Document:

EX-10.3

 EXHIBIT 10.3 

 

			
	

	  	 Friedhelm Blobel, Ph.D.

Executive Director

 CONFIDENTIAL  
 March 29, 2013 
 Hong Zhao 
 Dear Mr. Zhao, 
 I am pleased to offer you a position with NovaMed
Pharmaceuticals (Shanghai) Co., Ltd. (“NovaMed”) (the “Company”), an affiliate of SciClone Pharmaceuticals Inc. as its Chief Executive Officer of China Operations reporting to me, President and Chief Executive Officer of Sciclone
Pharmaceuticals Inc. The position includes responsibility as CEO of SciClone Pharmaceuticals (China) Ltd. (see also exhibit a attached to this letter). The position will be based out of our offices located at 30F Shanghai Times Square No. 93
Huaihai Zhong Road, Shanghai 200021, China. Your start date will be March 15, 2013. 
 If you decide to join us, you
will receive an annual base salary of RMB 1,850,000 (one million and eight hundred fifty thousand RMB) less applicable withholding taxes which will be paid monthly in accordance with the Company’s normal payroll procedures. As an
employee, you will be eligible to participate in the Company’s annual bonus program, under which you will have an annual bonus opportunity targeted at 53% (fifty threepercent) of your then current annual base salary and which will
be earned based on your achievement of business objectives as established annually by the Company’s President and Chief Executive Officer in accordance with the terms of the executive bonus program and will be paid in China in the way base
salary is administered. You will be entitled to the pro-rata bonus in January 2014 if you can join the company on or before September 30, 2013. Such bonus, if earned, shall be paid not later than the date that is two and one-half months
following the close of the year in which such bonus is earned. 
 As an employee, you are entitled to participate in the China
social benefits programs such as Pension, Medical, Unemployment Insurance, subjected to the China state’s relevant regulation. You including your family members will be reimbursed for health insurance costs capped at RMB 13,080 (or the
corresponding US $ amount) per month. You will also be entitled to participate in SciClone’s US’s life insurance plan subject to the terms, conditions and overall administration of SciClone US’s life insurance plan, which is capped at
an amount of US$ 203.00 per month. You are also entitled to 15 annual leave days per year, prorated in 2013 according to the first date of employment. A car (BMW 325) and driver will also be provided. Lastly, since your family is still in
Nanjing, the Company will provide you with a place in Shanghai to live. In addition, if you decide to join us, it will be recommended at the first meeting of the Company’s Board of Directors (the “Board”) following your employment
start date that the Company will 

 Hong Zhao 
 March 29, 2013 
  Page
 2
 
  
  

	 	a.	either grant you an option to purchase 100,000 shares of the Company’s common stock at a price per share equal to the fair market value per share of the
Company’s common stock on the date of the first day of employment. Subject to your continued employment, twenty-five percent (25%) of the option shares shall initially vest (become exercisable) on the first anniversary of your employment
start date (and no shares shall vest before such date) and the remaining shares shall vest monthly over the next thirty-six (36) months in substantially equal monthly amounts. Plus you will be granted 50,000 performance based options. These
options will vest in accordance with you achieving the criteria specified. Or, alternatively 

  

	 	b.	you will be granted 50,000 time based Restricted Stock Units (RSU’s) vesting 25% at each of the one, two, three and four year anniversary or the first open trading
window after such anniversary plus 50,000 option shares that are performance based. The performance based options will vest in accordance with you achieving the criteria specified. 

The RSU’s and option shares shall be subject to the terms and conditions of the Company’s stock option plan and an appropriate
form of stock option agreement, which you will be required to sign as a condition of receiving any RSU’s and options. You must decide your preference for a. or b. above by March 10, 2013. Over time, additional stock option grants
may be made available in the sole discretion of the Board of Directors. 
 In separate documents the company will provide you
with a severance agreement as well as a Change in Control (CiC) agreement. 
 We look forward to a mutually beneficial
relationship. However, you are free to resign at any time, for any reason or for no reason. Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause, and with or without notice. Except in the
case of termination for cause, we will give you 30 days notice of termination of your employment. Similarly we request, however that, in the event of resignation, you give the Company at least thirty (30) days notice. 

