Document:

Patent License Agreement - Elan International Services Ltd.

 Exhibit 10.29 
 [        ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended. 
 CONFIDENTIAL PROVISIONS MARKED 
 EXHIBIT 10.29 (CONFIDENTIAL) 
 PATENT
LICENSE AGREEMENT 
 between 
 PROTEIN DESIGN LABS, INC. 
 and 
 ELAN INTERNATIONAL SERVICES LTD. 
 This Agreement (“Agreement”), effective as of April 24, 1998 (“Effective
Date”), is made by and between Protein Design Labs, Inc., a Delaware corporation having offices at 2375 Garcia Avenue, Mountain View, CA 94043 (hereinafter “PDL”) and Elan International Services Ltd., a Bermuda corporation and
wholly-owned subsidiary of Elan Corporation plc, having offices at 102 St. James Court, Flatts, Smiths FL04, Bermuda (hereinafter “ELAN”). 
 RECITALS 
 A. ELAN desires to license certain patents owned or controlled by PDL related to humanized antibodies directed
against the alpha subunit of the VLA-4 integrin. 
 B. The ELAN antibody directed
against the alpha subunit of the VLA-4 integrin, currently designated as Antegrin®, is in a Phase II U.S. clinical trial for treatment of acute flares associated with multiple sclerosis.

 C. PDL is willing to license to ELAN such patent rights under the terms and conditions of this Agreement. 
 AGREEMENT 
 NOW THEREFORE, in
consideration of the mutual covenants herein contained and intending to be legally bound, the parties agree as follows: 
 1. DEFINITIONS 

All references to Exhibits, Articles and Sections shall be references to Exhibits, Articles and Sections of this Agreement. In addition, except as
otherwise expressly provided herein, the following terms in this Agreement shall have the following meanings: 
 1.01
“Affiliate” shall mean, with respect to a party hereto, any corporate or other entity which, directly or indirectly, controls, is controlled by, or is under common control with such party where “control” means the ownership
of not less than 50% of the voting shares of a 

  

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corporation, or decision-making authority as to an unincorporated entity; provided that such entity shall be an Affiliate only so long as such control
exists. 
 1.02 “Combination Product(s)” shall mean any product containing both a pharmaceutically active agent or
ingredient which constitutes a Licensed Product and one or more other pharmaceutically active agents or ingredients which do not constitute Licensed Products. 
 1.03 “Licensed Product(s)” shall mean human therapeutic products of ELAN or
ELAN’s sublicensees that include an Antibody developed by ELAN binding to the alpha subunit of the VLA-4 integrin whose development, manufacture, import, use or sale would, but for a license under this Agreement, infringe a Valid Claim.
“Antibody” as used herein shall include, without limitation, monospecific and bispecific antibodies; less than full-length antibody forms such as Fv, Fab, and F(ab’)2; single-chain antibodies; and antibody conjugates bound to a toxin, label or other moiety. 
 1.04
“Net Sales” shall mean the aggregate gross revenues, whether in cash or in kind, derived by or payable from or on account of the sale of Licensed Products by ELAN, its Affiliates and its sublicensees to an independent third party not
an Affiliate or sublicensee of either ELAN or ELAN’s sublicensee, less amounts actually incurred or provided for (a) credits, allowances, discounts or rebates, if any, granted on account of price adjustments, recalls, rejection or return
of items previously sold, (b) excise and sales taxes, duties or other taxes imposed on and paid with respect to such sales (excluding income or franchise taxes of any kind) and (c) outer packing, freight and freight insurance costs. If
ELAN or any of its Affiliates or sublicensees receive any consideration (whether in cash or otherwise) in lieu of all or part of any royalties otherwise payable for any Licensed Product sold or otherwise transferred to an independent third party not
an Affiliate of the seller or transferor, the fair market value of such consideration on the date of such transfer as known to ELAN, or as reasonably estimated by ELAN if unknown, shall be included in the definition of Net Sales. For purposes of the
foregoing sentence, consideration paid to Elan from its Affiliates or sublicensees in the form of fees, milestones, collaboration payments or supply payments shall not be deemed consideration in lieu of royalties (i.e., not part of Net Sales)
hereunder if such consideration is not intended to and does not result in a reduction, credit, allowance, rebate or other offset against payment of any royalties otherwise payable for any Licensed Product sold or otherwise transferred to an
independent third party. 
 1.05 “PDL Patent Rights” means the patent applications or patents (as well as any foreign
counterparts thereto filed by PDL before or during the term of this Agreement) identified on Exhibit A, including any additions, continuations, continuations-in-part or divisions thereof or any substitute applications therefor;
any patents issued with respect to such patent applications, any reissues, extensions or patent term extensions of any such patents, and any confirmation patents or registration patents or patents of addition based on any such patents. 

