Document:

Exhibit 10.2

 

 

STOCK APPRECIATION RIGHT AWARD AGREEMENT, between Cable One, Inc. (the “Company”), a Delaware corporation, and [NAME].

This Stock Appreciation Right Award Agreement (the “Award Agreement”) sets forth the terms and conditions of an award (the “Award”) of [NUMBER] of stock appreciation rights (“SARs”) that are being granted to you on [DATE] (the “Grant Date”) under the Cable ONE, Inc. 2015 Omnibus Incentive Compensation Plan (the “Plan”).  Each SAR is exercisable in respect of a share of the Company’s common stock, $0.01 par value per share (each, a “Share”), at an exercise price per Share of $[EXERCISE PRICE] (the “Exercise Price”), which Exercise Price represents the average of the closing per-Share sales prices (as reported on the Applicable Exchange) for each trading day during the period from and including [DATE] through and including [DATE].  Each SAR constitutes an unfunded and unsecured promise of the Company to deliver (or cause to be delivered) to you, subject to the terms of this Award Agreement, whole Shares at the time such SAR is exercised as provided herein equal in value to the excess, if any, of the Fair Market Value per Share over the Exercise Price.  Fractional Shares will not be delivered and the number of Shares to be delivered upon any exercise by you of any SARs subject to this Award shall be rounded down to the nearest whole Share.

THIS AWARD IS SUBJECT TO ALL TERMS AND CONDITIONS OF THE PLAN AND THIS AWARD AGREEMENT, INCLUDING THE DISPUTE RESOLUTION PROVISIONS SET FORTH IN SECTION 11 OF THIS AWARD AGREEMENT AND THE RESTRICTIVE COVENANT, CLAWBACK AND RECOUPMENT PROVISIONS SET FORTH IN SECTION 5 AND APPENDIX A OF THIS AWARD AGREEMENT.  BY SIGNING YOUR NAME BELOW, YOU WILL HAVE CONFIRMED YOUR ACCEPTANCE OF THE TERMS AND CONDITIONS OF THIS AWARD AGREEMENT.

SECTION 1.  The Plan.  This Award is made pursuant to the Plan, all the terms of which are hereby incorporated in this Award Agreement.  In the event of any conflict between the terms of the Plan and the terms of this Award Agreement, the terms of this Award Agreement shall govern.

SECTION 2.  Definitions.  Capitalized terms used in this Award Agreement that are not defined in this Award Agreement have the meanings as used or defined in the Plan.  As used in this Award Agreement, the following terms have the meanings set forth below:

“Business Day” means a day that is not a Saturday, a Sunday or a day on which banking institutions are legally permitted to be closed in the City of New York.

“Cause” shall mean the occurrence of any of the following events:  (a) your fraud, misappropriation, embezzlement or misuse of Company funds or property; (b) your failure to substantially perform your duties to the Company; (c) your conviction of, or entry of a plea of guilty or nolo contendre to, a felony or a crime involving moral turpitude; (d) any wilful act, or failure to act, by you in bad faith to the material detriment of the Company; (e) your material noncompliance with Company policies and guidelines; or (f) your material breach of any term of this Award Agreement or any agreement between you and the Company; provided that in cases where cure is possible, you shall first be provided a 15-day cure period.  If, subsequent to your termination of employment with the Company or one of its Affiliates for any reason other than for Cause, the Company determines in good faith that your employment could have been terminated by the Company or applicable Affiliate for Cause, then, at the election of the Company, your employment will be deemed to have been terminated for Cause as of the date the events giving rise to Cause occurred.

 

 

  

“Code” means the Internal Revenue Code of 1986, as amended.

“Disability” means your absence from employment due to a physical or mental condition, illness or injury for a period of 180 consecutive Business Days.

