Document:

Patent License Agreement

 Exhibit 10.42 
 PATENT LICENSE AGREEMENT 
 dated 
 December 31, 2008 
 between 
 PDL BIOPHARMA, INC. 
 and

 ALEXION PHARMACEUTICALS, INC. 
  

 [*] = Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of
this exhibit has been filed separately with the Commission. 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page
	 1.
	 	DEFINITIONS	  	1
			
	 2.
	 	LICENSE AND OTHER RIGHTS	  	5
		 	 2.1.
	  	License Grant	  	5
		 	 2.2.
	  	Sublicense Rights	  	5
		 	 2.3.
	  	Additional Other Licensed Products	  	7
		 	 2.4.
	  	Alexion Right of First Refusal	  	8
		 	 2.5.
	  	No Other License	  	8
		 	 2.6.
	  	Covenant Not to Sue with Respect to PDL Queen Patent Family	  	8
		 	 2.7.
	  	Covenant Not to Sue with Respect to Other PDL Patents	  	12
			
	 3.
	 	PAYMENTS; ROYALTIES; REPORTS	  	12
		 	 3.1.
	  	Lump-Sum Payments	  	12
		 	 3.2.
	  	Royalties and Other Payments on Other Licensed Products	  	12
		 	 3.3.
	  	Sales Among Affiliates	  	13
		 	 3.4.
	  	Combination Products	  	13
		 	 3.5.
	  	Payment, Currency Conversion	  	13
		 	 3.6.
	  	Currency Transfer Restrictions	  	14
		 	 3.7.
	  	Royalty Reports	  	14
		 	 3.8.
	  	Inspection	  	14
		 	 3.9.
	  	Withholding	  	15
		 	 3.10.
	  	Interest on Overdue Payments	  	15
		 	 3.11.
	  	No Royalty Offsets	  	16
			
	 4.
	 	INFRINGEMENT OF PDL QUEEN PATENT FAMILY	  	16
		 	 4.1.
	  	Suits	  	16
			
	 5.
	 	REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION	  	16
		 	 5.1.
	  	Valid Agreement and Certain Other Representations and Warranties	  	16
		 	 5.2.
	  	Disclaimers	  	17
		 	 5.3.
	  	No Other Warranties	  	17
		 	 5.4.
	  	Indemnification by Alexion	  	17
		 	 5.5.
	  	Indemnification by PDL	  	18
			
	 6.
	 	CONFIDENTIALITY	  	18
		 	 6.1.
	  	Confidentiality	  	18
		 	 6.2.
	  	Exceptions	  	19
			
	 7.
	 	TERM AND TERMINATION	  	20
		 	 7.1.
	  	Term	  	20
		 	 7.2.
	  	Termination	  	20
		 	 7.3.
	  	No Waiver	  	22
		 	 7.4.
	  	Effect of Expiration or Termination	  	22
		 	 7.5.
	  	Survival	  	23

  

 i 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	  	 	  	Page
	 8.
	 	GOVERNANCE PROVISIONS	  	23
		 	 8.1.
	  	Assignment	  	23
		 	 8.2.
	  	Entire Agreement; Amendment	  	24
		 	 8.3.
	  	Severability	  	24
		 	 8.4.
	  	Notices	  	24
		 	 8.5.
	  	Choice of Law	  	25
		 	 8.6.
	  	Dispute Resolution	  	26
		 	 8.7.
	  	Waiver	  	28
		 	 8.8.
	  	Force Majeure	  	28
		 	 8.9.
	  	Publicity	  	28
		 	 8.10.
	  	Headings	  	28
		 	 8.11.
	  	Construction	  	28
		 	 8.12.
	  	Successors and Assigns	  	28
		 	 8.13.
	  	License Survival During Bankruptcy	  	28
		 	 8.14.
	  	Counterparts	  	29

  

 ii 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
 PATENT LICENSE AGREEMENT 

 This Patent License Agreement (this “Agreement”), effective as of December 31, 2008 (“Effective
Date”), is made by and between PDL BioPharma, Inc., a Delaware corporation having offices at 932 Southwood Boulevard, Incline Village, NV 89451 (“PDL”), and Alexion Pharmaceuticals, Inc., a Delaware corporation having
offices at 352 Knotter Drive, Cheshire, CT 06410 (“Alexion”). 
 RECITALS 
 A. PDL and Alexion are parties to that certain Settlement Agreement, dated of even date herewith (“Settlement Agreement”), pursuant to
which, among other matters, PDL and Alexion have agreed to settle the Litigation (as defined in the Settlement Agreement) and enter into this Agreement; and 
 B. Alexion desires non-exclusive licenses to the PDL Queen Patent Family (as defined below) to make, have made, use, sell, offer for sale, import and export the Licensed Homology Product (as defined below) and Other
Licensed Products (as defined below), and PDL is willing to grant such non-exclusive licenses to Alexion 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, PDL and Alexion agree as follows: 
  

	1.	DEFINITIONS 

 Except as otherwise expressly provided
herein, the following terms used in this Agreement shall have the definitions assigned to them in this Section 1 and shall include the singular as well as the plural. 
 1.1. “Affiliate.” Any corporate or other entity which, directly or indirectly, controls, is controlled by, or is under common control with a Party during the term of this Agreement, where
“control” means the ownership of more than fifty percent (50%) of the voting shares of a corporation or other entity, or of decision-making authority as to an unincorporated entity; provided, however, that such
corporation or other entity shall be an Affiliate only so long as such control exists. 
 1.2. “Agreement.” The
meaning specified in the Preamble to this Agreement. 
 1.3. “Alexion.” The meaning specified in the Preamble to this
Agreement. 
 1.4. “Antibody Person.” The meaning specified in the Settlement Agreement. 
  

 [*] = Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of
this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 1.5. “Asserted Homology Claims.” Claims 1, 2, 6, 8, 17, 18, 26, 33 and 35 of
U.S. Patent No. 5,693,761; claims 1, 2, 3 and 10-19 of U.S. Patent No. 5,693,762; and claims 1, 2, 5, 6 and 25-28 of U.S. Patent No. 6,180,370. 
 1.6. “Bulk Product.” An Other Licensed Product supplied in a form other than a Finished Product that can be converted into a Finished Product. 
 1.7. “Combination Product.” Any product containing both a pharmaceutically active agent or ingredient that constitutes an Other
Licensed Product and one or more other pharmaceutically active agents or ingredients that do not constitute Other Licensed Products. 
 1.8. “Confidential Information.” The meaning specified in Section 6.1. 
 1.9. “Controlled
Affiliate.” Any Affiliate which, directly or indirectly, is controlled by a Party (where “controlled” has the meaning specified in Section 1.1). 
 1.10. “Discloser.” The meaning specified in Section 6.2(a). 
 1.11.
“Effective Date.” The meaning specified in the Preamble to this Agreement. 
 1.12. “Finished
Product.” Any Other Licensed Product in a form for use by an end user and not intended for further chemical or genetic manipulation or transformation. 
 1.13. “Foreign Homology-Only Claims.” Any claim of the PDL Foreign Queen Patents that does not require, either through the text on its face or by operation of applicable foreign law, that
(a) one or more framework amino acid(s) be replaced or substituted, or (b) the sequence of the acceptor immunoglobulin heavy and/or light chain variable region framework be a consensus sequence of human immunoglobulin heavy and/or light
chain variable region frameworks. 
 1.14. “Independent Third Party.” Any Person that is not (a) Alexion,
(b) an Affiliate of Alexion, (c) a Sublicensee, or (d) an Affiliate of a Sublicensee. 
 1.15. “Licensed Homology Product.” The antibody known generically as eculizumab, identified in Biologics License Application No. 125166/0, Figure 3.2.S.1.2.2 (currently marketed by Alexion
under the name Soliris®) and any antibody that has the same variable region amino acid sequences as the variable region amino acid sequences of eculizumab. 
 1.16. “Licensed Products.” Collectively, the Licensed Homology Product and the Other Licensed Products. 
 1.17. “Net Sales.” The aggregate gross revenues received from the sale or other disposition of Other Licensed Products by Alexion or any
of its Affiliates or Sublicensees to an Independent Third Party, less deductions for the following to the extent pertaining to Other Licensed Products: (a) discounts, credits or allowances, if any, actually granted on account of price
adjustments, recalls, rejection or return of items previously sold; (b) excise and sales taxes, 

  

 2 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
duties or other taxes and other governmental charges imposed on and paid with respect to such sales (excluding income or franchise taxes of any kind);
(c) outer packing, transport, freight, insurance, handling and other freight-related costs; (d) trade, quantity and cash discounts and rebates, charge-backs and retroactive price reductions (including, without limitation, Medicaid rebates
and rebates to social and welfare systems and to governmental agencies, or any payor, administrator or contractor (including, without limitation, managed health organizations)); (e) allowances, charge-backs, refunds and credits on account of
rejected, damaged, outdated, returned, withdrawn or recalled Other Licensed Product or on account of retroactive price reductions affecting an Other Licensed Product; and (f) up to five percent (5%) of such aggregate gross revenues for
co-pay assistance amounts and other payment assistance amounts actually provided by Alexion or its Affiliates or Sublicensees pursuant to any of their respective patient access or similar programs for the benefit of patients who are not covered by
insurance (but only such portion of such amounts that are applicable to an Other Licensed Product). 
 If Alexion or any of its Affiliates or
Sublicensees receives any non-cash consideration for any Other Licensed Product sold or otherwise disposed of to such an Independent Third Party, the reasonable fair market value of such non-cash consideration on the date of such sale or disposition
shall be mutually agreed upon by the Parties. 
 Net Sales for Bulk Products shall be calculated by multiplying the units of Finished Product
to which such Bulk Product is reasonably anticipated to be converted by the established market price of the Finished Product on the date of sale or disposition of such Bulk Product. By way of example and without limitation, units of Finished Product
may be measured in grams or doses, as appropriate. 
 If Alexion or any of its Affiliates or Sublicensees receive any consideration for the
sale or other disposition of any Other Licensed Product as part of a set of bundled products, Net Sales for such Other Licensed Product shall be calculated by reference to the average non-discounted unit price for such Other Licensed Product when
sold or otherwise disposed of for cash other than as part of a set of bundled products. Net Sales for Combination Products shall be calculated as set forth in Section 3.4. 
 Net Sales shall not include the disposition of any Other Licensed Product in connection with any of the following so long as no consideration is received
by Alexion or any of its Affiliates or Sublicensees in connection with such disposition: (i) any clinical trials or phase IV or other studies; (ii) any regulatory or governmental purposes; or (iii) any patient assistance programs or
charitable or promotional purposes. 
 Net Sales shall be determined in accordance with U.S. generally accepted accounting principles
consistently applied. 
 1.18. “No Contest Covenant.” The meaning specified in the Settlement Agreement. 

1.19. “Other Licensed Product.” Each product listed on Exhibit A (as such list may be modified from time to time by Alexion in
accordance with Section 2.3), the manufacture, use, sale, offer for sale, importation or exportation of which in a particular country would, but for the license granted in Section 2.1(b), infringe a Valid Claim. 
  

 3 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 1.20. “Other PDL Patents.” The issued patents and patent applications
(a) owned by PDL or any of its Affiliates as of the Effective Date of this Agreement that are not included in the PDL Queen Patent Family or (b) exclusively licensed to PDL or any of its Affiliates and in respect of which license it is
reasonable to conclude that PDL or any such Affiliate has standing to sue any other Person for infringement (or in respect of which PDL or any of its Affiliates otherwise has the right to assert infringement against any other Person) as of the
Effective Date of this Agreement that are not included in the PDL Queen Patent Family. 
 1.21. “Parties.” PDL and
Alexion. 
 1.22. “Party.” Either PDL or Alexion. 
 1.23. “PDL Foreign Queen Patents.” The meaning specified in the Settlement Agreement. 
 1.24. “PDL Queen Patent Family.” The meaning specified in the Settlement Agreement. 
 1.25. “PDL Queen Patent Family Assignee.” The meaning specified in Section 2.6(a). 
 1.26. “Person.” An individual, partnership, limited liability company, corporation, joint stock company, trust (including,
without limitation, a business trust), unincorporated association, joint venture, firm, enterprise or other entity. 
 1.27.
“PTO.” The U.S. Patent and Trademark Office. 
 1.28. “Recipient.” The meaning specified in Section
6.2(a). 
 1.29. “Settlement Agreement.” The meaning set forth in the Recitals to this Agreement. 
 1.30. “Soliris.” The meaning specified in the Recitals to the Settlement Agreement. 
 1.31. “Sublicensee.” Any sublicensee to which Alexion has, pursuant to and in accordance with Section 2.2, granted a sublicense
under the license granted to Alexion in Section 2.1(a), Section 2.1(b) and/or, if applicable, Section 2.6(b) (a “Primary Sublicensee”); and any sublicensee to which a Primary Sublicensee has, pursuant to and in accordance with
Section 2.2, granted a further sublicense under the sublicense granted to such Primary Sublicensee by Alexion pursuant to Section 2.1(a), Section 2.1(b) and/or, if applicable, Section 2.6(b), respectively. 
 1.32. “Sublicensee Covenant.” The meaning specified in Section 2.2(c). 
  

 4 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 1.33. “Third Party.” A Person that is not a Party or an Affiliate of a Party.

 1.34. “Valid Claim.” Any claim included in the PDL Queen Patent Family, which claim has not expired or been
disclaimed or been held unenforceable or invalid by a governmental agency or court of competent jurisdiction by a decision from which no appeal has been timely taken or may be taken. 
  

	2.	LICENSE AND OTHER RIGHTS 

 2.1. License
Grant. Subject to the terms and conditions of this Agreement, PDL hereby grants to Alexion and Alexion hereby accepts: 
 (a) a worldwide, non-transferable (except as provided in Section 8.1), non-exclusive license under the Asserted Homology Claims and the Foreign Homology-Only Claims to make, have made, use, sell, offer for sale, import and export the
Licensed Homology Product for all indications (which license shall become fully paid-up upon Alexion’s payment in full of the payments pursuant to Section 3.1); and 
 (b) a worldwide, royalty-bearing, non-transferable (except as provided in Section 8.1), non-exclusive license under all claims of the PDL
Queen Patent Family to make, have made, use, sell, offer for sale, import and export Other Licensed Products. 
 2.2. Sublicense Rights.

 (a) Subject to Section 2.2(c) and Section 2.2(d), Alexion shall have the right to grant sublicenses under the license
granted to Alexion in Section 2.1(a) in its sole discretion. Subject to Section 2.2(c) and Section 2.2(d), Alexion may grant any of its Affiliates or Sublicensees the right to grant further sublicenses under the sublicense granted to such
Affiliate or Sublicensee pursuant to this Section 2.2(a) without PDL’s prior written consent. 
 (b) Subject to Section
2.2(c) and Section 2.2(d), Alexion shall have the right to grant sublicenses under the license granted to Alexion in Section 2.1(b) with respect to an Other Licensed Product solely to (i) any Person to which Alexion also licenses other issued
patents or patent applications necessary for the research, development, manufacture, use, marketing or sale of such Other Licensed Product, or (ii) any of Alexion’s Affiliates; provided, however, that Alexion or any of its
Affiliates (A) has, itself or through a contractor engaged by Alexion or such Affiliate for Alexion’s or its Affiliate’s benefit, undertaken substantial development efforts in connection with such Other Licensed Product that is the
subject of any such sublicense, and/or (B) owns or has exclusive rights to such Other Licensed Product. Subject to Section 2.2(c) and Section 2.2(d), Alexion may grant any of its Affiliates or Sublicensees the right to grant further
sublicenses under the sublicense granted to such Affiliate or Sublicensee pursuant to this Section 2.2(b) without PDL’s prior written consent. Alexion does not have the right to grant any other sublicenses under the license granted to Alexion
in Section 2.1(b) without PDL’s prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed). 
  

 5 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 (c) Each sublicense granted under the license(s) granted to Alexion in Section
2.1(a), Section 2.1(b) and/or, if applicable, Section 2.6(b) (and each sublicense granted under such sublicense) shall be in writing and shall (i) be subject to all applicable terms and conditions of this Agreement (including, without
limitation, with respect to each sublicense granted under the license granted to Alexion in Section 2.1(b) (and each sublicense granted under such sublicense), the right of Alexion to terminate such sublicense in the event of an uncured payment
breach or other uncured material breach of such sublicense agreement by the Sublicensee of such sublicense agreement), in respect of which PDL shall expressly be named as a third party beneficiary of such agreement with the right to fully enforce
its rights with respect to such applicable terms and conditions of this Agreement (including, without limitation, the right to fully enforce the Sublicensee Covenant (as defined below in this Section 2.2(c)) with respect to such Sublicensee and to
terminate such sublicense agreement if such Sublicensee breaches such Sublicensee Covenant), provided that PDL shall only exercise its third party beneficiary rights after (x) it has notified Alexion that it plans to exercise such rights
and has given Alexion a reasonable period of time to, as applicable, enforce Alexion’s rights or terminate such sublicense agreement, and (y) PDL and Alexion have reasonably coordinated with each other in connection with the timing and
exercise of such rights by PDL (and in the event PDL exercises such rights, it will keep Alexion reasonably apprised of the status of its efforts in connection therewith (including, without limitation, by promptly providing Alexion with copies of
written communications with any Sublicensees)), and (ii) include a covenant in such sublicense agreement with such Sublicensee that such Sublicensee shall not (A) intentionally provide direct monetary assistance to any Third Party to
Challenge (as such term is defined in the Settlement Agreement) any of the PDL Queen Patent Family or (B) intentionally file or otherwise initiate any lawsuit, arbitration, interference, reexamination or opposition or any other proceeding in
which such Sublicensee alleges or seeks a determination that any of the PDL Queen Patent Family is invalid or unenforceable (the “Sublicensee Covenant”); provided, however, that if a court of competent jurisdiction
holds in a decision from which no appeal may be taken or has been timely taken that the Sublicensee Covenant is unenforceable or invalid under applicable law, such Sublicensee shall not be bound by the Sublicensee Covenant solely in the jurisdiction
to which such court decision applies. If a Sublicensee breaches the Sublicensee Covenant by intentionally filing or otherwise initiating any lawsuit, arbitration, interference, reexamination or opposition proceeding or any other proceeding in which
such Sublicensee alleges or seeks a determination that any of the PDL Queen Patent Family is invalid or unenforceable, Alexion shall immediately notify PDL in writing thereof and shall immediately terminate such sublicense agreement,
provided, however, that Alexion has the right to so terminate such agreement under applicable law. Notwithstanding the foregoing in this Section 2.2(c), a Sublicensee shall not be obligated to covenant and agree not to file or
otherwise initiate or participate in any lawsuit, arbitration, interference, reexamination or opposition or any other proceeding that alleges or seeks a determination that one or more claims of an issued patent within the PDL Queen Patent Family is
invalid or unenforceable, provided that no Licensed Product forms any jurisdictional basis on which such lawsuit, arbitration, interference, reexamination or opposition or any other proceeding is filed or continued. In addition to, and
without limiting, Section 3.5(f) of the Settlement Agreement, if a Sublicensee is an Antibody Person that has an antibody that is not a Licensed Product and that is in Phase III development or later, such Sublicensee shall not, for so long as
such Person is an Antibody Person (that has an antibody that is not a Licensed Product 

  

 6 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
and that is in Phase III development or later), be obligated to covenant and agree not to file or otherwise initiate or participate in any lawsuit,
arbitration, interference, reexamination or opposition or other proceeding that seeks a determination that one or more claims of an issued patent within the PDL Queen Patent Family is invalid or unenforceable, provided that no Licensed
Product forms any jurisdictional basis on which such lawsuit, arbitration, interference, reexamination or opposition or other proceeding is filed or continued or thereafter becomes a subject of such lawsuit, arbitration, interference, reexamination
or opposition or other proceeding. 
 (d) Alexion 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 under this Agreement (or further sublicensed under any sublicense agreement granted
under this Agreement) during such quarter; provided, however, that no such written summary shall be required for a calendar quarter in the event that, during such calendar quarter, there are (i) no rights sublicensed under this
Agreement by Alexion and (ii) no rights further sublicensed by any Sublicensee under any sublicense granted to such Sublicensee under this Agreement. For the avoidance of doubt, Alexion shall remain liable for all obligations under this
Agreement with respect to sales and other dispositions of Other Licensed Products under each sublicense granted under the license granted to Alexion (and each sublicense granted under such sublicense) in Section 2.1(b) (including, without
limitation, royalty payment obligations under Section 3.2). 
 2.3. Additional Other Licensed Products. Alexion may, in its sole
discretion, add any product to Exhibit A from time to time, provided that Alexion or any of its Affiliates (a) has performed, itself or through a contractor engaged by Alexion or such Affiliate for Alexion’s benefit,
substantial development work with respect to such product, (b) owns or has the exclusive rights to manufacture, use, sell, offer for sale, import, export and/or otherwise exploit such product (provided that, with respect to any such
product for which Alexion has any such exclusive rights only for a particular geographic territory, Alexion’s corresponding license rights under Section 2.1(b) with respect to such product shall be limited to such geographic territory) and/or
(c) owns or has the non-exclusive rights to manufacture, use, import or export such product in order to support regulatory filings or sales in countries or geographic territories in which Alexion or such Affiliate has the exclusive right to
sell or offer for sale such product. In the event Alexion desires to add any such product to Exhibit A, Alexion shall so notify PDL in writing and, upon PDL’s receipt of such written notification, such product shall be deemed to be added
to Exhibit A and shall be an Other Licensed Product hereunder. For each Other Licensed Product added to Exhibit A by Alexion pursuant to this Section 2.3 after the first three (3) Other Licensed Products added to Exhibit A
by Alexion hereunder, in addition to the royalties Alexion is obligated to pay pursuant to Section 3.2, Alexion shall pay to PDL a one-time, non-refundable, lump-sum payment pursuant to Section 3.2. Notwithstanding anything in this Agreement, in the
event that Alexion breaches the No Contest Covenant and fails to cure such breach as provided in Section 6.2 of the Settlement Agreement, then PDL may, subject to all of the terms and conditions set forth in the Settlement Agreement, invoke its
right under Section 6.2 of the Settlement Agreement to terminate Alexion’s right under this Section 2.3 of this Agreement to add any products to Exhibit A of this Agreement. 
  