Your job offer and employment, is contingent upon the clearance of reference and background checks satisfactory to the Company. The
company expects that you are in possession of appropriate documents to work in the People’s Republic of China. 
 Please
prepare the following documents for the HR Department. Such documentation must be provided prior to March 14, 2013. 

Passport sized photo 

 Hong Zhao 
 March 29, 2013 
  Page
 3
 
  

Signed offer letter 
 Photocopy of ID card (both sides) or the first page of your passport 
 Work Permit
or similar documents for PRC 
 Photocopy of Certificate of Academic Degree 

Bank account information (Bank name, Bank address, SWIFT code, A/C name, A/C No.) 

Verification of separation from your last employer 
 We also ask that, if you have not already done so, you disclose to the Company any and all agreements relating to your prior employment that may affect your eligibility to be employed by the Company or
limit the manner in which you may be employed. It is the Company’s understanding that any such agreements will not prevent you from performing the duties of your position and you represent that such is the case. Moreover, you agree that, during
the term of your employment with the Company, you will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which the Company is now involved or becomes involved during the term of
your employment, nor will you engage in any other activities that conflict with your obligations to the Company. Similarly, you agree not to bring any third-party confidential information to the Company, including that of your former employer, and
that in performing your duties for the Company, you will not in any way utilize any such information. 
 As with all of our
employees, your employment is also subject to our general employment policies, many of which are described in our Employee Handbook. As a Company employee, you will be expected to abide by Company rules and standards. You will be specifically
required to sign an acknowledgment that you have read and that you understand the Company’s rules of conduct, which are included in the Company Handbook. 
 Hong, we are excited about the prospect of having you join our team and look forward to a mutually productive and successful relationship. 

To indicate your acceptance of the Company’s offer, please sign and date this letter in the space provided below. If you accept our
offer, your first day of employment shall be subject to mutual agreement, but in no event will it be later than March 15, 2013. This letter, along with any agreements relating to proprietary rights between you and the Company, set forth
the terms of your employment with the Company and supersede any prior representations or agreements including, but not limited to any representations made during your interviews, whether written or oral. This letter, including, but not limited to,
its at-will employment provision, may not be modified or amended except by a written agreement signed by the Company President and you. This offer of employment will terminate if it is not accepted, signed and returned by Wednesday,
February 27, 2013.  
 We look forward to your favorable reply and to working with you. 

 Hong Zhao 
 March 29, 2013 
  Page
 4
 
  
  

	
	Sincerely,
	
	/s/ Friedhelm Blobel
	 Friedhelm Blobel, Ph.D.

Executive Director

	
	 For and on behalf of

NovaMed Pharmaceuticals (Shanghai) Co., Ltd.
 and
its affiliates

 AGREED TO AND ACCEPTED: 

			
		
	Signature:	 	/s/ Hong Zhao
	Printed Name:	 	Hong Zhao
	Date:	 	March 29, 2013EX-10.4

 EXHIBIT 10.4 
 SCICLONE PHARMACEUTICALS, INC. 
 CHANGE IN CONTROL AGREEMENT 

This Change in Control Agreement (the “Agreement”) is effective as of March 15, 2013, or the first date of
employment by and between Hong Zhao (the “Employee”) and SciClone Pharmaceuticals, Inc., a Delaware corporation (the “Company”). 
 RECITALS 
 A. The Employee presently serves as Chief Executive Officer of China
operations of the Company and performs significant strategic and management responsibilities necessary to the continued conduct of the Company’s business and operations. 
 B. The Board of Directors of the Company (the “Board”) has determined that it is in the best interests of the Company and its stockholders to assure that the Company will have the
continued dedication and objectivity of the Employee, notwithstanding the possibility or occurrence of a Change in Control (as defined below) of the Company. 
 C. The Board believes that it is imperative to provide the Employee with certain severance benefits upon the Employee’s termination of employment following a Change in Control that will provide the
Employee with enhanced financial security and provide sufficient incentive and encouragement to the Employee to remain with the Company following a Change in Control. 
 AGREEMENT 
 The Employee and the Company agree as set forth below: 

