Document:

Assignment and Purchase of Intellectual Property Rights Agreement

 Exhibit 10.28 
 ASSIGNMENT AND PURCHASE OF INTELLECTUAL PROPERTY RIGHTS 
 AGREEMENT

 This Assignment and Purchase of Intellectual Property Rights Agreement (the “Agreement”) is made by and among
Edward T. Wei, an individual whose address is 480 Grizzly Peak Blvd., Berkeley, CA 94708 (“Wei”), Cragmont Pharmaceuticals, LLC, a Delaware limited liability company, having a place of business at 480 Grizzly Peak Blvd.,
Berkeley, CA 94708 (“Cragmont”), certain Russian inventors (“Russian Inventors”) and Russian companies (“Russian Companies”) (collectively, the “Russian Assignors”) and all four (Wei; Cragmont;
Russian Inventors; Russian Assignors) collectively the “Assignors” and SciClone Pharmaceuticals, Inc., a Delaware corporation, with offices located at 950 Tower Lane, Suite 900, Foster City, California 94404) and SciClone
Pharmaceuticals International, Ltd., a Cayman corporation (collectively, the “Assignees”), as of December 28, 2010 (the “Effective Date”). 
 RECITALS 
 WHEREAS, the Assignees are engaged in the development of medical products, which
may be able to utilize the Assigned Technology (defined below); 
 WHEREAS, Wei was assigned all rights to certain intellectual property,
including but not limited to patent rights, and related technology by the Russian Inventors and the Russian Companies in 1996; 
 WHEREAS, Wei
has assigned the rights to certain of the patents under the Assigned Technology to Cragmont; 
 WHEREAS, Wei and the Assignees, are parties to
an existing license agreement, dated July 28, 1997, under which Wei licensed to Assignees certain rights to that intellectual property and related technology (“License Agreement”); 

WHEREAS, the Russian Assignors have from time to time assigned certain related intellectual property to the Assignees; 

WHEREAS, Wei and the Assignees desire to terminate the License Agreement and replace it with this Agreement; and 

WHEREAS, the Russian Assignors desire to continue to assign to the Assignees additional rights to intellectual property related to the Assigned
Technology; 

  
 1 

 AGREEMENT 
 NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, and for good and valuable consideration, the receipt of which is hereby acknowledged, Assignors and Assignees
hereby agree as follows: 
  

	 	1.	Definitions. Capitalized terms shall have the meaning set forth below. 

 

	 	1.1	“Assigned Technology” shall mean the Assigned Patents, plus all improvements thereto developed as of the Effective Date by Wei, Cragmont, the Russian
Companies or the Russian Inventors, and all data, studies, know-how, technology, confidential information and other intellectual property rights belonging to Wei, Cragmont, the Russian Companies or the Russian Inventors, that relate to the Assigned
Patents. 

  

	 	1.2	“Confidential Information” shall mean any and all proprietary or confidential information of any party hereto that may be exchanged between or among the
parties at any time and from time to time in connection with this Agreement. Information shall not be considered confidential to the extent that it: 

  

	 	(i)	is publicly disclosed through no fault of any party hereto, either before or after it becomes known to the receiving party; or 

 

	 	(ii)	was known to the receiving party prior to the date of disclosure, which knowledge was acquired independently and not from another party hereto (or such party’s
employees or agents); or 

  

	 	(iii)	is subsequently disclosed to the receiving party in good faith by a third party who has a right to make such disclosure; or 

 

	 	(iv)	has been published by a third party as a matter of right; or 

  

	 	(v)	is developed or acquired totally independent from and without any benefit from any confidential information received from the disclosing party.

  

	 	1.3	“Assigned Patents” shall mean any and all patent rights licensed under the License Agreement including without any limitation patents and applications
described on Exhibit A attached hereto, plus all divisionals, continuations, continuations-in-part, reissues, re-examinations and extensions of the patents or applications described in Exhibit A, together with all corresponding foreign patents,
except for those issuing in Russia, and together with all related pending patent applications and inventor’s certificates claiming priority to any patents or patent applications described in Exhibit A, and together with all patents and patent
applications covering improvements to the inventions described in the foregoing, filed or issued in any country, except in Russia. 

  
 2 

	 	1.4	“Commercial Product” shall mean any product that cannot be manufactured, used or sold without infringing on a valid issued claim of any of the unexpired
Assigned Patents. 

  

	 	1.5	“PTO” means the United State Patent and Trademark Office. 

  

	 	1.6	“Russian Inventors” shall mean those individuals who were co-inventors or participants for the conception and development of the Assigned Technology,
including but not limited to those inventors listed on Exhibit B. 

