicable
federal or state law, or appointing a receiver, liquidator, assignee, or trustee
of the Company, or any substantial part of its property, or ordering the winding
up  or  liquidation  of  its  affairs, and the continuance of any such decree or
order  unstayed  and  in  effect  for  a  period of sixty (60) consecutive days.

3.4     The  institution  by  the  Company  of  proceedings to be adjudicated as
bankrupt  or insolvent, or the consent by it to the institution of bankruptcy or
insolvency  proceedings  against it, or the filing by it of a petition or answer
or  consent  seeking  reorganization  or  relief  under  the  Bankruptcy Act, as
amended,  or  any other applicable federal or state law, or the consent by it to
the filing of any such petition or to the appointment of a receiver, liquidator,
assignee, or trustee of the Company, or of any substantial part of its property,
or  the  making  by  it  of  an  assignment for the benefit of creditors, or the
admission  by  it in writing of its inability to pay its debts generally as they
become  due,  or the taking of corporate action by the Company in furtherance of
any  such  action.

3.5     The  Company shall (a) be in breach of any material term or provision of
this Note; (b) be in breach under Section 12.2 of the Collaboration Agreement of
even  date  herewith  ("Collaboration  Agreement"),  which  breach  shall remain
uncured  as  provided  thereunder;  or  (c) be in breach of any material term or
provision  of  the  Note  Purchase  Agreement.

SECTION  4.  ACCELERATION.  Upon  an  Event  of  Default,  all Obligations shall
become  immediately  due  and payable to the Holder without presentment, demand,
protest  or  other  notice of any kind, all of which are expressly waived by the
Company.

SECTION  5.  PREPAYMENTS.  The  Company may not prepay the amounts due hereunder
prior  to  the  third  anniversary of this Note.  After the third anniversary of
this  Note,  and subject to Holder's right of conversion under Section 6 herein,
the Company shall have the right to prepay the amounts due hereunder in whole or
in  part;  provided  that  the  Company meets the following conditions:  (a) the
Company  shall  provide  the Holder not less than thirty (30) days prior written
notice of each prepayment ("Prepayment Notice"), specifying the principal amount
or  amounts to be prepaid and the prepayment date, and (b) the Company shall pay
on  the  prepayment  date  the  interest accrued to date on the principal amount
paid.  Any  Prepayment  Notice  shall be irrevocable and binding on the Company;
provided  any  Prepayment  Notice shall be deemed rescinded upon notice prior to
the  prepayment  date  that  Holder  intends  to exercise its conversion rights.

SECTION  6.  CONVERSION.

6.1     The Holder of this Note shall have the right, at the Holder's option, at
any  time  after  the  first  anniversary  of this Note, upon written notice, to
convert  all  of  the principal amounts outstanding from time to time under this
Note  into  the  Company's  common  stock  ("Common Stock") at a price per share
("Original  Conversion  Price") equal to the lower of: (x) $28.175; and (y) 110%
of  the  Fair  Market Value (as hereinafter defined) of a share of Common Stock.
"Fair Market Value" of a share of Common Stock means: (i) if the Company's stock
is traded on NASDAQ or a national securities exchange, the average closing price
for such share of Common Stock on such exchange for the twenty (20) trading days
immediately prior to the applicable date of conversion, or (ii) if the Company's
stock is not traded on NASDAQ or a national securities exchange, the fair market
value  of the Company's stock on the applicable date of conversion as determined
in  good  faith  by  the  Company's  Board  of  Directors.

6.2     In  the  event of an exercise of the Holder's rights of conversion under
this  Section 6, the Holder shall irrevocably be obligated to convert all of the
principal  amounts  then  outstanding  under this Note and the Company shall, as
promptly  as practicable after the surrender, but in no event more than fourteen
(14) days after the delivery of the Note for conversion, deliver to the Holder a
certificate  or  certificates  representing  the  number  of  fully  paid  and
nonassessable  shares  of Common Stock of the Company into which this Note shall
be  converted.

6.3     The  number  of  shares  of  Common  Stock  which  shall be delivered on
conversion  of  principal  under  this  Note  shall  be  an amount determined by
dividing  the principal under this Note by the Original Conversion Price (or the
Conversion  Price  (as  defined  below),  as  determined in accordance with this
Section  6),  and rounding the result down to the nearest share.  The conversion
price from time to time specified in Section 6.1 above may be adjusted from time
to time as provided in Section 9, and any adjusted conversion price shall be the
"Conversion  Price."

6.4     No  fractional  shares of stock or scrip shall be issued upon conversion
of this Note. Instead of any fractional shares of stock which would otherwise be
issuable  upon  conversion of this Note, the Company shall pay in cash an amount
equal  to  the fractional share multiplied by the Conversion Price in respect of
such  fractional  interest.

SECTION  7.  ASSIGNMENT,  EXCHANGE,  OR  LOSS  OF NOTE.  Subject to any transfer
restrictions herein, upon presentation and surrender of this Note to the Company
at  its  principal  office with a duly executed request for assignment and funds
sufficient  to  pay any transfer tax, the Company shall, without charge, execute
and  deliver  a new Note in the name of the assignee named in such instrument of
assignment  and  this  Note  shall  promptly  be  canceled.