1. Terms of Employment. The Company and the Employee agree that the Employee’s employment is based on the original offer
letter and labor contract terms and that their employment relationship may be terminated by either party at any time, with or without Cause, and, if applicable, in accordance with Section 2 below. If the Employee’s employment with the
Company terminates for any reason following a Change in Control, but on or before the first anniversary of the Change in Control, the Employee shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by
this Agreement. During his employment with the Company, the Employee agrees to devote his full business time, energy and skill to his duties with the Company. These duties shall include, but not be limited to, any duties consistent with the
Employee’s position that may be assigned to the Employee from time to time by the Company or the Board. 

  
 1 

 2. Severance Benefits Upon Termination following a Change in Control. Subject to the
limitations set forth in Sections 3 and 4 below, if the Employee’s employment with the Company terminates following a Change in Control but on or before the first anniversary of such Change in Control, then the Employee shall be entitled
to receive, in addition to the compensation and benefits earned by the Employee through the date of his termination, severance benefits as follows: 
 (a) Involuntary Termination. If the Employee’s employment with the Company is terminated as a result of Involuntary Termination, then the Employee shall be entitled to receive the following
severance benefits: 
 (i) The Employee shall be entitled to receive severance pay in an amount based on a termination date that
occurs within the severance pay schedule below. The severance amount will be based on his annual base salary as in effect at the time of such termination. Any severance to which the Employee is entitled pursuant to this section shall be paid in a
lump sum, less applicable withholding, within thirty (30) days following the Employee’s termination. 
  

	 	a.	Three years severance pay if the termination date is between his start of employment and June 30, 2013, 

 

	 	b.	Two years and nine months severance pay if the termination date is between July 1, 2013 and September 30, 2013, 

 

	 	c.	Two years and six months severance pay if the termination date is between October 1, 2013 and December 31, 2013, 

 

	 	d.	Two years and three months severance pay if the termination date is between January 1, 2014 through March 31, 2014, 

 

	 	e.	Two years severance pay if the termination date is on April 1, 2014 or anytime thereafter. 

(ii) The Executive shall be entitled to receive a separation bonus equal to the gross amount of fifty percent (50%) of the average
annual performance bonus paid to the Executive for the two (2) most recent fiscal years for which bonuses have been paid prior to the termination date. If no or only one annual bonus has been paid at the time of termination the target bonus
will be used as reference. 
 (iii) With respect to any unvested options to purchase shares of the stock of the Company held by
the Employee; Section 12.1 (b) of the 2005 Equity Incentive Plan, as amended (the “Plan”), notwithstanding, if a Change in Control occurs and the “Acquiror”, as defined in the Plan, does not assume the
“Awards”, as defined in the Plan, held by Employee, then all such Awards held by Employee shall become fully vested and exercisable as of a date ten (10) business days prior to the occurrence of the closing of the transaction
resulting in the Change in Control, with any acceleration and exercise subject to, and conditional upon, the actual closing of such transaction.” 
 (iv) The Employee shall be entitled to exercise all vested options to purchase shares of the stock of the Company held be the Employee (including any options to purchase shares that become vested for a
period of twelve (12) months after the date of such termination (notwithstanding anything to the contrary otherwise provided under the terms and conditions of such options). 

(v) The Company shall, if permitted under the Company’s existing health insurance plans, continue the Executive’s existing
group health insurance coverage. If not so permitted, the Company shall reimburse the Executive for any health insurance premiums paid by the Executive for continued group health insurance coverage. Such health insurance coverage or reimbursement of
premiums shall continue until the earlier of (i) twelve (12) months after the date of the Executive’s Involuntary Termination or (ii) the date on which the Executive commences New Employment. 