1.06 “Valid Claim” means (a) any claim in any issued patent included in the PDL Patent Rights which would be infringed but for
the license granted under Section 2.01, and which claim has not been disclaimed or held unenforceable or invalid by a governmental agency or court of competent jurisdiction by a decision beyond right of review; and (b) any pending claim
under 

  

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PDL Patent Rights which, if granted, would be infringed but for the license granted under Section 2.01, and which pending claim would be a Valid Claim
if the pending claim were treated as granted. 
 2. LICENSE 
 2.01 License Grant. Subject to the terms and conditions of this Agreement, PDL hereby grants and ELAN hereby accepts a worldwide nonexclusive license under the PDL Patent Rights, including the right to grant
sublicenses in accordance with Section 2.02, to make, have made, use and sell Licensed Products. 
 2.02 Limitation on Sublicenses;
Notification. ELAN shall have the right to grant sublicenses of its rights with respect to the Licensed Product under Section 2.01 to its Affiliates, including for purposes of this Agreement, Axogen Limited (“Axogen”), and such
Affiliates shall have the right to grant further sublicenses with respect to Licensed Products in accordance with the terms of this Agreement. ELAN and its Affiliates shall only grant sublicenses hereunder in connection with the assignment or
license by ELAN and its Affiliates of the Licensed Product to that sublicensee. ELAN shall provide a written summary to PDL within forty-five (45) days following the end of each calendar quarter during the term of this Agreement specifying the
name of each sublicensee, territory and scope of the rights sublicensed hereunder during that quarter. Notwithstanding the assignment or grant of a sublicense by ELAN or its Affiliates hereunder, ELAN shall remain obligated to pay all royalties due
to PDL with respect to the sale of Licensed Products by its assignee or sublicensee. In addition, the grant or any sublicenses under Section 2.01 shall be on terms and conditions which are subject to and subordinate to the terms of this
Agreement and ELAN shall remain fully responsible to PDL for the performance of any and all such terms by its sublicensees. 
 2.03 No
Other License Rights. ELAN expressly acknowledges and agrees that, except for the license expressly granted under Section 2.01, no rights to any other PDL patents, patent applications, know-how or licenses are included in this Agreement and
that any royalties or payments that may be due to third parties in order for ELAN to make, have made, use or sell Licensed Products shall be the sole responsibility of ELAN. 
 2.04 Certain Understandings. 
 (a)
[    ] 
 (b) Fee Payment. ELAN acknowledges that the payments under Section 3.01 are based on good faith
market projections provided by ELAN to PDL and ELAN represents that the projections as provided to PDL are the same as those used by ELAN internally at this time for initial marketing and development decisions of the Licensed Product. 
 3. PAYMENTS, ROYALTIES, REPORTS 
 3.01
Payments. In consideration for the license granted by PDL under Article 2 of this Agreement, ELAN shall pay to PDL the following amounts: 
 (a) Signing and Licensing Fee. ELAN shall pay to PDL a nonrefundable signing and licensing fee within ten (10) days of the Effective Date in the sum of [    ]. 
  

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 (b) Development Milestone. Within ten (10) days of its determination to proceed with further
development of the Licensed Product following completion of the U.S. Phase II clinical study in multiple sclerosis designated as “AN100226-202” (the “Milestone Trial”), ELAN shall pay to PDL a nonrefundable milestone payment in
the sum of either (a) [            ] if paid on or prior to December 31, 1998, or (b) [            ] if paid after
December 31, 1998. In any event, ELAN shall notify PDL in writing of its determination to proceed with or to terminate further development of the Licensed Product not later than thirty (30) days following the earlier of (a) its review
of the preliminary results from the Milestone Trial, or (b) its public announcement or presentation of the results from the Milestone Trial. 
 3.02 Royalties to PDL. Subject to reduction for any offset as provided in Section 3.05, in further consideration of the rights and licenses granted under Article 2, ELAN shall pay to PDL a royalty of
[            ] of the Net Sales of all Licensed Products sold by ELAN or its Affiliates or sublicensees in each country until the last date on which there is a Valid Claim that, but for the
licenses granted to ELAN under this Agreement, would be infringed by the making, using, having made or sale of that Licensed Product in such country or by the manufacture of Licensed Product in the country of manufacture. 
 3.03 Sales Among Affiliates. Sales between and among ELAN and its Affiliates of Licensed Products which are subsequently resold or to be resold by
such Affiliates shall not be subject to royalty, but in such cases royalties shall accrue and be calculated on any subsequent sale of such Licensed Products to a non-Affiliate. 
 3.04 Combination Products. Net Sales in a particular country, in the case of Combination Products for which the pharmaceutically active agent or
ingredient constituting a Licensed Product and each of the other pharmaceutically active agents or ingredients not constituting Licensed Products have established market prices in that country when sold separately, shall be determined by multiplying
the Net Sales for each such Combination Product by a fraction, the numerator of which shall be the established market price for the Licensed Product(s) contained in the Combination Product and the denominator of which shall be the sum of the
established market prices for the Licensed Product(s) plus the established market prices for the other pharmaceutically active agents or ingredients contained in the Combination Product. When such separate market prices are not established in that
country, then the parties shall negotiate in good faith to determine a fair and equitable method of calculating Net Sales in that country for the Combination Product in question. 
 3.05 Annual Maintenance Fee. In further consideration of the licenses granted under
Article 2, not later than thirty (30) days following the third (3rd) anniversary of the Effective Date and not later than each
anniversary thereafter, ELAN shall pay PDL a nonrefundable annual maintenance fee in the amount of [            ]. An amount up to fifty percent (50%) of the annual maintenance fee
paid by ELAN hereunder beginning in the year in which a Biologics License Application (“BLA”) is filed with the U.S. Food and Drug Administration (or any successor thereto) with respect to a Licensed Product shall be creditable against
royalties payable to PDL pursuant to Section 3.02; provided that in no event shall any portion of the annual maintenance fees paid prior to the year in which a BLA is filed with respect to the Licensed Product be creditable against royalties
hereunder. 
  

