Document:

Employment Agreement between Tanox, Inc. and Danong Chen

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 This employment agreement (“Agreement”) is effective as of
September 8, 2006 (“Effective Date”), by and between Tanox, Inc. (“Tanox” or the “Company”) and Danong Chen (“Executive”). This Agreement may sometimes refer to Tanox and Executive singularly as a
“Party” or collectively as the “Parties.” 
 WHEREAS, the Board of Directors of Tanox (“Board”) has previously
determined that it is in the best interests of the Company and its shareholders to retain the Executive and to induce the employment of the Executive for the long-term benefit of the Company; 
 WHEREAS, the Company desires to employ the Executive on the terms set forth below to provide services to the Company and its affiliated companies, and
the Executive is willing to accept such employment and provide such services on the terms set forth in this Agreement; 
 NOW, THEREFORE, in
consideration of the foregoing and for other good and valuable consideration, the parties hereto do hereby agree: 
 1.
Employment and Duties of Executive 
 On the terms and subject to the conditions set forth in this Agreement, Tanox employs
Executive as its President and Chief Executive Officer. Executive shall perform such duties, and have such power, authority, functions, and responsibilities for Tanox, as are commensurate and consistent with this position. Executive shall also have
such additional powers, authority, functions, duties, and responsibilities as may be assigned, from time to time, by the Board. Executive shall report to the whole Board or its designee. 
 2. Place of Employment 
 Executive shall perform the
required duties under this Agreement at the Company’s offices in the greater Houston, Texas metropolitan area, and in such other place or places to which Tanox may, from time to time, request Executive to travel in connection with the
Executive’s duties under this Agreement. 
 3. Time to be Devoted to Executive’s Contractual Duties

 Executive shall give Executive’s best efforts and endeavors, on a full time basis, to the discharge of Executive’s duties
under this Agreement and shall not, at any time during Executive’s employment with Tanox, without the Board’s written permission, engage in any business activity other than the business activities permitted or required under this
Agreement, or enter into the services of or be employed in any capacity or for any purpose by any individual, firm, association, organization, partnership (general or limited), corporation, limited liability 
  

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 company, or other party or legal entity other than the Company (or any affiliate of the Company), on a fee or salary, or
other compensatory basis, it being the intention of the Company and Executive that the capacity in which Tanox hired Executive under this Agreement represents a full-time duty and responsibility. The foregoing shall not be interpreted to prohibit
Executive from engaging in recreational, charitable, religious, or community service activities outside the scope of Executive’s employment under this Agreement, or from making passive investments in businesses or enterprises, so long as
(i) such activities or investments, individually or in the aggregate, do not interfere or require services on the part of Executive that interfere with Executive’s performance of Executive’s duties and obligations under this
Agreement; (ii) such activities or investments do not involve or relate to any activities or business in competition with the business of the Company or any affiliates of the Company, and (iii) Executive has complied with Paragraph 9 of
this Agreement with respect to each such activity and investment. 
 4. Term of Employment 
 Executive’s employment shall be for an indefinite period and shall be terminable under the provisions of Agreement Paragraph 7. 
 5. Compensation of Executive 
 A. As compensation for the services and duties Executive is to perform under this Agreement, Tanox agrees to pay Executive a base salary (“Base Salary”) of $330,000 per annum, less applicable withholding and
other lawful deductions, such salary to be payable semi-monthly in equal installments, in arrears, and otherwise in accordance with Tanox’s payroll policies in effect from time to time. 
 B. In February of each year, Executive shall be eligible for a bonus of up to 40% (the “Target Bonus Percentage”) of Executive’s Base
Salary. The Board’s Compensation Committee will determine, in its sole discretion, based on the Company’s performance and on Executive’s performance, whether to pay Executive a bonus and, if so, what amount of the Target Bonus
Percentage Executive will receive. 
 C. In February 2006, Tanox granted Executive a non-qualified option to acquire 100,000 shares of Tanox
common stock at an exercise price equal to the closing share price on the date of grant. Additionally, based on the Company’s performance and on Executive’s performance, the Board’s Compensation Committee may, at its sole discretion,
grant Executive Company stock or stock options in a separate written agreement at any time the Board’s Compensation Committee chooses to do so. This Agreement does not extinguish any previous written stock option agreements between Executive
and the Company; however, it modifies any previous written stock option agreements as provided in Paragraph 7 of this Agreement. 
 D.
Executive shall be authorized to incur, and shall be entitled to receive prompt reimbursement for, all reasonable expenses Executive incurs in performing Executive’s duties and carrying out the responsibilities under this Agreement, including
business meals, entertainment, and travel expenses, provided that Executive complies with all of Tanox’s applicable policies, practices, and procedures related to the submission of expense reports, receipts, or similar documentation of those
expenses. The Company shall reimburse Executive for such expenses in accordance with the Company’s policies. 
  

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 E. During Executive’s employment with the Company, Executive shall be entitled to 28 days of annual
personal time off (“PTO”) determined in accordance with the Company’s PTO policies in effect from time to time. 
 F. During
Executive’s employment with the Company, Executive will be eligible for Tanox employee benefits in accordance with the Company’s employee benefit plans in effect from time to time. 
 G. During September 2006, the Board’s Compensation Committee will, at its sole discretion, review Executive’s performance and consider
appropriate adjustment to Executive’s compensation. Additionally, the Board’s Compensation Committee may, from time to time, when it deems appropriate, consider and make appropriate adjustments to any aspect of Executive’s
compensation by providing Executive written notice of the adjustment; provided that the amount of compensation shall not be less than that set forth in Paragraphs 5.A. and 5.B. Only the Board’s Compensation Committee will have the authority to
adjust Executive’s compensation and this authority is at the Board Compensation Committee’s sole discretion. 
 H. No additional
compensation (except the compensation referenced in this Agreement Paragraph 5) shall be due or payable by the Company to Executive under this Agreement, but nothing in this Agreement shall prohibit the Company from paying Executive any additional
amount as a bonus or otherwise, as the Board’s Compensation Committee may, in its sole discretion, determine from time to time. 
 6. Covenants, Representations, and Warranties of Executive 
 A. Executive covenants and agrees that during
Executive’s employment with the Company: (a) except as permitted under this Agreement, Executive will not engage, directly or indirectly, in any business other than the business of the Company, except at the Board’s direction or with
the Board’s prior written approval; (b) all reports that the Board or the Company may request or require from Executive will be made truthfully and accurately, and Executive shall make, maintain, and preserve all records of the Company in
accordance with Company policies; (c) Executive will fully account for all money, records, goods, products, and other property belonging to the Company of which Executive has custody, and will pay over and/or deliver same promptly whenever and
however Executive may be directed to do so; and (d) Executive will (i) obey all applicable rules, regulations, and special instructions and (ii) be loyal and faithful to the Company at all times. 
 B. Executive acknowledges and agrees that Executive owes a fiduciary duty to the Company. In keeping with these duties, Executive shall make full
disclosure to the Company of all business opportunities pertaining to the Company’s business and shall not appropriate for Executive’s own benefit business opportunities concerning the subject matter of the fiduciary relationship

  

