Document:

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                                                                    EXHIBIT 10.2

                         SCICLONE PHARMACEUTICALS, INC.
                    2004 OUTSIDE DIRECTORS STOCK OPTION PLAN

      1.    ESTABLISHMENT, PURPOSE AND TERM OF PLAN.

            1.1 ESTABLISHMENt. The SciClone Pharmaceuticals, Inc. 2004 Outside
Directors Stock Option Plan (the "PLAN") is established effective as of May 26,
2004, the date on which it is approved by the stockholders of the Company (the
"EFFECTIVE DATE").

            1.2 PURPOSE. The purpose of the Plan is to advance the interests of
the Company and its stockholders by providing an incentive to attract, retain
and reward persons performing services as Outside Directors of the Company and
by motivating such persons to contribute to the growth and profitability of the
Company.

            1.3 TERM OF PLAN. The Plan shall continue in effect until terminated
by the Board or the date on which all of the shares of Stock available for
issuance under the Plan have been issued and all restrictions on such shares
under the terms of the Plan and the agreements evidencing Options granted under
the Plan have lapsed.

      2.    DEFINITIONS AND CONSTRUCTION.

            2.1 DEFINITIONS. Whenever used herein, the following terms shall
have their respective meanings set forth below:

                  (a) "BOARD" means the Board of Directors of the Company. If
one or more Committees have been appointed by the Board to administer the Plan,
"BOARD" also means such Committee(s).

                  (b) "CODE" means the Internal Revenue Code of 1986, as
amended, and any applicable regulations promulgated thereunder.

                  (c) "COMMITTEE" means the compensation committee or other
committee of one or members of the Board duly appointed to administer the Plan
and having such powers as shall be specified by the Board. Unless the powers of
the Committee have been specifically limited, the Committee shall have all of
the powers of the Board granted herein, including, without limitation, the power
to amend or terminate the Plan at any time, subject to the terms of the Plan and
any applicable limitations imposed by law.

                  (d) "COMPANY" means SciClone Pharmaceuticals, Inc. a Delaware
corporation, or any successor corporation thereto.

                  (e) "DIRECTOR" means a member of the Board or of the board of
directors of any other Participating Company.

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                  (f) "DISABILITY" means the permanent and total disability of
the Optionee within the meaning of Section 22(e)(3) of the Code.

                  (g) "EXCHANGE ACT" means the Securities Exchange Act of 1934,
as amended.

                  (h) "FAIR MARKET VALUE" means, as of any date, the value of a
share of Stock or other property as determined by the Board, in its discretion,
or by the Company, in its discretion, if such determination is expressly
allocated to the Company herein, subject to the following:

                        (i) If, on such date, the Stock is listed on a national
or regional securities exchange or market system, the Fair Market Value of a
share of Stock shall be the closing price of a share of Stock (or the closing
bid price of a share of Stock if the Stock is so quoted instead) as quoted on
the Nasdaq National Market, The Nasdaq SmallCap Market or such other national or
regional securities exchange or market system constituting the primary market
for the Stock, as reported in The Wall Street Journal or such other source as
the Company deems reliable. If the relevant date does not fall on a day on which
the Stock has traded on such securities exchange or market system, the date on
which the Fair Market Value shall be established shall be the last day on which
the Stock was so traded prior to the relevant date, or such other appropriate
day as shall be determined by the Board, in its discretion.

                        (ii) If, on such date, the Stock is not listed on a
national or regional securities exchange or market system, the Fair Market Value
of a share of Stock shall be as determined by the Board in good faith without
regard to any restriction other than a restriction which, by its terms, will
never lapse.

                  (i) "NON-EMPLOYEE DIRECTOR" means a Director who (i) is not a
current employee or officer of the Company or any Parent Corporation or
Subsidiary Corporation; (ii) does not receive compensation, either directly or
indirectly, from the Company or any Parent Corporation or Subsidiary Corporation
for services rendered as a consultant or in any capacity other than as a
Director, except for an amount that does not exceed the dollar amount for which
disclosure would be required pursuant to Item 404(a) of Regulation S-K under the
Securities Act ("REGULATION S-K"); (iii) does not possess an interest in any
other transaction for which disclosure would be required pursuant to Item 404(a)
of Regulation S-K; and (iv) is not engaged in a business relationship for which
disclosure would be required pursuant to Item 404(b) of Regulation S-K.