“Good Reason” means the occurrence, without your written consent, of any of the following events or circumstances:  (a) a material reduction in your annual base salary or target bonus opportunity; (b) a material diminution in your title, duties or responsibilities; (c) a relocation of your principal work location by more than 50 miles; or (d) any material breach of this Award Agreement by the Company; provided that Good Reason shall not exist unless you give the Company notice specifically detailing the event you believe gives rise to Good Reason within 60 days of the date you have knowledge of such event.  In cases where cure is possible, the Company shall be provided a 90-day cure period after such notice is given in accordance with Section 12 of this Award Agreement; if such circumstances are not cured by the expiration of such cure period, you may resign for Good Reason within three months following the end of the cure period, but if such circumstances are cured within the cure period or if you do not resign for Good Reason within three months following the end of the cure period, such circumstances will not be deemed to constitute Good Reason.

“Pro-Ration Fraction” means a fraction, (a) the numerator of which is the number of days elapsed from the Grant Date through the date of termination of employment and (b) the denominator of which is 1,460.

“Restrictive Covenants” means the restrictive covenants set forth in Appendix A, which are incorporated herein by reference.

“SARs Term” means the period from the Grant Date to the tenth anniversary thereof (or, in the case of vested SARs, three months after the date you cease to be a director, officer, employee or consultant of the Company or one of its Affiliates, if earlier), unless the SARs have earlier been terminated, canceled or forfeited in accordance with the terms of the Plan or this Award Agreement.

SECTION 3.  Vesting and Exercisability.  (a)  Vesting.  (i)  Except as otherwise provided in this Section 3 and subject to your continued employment with the Company or an Affiliate through the relevant Vesting Date, on each date set forth below (each, as applicable, a “Vesting Date”), the number of SARs that corresponds to the percentage set forth below for such Vesting Date shall vest and become exercisable.  For the avoidance of doubt, except as otherwise provided in Section 3(a)(ii) – (iv), if your employment with the Company or an Affiliate terminates at any time before the applicable Vesting Date, any unvested SARs will be immediately and automatically canceled and forfeited.

 

 

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Vesting Date

	
Aggregate Percentage Vesting

	
Aggregate Number of SARs Vested

	 	 	 
	
[DATE]

	
25

	
[●]

	 	 	 
	
[DATE]

	
50

	
[●]

	 	 	 
	
[DATE]

	
75

	
[●]

	 	 	 
	
[DATE]

	
100

	
[●]

	 	 	 

(ii)  Termination Without Cause or for Good Reason.  In the event that your employment is terminated by the Company without Cause or by you for Good Reason anytime on or after the first anniversary of the Grant Date, except as otherwise set forth in Section 3(a)(iv)(B), then you will vest in a portion of  the SARs scheduled to vest on the next Vesting Date, determined by multiplying the SARs granted in this Award by the Pro-Ration Fraction and then subtracting the number of SARs that had vested prior to your termination, which portion shall become immediately exercisable.  All other unvested SARs shall be forfeited immediately upon such termination of employment.  For the avoidance of doubt, if such termination of employment occurs before the first anniversary of the Grant Date, then all SARs shall be immediately forfeited as of the date of termination.

(iii)  Death or Disability.  In the event your employment is terminated due to death or Disability on or after the first anniversary of the Grant Date, you or your estate or applicable beneficiary, as the case may be, shall immediately vest in a portion of your SARs determined by multiplying the SARs granted in this Award by the Pro-Ration Fraction and then subtracting the number of SARs that had vested prior to your termination, which portion shall become immediately exercisable.  Any other unvested SARs will be immediately forfeited.  For the avoidance of doubt, if such termination of employment occurs before the first anniversary of the Grant Date, then all SARs shall be immediately forfeited as of the date of termination.

(iv)  Change of Control.  (A)  Except as otherwise provided in this Section 3(a)(iv)(A) or in Section 3(a)(iv)(B) below, following a Change of Control, the unvested SARs shall remain outstanding and subject to vesting requirements through the applicable Vesting Date; provided that in the event that your employment terminates on or after a Change of Control but before the applicable Vesting Date under any of the circumstances described in Section 3(a)(ii) above, (I) if such date of termination is also within 18 months following such Change of Control, all unvested SARs then outstanding shall immediately vest and (II) if such date of termination is after the date that is 18 months following such Change of Control, then upon your date of termination, a portion of your then outstanding unvested SARs shall immediately vest, determined in a manner consistent with the pro-ration provided in Section 3(a)(ii).