  

	 	1.7	“Specified Countries” shall mean the following countries: Australia, Belgium, Canada, Denmark, France, Germany, Japan, Netherlands, Sweden, Switzerland,
United Kingdom, United States of America. 

  

	 	2.	Assignments. 

  

	 	2.1	Wei and Cragmont hereby sell, assign, transfer and convey to Assignees the entire worldwide (except as to Russia) right, title and interest in and to the Assigned
Technology, with such interest to be held and enjoyed by Assignees as fully and exclusively as they would have been held and enjoyed by Wei and/or Cragmont, as the case may be, had this assignment and transfer not been made.

  

	 	2.2	The Russian Companies and Russian Inventors hereby acknowledge the sale, assignment, transfer and conveyance of the Assigned Technology to Assignees.

  

	 	2.3	The Russian Assignors sell, assign, transfer and convey to Assignees the entire worldwide (except as to Russia) right, title and interest in and to the Assigned
Technology, to the extent not already assigned to Wei. The Russian Assignors also agrees to sell, assign, transfer and convey to Assignees the entire worldwide (except as to Russia) right, title and interest in and to any and all improvements to the
Assigned Technology that may be conceived, developed or reduced to practice by any of the Russian Assignors. Examples of such anticipated improvements include, without limitation: (i) novel synthesis, formulation or delivery of any compounds
disclosed in the Assigned Patents as well as their analogs, (ii) new or modified use or application of any compound disclosed in the Assigned Patents (iii) derivatives or analogs of any compounds disclosed in Assigned Patents as well as
related formulations, dosage form, or any other compositions of matters. 

  
 3 

	 	3.	Compensation. 

  

	 	3.1	Initial Fee. Within five (5) business days after the Effective Date, Assignees shall pay to Edward T. Wei, CEO, Cragmont Pharmaceuticals, LLC
(“Wei/Cragmont”) a fee of One Hundred Twenty-Five Thousand Dollars ($125,000). 

  

	 	3.2	Milestone Payment. Within ten (10) business days after either of Assignees receives its first governmental regulatory approval to commercially market and
sell a Commercial Product in one of the Specified Countries, Assignees shall pay to Wei/Cragmont a milestone payment of One Million, Seven Hundred Fifty Thousand Dollars ($1,750,000) It is understood and agreed that Assignees shall be obligated to
make only one $1,750,000 payment to Wei/Cragmont pursuant to this paragraph regardless of the number of governmental approvals obtained by Assignees to commercially market and sell Commercial Product(s) in one or more of the Specified Countries. It
is further understood and agreed that Assignees shall not be obligated to make any payment to Wei/Cragmont pursuant to this paragraph on Assignees receiving governmental approval to commercially market and sell a Commercial Product in any country
not included in the list of Specified Countries. 

  

	 	3.3	Compensation for the Russian Assignors. It is agreed by all parties that Wei/Cragmont is solely responsible for compensating the Russian Assignors under a
separate agreement between the Russian Assignors and Wei/Cragmont. Wei, Cragmont, and the Russian Assignors hereby agree and acknowledge that the Assignees are not responsible for compensating the Russian Assignors for their obligations under this
Agreement. 

  

	 	4.	Representations and Warranties. Wei and Cragmont represent, warrant and covenant that: (i) they are the rightful and sole owners of exclusive worldwide
rights (except for those patents and applications issued or filed in Russia) to the Assigned Technology, (ii) the Assigned Technology is not subject to any lien, license, assignment (other than an assignment to Wei or Cragmont), security
interest or other encumbrance, (iii) they have made full disclosure to Assignees of all communications with respect to the Assigned Technology with the PTO and any foreign patent agencies, (iv) they have the power and authority to enter
into this Agreement and to make the assignments hereunder, and (v) they have no knowledge that the Assigned Technology infringes any patents or other intellectual property rights of third parties, or that any third party is in any way
infringing the Assigned Technology covered by this Agreement. 

  
 4 

	 	5.	Confidential Information. The parties hereto agree that during the term of the assignment obligations of the Russian Assignors under this Agreement, and for a
period of five (5) years thereafter, a party receiving Confidential Information of another party will, excepting only to the extent needed in connection with the performance of this Agreement, (i) maintain in confidence such Confidential
Information, (2) not disclose such Confidential Information to any third party without prior written consent of the other party, and (iii) not use such Confidential Information for any purpose except those permitted by this Agreement.