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 C. Executive hereby represents and warrants to the Company that: (a) Executive is experienced in the
subject matter of this Agreement and fully competent to exercise and discharge Executive’s duties and obligations under this Agreement; (b) Executive has all requisite licenses and permits, if any, required to perform Executive’s
duties and obligations under this Agreement; and (c) Executive’s execution of this Agreement and the performance of Executive’s duties at Tanox do not violate the terms or conditions of any prior agreements to which Executive has been
a party, and, at the time of execution of this Agreement, Executive is not a party to any employment or consulting agreements with any person or entity other than the Company. 
 7. Termination 
 The Board may, at its sole discretion, for
any reason or no reason at all, terminate Executive’s employment at any time. Executive’s employment with Tanox may be terminated as outlined in Paragraphs 7.A. through 7.H. 
 A. Termination by the Company for other than Cause; Severance Benefits. If the Board terminates Executive’s employment for any reason other
than Cause (defined below), Executive will be entitled to receive (i) Severance Benefits in an amount equal to (a) eighteen (18) months of Executive’s Base Salary (minus lawful withholdings); plus (b) $30,000 (minus lawful
withholdings) that Executive may use for benefit continuation under COBRA or for any other purpose, and (ii) 18 months of accelerated vesting of Executive’s stock options under any stock option agreement(s) between Executive and Tanox (for
example, if an option that vests over four years is vested with respect to 50% of the shares covered thereby at the time of termination (24/48 months), then, as a result of this clause (ii), such option shall be vested with respect to 87.5% of the
shares (or 42/48 months), and all vested stock options shall be exercisable until the later of (a) the 15th day
of the third month following the date at which the stock options would otherwise have expired in accordance with their original terms, (b) December 31 of the calendar year in which the stock options would otherwise have expired in
accordance with their original terms and (c) such longer period (not to exceed 18 months following the Separation from Service (as defined below) as may be provided by the Treasury Department in the final regulations addressing
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”); provided, however, that the foregoing shall not be construed to cause an incentive stock option to fail to meet the statutory requirements of Section 422
of the Code. The Severance Benefits shall be paid periodically in installments over the eighteen months following the Executive’s “separation from service” (within the meaning of Section 409A and the regulations issued
thereunder) (“Separation from Service”), in accordance with Tanox’s regular payroll practices, provided that no payment shall be due under this Agreement unless: (I) prior to the 60th day after the effective date of Executive’s Separation from Service, Executive has signed a release agreement (“Release Agreement”) that the
Company will provide in which Executive releases any possible claims against the Company and all of its parents, divisions, subsidiaries, affiliates, and related companies, and their present and former agents, employees, officers, directors,
attorneys, stockholders, plan fiduciaries, successors, and assigns (collectively, the “Releasees”); and (II) prior to the 60th day after the effective date of Executive’s Separation from Service, the seven day revocation period in the Release Agreement has expired without Executive’s revocation. Notwithstanding the foregoing, if
Executive’s 
  

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 employment is terminated for any reason other than Cause within one year after a Change of Control, Executive shall
instead be entitled to the Change of Control Severance Benefits described in paragraph 7.D. 
 B. Termination by the Company for
Cause. The Board may, on written notice, effective immediately, terminate Executive’s employment at any time for Cause. For purposes of this Agreement, “Cause” shall mean the following: (i) if Executive should be convicted of
or pleads nolo contendre to any felony offense or to a crime that the Board determines, in its sole discretion, is a crime of moral turpitude (whether or not a felony); (ii) if Executive should commit willful misconduct (that is, done in
bad faith or without reasonable belief that such action is in the best interest of the Company) or violate any law in connection with the performance of any of Executive’s duties, including, without limitation, (a) misappropriation of
funds or property of the Company or any of its affiliates or customers, (b) securing or attempting to secure personally any profit in connection with any transaction entered into on behalf of the Company or any of its affiliates, or
(c) making any material misrepresentation to the Board, the Company, or any of the Company’s affiliates; (iii) if Executive materially violates or fails to comply with any written Company policy; (iv) if Executive materially
breaches any term of this Agreement; or (v) the willful and continued failure or neglect of the Executive to substantially perform her duties with the Company (other than any such failure resulting from incapacity due to physical or mental
disability). The Board shall not have Cause to terminate Executive’s employment under Paragraph 7.B. (iii), (iv), or (v) of this Agreement unless and until the Board provides written notice to Executive identifying Executive’s alleged
violation of policy, breach of this Agreement, or failure to perform (or neglect of) any duty and Executive fails to cure such violation of policy, breach of this Agreement or failure to perform (or neglect of) any duty within 60 days. If
Executive’s employment is terminated for Cause, no further compensation will be due Executive, other than salary accrued to the date of termination. 
 C. Executive’s Resignation for Any Reason. Executive may resign from employment with the Company at any time and for any reason or no reason at all. If Executive’s resignation is not for Good Reason
(defined below), then no further compensation will be due Executive, other than salary accrued to the date of termination. 
 D.
Executive’s Resignation for Good Reason; Change of Control Severance Benefits. Executive may terminate Executive’s employment voluntarily for Good Reason. For purposes of this Agreement, “Good Reason” shall mean the
occurrence of any of the following: (i) a material reduction in Executive’s duties or responsibilities without the express written consent of the Executive; (ii) the Company’s material breach of this Agreement, or (iii) if,
within one year following a Change of Control (as defined in paragraph E. below), the Company: (1) assigns to the Executive any duties inconsistent with the Executive’s position (including offices, titles and reporting requirements),
authority, duties or responsibilities with the Company in effect immediately before the occurrence of the first Change in Control of the Company; (2) removes the Executive from, or fails to re-elect or appoint the Executive to, any position
with the Company that was held by the Executive immediately before the occurrence of the first Change in Control of the Company, except that a nominal change in the Executive’s title shall not constitute such an event; (3) takes any other
action that results in a material diminution in such position, authority, duties or responsibilities; (4) reduces the Executive’s annual base salary as in 
  

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 effect immediately before the occurrence of the first Change in Control of the Company or as the Executive’s annual
base salary may be increased from time to time after that occurrence (the “Base Salary”) or target bonus, provided that Good Reason shall not be deemed to exist where Base Salary or target bonus are reduced as part of an overall cost
reduction program that affects all senior executives of the Company and does not disproportionately affect the Executive; (5) relocates the Executive’s principal office outside of the metropolitan area of the City of Houston, Texas; or
(6) purports to terminate the Executive’s employment by the Company unless notice of that termination shall have been given to the Executive pursuant to, and that notice shall meet the requirements of, clause B of this Paragraph 7.
Executive shall not have Good Reason to resign under this paragraph 7.D. unless and until Executive provides the Company written notice of the Company’s action(s) that Executive believes to constitute Good Reason and the Company fails to cure
within 60 days of receipt of Executive’s written notice of Good Reason. In the event that Executive resigns for Good Reason prior to a Change of Control, Executive will be entitled to receive the Severance Benefits referred to in paragraph 7.A
hereof. In the event that Executive resigns for Good Reason following a Change of Control, Executive will be entitled to receive Change of Control Severance Benefits defined to consist of: (a) a lump sum payment equal to eighteen
(18) months (twenty four (24) months, if the Change of Control occurs after February 1, 2011) of Executive’s Base Salary (minus lawful withholdings); (b) a lump sum payment equal to 1.5 times (2.0 times, if the Change of
Control occurs after February 1, 2011) the dollar amount of Executive’s full Target Bonus Percentage (minus lawful withholdings); (c) a lump sum payment of $30,000 (minus lawful withholdings) that Executive may use for benefit
continuation under COBRA or for any other purpose; and (d) accelerated vesting of Executive’s stock options under any stock option agreement(s) between Executive and Tanox, meaning that all outstanding but unvested stock options shall be
accelerated and fully vested, and all vested stock options shall be exercisable until the later of (i) the 15th
day of the third month following the date at which the stock options would otherwise have expired in accordance with their original terms, (ii) December 31 of the calendar year in which the stock options would otherwise have expired in
accordance with their original terms and (iii) such longer period (not to exceed 18 months following the Separation from Service) as may be provided by the Department of Labor in the final regulations addressing Section 409A of the Code;
provided, however, that the foregoing shall not be construed to cause an incentive stock option to fail to meet the statutory requirements of Section 422 of the Code. Subject to paragraph 7.H hereof, the Change of Control Severance Benefits
shall be payable on the 60th day after the effective date of Executive’s Separation from Service; provided,
however, no payment under this Agreement shall be due unless on or before such payment date (a) Executive has signed a Release Agreement, and (b) the seven day revocation period in the Release Agreement has expired without Executive’s
revocation. 
 E. Definition of “Change of Control”. A “Change in Control” shall be deemed to have occurred on the
date that one or more of the following occurs: 
 (i) Individuals who, on the date hereof, constitute the entire Board of Directors of the
Company (“Incumbent Directors”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the
Company’s stockholders, was approved by a vote of at least a majority of the then Incumbent Directors shall be considered as though such 
  