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 3.06 Currency Conversion. All amounts payable to PDL under this Agreement shall be payable in U.S.
Dollars by wire transfer to a bank account designated by PDL. In the case of royalties on Net Sales, all amounts payable shall first be calculated in the currency of sale and then converted into U.S. Dollars using the average of the daily exchange
rates for such currency quoted by Citibank, N.A. for each of the last five (5) banking days of each calendar quarter. 
 3.07 Royalty
Reports. 
 (a) Current Reports. ELAN agrees to make written reports and royalty payments to PDL within forty-five (45) days
after the close of each calendar quarter during the term of this Agreement, beginning with the calendar quarter in which the date of first sale following regulatory approval occurs. These reports shall show for the calendar quarter in question Net
Sales by ELAN, its Affiliates and sublicensees of the Licensed Products on a country-by-country basis, details of the quantities of Licensed Products sold in each country and the country of manufacture if different, applicable offsets and the net
royalty due to PDL thereon pursuant to Article 3. No later than at the time of the making of each such report, ELAN shall make any payment due to PDL of royalties for the period covered by such report. 
 (b) Termination Report. For each Licensed Product, ELAN also agrees to make a written report to PDL within ninety (90) days after the date on
which ELAN, its Affiliates or sublicensees last sell that Licensed Product stating in such report the same information required by quarterly reports for all such Licensed Products made, sold or otherwise disposed of which were not previously
reported to PDL. 
 3.08 Inspection. ELAN agrees to keep clear, accurate and complete records for a period of at least three (3)
years for each reporting period in which Net Sales occur showing the manufacturing, sales, use and other disposition of Licensed Products in sufficient detail to enable the royalties payable hereunder to be determined, and further agrees to permit
its books and records to be examined by an independent accounting firm selected by PDL and reasonably satisfactory to ELAN, from time-to-time to the extent necessary, but not more than once a year. Said independent accounting firm shall not be
required to disclose to PDL any information other than that relating to the accuracy of the reports and payments thereunder. Such examination is to be made at the expense of PDL, except in the event that the results of the audit reveal that ELAN
underpaid PDL by five percent (5%) or more, then the audit fees shall be paid by ELAN. Any such discrepancies will be promptly corrected by a payment or refund, as appropriate. 
 3.09 Withholding. 
 (a)
Payments. The amounts payable under Sections 3.01 and 3.05 shall represent the actual proceeds to be received by PDL, net of any withholding or other taxes or levies that may be applicable to such payments. PDL agrees to reasonably
cooperate with ELAN in obtaining a refund of any withholding taxes or levies paid by ELAN, if any, with respect to any payments to PDL hereunder. In the event that PDL is successful in obtaining any refund of tax withholding amounts paid by ELAN
under this Agreement, PDL agrees to promptly remit such refund amount to ELAN. 
  

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 (b) Royalty Payments. ELAN may withhold from royalties due to PDL amounts for payment of any
withholding tax that ELAN, its Affiliates and sublicensees have paid to any taxing authority with respect to the royalty amounts due to PDL hereunder; provided, however, that the net amount payable to PDL shall in no event be reduced, on account of
non-U.S. withholding or other taxes, by more than ten (10) percent. ELAN agrees to reasonably cooperate with PDL in obtaining a foreign tax credit in the U.S. with respect to royalties due to PDL on the sale or manufacture of Licensed Products.

 4. PATENT PROSECUTION AND MAINTENANCE 
 4.01 Prosecution. PDL hereby agrees that, at its own expense it will use commercially reasonable efforts to: 
 (a)
prosecute any patent applications comprising the PDL Patent Rights and to secure the most extensive protection reasonably obtainable under the PDL Patent Rights; and 
 (b) maintain the claims under the PDL Patent Rights as valid and enforceable claims for the full term thereof. 
 4.02 Updates. Upon the written request of ELAN (which request shall not be made more than once per calendar year), PDL agrees to provide a written update of the information relating to the PDL Patent Rights as
set forth on Exhibit A. 
 4.03 Defense of PDL Patent Rights. With respect to the PDL Patent Rights licensed under
this Agreement, PDL at its sole cost and expense agrees to take all steps and proceedings and to undertake such other acts as PDL may, in its sole discretion, deem necessary or advisable to restrain any infringement or improper or unlawful use of
the PDL Patent Rights and to recover any actual or punitive compensation therefor. ELAN shall provide reasonable assistance to PDL and permit PDL to have the sole right to take such steps, conduct any such proceedings or undertake any such actions
to restrain any infringement or improper or unlawful use of the PDL Patent Rights, whether or not ELAN is a party to such steps, proceedings or actions. Any monies recovered from alleged infringers shall be retained by PDL. 
 4.04 Notification. ELAN shall promptly notify PDL in writing of any actual or suspected infringement of any PDL Patent Right, which notification
shall specify in reasonable detail the nature of such actual or suspected infringement. 
 5. REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION

 5.01 Valid Agreement. Each party represents and warrants to the other that it knows of no legal reason to prevent it from
entering into this Agreement and that the signatory hereto is duly authorized to execute and deliver this Agreement. 
 5.02 No Warranty
of Validity, Non-Infringement. Nothing in this Agreement shall be construed as (a) a warranty or representation by PDL as to the validity or scope of any PDL Patent Rights; or (b) a warranty or representation that any Licensed Product
made, used, sold or otherwise disposed of under the license granted in this Agreement is or will be free from infringement of patents, copyrights, trademarks, trade secrets or other rights of third parties. 
  