  

	 	6.	Patent Matters; Improvements. 

  

	 	6.1	Patent Prosecution, Maintenance, Defense and Enforcement. The Russian Assignors shall timely inform Assignees of all discoveries and inventions that may
constitute improvements to the Assigned Technology and shall assist Assignees and patent counsel retained by Assignees as necessary to accomplish any patent prosecution, maintenance, defense or enforcement of the Assigned Technology and improvements
thereof, and shall further sign all documents that may be reasonably necessary to enable Assignees to prosecute, maintain, defend or enforce all patent matters related thereto. 

 

	 	6.2	Ownership. The worldwide (except as to Russia) patents and patent applications for all improvements assigned under Section 2.3 shall be owned solely by
Assignees, and the Russian Assignors hereby agree to sign all necessary documents to perfect such rights of Assignees. 

  

	 	7.	Termination of License Agreement. On the Effective Date of this Agreement, the License Agreement shall be terminated and the parties thereto shall have no
further obligations thereunder (including specifically the milestone and royalty obligations), except as provided in Section 11.6 thereunder with respect to confidentiality obligations. 

 

	 	8.	General. 

  

	 	8.1	Independent Contractors. The relationship among the parties hereto is that of independent contractors. The parties are not joint venturers, partners, principal
and agent, master and servant, employer or employee, and have no other relationship other than independent contracting parties. The parties shall have no power to bind or obligate each other in any manner, other than as expressly set forth in this
Agreement or other agreements. 

 . 

  
 5 

	 	8.2	Arbitration. Any matter or disagreement arising under this Agreement shall be submitted for decision to a single neutral arbitrator with expertise in the subject
matter to be arbitrated. The arbitrator shall be agreed on by the parties to the dispute. The arbitration shall be conducted in accordance with the Rules of the American Arbitration Association. The decision rendered by the arbitrator shall be final
and binding. Judgment on the award may be entered in any court having jurisdiction thereof. Any arbitration shall be held in Santa Clara County, California, or such other place as may be mutually agreed on in writing by the parties to the dispute.
Notwithstanding this arbitration provision, nothing herein shall prevent a party from seeking injunctive relief in a court of competent jurisdiction with respect to any alleged infringement of intellectual property by another party.

  

	 	8.3	Entire Agreement; Modifications. This Agreement sets forth the entire agreement and understanding among the parties as to the subject matter hereof. Amendments
or modifications to this Agreement may be made only by a written document signed by the parties to which the rights and obligations to be modified pertain. 

 

	 	8.4	Headings. The headings of the several sections are inserted for convenience of reference and are not intended to be a part of or affect the meaning or
interpretation of this Agreement. 

  

	 	8.5	Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of California, United States of America, without regard to
conflicts of law rules. 

  

	 	8.6	Severability. If any one or more of the provisions of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction, it shall be
considered severed from this Agreement and shall not serve to invalidate the remaining provisions thereof. The parties shall make a good faith effort to replace any invalid or unenforceable provision with a valid and enforceable provision such that
the objectives contemplated by them when entering this Agreement may be realized. 

  

	 	8.7	No Waiver. Any delay in enforcing a party’s rights under this Agreement or any waiver as to a particular default or other matter shall not constitute a
waiver of such party’s rights to the future enforcement of its rights under this Agreement, excepting only as to an express written and signed waiver as to a particular matter for a particular period of time. 

  
 6 

	 	8.8	Notices. Any notices required by this Agreement shall be in writing, shall refer to this Agreement and shall be sent by registered or certified mail, postage
prepaid, or by facsimile, charges prepaid, or by overnight courier, charges prepaid to the addresses set forth below, unless later changed by written notice to the other parties: 

 

			
	 For Assignees:
	 	SciClone Pharmaceuticals, Inc.
		 	950 Tower Lane, Suite 900
		 	Foster City, CA 94404 USA
		 	Attention: Chief Financial Officer
		 	Fax No.: (650) 358-3469
		
	 For Wei and Cragmont:
	 	Edward T. Wei
		 	480 Grizzly Peak Blvd.
		 	Berkeley, CA 94708
		 	Fax No.: (510) 524-9040
		
	 For Russian Companies and

Russian Inventors:
	 	Verta Ltd.
	 	Alexander A. Kolobov, Director
		 	265, apt.102, Primorskoe shosse,
		 	Sestroretsk, 197706, Russia
		 	Tel: +7 812 434 61 39
		 	Email: indolicidin@mail.ru
		
		 	Cytokin Ltd.
		 	Andrey S. Simbirtsev, Director
		 	34-1. apt.123, 2-nd Murinsky Pr.,
		 	St.-Petersburg, 194021, Russia
		 	Tel: +7 921 918 12 17
		 	Email: simbas@mail.ru

  

	 	8.9	Binding on Successors and Assigns. This Agreement shall be binding on and inure to the benefit of any successors in interest and assigns of the parties.