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 individual was an Incumbent Director, but excluding, for this purpose any such individual whose initial assumption of
office occurs as a result of either an actual or threatened election contest, as such terms are used in Rule 14a-11 under the Securities Exchange Act of 1934, as amended (“Exchange Act”) or other actual or threatened solicitation of
proxies or consents by or on behalf of any Person (as defined below) other than the Board; 
 (ii) The stockholders of the Company shall
approve (1) any merger, consolidation or recapitalization of the Company (or, if the capital stock of the Company is affected, any subsidiary of the Company), or any sale, lease, or other transfer (in one transaction or a series of transactions
contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Company (each of the foregoing being an “Acquisition Transaction”) where (a) the stockholders of the Company immediately prior to
such Acquisition Transaction would not immediately after such Acquisition Transaction beneficially own, directly or indirectly, shares or other ownership interests representing in the aggregate fifty one percent (51%) or more of (I) the
then outstanding common stock or other equity interests of the corporation or other entity surviving or resulting from such merger, consolidation or recapitalization or acquiring such assets of the Company, as the case may be (the “Surviving
Entity”) (or of its ultimate parent corporation or other entity, if any), and (II) the Combined Voting Power of the then outstanding Voting Securities of the Surviving Entity (or of its ultimate parent corporation or other entity, if any) or
(b) the Incumbent Directors at the time of the initial approval of such Acquisition Transaction would not immediately after such Acquisition Transaction constitute a majority of the Board of Directors, or similar managing group, of the
Surviving Entity (or of its ultimate parent corporation or other entity, if any), or (2) any plan or proposal for the liquidation or dissolution of the Company; or 
 (iii) Any Person other than Nancy T. Chang or Tse Wen Chang shall be or become the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of securities of the Company
representing in the aggregate more than forty percent (40%) of either (1) the then outstanding shares of common stock of the Company (“Common Stock”) or (2) the Combined Voting Power of all then outstanding Voting Securities
of the Company; provided, however, that notwithstanding the foregoing, a Change in Control shall not be deemed to have occurred for purposes of this Subsection (iii): 
 (a) Solely as a result of an acquisition of securities by the Company which, by reducing the number of shares of Common Stock or other Voting Securities outstanding, increases (I) the proportionate number of
Common Stock beneficially owned by any Person to more than forty percent (40%) of the Common Stock then outstanding, or (II) the proportionate voting power represented by the Voting Securities beneficially owned by any Person to more than forty
percent (40%) of the Combined Voting Power of all then outstanding Voting Securities; or 
 (b) Solely as a result of an acquisition of
securities directly from the Company except for any conversion of a security that was not acquired directly from the Company, 
 (c)
provided, further, that if any Person referred to in paragraph (a) or (b) of this Subsection (iii) shall thereafter become the beneficial owner of any additional Common Stock or 
  

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 other Voting Securities of the Company (other than pursuant to a stock split, stock dividend or similar transaction),
then a Change in Control shall be deemed to have occurred for purposes of this Subsection (iii). 
 (iv) For purposes of the definition of
“Change in Control”: 
 (1) “Affiliate” shall mean, as to a specified Person, another Person that directly, or indirectly
through one or more intermediaries, controls or is controlled by, or is under common control with, the specified Person, within the meaning of such terms as used in Rule 405 under the Securities Act of 1933, as amended (“Securities Act”),
or any successor rule. 
 (2) “Combined Voting Power” shall mean the aggregate votes entitled to be cast generally in the election
of the Board of Directors, or similar managing group, of a corporation or other entity by holders of then outstanding Voting Securities of such corporation or other entity. 
 (3) “Person” shall mean any individual, entity (including, without limitation, any corporation, partnership, trust, joint venture, association
or governmental body) or group (as defined in Sections 14(d)(3) or 15(d)(2) of the Exchange Act and the rules and regulations thereunder); provided, however, that Person shall not include the Company, any of its subsidiaries, any employee benefit
plan of the Company or any of its majority-owned subsidiaries or any entity organized, appointed or established by the Company or such subsidiaries for or pursuant to the terms of any such plan. 
 (4) “Voting Securities” shall mean all securities of a corporation or other entity having the right under ordinary circumstances to vote in an
election of the Board of Directors, or similar managing group, of such corporation or other entity. 
 F. Death of Executive. This
Agreement will terminate automatically on the death of the Executive and no further compensation will be due Executive, other than salary accrued to the date of termination. 
 G. Return of Company Property and Information. Executive agrees that on termination of Executive’s employment with Tanox, for any reason,
Executive will immediately surrender and turn over to the Company all tangible and intangible Company property, including, without limitation, keys, credit cards, calling cards, access cards, identification cards, Confidential Information (defined
below), Intellectual Property (defined below), computers, personal digital assistants, cell phones, computer software, computer hardware, equipment, books, records, forms, mailing lists, client lists, potential client lists, specifications,
formulae, data, processes, papers, and writings related to the Company’s business, and all other property belonging to the Company together with all copies of the foregoing, it being understood and agreed that the same are the Company’s
sole property. 
 H. Specified Employee. Notwithstanding anything in this Paragraph 7 to the contrary, in the event that Executive is
a “Specified Employee” (as that term is defined under 
  

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 Section 409A of the Code and the regulations issued thereunder) at the time Executive becomes entitled to any
Severance Benefits under this Paragraph 7, no amounts shall be paid to Executive under this Paragraph 7 until the date that is six months and one day following the Executive’s Separation from Service. 
 8. Intellectual Property and Confidential Information 
 A. Executive agrees that all ideas, improvements, inventions, discoveries, biological materials, systems, formulations, techniques, formulas, devices,
methods, processes, programs, designs, models, prototypes, copyrightable works, mask works, trademarks, service marks, trade dress, software programs, business slogans, and other things of value conceived, reduced to practice, made or learned by
Executive, either alone or with others, while employed by the Company and for twelve (12) months thereafter that relate to the Company’s business and/or the business of affiliates of the Company (hereinafter collectively referred to as the
“Intellectual Property”) belong to and shall remain the sole and exclusive property of the Company forever. Executive hereby assigns to the Company all of Executive’s right, title, and interest to all such Intellectual Property.