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 5.03 No Other Warranties. EXCEPT AS SPECIFICALLY SET FORTH IN ARTICLE 5, PDL MAKES NO
REPRESENTATIONS OR WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO ANY CELL LINES, ANTIBODIES OR LICENSED PRODUCTS DEVELOPED BY ELAN UNDER THE LICENSE SET FORTH IN THIS AGREEMENT AND PDL FURTHER MAKES NO EXPRESS OR IMPLIED
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR THAT THE USE OF ANY CELL LINES, ANTIBODIES, LICENSED PRODUCTS OR OTHER MATERIALS DEVELOPED BY ELAN UNDER THE LICENSE SET FORTH IN THIS AGREEMENT WILL NOT INFRINGE ANY THIRD PARTY
RIGHTS. 
 5.04 Indemnification. ELAN shall at all times, during the term of this Agreement and thereafter, indemnify and hold
harmless PDL and its Affiliates, sublicensees, directors, officers, agents and employees from any claim, proceeding, loss, expense, and liability of any kind whatsoever (including but not limited to those resulting from death, personal injury,
illness or property damage and including legal expenses and reasonable attorneys’ fees) arising out of or resulting from (a) any claim of patent infringement (direct or contributory) or inducing patent infringement with respect to the
activities of ELAN and (b) the development, manufacture, importation, holding, use, testing, advertisement, sale or other disposition by ELAN, its Affiliates or sublicensees, or any distributor, customer or representative of ELAN or any one in
privity therewith, of any Licensed Product. 
 6. CONFIDENTIALITY 
 6.01 Prior Agreements. This Agreement supersedes that certain Confidential Disclosure Agreement entered into between PDL and ELAN’s wholly-owned subsidiary, Athena Neurosciences, Inc. of April 10,
1997. 
 6.02 Confidentiality. PDL and ELAN acknowledge that in the course of negotiations and furtherance of the interests of the
parties hereunder that it may receive (“Recipient”) confidential information of the other party (“Provider”). “Confidential Information” means any and all data and information which (a) has been reduced to tangible
form and marked clearly and conspicuously with a legend identifying its confidential or proprietary nature; or (b) with respect to any oral presentation or communication, is designated as confidential immediately before, during, or within a
reasonable time after the oral presentation or communication and such designation is subsequently confirmed in writing; or (c) is otherwise characterized by Provider as confidential information. 
 Each party shall keep confidential and shall not use for any purpose other than the development and commercial exploitation of Licensed Products, during the term of this
Agreement and for five (5) years after termination hereof, all Confidential Information heretofore and hereafter supplied by the other, provided however, that the foregoing obligation of confidentiality shall not apply to the extent that any
Confidential Information (a) is already known to the recipient at the time of disclosure or is developed by recipient thereafter in the course of work entirely independent of any disclosure by the other party; (b) is publicly known prior
to or becomes publicly known after disclosure other than through acts or omissions of the recipient; (c) is disclosed in good faith to recipient by a third party under a reasonable claim of right, or (d) is required to be disclosed
pursuant to an order of a court of law or governmental agency; provided 

  

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that the disclosing party shall advise the other party promptly of any such disclosure requirement in order to permit such other party to undertake efforts
to restrict or limit the required disclosure. 
 7. TERM AND TERMINATION 
 7.01 Term. Unless earlier terminated as provided in this Article 7, this Agreement shall come into force on the Effective Date and shall
continue until the expiration of the latest obligation of ELAN to pay royalties to PDL in accordance with Article 3 above. Thereafter, this Agreement shall terminate. 
 7.02 Termination. 
 (a) This
Agreement may be terminated on sixty (60) days prior written notice by ELAN. 
 (b) If either party shall at any time default in
the payment of any royalty, or the making of any report hereunder, or shall commit any material breach of any covenant or agreement herein contained or shall make any false report, and shall fail to have initiated and actively pursued remedy of any
such default or breach within sixty (60) days after receipt of written notice thereof by the other party, that other party may, at its option, cancel this Agreement and revoke any rights and licenses herein granted and directly affected by the
default or breach by notice in writing to such effect, but such act shall not prejudice the right of the party giving notice to recover any royalty or other sums due at the time of such cancellation, it being understood, however, that if within
sixty (60) days after receipt of any such notice the receiving party shall have initiated and actively pursued remedy of its default, then the rights and licenses herein granted shall remain in force as if no breach or default had occurred on
the part of the receiving party, unless such breach or default is not in fact remedied within a reasonable period of time. 
 (c) This
Agreement may be terminated by either party upon the occurrence of any of the following which is not stayed or vacated within ninety (90) days of such occurrence: (i) petition in bankruptcy filed by or against the other party;
(ii) adjudication of the other party as bankrupt or insolvent; (iii) appointment of a liquidator, receiver or trustee for all or a substantial part of the other party’s property; or (iv) an assignment for the benefit of creditors
of the other party. 
 (d) To the extent permitted under applicable law, the license granted under this Agreement may be terminated as
to any country by PDL upon thirty (30) days’ prior written notice in the event that ELAN challenges a Queen Patent in that country; provided that participation in any European or Japanese opposition proceeding involving the Queen Patent by
any sublicensee of ELAN or its Affiliates hereunder shall not be considered a “challenge of a Queen Patent” pursuant to this Section 7.02(d). 
 7.03 No Waiver. The right of either party to terminate this Agreement as provided herein shall not be affected in any way by its waiver of any previous failure to perform hereunder or by its failure to take
action with respect thereto. 
 7.04 Survival. Termination for any reason hereunder shall not affect any accrued rights or obligations
of the parties arising in any manner under this Agreement as of the date of 
  