 7 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 2.4. Alexion Right of First Refusal. Subject to the exclusive licenses and rights set forth on
Exhibit C that PDL has granted to a Third Party prior to the Effective Date, in the event that PDL determines in good faith to offer any exclusive license(s) to any claim(s), issued patent(s) or patent applications included in the PDL Queen
Patent Family, PDL shall first notify Alexion in writing of (a) the type of transaction that PDL is planning on pursuing, (b) the field (including, without limitation, the specific target or indication, if applicable) and the geographic
territory of such proposed exclusive license and the relevant issued patent(s), patent applications or claim(s) to be exclusively licensed, and (c) the general economic terms proposed by PDL for such license (a “PDL Notice”).
If Alexion is interested in obtaining an exclusive license under the claim(s), issued patent(s) or patent applications included in the PDL Queen Patent Family in the field and geographic territory, and on the general economic terms, described in the
PDL Notice, then Alexion shall so notify PDL in writing (an “Alexion Notice”) within thirty (30) days from Alexion’s receipt of such PDL Notice. In such event, Alexion and PDL each hereby agree to exclusively negotiate in
good faith the terms and conditions of such license for a period of ninety (90) days from the date of such Alexion Notice (a “Negotiation Period”). If the Parties agree on all of the terms and conditions of the exclusive
license agreement during the Negotiation Period, then the Parties shall execute a written exclusive license agreement containing such terms and conditions. If the Parties are unable to agree on all of the terms and conditions of such exclusive
license within the Negotiation Period, then PDL shall thereafter be free to enter into an agreement for the exclusive license described in the PDL Notice with any Third Party on terms and conditions that, in the aggregate and taken as a whole, are
in PDL’s good faith judgment more advantageous to PDL than the terms and conditions last offered to PDL by Alexion. 
 2.5. No Other
License. Alexion expressly acknowledges and agrees that, except for the licenses expressly granted to Alexion in Section 2.1 and Section 2.6(b), no licenses to the PDL Queen Patent Family and no licenses to any Other PDL Patents, or to any
know-how, trade secrets or other intellectual property, are included in this Agreement or granted by implication, estoppel or otherwise. As between Alexion and PDL, subject to the licenses granted to Alexion in Section 2.1 and Section 2.6(b), PDL
retains all right, title and interest in and to all of the PDL Queen Patent Family and Other PDL Patents. 
 2.6. Covenant Not to Sue with
Respect to PDL Queen Patent Family. 
 (a) PDL covenants and agrees not to, and to cause its Controlled Affiliates and
each of its and their respective exclusive licensees (to the extent it is reasonable to conclude that such licensee has standing to sue any other Person for infringement of any PDL Queen Patent Family that is not an Asserted Homology Claim or a
Foreign Homology-Only Claim) not to, assert, initiate, file or otherwise commence anywhere in the world any proceeding or action (including, without limitation, any litigation, arbitration, interference or other proceeding), at law or in equity,
against Alexion or any of Alexion’s Affiliates or any successors or assigns of Alexion or any of Alexion’s Affiliates or any Sublicensee to which Alexion has granted a sublicense under the license granted to Alexion in Section 2.1(a)
and/or, if applicable, Section 2.6(b) (but only for so long as such Sublicensee has an effective sublicense granted under and in accordance with this Agreement) claiming that the manufacture, use, sale, offer for sale, 

  

 8 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
importation or exportation of the Licensed Homology Product infringes any claim of the PDL Queen Patent Family that is not an Asserted Homology Claim or a
Foreign Homology-Only Claim. Prior to any sale, assignment or other transfer by PDL or any of its Controlled Affiliates of all or substantially all of its rights (which, for the avoidance of doubt, does not include any grant of a non-exclusive
license) in and to (or any grant by PDL or any of its Controlled Affiliates of any exclusive license, in respect of which license it is reasonable to conclude that such exclusive licensee has standing to sue for infringement of any patent included
in the PDL Queen Patent Family that includes a claim that is not an Asserted Homology Claim or a Foreign Homology-Only Claim, under) any issued patent or patent application included in the PDL Queen Patent Family that includes a claim that is not an
Asserted Homology Claim or a Foreign Homology-Only Claim to any other Person (each such other Person, a “PDL Queen Patent Family Assignee”), PDL shall, and shall cause its Controlled Affiliates (and its and their exclusive licensees
to the extent it is reasonable to conclude that such licensee has standing to sue any other Person for infringement of any PDL Queen Patent Family that is not an Asserted Homology Claim or a Foreign Homology-Only Claim) to: (i) require each PDL
Queen Patent Family Assignee to acknowledge and agree in writing (A) to be bound by this Section 2.6(a) with respect to such issued patent or patent application, (B) that Alexion (or its successor, assign or Sublicensee, as applicable) is
a third party beneficiary of such agreement with the right to fully enforce its rights set forth in this Section 2.6(a) and (C) to require and obligate any Person to whom such PDL Queen Patent Family Assignee subsequently sells, assigns or
otherwise transfers ownership of such issued patent or patent application (or grants an exclusive license under such issued patent or patent application, in respect of which license it is reasonable to conclude that such exclusive licensee has
standing to sue for infringement of such issued patent or patent application) to acknowledge and agree in writing to be bound by this Section 2.6(a) in connection with any subsequent sale(s), assignment(s) or other transfer(s) of such issued patent
or patent application; and (ii) provide Alexion (or its successor or assign, as applicable) with a certification executed by PDL and such PDL Queen Patent Family Assignee, confirming that the obligations set forth above in subclause (i) of
this Section 2.6(a) have been, with respect to PDL and such PDL Queen Patent Family Assignee, fully complied with. 
 (b)
Without limiting the foregoing in Section 2.6(a), and subject to the terms and conditions of this Agreement, PDL hereby grants to Alexion and Alexion hereby accepts a worldwide, non-transferable (except as provided in Section 8.1),
non-exclusive, sublicensable (but only to the same extent that the license under Section 2.1(a) is sublicensable under Section 2.2(c), and subject to Section 2.2(c) and Section 2.2(d)) license under all claims of the PDL Queen Patent Family that are
not Asserted Homology Claims or Foreign Homology-Only Claims to make, have made, use, sell, offer for sale, import and export the Licensed Homology Product for all indications, which license shall be effective as of the Effective Date and shall
become fully paid-up upon Alexion’s payment in full of the payments pursuant to Section 3.1, but Alexion may only exercise its rights under the foregoing license in this Section 2.6(b) solely in the event and solely to the extent that:

 (i) the covenant set forth in Section 2.6(a) is held to be unenforceable or invalid under, or in contravention of,
applicable law by any court of competent jurisdiction, provided that Alexion may only exercise its rights under the foregoing license in this Section 2.6(b) 

  

 9 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
as a result of such court decision solely with respect to any patents issued by, or patent applications pending in, a patent office or similar governmental
agency with effect in the jurisdiction to which such court decision applies; or 
 (ii) (A) PDL and/or any of its Controlled
Affiliates, and/or any PDL Queen Patent Family Assignee does not comply with Section 2.6(a) (including, without limitation, (1) in connection with any sale, assignment or other transfer of all or substantially all of its rights in and to (or
any grant by PDL or any of its Controlled Affiliates of any exclusive license, in respect of which license it is reasonable to conclude that such exclusive licensee has standing to sue for infringement of any patent included in the PDL Queen Patent
Family that includes a claim that is not an Asserted Homology Claim or a Foreign Homology-Only Claim, under) any issued patent or patent application included in the PDL Queen Patent Family that includes a claim that is not an Asserted Homology Claim
or a Foreign Homology-Only Claim, or (2) any PDL Queen Patent Family Assignee (including, without limitation, any exclusive licensee of any such issued patent or patent application to the extent it is reasonable to conclude that such exclusive
licensee has standing to sue any other Person for infringement of any PDL Queen Patent Family that is not an Asserted Homology Claim or a Foreign Homology-Only Claim) does not agree in writing prior to or effective as of the closing of such sale,
assignment, acquisition, exclusive license or other transfer (or thereafter fails to comply with such agreement) to comply with Section 2.6(a) with respect to such issued patent or patent application or such agreement with a PDL Queen Patent Family
Assignee is held to be unenforceable or invalid under, or in contravention of, applicable law by any court of competent jurisdiction), provided that Alexion may only exercise its rights under the foregoing license in this Section 2.6(b) as a
result of such non-compliance with respect to such issued patent or patent application; and/or (B) an Affiliate of PDL that is not a Controlled Affiliate of PDL commits an act or omission that, if it was an act or omission of PDL or its
Controlled Affiliate, would not comply with Section 2.6(a); and/or (C) any exclusive licensee under any claim of the PDL Queen Patent Family that is not an Asserted Homology Claim or a Foreign Homology-Only Claim (regardless of whether it is
reasonable to conclude that such licensee has standing to sue any other Person for infringement of any PDL Queen Patent Family that is not an Asserted Homology Claim or a Foreign Homology-Only Claim) commits an act or omission that, if it was an act
or omission of PDL or its Controlled Affiliate, would not comply with Section 2.6(a); or 
 (iii) this Agreement or the
covenant set forth in Section 2.6(a) is rejected by a trustee in connection with a bankruptcy proceeding and the bankruptcy court (or any other court of competent jurisdiction) has determined that Section 365(n) of the U.S. Bankruptcy Code does
not apply to such a covenant; or 
 (iv) any issued patent or patent application included in the PDL Queen Patent Family
subject to the covenant set forth in Section 2.6(a) is transferred, assigned or otherwise disposed of in connection with a bankruptcy proceeding free and clear of such covenant, provided that Alexion may only exercise its rights under the
foregoing license in this Section 2.6(b) as a result of such disposition only with respect to such issued patent or patent application; or 
  

 10 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 (v) any patent included in the PDL Queen Patent Family subject to the covenant set
forth in Section 2.6(a) is asserted against (or any proceeding or action is otherwise initiated, filed or otherwise commenced anywhere in the world, at law or in equity, against) Alexion, any of Alexion’s Affiliates, any successors or assigns
of Alexion or any of Alexion’s Affiliates, or any Sublicensee to which Alexion has granted a sublicense under the license granted to Alexion in Section 2.1(a) and/or, if applicable, Section 2.6(b), or any Sublicensee of any such Sublicensee
(but, with respect to any of the foregoing Sublicensees, only if such Sublicensee, at the time of such assertion, has an effective sublicense granted under and in accordance with this Agreement), in each of the foregoing cases, with respect to the
Licensed Homology Product; provided that this subsection (v) only entitles Alexion to exercise the foregoing license in this Section 2.6(b) as a result of such assertion only with respect to such patent. 
 (c) Each Party agrees, covenants, represents and warrants, and shall cause its Affiliates (and with respect to Alexion, its Sublicensees
(and all Sublicensees of such Sublicensees), and with respect to PDL, its exclusive licensees of any patent included in the PDL Queen Patent Family that includes a claim that is not an Asserted Homology Claim or a Foreign Homology-Only Claim in
respect of which it is reasonable to conclude that such exclusive licensees have standing to sue any other Person for infringement of such patent) to agree, covenant, represent and warrant, that it will not challenge the validity or enforceability
of the covenant set forth in Section 2.6(a) or any of the other provisions set forth in this Section 2.6. 
 (d) For the
avoidance of doubt, notwithstanding anything contained herein, nothing in this Section 2.6 limits the license grant set forth in Section 2.1(a). 
 (e) If any patent included in the PDL Queen Patent Family subject to the covenant set forth in Section 2.6(a) is asserted by a Person with standing against (or any proceeding or action is otherwise initiated, filed or
otherwise commenced by a Person with standing anywhere in the world, at law or in equity, asserting any such patent) against Alexion or any of Alexion’s Affiliates (or any successors or assigns of Alexion or any of Alexion’s Affiliates or
any Sublicensee to which Alexion has granted a sublicense under the license granted to Alexion in Section 2.1(a)) with respect to the Licensed Homology Product, then, notwithstanding anything contained in this Agreement or the Settlement Agreement,
and solely with respect to such patent, neither Alexion nor its Affiliates (nor any of its or their successors or assigns nor any Sublicensee to which Alexion has granted a sublicense under the license granted to Alexion in Section 2.1(a)) shall be
bound by or otherwise have any obligation under the No Contest Covenant or any other provision set forth in Section 3 of the Settlement Agreement (and such provisions shall be of no force and effect) solely in connection with such proceeding or
action and solely for the period of time beginning on the date such proceeding or action is filed or otherwise commences and ending on the date of a final decision by a relevant court of competent jurisdiction or arbitral body, as applicable, in
connection with such proceeding or action from which no appeal has been timely taken or may be taken. 
  

 11 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 2.7. Covenant Not to Sue with Respect to Other PDL Patents. PDL covenants and agrees not to,
and to cause its Affiliates not to, assert, initiate, file or otherwise commence anywhere in the world any proceeding or action (including, without limitation, any litigation, arbitration, interference or other proceeding), at law or in equity,
against Alexion or any of Alexion’s Affiliates or any successors or assigns of Alexion or any of Alexion’s Affiliates or any Sublicensee to which Alexion has granted a sublicense under the license granted to Alexion in Section 2.1(a), or
any Sublicensee of any such Sublicensee (but with respect to any of the foregoing Sublicensees, only for so long as such Sublicensee has an effective sublicense granted under and in accordance with this Agreement), claiming that the manufacture,
use, sale, offer for sale, importation or exportation of the Licensed Homology Product infringes any claim of any Other PDL Patent. 
  

	3.	PAYMENTS; ROYALTIES; REPORTS 

 3.1. Lump-Sum
Payments. In consideration of the licenses granted to Alexion in Section 2.1(a) and Section 2.6(b), the covenants granted pursuant to Section 2.6 and Section 2.7 and the release by PDL pursuant to Section 2.2 of the Settlement Agreement,
Alexion shall pay to PDL a one-time, non-refundable, lump-sum payment of twenty-five million U.S. dollars ($25,000,000), twelve million five hundred thousand U.S. dollars ($12,500,000) of which shall be due and paid by Alexion to PDL within ten
(10) days after the Effective Date and twelve million five hundred thousand U.S. dollars ($12,500,000) of which shall be due and paid by Alexion to PDL within six (6) months after the Effective Date. Upon PDL’s receipt of such payment
of twenty-five million U.S. dollars ($25,000,000) in full in accordance with this Section 3.1, the licenses granted to Alexion in Section 2.1(a) and Section 2.6(b) shall be fully paid-up, irrevocable, perpetual and sublicensable as set forth in this
Agreement. 
 3.2. Royalties and Other Payments on Other Licensed Products. 
 (a) For each Other Licensed Product added to Exhibit A by Alexion pursuant to Section 2.3 after the first three (3) Other
Licensed Products have been added to Exhibit A by Alexion, Alexion shall, in addition to the royalties Alexion is obligated to pay to PDL pursuant to Section 3.2(b), pay to PDL a one-time, non-refundable, lump-sum payment of [*], which
payment shall be due and payable by Alexion to PDL within fifteen (15) business days of the later of (i) the date of a filing by Alexion or its Affiliate or Sublicensee for marketing approval for such Other Licensed Product with any
regulatory authority in any country, and (ii) the date Alexion adds such Other Licensed Product to Exhibit A pursuant to Section 2.3. 
 (b) In consideration of the license granted to Alexion in Section 2.1(b), Alexion shall pay to PDL on a country-by-country and Other Licensed Product-by-Other Licensed Product basis a royalty of four percent
(4%) of the Net Sales of all Other Licensed Products sold or otherwise disposed of by Alexion or any of its Affiliates or any Sublicensee. For the avoidance of doubt, the foregoing royalty obligation in this Section 3.2 expires with respect to
an Other Licensed Product in a particular country on the earlier to occur of (i) the last date on which there is a Valid Claim that, but for the license granted to Alexion in Section 2.1(b), would be infringed by the manufacture, use, sale,
offer for sale, importation or exportation of such Other Licensed Product in such country and (ii) December 2, 2014. Notwithstanding the foregoing sentence, with respect to any Other Licensed Product 

  

 12 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
manufactured, used, sold, offered for sale in, or imported to or exported from, any country within the European Union in which PDL has obtained a
supplementary protection certificate on such Other Licensed Product, the foregoing royalty obligation in this Section 3.2 expires on the earlier to occur of (A) December 28, 2014 and (B) the expiration date of any such supplementary
protection certificate in such country. Upon expiration of the royalty obligation in and in accordance with this Section 3.2 with respect to an Other Licensed Product in a particular country, the license granted to Alexion in Section 2.1(b) with
respect to such Other Licensed Product in such country shall be fully paid-up, irrevocable, perpetual and sublicensable as set forth in this Agreement. For the avoidance of doubt, if Alexion breaches the No Contest Covenant under the Settlement
Agreement, and fails to cure such breach as provided in Section 6.2 of the Settlement Agreement, then the four percent (4%) royalty payable to PDL under this Section 3.2 on the Net Sales of Other Licensed Products may be increased
prospectively thereafter to [*] of the Net Sales of all Other Licensed Products, as provided in Section 6.2 of the Settlement Agreement (and subject to all of the terms and conditions set forth in the Settlement Agreement). 
 3.3. Sales Among Affiliates. Sales or other transfers of an Other Licensed Product between and/or among Alexion, any of its Affiliates and/or any
Sublicensees (or between or among a Sublicensee and its Affiliates) of such Other Licensed Product, which Other Licensed Products are subsequently resold by Alexion or any such Affiliate or Sublicensee (or any such Affiliate of such Sublicensee) to
an Independent Third Party, shall, for purposes of Section 3.2, be excluded from Net Sales and shall not be subject to the royalty obligations set forth in Section 3.2, but in such cases, revenues shall be included in Net Sales and royalties shall
accrue and be calculated in accordance with Section 3.2 on any subsequent sale or other transfer or disposition of such Other Licensed Products by Alexion or any such Affiliate or Sublicensee to an Independent Third Party. 
 3.4. Combination Products. Net Sales in a particular country, in the case of a Combination Product for which the pharmaceutically active agent or
ingredient constituting an Other Licensed Product(s) and each of the other pharmaceutically active agents or ingredients not constituting Other Licensed Product(s) have established market prices in such country when sold separately, shall be
determined by multiplying the Net Sales for such Combination Product by a fraction, the numerator of which shall be the established market price for the Other Licensed Product(s) contained in such Combination Product and the denominator of which
shall be the sum of the established market prices for the Other Licensed Product(s) plus the established market prices for the other pharmaceutically active agents or ingredients contained in such Combination Product. When such separate market
prices are not established in a country, then the Parties shall negotiate in good faith to determine a fair and equitable method of calculating Net Sales in such country for the Combination Product in question. 
 3.5. Payment, Currency Conversion. All amounts payable to PDL under this Agreement shall be paid in U.S. dollars by wire transfer to the following
account (or such other account as PDL may designate in writing from time to time): 
 Bank:
        [*] 
 Further Credit to:     PDL Biopharma 
 A/C Number:         [*] 
  