                  (j) "OPTION" means a right to purchase Stock (subject to
adjustment as provided in Section 4.2) pursuant to the terms and conditions of
the Plan. Each Option shall be a nonstatutory stock option; that is, an option
not intended to qualify as an incentive stock option within the meaning of
Section 422(b) of the Code.

                  (k) "OPTION AGREEMENT" means a written agreement between the
Company and an Optionee setting forth the terms, conditions and restrictions of
the Option granted to the Optionee and any shares acquired upon the exercise
thereof.

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                  (l) "OPTIONEE" means a person who has been granted one or more
Options.

                  (m) "OUTSIDE DIRECTOR" means a Director who is not an employee
of the Company or of any Parent Corporation or Subsidiary Corporation.

                  (n) "PARENT CORPORATION" means any present or future "parent
corporation" of the Company, as defined in Section 424(e) of the Code.

                  (o) "RULE 16b-3" means Rule 16b-3 under the Exchange Act, as
amended from time to time, or any successor rule or regulation.

                  (p) "SECURITIES ACT" means the Securities Act of 1933, as
amended.

                  (q) "SERVICE" means an Optionee's service with the Company as
a Director. An Optionee's Service shall be deemed to have terminated if the
Optionee ceases to be a Director, even if the Optionee continues to render
service to the Company in a capacity other than as a Director or commences
rendering service to a Parent Corporation or Subsidiary Corporation. An
Optionee's Service shall not be deemed to have terminated if the Optionee takes
any bona fide leave of absence approved by the Company. Unless otherwise
provided by the Board in the grant of an Option and set forth in the Option
Agreement evidencing such Option, an approved leave of absence shall be treated
as Service for purposes of determining vesting under the Option. Subject to the
foregoing, the Company, in its discretion, shall determine whether the
Optionee's Service has terminated and the effective date of such termination.

                  (r) "STOCK" means the common stock of the Company, as adjusted
from time to time in accordance with Section 4.2.

                  (s) "SUBSIDIARY CORPORATION" means any present or future
"subsidiary corporation" of the Company, as defined in Section 424(f) of the
Code.

            2.2 CONSTRUCTION. Captions and titles contained herein are for
convenience only and shall not affect the meaning or interpretation of any
provision of the Plan. Except when otherwise indicated by the context, the
singular shall include the plural and the plural shall include the singular. Use
of the term "or" is not intended to be exclusive, unless the context clearly
requires otherwise.

      3.    ADMINISTRATION.

            3.1 ADMINISTRATION BY THE BOARD. The Plan shall be administered by
the Board. All questions of interpretation of the Plan or of any Option shall be
determined by the Board, and such determinations shall be final and binding upon
all persons having an interest in the Plan or such Option. At any time that any
class of equity security of the Company is registered pursuant to Section 12 of
the Exchange Act, the Plan shall be administered in compliance with the
requirements, if any, of Rule 16b-3. For this purpose, the Board may delegate
authority to administer the Plan to a Committee composed solely of two or more
Non-Employee Directors.

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            3.2 AUTHORITY OF OFFICERS. Any officer of the Company shall have the
authority to act on behalf of the Company with respect to any matter, right,
obligation, determination or election which is the responsibility of or which is
allocated to the Company herein, provided the officer has apparent authority
with respect to such matter, right, obligation, determination or election.

            3.3 INDEMNIFICATION. In addition to such other rights of
indemnification as they may have as members of the Board or officers or
employees of the Company, members of the Board and any officers or employees of
the Company to whom authority to act for the Board or the Company is delegated
shall be indemnified by the Company against all reasonable expenses, including
attorneys' fees, actually and necessarily incurred in connection with the
defense of any action, suit or proceeding, or in connection with any appeal
therein, to which they or any of them may be a party by reason of any action
taken or failure to act under or in connection with the Plan, or any right
granted hereunder, and against all amounts paid by them in settlement thereof
(provided such settlement is approved by independent legal counsel selected by
the Company) or paid by them in satisfaction of a judgment in any such action,
suit or proceeding, except in relation to matters as to which it shall be
adjudged in such action, suit or proceeding that such person is liable for gross
negligence, bad faith or intentional misconduct in duties; provided, however,
that within sixty (60) days after the institution of such action, suit or
proceeding, such person shall offer to the Company, in writing, the opportunity
at its own expense to handle and defend the same.