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termination. In any event, the confidentiality and indemnity obligations and any accrued payment obligations under Articles 3, 5 and 6 shall survive any
termination of this Agreement. 
 8. MISCELLANEOUS 
 8.01 Assignment. This Agreement may not be assigned by either party without the prior written consent of the other party; provided, however, that either party may assign this Agreement, in whole or in part, to
Axogen with respect to ELAN, to an Affiliate or to a successor of a party in connection with a merger, consolidation or sale of all or substantially all of such party’s assets or that portion of its business pertaining to the subject matter of
this Agreement. 
 8.02 Entire Agreement. This Agreement constitutes the entire Agreement between the parties hereto with respect to
the within subject matter and supersedes all previous agreements, whether written or oral. This Agreement shall not be changed or modified orally, but only by an instrument in writing signed by both parties. 
 8.03 Severability. If any provision of this Agreement is declared invalid by a court of last resort or by any court, the decision of which an
appeal is not taken within the time provided by law, then and in such event, this Agreement will be deemed to have been terminated only as to the portion thereof which relates to the provision invalidated by that decision and only in the relevant
jurisdiction, but this Agreement, in all other respects and all other jurisdictions, will remain in force; provided, however, that if the provision so invalidated is essential to the Agreement as a whole, then the parties shall negotiate in good
faith to amend the terms hereof as nearly as practical to carry out the original interest of the parties, and, failing such amendment, either party may submit the matter to a court of competent jurisdiction for resolution. 
 8.04 Notices. Any notice or report required or permitted to be given under this Agreement shall be in writing and shall be sent by expedited
delivery or telecopied and confirmed by mailing, as follows and shall be effective three (3) days after such delivery: 
  

			
	 If to PDL:
	  	Protein Design Labs, Inc.
		  	2375 Garcia Avenue
		  	Mt. View, California 94043 USA
		  	Attention: Chief Executive Officer
		  	Facsimile: (650) 903-3730
		
	 Copy to:
	  	Protein Design Labs, Inc.
		  	2375 Garcia Avenue
		  	Mt. View, California 94043 USA
		  	Attention: General Counsel
		  	Facsimile: (650) 965-4632
		
	 If to ELAN:
	  	Elan International Service Ltd.
		  	102 St. James Court
		  	Flatts Smiths, FL04 Bermuda
		  	Attention: President
		  	Facsimile: 441-292-2224

  

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	 Copy to:
	  	Athena Neurosciences, Inc.
		  	800 Gateway Blvd.
		  	South San Francisco, CA 94080
		  	Attention: General Counsel
		  	Facsimile: (650) 875-3620

 8.05 Choice of Law. The validity, performance, construction, and effect of this Agreement
shall be governed by the laws of the State of California which are applicable to contracts between California residents to be performed wholly within California. 
 8.06 Waiver. None of the terms, covenants and conditions of this Agreement can be waived except by the written consent of the party waiving compliance. 
 8.07 Force Majeure. Neither party shall be responsible to the other for failure or delay in performing any of its obligations under this Agreement
or for other non-performance hereof provided that such delay or non-performance is occasioned by a cause beyond the reasonable control and without fault or negligence of such party, including, but not limited to earthquake, fire, flood, explosion,
discontinuity in the supply of power, court order or governmental interference, act of God, strike or other labor trouble and provided that such party will inform the other party as soon as is reasonably practicable and that it will entirely perform
its obligations immediately after the relevant cause has ceased its effect. 
 8.08 Publicity. PDL will issue a press release
concerning the parties’ entry into this Agreement and the amount of signing and licensing fees paid hereunder, with the content of such release to be approved in advance by ELAN, which approval shall not be unreasonably withheld. Except as
provided in this Section 8.08 or as required by law, neither party shall publicly disclose the terms and conditions of this Agreement unless expressly authorized to do so by the other party, which authorization shall not be unreasonably
withheld. In the event that disclosure shall not be agreed upon, then the parties will work together to develop a mutually acceptable disclosure. 
 8.09 Headings. The captions used herein are inserted for convenience of reference only and shall not be construed to create obligations, benefits, or limitations. 
 8.10 Export. Each party acknowledges that the laws and regulations of the United States restrict the export and re-export of commodities and
technical data of United States origin. Each party agrees that it will not export or re-export restricted commodities or the technical data of the other party in any form without the appropriate United States and foreign government licenses.