  

	 	8.10	Interpretation of Agreement. Each of the parties hereto has reviewed the terms of this Agreement with such party’s counsel. Therefore, notwithstanding
Section 1654 of the California Civil Code, the terms of this Agreement shall not be interpreted against either party in the event of any uncertainty with regard to the language of this Agreement. 

  
 7 

	 	8.11	Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and
the same Agreement. Signatures may be transmitted by facsimile or email. 

 IN WITNESS WHEREOF, the parties have
executed this Agreement by their duly authorized representatives as of the date set forth above. 
  

									
	 EDWARD T. WEI:
	 		 	SCICLONE PHARMACEUTICALS, INC.:
				
	 /s/ Edward T. Wei
	 		 	By:	 	 /s/ F. Blobel

					
		 		 		 	Name:	 	 Friedhelm Blobel

					
		 		 		 	Title:	 	 CEO and President

			
	 CRAGMONT PHARMACEUTICALS, LLC:
	 		 	 SCICLONE PHARMACEUTICALS:
  

INTERNATIONAL, LTD.

					
	 By:
	 	 /s/ Edward T. Wei
	 		 	By:	 	 /s/ Hans P. Schmid

					
	 Name:
	 	 Edward T. Wei
	 		 	Name:	 	 Hans P. Schmid

					
	 Title:
	 	 CEO
	 		 	Title:	 	 President & Managing Director

 

									
	 “RUSSIAN COMPANIES”
	 		 		 	
				
	 VERTA LTD.:
	 		 		 	CYTOKIN LTD.:
					
	 By:
	 	 /s/ A. Kolobov
	 		 	By:	 	 /s/ A. Simbirtsey

					
	 Name:
	 	Alexander A. Kolobov	 		 	Name:	 	Andrey S. Simbirtsev
					
	 Title:
	 	Director`	 		 	Title:	 	Director

  
 8 

 EXHIBIT A 

 

					
	Patent/Application No.	  	Filing Date	  	Country
	 5,744,452
	  	Apr-18-1996	  	United States of America
	 PCT/US1996/017913
	  	Nov-13-1996	  	PCT
	 5,916,878
	  	Feb-27-1998	  	United States of America
	 754876
	  	Dec-22-1998	  	Australia
	 PI 9814472-3
	  	Dec-22-1998	  	Brazil
	 2,316,310
	  	Dec-22-1998	  	Canada
	 1042286
	  	Dec-22-1998	  	Switzerland
	 ZL 98813799.2
	  	Dec-22-1998	  	China
	 1042286
	  	Dec-22-1998	  	European Patent Office
	 01102289.5
	  	Dec-22-1998	  	Hong Kong
	 136937
	  	Dec-22-1998	  	Israel
	 4536918
	  	Dec-22-1998	  	Japan
	 10-0602529
	  	Dec-22-1998	  	Republic of Korea
	 PA/a/2000/006369
	  	Dec-22-1998	  	Mexico
	 317256
	  	Dec-22-1998	  	Norway
	 505489
	  	Dec-22-1998	  	New Zealand
	 2000/01871
	  	Dec-22-1998	  	Turkey
	 PCT/US1998/027291
	  	Dec-22-1998	  	PCT
	 10-0623104
	  	Dec-22-1998	  	Republic of Korea
	 1042286
	  	Dec-22-1998	  	Austria
	 1042286
	  	Dec-22-1998	  	Cyprus
	 1042286
	  	Dec-22-1998	  	Germany
	 1042286
	  	Dec-22-1998	  	Denmark
	 1042286
	  	Dec-22-1998	  	Spain
	 1042286
	  	Dec-22-1998	  	Finland
	 1042286
	  	Dec-22-1998	  	France
	 1042286
	  	Dec-22-1998	  	United Kingdom
	 1042286
	  	Dec-22-1998	  	Greece
	 1042286
	  	Dec-22-1998	  	Ireland
	 1042286
	  	Dec-22-1998	  	Italy
	 1042286
	  	Dec-22-1998	  	Luxembourg
	 1042286
	  	Dec-22-1998	  	Monaco
	 1042286
	  	Dec-22-1998	  	Netherlands
	 1042286
	  	Dec-22-1998	  	Portugal
	 1042286
	  	Dec-22-1998	  	Sweden
	 1042286
	  	Dec-22-1998	  	Belgium

 