  
 2 

 (b) Voluntary Resignation; Termination For Cause. If the Employee’s employment
terminates by reason of the Employee’s voluntary resignation (but not as a result of an Involuntary Termination) or as a result of the Employee’s termination for Cause, then the Employee shall not be entitled to receive any severance pay
or benefits under this Agreement. 
 (c) Disability; Death. If the Company terminates the Employee’s employment as a
result of the Employee’s Disability, or death, then the Employee shall not be entitled to receive any severance pay or benefits under this Agreement. 
 3. Release of Claims; Resignation. The Employee’s entitlement to any severance pay or benefits under Section 2(a) is conditioned upon the Employee’s execution and delivery to the
Company of (a) a general release of known and unknown claims in the form attached hereto as Exhibit A and (b) a resignation from all of the Employee’s positions with the Company, including from the Board of Directors and any
committees thereof on which the Employee serves, in a form satisfactory to the Company. 
 4. Parachute Payments. In the
event that any payment or benefit received or to be received by the Employee pursuant to this Agreement or otherwise (collectively, the “Payments”) would result in a “parachute payment” as described in section 280G of
the Internal Revenue Code of 1986, as amended, notwithstanding the other provisions of this Agreement, the amount of such Payments will not exceed the amount which produces the greatest after-tax benefit to the Employee. For purposes of the
foregoing, the greatest after-tax benefit will be determined within thirty (30) days of the occurrence of such payment to the Employee, in the Employee’s sole and absolute discretion. If no such determination is made by the Employee within
thirty (30) days of the occurrence of such payment, the Company will promptly make such determination in a fair and equitable manner. 
 5. Consulting Services. During the six (6) months following any Involuntary Termination for which the Employee receives the severance pay and benefits described in Section 2(a), the
Employee shall be retained by the Company as an independent contractor to provide consulting services to the Company at its request for up to eight (8) hours per week. These services shall include any reasonable requests for information or
assistance by the Company, including, but not limited to, the transition of the Employee’s duties. Such services shall be provided at mutually convenient times. For the actual provision of such services, the Company shall pay to the Employee a
consulting fee of $1,000 per eight hour day, plus reasonable out-of-pocket expenses (for example, travel and lodging). 
 6.
Company’s Successors. Any successor to the Company or to all or substantially all of the Company’s business and/or assets will be bound by this Agreement in the same manner and to the same extent as the Company. For all purposes
under this Agreement, the term “Company” will include any successor to the Company’s business and/or assets. 

  
 3 

 7. Employee’s Successors. All rights of Employee hereunder will inure to the
benefit of, and be enforceable by, Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. The Employee will have no right to assign any of his or her obligations or
duties under this Agreement to any other person or entity. 
 8. Definition of Terms. The following terms referred to in
this Agreement shall have the following meanings: 
 (a) “Cause” shall mean any of the following:

 (i) the Employee’s theft, dishonesty, misconduct or falsification of any records of the Company, its successor, or any
subsidiary of the Company or its successor (collectively, the “Company Group”); 
 (ii) the Employee’s
misappropriation or improper disclosure of confidential or proprietary information of the Company Group; 
 (iii) any
intentional action by the Employee which has a material detrimental effect on the reputation or business of the Company Group; 

(iv) the Employee’s failure or inability to perform any reasonable assigned duties after written notice from the Company Group of,
and a reasonable opportunity to cure, such failure or inability; 
 (v) any material breach by the Employee of any employment
agreement between the Employee and the Company Group, which breach is not cured pursuant to the terms of such agreement; or 

(vi) the Employee’s conviction of any criminal act which impairs the Employee’s ability to perform his or her duties for the
Company Group. 
 (b) “Change in Control” shall mean: (i) a merger or other transaction in which
the Company or substantially all of its assets is sold or merged and as a result of such transaction, the holders of the Company’s common stock prior to such transaction do not own or control a majority of the outstanding shares of the
successor corporation, (ii) the election of nominees constituting a majority of the Board which nominees were not approved by a majority of the Board prior to such election, or (iii) the acquisition by a third party of twenty percent
(20%) or more of the Company’s outstanding shares which acquisition was without the approval of a majority of the Board in office prior to such acquisition. 