 13 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 In the case of royalties on Net Sales of Other Licensed Products, 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 the calendar quarter
in respect of which such royalties are payable. 
 3.6. Currency Transfer Restrictions. If restrictions on the transfer of currency
exist in any country such as to prevent Alexion from making payments in the U.S., Alexion shall take reasonable steps to obtain a waiver of such restrictions to the extent reasonably available or otherwise enable Alexion to make such payments,
failing which Alexion may make the royalty payments due upon sales or other dispositions of Other Licensed Products in such country in local currency and deposit such payments in a local bank or other depository designated by PDL. 
 3.7. Royalty Reports. 
 (a) Current Reports. Alexion 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 or other royalty-bearing disposition of an Other Licensed Product by Alexion or any of its Affiliates or any Sublicensee occurs, and ending with the calendar quarter in which Alexion’s obligation
to pay royalties on all Other Licensed Products pursuant to Section 3.2 expires. Each such report shall state for the calendar quarter in question: (i) gross revenues and Net Sales received by Alexion, its Affiliates and all Sublicensees on a
country-by-country and Other Licensed Product-by-Other Licensed Product basis; (ii) the quantity of each Other Licensed Product sold or otherwise disposed of in such quarter and the country of manufacture of such Other Licensed Product;
(iii) applicable offsets; and (iv) the royalty due to PDL thereon pursuant to this Section 3. No later than at the time of the making of each such report, Alexion shall make any payment due to PDL of royalties for the quarter covered by such
report. 
 (b) Termination Report. For each Other Licensed Product, Alexion agrees to make a written
report to PDL within ninety (90) days after the date on which Alexion, its Affiliates and all Sublicensees last sell or otherwise dispose of such Other Licensed Product in a country, stating in such report the same information required in the
quarterly reports under Section 3.7(a) for all such Other Licensed Product made, sold or otherwise disposed of in such country not previously reported to PDL. 
 3.8. Inspection. Alexion agrees to keep, and to cause its Affiliates and Sublicensees to which Alexion has granted a sublicense under the license granted to Alexion in Section 2.1(b) (and all Sublicensees of
such Sublicensees) to keep, for a period of at least three (3) years, clear, accurate and complete records for each reporting period in which Net Sales occur, which records show the manufacturing, sales, use and other disposition of Other
Licensed Products in sufficient detail to enable the royalties payable hereunder to be determined, and further agrees to permit its 

  

 14 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
books and records, and to cause such Affiliates and Sublicensees to permit their books and records, to be examined by an independent accounting firm selected
by PDL and reasonably satisfactory to Alexion (or, as applicable, such Affiliate or Sublicensee) from time-to-time, but not more than once per calendar year. Such examination is to be made at the expense of PDL, except in the event that the results
of such examination reveal that Alexion has underpaid PDL by [*] or more, in which case the fees for such examination shall be paid by Alexion. Any such discrepancies will be promptly corrected by a payment or refund, as appropriate. 
 3.9. Withholding. 
 (a) Lump-Sum Payment. The amounts payable under Section 3.1 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, provided that PDL
shall be responsible for the payment of any and all income taxes on such payments. PDL agrees to reasonably cooperate with Alexion in obtaining a refund of any withholding taxes or levies paid by Alexion, if any, with respect to payments to PDL
under Section 3.1. In the event that PDL is successful in obtaining any refund of tax withholding amounts paid by Alexion under Section 3.1, PDL agrees to promptly remit such refund amount to Alexion. 
 (b) Royalty Payments. PDL shall be responsible for the payment of any and all income taxes and any withholding taxes, levies or
other duties that are levied on the payment by Alexion to PDL of royalties under Section 3.2 of this Agreement. Where any royalties due to be paid to PDL under Section 3.2 are subject to any withholding or similar tax under applicable law, the
Parties shall take reasonable steps to do all such reasonable acts and things and to sign all such deeds and documents as will enable them to take advantage of any applicable double taxation agreements with the object of paying the sums due to PDL
under deductions of a reduced rate of withholding tax or in full. In the event there is no double taxation agreement or the reduced rate of withholding tax under the relevant double taxation agreement is greater than zero percent (0%), Alexion shall
promptly pay such withholding or similar tax, deduct the relevant amount from the payment due to PDL and promptly secure and send to PDL written proof of such withholding or similar tax in a form satisfactory to PDL. Alexion agrees to reasonably
cooperate with PDL in obtaining a foreign tax credit in the U.S. with respect to royalties due to PDL under this Agreement. 
 3.10.
Interest on Overdue Payments. Alexion shall be liable for interest on any overdue payment, at the rate of [*] per annum or the highest rate allowed by law, whichever is less, commencing on the date such payment is due until paid in full without
prejudice to PDL’s right to receive payment on the due date (provided that, if the amount of such payment is the subject of a good faith dispute between the Parties, then interest shall not accrue on such amount in dispute until such
dispute has been resolved (provided further that all amounts not in dispute have been paid by Alexion in full when due)). The Parties shall discuss and attempt to resolve in good faith any such disputes within a reasonable period of
time. 
  

 15 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 3.11. No Royalty Offsets. No royalty percentages or amounts that Alexion owes or pays to any
other Person shall be creditable or offset against or shall otherwise affect the royalties or other amounts owed by Alexion to PDL under this Agreement. 
  

	4.	INFRINGEMENT OF PDL QUEEN PATENT FAMILY 

 4.1.
Suits. PDL shall not have any obligation hereunder to institute any action, suit or other proceeding against any Third Parties for infringement of any of the patents included in the PDL Queen Patent Family or any Other PDL Patents or to defend
any action, suit or proceeding brought by a Third Party which challenges or concerns the validity or enforceability of any of the patents included in the PDL Queen Patent Family or any Other PDL Patents. 
  

	5.	REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION 

 5.1. Valid Agreement and Certain Other Representations and Warranties. Each Party represents and warrants to the other Party that it has all requisite legal and corporate power and authority, and the rights necessary, to enter into
this Agreement and to carry out and perform all of its obligations under this Agreement and, with respect to PDL, to grant all of the licenses and rights, and, with respect to Alexion, to grant all of the rights, granted by it under this Agreement.
PDL represents, warrants and covenants to Alexion that (a) it is the sole and exclusive owner of the entire right, title and interest in and to the PDL Queen Patent Family, except for those exclusive licenses and rights set forth on Exhibit
C and the non-exclusive licenses that PDL has previously granted, (b) no other Person has any ownership right, title or interest or, except for those exclusive licensees set forth on Exhibit C, an exclusive license in or to any
issued patent or patent application included in the PDL Queen Patent Family, (c) the PDL Queen Patent Family may be licensed to Alexion hereunder without payment of any royalty or fee, or incurring any other obligation, to any other Person,
(d) during the period commencing on March 16, 2007 and ending on the Effective Date, neither PDL nor any of its Affiliates have sold, assigned or otherwise transferred to any Person (including, without limitation, by granting any exclusive
license, in respect of which license such exclusive licensee has standing to sue for infringement of any of the patents described in this Section 5.1(d) based on the manufacture, use, sale, offer for sale, import or export of Soliris or of the
variable region of any other Licensed Homology Product) any right, title or interest in or to any issued patents or patent applications that PDL or any of its Affiliates owned or exclusively licensed in from any other Person at any time during such
period which may be infringed by the manufacture, use, sale, offer for sale, import or export of Soliris or of the variable region of any other Licensed Homology Product, including, without limitation, for any indication in any country or geographic
territory, and (e) none of the Other PDL Patents will be infringed by the manufacture, use, sale, offer for sale, import or export of Soliris or of the variable region of any other Licensed Homology Product, including, without limitation, for
any indication in any country or geographic territory. For the avoidance of doubt, the representations, warranties and covenants made by PDL in the foregoing Sections 5.1(d) and 5.1(e) are solely for the purposes of this Agreement and the Settlement
Agreement and shall not be deemed to be an admission for the purposes of (i) any claim by or against PDL or any Affiliate of PDL or (ii) any litigation or other proceeding between any Independent Third Party and PDL or any Affiliate of
PDL, in the case of each of subsections (i) and (ii), to which Alexion or any of its Affiliates or any Sublicensees is not a party and that does not involve Soliris or the variable region of any other Licensed Homology Product. 
  

 16 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 5.2. Disclaimers. Nothing in this Agreement shall be construed as (a) a warranty or
representation by PDL as to the validity, enforceability or scope of any of the patents or patent applications included in the PDL Queen Patent Family or any Other PDL Patents, (b) a requirement that PDL file or prosecute any patent
application, or secure any patent or patent rights, or maintain any patent in force, or provide copies of any patent applications to Alexion or its Affiliates or any Sublicensees, or disclose any inventions described or claimed in any patent
applications, or (c) a warranty or representation by PDL that any Licensed Product is or will be free from infringement of any patents, copyrights, trademarks, trade secrets or other intellectual property or other rights of any Third Parties.
Alexion acknowledges and agrees that any royalties or payments that may be due to any Third Parties in order for Alexion to make, have made, use, sell, import, export or otherwise dispose of or exploit any Licensed Product shall be the sole
responsibility of Alexion. 
 5.3. No Other Warranties. EXCEPT AS SPECIFICALLY SET FORTH IN SECTION 2.6(c) AND SECTION 5.1 AND IN THE
SETTLEMENT AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, WITH RESPECT TO ANY MATTER RELATING TO THIS AGREEMENT, THE SETTLEMENT AGREEMENT AND/OR THE LITIGATION, INCLUDING, WITHOUT LIMITATION,
ANY OF THE PDL QUEEN PATENT FAMILY, ANY OTHER PDL PATENTS, OR ANY CELL LINES, ANTIBODIES OR ANY LICENSED PRODUCTS, AND PDL FURTHER MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR THAT THE PRACTICE OF
ANY OF THE PDL QUEEN PATENT FAMILY, OR ANY OTHER PDL PATENTS, OR THAT THE MANUFACTURE, USE, SALE, OFFER FOR SALE, IMPORTATION, EXPORTATION AND/OR OTHER EXPLOITATION OF ANY CELL LINES, ANTIBODIES, LICENSED PRODUCTS OR OTHER MATERIALS WILL NOT
INFRINGE ANY THIRD PARTY INTELLECTUAL PROPERTY OR OTHER RIGHTS. 
 5.4. Indemnification by Alexion. Alexion shall at all times, during
the term of this Agreement and thereafter, indemnify and hold harmless PDL and its Affiliates, and PDL’s and its Affiliates’ respective directors, officers, agents and employees, from any claim, proceeding, loss, expense and liability of
any kind whatsoever (including, without limitation, those resulting from death, personal injury, illness or property damage, and including, without limitation, legal expenses and reasonable attorneys’ fees) arising out of or resulting from any
Third Party claim arising out of or resulting from: (a) any Third Party claim of patent infringement (direct or contributory) or inducing patent infringement with respect to (i) the activities of Alexion or any of its Affiliates or
(ii) the activities of any Sublicensees, which activities, in each case, are in connection with any Licensed Product; (b) the development, manufacture, holding, use, testing, advertisement, importation, exportation, offering for sale, sale
or other disposition or exploitation by Alexion or any of its Affiliates or any Sublicensees (or any distributor, customer or representative of Alexion or any of its Affiliates or any Sublicensees that is in privity with Alexion or any of its
Affiliates or any Sublicensees), of any Licensed Product; and/or (c) any breach by Alexion of Section 5.1. 
  

 17 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 5.5. Indemnification by PDL. PDL shall at all times, during the term of this Agreement and
thereafter, indemnify and hold harmless Alexion and its Affiliates and all Sublicensees, and Alexion’s and its Affiliates’ and all Sublicensees’ respective directors, officers, agents and employees, from any claim, proceeding, loss,
expense and liability of any kind whatsoever (including, without limitation, those resulting from death, personal injury, illness or property damage, and including, without limitation, legal expenses and reasonable attorneys’ fees) arising out
of or resulting from any Third Party claim arising out of or resulting from: (a) any breach by PDL of Section 5.1 and/or (b) any Person with standing (including, without limitation, any Person who has or acquires any ownership or other
exclusive right or interest in, to or under any of the PDL Queen Patent Family or any of the Other PDL Patents through assignment, conveyance, grant, exclusive license or otherwise) bringing any claim in contravention of any of the provisions set
forth in Section 2.6 or Section 2.7 of this Agreement against Alexion or any of its Affiliates or any Sublicensee (or any of their respective successors or assigns). 
  

	6.	CONFIDENTIALITY 

 6.1. Confidentiality.
During the term of this Agreement and for a period of five (5) years following expiration or any termination of this Agreement, each Party shall maintain in confidence all information and materials disclosed by the other Party after the
Effective Date and solely in connection with this Agreement in writing and marked as confidential or disclosed orally or otherwise and denominated in writing by the disclosing Party as confidential within thirty (30) days after such disclosure
(collectively, “Confidential Information”), and shall not use any Confidential Information for any purpose except as reasonably required to exercise its rights and comply with its obligations under this Agreement or disclose any
Confidential Information other than to, as applicable, its Affiliates, employees, consultants, agents or subcontractors or any Sublicensee as reasonably necessary in connection with such Party’s activities as contemplated in this Agreement.
Each Party shall enter into an appropriate enforceable written agreement with, as applicable, any Affiliates, Sublicensees, employees, consultants, agents and subcontractors to which such Party intends to disclose any Confidential Information prior
to such disclosure, pursuant to which such Affiliate, Sublicensee, employee, consultant, agent or subcontractor agrees to hold such Confidential Information in confidence and not make use of any of such Confidential Information for any purpose other
than those permitted by this Agreement. Other than the fact that the Parties have resolved the Litigation, and the fact that the Parties have entered into this Agreement, and except to the extent disclosed in the joint press release attached as
Exhibit B, the Parties must not disclose the terms of this Agreement to any Third Party. For the avoidance of doubt, the terms and conditions of this Agreement are considered “Confidential Information” of each Party hereunder. For
the avoidance of doubt, this Section 6 shall not apply to any information or materials (a) disclosed by either Party to the other Party prior to the Effective Date, (b) that are disclosed by either Party to the other Party in connection
with the Settlement Agreement, (c) that are disclosed by either Party to the other Party in connection with the Litigation or the Stipulated Confidentiality 

  

 18 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
Protective Order filed on September 5, 2007 in the Litigation (or any information or materials covered by such Stipulated Confidentiality Protective
Order), or (d) that constitute Legal Materials (as such term is defined in the Settlement Agreement). In the event of any conflict between the terms or conditions of this Section 6 and any of the terms or conditions of the Settlement Agreement,
the terms and conditions of the Settlement Agreement shall govern and control. 
 6.2. Exceptions. Notwithstanding anything contained
herein, the obligation of confidentiality contained in this Agreement shall not apply to the extent that: 
 (a) either Party
(the “Recipient”) reasonably determines it is required to disclose Confidential Information of the other Party (the “Discloser”) by order or regulation of a governmental agency or a court of competent jurisdiction
(as may be determined by the Recipient after consultation with its legal counsel and based on such counsel’s advice (provided that such reliance on legal advice shall not be a complete defense with respect to a breach to the extent that
the Discloser proves by clear and convincing evidence that such advice was clearly and substantively incorrect)), provided that the Recipient shall (i) not make any such disclosure (other than a filing of information or materials with
the U.S. Securities and Exchange Commission or any other regulated securities market made with a request for confidential treatment for portions of such information or material for which such treatment may reasonably be expected to be granted)
without first providing the Discloser with prior written notice of such order or regulation, (ii) disclose no more information than is reasonably determined to be required by such order or regulation (as may be determined by the Recipient after
consultation with its legal counsel and based on such counsel’s advice (provided that such reliance on legal advice shall not be a complete defense with respect to a breach to the extent that the Discloser proves by clear and convincing
evidence that such advice was clearly and substantively incorrect)), and (iii) reasonably cooperate with the Discloser in seeking injunctive relief from the obligation to make such disclosure or to seek a protective order with respect to such
Confidential Information (to the extent reasonably requested by the Discloser); 
 (b) the Recipient can document or
demonstrate that (i) the disclosed Confidential Information was, at the time of such disclosure by the Discloser to the Recipient, already in the public domain other than as a result of actions of the Recipient or its Affiliates, employees,
consultants, agents or subcontractors (or, in the event that Alexion is the Recipient, any Sublicensee) in violation of this Section 6 or of any agreement described in Section 6.1, (ii) the disclosed Confidential Information was rightfully
known by the Recipient or its Affiliates (as shown by its contemporaneous written records) without any obligation of confidentiality prior to the date of disclosure by the Discloser to the Recipient or (iii) the disclosed Confidential
Information was rightfully received by the Recipient or its Affiliates on a non-confidential basis from a source unrelated to the Discloser who was not under a duty of confidentiality to the Discloser; 
 (c) disclosure is required to be made by the Recipient to a government regulatory agency as part of such agency’s biological product
license approval process; 
  

 19 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 (d) it is reasonable to conclude that the amount of fees and royalties paid or
received under this Agreement is required to be disclosed in a Party’s financial statements or reports (as may be determined by the Recipient after consultation with its legal counsel or accountants and based on such advice (provided
that such reliance on legal advice shall not be a complete defense with respect to a breach to the extent that Discloser proves by clear and convincing evidence that such advice was clearly and substantively incorrect)); 
 (e) either Party is required to provide this Agreement to a Third Party (and only to the extent it is so required, including, without
limitation, to the extent required by such Third Party) in connection with any diligence for an actual or potential bona fide business transaction with such Third Party concerning (i) Licensed Products (including, without limitation, licenses
and acquisitions) or (ii) an investment or other financing; or 
 (f) a Party wishes to disclose the terms of this
Agreement or other Confidential Information of the other Party to its legal counselors, auditors, or other similar professionals representing such Party; provided that such professionals have a duty, or other obligation, of confidentiality to
the disclosing Party and that such disclosure is for business purposes and on a need to know basis. 
  