 EXHIBIT B 
 Russian Inventors 
  

					
		 	/s/ A. Kolobov                    	 	/s/ A. Simbirtsey                    
			
		 	 Alexander A. Kolobov
  
	 	 Audrey S. Simbirtsev
  

	  

 
 Tel:
  
	 	 265, apt.102, Primorskoe shosse,

 
 Sestroretsk, 197706, Russia

 
 +7 812 434 61 39 indolicidin@mail.ru

 
	 	
    34-1. apt.123, 2-nd Murinsky Pr.,
  

    St.-Petersburg, 194021, Russia
  

    Tel: +7 921 918 12 17 simbas@mail.ruAmendment No. 1 to Manufacturing and Supply Agreement

 Exhibit 10.29 
 CONFIDENTIAL TREATMENT REQUEST – EDITED COPY 
  

	
	 *** CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED AS [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

 AMENDMENT NO. 1 
 TO 

MANUFACTURING AND SUPPLY AGREEMENT 
 THIS AMENDMENT NO. 1 TO MANUFACTURING AND SUPPLY AGREEMENT (this “Amendment”) effective as of December 23, 2010 (the “Amendment Date”), is entered into between
SciClone Pharmaceuticals International Ltd., with offices located at Ugland House, South Church Street, George Town, Grand Cayman, Cayman Islands (hereinafter, “Customer” or “SPIL”), and Lonza Sales Ltd., having an
address at Muenchensteinerstrasse 38, CH-4002 Basel, Switzerland (hereinafter, “Manufacturer” or “Lonza”) (collectively, referred to as the “Parties” or individually, a “Party”).

 WHEREAS, Customer and Manufacturer previously entered into that certain Manufacturing and Supply Agreement dated as of
December 31, 2006 (the “Agreement”); 
 WHEREAS, Customer and Manufacturer wish to amend the Agreement in
certain respects on the terms and conditions set forth herein. 
 NOW THEREFORE, the parties hereby agree as follows:

  

	 	1.	Article 1 (Definitions) of the Agreement is hereby amended by amending and restating each of the following definitions as set forth below: 

“Customer Purchase Obligation” shall mean Customer’s obligation to purchase and Manufacturer’s
obligation to supply an aggregate amount of [***]. 
 “Production Batch” shall mean that
amount of [***]. 
  

	 	2.	Article I (Definitions) of the Agreement is hereby amended by deleting the definition titled “Production Rate.” 

 

	 	3.	Section 2.1 of the Agreement is hereby amended and restated in its entirety as follows: 

Section 2.1 Purchase and Supply. If Customer’s requirement for Bulk Drug Substance exceeds [***],
then upon written request from Customer the Parties shall negotiate in good faith for the Customer Purchase Obligation. 

  
 1 

 CONFIDENTIAL TREATMENT REQUEST – EDITED COPY 

 

	
	 *** CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED AS [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

  

 
Manufacturer shall accept any purchase orders issued by Customer for the Bulk Drug Substance manufactured with the BOC process using HF technology, to the extent the amounts in such purchase
order do not exceed [***]. 
 4. Section 2.2(b) of the Agreement is hereby amended and restated in its entirety as
follows: 
 (b) Within fifteen (15) calendar days after receipt of Customer’s forecast, Manufacturer
will provide Customer with a written statement of its ability and general confirmation to supply. In the event that Manufacturer does not confirm a [***] forecast, then the Customer Purchase Obligation for that individual [***], on a
pro-rata basis, shall be suspended. 
 5. Section 2.4 of the Agreement is hereby amended by adding the following new
sentence as the second sentence in the section: 
 However, Customer shall have the right without any liability
or penalty to extend the Delivery Date on any purchase order for [***] after the original Delivery Date. 
 6. The first
sentence of Section 3.4(b) of the Agreement is hereby amended by adding “Unless otherwise specified in the Quality Agreement that is executed within thirty (30) days after the date of Amendment No. 1 to this Agreement,” at
the beginning of such sentence. 
 7. Section 3.5 of the Agreement is hereby amended and restated in its entirety as
follows: 
 Section 3.5 cGMP Compliance and QA Audits. Responsibilities for quality control obligations,
including without limitation cGMP compliance and audit rights, shall be in accordance with the Quality Agreement; provided, however, that in the event of a conflict between any provision of this Agreement and the Quality Agreement, the terms of this
Agreement shall govern. 
 8. Section 3.6(c) of the Agreement is hereby amended and restated in its entirety as follows:

 (c) Know-How, trade secrets and inventions or other intellectual property, including patent applications,
patents and patentable subject matter relating to manufacture of the Bulk Drug Substance, is the sole and exclusive 