 

 

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(B)  Notwithstanding the foregoing, in the event of a Change of Control before the applicable Vesting Date, unless (I) the outstanding unvested SARs remain outstanding following such Change of Control in accordance with the Plan and (II) the material terms and conditions of such SARs as in effect immediately prior to the Change of Control are preserved following the Change of Control (including with respect to the vesting schedules), any outstanding unvested SARs will automatically vest and become exercisable as of the date of such Change in Control.

(v)  Cause.  In the event that your employment is terminated for Cause, all outstanding SARs (whether or not then vested) shall immediately and automatically become canceled and forfeited.

(b)  Except as provided in Section 3(a)(v) and subject to Section 5, any SARs that have become vested in accordance with this Section 3 shall remain exercisable through the expiration of the SARs Term.

SECTION 4.  Procedure for Exercise of SARs.  To the extent not forfeited or canceled in accordance with the Plan and this Award Agreement, vested SARs may be exercised, in whole or in part (but not for fractional Shares), by your delivery to the Company (or administrator designated by the Company) of a written notice consistent with the requirements of Section 12 hereof and otherwise: (i) stating the number of SARs you are exercising; (ii) stating the date upon which you desire to consummate such exercise (which date must be not more than 10 Business Days from the date that such notice has been given and must not be later than the expiration of the SARs Term); (iii) comply with such further provisions as the Company may reasonably require; and (iv) in the event the SARs are being exercised by a representative of your estate or by an entity to which the SARs have been validly transferred or assigned in accordance with the Plan and this Award Agreement, include appropriate proof of the right of such person or entity to exercise the SARs. The notice shall be signed by you or such other person or entity then entitled to exercise the SARs.  Upon exercise, and subject to your making arrangements satisfactory to the Company of your obligations in respect of applicable withholding taxes in accordance with Section 8, the Company shall deliver to you or your legal representative the number of Shares (rounded down to the nearest whole Share) equal to (x) (A) the excess, if any, of the Fair Market Value per Share on the exercise date over the Exercise Price, multiplied by (B) the number of SARs being exercised pursuant to such notice, divided by (y) the Fair Market Value per Share on the exercise date.

SECTION 5.  Forfeiture of SARs.  (a) Unless the Committee determines otherwise, and except as otherwise provided in Section 3, if your employment terminates prior to the applicable Vesting Date, your rights with respect to any SARs awarded to you that have not become vested prior to your date of termination shall immediately terminate, and you will be entitled to no further payments or benefits with respect thereto.

 

 

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(b)  Notwithstanding anything to the contrary in this Award Agreement, in the event that you incur a termination of employment by the Company without Cause or due to Disability or by you for Good Reason, in order for the SARs that would become vested as provided in Section 3(a)(ii) or (iii) to be treated as provided therein, you must sign a customary release of claims in favor of the Company and its Affiliates that is acceptable to the Company, and such release must become effective and irrevocable on or before the 65th day following your termination of employment.  In the event you do not sign such release or revoke such release before it becomes effective, you will forfeit all rights to any unvested SARs.  In addition, in the event that you (A) violate the Restrictive Covenants, (B) engage in any conduct constituting Cause, (C) engage in fraud or wilful misconduct contributing to any financial restatements or irregularities or a material loss to the Company or its Affiliates or (D) otherwise violate any recoupment or clawback policy adopted by the Company, as may be amended from time to time, to the extent necessary to address the requirements of applicable law (including Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as codified in Section 10D of the Exchange Act, Section 304 of the Sarbanes-Oxley Act of 2002 or any other applicable law) (any of the events described in the foregoing clauses (A)-(D), a “Forfeiture Event”), all outstanding vested or unvested SARs shall be forfeited and canceled.  In addition, in the event of a Forfeiture Event, the Board may require you to disgorge to the Company all net after-tax amounts that you have realized as a result of the exercise of the SARs or received in respect of this Award, including on the sale or transfer of Shares in respect of SARs (or, in the case of any transfer for less than the Fair Market Value of such Shares, you will disgorge to the Company an amount equal to the Fair Market Value of such Shares) and any dividend amounts paid following the exercise date of such SARs, in respect of Shares related to this Award, in each case, to the extent realized or received in the 12 months before or the 12 months after such Forfeiture Event.  For the avoidance of doubt, to the extent permitted by applicable law, this Section 5(b) will cease to be effective as a basis for forfeiture, clawback or recoupment of any portion of this Award from and after a Change of Control.