	7.	TERM AND TERMINATION 

 7.1. Term. Unless
earlier terminated as provided in this Section 7, this Agreement shall come into force on the Effective Date and shall continue until expiration of the last to expire patent included in the PDL Queen Patent Family. Thereafter, this Agreement shall
expire. 
 7.2. Termination. 
 (a) PDL may, at its option, terminate this Agreement upon written notice to Alexion if Alexion does not pay PDL the payments described in Section 3.1 in accordance with and within the due dates set forth in Section
3.1. 
 (b) If Alexion shall at any time default in the payment of any royalty payment obligation or the submission of any
royalty report under this Agreement with respect to an Other Licensed Product and fails to remedy such default within thirty (30) days after receipt of written notice thereof from PDL, PDL may, at its option, terminate this Agreement solely
with respect to such Other Licensed Product, which termination shall be automatically effective at the end of such thirty (30) day period unless otherwise specified by PDL in such written notice; provided, however, that, if within
such thirty (30) day period Alexion shall have remedied such breach, this Agreement shall remain in force; and provided, further, that such termination shall not prejudice the right of PDL to recover any royalty or other sums due
at the time of such termination. Notwithstanding the foregoing in this Section 7.2(b), if a default in the payment of any royalty payment obligation or the submission of any royalty report under this Agreement with respect to any Other Licensed
Product (that has not been cured as set forth above in this Section 7.2(b)) is a material uncured breach solely by a Sublicensee under a sublicense agreement, then PDL may only terminate such sublicense agreement solely with respect to such Other
Licensed Product (and may not terminate this Agreement or any other sublicense agreement in its entirety or with 

  

 20 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
respect to such Other Licensed Product) by notifying Alexion to terminate such sublicense agreement (and after Alexion’s receipt of such notice from
PDL, Alexion shall immediately notify such Sublicensee that such sublicense agreement is immediately terminated). Alexion shall not be deemed to have breached this Agreement if a payment is not made and the amount of such payment is the subject of a
good faith dispute between the Parties (provided that Alexion has promptly notified PDL in writing of such good faith dispute and further provided that all amounts not in dispute have been paid to PDL in full). 
 (c) Except as set forth in Section 7.2(a) and Section 7.2(b), if either Party shall at any time commit any material breach of this
Agreement hereunder and fails to remedy such breach within forty-five (45) days after receipt of written notice thereof from the non-breaching Party, then the non-breaching Party may, at its option, terminate this Agreement, which termination
shall be automatically effective at the end of such forty-five (45) day period unless otherwise specified by the non-breaching Party in such written notice; provided, however, that, if within such forty-five (45) day period,
the breaching Party shall have remedied such breach, this Agreement shall remain in force in its entirety. Notwithstanding the foregoing in this Section 7.2(c), if a material breach of this Agreement (that has not been cured as set forth above in
this Section 7.2(c)) (i) relates solely to one or more Other Licensed Product, then the non-breaching Party may only terminate this Agreement solely with respect to such Other Licensed Product(s) (and not this Agreement in its entirety), or
(ii) is a material uncured breach solely by a Sublicensee under a sublicense agreement, then if PDL is the non-breaching Party, PDL may only terminate such sublicense agreement (and not this Agreement in its entirety or any other sublicense
agreement) by notifying Alexion to terminate such sublicense agreement (and after Alexion’s receipt of such notice from PDL, Alexion shall immediately notify such Sublicensee that such sublicense agreement is immediately terminated). Any such
termination shall not prejudice the right of the non-breaching Party to recover damages with respect to such breach. Notwithstanding anything contained in this Agreement, neither Party shall have any right to terminate this Agreement if the other
Party breaches Section 6. In the event either Party breaches Section 6, then, the sole and exclusive remedy of the Parties shall be the right to seek equitable relief and damages for such breach. 
 (d) After termination of this Agreement (other than termination of this Agreement by PDL pursuant to Section 7.2(c)), Alexion, and/or if
applicable, any of its Affiliates and/or Sublicensees, shall have the right to sell-off all inventory of Other Licensed Product (including, without limitation, all Bulk Product, in-process Other Licensed Product and Finished Product) owned or
controlled by Alexion and/or, if applicable, any of its Affiliates or any Sublicensees and existing as of the date of such termination of this Agreement (collectively, “Existing Inventory”), which shall include the right to make
Existing Inventory of Bulk Product and in-process Other Licensed Product into Finished Product, provided that Alexion continues to pay PDL royalties on all Net Sales of Other Licensed Products included in the Existing Inventory pursuant to
Section 3 and complies with all terms and conditions of this Agreement (and/or, if applicable, that any such Sublicensee is compliant with the terms and conditions that are required to be included in the applicable sublicense agreement pursuant to
Section 2.2(c)). 
  

 21 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 (e) 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 after such occurrence: (i) a petition in bankruptcy is filed by or against the other Party; (ii) an adjudication of the other Party as bankrupt or insolvent;
(iii) an 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. 
 7.3. 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 by the other Party to perform hereunder or by its failure to take action with respect thereto. 
 7.4. Effect of
Expiration or Termination. Upon any termination of this Agreement pursuant to Section 7.2(a), Section 7.2(b), Section 7.2(c) or Section 7.2(e) in its entirety or with respect to any Other Licensed Product, the license granted to Alexion
under Section 2.1(b) (or, in the event that this Agreement is terminated only with respect to such Other Licensed Product, the licensed granted to Alexion under Section 2.1(b) with respect to such Other Licensed Product), and all rights under
Section 2.1(b) sublicensed by Alexion or any Sublicensee (or, in the event that this Agreement is terminated only with respect to such Other Licensed Product, all rights under Section 2.1(b) sublicensed by Alexion or any Sublicensee with respect to
such Other Licensed Product) and any rights granted by PDL to Alexion under this Agreement (or, in the case this Agreement is terminated only with respect to such Other Licensed Product, any rights granted by PDL to Alexion under this Agreement with
respect to such Other Licensed Product), shall, subject to Alexion’s and its Affiliates’ Sublicensees right to sell-off Existing Inventory pursuant to Section 7.2(d), immediately terminate, and each Party shall, if requested by the other
Party, immediately return to such other Party any and all Confidential Information of such other Party in its possession, custody or control in whatever form held (including, without limitation, all copies or embodiments thereof) or shall, at such
other Party’s written direction, destroy all such Confidential Information (including, without limitation, all copies or embodiments thereof) and certify its destruction in writing to such other Party; except that (i) PDL shall not
be obligated to return or destroy any information included in any report provided by Alexion to PDL pursuant to Section 3.7, (ii) neither Party shall be obligated to return or destroy the portion of the Confidential Information of the other
Party that may be found in analyses, compilations, studies or other documents prepared by such Party or its representatives, (iii) neither Party shall be obligated to return or destroy Confidential Information of the other Party contained in
such Party’s electronic back-up files that are created in the normal course of business pursuant to such Party’s standard protocol for preserving its electronic records and (iv) each Party may retain one (1) copy of the other
Party’s Confidential Information solely for archival purposes (including, without limitation, for legal and evidentiary purposes) and in accordance with Section 6. Upon the expiration (but, for the avoidance of doubt, not any termination of
this Agreement pursuant to Section 7.2(a), Section 7.2(b), Section 7.2(c) or Section 7.2(e)), as of the effective date of such expiration, the license granted by PDL to Alexion under Section 2.1(b) shall be fully paid-up, irrevocable, perpetual
and, as set forth herein, fully sublicensable. For the avoidance of doubt, the foregoing shall not limit Alexion’s fully paid-up, irrevocable, perpetual and sublicensable license with respect to an Other Licensed Product in a particular country
as set forth in Section 3.2. 
  

 22 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 7.5. Survival. Expiration of this Agreement or termination of this Agreement 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 such expiration or termination. In any event, Section 2.1(a) (except in the event of termination of this
Agreement pursuant to Section 7.2(a)), Section 2.5, Section 2.6 (except in the event of termination of this Agreement pursuant to Section 7.2(a)), Section 2.7 (except in the event of termination of this Agreement pursuant to Section 7.2(a)), Section
3, Section 4, Section 5, Section 6, Section 7.4, this Section 7.5 and Section 8 shall survive any expiration or termination of this Agreement. 
  

	8.	GOVERNANCE PROVISIONS 

 8.1. Assignment. 

 (a) Assignment by Alexion. 
 (i) Alexion may freely assign or otherwise transfer this Agreement (or any rights or obligations under this Agreement) without the consent
of PDL, provided that any such assignee or transferee agrees in writing to be bound by the terms of this Agreement, and provided further that Alexion shall not assign or otherwise transfer this Agreement except together with the
Settlement Agreement. Upon such assignment or other transfer, nothing contained herein or in the Settlement Agreement shall prohibit such assignee or transferee from filing or otherwise initiating or participating in any lawsuit or arbitration
proceeding that alleges or seeks a determination that one or more claims of an issued patent within the PDL Queen Patent Family is invalid or unenforceable, provided that no Licensed Product forms any jurisdictional basis on which such
lawsuit or proceeding is filed or continued or thereafter becomes a subject of such lawsuit or proceeding. In addition, and without limiting Section 3.5(f) of the Settlement Agreement, if such assignee or transferee is an Antibody Person that
directly or indirectly acquires Alexion or a controlling interest in Alexion (whether by operation of law, merger (regardless of which entity is the surviving entity), stock, or asset purchase or through any other structure or transaction) (where
“controlling” has the meaning specified in Section 1.1), nothing contained herein or in the Settlement Agreement shall prohibit such assignee or transferee, for so long as such assignee or transferee is an Antibody Person, from filing or
otherwise initiating or participating in any interference, reexamination or opposition proceeding that seeks a determination that one or more claims of an issued patent within the PDL Queen Patent Family is invalid or unenforceable, provided
that no Licensed Product forms any jurisdictional basis on which such proceeding is filed or continued or thereafter becomes a subject of such proceeding. 
 (ii) Alexion and PDL each acknowledge and agree that this Agreement will be binding upon any Person to which Alexion sells, transfers or assigns all or substantially all of its rights and interests relating to any of
the Licensed Products, and Alexion shall, as a condition to any such sale, transfer or assignment, cause any such recipient to acknowledge and agree to the same in writing. Upon such sale, transfer or assignment, nothing contained herein or in the
Settlement Agreement shall prohibit such recipient from filing or otherwise initiating or participating in any lawsuit or arbitration proceeding that alleges or seeks a determination that 

  

 23 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
one or more claims of an issued patent within the PDL Queen Patent Family is invalid or unenforceable, provided that no Licensed Product forms any
jurisdictional basis on which such lawsuit or proceeding is filed or continued or thereafter becomes a subject of such lawsuit or proceeding. In addition, and without limiting Section 3.5(f) of the Settlement Agreement, if such recipient is an
Antibody Person that directly or indirectly acquires Alexion or a controlling interest in Alexion (whether by operation of law, merger (regardless of which entity is the surviving entity), stock, or asset purchase or through any other structure or
transaction) (where “controlling” has the meaning specified in Section 1.1), nothing contained herein or in the Settlement Agreement shall, for so long as such recipient is an Antibody Person, prohibit such recipient from filing or
otherwise initiating or participating in any interference, reexamination or opposition proceeding in which such recipient seeks a determination that one or more claims of an issued patent within the PDL Queen Patent Family is invalid or
unenforceable, provided that no Licensed Product forms any jurisdictional basis on which such proceeding is filed or continued or thereafter becomes a subject of such proceeding. 
 (b) Assignment by PDL. PDL may freely assign or otherwise transfer this Agreement (or any rights or obligations under this
Agreement) without the consent of Alexion, provided that any such assignee or transferee agrees in writing to be bound by the terms of this Agreement, and provided further that PDL shall not assign or otherwise transfer this
Agreement except together with the Settlement Agreement. PDL and Alexion each acknowledge and agree that this Agreement will be binding upon any Person to which PDL sells, transfers or assigns all or substantially all of its rights, title and
interests in or to any of the PDL Queen Patent Family and that PDL shall, as a condition to any such sale, transfer or assignment, cause any such assignee or transferee to agree in writing to be bound by the terms of this Agreement. 
 8.2. Entire Agreement; Amendment. This Agreement and the Settlement Agreement (including, without limitation, all Exhibits hereto and thereto)
constitute the entire agreement between the Parties hereto with respect to the subject matter of this Agreement and the Settlement Agreement and supersede all previous proposals, negotiations, discussions and agreements, whether written or oral,
related to such subject matter. This Agreement shall be changed or modified only by an instrument in writing signed by both Parties. 
 8.3. Severability. If any provision of this Agreement is declared invalid by any court of competent jurisdiction in a decision from which an appeal cannot be taken or is not taken within the time provided by law, then and in such
event such provision shall, solely with respect to the jurisdiction to which such court decision applies, be limited or eliminated to the minimum extent necessary to, if reasonably possible, render such provision valid, but this Agreement, in all
other respects and all other jurisdictions, will remain in full force and effect; provided, however, that, if the provision so invalidated is essential to this 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 and intent of the Parties. 
 8.4. Notices. Any
notice or report required or permitted to be given by a Party under this Agreement shall be in writing and shall be sent by express courier with tracking capabilities (expenses prepaid) or facsimile with confirmation of transmission and further
confirmed by 

  

 24 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
mailing by certified first class U.S. mail (return receipt requested and postage prepaid) or express courier with tracking capabilities (expenses prepaid),
to the address of the other Party that follows (or to such other address as PDL or Alexion may furnish to the other in writing) and shall be effective three (3) business days after such sending by such express courier or facsimile: 

If to PDL: 
 PDL BioPharma, Inc.

 932 Southwood Boulevard 
 Incline Village, NV 89451 
 Attention: Chief Executive Officer (cc: General Counsel) 
 Facsimile Number: (775) 832-8501 
 With a
copy (which shall not constitute notice) to: 
 Weil, Gotshal & Manges, LLP 
 201 Redwood Shores Parkway 
 Redwood Shores,
CA 94065 
 Attention: Vernon M. Winters 
 Facsimile Number: (650) 802-3100 
 If to Alexion: 
 Alexion Pharmaceuticals, Inc. 
 352 Knotter
Drive 
 Cheshire, CT 06410 
 Attention: Chief Executive Officer (cc: General Counsel) 
 Facsimile Number: (203) 271-8198 
 With a copy (which shall not constitute notice) to: 
 Kirkland & Ellis LLP 
 153 East 53rd Street 
 New York, NY 10022 
 Attention: Gerald J. Flattmann Jr. 
 Facsimile Number: (212) 446-6460 
 8.5. Choice of Law. The validity, performance, construction and effect of this Agreement shall be governed by the laws of the State of New York that are applicable to contracts between New York residents to be performed wholly within
New York, without regard to the conflict of laws provisions thereof. 
  

 25 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 8.6. Dispute Resolution. 
 (a) Negotiations. Any dispute, controversy or claim arising out of any provision of this Agreement or the interpretation,
enforceability, performance, breach, termination or validity thereof, including, without limitation, this dispute resolution provision, shall be subject to the procedures set forth in this Section 8.6. A designated representative of each of PDL and
Alexion will meet as reasonably requested by either Party to review any such dispute, controversy or claim. If the disagreement is not resolved by the designated representatives by mutual agreement within thirty (30) days after a meeting to
discuss the disagreement, either Party may at any time thereafter provide the other Party written notice specifying the terms of such disagreement in reasonable detail. Upon receipt of such notice, the chief executive officers of PDL and Alexion
shall meet at a mutually agreed upon time and location for the purpose of resolving such disagreement. The chief executive officers of PDL and Alexion will discuss such disagreement and/or negotiate for a period of up to sixty (60) days in an
effort to resolve such disagreement or negotiate an acceptable interpretation or revision of the applicable portion of this Agreement mutually agreeable to both Parties, without the necessity of formal procedures relating thereto. During the course
of such negotiations, the Parties will reasonably cooperate and provide information that is not materially confidential in order that each of the Parties may be fully informed with respect to the issues in dispute. The institution of a formal legal
proceeding under Section 8.6(b) or Section 8.6(c) to resolve the disagreement may occur by written notice to the other Party only after the earlier of: (i) the chief executive officers mutually agreeing that resolution of the disagreement
through continued negotiation is not likely to occur; or (ii) following expiration of the sixty (60) day negotiation period. 
 (b) Arbitration. Subject to Section 8.6(a), any dispute, controversy or claim arising out of this Agreement or the breach or alleged breach of this Agreement, but not including any dispute, controversy or claim
concerning the infringement, or any permitted challenges to validity or enforceability (as set forth in Section 4.2(e) of the Settlement Agreement), of any of the PDL Queen Patent Family, shall be submitted by the Parties to arbitration in New
York, New York in accordance with the then-current Comprehensive Arbitration Rules and Procedures of JAMS (www.jamsadr.com) except as otherwise provided herein. 
 (i) If the dispute, controversy or claim concerns the infringement, or any permitted challenges to validity or enforceability (as set
forth in Section 4.2(e) of the Settlement Agreement), of any of the PDL Queen Patent Family, all matters subject to such dispute, controversy or claim hereunder shall be removed to Federal District Court as provided in Section 8.6(c). The
arbitration must be conducted by a three-member arbitration panel selected from the then-extant JAMS neutral roster as follows: each Party shall select one Party-appointed JAMS arbitrator from the then-extant JAMS Intellectual Property Roster within
thirty (30) days from a demand for arbitration. The third arbitrator shall be an arbitrator from the then-extant JAMS Federal Judge Roster that the two Party-appointed arbitrators shall select by agreement. If the two Party-appointed
arbitrators cannot agree on the third arbitrator, then the third arbitrator shall be selected by JAMS from the then-extant JAMS Federal Judge Roster. 
 (ii) The arbitration must be conducted pursuant to the JAMS Comprehensive Arbitration Rules extant when the arbitration demand is made, except that if such rules conflict with any provision of this Agreement, the
latter controls. Any arbitration 

  

 26 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
proceeding hereunder must be held in English and a transcribed record must be prepared in English. The decision of the arbitrator panel will be that of the
majority of the arbitrators, and must be in writing and set forth the basis therefor. Such decision shall be final, binding, and non-appealable, provided that the provisions of this Section 8.6(b) have been complied with. 
 (iii) Discovery must be permitted by the arbitration panel (and such discovery shall be within the scope of California Code of Civil
Procedure Sections 1283.05 and 1283.1); provided that all discovery must be completed within sixty (60) days of the appointment of the arbitration panel. 
 (iv) The award rendered by the arbitrator panel shall include costs of arbitration, reasonable attorneys’ fees and reasonable costs
for expert and other witnesses, and judgment on such award may be entered in any court having jurisdiction thereof. Nothing in this Agreement shall be deemed as preventing either Party from seeking injunctive relief (or any other provisional remedy)
from any court having jurisdiction over the Parties and the subject matter of the dispute to the extent necessary to protect either Party’s name, proprietary information, trade secrets, know-how or any other similar proprietary rights. If the
issues in dispute involve scientific or technical matters related to monoclonal antibody technology, any arbitrator chosen hereunder shall have not less than five (5) years of educational training and/or experience sufficient to demonstrate a
reasonable level of relevant scientific and/or technical knowledge related to monoclonal antibody technology. If the issues in dispute involve patent matters (other than infringement, or any permitted challenges to validity or enforceability (as set
forth in Section 4.2(e) of the Settlement Agreement), of any of the PDL Queen Patent Family which shall be removed to Federal District Court as provided in Section 8.6(c)), then such arbitrator shall also be a licensed patent attorney or
otherwise knowledgeable about patent law matters and to the extent possible, with monoclonal antibody technology. The decision of the arbitrator panel shall be in writing and shall set forth the basis therefor. The arbitrator panel shall have the
authority to award such remedies as he or she believes appropriate in the circumstances, including compensatory damages, consequential and incidental damages, interest, tort damages (but not punitive or similar damages) and specific performance and
other equitable relief. 
 (c) Patent Matters. Subject to Section 8.6(a), (i) any dispute, controversy or claim
that involves the infringement, or any permitted challenges to validity or enforceability (as set forth in Section 4.2(e) of the Settlement Agreement), of any of the PDL Queen Patent Family issued in the United States shall be adjudicated in
the United States District Court for the District of Delaware, and (ii) any dispute, controversy or claim that involves the infringement, or any permitted challenges to validity or enforceability (as set forth in Section 4.2(e) of the
Settlement Agreement), of any of the PDL Queen Patent Family issued in any other country shall be brought before an appropriate regulatory or administrative body or court in such country. The prevailing Party shall be entitled to recover from the
other Party the reasonable attorneys’ fees, costs and expenses incurred by such prevailing Party in connection with any action or proceeding under this Section 8.6(c). 
  