 B. Executive agrees to keep daily, written, and witnessed records of the conception and reduction to practice of all inventions Executive
directly participates in developing. Further, Executive agrees to promptly and fully disclose all Intellectual Property in writing to the Company. 
 C. Executive agrees, without additional compensation, to cooperate and do all lawful things requested by the Company to protect Company ownership rights in all Intellectual Property. The Company shall compensate Executive at a reasonable
rate for the time actually spent by Executive in response to such requests after termination of Executive’s employment with the Company. If the Company is unable for any reason to secure Executive’s signature on any document needed,
Executive hereby irrevocably designates the Company and its duly authorized officers and agents as Executive’s agent to act for and on Executive’s behalf to do all lawfully permitted acts to further the purposes of this Paragraph with the
same legal force and effect as if executed by Executive. 
 D. Executive warrants that no Intellectual Property has been conceived, reduced
to practice, made, or learned by Executive prior to Executive’s employment with Tanox. 
 E. At the inception of Executive’s
employment relationship under this Agreement, and continuing on an ongoing basis, the Company agrees to provide Executive with certain inventions (including patent applications that have not been published), trade secrets, know-how, technology,
processes, experimental procedures and results, research information, clinical trial information and data, employee records, pricing information, marketing information, financial information, Company strategy information and business plans, and
other sensitive, proprietary, or confidential information concerning the business of the Company, its affiliates or third parties to whom the Company owes confidentiality obligations (hereafter collectively referred to as “Confidential
Information”) that the Company desires to protect, and that Executive has not had 
  

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 access to or knowledge of before the execution of this Agreement. Executive acknowledges and agrees that Executive has
not previously had access to or knowledge of this Confidential Information before the execution of this Agreement. In exchange for the Company’s promises to provide Executive with Confidential Information, Executive shall not during the period
of Executive’s employment with the Company or at any time thereafter, disclose to anyone, publish, or use for any purpose, any Confidential Information or Intellectual Property, except as properly required in the ordinary course of the
Company’s business or as directed and authorized by the Board. 
 F. This Agreement does not supersede any prior or other
confidentiality duties Executive owes to the Company (whether under written agreements, Company policies, applicable law, or any other means), but is in addition thereto, and any such prior confidentiality duties continue unabated. 
 G. Executive’s confidentiality duty does not apply information that is (i) in the public domain or becomes part of the public domain through no
fault of Executive or (ii) was known by Executive prior to Executive’s association with the Company, as evidenced by written records existing at that time. 
 H. The provisions of Paragraph 8 shall survive any termination or expiration of this Agreement, and the termination of Executive’s employment with the Company (for whatever cause or reason). 
 9. Restrictive Covenants 
 Executive agrees that to protect Tanox’s Confidential Information, it is necessary to enter into the following restrictive covenants which are ancillary to the enforceable promises between Tanox and Executive in Paragraph 8.E.

 A. Executive acknowledges that the field of pharmaceutical research, development, and sales in which Tanox is engaged is very competitive.
Executive further acknowledges that Tanox’s field of operations is global, and Tanox has competitors and/or potential competitors throughout the world. Thus, the covenants in this Section are intended to be worldwide restrictions. Accordingly,
Executive hereby agrees that, to protect the Company’s Confidential Information, during Executive’s employment with Tanox and for a period of twelve (12) months thereafter (the “Restrictive Period”), she will not be engaged,
directly or indirectly, as an executive, consultant or an employee of an enterprise in the business of researching, inventing, manufacturing, marketing, selling or developing products that are directly competitive with those the Company was
researching, developing or selling (including Xolair®) during her employment (collectively “Company Products”) if Executive possesses Confidential Information that could be used to enhance the development or marketing of such products. For this purpose, a
product shall be considered directly competitive with a Company Product only if it is an antibody product developed or marketed for use in treating the same disease or condition for which a Company Product has been developed or marketed that
addresses the same biological or pharmacological target. Further, as part of the consideration paid to Executive hereunder, Executive hereby agrees that during the Restrictive Period she will not take any action intended to induce any employee of
the Company to terminate his or her employment with the Company. 
  

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 B. In addition to and without limiting the foregoing, during the Restrictive Period, Executive shall
provide the Company with written notice prior to engaging in any activity, as an employee, consultant or in any other capacity, on Executive’s behalf or for any person, association, or entity, that a reasonable person would view as being
competitive with the business of the Company. 
 C. Executive agrees that the restrictions stated in this provision are reasonably required
to protect the good will and other legitimate business interests of the Company, given the Confidential Information of the Company that she possesses and shall possess in the future as a result of her service under this Agreement. In addition, the
restrictions are narrowly tailored such that they are no greater than necessary to protect the good will and other legitimate business interests of the Company. 
 10. Notice 
 Any and all notices permitted or required to be given under the
terms of this Agreement shall be in writing and may be served by certified mail, with return receipt requested and proper postage prepaid, addressed to the Party to be notified at the appropriate address specified below, or by delivering the same in
person to such Party, or by prepaid telegram addressed to the Party to be notified at said address, or by Federal Express or another nationally-recognized courier service addressed to the Party to be notified at said address. Notice given by
certified mail as aforesaid shall be deemed given and received three (3) days after mailing, whether or not actually received. Any notice given in any other above authorized manner shall be deemed received on actual receipt; but shall also be
deemed received on attempted delivery if such delivery is not accepted. The addresses of the Parties are as follows: 
  

			
	If to the Company:	  	Tanox, Inc.
		  	10555 Stella Link
		  	Houston, Texas 77025
		  	Attention: Board of Directors
		  	With copy to: General Counsel
	  
 If to Executive:
	  	Danong Chen
		  	5138 Cheena
		  	Houston, Texas 77096

 The address of any Party may be changed by notice given in the manner provided in this Paragraph.

 11. General Provisions 
 A. This Agreement may not be assigned by Executive. This Agreement may be 
  

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 assigned in whole or in part by the Company to a successor in interest. Executive expressly agrees to honor and accept
such assignment or other transfer and, on the consummation thereof, to attorn to the Company’s assignee and to perform Executive’s duties and obligations under this Agreement for the benefit of the Company’s assignee as if the
Company’s assignee were the Company. Executive further agrees that, on the consummation of such assignment or other transfer, all references in this Agreement to the Company shall become and shall be deemed to be references to the
Company’s assignee and the Company shall be relieved of all obligations under this Agreement. 
 B. This Agreement shall be governed by,
construed, and enforced in accordance with the internal, local laws, of the State of Texas (without regard to conflicts of law rules) and the obligations of the Company and Executive shall be performable in the State of Texas. The Parties agree that
proper jurisdiction and venue for any dispute arising under this Agreement are in state or federal court in Harris County, Texas. 
 C.
Subject to Paragraph 8.F., this Agreement contains the entire agreement between the Parties relative to the subject matter hereof and supersedes and replaces all prior communications and agreements (oral or written) between Executive and the
Company, except as expressly provided in this Agreement. Except as expressly provided in this Agreement, no variation, modification, or change of this Agreement shall be binding upon either Party hereto unless set forth in a document duly executed
by both Parties. 
 D. This Agreement is intended to express the Parties’ mutual intent, and irrespective of the Party preparing this
document, no rule of construction shall be applied against such Party, as both Parties have actively participated in the preparation and negotiation of this Agreement. 
 E. No Party’s waiver of the other Party’s breach of any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. Failure on either Party’s part to complain of any act or failure to act of the other Party or to declare the other Party in default, irrespective of how long such failure or default continues, shall not constitute a waiver by
such Party of such Party’s rights under this Agreement. 
 F. If any provision of this Agreement or the application thereof to any
person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby and shall be enforced to the greatest
extent permitted by law. 
 G. This Agreement shall inure to the benefit of and be binding on the undersigned Parties and their respective
permitted successors and permitted assigns. Whenever, in this instrument, a reference to any Party is made, such reference shall be deemed to include a reference to such Party’s permitted successors and permitted assigns; however, neither this
Paragraph 11.G. nor any other portion of this Agreement shall be interpreted to constitute a consent to any assignment or other transfer of this Agreement or any part hereof other than pursuant to and in accordance with this Agreement’s other
provisions. 
  