  
 4 

 (c) “Constructive Termination” shall mean any one or more of the
following: 
 (i) without the Employee’s express written consent, the assignment to the Employee, following the Change in
Control, of any title or duties, or any limitation of the Employee’s responsibilities, that are substantially inconsistent with the Employee’s title(s), duties, or responsibilities with the Company Group immediately prior to the date of
the Change in Control; 
 (ii) without the Employee’s express written consent, the relocation of the principal place of
the Employee’s employment, following the Change in Control, to a location that is more than fifty (50) miles from the Employee’s principal place of employment immediately prior to the date of the Change in Control, or the imposition
of travel requirements substantially more demanding of the Employee than such travel requirements existing immediately prior to the date of the Change in Control; 
 (iii) any failure by the Company Group, following the Change in Control, to pay, or any material reduction by the Company Group of, (1) the Employee’s base salary in effect immediately prior to
the date of the Change in Control, or (2) the Employee’s bonus compensation, if any, in effect immediately prior to the date of the Change in Control (subject to applicable performance requirements with respect to the actual amount of
bonus compensation earned by the Employee), unless base salary and/or bonus reductions comparable in amount and duration are concurrently made for a majority of the other employees of the Company Group who have substantially similar titles and
responsibilities as the Employee; and 
 (iv) any failure by the Company Group, following the Change in Control, to
(1) continue to provide the Employee with the opportunity to participate, on terms no less favorable than those in effect for the benefit of any employee group which customarily includes a person holding the employment position or a comparable
position with the Company Group then held by the Employee, in any benefit or compensation plans and programs, including, but not limited to, the Company Group’s life, disability, health, dental, medical, savings, profit sharing, stock purchase
and retirement plans, if any, in which the Employee was participating immediately prior to the date of the Change in Control, or in substantially similar plans or programs, or (2) provide the Employee with all other fringe benefits (or
substantially similar benefits), including, but not limited to, relocation benefits, provided to any employee group which customarily includes a person holding the employment position or a comparable position with the Company Group then held by the
Employee, which the Employee was receiving immediately prior to the date of the Change in Control. 
 However, the foregoing conditions shall
not constitute a Constructive Termination unless the Employee has given written notice of any such condition(s) to the Chairman of the Board and allowed the Company Group at least twenty (20) days thereafter to correct such condition(s). If
such condition(s) are not corrected within that twenty (20) day period, the Employee may give written notice of her Constructive Termination to the Board, which shall be an Involuntary Termination. 

  
 5 

 (d) “Disability” means the inability of the Employee, in the opinion
of a qualified physician, to perform the essential functions of the Employee’s position with the Company Group, with reasonable accommodation, because of the sickness or injury of the Employee. 

(e) “Involuntary Termination” shall mean the occurrence of either of the following events after a Change in
Control, but on or before the first anniversary of such Change in Control: 
 (i) termination by Company Group of the
Employee’s employment without Cause; or 
 (ii) the Employee’s Constructive Termination. 

“Involuntary Termination” shall not include any termination of the Employee’s employment that is (1) for Cause, (2) a result of
the Employee’s death or Disability, or (3) a result of the Employee’s voluntary resignation. 
 (f)
“New Employment” shall mean any employment obtained by the Employee after the termination of the Employee’s employment with the Company. 
 9. Nonsolicitation. During his or her employment with the Company, and for a period of one (1) year following the termination of his or her employment for any reason, the Employee shall not
directly or indirectly recruit, solicit, or induce any person who on the date hereof is, or who subsequently becomes, an employee, sales representative or consultant of the Company, to terminate his or her relationship with the Company. 