 27 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 8.7. Waiver. No failure on the part of either Party to exercise any power, right, privilege or
remedy under this Agreement, and no delay on the part of either Party in exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege or remedy; and no single or partial exercise of
any such power, right privilege or remedy shall preclude any other or further exercise thereof or of any other power, right, privilege or remedy. The observance of any provision of this Agreement may be waived (either generally or in any particular
instance and retroactively and/or prospectively) only by an instrument in writing signed by both Parties. 
 8.8. Force Majeure.
Neither Party shall be responsible to the other Party 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, without limitation, 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 further that such Party will notify the other Party as soon as is reasonably practicable and that such Party entirely performs its obligations as promptly as reasonably practicable thereafter.

 8.9. Publicity. The Parties will issue a joint press release concerning the Parties’ entry into this Agreement in the form
attached as Exhibit B. Other than the foregoing and except in accordance with Section 6.2 or as required by law or regulation, neither Party shall publicly disclose the terms or conditions of this Agreement unless expressly authorized to do
so by the other Party, which authorization shall not be unreasonably withheld, conditioned or delayed, or except to the extent previously publicly disclosed in compliance with this Agreement or the Settlement Agreement. In the event such other Party
authorizes such disclosure, then the Parties will work together to develop a mutually acceptable disclosure. 
 8.10. Headings. The
captions used herein are inserted for convenience of reference only and shall not be construed to create obligations, benefits or limitations or otherwise used in the interpretation of this Agreement. 
 8.11. Construction. All references to Exhibits and Sections in this Agreement shall be references to Exhibits to and Sections of this Agreement
except as otherwise expressly provided herein. 
 8.12. Successors and Assigns. This Agreement shall be binding on, inure to the
benefit of, and be enforceable by the Parties and their respective heirs, successors and valid assigns. 
 8.13. License Survival During
Bankruptcy. It is the Parties’ intention that all rights and licenses granted under or pursuant to this Agreement are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of rights
to “intellectual property” as defined under Section 101(35A) of the U.S. Bankruptcy Code. The Parties agree that Alexion, as a licensee of such rights under this Agreement, shall retain and may fully exercise all of its rights and
elections under the U.S. Bankruptcy Code. 
  

 28 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 8.14. Counterparts. This Agreement may be executed in counterparts, all of which taken
together shall be regarded as one and the same instrument. Execution and delivery of this Agreement by exchange of facsimile copies bearing the facsimile signature of a Party hereto shall constitute a valid and binding execution and delivery of this
Agreement by such Party. Such facsimile copies shall constitute enforceable original documents. 
 [The remainder of this page is
intentionally left blank.] 
  

 29 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of the Effective Date.

  

									
	PDL:	 		 	Alexion:
			
	PDL BioPharma, Inc.	 		 	Alexion Pharmaceuticals, Inc.
					
	 By:
	 	/s/ John P. McLaughlin	 		 	By:	 	/s/ Leonard Bell
	 Name:
	 	John P. McLaughlin	 		 	Name:	 	Leonard Bell
	Title:	 	CEO	 		 	Title:	 	CEO

  

 [*] = Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of
this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 Exhibit A 
 Other Licensed Products 
 None. 
  

 A-1 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 Exhibit B 
 Press Release 
  

					
	

	  		  	

 ALEXION PHARMACEUTICALS AND PDL BIOPHARMA RESOLVE PATENT DISPUTE 
 Alexion Licenses PDL’s Queen et al. Patents for Soliris® 
 January 5, 2009. Incline Village, Nevada, and Cheshire,
Connecticut – PDL BioPharma, Inc. (NASDAQ: PDLI) and Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) today jointly announced that the companies have entered into a definitive license agreement and settlement agreement that resolve the legal
disputes between them relating to Alexion’s humanized antibody, Soliris® (eculizumab) and PDL’s patents known as the Queen et al. patents. 
 Under the agreements announced today, PDL has granted Alexion a license under certain claims in the Queen patent
portfolio, and provided Alexion a covenant not to sue in respect of other claims in the Queen patent portfolio, thus permitting Alexion to commercialize Soliris® for all indications under
the Queen patents. In consideration of this license, Alexion will pay PDL $25 million. No additional payments will be owed by Alexion to PDL under the Queen patents in respect of Soliris®
sales for any indication. As part of the settlement, Alexion has confirmed that the Queen patent claims are valid and that Soliris® employs technology covered under the Queen patents.
Further, Alexion has agreed not to challenge or assist other parties in challenging the validity of the Queen patents in the future. 
 PDL’s Queen patents are related to the humanization of antibodies. Soliris® was approved in the U.S. and European Union in 2007 as a treatment for patients with paroxysmal nocturnal hemoglobinuria (“PNH”), a rare, debilitating and life-threatening blood disease. The use of
Soliris® as a treatment for other rare and severe disorders is in early stages of investigation. 
 Under the license agreement announced today, PDL has separately granted Alexion the right to take a royalty-bearing license under PDL’s Queen patents to commercialize additional Alexion humanized antibodies that may be covered by the
Queen patents in the future. In the event that Alexion takes such a license, Alexion will pay PDL a royalty of 4% of net sales of such non-Soliris products. Additional terms of the agreements were not disclosed. 
  

 B-1 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 “PDL helped revolutionize the development of therapeutic antibodies to treat patients with previously
untreatable and devastating conditions,” said Leonard Bell, M.D., Chief Executive Officer of Alexion. 
 John P. McLaughlin, President and Chief Executive Officer of PDL said, “We appreciate Alexion’s efforts to resolve the dispute and its acknowledgement about our patents’ strength. Soliris® is an important therapeutic product, and it serves a critical – and otherwise underserved – market.” 
 With
the closing of these agreements, the previously announced claims filed by PDL and counterclaims filed by Alexion in the U.S. District Court for the District of Delaware will be dismissed. 
 About Soliris® 
 Soliris® is the first product approved for the
treatment of paroxysmal nocturnal hemoglobinuria (PNH) in the U.S. and Europe. PNH is a rare, debilitating, and life-threatening blood disorder defined by the destruction of red blood cells, or hemolysis. In patients with PNH, hemolysis can cause
life-threatening thromboses, recurrent pain, kidney disease, disabling fatigue, impaired quality of life, severe anemia, pulmonary hypertension, shortness of breath and intermittent episodes of dark-colored urine (hemoglobinuria). Soliris® is the only treatment that blocks this hemolysis before it occurs. 
 About Alexion

 Alexion Pharmaceuticals, Inc. is a biopharmaceutical company working to develop and deliver life-changing drug therapies for patients with serious and
life-threatening medical conditions. This press release and further information about Alexion Pharmaceuticals, Inc. can be found at: www.alexionpharm.com. 
 About PDL BioPharma 
 PDL BioPharma, Inc. was a leader in the humanization of monoclonal antibodies and enabled the discovery of a new
generation of targeted treatments for cancer and autoimmune diseases. This press release and further information about PDL BioPharma, Inc. can be found at: www.pdl.com. 
 Forward Looking Statement 
 This press release contains forward-looking statements. Each of these forward-looking
statements involves risks and uncertainties. Actual results may differ materially from those, express or implied, in these forward-looking statements, including because 

  

 B-2 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
Alexion or PDL fail to timely fulfill their respective obligations under the settlement agreement or patent license agreement. PDL and Alexion expressly
disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in their respective expectations with regard thereto or any change in events, conditions or
circumstances on which any such statements are based for any reason, except as required by law, even as new information becomes available or other events occur in the future. All forward-looking statements in this press release are qualified in
their entirety by this cautionary statement. 
 # # # 
  

 B-3 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 Exhibit C 
 Exclusive Licenses and Rights Granted by PDL to a Third Party Prior to the Effective Date 
 [*] 
  

 C-1 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.Settlement Agreement

 Exhibit 10.43 
 SETTLEMENT AGREEMENT 
 dated 
 December 31, 2008 
 between 
 PDL BIOPHARMA, INC., 
 and

 ALEXION PHARMACEUTICALS, INC. 
  

 [*] = Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of
this exhibit has been filed separately with the Commission. 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page
	 1.
	  	DEFINITIONS	  	1
			
	 2.
	  	FINAL RESOLUTION OF PATENT DISPUTES; AND RELEASE	  	6
		  	2.1.	  	Final Resolution	  	6
		  	2.2.	  	Release by Parties	  	7
			
	 3.
	  	CERTAIN REPRESENTATIONS; AND NO CONTEST COVENANT	  	7
		  	3.1.	  	Licensed Homology Product Within Asserted Homology Claims	  	7
		  	3.2.	  	Other Licensed Products Within PDL Queen Patent Family Claims	  	7
		  	3.3.	  	PDL Queen Patent Family Valid and Enforceable	  	8
		  	3.4.	  	Identification of Queen Patent Family Challenges to Date	  	8
		  	3.5.	  	No Future PDL Queen Patent Family Challenges	  	9
		  	3.6.	  	Responses Required by Law	  	11
		  	3.7.	  	Instructions to Disclosure Group and Alexion Affiliates	  	11
			
	 4.
	  	FINAL ADVERSE DECISION	  	11
		  	4.1.	  	Absence of Final Adverse Decision	  	11
		  	4.2.	  	Effect of Final Adverse Decision; Procedure	  	11
			
	 5.
	  	ARBITRATION	  	13
		  	5.1.	  	Provider; Scope of Arbitration	  	13
		  	5.2.	  	Arbitration Procedures and Rules; Limitation on Jurisdiction	  	13
		  	5.3.	  	Sole Permitted Remedies; Limits on Remedies; Enforcement	  	14
		  	5.4.	  	Equitable Relief	  	14
		  	5.5.	  	Reasonable Attorneys’ Fees and Costs	  	14
			
	 6.
	  	BREACH OF NO CONTEST COVENANT	  	15
		  	6.1.	  	PDL’s Reliance	  	15
		  	6.2.	  	Termination and Liquidated Damages	  	15
		  	6.3.	  	Injunctive Relief	  	16
			
	 7.
	  	DISMISSAL OF THE LITIGATION	  	16
		  	7.1.	  	Initial Stay	  	16
		  	7.2.	  	Dismissal with Prejudice	  	16
			
	 8.
	  	CONFIDENTIALITY	  	17
		  	8.1.	  	Limited Permitted Disclosures	  	17
		  	8.2.	  	Disclosure Requires NDA	  	17
		  	8.3.	  	Limits on Publicity	  	17
		  	8.4.	  	Stipulated Confidentiality Protective Order	  	18
			
	 9.
	  	GOVERNANCE PROVISIONS	  	18
		  	9.1.	  	Power to Enter	  	18
		  	9.2.	  	Assignment	  	18
		  	9.3.	  	Choice of Law	  	19

  

 i 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	  	 	  	Page
		 	 9.4.
	  	Retention of Jurisdiction by Court	  	20
		 	 9.5.
	  	Integration and Headings	  	20
		 	 9.6.
	  	Certain Actions Not Construed or Implied	  	20
		 	 9.7.
	  	Cooperation	  	21
		 	 9.8.
	  	Severability	  	21
		 	 9.9.
	  	Drafting and Construction	  	21
		 	 9.10.
	  	Limitation of Liability	  	21
		 	 9.11.
	  	Interpretation	  	21
		 	 9.12.
	  	Amendments to Settlement Agreement; Waiver	  	21
		 	 9.13.
	  	Notices	  	22

  

 ii 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
 SETTLEMENT AGREEMENT 

 This Settlement Agreement is entered into effective December 31, 2008 (“Effective Date”) between PDL BioPharma,
Inc., a corporation organized under the laws of the State of Delaware, and Alexion Pharmaceuticals, Inc., a corporation organized under the laws of the State of Delaware. 
 WHEREAS, PDL, as the assignee of the PDL Queen Patent Family, solely owns all right, title and interest in, to and under the PDL Queen Patent Family, except for those exclusive licenses and rights set forth on
Exhibit E and non-exclusive licenses that PDL has granted to a Third Party prior to the Effective Date; 
 WHEREAS, Alexion designed, developed, and sells the humanized antibody product known as Soliris® (eculizumab) (“Soliris”), has other
humanized antibody products in development or planned to be in development, and may wish to in-license rights to other humanized antibody products; 
 WHEREAS, on March 16, 2007, Alexion received approval from the United States Food and Drug Administration for Soliris for the treatment of paroxysmal nocturnal hemoglobinuria; 
 WHEREAS, on March 16, 2007, PDL filed a patent infringement lawsuit, PDL BioPharma, Inc. v. Alexion Pharmaceuticals, Inc., D. Del. C.A.
No. 07-156 (JJF), and Alexion filed defenses and counterclaims (the “Litigation”); 
 WHEREAS, in the Litigation, the
Parties disagreed concerning whether (i) Soliris infringed and infringes the Asserted Homology Claims, (ii) the Asserted Homology Claims and, according to Alexion, certain other claims of the Asserted Patents were or are valid, and
(iii) the Asserted Patents were or are enforceable; 
 WHEREAS, PDL and Alexion each respectively obtained extensive and thorough advice
of counsel and detailed factual information and legal analyses concerning these issues; presented their respective positions and disagreements on these issues to one another in the course of the Litigation; engaged in extensive discussions with one
another regarding infringement, validity, and enforceability; and decided to resolve and settle their disputes, subject to the terms and conditions of this Settlement Agreement (as defined below), and further decided to resolve and settle their
disputes forever regarding the infringement, validity and enforceability of the PDL Queen Patent Family in order to avoid protracted litigation of those disputed issues and the business uncertainty and damage that litigation of those issues would
cause, and thus to compromise and settle those disputes as set forth in this Settlement Agreement and the License Agreement. 
 THEREFORE,
the Parties agree as follows: 
  

	 	1.	DEFINITIONS 

 The following terms used in this
Settlement Agreement have the definitions assigned to them in this Section 1 and shall include the singular as well as the plural. 
 1.1. “Alexion.” Alexion Pharmaceuticals, Inc. 
  

 [*] = Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of
this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 1.2. “Affiliate.” Any corporate or other entity which,
directly or indirectly, controls, is controlled by, or is under common control with a Party during the term of this Agreement, where “control” means the ownership of more than fifty percent (50%) of the voting shares of a corporation
or other entity, or of decision-making authority as to an unincorporated entity, provided, however, that such corporation or other entity shall be an Affiliate only so long as such control exists. 
 1.3. “Antibody Person.” Any Person that owns or controls any antibody (including, without limitation, any
monospecific, dual specific and bispecific antibody, less-than-full-length antibody form (including, without limitation, Fv, Fab, Fab’ and F(ab’)2), and any single chain antibody) product or that has, conducts or controls any antibody
(including, without limitation, any monospecific, dual specific and bispecific antibody, less-than-full-length antibody form (including, without limitation, Fv, Fab, Fab’ and F(ab’)2), and any single chain antibody) discovery, development,
manufacturing, sales or commercialization program. For the avoidance of doubt, “Antibody Person” includes any Sublicensee or any Person that is the surviving entity in a Change of Control transaction with Alexion, provided that such
Sublicensee or Person otherwise satisfies the criteria of the preceding sentence. 
 1.4. “Asserted
Defenses.” The defenses to infringement, and the assertions of invalidity and unenforceability, and other defenses and counterclaims, as set forth in: (a) Alexion’s Answer and Counterclaims, as amended, in the Litigation,
(b) Alexion’s interrogatory responses, as amended, in the Litigation, and (c) Alexion’s claim construction briefs and supporting expert declarations, and exhibits submitted to the Court supporting Alexion’s claim
construction briefs and expert reports, in the Litigation. 
 1.5. “Asserted Homology Claims.” Claims
1, 2, 6, 8, 17, 18, 26, 33, and 35 of U.S. Patent No. 5,693,761; claims 1, 2, 3, and 10-19 of U.S. Patent No. 5,693,762; and claims 1, 2, 5, 6, and 25-28 of U.S. Patent No. 6,180,370. 
 1.6. “Asserted Patents.” U.S. Patents Nos. 5,693,761; 5,693,762; and 6,180,370. 
 1.7. “Breach.” The meaning specified in Section 6.2 herein. 
 1.8. “Challenge.” Challenge, contest, or oppose in any court of law or other governmental authority (including,
but not limited to, in a proceeding before the PTO or comparable or equivalent foreign governmental agency), or arbitral forum, any of the PDL Queen Patent Family on any basis with respect to the validity, enforceability, inventorship,
patentability, scope, infringement, ownership, or appropriate damages for infringement of any of the PDL Queen Patent Family. 
  

 2 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 1.9. “Change in Control.” Any of the following after the
Effective Date: 
 (a) any Person or group (within the meaning of Sections 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934) (other than Alexion, any trustee or other fiduciary holding securities under any employee benefit plan of Alexion, or any company owned, directly or indirectly, by the stockholders of Alexion in substantially the same
proportions as their ownership of the common stock of Alexion) becomes the beneficial owner (except that a Person shall be deemed to be the beneficial owner of all shares that such Person has the right to acquire pursuant to any agreement or
arrangement or upon exercise of conversion rights, warrants or options or otherwise, without regard to the sixty (60) day period referred to in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of securities of
Alexion or any direct or indirect parent of Alexion representing more than fifty percent (50%) of the combined voting power of Alexion’s or such direct or indirect parent’s then outstanding securities entitled to vote generally in the
election of directors; 
 (b) the consummation by Alexion or any direct or indirect parent of Alexion of a merger or
consolidation with any other Person or group, other than a merger or consolidation which would result in the voting securities of Alexion or such direct or indirect parent of Alexion outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of the surviving or resulting entity) more than fifty percent (50%) of the combined voting power of the surviving or resulting entity outstanding immediately after
such merger or consolidation; or 
 (c) the stockholders of Alexion or any Alexion Affiliate approve a plan or
agreement for the sale or disposition by Alexion or any Alexion Affiliate of all or substantially all of the consolidated assets of Alexion to any Person (other than such a sale or disposition immediately after which such assets will be owned
directly or indirectly by the stockholders of Alexion in substantially the same proportions as their ownership of the common stock of Alexion immediately prior to such sale or disposition) and the satisfaction of all material conditions to
completion of the transaction, in which case the Alexion board of directors shall determine the effective date of the Change in Control resulting therefrom. 
 1.10. “Claims.” The meaning specified in Section 2.2(a) herein. 
 1.11. “Cure Period.” The meaning specified in Section 6.2 herein. 
 1.12. “Detailed Written Notice.” The meaning specified in Section 4.2(b) herein. 
 1.13. “Disclosure Group.” The Persons identified on Schedule 1.13. 
 1.14. “Dismissal with Prejudice.” A document to be filed in the Litigation pursuant to Section 7.2,
dismissing the Litigation with prejudice, attached hereto as Exhibit A. 
 1.15. “Disputed
Product.” The meaning specified in Section 4.2(a) herein. 
 1.16. “Effective Date.” The
meaning specified in the preamble herein. 
 1.17. “European Opposition Proceedings.” Proceedings in,
and appeals from, the European Patent Office in which the validity or patentability of the PDL Foreign Queen Patents is at issue. 
  

 3 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 1.18. “EPO.” The European Patent Office. 
 1.19. “FDA.” The United States Food and Drug Administration. 
 1.20. “Final Adverse Decision.” A decision that results in a material change to any claim(s) of the PDL Queen
Patent Family that was or were the subject of a proceeding between PDL and a Third Party or a PTO Proceeding (or an equivalent foreign patent office proceeding) resulting in such decision, by a court or other body of competent jurisdiction from
which no appeal has been or may be taken, where such decision: (i) invalidates any such claim(s); (ii) cancels any such claim(s); (iii) holds unenforceable any such claim(s); or (iv) amends any such claim(s). Such decision must
arise out of an action taken by a Third Party or a PTO proceeding (or an equivalent foreign patent office proceeding) without violation of Section 3.5 of this Settlement Agreement. 
 1.21. “Legal Materials.” Any and all opinions of counsel, attorney work product, attorney-client privileged
communications and/or any other legal analyses regarding the validity, enforceability, inventorship, patentability, scope, infringement, ownership, or appropriate damages for infringement of the PDL Queen Patent Family or any patent or application
therein. Notwithstanding the foregoing, publicly available information, documents or materials without further synthesis or analysis does not constitute Legal Materials. 
 1.22. “License Agreement.” The Patent License Agreement between PDL BioPharma, Inc., and Alexion Pharmaceuticals,
Inc., effective as of December 31, 2008. 
 1.23. “Licensed Homology Product.” The same meaning
as that set forth in the License Agreement. 
 1.24. “Licensed Product(s).” The same meaning as that
set forth in the License Agreement. 
 1.25. “Litigation.” The meaning specified in the Preamble.