 8.11 Counterparts. This Agreement may be executed in counterparts, all of which taken together shall be regarded as one and the
same instrument. 
 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first above written. 

 

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	 PROTEIN DESIGN LABS, INC.
	  	ELAN INTERNATIONAL SERVICES LTD.
	 By: /s/ Jon
Saxe                     
	  	By: /s/ Kevin Insley                     
	 Title: PRESIDENT                
	  	Title: PRESIDENT                

  

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 EXHIBIT A 
 PDL Patent Rights 
 The following are patents and patent applications (the “Queen Patents”) as of the
Effective Date filed in certain countries in the world and licensed as part of the PDL Patent Rights under the Agreement: 
 1. European Patent number
0451216, Queen, et. al. “Humanized Immunoglobulins and Their Production and Use” issued January 24, 1996. 
  

	2.	U.S. Patent No. 5,693,089, Queen, et. al. “Humanized Immunoglobulins,” issued December 17, 1996. 

 3. U.S. Patent No. 5,693,761, Queen, et. al. “Polynucleotides Encoding Improved Humanized Immunoglobulins,” issued December 2, 1997. 
  

	4.	U.S. Patent No. 5,693,762, Queen, et. al. “Humanized Immunoglobulins,” issued December 2, 1997. 

  

	5.	Japan patent application number [    ], Queen, et. al. “Improved Humanized Immunoglobulins”. 

  

 12Agreement of Resignation, Appointment and Acceptance

 Exhibit 4.3 
 AGREEMENT OF RESIGNATION, APPOINTMENT AND ACCEPTANCE, dated as of February 12, 2009 among NORTEL NETWORKS LIMITED, formerly known as NORTHERN TELECOM LIMITED, a Canadian corporation (the “Guarantor”),
NORTEL NETWORKS CAPITAL CORPORATION, formerly known as NORTHERN TELECOM CAPITAL CORPORATION, a Delaware corporation (the “Issuer”), THE BANK OF NEW YORK MELLON, formerly known as The Bank of New York, a national banking association duly
organized and existing under the laws of the United States of America, having its corporate trust office at 101 Barclay Street New York, New York 10286 (the “Resigning Trustee”), and LAW DEBENTURE TRUST COMPANY OF NEW YORK, a New York
banking corporation duly organized and existing under the laws of the State of New York and having a corporate trust office at 400 Madison Avenue, 4th Floor, New York, New York 10017, as successor Trustee (the “Successor Trustee”).

 RECITALS: 
 WHEREAS,
there was originally authorized and issued $150 million aggregate principal amount of the Issuer’s 7.875% Notes due 2026, fully and unconditionally guaranteed by the Guarantor (the “Securities”), under an Indenture, dated as of
February 15, 1996 (the “Indenture”), between the Issuer, the Guarantor and the Resigning Trustee; 
 WHEREAS, an Event of
Default under the Indenture has occurred and is continuing; 
 WHEREAS, Section 607 of the Indenture provides that the Trustee may
resign at any time by so notifying the Issuer and the Guarantor; 
 WHEREAS, Section 607 of the Indenture further provides that, if the
Trustee shall resign, the Issuer shall promptly appoint a successor Trustee; 
 WHEREAS, Section 607 of the Indenture further provides
that the successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Issuer and the Guarantor; 
 WHEREAS, in accordance with Section 607 of the Indenture, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under the
Indenture, upon the acceptance by a successor Trustee of its appointment as a successor Trustee; 
 WHEREAS, Section 609 of the
Indenture provides that the Trustee (i) must satisfy with the requirements of Section 310(a)(1) of the Trust Indenture Act; (ii) at all times shall have a combined capital and surplus of at least $5 million, calculated as permitted by
Section 310(a)(2) of the Trust Indenture Act; and (iii) is subject to Section 310(b) of the Trust Indenture Act including the optional provision permitted by the second sentence of Section 310(b)(9) of the Trust Indenture Act;

 WHEREAS, the Resigning Trustee was appointed Registrar and Paying Agent under the Indenture; and 
 WHEREAS, the Resigning Trustee wishes to resign as Trustee, Registrar and Paying Agent under the Indenture; the Issuer wishes to appoint the Successor
Trustee to succeed the Resigning Trustee as Trustee, Registrar and Paying Agent under the Indenture; and the Successor Trustee meets the qualification and eligibility requirements of Section 609 of the Indenture and wishes to accept its
appointment as Trustee, Registrar and Paying Agent under the Indenture; 
 [Trustee Resignation, Appointment and Acceptance Agreement]

 NOW, THEREFORE, the Issuer, the Guarantor, the Resigning Trustee and the Successor Trustee, for and in
consideration of the premises and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, hereby consent and agree as follows: 
 ARTICLE ONE  
 THE RESIGNING TRUSTEE 
 Section 101. Pursuant to Section 607 of the Indenture, the Resigning Trustee has notified the Issuer and the Guarantor that the
Resigning Trustee is resigning as the Trustee, Registrar and Paying Agent under the Indenture. 
 Section 102. The Resigning
Trustee hereby represents and warrants to the Successor Trustee that: 
  

	 	(a)	No covenant or condition contained in the Indenture has been waived by the Resigning Trustee or, to the best of the knowledge of the responsible officers of the Resigning
Trustee’s corporate trust department, by the Holders of the percentage in aggregate principal amount of the Securities required by the Indenture to effect any such waiver. 