      4.    SHARES SUBJECT TO PLAN.

            4.1 MAXIMUM NUMBER OF SHARES ISSUABLE. Subject to adjustment as
provided in Section 4.2, the maximum aggregate number of shares of Stock that
may be issued under the Plan shall be four hundred sixty five thousand (465,000)
and shall consist of authorized but unissued or reacquired shares of Stock or
any combination thereof. Shares issuable under the Plan shall consist of
authorized but unissued or reacquired shares of Stock or any combination
thereof. If an outstanding Option for any reason expires or is terminated or
canceled without having been exercised in full, the shares of Stock allocable to
the unexercised portion of such Option shall again be available for issuance
under the Plan. Shares of Stock shall not be deemed to have been issued pursuant
to the Plan to the extent such shares are withheld in satisfaction of tax
withholding obligations pursuant to Section 6.5.

            4.2 ADJUSTMENTS FOR CHANGES IN CAPITAL STRUCTURE. Subject to any
required action by the stockholders of the Company, in the event of any change
in the Stock effected without receipt of consideration by the Company, whether
through merger, consolidation, reorganization, reincorporation,
recapitalization, reclassification, stock dividend, stock split, reverse stock
split, split-up, split-off, spin-off, combination of shares, exchange of shares,
or similar change in the capital structure of the Company, or in the event of
payment of a dividend or distribution to the stockholders of the Company in a
form other than Stock (excepting normal cash dividends) that has a material
effect on the Fair Market Value of shares of Stock, appropriate and
proportionate adjustments shall be made in the number and class of shares
subject to the Plan and to any outstanding Options and in the exercise price per
share of any outstanding Options in order to prevent dilution or enlargement of
Optionees' rights under the Plan. For purposes of the foregoing, conversion of
any convertible securities of the Company

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shall not be treated as "effected without receipt of consideration by the
Company." Any fractional share resulting from an adjustment pursuant to this
Section 4.2 shall be rounded down to the nearest whole number, and in no event
may the exercise price of any Option be decreased to an amount less than the par
value, if any, of the stock subject to the Option. Such adjustments shall be
determined by the Board, and its determination shall be final, binding and
conclusive.

      5.    ELIGIBILITY.

            Options shall be granted only to those persons who, at the time of
grant, are serving as Outside Directors.

      6.    TERMS AND CONDITIONS OF OPTIONS.

            Options shall be evidenced by Option Agreements specifying the
number of shares of Stock covered thereby, in such form as the Board shall from
time to time establish. Option Agreements may incorporate all or any of the
terms of the Plan by reference and shall comply with and be subject to the
following terms and conditions:

            6.1 AUTOMATIC GRANT. Subject to the execution by an Outside Director
of an appropriate Option Agreement, Options shall be granted automatically and
without further action of the Board, as follows:

                  (a) INITIAL OPTION. Each person who first becomes an Outside
Director on or after the Effective Date shall be granted on the date such person
first becomes an Outside Director an Option to purchase fifty thousand (50,000)
shares of Stock (an "INITIAL OPTION").

                  (b) ANNUAL OPTION. Each Outside Director shall be granted on
the date of each annual meeting of the stockholders of the Company which occurs
on or after the Effective Date (an "ANNUAL MEETING") immediately following which
such person remains an Outside Director an Option to purchase thirty thousand
(30,000) shares of Stock (an "ANNUAL OPTION"); provided, however, that an
Outside Director granted an Initial Option within the prior one year period
immediately preceding the date of an Annual Meeting shall be granted an option
to purchase that number of shares subject to an Annual Option multiplied by a
fraction, the numerator of which is the number of full months which have lapsed
since the date of appointment as an Outside Director and the denominator of
which is twelve (12).

                  (c) RIGHT TO DECLINE OPTION. Notwithstanding the foregoing,
any person may elect not to receive an Option by delivering written notice of
such election to the Board no later than the day prior to the date such Option
would otherwise be granted. A person so declining an Option shall receive no
payment or other consideration in lieu of such declined Option. A person who has
declined an Option may revoke such election by delivering written notice of such
revocation to the Board no later than the day prior to the date such Option
would be granted pursuant to Section 6.1(a) or (b), as the case may be.

            6.2 EXERCISE PRICE. The exercise price per share of Stock subject to
an Option shall be the Fair Market Value of a share of Stock on the date of
grant of the Option. Notwithstanding the foregoing, an Option may be granted
with an exercise price lower than the

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minimum exercise price set forth above if such Option is granted pursuant to an
assumption or substitution for another option in a manner qualifying under the
provisions of Section 424(a) of the Code.