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 H. The prevailing Party in any dispute between the Parties to this Agreement, arising out of the
interpretation, application, or enforcement of any provision of this Agreement, shall be entitled to recover all of its reasonable attorneys’ fees and costs, whether suit be filed or not, including, without limitation, costs and attorneys’
fees related to or arising out of any arbitration, administrative proceedings, trial, or appellate proceedings, or petition for review before any other court or administrative body. 
 I. Notwithstanding any other provision of this Agreement to the contrary, Executive and the Company shall in good faith amend this Agreement to the
limited extent necessary to comply with the requirements under Section 409A of the Code, and any regulations or other guidance issued thereunder, in order to ensure that any amounts paid or payable hereunder are not subject to the additional
20% income tax thereunder while maintaining to the maximum extent practicable the original intent of this Agreement. 
 EXECUTED,
in multiple counterparts, each of which shall have the force and effect of an original, on the Effective Date. 
  

							
	TANOX, INC.	 		 	
				
	By:	 	 /s/ Julia Brown
	 		 	 /s/ Danong Chen

	Printed Name:	 	Julia Brown	 		 	Danong Chen
	Title:	 	Tanox Board Compensation Committee Chair	 		 	
			
	Date: September 8, 2006	 		 	Date: September 8, 2006

  

 Page 13Employment Agreement between Tanox, Inc. and Nancy Chang

 Exhibit 10.2 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT
(“Agreement”) is dated as of Sept. 12, 2006, by and between TANOX, INC. (the “Company”) and NANCY T. CHANG, PhD. (“Dr.
Chang”); 
 W I T N E S S E T H: 
 WHEREAS, Dr. Chang had been the Company’s President and Chief Executive Officer until February 1, 2006 when she became
non-executive chairman; and 
 WHEREAS, the Company recognizes Dr. Chang’s role as founder and CEO since inception of the
Company; and 
 WHEREAS, the Company and Dr. Chang are desirous of establishing the financial and other terms of
Dr. Chang’s transition from the Company as a Chief Executive Officer and of Dr. Chang’s non-executive employment and possible future consulting relationship with the Company; 
 NOW, THEREFORE, for and in consideration of the compensation to be paid Dr. Chang under this Agreement and the mutual promises, covenants and
undertakings contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, and intending to be legally bound hereby, the Company and Dr. Chang agree as follows: 
 1. Resignation as Officer. Dr. Chang has resigned her position as President and Chief Executive Officer of the Company as well as any other
offices, positions or directorships she holds with the Company and its affiliates (other than her position as a director on the Board of Directors of the Company (the “Board”)), effective as of February 1, 2006.
Effective February 1, 2006, Dr. Chang has provided and shall provide services to the Company, in accordance with Paragraph 2 of this Agreement. 

 2. Employment/Consulting Arrangement. 
 (a) Services Period. The Company hereby engages Dr. Chang, to serve as non-executive Chairman and to provide advice and
consulting services during the period commencing February 1, 2006 and ending January 31, 2010, provided that commencing on February 1, 2010 and on each subsequent February 1, such period shall be automatically extended for a
period of one year unless either party gives written notice to the contrary at least 6 months prior to any extension date, and further provided that such period may be earlier terminated as provided herein (the “Services
Period”). The Services Period will terminate immediately upon Dr. Chang’s death or resignation, or, at the election of the Company, (i) if Dr. Chang materially breaches any of her material obligations under this
Agreement and such material breach is not cured within a period of 30 days after written notice from the Company to Dr. Chang specifying the breach, (ii) upon written notice to Dr. Chang in the event Dr. Chang accepts other
employment or a consulting arrangement (inclusive of service on corporate boards) that cumulatively impairs, as determined in good faith by the Board, Dr. Chang’s ability to serve the interests of the Company 30 days after notice thereof
to Dr. Chang and her failure to terminate such arrangement, or (iii) upon written notice to Dr. Chang for any reason or no reason at all as of the date of such notice or such other date as may be indicated therein; provided that, in
the case of (ii) or (iii), Dr. Chang will continue to be paid the cash compensation specified in Section 3(a) at the same time and in the same manner as if the Services Period had not terminated prior to January 31, 2010;
provided that (A) if 
  

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 Dr. Chang is a “specified employee” within the meaning of Section 409A (as defined in
Section 3(j)) such installment payments shall be delayed as necessary to ensure that they are made no earlier than six months following Dr. Chang’s “separation from service” with the Company within the meaning of
Section 409A, and (B) Dr. Chang executes and delivers to the Company a separation agreement, which agreement includes a release of claims against, and a covenant to refrain from making any oral or written statements that are
derogatory, disparaging, slanderous, libelous or defamatory about, the Company and its directors, officers, employees, suppliers, customers and affiliates, in a form reasonably acceptable to the Company and to Dr. Chang, and allows the same to
become binding. In addition, if the Services Period is terminated pursuant to clause (iii) of Section 2(a) above, any Options (as defined below) shall continue to become vested and exercisable in the same manner as if the Services Period
had not been so terminated. Except as provided in this Section 2(a), the Company shall not have any right to terminate the Services Period prior to February 1, 2010. Initially, Dr. Chang will be performing services under this
Agreement as an employee of the Company. Dr. Chang may, in her discretion, convert her relationship with the Company from an employment relationship to a consulting relationship at any time during the Services Period by written notice to the
Company (“Conversion Notice”) of her election to terminate her employment relationship with the Company and continue her Services relationship with the Company under this Agreement as an independent contractor
effective as of a date (the “Conversion Date”) specified in the Conversion Notice that is at least 15 days after the date of the Conversion Notice. In no event will conversion of Dr. Chang’s
relationship with the Company from an employment relationship to a consulting relationship as 
  

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 contemplated by the preceding sentence be considered a resignation terminating the Services Period. The
period during the Services Period prior to the Conversion Date is referred to as the “Employment Period” and the period during the Services Period commencing on the Conversion Date is referred to as the “Consulting Period.”

 (b) Extent of Services. During the Services Period, Dr. Chang shall provide advice and consulting services to
the Company as to such strategic initiatives and special projects, and such other services as may be requested by the Board and shall perform the duties consistent with her role as non-executive Chairman. It is contemplated that during the Services
Period Dr. Chang would, to the extent requested by the Board, provide advice or assistance with respect to strategy development, identifying and evaluating business development and strategic opportunities (including licensing and mergers and
acquisitions), investor relations and raising capital, the development of opportunities for manufacturing joint ventures (particularly in Asia) and in setting priorities in furthering pipeline development efforts. During the Services Period
Dr. Chang shall carry out her duties under this Agreement under the direction of the Board. 
 (c) Confidential
Information. Dr. Chang recognizes and acknowledges that in her past executive capacity she has had and during the Services Period she will have access to Confidential Information (as hereinafter defined) of the Company, its collaborators
and third parties with which the Company has established a relationship of confidentiality, and that such information is a valuable, special and unique asset of the Company or such collaborators or third parties. Therefore, as part of this
Agreement, Dr. Chang agrees that she will not, during or for a period of one year after the term of the Services Period, disclose any Confidential Information she obtains from the Company, as 
  