SECTION 6.  No Rights as a Stockholder.  You shall not have any rights or privileges of a shareholder (including with respect to voting rights or dividend participation) with respect to any Shares underlying the SARs unless and until certificates or book entry credits representing such Shares shall have been issued to you by the Company.

SECTION 7.  Non-Transferability of SARs.  Unless otherwise provided by the Committee in its discretion, SARs may not be sold, assigned, alienated, transferred, pledged, attached or otherwise encumbered except as provided in Section 9(a) of the Plan.  Any purported sale, assignment, alienation, transfer, pledge, attachment or encumbrance of a SAR in violation of the provisions of this Section 7 and Section 9(a) of the Plan shall be void.

 

 

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SECTION 8.  Withholding, Consents and Legends; Other Restrictions.  (a)  Withholding.  The delivery of Shares pursuant to Section 4 of this Award Agreement is conditioned on satisfaction of any applicable withholding taxes in accordance with this Section 8(a) and Section 9(d) of the Plan.  In the event that there is withholding tax liability in connection with the vesting or exercise of a SAR, you may satisfy, in whole or in part, any withholding tax liability: (i) by cash payment of an amount equal to such withholding liability; (ii) by delivery of Shares owned by you (which are not subject to any pledge or other security interest) or by delivery of irrevocable instructions to a broker to sell Shares and promptly deliver to the Company the proceeds from the sale of Shares, in each case, with the amount realized equal to the amount required to cover such withholding liability; or (iii) by having the Company withhold from the number of Shares you would be entitled to receive pursuant to the exercise of the SARs, a number of Shares having a fair value equal to such withholding tax liability.

(b)  Consents.  Your rights in respect of the SARs are conditioned on the receipt to the full satisfaction of the Committee of any required consents that the Committee may determine to be necessary or advisable (including your consenting to the Company’s supplying to any third-party recordkeeper of the Plan such personal information as the Committee deems advisable to administer the Plan).

(c)  Legends.  The Company may affix to certificates for Shares issued pursuant to this Award Agreement any legend that the Committee determines to be necessary or advisable (including to reflect any restrictions to which you may be subject under any applicable securities laws).  The Company may advise the transfer agent to place a stop order against any legended Shares.

(d)  If at any time the Committee shall determine that (i) the listing, registration or qualification of the SARs or any securities subject or related thereto upon any securities exchange or under any state or federal law is required, or (ii) the consent or approval of any government regulatory body is required, then the grant of SARs shall not be effective unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.

(e)  Any Shares issued upon settlement of the SARs shall be subject to the Company’s policies regarding compliance with securities laws. Pursuant to such policies, you may be required to obtain pre-clearance from the General Counsel of the Company prior to purchasing or selling any of the Company’s securities or entering into any hedge, pledge or similar transaction or arrangement with respect thereto.

SECTION 9.  Successors and Assigns of the Company.  The terms and conditions of this Award Agreement shall be binding upon and shall inure to the benefit of the Company and its successors and assigns.

SECTION 10.  Committee Discretion.  Subject to the terms of the Plan and this Award Agreement, the Committee shall have discretion with respect to any actions to be taken or determinations to be made in connection with this Award Agreement, and its determinations shall be final, binding and conclusive.