            6.3 EXERCISABILITY AND TERM OF OPTIONS. Except as otherwise provided
in the Plan or in the Option Agreement evidencing an Option and provided that
the Optionee's Service has not terminated prior to the relevant date, each
Option shall vest and become exercisable as follows:

                  (a) INITIAL OPTION. The Initial Option shall vest and become
exercisable with respect to one-third (1/3) of the shares initially subject
thereto on the first anniversary of the date of grant, an additional one third
(1/3) of the shares initially subject thereto shall vest and become exercisable
on the second anniversary of the date of grant, and the remainder shall vest and
become exercisable on the third anniversary of the date of grant.

                  (b) ANNUAL OPTION: The Annual Option shall vest and become
exercisable with respect to one-twelfth (1/12) of the shares initially subject
thereto for each full month of the Optionee's continuous Service from the date
of grant until the Option is fully vested.

                  (c) TERM OF OPTION. Unless earlier terminated in accordance
with the terms of the Plan or the Option Agreement evidencing an Option, each
Option shall terminate and cease to be exercisable on the tenth (10th)
anniversary of the date of grant of the Option.

            6.4   PAYMENT OF EXERCISE PRICE.

                  (a) FORMS OF CONSIDERATION AUTHORIZED. Except as otherwise
provided below, payment of the exercise price for the number of shares of Stock
being purchased pursuant to any Option shall be made (i) in cash or by check,
(ii) by tender to the Company, or attestation to the ownership, of shares of
Stock owned by the Optionee having a Fair Market Value (as determined by the
Company without regard to any restrictions on transferability applicable to such
stock by reason of federal or state securities laws or agreements with an
underwriter for the Company) not less than the exercise price, (iii) by delivery
of a properly executed notice together with irrevocable instructions to a broker
providing for the assignment to the Company of the proceeds of a sale or loan
with respect to some or all of the shares being acquired upon the exercise of
the Option (including, without limitation, through an exercise complying with
the provisions of Regulation T as promulgated from time to time by the Board of
Governors of the Federal Reserve System) (a "CASHLESS EXERCISE"), or (iv) by any
combination thereof.

                  (b) LIMITATIONS ON FORMS OF CONSIDERATION.

                        (i) TENDER OF STOCK. Notwithstanding the foregoing, an
Option may not be exercised by tender to the Company, or attestation to the
ownership, of shares of Stock to the extent such tender or attestation would
constitute a violation of the provisions of any law, regulation or agreement
restricting the redemption of the Company's stock. Unless otherwise provided by
the Board, an Option may not be exercised by tender to the Company, or
attestation to the ownership, of shares of Stock unless such shares either have
been owned by the

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Optionee for more than six (6) months or were not acquired, directly or
indirectly, from the Company.

                        (ii) CASHLESS EXERCISE. The Company reserves, at any and
all times, the right, in the Company's sole and absolute discretion, to
establish, decline to approve or terminate any program or procedures for the
exercise of Options by means of a Cashless Exercise.

            6.5 TAX WITHHOLDING. The Company shall have the right, but not the
obligation, to deduct from the shares of Stock issuable upon the exercise of an
Option, or to accept from the Optionee the tender of, a number of whole shares
of Stock having a Fair Market Value, as determined by the Company, equal to all
or any part of the federal, state, local and foreign taxes, if any, required by
law to be withheld by the Company with respect to such Option or the shares
acquired upon the exercise thereof. Alternatively or in addition, in its
discretion, the Company shall have the right to require the Optionee, by cash
payment or otherwise, including by means of a Cashless Exercise, to make
adequate provision for any such tax withholding obligations of the Company
arising in connection with the Option or the shares acquired upon the exercise
thereof. The Fair Market Value of any shares of Stock withheld or tendered to
satisfy any such tax withholding obligations shall not exceed the amount
determined by the applicable minimum statutory withholding rates. The Company
shall have no obligation to deliver shares of Stock until the Company's tax
withholding obligations have been satisfied by the Optionee.