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 well as Confidential Information developed as a result of services rendered hereunder, to any person,
firm, corporation or other entity for any improper reason or purpose nor use any such Confidential Information for any purpose other than those contemplated by this Agreement without the prior express written consent of the Company. As used in this
Agreement, the term “Confidential Information” will mean any and all confidential information provided by the Company to Dr. Chang in the course of her prior and future services to the Company, as well as Confidential Information
developed as a result of services rendered hereunder. Confidential Information includes, but is not limited to, confidential information about compounds, compositions, formulation techniques, analytical methodology, clinical trial designs and
results, product development strategy and timelines, safety and efficacy data, testing data, processes and procedures, equipment, facilities designs and capabilities, research efforts, marketing research and plans, financial data and projections,
know-how, trade secrets, inventions (whether or not patentable), ideas and other information of a technical, scientific, strategic, legal or economic nature, relating to the future, present or past business, operations, plans or assets of the
Company, its collaborators or third parties with which the Company has established a relationship of confidentiality, which information has been or is provided by the Company to Dr. Chang during the course of Dr. Chang’s prior or
future services to the Company, or are generated or identified by Dr. Chang in connection with her services hereunder; provided, however, that Confidential Information will not include the following; 
 (1) information that at the time of disclosure to Dr. Chang is in the public domain, or information that later becomes part of the
public domain through no act or omission of Dr. Chang in breach of her obligations hereunder; 
  

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 (2) information received by Dr. Chang from a third party who did not acquire such
information on a confidential basis, either directly or indirectly, from the Company and is not under a confidentiality agreement with the Company. 
 (3) information which Dr. Chang is compelled to disclose by operation of law. 
 In the event that
Dr. Chang is requested by subpoena, civil investigation demand or similar process to disclose any Confidential Information of the Company, she will provide prompt notice of such potential disclosure to the Company so that an appropriate
protective order may be sought or a waiver of compliance with the provisions of this Agreement may be granted. If, in the absence of a protective order or the receipt of a waiver hereunder, Dr. Chang is nonetheless legally required to disclose
Confidential Information, then in such event Dr. Chang may disclose such information without liability hereunder, provided that the Company has been given such opportunity as may be reasonable under the circumstances to review the text of such
disclosure before it is made. The obligations of this Paragraph 2(c) will survive termination of Dr. Chang’s services under this Agreement for a period of one year. 
 (d) Noncompetition. Dr. Chang agrees that to protect the Company’s Confidential Information, it is necessary to enter
into the following restrictive covenants which are ancillary to the enforceable promises between the Company and Dr. Chang in Paragraph 2(c). Dr. Chang acknowledges that the field of pharmaceutical research, 
  

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 development, and sales in which the Company is engaged is very competitive. Dr. Chang further
acknowledges that the Company’s field of operations is global, and the Company has competitors and/or potential competitors throughout the world. Thus, the covenants in this Paragraph 2(d) are intended to be worldwide restrictions. Accordingly,
Dr. Chang hereby agrees that, to protect the Company’s Confidential Information, during the greater of the Services Period or the period ending one year after the Services Period hereof (the “Restrictive Period”), she will not be
engaged, directly or indirectly, as an executive, consultant or an employee of an enterprise in the business of researching, inventing, manufacturing, marketing, selling or developing products that are directly competitive with those the Company was
researching, developing or selling (including Xolair®) as of February 1, 2006 (collectively “Company Products”) if Dr. Chang possesses Confidential Information that could be used to materially enhance the development or
marketing of such products. For this purpose, a product shall be considered directly competitive with a Company Product only if it is an antibody product developed or marketed for use in treating the same disease or condition for which a Company
Product has been developed or marketed that addresses the same biological or pharmacological target. Dr. Chang hereby agrees that during the Restrictive Period she will not take any action intended to induce any employee of the Company other
than Leigh Billa to terminate his or her employment with the Company. The obligations of this Paragraph 2(d) for the period specified above will survive termination of Dr. Chang’s services under this Agreement for one year. 
 During the Restrictive Period, Dr. Chang shall provide the Company with written notice and obtain Board approval (which will not be
unreasonably withheld) prior to 
  

 - 7 - 

 engaging in any activity, as an employee, consultant or in any capacity, on Dr. Chang’s behalf
or for any person, association, or entity, that a reasonable person would view as being directly competitive (as defined in the immediately preceding paragraph) with the business of the Company. 
 Dr. Chang agrees that the restrictions stated in this provision are reasonably required to protect the good will and other legitimate
business interests of the Company, given the Confidential Information (as defined above) of the Company that she possesses and shall possess in the future as a result of her service under this Agreement. In addition, the restrictions are narrowly
tailored such that they are no greater than necessary to protect the good will and other legitimate business interests of the Company. 
 (e) Compliance With Company’s Code of Business Conduct and Company Policies. During the Services Period Dr. Chang will comply with the Company’s Code of Business Conduct and, during the
Employment Period, will comply with the provisions of the Company’s Employee Handbook that are not in conflict with the term hereof. 
 3. Compensation and Benefits. 
 (a) Base Compensation. The Company agrees to pay Dr. Chang for
the services provided under this Agreement compensation at the following annual rates for each 12-month period commencing on February 1, 2006 during the Services Period under this Agreement, payable periodically in installments in accordance
with the Company’s regular payroll practices: 
 $465,047 for the period February 1, 2006 through January 31,
2007; 
 $348,785 for the period February 1, 2007 through January 31, 2008; 
 $232,523 for the period February 1, 2008 through January 31, 2009; and 
  

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 $232,523 for the period February 1, 2009 through January 31, 2010 

$232,523 for each year Dr. Chang is employed subsequent to January 31, 2010, or 
 such rate as may be agreed upon by the parties. 
 (b) Performance Bonus. Dr. Chang will be eligible for an annual performance bonus during each of the four years that commence
on February 1 during the Services Period, subject to the achievement of Company performance goals established by the full Board. The amount of any such performance bonus, for a target level of Company performance, will be equal to forty percent
(40%) of the amount of Dr. Chang’s base compensation identified in Paragraph 3(a) for the applicable year. The full Board shall determine the extent to which the applicable Company performance goals have been achieved and the amount
payable to Dr. Chang under any performance bonus based upon such performance. Any performance goals established for purposes of this Section 3(b) shall be based on Company-wide performance only and shall be as favorable, and applied in the
same manner, as any performance goals applied for purposes of determining performance bonuses of the Company’s senior executives. 
 (c) Stock Options. On or as soon as practicable following the date on which this Agreement is actually executed, the Company will grant Dr. Chang an option (the “2006 Option”), pursuant to the
Company’s 1997 Stock Plan, to purchase an aggregate of 80,000 shares of the Company’s Common Stock, $.01 par value per share, at an exercise price equal to the fair market value of such shares as of the date of such grant and otherwise on
substantially the same terms and conditions as the option evidenced by the Non-Qualified Stock Option Agreement dated February 16, 2005 between the Company and Dr. Chang, except that (1) the terms of the 2006 Option shall specify that
the 2006 
  

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 Option, to the extent that it shall have become exercisable during the Employment Period, shall remain
exercisable throughout the Consulting Period; and (2) all such options shall vest upon a change of control. The 2006 Option and all other options to purchase Company stock previously granted to Dr. Chang (collectively, the
“Options”) shall continue to be and become exercisable in accordance with the terms of the agreements (the “Option Agreements”) evidencing such Options and Dr. Chang will continue to be able to exercise each such Option in
accordance with the terms of the applicable Option Agreement until the earlier of (1) the expiration of the general term of the Option as set forth in the applicable Option Agreement (prior to the amendment thereto to comply with this
Section 3(c)) or (2) the later of the 15th day of the third month following the date at which, or December 31 of the calendar year in which, such Option would otherwise have ceased to be exercisable in accordance with the terms of the
Option Agreement. Although the period during which vested Options may be exercised may be extended pursuant to this Paragraph 3(c), nothing in this Paragraph 3(c) shall be construed to mean that the vesting or exercisability of any Options will be
accelerated. The provision of any option with respect to vesting or the first date upon which the option is exercisable shall be appropriately amended from time to time as necessary so that such provision is at least as favorable as those contained
in any future change of control agreement made available to others or in the employment agreement of any member of senior management. 
 (d) Medical Insurance. The Company will use its reasonable best efforts to treat Dr. Chang as an eligible employee of the Company during the Employment Period for purposes of her participation in group
medical and dental plans maintained by the 
  

