0000882104-02-000013 Sample Contracts

PROTEIN DESIGN LABS, INC. STOCK OPTION AGREEMENT (NONSTATUTORY)
Protein Design • August 14th, 2002 • Protein Design Labs Inc/De • Biological products, (no disgnostic substances) • California

Protein Design Labs, Inc. has granted to the individual (the "Optionee") named in the Notice of Grant of Stock Option (the "Notice") to which this Stock Option Agreement (Nonstatutory) is attached an option (the "Option") to purchase certain shares of Stock upon the terms and conditions set forth in this Option Agreement (the "Option Agreement") and the Notice. The Option has been granted pursuant to the Protein Design Labs, Inc. 1999 Stock Option Plan (the "Plan"). By signing the Notice, the Optionee represents that the Optionee is familiar with the terms and provisions of this Option Agreement and accepts the Option subject to all of the terms and provisions hereof. The Optionee agrees to accept as final and binding all decisions or interpretations of the Board upon any questions arising under this Option Agreement or the Plan.

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PDL LETTERHEAD] May 1, 2002
Protein Design Labs Inc/De • August 14th, 2002 • Biological products, (no disgnostic substances) • California

As we have discussed, Protein Design Labs, Inc. (the "Company") wishes to acknowledge your resignation as the Company's Chief Executive Officer and memorialize the terms of your continued employment with the Company as its Chairman of the Board of Directors ("Chairman") by entering into this Special Compensation and Continued Employment Agreement (the "Agreement") with you.

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