            6.6 EFFECT OF TERMINATION OF SERVICE.

                  (a) OPTION EXERCISABILITY. Subject to earlier termination of
the Option as otherwise provided herein, an Option shall be exercisable after an
Optionee's termination of Service only during the applicable time period
determined in accordance with this Section 6.6 and thereafter shall terminate:

                        (i) DISABILITY. If the Optionee's Service terminates
because of the Disability of the Optionee, the Option, to the extent unexercised
and exercisable on the date on which the Optionee's Service terminated, may be
exercised by the Optionee (or the Optionee's guardian or legal representative)
at any time prior to the expiration of twelve (12) months after the date on
which the Optionee's Service terminated, but in any event no later than the date
of expiration of the Option's term as set forth in the Option Agreement
evidencing such Option (the "OPTION EXPIRATION DATE").

                        (ii) DEATH. If the Optionee's Service terminates because
of the death of the Optionee, the Option, to the extent unexercised and
exercisable on the date on which the Optionee's Service terminated, may be
exercised by the Optionee's legal representative or other person who acquired
the right to exercise the Option by reason of the Optionee's death at any time
prior to the expiration of twelve (12) months after the date on which the
Optionee's Service terminated, but in any event no later than the Option
Expiration Date. The Optionee's Service shall be deemed to have terminated on
account of death if the Optionee dies within three (3) months after the
Optionee's termination of Service.

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                        (iii) OTHER TERMINATION OF SERVICE. If the Optionee's
Service terminates for any reason, except Disability or death, the Option, to
the extent unexercised and exercisable by the Optionee on the date on which the
Optionee's Service terminated, may be exercised by the Optionee at any time
prior to the expiration of three (3) months after the date on which the
Optionee's Service terminated, but in any event no later than the Option
Expiration Date.

                  (b) EXTENSION IF EXERCISE PREVENTED BY LAW. Notwithstanding
the foregoing, if the exercise of an Option within the applicable time periods
set forth in Section 6.6(a) is prevented by the provisions of Section 9 below,
the Option shall remain exercisable until three (3) months after the date the
Optionee is notified by the Company that the Option is exercisable, but in any
event no later than the Option Expiration Date.

                  (c) EXTENSION IF OPTIONEE SUBJECT TO SECTION 16(b).
Notwithstanding the foregoing, if a sale within the applicable time periods set
forth in Section 6.6(a) of shares acquired upon the exercise of the Option would
subject the Optionee to suit under Section 16(b) of the Exchange Act, the Option
shall remain exercisable until the earliest to occur of (i) the tenth (10th) day
following the date on which a sale of such shares by the Optionee would no
longer be subject to such suit, (ii) the one hundred and ninetieth (190th) day
after the Optionee's termination of Service, or (iii) the Option Expiration
Date.

            6.7 TRANSFERABILITY OF OPTIONS. During the lifetime of the Optionee,
an Option shall be exercisable only by the Optionee or the Optionee's guardian
or legal representative. No Option shall be assignable or transferable by the
Optionee, except by will or by the laws of descent and distribution.
Notwithstanding the foregoing, to the extent permitted by the Board, in its
discretion, and set forth in the Option Agreement evidencing such Option, an
Option shall be assignable or transferable subject to the applicable
limitations, if any, described in the General Instructions to Form S-8
Registration Statement under the Securities Act.

      7. STANDARD FORMS OF OPTION AGREEMENT.

            7.1 OPTION AGREEMENT. Each Option shall comply with and be subject
to the terms and conditions set forth in the form of Option Agreement approved
by the Board concurrently with its adoption of the Plan and as amended from time
to time.

            7.2 AUTHORITY TO VARY TERMS. The Board shall have the authority from
time to time to vary the terms of any standard form of Option Agreement
described in this Section 7 either in connection with the grant or amendment of
an individual Option or in connection with the authorization of a new standard
form or forms; provided, however, that the terms and conditions of any such new,
revised or amended standard form or forms of Option Agreement are not
inconsistent with the terms of the Plan. Such authority shall include, but not
by way of limitation, the authority to grant Options which are immediately
exercisable subject to the Company's right to repurchase any unvested shares of
Stock acquired by the Optionee on exercise of an Option in the event such
Optionee's Service is terminated for any reason.

      8. EFFECT OF CHANGE IN CONTROL.

            8.1 DEFINITIONS.

<PAGE>

                  (a) An "OWNERSHIP CHANGE EVENT" shall be deemed to have
occurred if any of the following occurs with respect to the Company: (i) the
direct or indirect sale or exchange in a single or series of related
transactions by the stockholders of the Company of more than fifty percent (50%)
of the voting stock of the Company; (ii) a merger or consolidation in which the
Company is a party; (iii) the sale, exchange, or transfer of all or
substantially all of the assets of the Company; or (iv) a liquidation or
dissolution of the Company.