 - 10 - 

 Company. Once Dr. Chang ceases to be or be treated as an eligible employee for purposes of
her-participation in group medical or dental plans maintained by the Company, Dr. Chang shall be permitted to elect to continue her coverage under the group medical and dental plans maintained by the Company to the extent required under the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) at the expense of the Company. During the Services Period the premiums charged Dr. Chang for her participation in group medical and dental plans maintained
by the Company shall be the premiums charged active employees for the same coverage. After the Services Period, to the extent possible, Dr. Chang shall be permitted to continue her coverage under group medical and dental plans at the
Company’s expense. 
 (e) Employee Benefit Plans. During the Employment Period Dr. Chang will participate in
the Company’s section 401(k) retirement plan in accordance with its terms. To the extent permitted under the terms of such plans, during the Employment Period Dr. Chang will be eligible to participate in welfare benefit plans (as defined
in Section 3 of the Employee Retirement Income Security Act of 1974, as amended). 
 (f) Office and Administrative
Support. During the Services Period, the Company (at the Company’s sole cost and expense) will provide Dr. Chang with executive office space, customary office equipment and reasonable information technology resources both at the
Company’s offices and outside of the Company’s offices at a location selected by Dr. Chang and reasonably acceptable to the Company, paid parking in close proximity to such office space, and secretarial assistance. During the first
two years of the Services Period, Dr. Chang will be entitled to use of a Company owned or leased automobile or, at the Company’s election, reimbursement for costs 
  

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 incurred in connection with the use and ownership or lease of an automobile of substantially the same
quality and on substantially the same terms as provided to Dr. Chang during her employment with the Company as its President and Chief Executive Officer. 
 (g) Expenses. Dr. Chang will be entitled to reimbursement from the Company for reasonable business and travel expenses that
are incurred in connection with the performance of her duties under this Agreement. Without limiting the foregoing, Dr. Chang will be entitled to reimbursement for all reasonable expenses incurred in connection with her attending one or more
industry or scientific conferences (or courses) during the Services Period, subject to a maximum reimbursement of $15,000 per year (inclusive of tuition, travel and hotel). 
 (h) Paid Time Off Fringe Benefits and Perquisites. During the Employment Period, Dr. Chang shall be entitled to receive
vacation and other paid time off days in accordance with the Company’s then existing policies. Except as expressly provided in this Agreement, Dr. Chang shall not be entitled to receive any fringe benefits or perquisites during the
Services Period. 
 (i) Change in Control. If a Change in Control occurs during the Services Period, upon the
occurrence of such Change in Control, the Services Period shall automatically terminate, after executing and delivering a release of claims as described in section 2(a)(B), Dr. Chang shall be entitled to receive Severance Benefits (hereafter
defined) on the 60th day after her “separation from service” (within the meaning of Section 409A) with the Company (or its successor) and its affiliates (unless she is a “specified employee” within the meaning of
Section 409A, in which case the reference to “60th day” shall be deemed to state “on the date that is six months”). The 
  

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 term “Severance Benefits” means a lump sum amount equal to the sum of (i) the scheduled
base compensation described in Section 3(a) above that would have been payable after the date of the Change in Control if the Services Period had continued through January 31, 2010, (ii) the annual performance bonuses described in
Section 3(b) above that would have been payable after the date of the Change in Control if the Services Period had continued through January 31, 2010 and performance during all periods had been at the target level of performance,
(iii) an amount equal to the total premium payments required to maintain the COBRA Coverage for the longest period after the date of the Change in Control permitted under COBRA (but in no event longer than 18 months after the date of the Change
in Control), and (iv) any other accrued and unpaid compensation or reimbursements. 
 For purposes of this Agreement, the
term “Section 409A” means section 409A of the Internal Revenue Code of 1986, as amended and the written guidance thereunder issued by the Internal Revenue Service and the Department of Treasury. 
 For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred on the date that one or more of the
following occurs: (i) Individuals who, on the date hereof, constitute the entire Board of Directors of the Company (“Incumbent Directors”) cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of the then Incumbent
Directors shall be considered as though such individual was an Incumbent Director, but excluding for this purpose any such individual whose initial assumption of office occurs as a result of either an actual or 
  

 - 13 - 

 threatened election contest, as such terms are used in Rule 14a-l1 under the Securities Exchange Act of
1934, as amended (“Exchange Act”) or other actual or threatened solicitation of proxies or consents by or on behalf of any Person (as defined below) other than the Board; (ii) the stockholders of the
Company shall approve (l) any merger, consolidation or recapitalization of the Company (or, if the capital stock of the Company is affected, any subsidiary of the Company), or any sale, lease, or other transfer (in one transaction or a series
of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Company (each of the foregoing being an “Acquisition Transaction”) where (a) the
stockholders of the Company immediately prior to such Acquisition Transaction would not immediately after such Acquisition Transaction beneficially own, directly or indirectly, shares or other ownership interests representing in the aggregate fifty
one percent (51%) or more of (I) the then outstanding common stock or other equity interests of the corporation or other entity surviving or resulting from such merger, consolidation or recapitalization or acquiring such assets of the
Company, as the case may be (the “Surviving Entity”) (or of its ultimate parent corporation or other entity, if any), and (II) the Combined Voting Power of the then outstanding Voting Securities of the Surviving
Entity (or of its ultimate parent corporation or other entity, if any) or (b) the Incumbent Directors at the time of the initial approval of such Acquisition Transaction would not immediately after such Acquisition Transaction constitute a
majority of the Board of Directors, or similar managing group, of the Surviving Entity (or of its ultimate parent corporation or other entity, if any), or (2) any plan or proposal for the liquidation or dissolution of the Company; or
(iii) any Person other than Nancy T. Chang or Tse Wen Chang shall be or become the beneficial 
  

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 owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of securities
of the Company representing in the aggregate more than forty percent (40%) of either (1) the then outstanding shares of Common Stock or (2) the Combined Voting Power of all then outstanding Voting Securities of the Company; provided,
however, that notwithstanding the foregoing, a Change in Control shall not be deemed to have occurred for purposes of this Subsection (iii): (A) solely as a result of an acquisition of securities by the Company which, by reducing the number of
shares of Common Stock or other Voting Securities outstanding, increases (I) the proportionate number of shares of Common Stock beneficially owned by any Person to more than forty percent (40%) of the Common Stock then outstanding, or (II)
the proportionate voting power represented by the Voting Securities beneficially owned by any Person to more than forty percent (40%) of the Combined Voting Power of all then outstanding Voting Securities; or (B) solely as a result of an
acquisition of securities directly from the Company except for any conversion of a security that was not acquired directly from the Company, (C) provided, further, that if any Person referred to in paragraph (A) or (B) of this
Subsection (iii) shall thereafter become the beneficial owner of any additional Common Stock or other Voting Securities of the Company (other than pursuant to a stock split, stock dividend or similar transaction), then a Change in Control shall
be deemed to have occurred for purposes of this Subsection (iii). 
 For purposes of the definition of “Change in
Control”: 
 “Affiliate” shall mean, as to a specified Person, another Person that directly or indirectly
through one or more intermediaries, controls or is controlled by, or is under common control with, the specified Person, within the meaning of such terms as used in Rule 405 under the Securities Act of 1933, as amended, or any successor rule.