  

	 	(b)	There is no action, suit or proceeding pending or, to the best of the knowledge of the responsible officers assigned to the Resigning Trustee’s corporate trust department,
threatened against the Resigning Trustee before any court or any governmental authority arising out of any action or omission by the Resigning Trustee as the Trustee under the Indenture. 

  

	 	(c)	The Resigning Trustee does not and as of the Effective Date (as defined in Section 402) will not hold any property under the Indenture. 

  

	 	(d)	This Agreement has been duly authorized, executed and delivered on behalf of the Resigning Trustee. 

  

	 	(e)	The current outstanding principal amount of the Securities as of the Effective Date is $150,000,000. 

  

	 	(f)	Interest on the Securities was paid to November 15, 2008. 

  

	 	(g)	The name and contact information of the registered holders and known beneficial holders of the Securities are listed on Schedule I. 

  

	 	(h)	The Event of Default is based on Section 501 (5) of the Indenture. 

 Section 103. The Resigning Trustee hereby assigns, transfers, delivers and confirms to the Successor Trustee all right, title and interest of the Resigning Trustee in and to the trust under the Indenture
and all the rights, powers and trusts of the Trustee, Registrar and Paying Agent under the Indenture. The Resigning Trustee shall execute and deliver such further instruments and shall do such other things as the Successor Trustee may reasonably
require so as to more fully and certainly vest and confirm in the Successor Trustee all the rights, trusts and powers hereby assigned, transferred, delivered and confirmed to the Successor Trustee as the Trustee, Registrar and Paying Agent.

 Section 104. The Resigning Trustee shall deliver to the Successor Trustee, as of or immediately after the effective date
hereof, all of the documents listed on Exhibit A hereto. 
  

 2 

 ARTICLE TWO 
 THE ISSUER AND THE GUARANTOR 
 Section 201. Each of the Issuer and the Guarantor hereby
certifies that it is, and the officers of each of the Issuer and the Guarantor who have executed this Agreement are, duly authorized to: (a) accept the Resigning Trustee’s resignation as Trustee, Registrar and Paying Agent under the
Indenture; (b) appoint the Successor Trustee as Trustee, Registrar and Paying Agent under the Indenture; and (c) execute and deliver such agreements and other instruments as may be necessary or desirable to effectuate the succession of the
Successor Trustee as Trustee, Registrar and Paying Agent under the Indenture. 
 Section 202. Each of the Issuer and the
Guarantor hereby accept the resignation of the Resigning Trustee as Trustee, Registrar and Paying Agent under the Indenture. Pursuant to Section 607 of the Indenture, the Issuer hereby appoints the Successor Trustee as Trustee, Registrar and
Paying Agent under the Indenture and confirms to the Successor Trustee all the rights, powers and duties of the Resigning Trustee under the Indenture and with respect to all property and money held by such Resigning Trustee under the Indenture, with
like effect as if the Successor Trustee was originally named as Trustee, Registrar and Paying Agent under the Indenture. Each of the Issuer and the Guarantor shall execute and deliver such further instruments and shall do such other things as the
Successor Trustee may reasonably require so as to more fully and certainly vest and confirm in the Successor Trustee all the rights, powers, and duties hereby assigned, transferred, delivered and confirmed to the Successor Trustee. 
 Section 203. 
 (a) The Issuer
hereby represents and warrants to the Successor Trustee that it is a corporation duly formed and validly existing under the laws of the State of Delaware. 
 (b) The Guarantor hereby represents and warrants to the Successor Trustee that it is a corporation duly incorporated and validly existing under the laws of Canada. 
 (c) Each of the Issuer and the Guarantor represents and warrants to the Successor Trustee that (i) the Indenture was validly and lawfully executed
and delivered by the Issuer and the Guarantor and is in full force and effect; and (ii)the Securities are validly issued securities of the Issuer. 
 ARTICLE THREE  
 THE SUCCESSOR TRUSTEE 
 Section 301. The Successor Trustee hereby represents and warrants to the Resigning Trustee and to the Property Trustee that: 
  

	 	(a)	The Successor Trustee is qualified and eligible under the provisions of Section 609 of the Indenture to act as the Trustee under the Indenture. 

  

 3 

	 	(b)	This Agreement has been duly authorized, executed and delivered on behalf of the Successor Trustee. 