                  (b) A "CHANGE IN CONTROL" shall mean an Ownership Change Event
or a series of related Ownership Change Events (collectively, a "TRANSACTION")
wherein the stockholders of the Company immediately before the Transaction do
not retain immediately after the Transaction, in substantially the same
proportions as their ownership of shares of the Company's voting stock
immediately before the Transaction, direct or indirect beneficial ownership of
more than fifty percent (50%) of the total combined voting power of the
outstanding voting securities of the Company or, in the case of a Transaction
described in Section 8.1(a)(iii), the corporation or other business entity to
which the assets of the Company were transferred (the "TRANSFEREE"), as the case
may be. For purposes of the preceding sentence, indirect beneficial ownership
shall include, without limitation, an interest resulting from ownership of the
voting securities of one or more corporations or other business entities which
own the Company or the Transferee, as the case may be, either directly or
through one or more subsidiary corporations or other business entities. The
Board shall have the right to determine whether multiple sales or exchanges of
the voting securities of the Company or multiple Ownership Change Events are
related, and its determination shall be final, binding and conclusive.

            8.2 EFFECT OF CHANGE IN CONTROL ON OPTIONS. In the event of a Change
in Control, any unexercisable or unvested portions of outstanding Options and
any shares acquired upon the exercise thereof shall be immediately exercisable
and vested in full as of the date ten (10) days prior to the date of the Change
in Control. The exercise or vesting of any Option and any shares acquired upon
the exercise thereof that was permissible solely by reason of this Section 8.2
shall be conditioned upon the consummation of the Change in Control. In
addition, the surviving, continuing, successor, or purchasing corporation or
parent corporation thereof, as the case may be (the "ACQUIROR"), may either
assume the Company's rights and obligations under outstanding Options or
substitute for outstanding Options substantially equivalent options for the
Acquiror's stock. Any Options which are neither assumed or substituted for by
the Acquiror in connection with the Change in Control nor exercised as of the
date of the Change in Control shall terminate and cease to be outstanding
effective as of the date of the Change in Control. Notwithstanding the
foregoing, if the corporation the stock of which is subject to the outstanding
Options immediately prior to an Ownership Change Event described in Section
8.1(a)(i) constituting a Change in Control is the surviving or continuing
corporation and immediately after such Ownership Change Event less than fifty
percent (50%) of the total combined voting power of its voting stock is held by
another corporation, the outstanding Options shall not terminate unless the
Board otherwise provides in its discretion. For the purposes of this Section
8.2, an Option shall be considered assumed if, for every share of Stock subject
thereto immediately prior to the Change in Control, the Optionee has the right,
following the Change in Control, to acquire in accordance with the terms and
conditions of the assumed Option the consideration (whether stock, cash or other
securities or property) received in the Change in Control transaction by holders
of shares of Stock for each share held immediately

<PAGE>

prior to such transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of
the outstanding shares of Stock); provided, however, that if such consideration
received in the Change in Control transaction was not solely common stock of the
Acquiror, the Board may, with the consent of the Acquiror, provide for the
consideration to be acquired to be solely common stock of the Acquiror equal in
Fair Market Value to the per share consideration received by holders of Stock in
the Change in Control transaction.

      9.    COMPLIANCE WITH SECURITIES LAW.

            The grant of Options and the issuance of shares of Stock upon
exercise of Options shall be subject to compliance with all applicable
requirements of federal, state and foreign law with respect to such securities.
Options may not be exercised if the issuance of shares of Stock upon exercise
would constitute a violation of any applicable federal, state or foreign
securities laws or other law or regulations or the requirements of any stock
exchange or market system upon which the Stock may then be listed. The inability
of the Company to obtain from any regulatory body having jurisdiction the
authority, if any, deemed by the Company's legal counsel to be necessary to the
lawful issuance and sale of any shares hereunder shall relieve the Company of
any liability in respect of the failure to issue or sell such shares as to which
such requisite authority shall not have been obtained. As a condition to the
exercise of any Option, the Company may require the Optionee to satisfy any
qualifications that may be necessary or appropriate, to evidence compliance with
any applicable law or regulation and to make any representation or warranty with
respect thereto as may be requested by the Company.