  

 - 15 - 

 “Combined Voting Power” shall mean the aggregate votes entitled to be cast
generally in the election of the Board of Directors, or similar managing group, of a corporation or other entity by holders of then outstanding Voting Securities of such corporation or other entity. 
 “Person” shall mean any individual, entity (including, without limitation, any corporation, partnership, trust, joint venture,
association or governmental body) or group (as defined in Sections 14(d)(3) or 15(d)(2) of the Exchange Act and the rules and regulations thereunder); provided, however, that Person shall not include the Company, any of its subsidiaries, any
employee benefit plan of the Company or any of its majority-owned subsidiaries or any entity organized, appointed or established by the Company or such subsidiaries for or pursuant to the terms of any such plan. 
 “Voting Securities” shall mean all securities of a corporation or other entity having the right under ordinary circumstances to
vote in an election of the board of directors, or similar managing group, of such corporation or other entity. 
 The terms of
the foregoing paragraph (j) to the extent permitted by Section 409A shall be modified from time to time so that they are as favorable as comparable provisions applicable to the CEO or any other senior officer of the Company. 
 (j) Services as a Director. For so long as Dr. Chang is receiving compensation hereunder, she shall not be entitled to any
additional compensation, fees or equity for her service on the Board of Directors of the Company, including as Chairman. Dr. Chang acknowledges that the Tanox, Inc. 2000 Non-Employee Directors’ Stock 
  

 - 16 - 

 Option Plan shall be amended to provide that non-employee directors who are receiving compensation for
services as consultants to the Company shall not be eligible to receive grants of stock options under such plan. 
 4. General.

 (a) Notices. Any notice required or permitted to be given under this Agreement will be sufficient if in writing and
sent by registered mail to her residence address, in the case of Dr. Chang, or to its principal office, in the case of the Company, addressed to the attention of the President. 
 (b) No Waiver. No failure by either party hereto at any time to give notice of any breach by the other party of, or to require
compliance with, any condition or provision of this Agreement will be deemed a waiver of similar or dissimilar provisions or conditions at the same time or at any prior or subsequent time. 
 (c) Successor Obligations and Assignment. The rights and obligations of the Company under this Agreement will inure to the benefit
of and be binding upon the successors and assigns of the Company. Specifically, but not by way of limitation, in the event of the merger of the Company with another institution, the merged entity will be bound by the terms of this Agreement as if it
had entered into this Agreement initially, and such merged entity will be substituted for the Company as its successor for all purposes throughout this Agreement hereof, other than Section 2(d) which for purposes of which the term Company shall
only refer to the business of Tanox as in effect on the date of such Agreement. Dr. Chang cannot assign any of her rights, benefits or obligations under this Agreement, except for any assignment of any of the rights to receive payments and
benefits hereunder in connection with family financial planning by 
  

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 Dr. Chang, which assignment shall be subject to the prior written consent of the Company, which
consent will not be unreasonably withheld. Dr. Chang’s rights and benefits under this Agreement will not be subject to involuntary assignment, alienation or transfer, whether by operation of law or otherwise, without the prior written
consent of the Company. Notwithstanding the foregoing, following the Conversion Date (if any), Dr. Chang may assign her rights and obligations under this Agreement to a corporation or limited liability company owned and controlled by her;
provided that all services shall be performed on behalf of such corporation or company by Dr. Chang, and no such assignment shall relieve Dr. Chang from personal responsibility and liability for her covenants and obligations hereunder.

 (d) Amendment. This Agreement may not be modified or any provision hereof waived or amended except by an agreement
in writing executed by both the Company and Dr. Chang. 
 (e) Governing Laws. This Agreement will be subject to
and governed by the laws of the State of Texas without regard to any laws relating to choice or conflicts of laws. 
 (f)
Withholding of Taxes. The Company may withhold from any compensation, payments or benefits under this Agreement all federal, state, city or other taxes as may be required pursuant to any law or governmental regulation or ruling. 

(g) Headings. The Paragraph headings have been inserted for purposes of convenience and will not be used for interpretive
purposes. 
 (h) Severability. If, as the result of the determination of a court of competent jurisdiction, it is
determined that any provision of this Agreement is invalid or 
  

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 unenforceable, then the invalidity or unenforceability of that provision will not affect the validity or
enforceability of any other provision of this Agreement, and all other provisions will remain in full force and effect. 
 (i)
Entire Agreement. Except as otherwise specified in this Paragraph 5(i), this Agreement constitutes the entire agreement of the parties with regard to the subject matter hereof, and contains all the covenants, promises, representations,
warranties and agreements between the parties with respect to the employment relationship between the Company and Dr. Chang, the termination of such employment relationship upon the expiration of the Employment Period and the termination of her
consulting relationship with the Company upon the expiration of the Consulting Period. Each party to this Agreement acknowledges that no representation, inducement, promise or agreement, oral or written, has been made by either party, or by anyone
acting on behalf of either party, which is not embodied herein, and that no agreement, statement, or promise relating to the employment relationship, the separation thereof, or the consulting relationship between the Company and Dr. Chang,
which is not contained in this Agreement, will be valid or binding. Without limiting the foregoing, this Agreement replaces, and constitutes a full and complete accord and satisfaction as to any previous or existing employment agreement between the
Company and Dr. Chang (whether oral or written). However, this Agreement does not supersede any prior confidentiality duties Dr. Chang owes to the Company (whether under written agreements, Company policies, applicable law, or other
means), but is in addition thereto, and any such prior confidentiality duties continue unabated. 
  

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 (j) If a dispute arises out of or related to this Agreement and the dispute cannot be
settled through direct discussions, the Company and Dr. Chang agree that they will first endeavor to settle the dispute in an amicable fashion through the use of a mediator. The mediator will be mutually agreed to by the parties and each party
will pay an equal share of the cost of such mediator. If such efforts fail to resolve the dispute, then any and all claims, demands, causes of action, disputes, controversies and other matters in question arising out of or relating to this
Agreement, any of its provisions, or the employment relationship or the separation of the employment relationship, between the parties, whether sounding in contract, tort or otherwise, whether provided by statute or the common law, for damages or
any other relief (all of which are referred to herein for purposes of Paragraph 5(j) as “Disputes”), will be resolved by binding arbitration. The demand for arbitration will be made within a reasonable period of time after the Dispute has
arisen and prior to the time such Dispute would be barred by the applicable statute of limitations for legal or equitable proceedings. The arbitration proceeding will be conducted in Houston, Texas, by a panel of three arbitrators. Each party will
select one arbitrator, and the two selected arbitrators will select the third arbitrator. If for any reason, all three arbitrators are not selected pursuant to the foregoing process, the American Arbitration Association will select the arbitrator(s)
necessary to complete the panel. The enforcement of this agreement to arbitrate, the validity, construction and interpretation of this agreement to arbitrate will be governed by the Federal Arbitration Act and the Commercial Arbitration Rules then
in effect with the American Arbitration Association. 
  

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 (k) The Company shall reimburse Dr. Chang for her legal costs and expenses in
connection with the preparation and negotiation of this Agreement, subject to review and approval by the audit committee of the Company. 
  

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 IN WITNESS WHEREOF, the parties have executed this Agreement in multiple counterparts each of which
constitute the original on the 12th day of September, 2006. 
  

			
	TANOX, INC.
		
	By:	 	 /s/ Julia R. Brown

	Name:	 	Julia R. Brown
	Title:	 	Tanox Board of Directors
		 	Compensation Committee Chair
		
	By:	 	 /s/ Gary E. Frashier

	Name:	 	Gary E. Frashier
	Title:	 	Member, Tanox Board of Directors
	
	 /s/ Nancy T. Chang

	Nancy T. Chang, Ph.D.

  

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