 Section 302. The Successor Trustee hereby accepts its appointment as the successor Trustee, Registrar and Paying Agent under the Indenture
and accepts the rights, powers, duties and obligations of the Resigning Trustee as the Trustee, Registrar and Paying Agent under the Indenture, upon the terms and conditions set forth therein, with like effect as if originally named as the Trustee,
Registrar and Paying Agent under the Indenture. 
 Section 303. References
in the Indenture to “Corporate Trust Office” or other similar terms shall be deemed to refer to the Corporate Trust Office of the Successor Trustee at 400 Madison Avenue, 4th Floor, New York, NY 10017 or any other office of the Successor Trustee at which, at any particular time, its corporate trust business shall be administered. 
 Section 304. Promptly after the execution and delivery of this Agreement, the Successor Trustee, on behalf of the Issuer, shall cause a
notice, the form of which is annexed hereto marked Exhibit B to be sent to all Holders in the manner provided in Section 607 of the Indenture. 
 ARTICLE FOUR 
 MISCELLANEOUS 
 Section 401. Except as otherwise expressly provided herein or unless the context otherwise requires, all terms used herein which are defined in the Indenture shall have the meaning assigned to them in the
Indenture. 
 Section 402. This Agreement and the resignation, appointment and acceptance effected hereby shall be effective as
of the opening of business on the date first above written, upon the execution and delivery hereof by each of the parties hereto (the “Effective Date”); provided, however, that the resignation of the Resigning Trustee as
Registrar and Paying Agent and appointment of the Successor Trustee as Registrar and Paying Agent shall be effective as of the close of business 10 days after the date first written above and until such date the Resigning Trustee shall continue to
perform its duties under the Indenture. 
 Section 403. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York. 
 Section 404. This Agreement may be executed in any number of counterparts each of which shall
be an original, but such counterparts shall together constitute but one and the same instrument. 
 Section 405. The Issuer, the
Guarantor, the Resigning Trustee and the Successor Trustee hereby acknowledge receipt of an executed counterpart of this Agreement and the effectiveness thereof. 
 Section 406. Notwithstanding the resignation of the Resigning Trustee effected hereby, the Issuer and the Guarantor shall remain obligated to compensate, reimburse and indemnify the Resigning Trustee in
accordance with, and to the extent provided in, Section 606 of the Indenture. The Issuer also acknowledges and reaffirms its obligations to compensate, reimburse and indemnify the Successor Trustee in accordance with, and to the extent provided
in, Section 606 of the Indenture, which obligations to the Successor Trustee shall survive the execution hereof. 
  

 4 

 IN WITNESS WHEREOF, the parties hereby have caused this Agreement of Resignation, Appointment and
Acceptance to be duly executed as of the day and year first above written. 
  

			
	 NORTEL NETWORKS LIMITED, as
 Guarantor

		
	 By:
	 	 /s/    J. Doolittle

	 Name:
	 	J. Doolittle
	 Title:
	 	Treasurer
		
	 By:
	 	 /s/    T. Connelly McGilley

	 Name:
	 	Tracy S.J. Connelly McGilley
	 Title:
	 	Assistant Secretary
	
	 NORTEL NETWORKS CAPITAL
 CORPORATION, as Issuer

		
	 By:
	 	 /s/    J. Doolittle

	 Name:
	 	J. Doolittle
	 Title:
	 	Vice President
	
	 THE BANK OF NEW YORK MELLON,
 as Resigning Trustee

		
	 By:
	 	 /s/    Martin Feig

	 Name:
	 	Martin Feig
	 Title:
	 	Vice President
	
	 LAW DEBENTURE TRUST COMPANY
 OF NEW YORK, as Successor Trustee

		
	 By:
	 	 /s/    Robert L. Bice II

	 Name:
	 	Robert L. Bice II
	 Title:
	 	Senior Vice President

  

 5 

 EXHIBIT A 
 Documents to the extent available to be delivered to the Successor Trustee: 
  

	1.	Executed copy of Indenture dated as of February 15, 1996 

  

	2.	File of Closing Documents 

  

	3.	A copy of the most recent Compliance Certificate delivered pursuant to Section 1005 of the Indenture. 

  

	4.	Copies of any official notices sent by the Trustee to all the Holders of the Securities pursuant to the terms of the Indenture during the past twelve months and a copy of the most
recent Trustee’s Annual Report to Holders, if any. 

  

	5.	The original Securities. 

  

 6 

 EXHIBIT B 
 [LAW DEBENTURE TRUST COMPANY OF NEW YORK LETTERHEAD] 
 NOTICE 
 To the Holders of 
 Nortel Networks Limited and 
 Nortel Networks Capital Corporation 
 7.875% Notes due 2026 
 CUSIP No. 665810AB3 
 NOTICE IS HEREBY GIVEN, pursuant to
Section 607 of the Indenture dated as of February 15, 1996 by and between Nortel Networks Limited, formerly known as Northern Telecom Limited, as Guarantor, Nortel Networks Capital Corporation, formerly known as Northern Telecom Capital
Corporation, as Issuer, and The Bank of New York Mellon, formerly known as The Bank of New York, as Trustee, that The Bank of New York Mellon has resigned as Trustee under the Indenture. 
 Pursuant to Section 607 of the Indenture, Law Debenture Trust Company of New York, a New York banking
corporation duly organized and existing under the laws of the State of New York, has accepted appointment as Trustee under the Indenture. The address of the Corporate Trust Office of Law Debenture Trust Company of New York is 400 Madison Avenue, 4
th Floor, New York, NY 10017. 
 The Bank of New York
Mellon’s resignation as Trustee and Law Debenture Trust Company of New York’s appointment as successor Trustee were effective as of the opening of business on February 12, 2009. 
 Dated: New York, New York 
     February 12, 2009 
  

			
	Very truly yours,
		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

  

 7 

 SCHEDULE I 
 NAME & ADDRESS OF REGISTERED HOLDERS: 
  
  
  
 NAME & ADDRESS OF BENEFICIAL HOLDERS: 
  

 8

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