      10.   TERMINATION OR AMENDMENT OF PLAN.

            The Board may terminate or amend the Plan at any time. However,
without the approval of the Company's stockholders, there shall be (a) no
increase in the maximum aggregate number of shares of Stock that may be issued
under the Plan (except by operation of the provisions of Section 4.2), (b) no
material change in the class of persons eligible to receive Options, and (c) no
material change in the amount, timing or exercise price formula of automatic
grants of Options pursuant to Section 6.1 above. No termination or amendment of
the Plan shall affect any then outstanding Option unless expressly provided by
the Board. In any event, no termination or amendment of the Plan may adversely
affect any then outstanding Option without the consent of the Optionee.

      11.   MISCELLANEOUS PROVISIONS.

            11.1 PROVISION OF INFORMATION. Each Optionee shall be given access
to information concerning the Company equivalent to that information generally
made available to the Company's common stockholders.

            11.2 FRACTIONAL SHARES. The Company shall not be required to issue
fractional shares upon the exercise of any Option.

            11.3 BENEFICIARY DESIGNATION. Each Optionee may file with the
Company a written designation of a beneficiary who is to receive any benefit
under the Plan to which the Optionee is entitled in the event of such Optionee's
death before he or she receives any or all of

<PAGE>

such benefit. Each designation will revoke all prior designations by the same
Optionee, shall be in a form prescribed by the Company, and will be effective
only when filed by the Optionee in writing with the Company during the
Optionee's lifetime. If a married Optionee designates a beneficiary other than
the Optionee's spouse, the effectiveness of such designation shall be subject to
the consent of the Optionee's spouse.

            11.4 RIGHTS AS A STOCKHOLDER. An Optionee shall have no rights as a
stockholder with respect to any shares covered by an Option until the date of
the issuance of a certificate for such shares (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the
Company). No adjustment shall be made for dividends, distributions or other
rights for which the record date is prior to the date such certificate is
issued, except as provided in Section 4.2 or another provision of the Plan.<PAGE>

                                  EXHIBIT 10.3

                                 AMENDMENT NO. 2

                                       TO

 THE EXPANDED AND AMENDED THYMOSIN ALPHA 1 LICENSE, DISTRIBUTORSHIP AND
                                SUPPLY AGREEMENT
        SIGNED BY AND BETWEEN SCICLONE PHARMACEUTICALS INTERNATIONAL LTD
                                       AND
         SIGMA-TAU INDUSTRIE FARMACEUTICHE RIUNITE SPA ON MARCH 3, 2000
       AS AMENDED BY THE PARTIES WITH AMENDMENT NO. 1 ON DECEMBER 19, 2001
                          (HEREINAFTER "THE AGREEMENT")

SCICLONE PHARMACEUTICALS INTERNATIONAL LTD. ("SPIL"), a Cayman Islands business
entity which is a wholly-owned subsidiary of SciClone Pharmaceuticals, Inc.
("SCLN"), a Delaware corporation;

                                       and

SIGMA-TAU INDUSTRIE FARMACEUTICHE RIUNITE S.P.A. ("Sigma-Tau"), an Italian
corporation having offices at viale Shakespeare 47, 00144 Rome, Italy.

SPIL AND SIGMA-TAU HEREBY AGREE TO AMEND ARTICLE 5 (DEVELOPMENT AND CLINICAL
TRIALS), OF THE AGREEMENT (IN ORDER TO ADD A NEW SECTION 5.8) AS FOLLOWS:

5.8 Licensed Product, Pegaysy(R) and Copegus(R) Clinical Trials. Subject to but
without change to other provisions of Article 5, Sigma-Tau and SPIL agree to
conduct a 550 patient hepatitis C trial (the "Trial") under the following terms:

(a) Sigma-Tau and SPIL agree, upon signature of this Amendment, to form a
steering committee (the "Steering Committee") consisting of at least four
appropriate and mutually acceptable individuals, two from Sigma-Tau and two from
SPIL. The role of the Steering Committee is to oversee the conduct and progress
of the Trial with the intention to move the Trial forward as fast as appropriate
and, when necessary, to make recommendations to both SPIL and Sigma-Tau
management for changes or improvements. The Steering Committee will convene
formally a minimum of four times at regularly scheduled telephonic or
face-to-face meetings each calendar quarter (face-to-face meetings will take
place at least twice each calendar year that the Trial is in process) to discuss
the conduct and progress of the Trial. Minutes of the meetings will be sent to
the appropriate levels of both Sigma-Tau and SPIL management.