  
 2 

 CONFIDENTIAL TREATMENT REQUEST – EDITED COPY 

 

	
	 *** CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED AS [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

  

 
property of Customer, including without limitation, such know-how, processes and inventions developed or conceived by Manufacturer since Manufacturer commenced manufacturing Bulk Drug Substance
for Customer in approximately [***], and continuing for the duration of this Agreement. However, Manufacturer may use such know-how, processes and inventions developed or conceived by Manufacturer on a non-exclusive, royalty-free, worldwide
basis for Manufacturer’s own benefit for products other than the Bulk Drug Substance. 
 9. The last sentence of
Section 3.12 starting with “For any lot of...” is hereby deleted and replaced with the following language: 
 “Material to be invoiced at time of shipment. At the time of the invoice, title to any stored Bulk Drug Substance shall pass to Customer. If Manufacturer is unable to ship the Bulk Drug Substance to
Customer on the date specified by Customer for any reason (including without limitation loss or damage to the stored Bulk Drug Substance), then any amounts that Customer has paid for such Bulk Drug Substance shall promptly be refunded to Customer.
For clarity, for quantities that are considered safety stock as defined in Section 3.14, the [***] shall not apply.” 
 10. The first sentence of Section 3.13 of the Agreement is hereby amended by adding “At no charge to Customer, and in accordance with the terms of the Quality Agreement that is executed within
thirty (30) days after the date of Amendment No. 1 to this Agreement,” at the beginning of such sentence. 
 11.
A new section (Section 3.14) is hereby added to the Agreement immediately following the end of Section 3.13 to read: 

Section 3.14 Safety Stock. 
 At a mutually agreed upon time, but not later than [***], Manufacturer shall keep on hand at all times a reserve of Bulk Drug Substance equal to [***]. Manufacturer shall regularly increase
(or decrease) such reserve to reflect aggregate amounts in the then-current forecast. If Manufacturer uses such reserve of Bulk Drug Substance to fulfill a purchase order as a result of insufficient manufacturing of Bulk Drug Substance, then
Manufacturer shall promptly replace such Bulk Drug Substance in order to keep the reserve as described above. The Bulk Drug Substance maintained by Manufacturer as part of such reserve shall be owned by Manufacturer and title shall not pass to
Customer, and no payment shall be due, until such time as the Bulk Drug Substance is shipped to Customer to 

  
 3 

 CONFIDENTIAL TREATMENT REQUEST – EDITED COPY 

 

	
	 *** CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED AS [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

  

 
fulfill a purchase order or [***] after the LONZA release date whichever comes first. Upon termination of this Agreement, Lonza shall deliver, and Customer shall purchase (at regular
price), all such reserve of Bulk Drug Substance maintained hereunder. 
 12. Section 4.1 of the Agreement is hereby amended
by adding the following new sentence immediately to the end of Section 4.1: 
 Notwithstanding the foregoing, commencing
with all purchase orders with shipment dates between January 1, 2011 and December 31, 2011, the pricing for the Bulk Drug Substance manufactured from the BOC process using HF technology shall be [***]. Commencing with all purchase
orders with shipment dates on or after January 1, 2012 until the expiration of the Term, the pricing for the Bulk Drug Substance manufactured from the BOC process using HF technology shall be [***]. 

13. Section 5.3(b) of the Agreement is hereby amended and restated in its entirety as follows: 

(b) In order to reject or put on hold delivery of a failed Production Batch based on testing of a quality control sample
or incomplete documentation, Customer shall (i) give written notice to Manufacturer of Customer’s intent to reject the batch within [***] after receipt of both the sample and the Production Batch and (ii) as promptly as
reasonably possible thereafter, but in any event within an additional [***], provide Manufacturer with notice of final rejection. As used in this Agreement, the term “Acceptance Period” shall mean either (i) the [***]
period after Customer receives the sample and Production Batch referenced above, if Customer does not give written notice to Manufacturer within said [***] of intent to reject or (ii) if Customer does give said notice of intent to
reject within said [***], then a total of [***] after Customer receives the sample and Product Batch referenced above. If the Production Batch has not been identified as failing to meet the Specifications, cGMP, MPR or otherwise
adulterated or misbranded under the Food Drug and Cosmetic Act by Customer based upon an analysis of the sample or review of the documentation within the Acceptance Period, Customer shall be deemed to have approved the batch and Customer shall pay
Manufacturer for such batch in accordance with Section 4.3. 
 14. Section 5.4 is hereby amended by replacing the
phrase “one hundred and twenty (120) days” with the following: “ninety (90) days.” 