 1.26. “Material Assistance.” One or more of the following activities carried out by, or at the
direction of, any member of the Disclosure Group insofar as such activities assist any Third Party to Challenge any of the PDL Queen Patent Family: 
 (a) intentionally providing direct monetary assistance to any Third Party to Challenge any of the PDL Queen Patent Family; 
 (b) intentionally providing or verbally summarizing to a Third Party any Legal Materials insofar as such activity materially
assists such Third Party to Challenge the PDL Queen Patent Family; or 
 (c) voluntarily providing expert or opinion
testimony in, or in preparation for, a proceeding brought by a Third Party to Challenge any of the PDL Queen Patent Family insofar as such activity materially assists such Third Party to Challenge the PDL Queen Patent Family. 
  

 4 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 Notwithstanding any of the foregoing, any actions conducted by any non-employee
director of (i) Alexion or (ii) any of its Affiliates included in the Disclosure Group, on behalf of, or at the direction of, any Third Party to which such Person owes a fiduciary duty or a duty of loyalty shall not constitute Material
Assistance. 
 1.27. “Net Sales.” The same meaning as that set forth in the License Agreement.

 1.28. “No Contest Covenant.” The aggregate of the covenants, representations, and warranties
specified in Section 3.5(a) herein. 
 1.29. “Other Licensed Product.” The same meaning as that
set forth in the License Agreement. 
 1.30. “Parties.” PDL and Alexion. 
 1.31. “Party.” Either PDL or Alexion. 
 1.32. “PDL Foreign Queen Patents.” The patents and patent applications in the PDL Queen Patent Family that have
been issued (or, if not yet issued, that would if granted be issued) by a patent office other than the PTO, including, without limitation, any addition, continuation, continuation-in-part or division thereof or any substitute application therefor;
any patent issued with respect to such patent applications, any reissue, extension or patent term extension of any such patent; any confirmation patent or registration patent or patent of addition based on any such patent; any issued or pending
claims within any of the foregoing; and any supplementary protection certificate with respect to any such patent. 
 1.33. “PDL Queen Patent Family.” The patents and patent applications listed or otherwise described in the first paragraph of Schedule 1.33, including, without limitation, any addition, continuation,
continuation-in-part or division thereof or any substitute application therefor; any patent issued with respect to such patent applications, any reissue, extension or patent term extension of any such patent; any confirmation patent or registration
patent or patent of addition based on any such patent; any issued or pending claims within any of the foregoing; and any supplementary protection certificate with respect to any PDL Foreign Queen Patent. 
 1.34. “PDL U.S. Queen Patents.” The patents and patent applications in the PDL Queen Patent Family issued (or, if
not yet issued, that would if granted be issued) by the PTO, including, without limitation, any addition, continuation, continuation-in-part or division thereof or any substitute application therefor; any patent issued with respect to such patent
applications, any reissue, extension or patent term extension of any such patent; any confirmation patent or registration patent or patent of addition based on any such patent; and any issued or pending claims within any of the foregoing.

 1.35. “PDL.” PDL BioPharma, Inc. 
  

 5 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 1.36. “Person.” An individual, partnership, limited liability
company, corporation, joint stock company, trust (including, without limitation, a business trust), unincorporated association, joint venture, firm, enterprise or other entity. 
 1.37. “Proviso.” The meaning specified in Section 3.5(d). 
 1.38. “PTO Proceeding.” A proceeding in the PTO involving one or more of the PDL U.S. Queen Patents which
proceeding does not involve Alexion. By way of example only, and without limitation, PTO Proceeding includes reexamination and reissue proceedings. 
 1.39. “PTO.” The U.S. Patent and Trademark Office. 
 1.40.
“Released Person.” The meaning specified in Section 2.2(a) herein. 
 1.41.
“Representatives.” The meaning specified in Section 4.2(b) herein. 
 1.42. “Settlement
Agreement.” This settlement agreement, entered into effective December 31, 2008, between PDL and Alexion. 
 1.43. “Soliris.” The meaning specified in the Preamble. 
 1.44. “Stipulated
Confidentiality Protective Order.” The meaning specified in Section 8.4 herein. 
 1.45.
“Stipulated Joint Stay.” A stipulated stay of the Litigation to be filed pursuant to Section 7.1, attached hereto as Exhibit B. 
 1.46. “Sublicensee.” The same meaning as that set forth in the License Agreement. 
 1.47. “Third Party.” A Person that is not a Party or an Affiliate of a Party. 
 1.48. “Written Notice.” The meaning specified in Section 4.2(a) herein. 
  

	 	2.	FINAL RESOLUTION OF PATENT DISPUTES; AND RELEASE 

 2.1. Final Resolution. Alexion and PDL have obtained detailed factual and legal information and have carefully analyzed and obtained detailed and thorough legal advice and opinions concerning whether
Soliris infringes the Asserted Homology Claims and whether claims of the Asserted Patents are valid and enforceable. Alexion and PDL have presented their respective positions and disagreements on these issues to one another; engaged in extensive
discussions with and litigation against one another regarding infringement, validity, and enforceability; and decided to resolve and settle their disputes regarding infringement by Soliris of the Asserted Homology Claims and the validity and
enforceabililty of the Asserted Patents, subject to the terms and conditions of this Settlement Agreement, and further decided to resolve and settle their disputes forever regarding the infringement, validity and enforceability of the PDL Queen
Patent Family in order to avoid protracted litigation of those disputed issues and the business uncertainty and damage that litigation of those issues would cause. 
  

 6 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 2.2. Release by Parties. 
 (a) Effective upon the filing of the Dismissal with Prejudice pursuant to Section 7.2, for just and valuable consideration,
receipt of which is hereby acknowledged, each Party, for and on behalf of itself and its Affiliates, and each of their respective predecessors, successors, and assigns (a “Releasing Person”), hereby acknowledges full and complete
satisfaction of and fully and forever releases, acquits, and discharges the other Party and its Affiliates and each of their respective officers, directors, employees, servants, agents, predecessors, successors and assigns (such Party and its
Affiliates, together with each of the foregoing Persons, each, a “Released Person”) from any and all known or unknown claims, demands, actions and causes of action, suits, debts, liabilities, orders, decrees, obligations,
controversies, agreements, contracts, covenants, promises, judgments, damages and liens whatsoever, whether suspected or unsuspected, vested or contingent, in law or in equity, existing by statute, common law, contract, or otherwise (collectively,
“Claims”), which have existed, do exist or may exist, whether prior to or as of the Effective Date, and which arise directly out of (i) the Litigation or (ii) the manufacture, use, offer for sale, sale, import or export of
Soliris by or on behalf of Alexion or any of Alexion’s Affiliates or licensees, including, without limitation any such rights, claims or causes of action relating to, arising out of, brought in, or that could have been brought in the
Litigation. In the event that a Releasing Person under this Section who has standing brings any Claim that is covered by, and is in contravention of, the releases set forth in this Section 2.2(a) against any Released Person, then, as
applicable, Alexion or PDL (whichever Party is within such Releasing Person group), shall indemnify, defend and hold such Released Person harmless from and against any liability, damage, loss, cost or expense (including, without limitation,
reasonable attorneys’ fees and expenses) arising out of or related to any such Claim. 
 (b) For the avoidance of
doubt, notwithstanding anything in Section 2.2(a) or this Settlement Agreement, neither Party releases the other Party or any other Released Persons of the other Party from (i) any breach of the representations, warranties or covenants in
this Settlement Agreement or the License Agreement, or (ii) Claims that arise after the Effective Date. 
  

	 	3.	CERTAIN REPRESENTATIONS; AND NO CONTEST COVENANT 

 3.1. Licensed Homology Product Within Asserted Homology Claims. Subject to Section 4, Alexion, on behalf of itself and Alexion’s Affiliates, agrees and stipulates that the manufacture, use, offer for
sale, sale and/or import of the Licensed Homology Product infringes one or more of the unexpired claims of the Asserted Homology Claims. 
 3.2. Other Licensed Products Within PDL Queen Patent Family Claims. Subject to Section 4, Alexion, on behalf of itself and Alexion’s Affiliates, agrees and stipulates that each of the products
currently identified on Exhibit A to the License Agreement, or that Alexion adds to Exhibit A to the License Agreement pursuant to the License Agreement, infringes one or more of the unexpired claims of the PDL U.S. Queen Patents
and/or the PDL Queen Patent Family. 
  

 7 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 3.3. PDL Queen Patent Family Valid and Enforceable. Alexion, on behalf of
itself and Alexion’s Affiliates, further agrees and stipulates that each of the claims of any present or future issued patents within the PDL Queen Patent Family is valid and enforceable, subject to the Proviso. 
 For the avoidance of doubt, the representations and stipulations made by Alexion in the foregoing Sections 3.1 through 3.3 are solely
for the purposes of this Settlement Agreement and the License Agreement and shall not be deemed to be an admission for the purposes of any claim by or against, or any litigation or other proceeding between a Third Party and Alexion or any Affiliate
of Alexion (to which PDL or any of its Affiliates is not a party with respect to the PDL Queen Patent Family) and shall not limit Alexion’s right to defend itself as set out in Section 2.6(e) of the License Agreement. 
 3.4. Identification of Queen Patent Family Challenges to Date. Except as specifically disclosed on Exhibit C, Alexion, on
behalf of itself and Alexion’s Affiliates, represents and warrants as of the Effective Date that since September 16, 2006, no member of the Disclosure Group, and no Third Party at the direction of any member of the Disclosure Group, has
carried out any one or more of the following activities: 
 (a) intentionally provided direct monetary assistance to
any Antibody Person to Challenge, or to prepare to Challenge, any of the PDL Queen Patent Family; 
 (b) intentionally
provided or verbally summarized to any Antibody Person any Legal Materials insofar as such activity materially assisted such Antibody Person to Challenge, or to prepare to Challenge, any of the PDL Queen Patent Family; or 
 (c) voluntarily provided expert or opinion testimony in, or in preparation for, a proceeding brought, or being prepared to be
brought, by any Antibody Person to Challenge any of the PDL Queen Patent Family insofar as such activity materially assisted such Antibody Person to Challenge, or prepare to Challenge, any of the PDL Queen Patent Family. 
 Notwithstanding any of the foregoing, any actions conducted by any non-employee director of (i) Alexion or (ii) any of its
Affiliates included in the Disclosure Group, on behalf of or at the direction of any Third Party to which such Person owes a fiduciary duty or a duty of loyalty shall not be subject to, or considered a breach of, the representations and warranties
set forth in this Section 3.4. For the avoidance of doubt communications that solely involved Alexion’s counsel and counsel for the recipient of any subpoena, whether in-house or external, during the Litigation regarding such subpoena are
not subject to the disclosure obligations. 
  

 8 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 3.5. No Future PDL Queen Patent Family Challenges. 
 (a) Alexion, on behalf of itself and Alexion’s Affiliates (in each case, for purposes of this subsection 3.5(a), meaning
activities by or on behalf of any member of the Disclosure Group or, in the case of Alexion’s or any of its Affiliates’ employees, within the scope of such individual’s employment), agrees, covenants, represents, and warrants that
neither Alexion nor any of Alexion’s Affiliates, nor any member of the Disclosure Group, will, from the Effective Date forward: 
 (i) intentionally file or otherwise initiate any lawsuit, arbitration proceeding, interference, reexamination or opposition proceeding or any other proceeding in which Alexion or any Affiliate of Alexion
alleges or seeks a determination that any of the PDL Queen Patent Family is invalid or unenforceable (except as set forth in Section 4.2(e)); 
 (ii) intentionally perform any act that constitutes Material Assistance; 
 (iii) intentionally refuse to pay any royalties to PDL under the License Agreement on the ground that one or more claims of an issued patent within the PDL Queen Patent Family is invalid or unenforceable (unless such claim(s) were
the subject of a Final Adverse Decision); or 
 (iv) intentionally terminate the License Agreement on the ground that
one or more claims of an issued patent within the PDL Queen Patent Family is invalid or unenforceable (unless such claim(s) were the subject of a Final Adverse Decision). 
 Notwithstanding any of the foregoing, any actions conducted by any non-employee director of (i) Alexion or (ii) any of its
Affiliates included in the Disclosure Group, solely on behalf of or at the direction of one or more Third Parties to which such Person owes a fiduciary duty or a duty of loyalty, shall not constitute an act by or on behalf of Alexion or its
Affiliates and shall not be subject to, or considered a breach of the provisions set forth in, this Section 3.5(a). 
 (b) Nothing contained in this Section 3 or elsewhere in this Settlement Agreement prevents Alexion from characterizing the technical aspects of one or more claims of the PDL Queen Patent Family in (i) prosecuting
Alexion’s or its Affiliate’s own patent applications (or those to which Alexion or its Affiliate has an exclusive license), (ii) any litigation with a Third Party concerning a patent owned or exclusively licensed to Alexion or its
Affiliate or (iii) any litigation with a Third Party concerning a Licensed Product or any other product of Alexion or its Affiliate. 
 (c) Alexion, on behalf of itself and Alexion’s Affiliates, covenants and agrees that promptly after the Effective Date and in any event within twenty (20) days of the Effective Date, Alexion shall
file with the EPO, and any other necessary European agencies requested by PDL, a withdrawal of any opposition that Alexion has filed or has caused to be filed (which Alexion will not refile or cause to be refiled) against any of the PDL Foreign
Queen Patents and shall not after the Effective Date file a Notice of Appeal or Grounds for Appeal in any such opposition. 
  

 9 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 (d) Alexion, on behalf of itself and Alexion’s Affiliates, forever
releases and waives its right to challenge the validity and enforceability of any issued patent within the PDL Queen Patent Family in any future litigation, arbitration, interference, reexamination, opposition or other proceeding; provided,
however, that Alexion shall not be prohibited from referencing and relying on a decision by a court or other body of competent jurisdiction from which no appeal has timely been or may be taken holding one or more claims of any of the PDL
Queen Patent Family to be invalid or unenforceable where such decision has arisen out of an action taken by a Third Party without a Breach of the No Contest Covenant and as set forth in Section 4.2(e), where such reference and reliance by
Alexion is made solely in a dispute concerning whether a Licensed Product continues to be a Licensed Product or whether a royalty is payable and/or whether a Licensed Product continues to be a Licensed Product or whether a royalty continues to be
payable following a Final Adverse Decision as permitted in Sections 4 and 5 of this Settlement Agreement (such proviso, the “Proviso”). 
 (e) PDL expressly acknowledges and agrees that neither Alexion nor Alexion’s Affiliates can control, and that, except with
respect to a breach of this Section 3.5, Alexion therefore shall not be held responsible or liable for, the actions of any Third Party (including but not limited to its development, commercialization or marketing partners) that may later decide
to challenge the validity or enforceability of any of the PDL Queen Patent Family in any court, agency (including, without limitation, the PTO), or tribunal, or in any litigation, arbitration, interference, or other proceeding. For the avoidance of
doubt, the foregoing does not (i) prohibit or otherwise limit PDL from asserting any of its rights under this Settlement Agreement, including, without limitation, PDL’s rights under Section 6, or (ii) limit or otherwise narrow
Alexion’s obligations under this Settlement Agreement, including, without limitation, Alexion’s obligations under Section 3.5(a), or under the License Agreement. 
 (f) Notwithstanding anything to the contrary contained herein or in the License Agreement, PDL hereby acknowledges and agrees that
no Antibody Person shall (for so long as such Person is an Antibody Person) be bound or otherwise restricted by or otherwise have any obligations under the No Contest Covenant or any of the representations, warranties or covenants (including,
without limitation, any stipulations) set forth in Section 3 of this Settlement Agreement or under or with respect to any other provision of this Settlement Agreement, provided that no Licensed Product forms any jurisdictional basis for
the filing or continuation of any proceeding or action brought by such Antibody Person or thereafter becomes a subject of such proceeding or action. Notwithstanding the foregoing, no such Antibody Person may file or participate in a re-examination
(or foreign equivalent of a re-examination) on any of the PDL Queen Patent Family unless (i) such Antibody Person has an antibody that is not a Licensed Product and that is in Phase III development or later or (ii) a re-examination (or
foreign equivalent of a re-examination) was initiated by or on behalf of, or participation was commenced by, such Antibody Person at least (12) months prior to such Person acquiring rights to a Licensed Product. 
  

 10 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 3.6. Responses Required by Law. If Alexion or an Affiliate of Alexion or any
member of the Disclosure Group is required by law, rule, regulation, legal process, or statute (including, without limitation, pursuant to any subpoena) to provide documents, information and/or testimony to a Third Party in connection with a Third
Party litigation, arbitration, interference or other proceeding, then such Person’s provision of responsive documents, information and/or testimony under the circumstances set forth in this Section 3.6 shall not constitute a breach of this
Settlement Agreement, provided that such Person provides written notice to PDL of such requirement as far in advance of the disclosure as is reasonably practicable and provides no more documents, information and/or testimony than is so
required. Notwithstanding the foregoing, Alexion or its Affiliates (or any member of the Disclosure Group) may include non-responsive documents in connection with a response to a subpoena to mitigate the time and effort involved in responding to
such subpoena. Alexion and Alexion’s Affiliates (and any member of the Disclosure Group), after consultation with its or their legal counsel, may rely on such legal counsel’s advice in determining whether it is reasonable to conclude that
the provision of any documents, information and/or testimony would be reasonably required under the circumstances set forth above and given the applicable laws and regulations. Such reliance on legal advice shall not be a complete defense with
respect to a Breach to the extent that PDL proves by clear and convincing evidence that such advice was clearly and substantively incorrect. 
 3.7. Instructions to Disclosure Group and Alexion Affiliates. Alexion shall in writing notify the members of the Disclosure Group of the obligations under the No Contest Covenant and shall in writing direct
such members not to perform any act that would constitute a breach of the No Contest Covenant. 
  