<PAGE>

(b) Sigma-Tau's Obligations

Subject to: (1) SPIL providing to Sigma-Tau the Licensed Product and also
providing the products Pegaysy(R) and Copegus(R) manufactured by F. Hoffmann -
La Roche Ltd. of Basel, Switzerland ("Roche"); (2) the parties' mutual agreement
on the design and objectives of the clinical program and the clinical protocol
for the Trial; (3) regulatory authorization, if needed, to commence the Trial;
and (4) other necessary authorizations and procedures customary and normal to
the conduct of a clinical study comparable to the Trial in accordance with
[****], Sigma-Tau shall use its reasonable best efforts to conduct a
comprehensive minimum enrollment 550 patient phase 3 clinical Trial in the
Territory and in the additional countries of Poland, Hungary, the Czech Republic
and other countries to be approved in writing by SPIL from time to time, which
is designed, implemented and monitored according to [****] involving the
Licensed Product in combination with the products Pegaysy(R) and Copegus(R) in
the treatment of hepatitis C patients that have failed to respond to prior
therapy (non-responders). Subject to the foregoing conditions, unless otherwise
agreed by the parties in writing, Sigma-Tau agrees to the following development
obligations with respect to the Trial:

                        (i) to conduct the Trial as a multi-country,
multi-center study; the number of target sites, Principal Investigator, other
investigators, will be mutually agreed by the parties;

                        (ii) to enroll the first patient in the Trial as soon as
practically possible during the year 2004;

                        (iii) to use its reasonable best efforts to complete the
enrollment of at least 550 patients in the Trial by [****];

                        (iv) to fully and in a timely manner fund the Trial,
subject to SPIL making the payments and supplying the products as provided for
in (c) below; and

                        (v) Sigma-Tau and its Affiliates shall keep SCLN
informed of the progress of the Trial and shall provide SCLN with quarterly
summary reports of the results of the Trial. Sigma-Tau and its Affiliates shall
give SCLN access to the clinical reports and patient histories concerning the
Trial. Sigma-Tau will provide to SCLN and to SPIL, for regulatory and marketing
purposes and with the intention of assisting SCLN and SPIL in the submission of
such regulatory filings as SCLN and SPIL deem appropriate, the data resulting
from the Trial when and as it is available.

(c) SPIL'S Obligations

In furtherance of the Trial:

                        (i) SPIL shall supply free of charge to Sigma-Tau the
Licensed Product, placebo and the Roche products Pegaysy(R) and Copegus(R) in
the amounts needed for the Trial;

*Certain information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

<PAGE>

                        (ii) SPIL shall make payments to Sigma-Tau up to a total
of US $2,500,000 (U.S. Dollars two million five hundred thousand) to assist in
paying for incurred or anticipated costs and expenses associated with the Trial,
as follows:

                              (1) an initial payment equal to [****] upon
[****];

                              (2) a payment equal to [****] upon [****];

                              (3) a payment of [****] per each patient, who is
enrolled and injected with active drug substance, up to a cumulative total of
[****], paid [****]; and

                              (4) a milestone payment equal to [****] upon
[****].

(d) SCLN and Roche have entered into that certain Material Transfer Agreement
attached hereto as Annex I (the "Roche MTA"). In concluding the Trial and acting
as the Sponsor as defined in the Roche MTA, Sigma-Tau hereby agrees to perform
the Trial in accordance with (i) the Protocol (which Protocol shall be approved
by SCLN, SPIL, Sigma-Tau and Roche), and (ii) the terms of the Roche MTA.
Further, Sigma-Tau agrees to be bound by the same confidentiality and non-use
terms applicable to SCLN under the Roche MTA.

Except only as set forth above, all of the provisions of the Agreement shall
remain unchanged and in full force and effect.

*Certain information on this page has been omitted and filed separately with the
Commission. Confidential treatment has been requested with respect to the
omitted portions.

<PAGE>

SIGNATURE PAGE

IN WITNESS WHEREOF, THE PARTIES HERETO HAVE CAUSED THIS AMENDMENT AGREEMENT TO
BE DULY EXECUTED EFFECTIVE AS OF THE DATE LAST WRITTEN BELOW.

SCICLONE Pharmaceuticals                     SIGMA-TAU Industrie
International Ltd.                           Farmaceutiche Riunite SpA

__________________________________           __________________________________
By:                                          By:
Title:                                       Title:
Date:                                        Date:

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