  
 4 

 CONFIDENTIAL TREATMENT REQUEST – EDITED COPY 

 

	
	 *** CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED AS [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

  

 15. Sections 5.6(a) – (c) of the Agreement are hereby amended and restated in
their entirety as follows: 
 (a) each Production lot delivered by-Manufacturer under the applicable Firm
Purchase Order contains at least [***]of Bulk Drug Substance or such other lower minimum quantity as specified in the Firm Purchase Order; and 
 (b) the total amount of Bulk Drug Substance actually delivered under the applicable Firm Purchase Order is not more than [***] less than the total amount specified in the applicable Firm Purchase
Order. 
 (c) over any six (6) month period the total underage of Bulk Drug Substance delivered is no
greater than [***] and provided that such underage, to the extent that it is greater than [***], is delivered within three (3) months following such six (6) month period. 

The Parties acknowledge that, if Manufacturer is experiencing supply issues and is unable to manufacture sufficient quantities of the Bulk
Drug Substance requested by Customer in accordance with Section 2, then until such time as Manufacturer is able to manufacture such quantities of Bulk Drug Substance to satisfy the Customer Purchase Obligation and has provided Customer with
written notice of its capabilities, Customer shall have no obligation to purchase such quantity of Bulk Drug Substance from Manufacturer under this Agreement and shall be free to purchase such quantity of Bulk Drug Substance from third parties.

 Generally Customer Purchase Obligation will re-commence in the following quarter after (a) Manufacturer has demonstrated
by production of two completely separate manufacturing runs including separate cleavage lots (for which the process equipment performs as expected and the material conforms to all quality specifications) that it can satisfy Customer’s
requirements, and (b) Customer’s commitment to alternative suppliers has been satisfied. 
 Without limiting the
generality of the foregoing, the Customer Purchase Obligation is waived for calendar year 2010, and during calendar year 2011 until such time as clauses (a) and (b) of the foregoing paragraph have been satisfied. 

Thereafter, commencing with the date that Manufacturer is able to manufacture sufficient quantities of Bulk Drug Substance
to satisfy the Customer Purchase Obligation and has provided Customer with such written notice, and continuing during the Term of this Agreement, the Customer Purchase Obligation 

  
 5 

 CONFIDENTIAL TREATMENT REQUEST – EDITED COPY 

 

	
	 *** CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED AS [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

  

 
shall be satisfied as set forth in individual purchase orders placed by Customer and accepted by Manufacturer under this Agreement; provided, however, that Manufacturer’s obligation to
supply shall be limited to an aggregate amount of not more than [***] of Bulk Drug Substance per calendar year (for partial years, the quantities will be pro-rated) under this Agreement. 

16. A new section (Section 5.7) is hereby added to the Agreement immediately following the end of Section 5.6 to read: 

Section 5.7 On Time Delivery. 
 Manufacturer will notify Customer promptly if it believes it will not be able to ship the Bulk Drug Substance ordered under a purchase order by the requested Delivery Date. If Manufacturer ships the Bulk
Drug Substance later than [***] after the requested Delivery Date (“Grace Period”), and the failure to ship is attributable to Manufacturer’s breach, negligence or other reasons within Manufacturer’s control and
responsibility, then Manufacturer will reimburse Customer for its cancellation fees assessed by Customer’s drug product manufacturer up to [***] for the applicable batch of Bulk Drug Substance. Such “cancellation fees” shall be
auditable and shall take effect with respect to all batches of Bulk Drug Substance scheduled for shipment after September 30, 2011. 
 17. Section 7.3 of the Agreement is hereby amended by adding a new subparagraph (c) to read: 
 “IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER OR ANY OF ITS AFFILIATES FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES (INCLUDING, WITHOUT LIMITATION,
LOST PROFITS, BUSINESS OR GOODWILL) SUFFERED OR INCURRED BY SUCH OTHER PARTY OR ITS AFFILIATES IN CONNECTION WITH THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.” 

18. Section 10.1 of the Agreement is hereby amended and restated in its entirety as follows: 

Section 10.1 Term. This Agreement will be effective from the Amendment Date and continue until
December 31, 2015 (the “Initial Term”). This Agreement shall, unless earlier terminated as provided herein, thereafter renew automatically for an additional two (2) year term (together with the Initial Term, the
“Term”). Either party may terminate this Agreement as of the end of 

  
 6 

 CONFIDENTIAL TREATMENT REQUEST – EDITED COPY 

 

	
	 *** CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH
MOUNTS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE
DESIGNATED AS [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION.