	 	4.	FINAL ADVERSE DECISION 

 4.1.
Absence of Final Adverse Decision. If no Final Adverse Decision has occurred, then the stipulations in Sections 3.2 and 3.3 shall remain in effect and Alexion shall continue to pay royalties to PDL with respect to the Other Licensed
Products as required under the License Agreement. 
 4.2. Effect of Final Adverse Decision; Procedure. 
 (a) Written Notice. Following a Final Adverse Decision, Alexion may provide written notice (“Written
Notice”) to PDL specifying each Other Licensed Product that Alexion asserts no longer constitutes an Other Licensed Product (each, a “Disputed Product”); provided, however, that Alexion shall not reassert or
rely on any of the assertions of invalidity and unenforceability as set forth in, as applicable: (i) Alexion’s Answer and Counterclaims, as amended, in the Litigation, and (ii) Alexion’s interrogatory responses, as amended or
supplemental, in the Litigation as grounds for establishing that a Disputed Product no longer constitutes an Other Licensed Product. 
 (b) Meeting of Representatives. Promptly following receipt of a Written Notice by PDL, the Parties shall each designate a representative (collectively the “Representatives”) and such Representatives shall meet
in an attempt to informally resolve 

  

 11 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
whether each Disputed Product identified in the Written Notice is not an Other Licensed Product. If the Representatives are unable to resolve such issue
within sixty (60) days after their first meeting, then either Party may at any time thereafter provide the other Party with written notice specifying the terms of such disagreement in reasonable detail (“Detailed Written
Notice”). 
 (c) CEO Meeting. Upon receipt of a Detailed Written Notice, the chief executive officers
of PDL and Alexion shall meet at a mutually agreed upon time and location in an attempt to informally resolve whether each Disputed Product identified in the Written Notice is not an Other Licensed Product. 
 (d) Precondition to Litigation. Either Party may initiate litigation proceedings if: (i) the chief executive officers
do not resolve whether each Disputed Product identified in the Written Notice is not an Other Licensed Product within sixty (60) days of receipt of a Detailed Written Notice; or (ii) prior to the expiration of such sixty (60) days,
the chief executive officers mutually agree that they are unlikely to resolve such issue. Neither Party may initiate litigation proceedings before then. 
 (e) [*] Final Adverse Decision. Notwithstanding Section 3.3 or Section 3.5(d) or the foregoing provisions set forth in this Section 4.2, Alexion [*] a Final Adverse Decision with respect
to (i) [*], (ii) [*]; and (iii) [*], where such [*] Alexion is made [*] regarding whether a [*], and/or whether a [*], under the License Agreement following such [*]. For the avoidance of doubt, in any [*], and/or whether a [*], under
the License Agreement following such [*], Alexion shall [*], as applicable: (i) Alexion’s Answer and Counterclaims, as amended, in the Litigation, and (ii) Alexion’s interrogatory responses, as amended or supplemental, in the
Litigation [*], except to the extent that such [*]. 
 (f) Escrow. Rather than paying royalties to PDL (or
PDL’s successor(s) in interest) on each such Disputed Product after Alexion provides the Written Notice regarding such Disputed Product, Alexion may pay such royalties into an interest-bearing escrow account. 
 (g) Final Adjudication. 
 (i) After any final, non-appealable determination of any litigation on whether the Disputed Product continues to be an Other Licensed Product, if PDL prevails in such litigation and Alexion paid royalties into
an interest-bearing escrow account, then PDL shall, as its sole and exclusive remedy with respect to the subject matter of the litigation, recover the escrowed royalties plus the accrued interest from escrow and reasonable attorneys’ fees and
costs incurred because of the litigation without any additional relief available. 
 (ii) If Alexion prevails in such
litigation, it shall, as its sole and exclusive remedy with respect to the subject matter of the litigation, recover the escrowed royalties plus the accrued interest from escrow and reasonable attorneys’ fees and costs incurred because of the
litigation without any additional relief available. If Alexion paid any royalties payable to PDL pursuant to the License Agreement on any Disputed Product instead of paying royalties on each such Disputed Product into an interest-bearing escrow
account, then PDL shall 

  

 12 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
immediately refund to Alexion all such royalties paid to PDL from the date Alexion provided the Written Notice regarding such Disputed Product to PDL through
the date of the final, non-appealable determination (or a final decision from which no appeal was timely taken) of such litigation plus the accrued interest. 
 (iii) For the avoidance of doubt, if a Disputed Product adjudicated in the litigation no longer constitutes an Other Licensed
Product, then Alexion would no longer have an obligation to pay a royalty to PDL under Section 3.2 of the License Agreement with respect to such Disputed Product. In the event that Alexion fails to pay royalties to PDL pursuant to the License
Agreement or to deposit royalties into an interest-bearing escrow as set forth herein, then PDL may argue in any such litigation that it is entitled to additional damages, including treble the amount of such royalties (although the presence of the
foregoing provision is not an admission by Alexion that PDL would be entitled to any treble or other damages). In addition, the Parties agree that the prevailing Party shall be awarded reasonable attorney’s fees and costs. 
  

	 	5.	ARBITRATION 

 5.1. Provider;
Scope of Arbitration. Any dispute about or otherwise relating to whether Alexion has Breached the No Contest Covenant of this Settlement Agreement must be submitted by the Parties exclusively to arbitration administered by JAMS (www.jamsadr.com)
in New York, NewYork, as further provided below. This Section 5 applies only to Breaches of the No Contest Covenant and not to any other dispute. 
 5.2. Arbitration Procedures and Rules; Limitation on Jurisdiction. 
 (a) The
arbitration must be conducted by a three-member arbitration panel selected from the then-extant JAMS neutral roster as follows: each Party shall select one Party-appointed JAMS arbitrator from the then-extant JAMS Intellectual Property Roster within
thirty (30) days from a demand for arbitration. The third arbitrator shall be an arbitrator from the then-extant JAMS Federal Judge Roster that the two Party-appointed arbitrators shall select by agreement. If the two Party-appointed
arbitrators cannot agree on the third arbitrator, then the third arbitrator shall be selected by JAMS from the then-extant JAMS Federal Judge Roster. 
 (b) The arbitration must be conducted pursuant to the JAMS Comprehensive Arbitration Rules extant when the arbitration demand is made, except that if such rules conflict with any provision of this Settlement
Agreement, the latter controls. Any arbitration proceeding hereunder must be held in English and a transcribed record must be prepared in English. The decision of the arbitrator panel will be that of the majority of the arbitrators, and must be in
writing and set forth the basis therefor; provided that the arbitrators shall comply with, and render a decision that is consistent with, the terms and conditions of this Section 5 and Section 6.2 (including that PDL must prove in
the arbitration, by a preponderance of the evidence, that Alexion Breached the No Contest Provision and did not cure such Breach during the applicable Cure Period, as set forth in Section 6.2). Such decision shall be final, binding, and
non-appealable, provided that the provisions of this Section 5.2 have been complied with. 
  

 13 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 (c) Discovery must be permitted by the arbitration panel (and such discovery
shall be within the scope of California Code of Civil Procedure Sections 1283.05 and 1283.1); provided that all discovery must be completed within sixty (60) days of the appointment of the arbitration panel. 
 (d) The sole liability issue to be resolved in such arbitration is whether PDL has proved in that arbitration, by a preponderance
of the evidence, that Alexion has Breached the No Contest Provision. 
 5.3. Sole Permitted Remedies; Limits on Remedies;
Enforcement. 
 (a) If PDL prevails, the arbitration panel must award to PDL (1) the liquidated damages
amounts specified in Section 6 (i.e., $[*] if there has been no Change in Control and $[*] if there has been a Change in Control) and (2) reasonable attorneys’ fees and costs incurred because of the arbitration. 
 (b) If Alexion prevails, the arbitration panel must award to Alexion reasonable attorneys’ fees and costs incurred because of
the arbitration. 
 (c) The arbitration panel only has the power to determine whether there has been a Breach of the No
Contest Covenant and if there is a Breach, then whether such Breach was cured during the Cure Period as set forth in Section 6.2, and if such Breach was not cured during the Cure Period, then to award only those remedies specified in
Section 6.2, as set forth in this Section 5.3 and subject to the terms and conditions of Section 6.2, and does not have the power to award any other damages or relief of any other kind to either Party. 
 (d) Subject to Section 5.2, judgment on such award may be entered and enforced in any court having jurisdiction thereof.

 5.4. Equitable Relief. Nothing in this Settlement Agreement shall be deemed as preventing either Party from seeking
injunctive relief (or any other provisional or equitable remedy) from any court having jurisdiction over the Parties and the subject matter of the dispute, including, without limitation, to the extent necessary to protect either Party’s name,
proprietary information, intellectual property, trade secrets, know-how or any other similar proprietary or contractual rights. 
 5.5. Reasonable Attorneys’ Fees and Costs. The prevailing Party in the arbitration must be awarded reasonable attorneys’ fees and costs incurred by reason of the arbitration. 
  

 14 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

	 	6.	BREACH OF NO CONTEST COVENANT 

 6.1. PDL’s Reliance. Alexion and PDL agree, represent, and warrant that, based on their analyses and judgments regarding their businesses and patents, the market for humanized antibodies, the value of the PDL Queen Patent
Family, the market for patent licensing, the consideration exchanged herein, and the terms of this Settlement Agreement: 
 (a) PDL is relying materially on Alexion’s agreement to comply fully and in all respects with the No Contest Covenant, and PDL will be severely and irreparably injured and will suffer substantial, irreparable loss if Alexion in
any respect Breaches the No Contest Covenant; 
 (b) As of the Effective Date, the reasonable royalty value of the
Asserted Homology Claims is four percent (4 %) of net sales of products covered by the Asserted Homology Claims and is expected to increase above this level; 
 (c) PDL has made concessions and sacrifices to Alexion in its licensing revenue and licensing business in exchange for
Alexion’s promises, covenants, representations, and warranties in this Settlement Agreement; and 
 (d) Alexion
did not pay royalties to PDL for Soliris prior to the Effective Date. 
 6.2. Termination and Liquidated Damages.
Alexion and PDL therefore agree that, in the event that PDL makes a good faith determination that Alexion has breached the No Contest Covenant of this Settlement Agreement (a “Breach”), PDL will provide notice to Alexion of such
Breach no later than ninety (90) days from when a Section 16 officer of PDL first becomes actually aware of such Breach (or it will no longer have a right to claim that Alexion has Breached the No Contest Covenant with regard to such
alleged Breach). Alexion will have ten (10) days after receipt of such notice to cure such Breach (the “Cure Period”) (although the presence of this cure provision is not an admission by PDL that any such Breach of the No
Contest Covenant is curable). If Alexion fails to cure such Breach during the Cure Period or the Breach is not curable, then PDL must submit the dispute to arbitration pursuant to Section 5 to determine whether Alexion has Breached the No
Contest Covenant (or, if applicable, failed to cure such Breach during the Cure Period) within sixty (60) days from the expiration of such Cure Period. For the avoidance of doubt, if PDL does not within such sixty (60) day period submit
such dispute to arbitration pursuant to Section 5 to determine whether Alexion has Breached the No Contest Covenant (or if applicable, failed to cure such Breach during the Cure Period), PDL will no longer have any right to claim that Alexion
has Breached the No Contest Covenant with regard to such alleged Breach. Only if an arbitrator panel has issued a decision pursuant to a proceeding conducted in accordance with Section 5 that PDL has proved in that arbitration, by a
preponderance of the evidence, that Alexion has Breached the No Contest Provision prior to December 2, 2014, shall PDL be immediately entitled to the following relief upon written notice to Alexion that is delivered within ten (10) days
after the arbitrator panel’s decision: 
 (a) With respect to each Other Licensed Product, at PDL’s
discretion, PDL may increase the royalty payable under Section 3.2 of the License Agreement with respect to such Other Licensed Product, prospectively thereafter, to [*] of Net Sales. 
 (b) At PDL’s discretion, PDL may terminate Alexion’s right under Section 2.3 of the License Agreement to add any
products to Exhibit A of the License Agreement. 
  

 15 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 (c) Upon PDL’s written request, Alexion must immediately pay PDL
liquidated damages of: 
 (i) if there has been no Change in Control at the time of Alexion’s Breach, [*] for the
harm to and decreased value of PDL’s licensing business resulting from PDL’s agreements with Alexion and the harm PDL will suffer from the business uncertainty caused by the disagreement and Alexion’s Breach of the No Contest
Covenant; or 
 (ii) if there has been a Change in Control at the time of Alexion’s Breach, [*] for the harm to
and decreased value of PDL’s licensing business resulting from PDL’s agreements with Alexion and the harm PDL will suffer from the business uncertainty caused by the disagreement and Alexion’s Breach of the No Contest Covenant.

 For the avoidance of doubt, PDL shall be entitled to receive the relief set forth in Section 6.2(c) only once regardless of the number of Breaches of
the No Contest Covenant. If PDL shall receive the relief set forth in Section 6.2(c)(i) or Section 6.2(c)(ii) with respect to a Breach of the No Contest Covenant, then Section 6.2(c) shall expire in its entirety. The relief set forth
in this Section 6.2 and Section 6.3 shall be PDL’s sole and exclusive remedies for any Breach(es) of the No Contest Covenant. 
 6.3. Injunctive Relief. The Parties agree and stipulate that regardless of any possibility or opportunity for cure in this Settlement Agreement, PDL will be immediately and irreparably injured by Alexion’s
Breach of the No Contest Covenant herein, and Alexion stipulates and agrees to the entry of injunctive relief, specific performance, and any other appropriate emergency relief in any court with jurisdiction prohibiting Alexion’s continued
violations of No Contest Covenant herein. Notwithstanding the foregoing, in no event shall PDL be entitled to any injunction or other equitable relief in any way restricting the manufacture, use, offer for sale, sale or import of Soliris by or on
behalf of Alexion or any Alexion Affiliate or any of its licensees. 
  

	 	7.	DISMISSAL OF THE LITIGATION. 

 7.1. Initial Stay. Within three (3) business days of receipt of the initial twelve million five hundred thousand U.S. dollar (US $12,500,000) payment specified by the License Agreement, the Parties must cause their counsel to
execute and file a Stipulated Joint Stay, attached hereto as Exhibit B, whereby the Litigation would be stayed for six (6) months after the Effective Date. 
 7.2. Dismissal with Prejudice. Subject to Alexion’s payment of the second twelve million five hundred thousand U.S. dollar (US
$12,500,000) payment specified by the License Agreement, within three (3) business days of receipt of that second payment, the Parties must cause their counsel to execute the Dismissal with Prejudice, which dismissal will promptly be filed by
counsel for PDL and will be deemed to be effective as of the Effective Date. 
  

 16 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

	 	8.	CONFIDENTIALITY 

 8.1. Limited
Permitted Disclosures. Other than the fact that the Parties have resolved the Litigation, and the fact that the Parties have entered into this Settlement Agreement, the Parties must not disclose the terms of this Settlement Agreement to any
Third Party except under the terms and conditions set forth in Section 3.6 or this Section 8: 
 (a) with the
prior written consent of the other Party; 
 (b) to any governmental body demanding such terms which has jurisdiction
to compel production; 
 (c) to the U.S. Securities Exchange Commission or any equivalent foreign regulatory authority,
with a request for confidential treatment of the financial terms; 
 (d) as otherwise may be required by law, legal
processes, or accounting requirements; 
 (e) to legal counselors, auditors, or other similar professionals
representing a Party; or 
 (f) as required by a Third Party (and only to the extent it is so required by such Third
Party) in connection with any diligence for an actual or potential bona fide business transaction with such Third Party concerning or including Licensed Products (including, without limitation, financings and acquisitions). 
 8.2. Disclosure Requires NDA. When providing a disclosure under Sections 8.1(a), 8.1(e) or 8.1(f), the divulging Party will,
absent written agreement of the other Party to the contrary and to the extent permitted by law, enter into a written non-disclosure agreement with the receiving Party under which the receiving Party agrees to keep such disclosed information in
strict confidence. When disclosing under Sections 8.1(b), 8.1(c) or 8.1(d), the disclosing Party will (i) provide written notice to the other Party of such requirement as far in advance of the disclosure as is reasonably practicable, and
(ii) disclose no more information than is reasonably required. Each divulging Party may rely on its legal counsel’s advice in determining whether it is reasonable to conclude that any disclosure described in Sections 8.1(b), 8.1(c) or
8.1(d) would be reasonably required under applicable laws and regulations (including, for example, under legal process or accounting requirements), in which case such disclosure will not be a breach of Section 8.1. 
 8.3. Limits on Publicity. The Parties will issue a joint press release concerning the Parties’ entry into this Agreement in
the form attached as Exhibit D. Other than the foregoing and except in accordance with Sections 3.6 or 8.1, neither Party shall publicly disclose the material terms or conditions of this Agreement unless expressly authorized to do so by
the other Party, which authorization shall not be unreasonably withheld, conditioned or delayed or except to the extent previously disclosed in compliance with this Agreement. In the event such other Party authorizes such disclosure, then the
Parties will work together to develop a mutually acceptable disclosure. 
  

 17 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 8.4. Stipulated Confidentiality Protective Order. Notwithstanding any of the
foregoing in this Section 8, the Parties acknowledge and agree that, to the extent any terms or conditions of this Section 8 conflict with any of the terms and conditions of the Stipulated Confidentiality Protective Order, filed on
September 5, 2007 in the Litigation (the “Stipulated Confidentiality Protective Order”), the terms and conditions of the Stipulated Confidentiality Protective Order shall govern and control but solely with respect to those
actual documents that were obtained in the Litigation and are subject to the Stipulated Confidentiality Protective Order. For the avoidance of doubt, this Section 8.4 shall not apply in the circumstances described in Sections 8.1(a)
through 8.1(f), or to any information or documents or other materials that (i) are generally available to the public; (ii) were or are provided to Alexion or any of its Affiliates by any Person other than PDL in connection with the
Litigation; or (iii) were known to Alexion or any of its Affiliates prior to the Litigation; or (iv) were independently created by or on behalf of Alexion or any of its Affiliates without reliance on any confidential documents provided by
PDL to Alexion pursuant to the Litigation. 
  

	 	9.	GOVERNANCE PROVISIONS 

 9.1.
Power to Enter. Each Party represents and warrants to the other Party that (i) it has all requisite legal and corporate power and authority to enter into this Settlement Agreement and to carry out and perform all of its obligations under
this Settlement Agreement, (ii) no other Person has any interest in the Claims released by such Party herein, or any portion thereof, and (iii) it has not assigned, transferred, conveyed, alienated or otherwise disposed of, or suffered to
be assigned, transferred, conveyed, alienated or otherwise disposed of, any Claims released herein, or any portion thereof. 
 9.2. Assignment. 
 (a) Assignment by Alexion. 
 (i) Alexion may freely assign or otherwise transfer this Settlement Agreement (or any rights or obligations under this Settlement
Agreement) without the consent of PDL, provided that any such assignee or transferee agrees in writing to be bound by the terms of this Settlement Agreement, and provided further that Alexion shall not assign or otherwise
transfer this Settlement Agreement except together with the License Agreement. Upon such assignment or other transfer, neither Section 3.5(a)(i) nor Section 3.5(d) nor any other provision of this Settlement Agreement shall prohibit such assignee or
transferee from filing or otherwise initiating or participating in any lawsuit or arbitration proceeding that alleges or seeks a determination that one or more claims of an issued patent within the PDL Queen Patent Family is invalid or
unenforceable, provided that no Licensed Product forms any jurisdictional basis on which such lawsuit or proceeding is filed or continued or thereafter becomes a subject of such lawsuit or proceeding. In addition, and without limiting Section
3.5(f), if such assignee or transferee is an Antibody Person that directly or indirectly acquires Alexion or a controlling interest in Alexion (whether by operation of law, merger (regardless of which entity is the surviving entity), stock, or asset
purchase or through any other structure or transaction) (where “controlling” has the meaning specified in Section 1.2), neither Section 3.5(a)(i) nor Section 3.5(d) nor any other provision of this Settlement Agreement shall prohibit such
assignee 

  

 18 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
or transferee, for so long as such assignee or transferee is an Antibody Person, from filing or otherwise initiating or participating in any interference,
reexamination or opposition proceeding that seeks a determination that one or more claims of an issued patent within the PDL Queen Patent Family is invalid or unenforceable, provided that no Licensed Product forms any jurisdictional basis on
which such proceeding is filed or continued or thereafter becomes a subject of such proceeding. 
 (ii) Alexion and
PDL each acknowledge and agree that this Settlement Agreement will be binding upon any Person to which Alexion sells, transfers or assigns all or substantially all of its rights and interests relating to any of the Licensed Products, and Alexion
shall, as a condition to any such sale, transfer or assignment, cause any such recipient to acknowledge and agree to the same in writing. Upon such sale, transfer or assignment, neither Section 3.5(a)(i) nor Section 3.5(d) nor any other
provision of this Settlement Agreement shall prohibit such recipient from filing or otherwise initiating or participating in any lawsuit or arbitration proceeding that alleges or seeks a determination that one or more claims of an issued patent
within the PDL Queen Patent Family is invalid or unenforceable, provided that no Licensed Product forms any jurisdictional basis on which such lawsuit or proceeding is filed or continued or thereafter becomes a subject of such lawsuit or
proceeding. In addition, and without limiting Section 3.5(f), if such recipient is an Antibody Person that directly or indirectly acquires Alexion or a controlling interest in Alexion (whether by operation of law, merger (regardless of which
entity is the surviving entity), stock, or asset purchase or through any other structure or transaction) (where “controlling” has the meaning specified in Section 1.2), neither Section 3.5(a)(i) nor Section 3.5(d) shall, for
so long as such recipient is an Antibody Person, prohibit such recipient from filing or otherwise initiating or participating in any interference, reexamination or opposition proceeding in which such recipient seeks a determination that one or more
claims of an issued patent within the PDL Queen Patent Family is invalid or unenforceable, provided that no Licensed Product forms any jurisdictional basis on which such proceeding is filed or continued or thereafter becomes a subject of such
proceeding. 
 (b) Assignment by PDL. PDL may freely assign or otherwise transfer this Settlement Agreement (or
any rights or obligations under this Settlement Agreement) without the consent of Alexion, provided that any such assignee or transferee agrees in writing to be bound by the terms of this Settlement Agreement, and provided
further that PDL shall not assign or otherwise transfer this Settlement Agreement except together with the License Agreement. PDL and Alexion each acknowledge and agree that this Settlement Agreement will be binding upon any Person to which
PDL sells, transfers or assigns all or substantially all of its rights, title or interests in or to any of the PDL Queen Patent Family and that PDL shall, as a condition to any such sale, transfer or assignment, cause any such assignee or transferee
to agree in writing to be bound by the terms of this Settlement Agreement. 
 9.3. Choice of Law. The validity,
performance, construction and effect of this Agreement shall be governed by the laws of the State of New York that are applicable to contracts between New York residents to be performed wholly within New York, without regard to the conflict of laws
provisions thereof. 
  

