Document:

FY2002 10K Exhibit 10.45

Exhibit 10.45

PROTEIN DESIGN LABS, INC.

                  NOTICE OF GRANT OF STOCK OPTION

 (1999 Stock Option Plan)

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

	
Date of Option Grant:
	
_________________

	
Number of Option Shares:
	
_________________

	
Exercise Price:
	
$8.30

	
Initial Vesting Date:
	
The date one (1) year after October 24, 2002.

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

	
Type of Option:
	
Stock Option (Nonstatutory)

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

	 	
Vested Ratio

	
	

	
Prior to Initial Vesting Date
	
0

	
	

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

1/4

	
	

	
Plus:
	 
	
	

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

1/48

Adjustments to the Vested Ratio:  The Company may adjust the
Vested Ratio to account for any periods of part-time employment by the
Optionee.

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

By their signatures below, the parties hereto agree that the Option is
governed by the terms and conditions of the Stock Option Agreement attached to
and made a part of this document.  The Optionee acknowledges receipt of a copy
of the Stock Option Agreement, represents that the Optionee is familiar with its
provisions, and hereby accepts the Option subject to all of its terms and
conditions.

	
PROTEIN DESIGN LABS, INC.
	
OPTIONEE

	
By: __________________________
	
__________________________

	
Its: _______________________
	 

	
34801 Campus Drive

               Fremont, California

	
Address  _________________________________

          _________________________________FY2002 10K Exhibit 10.46

Exhibit 10.46

October 24, 2002

 

 

Mr. Mark McDade

   7442 North Mercer Way

   Mercer Island, WA 98040

Dear Mark:

On behalf of Protein Design Labs, Inc., subject to approval by the PDL Board
of Directors, I am pleased to extend to you an offer for the position of Chief
Executive Officer, reporting to the Board of Directors.  Also, subject to
approval of the PDL Board of Directors, you will be elected to the PDL Board of
Directors effective as of the same day as your election as Chief Executive
Officer.

The monthly salary for this position is $41,666.67 ($500,000.00/annually).
We offer our employees an attractive benefits package, including a comprehensive
medical policy and dental plan, as well as life insurance coverage.

You will be eligible for a cash bonus of up to 30% of your base salary.  You
and the Board of Directors will agree upon company and individual goals upon
which the bonus will be based.  These goals will be determined no later than
February 28, 2003, including approval of the goals by the PDL Board of
Directors.

PDL agrees to provide reimbursement for reasonable expenses incurred during a
five-day house-hunting trip for you and your wife to the Bay area.  The trip
will include lodging, meals, and a rental car for five days. These arrangements
will be made by PDL.

PDL is prepared to offer you reasonable relocation assistance including the
movement of your household goods (packing, shipping and unloading of household
goods), and the shipment of your automobiles (if you are not driving one), from
Washington to the Bay Area,

PDL will also pay the airfare for you and your family's final trip to
the Bay Area. If you prefer to drive, PDL will provide you with a stipend to
cover gas, hotel, and food that would be equivalent to the cost of the plane
tickets. Arrangements will be made by PDL.

To assist with temporary housing for you in the Bay Area until your family
moves to the Bay Area, PDL is prepared to offer you an allowance for housing and
flights to and from Washington covering actual expenses up to $7,000.00 per
month.  This allowance will continue until you have purchased and moved into a
home in the Bay Area, but no longer than the end of 2003.  The reimbursed amount
will be "grossed up" to cover your U.S. federal and state income
taxes.

If you voluntarily terminate your employment with PDL within the first year
of your employment, you must repay the amount you received for relocation in
full, within fifteen (15) days of your leaving the Company. 

PDL agrees to provide you a relocation bonus of $500,000.00 toward the
purchase of a home in the Bay Area to be paid upon closing of your purchase of
that home.  The bonus must be used no later than December 31, 2003.  If your
employment with PDL is voluntarily terminated by you or terminated for
"Cause" (as defined in PDL's Executive Retention and Severance Plan)
prior to the fourth year anniversary of the payment of the bonus, it will be
immediately due and payable to PDL as follows:

	
Termination prior to the first year anniversary
	
100% due and payable  

	
Termination prior to the second year anniversary 
	
  75% due and payable

	
Termination prior to the third year anniversary
	
  50% due and payable

	
Termination prior to the fourth year anniversary
	
  25% due and payable

	
Termination following the fourth year anniversary
	
    0% due and payable

In addition, PDL is offering you a hiring bonus of $100,000.00 payable and
included with your first paycheck from PDL.  If your employment with PDL is
terminated voluntarily by you or terminated for "Cause" (as defined in
PDL's Executive Retention and Severance Plan) prior to your second anniversary
with PDL, the entire $100,000.00 will be immediately due and payable to PDL.

Also, subject to approval by the PDL Board of Directors, you will be a
participant in PDL's Executive Retention and Severance Plan (ERSP), which
provides for certain benefits in the event of a "Change in Control" of
PDL, as defined in the ERSP.

Finally, in addition to our salary and benefits packages, I am pleased to
offer to you options to purchase 900,000 shares of Protein Design Labs Common
Stock under a PDL stock option plan (the "Options").  The Options will
vest over four years, with one-fourth of the Options vesting after one year of
employment and the remainder vesting in equal monthly increments over the
remaining three years.  This offer is subject to the approval of PDL's Board of
Directors and your execution of our standard Stock Option Agreement.  The
exercise price will be equal to the fair market value of the stock at the close
of the market on the date your stock option grant is approved by PDL's Board of
Directors. 

In the event that your employment is terminated by PDL without Cause (as
defined in the ERSP) and if you execute and deliver to the Company, within
thirty (30) days following such termination, a general release of all known and
unknown claims against the Company existing as of the date of execution of the
release, in a form reasonably satisfactory to the Company (which release shall
also obligate you to refrain from soliciting employees, contractors, vendors,
strategic partners, and customers to terminate their relationships with the
Company), you will be entitled to (x) salary and bonus continuation at the same
level as the most recently awarded bonus or at the maximum bonus rate if such
termination occurs prior to your first bonus, but excluding other employment
benefits, for one year or until you accept a full time position with
another company, whichever occurs first, from the date of such termination, less
standard withholdings and deductions; and (y) if such termination occurs prior
to the end of your first year of employment, then the vesting of one-fourth of
the Options (i.e., options to purchase 225,000 shares) will be accelerated as of
the date of such termination.  

For purposes of federal immigration law, you will be required to provide PDL
documentary evidence of your identity and eligibility for employment in the
United States.  Such documentation must be provided to us within three (3)
business days of your date of hire.

As a Protein Design Labs employee, you are free to resign at any time, just
as Protein Design Labs is free to terminate your employment at any time, with or
without cause.

To indicate your acceptance of our offer, please sign and date one copy of
this letter in the space provided below and return it to Fran Charlson, in the
enclosed envelope by the date indicated below.  This letter, along with an
agreement relating to proprietary rights between you and PDL, sets forth the
terms of your employment with PDL and supersedes any prior representations or
agreements, whether written or oral.  This letter may not be modified or amended
except by a written agreement, signed by PDL and by you.

We are very excited at the prospect of your joining Protein Design Labs as a
key contributor. This offer will remain open until October 25, 2002, at which
time it will expire if not previously accepted.  A start date will be determined
by October 25, 2002, as well.

Sincerely,

	

__________________________________

Douglas O. Ebersole

Chief Executive Officer

	

__________________________________

Mark McDade

 

 

Date: October 24, 2002

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