 

 

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SECTION 11.  Dispute Resolution.  (a)  Jurisdiction and Venue.  (i) This Award Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to principles of conflict of laws that could cause the application of the law of any jurisdiction other than the State of Delaware.

(ii) Subject to the provisions of Section 11(a)(iii), any controversy or claim between you and the Company or its Affiliates arising out of or relating to or concerning the provisions of any Award Agreement or the Plan shall be finally settled by arbitration in Phoenix, Arizona, before, and in accordance with the rules then obtaining of the American Arbitration Association (the “AAA”) in accordance with the commercial arbitration rules of the AAA.

(iii) In addition to its right to submit any dispute or controversy to arbitration, the Company or one of its Affiliates may bring an action or special proceeding in a state or Federal court of competent jurisdiction sitting in Phoenix, Arizona, whether or not an arbitration proceeding has theretofore been or is ever initiated, for the purpose of temporarily, preliminarily or permanently enforcing the provisions of the Plan, the Restrictive Covenants, or to enforce an arbitration award, and, for the purposes of this Section 11(a)(iii), you (A) expressly consent to the application of Section 11(a)(iv) to any such action or proceeding, (B) agree that proof shall not be required that monetary damages for breach of the provisions of the Restrictive Covenants or this Award Agreement would be difficult to calculate and that remedies at law would be inadequate, and (C) irrevocably appoint the General Counsel of the Company as your agent for service of process in connection with any such action or proceeding, who shall promptly advise you of any such service of process by notifying you at the last address on file in the Company’s records.

(iv) You and the Company hereby irrevocably submit to the exclusive jurisdiction of any state or Federal court located in Phoenix, Arizona, over any suit, action, or proceeding arising out of, relating to or in connection with this Award Agreement or the Plan that is not otherwise required to be arbitrated or resolved in accordance with the provisions of Section 11(a)(ii).  This includes any suit, action or proceeding to compel arbitration or to enforce an arbitration award.  You and the Company acknowledge that the forum designated by this Section 11(a)(iv) has a reasonable relation to this Award Agreement, and to your relationship to the Company.  Notwithstanding the foregoing, nothing herein shall preclude you or the Company from bringing any action or proceeding in any other court for the purpose of enforcing the provisions of Sections 11(a)(i), 11(a)(ii), or this Section 11(a)(iv).  The agreement of you and the Company as to forum is independent of the law that may be applied in the action, and you and the Company agree to such forum even if the forum may under applicable law choose to apply nonforum law.  You and the Company hereby waive, to the fullest extent permitted by applicable law, any objection which you or the Company now or hereafter may have to personal jurisdiction or to the laying of venue of any such suit, action or proceeding in any court referred to in this Section 11(a)(iv).  You and the Company undertake not to commence any action arising out of, or relating to or in connection with this Award Agreement in any forum other than a forum described in this Section 11(a)(iv), or, to the extent applicable, Section 11(a)(ii).  You and the Company agree that, to the fullest extent permitted by applicable law, a final and nonappealable judgment in any such suit, action or proceeding in any such court shall be conclusive and binding upon you and the Company.

 

 

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(b)  Waiver of Jury Trial.  You and the Company hereby waive, to the fullest extent permitted by applicable law, any right either of you may have to a trial by jury in respect to any litigation directly or indirectly arising out of, under or in connection with this Award Agreement or the Plan.

(c)  Confidentiality.  You hereby agree to keep confidential the existence of, and any information concerning, a dispute described in this Section 11, except that you may disclose information concerning such dispute to the court that is considering such dispute or to your legal counsel (provided that such counsel agrees not to disclose any such information other than as necessary to the prosecution or defense of the dispute).

SECTION 12.  Notice.  All notices, requests, demands and other communications required or permitted to be given under the terms of this Award Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand or overnight courier or three Business Days after they have been mailed by U.S. registered mail, return receipt requested, postage prepaid, addressed to the other party as set forth below:

	
If to the Company:

	
Cable One, Inc.

