Item 1.01 Entry into a Material Definitive Agreement.
PDL BioPharma, Inc. (the "Company") entered into a Capital Provision Agreement
(the "Agreement") with Epps Investments LLC ("Epps") as of December 11, 2020.
Under the terms of the Agreement, the parties agreed that Epps would pay an
aggregate amount equal to $51,391,184 to the Company no later than December 31,
2020, in exchange for 100% of the awards, damages, recoveries, judgments or
other property or value awarded to or received by the Company on or after the
date of the Agreement pursuant to or as a result of (i) the previously disclosed
Settlement and Mutual Release Agreement (the "Settlement Agreement"), dated as
of August 11, 2020, by and among the Company, Samuel J. Wohlstadter, Nadine H.
Wohlstadter, Hyperion Catalysis International, Wellstat Vaccines, LLC, Wellstat
ImmunoTherapeutics, LLC, Wellstat BioCatalysis, LLC, Wellstat AVT Investment,
LLC, Wellstat Biologics Corporation, Wellstat Management Company, LLC, Wellstat
Ophthalmics Corporation, Wellstat Therapeutics Corporation, Wellstat
Therapeutics EU Limited, Duck Farm, Inc., Hebron Valley Farms, Inc., HVF, Inc.,
Hyperion Catalysis EU Limited, NHW, LLC, and SJW Properties, Inc., together with
their respective successors and assigns, and Defined Diagnostics, LLC (f/k/a
Wellstat Diagnostics, LLC) ("Diagnostics") that resolved previously reported
litigation relating to loans made to Diagnostics by PDL, and (ii) the underlying
claims resolved by such Settlement Agreement. The Company has agreed to
reimburse Epps for certain expenses related to the Agreement. Pursuant to the
Agreement, the Company will also grant to Epps a security interest in the
Company's interest in certain collateral, as further described in the Agreement,
including the Settlement Agreement and the underlying claims resolved by the
Settlement Agreement, as security for the prompt payment of the Company's
obligations under the Agreement.
Further, under the terms of the Settlement Agreement, if the Scheduled Final
Payment (as defined in the Settlement Agreement) is not made to the Company by
11:59 AM EST on July 26, 2021, the Company has agreed to assign its rights and
obligations under the Settlement Agreement, and the underlying claims settled
thereby, to Epps.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. Description
99.1 Press Release, dated December 14, 2020--------------------------------------------------------------------------------
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PDL BIOPHARMA, INC. 