SECTION  8.  RIGHTS  OF  THE  HOLDER.  The  Holder  shall  not, by virtue of the
provisions  in  this  Note,  be  entitled  to any rights of a stockholder in the
Company,  either  at  law  or  equity.

SECTION  9.  ADJUSTMENTS.   In  case  the  Company  shall,  after the receipt of
notice pursuant to Section 6.1 but prior to the conversion thereunder: (i) pay a
dividend  or  make  a distribution on the Common Stock payable in common shares,
(ii)  subdivide  the  outstanding  Common Stock into a greater number of shares,
(iii)  combine  the  outstanding Common Stock into a lesser number of shares, or
(iv)  issue  by  reclassification  of  the Common Stock any common shares of the
Company,  the Holder of this Note shall thereafter be entitled, upon conversion,
to  receive the number and kind of shares which, if this Note had been converted
immediately  prior  to  the happening of such event, the Holder would have owned
upon  such  conversion  and  been  entitled  to  receive  upon  such  dividend,
distribution,  subdivision,  combination,  or  reclassification. Such adjustment
shall  become  effective  on  the day next following (x) the record date of such
dividend  or  distribution  or  (y)  the  day  upon  which  such  subdivision,
combination,  or  reclassification  shall  become  effective.

SECTION  10.  RESTRICTIONS ON TRANSFER.  This Note has not been registered under
the  Securities  Act.  This  Note,  or  any right hereunder, may not be enforced
against the Company by any Holder, except the original Holder herein, (i) unless
there is an effective registration covering such note or underlying shares under
the Securities Act and applicable state securities laws, (ii) unless the Company
receives an opinion of an attorney acceptable to the Company or its agents, that
the  proposed  transfer  of  the  Note  complies  with  the  requirements of the
Securities  Act  and  any  relevant  state  securities  law, or (iii) unless the
transfer  is  made  pursuant  to  Rule  144  under  the  Securities  Act.

SECTION  11.  NOTICES.  All  notices  and  other  communications  required  or
permitted  under this Note shall be validly given, made, or served if in writing
and  delivered  personally, via overnight courier or sent by registered mail, to
the  Company  at  the  following  address:

     Exelixis,  Inc.
     170  Harbor  Way
     P.O.  Box  511
     South  San  Francisco,  California  94083-0511
     Attn:  Chief  Executive  Officer

With  a  copy  to:

     Exelixis,  Inc.
     170  Harbor  Way
     P.O.  Box  511
     South  San  Francisco,  California  94083-0511
     Attn:  General  Counsel

All notices and other communications required or permitted under this Note shall
be  validly  given,  made  or served if in writing and delivered personally, via
overnight  courier  or  sent  by registered mail, to the Holder at the following
address:
     Protein  Design  Labs,  Inc.
     34801  Campus  Drive
     Fremont,  California  94555-3606
     Attn:  Chief  Executive  Officer

With  a  copy  to:
     Protein  Design  Labs,  Inc.
     34801  Campus  Drive
     Fremont,  California  94555-3606
     Attn:  General  Counsel

Changes  to  a  party's address information provided herein shall be effected by
notice  to  the  other  party  as  provided  herein.

SECTION  12.  LAW  GOVERNING.  This  Note  shall be governed by and construed in
accordance  with  the  internal  laws  of  the  State  of  California.

SECTION  13.  TITLES  AND CAPTIONS; PRESUMPTION.  All section titles or captions
contained  in this Note are for convenience only and shall not be deemed part of
the  context  nor  affect  the  interpretation  of  this Note.  This Note or any
section  thereof  shall  not be construed against any party due to the fact that
said  Note  or  any  section  thereof  was  drafted  by  said  party.

SECTION  14.  COMPUTATION  OF TIME.  In computing any period of time pursuant to
this Note, the day of the act, event or default from which the designated period
of  time  begins to run shall be included, unless it is a Saturday, Sunday, or a
legal  holiday,  in  which  event  the period shall begin to run on the next day
which  is  not  a  Saturday, Sunday, or legal holiday, in which event the period
shall  run  until  the  end  of the next day thereafter which is not a Saturday,
Sunday,  or  legal  holiday.

SECTION  15.  FURTHER  ASSURANCES.  The  Company  shall  execute and deliver all
documents,  provide  all information and take or forbear from all such action as
may  be  necessary  or  appropriate  to  achieve  the  purposes  of  the  Note.

SECTION  16.  PARTIES  IN  INTEREST.  Nothing herein shall be construed to be to
the  benefit  of any third party, nor is it intended that any provision shall be
for  the  benefit  of  any  third  party.
IN  WITNESS  WHEREOF,  a  duly authorized officer of Exelixis, Inc. has executed
this  Note  to  be  effective  on  this  22nd  day  of  May  2001.

                                   EXELIXIS,  INC.

                                   _______________________
                                   George  A.  Scangos
                                   Chief  Executive  Officer

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