210 E. Earll Drive

Phoenix, AZ 85012

Attn: General Counsel

	 	 
	
If to you:

	
To your address as most recently supplied to the Company and set forth in the Company’s records

The parties may change the address to which notices under this Award Agreement shall be sent by providing written notice to the other in the manner specified above.

 

SECTION 13.  Headings and Construction.  Headings are given to the Sections and subsections of this Award Agreement solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way material or relevant to the construction or interpretation of this Award Agreement or any provision thereof.  Whenever the words “include”, “includes” or “including” are used in this Award Agreement, they shall be deemed to be followed by the words “but not limited to”.

 

 

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SECTION 14.  Amendment of this Award Agreement.  The Committee may waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate this Award Agreement prospectively or retroactively; provided, however, that any such waiver, amendment, alteration, suspension, discontinuance, cancelation or termination that would materially and adversely impair your rights under this Award Agreement shall not to that extent be effective without your consent (it being understood, notwithstanding the foregoing proviso, that this Award Agreement and the SARs shall be subject to the provisions of Section 7(c) of the Plan).

SECTION 15.  Severability.  If any provision of this Award Agreement is held by a court of competent jurisdiction to be illegal, void or unenforceable, such provision shall have no effect; however, the remaining provisions shall be enforced to the maximum extent possible.  Further, if a court should determine that any portion of this Award Agreement is overbroad or unreasonable, such provision shall be given effect to the maximum extent possible by narrowing or enforcing in part that aspect of the provision found overbroad or unreasonable.

SECTION 16.  Counterparts.  This Award Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  You and the Company hereby acknowledge and agree that signatures delivered by facsimile or electronic means (including by “pdf”) shall be deemed effective for all purposes.

 

 

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IN WITNESS WHEREOF, the parties have duly executed this Award Agreement as of the date first written above.

 

	 	
CABLE ONE, INC.,

	
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

 

	 	[NAME]	
	 			
	 	 	 	 
	
 

	
 

	 	 
	 	 		 
	 	 		 
	 	 	 	 

 

 

 

 

Appendix A

In consideration of the Company’s entering into this Award Agreement and the Company’s obligations hereunder and other good and valuable consideration and as a condition to the receipt of the SARs pursuant to this Award Agreement, and as a necessary measure to protect the legitimate business interests of the Company and its Affiliates (collectively, the “Company Entities”), including confidential trade secrets, valuable confidential information and proprietary information (the “Business Interests”),  you agree that:

	1.	Non-Compete.  You acknowledge that as a result of your employment with the Company, you have come into possession of certain confidential, proprietary and trade secret information belonging to the Company Entities (including, but not limited to, technical information about the Company Entities’ systems, equipment and operations and strategic and marketing information performed by or for the Company Entities).  You further acknowledge that you could not take employment or engage in consultation within the Company Entities’ business and in areas served by any of the Company Entities without utilizing such information.  Therefore, you agree that, during the term of your employment with any of the Company Entities, and for a period of two (2) years from the date of termination of your employment (the “Non-Competition Period”), you will not engage or participate in (whether independently or through employment or any other relationship), consult with or own, manage or control any entity engaged in, directly or indirectly, the business of (a) operating a wireline or wireless cable television system, MMDS, DBS, SMATV or other multiple channel video system or service or any Internet access or high-speed data system or service or any telephony system or service in competition with systems owned by any of the Company Entities; or (b) providing consulting or other services to communities where any of the Company Entities owns systems; or (c) providing consulting or other services to businesses or other entities with whom any of the Company Entities does business, with respect to their dealings with the any of the Company Entities.  Any actual or threatened breach of this commitment shall entitle the Company Entities to an injunction, in addition to any other rights or remedies.