10. Successors. 
 (a) Company’s Successors. Any successor to the Company or to all or substantially all of the Company’s business and/or assets shall be bound by this Agreement in the same manner and to
the same extent as the Company. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets. 
 (b) Employee’s Successors. All rights of the Employee hereunder shall inure to the benefit of, and be enforceable by, the Employee’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. The Employee shall have no right to assign any of her obligations or duties under this Agreement to any other person or entity. 

  
 6 

 11. Notice. 
 (a) General. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by U.S.
registered or certified mail, return receipt requested and postage prepaid. In the case of the Employee, mailed notices shall be addressed to the Employee at the home address which he most recently communicated to the Company in writing. In the case
of the Company, mailed notices shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary. 
 (b) Notice of Termination. Any termination by the Company Group or the Employee of their employment relationship shall be communicated by a written notice of termination to the other party.

 12. Miscellaneous Provisions. 
 (a) No Duty to Mitigate. The Employee shall not be required to mitigate the amount of any payment contemplated by this Agreement (whether by seeking New Employment or in any other manner), nor
shall any such payment be reduced by any earnings that the Employee may receive from any other source. 
 (b) Waiver. No
provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Employee and by an authorized officer of the Company (other than the Employee). No waiver by
either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 

(c) Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of
the State of California. 
 (d) Severability. The invalidity or unenforceability of any provision or provisions of this
Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect. 
 (e) Arbitration. Any dispute, controversy or claim arising out of or relating to this contract, including the validity, invalidity, breach or termination thereof, shall be settled by arbitration in
Hong Kong under the Hong Kong International Arbitration Centre Administered Arbitration Rules in force with the Notice of Arbitration is submitted in accordance with these rules. Judgment upon any decision or award rendered by the arbitrator may be
entered in any court having jurisdiction over the matter. The Employee and the Company knowingly and willingly waive their respective rights to have any such disputes or claims tried to a judge or jury. 

(f) Prior Agreements. This Agreement supersedes all prior understandings and agreements, whether written or oral, regarding the
subject matter of this Agreement. 

  
 7 

 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by its duly authorized officer, as of the day and year first above written. 
  

			
	SCICLONE PHARMACEUTICALS, INC.
		
	By: 	 	/s/ Friedhelm Blobel
		 	

  

			
	EMPLOYEE
	
	/s/ Hong Zhao
		 	HONG ZHAO

  
 8 

 Exhibit A 
 RELEASE 
 In exchange for the severance pay and benefits described in the
Executive Severance Agreement between SciClone Pharmaceuticals, Inc. (the “Company”) and me of March 15,, 2013, I hereby release the Company, its parents and subsidiaries, and their officers, directors, employees,
attorneys, stockholders, successors, assigns and affiliates, of and from any and all claims, liabilities, and causes of action of every kind and nature, whether known or unknown, based upon or arising out of any agreements, events, acts, omissions
or conduct at any time prior to and including the execution date of this Release, including, but not limited to: all claims concerning my employment with the Company or the termination of that employment; all claims pursuant to any PRC Labor
Contract Law and the regulations promulgated by the local government having jurisdiction over the employment. 
 I am knowingly,
willingly and voluntarily releasing any claims I may have under relevant local laws. I acknowledge that the consideration given for the release in the preceding paragraph hereof is in addition to anything of value to which I was already entitled.

 I hereby waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect
with respect to my release of any unknown claims I may have, and I affirm that it is my intention to release all known and unknown claims that I have or may have against the parties released above. 

 This Release contains the entire agreement between the Company and me regarding the subjects
above, and it cannot be modified except by a document signed by me and an authorized representative of the Company. 
  

							
		 		 	EMPLOYEE
			
	Date:                             
                                       	 		 	 
		 		 	HONG ZHAO

  
  

							
		 		 	SCICLONE PHARMACEUTICALS, INC.
				
	Date:                             
                                       	 		 	By:	 	 
				
		 		 	Its:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}]]