  

 
the Initial Term, by written notice to the other party at least one hundred and eighty (180) days prior to the end of the Initial Term. In addition, Customer shall have the right upon
written notice to terminate this Agreement if, on or after June 30, 2011, Manufacturer is unable to manufacture sufficient quantities of Bulk Drug Substance to satisfy the Customer Purchase Obligation as clarified in Section 5.6(c).

 19. Section 10.3(a)(iii) of the Agreement is hereby amended and restated in its entirety as follows: 

 

	 	(iii)	forthwith if a situation of Force Majeure as provided by Section 13.7 or an inability to supply continues for three (3) months or more.

 The following two new paragraphs will be added to complete the amendment: 

20. Section 10.4 of the Agreement is hereby amended by adding the following clause immediately before the period at the end of
Section 10.4: 
 “... and (iii) all safety stock then maintained by Manufacturer to the extent within the
quantities defined in Section 3.14” 
 21. Section 10 of the Agreement is hereby amended by adding the following
new Section 10.7 immediately after Section 10.6: 
  

	 	10.7	Termination for Price Erosion. SPIL shall have the right to terminate this Agreement at any time upon ninety (90) days written notice to LONZA if the
Registered Price for Zadaxin charged by SPIL to its customers in China during an applicable calendar quarter has decreased to [***] or less (a decrease of [***]% from the current Registered Price of [***] RMB), due solely to a
directive or order of a governmental or regulatory authority. SPIL shall provide to LONZA written evidence of such decrease in Registered Price together with any such written notice. Such evidence may be audited by Lonza. In the event of such
termination, SPIL shall pay to Lonza , with respect to batches of Bulk Drug manufactured, in process or originally scheduled for delivery within six (6) months after termination pursuant to previously submitted purchase orders, one hundred
percent (100%) of the price for such batches, plus the cost of raw materials and any other costs or expenses incurred or irrevocably 

  
 7 

	 	10.8	committed prior to such termination. With respect to batches of Bulk Drug originally scheduled for delivery more than six (6) months after termination pursuant to
previously submitted purchase orders, SPIL shall have no obligation to pay for such batches. Additionally, in consideration for SPIL’s right to terminate under this Section 10.7, for a period of one (1) year following the effective
date of termination of this Agreement, SPIL shall not enter into any agreement with a third party for the supply, delivery or manufacture of the Product without first giving Lonza a period of thirty (30) days to review the proposed commercial
terms of such proposed arrangement; provided that if SPIL is unable to provide such terms due to confidentiality obligations then SPIL shall provide to Lonza terms that are substantially similar. In the event that Lonza decides prior to the end of
such thirty (30) days to provide substantially similar or superior commercial terms, SPIL shall be obligated to enter into a new supply agreement upon such substantially similar or superior commercial terms proposed by Lonza.

 22. The Agreement is hereby amended by deleting Section 12.2 in its entirety. 

23. The Agreement is hereby amended by adding the following new Section 13.10 immediately following Section 13.9: 

13.10 Public and Commercial Bribery Representations and Warranties. Manufacturer hereby represents and warrants that it has not, and
agrees that it will not, in connection with the transactions contemplated under this Agreement, make or promise or offer to make any payment or transfer of anything of value, directly or indirectly: (i) to any governmental official or
government employee (including employees of government-owned entities or corporations); or (ii) to any political party, official of a political party or candidate (or to a third party for payment to any of the foregoing) in connection with the
transactions contemplated under this Agreement in order to obtain or retain business or to secure any improper advantage. It is the intent of the parties that no payments or transfers of value shall be made which have the purpose or effect of public
or commercial bribery, acceptance of or acquiescence in extortion, kickbacks or other unlawful or improper means of obtaining business. This section shall not, however, prohibit normal and customary business entertainment or providing business
mementos of nominal value; provided, however, that all such payments shall be lawful, reasonable, directly related to the business of the Manufacturer, accurately described in the books and records of Manufacturer. 

24. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument. 

  
 8 

 25. The performance, enforcement, breach or termination of this Amendment and any remedies
relating thereto, shall be governed by and construed under the substantive laws of the United Kingdom, without regard to conflicts of law rules. 
 IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their respective duly authorized representatives effective
as of the Amendment Date. 
  

									
	SCICLONE PHARMACEUTICALS	 		 	LONZA SALES LTD.
	INTERNATIONAL LTD.	 		 		 	
					
	By:	 	 \s\ Hans P. Schmid
	 		 	By:	 	 \s\ Steve Waldman

					
	Name:	 	 Hans P. Schmid
	 		 	Name:	 	 Steve Waldman

					
	Title:	 	 President & Managing Director
	 		 	Title:	 	 Authorized Signatory

  
 9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}]]