 19 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 9.4. Retention of Jurisdiction by Court. The Parties hereby stipulate,
acknowledge and agree that the United States District Court for the District of Delaware shall retain jurisdiction over the Parties for all purposes pertaining to the execution and performance of the terms and conditions set forth herein, including,
without limitation, entry of judgment pursuant to the terms of this Settlement Agreement. The Parties to this Settlement Agreement are responsible for complying with the terms of the Settlement Agreement regardless of the dismissal of the Litigation
with prejudice and the Court retains jurisdiction specifically to enforce the remaining obligations that survive the dismissal. 
 9.5. Integration and Headings. The Parties, and each of them, represent and warrant that, as to the subject matter hereof: this Settlement Agreement and the License Agreement and, to the extent referenced in Section 8, the
Stipulated Confidentiality Protective Order set forth the entire agreement between PDL and Alexion; no promise, inducement, understanding, or agreement not expressly contained therein has been made; this Settlement Agreement and the License
Agreement and, to the extent referenced in Section 8, the Stipulated Confidentiality Protective Order merge any and all previous negotiations and agreements between the Parties; and the terms of this Settlement Agreement and the License
Agreement are contractual and not merely recitals. The headings contained in this Settlement Agreement are for reference purposes only and do not comprise any portion of this Settlement Agreement. 
 9.6. Certain Actions Not Construed or Implied. Nothing in this Settlement Agreement shall be construed as: 
 (a) requiring the filing of any patent application, the securing of any patent or the maintaining of any patent in force;

 (b) a warranty or representation that any design, development, manufacture, use, lease or sale of any humanized
antibody product, or the use of any method pertaining to humanized antibodies, will be free from infringement of the patent rights of Third Parties. THERE ARE NO WARRANTIES, EXPRESS OR IMPLIED, EXCEPT FOR ANY WARRANTIES EXPRESSLY SET FORTH HEREIN.
ALL PARTIES HEREBY DISCLAIM ALL OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED (INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF FITNESS FOR PARTICULAR USE OR OF MERCHANTABILITY) OR ASSERTED TO ARISE BY IMPLICATION UNDER ANY STATUTE, RULE OR
REGULATION OF ANY JURISDICTION; 
 (c) an obligation to furnish any manufacturing or technical information or
assistance; or 
 (d) conferring by implication, estoppel or otherwise any license or other right under any patent,
except the licenses and rights expressly granted herein (including, but not limited to, the licenses under the License Agreement). 
  

 20 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 9.7. Cooperation. Each of the Parties hereto must execute and deliver any and
all additional papers, documents, and other assurances, and must do any and all acts and things reasonably necessary in connection with the performance of their obligations hereunder and to carry out the intent of the Parties. 
 9.8. Severability. If any provision of this Settlement Agreement is declared invalid, illegal or unenforceable by any court of
competent jurisdiction, then such provision will be reformed to the extent legally practical to accomplish the legal intent of the Parties and such reformed provision will be deemed a provision of this Settlement Agreement as though originally
included herein. If the provision deemed invalid, illegal or unenforceable is of such a nature that it cannot be so adjusted, the provision will be deemed deleted from this Settlement Agreement as though the provision had never been included herein.
If any provision of this Settlement Agreement is deemed invalid or unenforceable, the Parties agree to negotiate, in good faith, a substitute valid provision which most nearly meets the Parties’ intent in entering into this Settlement
Agreement. In either case, the remaining provisions of this Settlement Agreement will remain in full force and effect. 
 9.9. Drafting and Construction. All Parties and their counsel have reviewed and had the opportunity to contribute to the drafting of this Settlement Agreement, and the rule of construction providing that any ambiguities are to be
resolved against the drafting Party will not be employed in the interpretation of this Settlement Agreement. This Settlement Agreement will be construed as drafted by both Parties. 
 9.10. Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS SETTLEMENT AGREEMENT, IN NO EVENT WILL EITHER PARTY
OR ITS AFFILIATES BE LIABLE FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL, EXEMPLARY OR PUNITIVE DAMAGES (SUBJECT, IF APPLICABLE, TO SECTION 4.2(f) (LAST SENTENCE OF ESCROW SECTION)) OR ANY LOST PROFITS OR LOST REVENUES EVEN IF SUCH
PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, ARISING OUT OF THIS SETTLEMENT AGREEMENT OR ITS IMPLEMENTATION (INCLUDING ARISING OUT OF OR RELATING TO ANY BREACH OF ANY OF THE TERMS OR CONDITIONS OF THIS SETTLEMENT AGREEMENT). FOR THE
AVOIDANCE OF DOUBT, AND NOTWITHSTANDING ANYTHING IN THIS SECTION 9.10 TO THE CONTRARY, THIS SECTION 9.10 DOES NOT DIMINISH OR OTHERWISE AFFECT PDL’S RIGHTS UNDER SECTIONS 6.2 OR 6.3 OF THIS AGREEMENT. FOR THE AVOIDANCE OF DOUBT,
THIS LIMITATION OF LIABILITY APPLIES ONLY TO THE SETTLEMENT AGREEMENT AND NOT THE LICENSE AGREEMENT. 
 9.11.
Interpretation. All references to Schedules, Exhibits and Sections in this Settlement Agreement shall be references to Schedules, Exhibits and Sections of this Settlement Agreement except as otherwise expressly provided herein. 
 9.12. Amendments to Settlement Agreement; Waiver. 
 (a) Authorized Writing Only. This Settlement Agreement may be amended or modified only by an instrument in writing duly executed by
the authorized representatives of the Parties. This Settlement Agreement cannot be modified orally or by course of conduct. 
  

 21 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 (b) No Waiver or Partial Waiver. The delay or failure of a Party to exercise
any right, power, remedy, or privilege hereunder or failure to strictly enforce any breach, violation, default, provision or condition will not impair any such right, power, remedy or privilege nor will it constitute a waiver thereof or acquiescence
thereto unless explicit written notice is provided. Any waiver, permit, consent, or approval of any kind regarding any breach, violation, default, provision or condition of this Settlement Agreement must be made in writing and signed by both Parties
and will be effective only to the extent specifically set forth in such writing. 
 9.13. Notices. All notices required
or permitted to be given hereunder must be in writing and shall be valid and sufficient if dispatched by overnight mail, postage prepaid, return receipt requested, or if dispatched by confirmed fax, addressed as follows: 
 If to Alexion: 
 Alexion
Pharmaceuticals, Inc. 
 352 Knotter Drive 
 Cheshire, CT 06410 
 Tel.: 203-272-2596 
 Fax.: 203-271-8198 
 ATTENTION: Chief
Executive Officer 
                           cc: General Counsel 
 with a copy (not to constitute notice) to: 
 Kirkland & Ellis LLP 
 153 East 53rd Street 
 New York, NY 10022 
 Attention: Gerald J. Flattmann Jr. 
 Facsimile: (212) 446-6460 
 If to PDL: 
 PDL BioPharma, Inc. 
 932 Southwood Boulevard 
 Incline Village, NV 89451 
 Tel: 775-832-8500 
 Fax: 775-832-8501

 ATTENTION: Chief Executive Officer 
                           cc: General Counsel 
  

 22 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 with a copy (not to constitute notice) to: 
 Vernon M. Winters 
 Weil, Gotshal &
Manges LLP 
 201 Redwood Shores Parkway 
 Redwood Shores, California 94065 
 Tel.: 650-802-3005 
 Fax.: 650-802-310 
 The
aforementioned address of either Party may be changed at any time by giving ten (10) days advance notice to the other Party in accordance with the foregoing. 
 [The remainder of this page is intentionally left blank.] 
  

 23 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 IN WITNESS WHEREOF, the Parties hereto have duly executed this Settlement Agreement as of the
Effective Date. 
  

									
	PDL:	 		 	Alexion:
			
	PDL BioPharma, Inc.	 		 	Alexion Pharmaceuticals, Inc.
					
	By:	 	/s/ John P. McLaughlin	 		 	By:	 	/s/ Leonard Bell
	Name:	 	John P. McLaughlin	 		 	Name:	 	Leonard Bell
	Title:	 	CEO	 		 	Title:	 	CEO

  

 [*] = Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of
this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 Schedule 1.13 
 The following Persons shall be included in the Disclosure Group but only if and for so long as such Person is an employee or director of Alexion (and if any such Person is no longer an employee or director of Alexion,
then such Person shall be automatically excluded from the Disclosure Group) and as each Section 16 officer or director becomes a Section 16 officer or director of Alexion, such Person shall be deemed to be automatically included in the
Disclosure Group until such time as such Person is no longer an employee or director of Alexion (at which time such Person shall be automatically excluded from the Disclosure Group): 
 [*] 
  

 SCH 1.13-1 
 [*] = Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 Schedule 1.33 
 PDL Queen Patent Family 
 The following patents and patent applications, whether listed herein or
not, including, without limitation, any addition, continuation, continuation-in-part or division thereof or any substitute application therefor; any patent issued with respect to such patent applications, any reissue, extension or patent term
extension of any such patent, and any confirmation patent or registration patent or patent of addition based on any such patent (also known as the “Queen et al. patents”) are the PDL Queen Patent Family. All such patents and patent
applications are agreed by the Parties to be included as a “PDL Queen Family Patent” even if not listed specifically herein. 
 [*] 
  

	*	PCT International Publication Number and International Publication Date 

  

 SCH 1.13-1 
 [*] = Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 EXHIBIT A 
 Dismissal with Prejudice 
 IN THE UNITED STATES DISTRICT COURT 
 FOR THE DISTRICT OF DELAWARE 
  

					
		  	)	  	
	PDL BIOPHARMA, INC.,	  	)	  	
		  	)	  	
	                                    
Plaintiff,	  	)	  	
		  	)	  	
	            v.	  	)	  	C.A. No. 07-156 (JJF)
		  	)	  	
	ALEXION PHARMACEUTICALS, INC.,	  	)	  	
		  	)	  	
	                                    
Defendant.	  	)	  	

 STIPULATION AND ORDER OF DISMISSAL 
 Pursuant to Rule 41(a)(1) of the Federal Rules of Civil Procedure, it is hereby stipulated by and between plaintiff, PDL BioPharma, Inc., and defendant,
Alexion Pharmaceuticals, Inc., that this action, including all claims and counterclaims, be and hereby is dismissed in its entirety with prejudice effective December 31, 2008, subject to the terms and conditions of the Settlement Agreement and
the Patent License Agreement, each dated December 31, 2008. 
 Each party shall bear its own costs, expenses and attorneys fees.

  

 A-1 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

					
	MORRIS, NICHOLS, ARSHT & TUNNELL LLP	 		 	YOUNG, CONAWAY, STARGATT & TAYLOR, LLP
			
	  	 		 	  
	 Jack B. Blumenfeld (#1014)
 Karen Jacobs Louden (#2881)

 1201 North Market Street
 P.O. Box 1347
 Wilmington, DE 19899-1347
 (302) 658-9200
 jblumenfeld@mnat.com
 klouden@mnat.com
	 		 	 Josy W. Ingersoll (#1088)
 John W. Shaw
(#3362)
 Andrew A. Lundgren (#4429)
 The Brandywine
Building
 1000 West Street, 17th Floor
 P.O. Box 391

Wilmington, DE 19801
 jingersoll@ycst.com
 jshaw@ycst.com
 alundgren@ycst.com

			
	 Attorneys for Plaintiff
 PDL BioPharma, Inc.
	 		 	 Attorneys for Defendant
 Alexion Pharmaceuticals, Inc.

 SO ORDERED this              day of
                        , 2009. 
  

	
	
	  
	Honorable Joseph J. Farnan, Jr.

  

 A-2 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 EXHIBIT B 
 Stipulated Joint Stay 
 IN THE UNITED STATES DISTRICT COURT 
 FOR THE DISTRICT OF DELAWARE 
  

					
		  	)	  	
	PDL BIOPHARMA, INC.,	  	)	  	
		  	)	  	
	                                    
Plaintiff,	  	)	  	
		  	)	  	
	            v.	  	)	  	C.A. No. 07-156 (JJF)
		  	)	  	
	ALEXION PHARMACEUTICALS, INC.,	  	)	  	
		  	)	  	
	                                    
Defendant.	  	)	  	

 STIPULATION AND ORDER STAYING LITIGATION 
 WHEREAS, PDL Biopharma, Inc. and Alexion Pharmaceuticals, Inc. (collectively “the Parties”) have entered into a Settlement Agreement and a
Patent License Agreement contingent upon the Court’s entry of this Stipulation and Order; 
 NOW, THEREFORE, THE PARTIES STIPULATE AS
FOLLOWS, subject to the approval of the Court: 
 (1) This action is stayed until July 3, 2009, and all existing scheduled dates are
hereby vacated, without prejudice to the parties’ rights. 
 (2) Upon the Parties’ satisfaction of the terms and conditions of the
Parties’ resolution of the Settlement Agreement and Patent License Agreement, the Parties will file a stipulation of dismissal of the above-captioned matter with prejudice on or before July 3, 2009. 
  

 B-1 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 (3) If this action is not dismissed with prejudice on or before July 3, 2009, the Parties are
directed to appear before this Court for a status conference on July 7, 2009, at 10:00 a.m., or such other time as the Court may set. 
  

					
	MORRIS, NICHOLS, ARSHT & TUNNELL LLP	 		 	YOUNG, CONAWAY, STARGATT & TAYLOR, LLP
			
	  	 		 	  
	 Jack B. Blumenfeld (#1014)
 Karen Jacobs Louden (#2881)

 1201 North Market Street
 P.O. Box 1347
 Wilmington, DE 19899-1347
 (302) 658-9200
 jblumenfeld@mnat.com
 klouden@mnat.com
	 		 	 Josy W. Ingersoll (#1088)
 John W. Shaw
(#3362)
 Andrew A. Lundgren (#4429)
 The Brandywine
Building
 1000 West Street, 17th Floor
 P.O. Box 391

Wilmington, DE 19801
 jingersoll@ycst.com
 jshaw@ycst.com
 alundgren@ycst.com

			
	 Attorneys for Plaintiff
 PDL BioPharma, Inc.
	 		 	 Attorneys for Defendant
 Alexion Pharmaceuticals, Inc.

 SO ORDERED this              day of
                        , 2008. 
  

	
	
	  
	Honorable Joseph J. Farnan, Jr.

  

 B-2 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 EXHIBIT C 
 Section 3.4 Disclosures 
 None. 
  

 C-1 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 EXHIBIT D 
 Press Release 
  

					
	

	  		  	

 ALEXION PHARMACEUTICALS AND PDL BIOPHARMA RESOLVE PATENT DISPUTE 
 Alexion Licenses PDL’s Queen et al. Patents for Soliris® 
 January 5, 2009. Incline Village, Nevada, and Cheshire,
Connecticut – PDL BioPharma, Inc. (NASDAQ: PDLI) and Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) today jointly announced that the companies have entered into a definitive license agreement and settlement agreement that resolve the legal
disputes between them relating to Alexion’s humanized antibody, Soliris® (eculizumab) and PDL’s patents known as the Queen et al. patents. 
 Under the agreements announced today, PDL has granted Alexion a license under certain claims in the Queen patent
portfolio, and provided Alexion a covenant not to sue in respect of other claims in the Queen patent portfolio, thus permitting Alexion to commercialize Soliris® for all indications under
the Queen patents. In consideration of this license, Alexion will pay PDL $25 million. No additional payments will be owed by Alexion to PDL under the Queen patents in respect of Soliris®
sales for any indication. As part of the settlement, Alexion has confirmed that the Queen patent claims are valid and that Soliris® employs technology covered under the Queen patents.
Further, Alexion has agreed not to challenge or assist other parties in challenging the validity of the Queen patents in the future. 
 PDL’s Queen patents are related to the humanization of antibodies. Soliris® was approved in the U.S. and European Union in 2007 as a treatment for patients with paroxysmal nocturnal hemoglobinuria (“PNH”), a rare, debilitating and life-threatening blood disease. The use of
Soliris® as a treatment for other rare and severe disorders is in early stages of investigation. 
 Under the license agreement announced today, PDL has separately granted Alexion the right to take a royalty-bearing license under PDL’s Queen patents to commercialize additional Alexion humanized antibodies that may be covered by the
Queen patents in the future. In the event that Alexion takes such a license, Alexion will pay PDL a royalty of 4% of net sales of such non-Soliris products. Additional terms of the agreements were not disclosed. 
  

 D-1 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 “PDL helped revolutionize the development of therapeutic antibodies to treat patients with previously
untreatable and devastating conditions,” said Leonard Bell, M.D., Chief Executive Officer of Alexion. 
 John P. McLaughlin, President and Chief Executive Officer of PDL said, “We appreciate Alexion’s efforts to resolve the dispute and its acknowledgement about our patents’ strength. Soliris® is an important therapeutic product, and it serves a critical – and otherwise underserved – market.” 
 With
the closing of these agreements, the previously announced claims filed by PDL and counterclaims filed by Alexion in the U.S. District Court for the District of Delaware will be dismissed. 
 About Soliris® 
 Soliris® is the first product approved for the
treatment of paroxysmal nocturnal hemoglobinuria (PNH) in the U.S. and Europe. PNH is a rare, debilitating, and life-threatening blood disorder defined by the destruction of red blood cells, or hemolysis. In patients with PNH, hemolysis can cause
life-threatening thromboses, recurrent pain, kidney disease, disabling fatigue, impaired quality of life, severe anemia, pulmonary hypertension, shortness of breath and intermittent episodes of dark-colored urine (hemoglobinuria). Soliris® is the only treatment that blocks this hemolysis before it occurs. 
 About Alexion

 Alexion Pharmaceuticals, Inc. is a biopharmaceutical company working to develop and deliver life-changing drug therapies for patients with serious and
life-threatening medical conditions. This press release and further information about Alexion Pharmaceuticals, Inc. can be found at: www.alexionpharm.com. 
 About PDL BioPharma 
 PDL BioPharma, Inc. was a leader in the humanization of monoclonal antibodies and enabled the discovery of a new
generation of targeted treatments for cancer and autoimmune diseases. This press release and further information about PDL BioPharma, Inc. can be found at: www.pdl.com. 
 Forward Looking Statement 
 This press release contains forward-looking statements. Each of these forward-looking
statements involves risks and uncertainties. Actual results may differ materially from those, express or implied, in these forward-looking statements, including because Alexion or PDL fail to timely fulfill their respective obligations under the
settlement agreement or patent license agreement. PDL and Alexion expressly disclaim any 

  

 D-2 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 
obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in their
respective expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based for any reason, except as required by law, even as new information becomes available or other events occur in the
future. All forward-looking statements in this press release are qualified in their entirety by this cautionary statement. 
 # # #

  

 D-3 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission. 

 CONFIDENTIAL 
 EXECUTION COPY 
  

 EXHIBIT E 
 Exclusive Licenses and Rights Granted by PDL to a Third Party Prior to the Effective Date 
 [*] 
  

 E-1 
 [*] =
Portions of this exhibit have been omitted pursuant to a confidential treatment request. An unredacted version of this exhibit has been filed separately with the Commission.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}]]