	2.	Non-Solicitation of Customers or Clients.  As a necessary measure to protect the Company Entities’ Business Interests, you agree that during the Non-Competition Period, you will not, directly or indirectly, solicit, influence, entice or encourage any person who at such time is, or who at any time in the two (2) year period prior to such time had been, a customer, client or active prospective customer or client of the Company Entities, to either cease or curtail its relationship with the Company Entities, or to engage in a business activity or relationship with you, unless you shall have previously obtained a written release from an authorized representative of the Company specifically permitting an action that would otherwise be prohibited by the provisions of this paragraph.

	3.	Non-Solicitation of Employees and Consultants.  As a necessary measure to protect the Company Entities’ Business Interests, you agree that at any time during the Non-Competition Period, neither you nor any business of which you are a director, member, agent, stockholder, owner, partner or officer will, directly or indirectly, solicit, influence, entice or encourage any person who at such time is, or who at any time in the two (2)-year period prior to such time had been, employed by, or provided services to, the Company Entities, to cease or curtail his or her relationship therewith.  Notwithstanding the foregoing, the restrictions of this paragraph shall not apply to the placement of general advertisements or the use of general search firm services with respect to a particular geographic or technical area, but which are not targeted directly or indirectly towards employees of the Company Entities.

 

 

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	4.	No-Hire.  As a necessary measure to protect the Company Entities’ Business Interests, including confidential trade secrets, valuable confidential information and proprietary information, during the Non-Competition Period, you agree that neither you nor any business of which you are a director, officer or employee will, directly or indirectly, hire or attempt to hire, whether as a director, officer, employee, contractor, consultant or other service provider, any person who at such time is, or who at any time in the two (2)-year period prior to such time had been, employed by, or providing services to, the Company Entities.

	5.	Non-Disparagement.  At no time shall you knowingly or intentionally say or do anything to disparage the Company or take any actions detrimental to the best interests of the Company, or any of its employees, including but not limited to, disclosure to third parties or any other use of information confidential to the Company.  You also acknowledge your ongoing obligations under the Cable One Code of Business Conduct which include, among other things, your obligation not to use or disclose for your own advantage or profit, or the advantage or profit of any other person or entity, any confidential information as defined therein.

	6.	Confidentiality.  You will keep in strict confidence, and will not, directly or indirectly, at any time during or after your association with the Company, disclose, furnish, disseminate, make available or, except for the sole purpose of performing your duties in association with the Company, use any trade secrets or valuable confidential information of the Company Entities or their customers or vendors, without limitation as to when or how you may have acquired such information.  Such confidential information shall include, without limitation, the Company Entities’ selling, manufacturing and servicing methods and business techniques, training, service and business manuals, promotional materials, training courses and other training and instructional materials, vendor and product information, customer and prospective customer lists, other customer and prospective customer information and other business information.  You specifically acknowledge that all such confidential information, whether reduced to writing, maintained on any form of electronic media or maintained in your mind or memory and whether compiled by the Company, and/or you, derives independent economic value from not being readily known to or ascertainable by proper means by others who can obtain economic value from its disclosure or use, that reasonable efforts have been made by the Company to maintain the secrecy of such information, that such information is the sole property of the Company and that any retention and use of such information by you after the termination of your association shall constitute a misappropriation of the Company’s trade secrets. 

 

 

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	7.	Cooperation.  Additionally, you agree to cooperate with and assist the Company in the defense of any claim or proceeding brought against it arising out of any aspect of the performance of your job while employed.  This cooperation and assistance shall include making yourself available at reasonable times to respond to requests for information from the Company’s management and its attorneys and attendance at any legal or administrative proceedings where the Company determines your attendance is necessary.

	8.	Notice.  You hereby agree that prior to accepting employment with any other person or entity during your period of service with the Company or the Non-Competition Period, you shall provide such prospective employer with written notice of the provisions of this Appendix A, with a copy of such notice delivered no later than the date of your commencement of such employment with such prospective employer, to the General Counsel of the Company.

	9.	General.  You acknowledge and agree that the terms of the Restrictive Covenants:  (a) are reasonable in light of all of the circumstances, (b) are sufficiently limited to protect the legitimate interests of the Company Entities, (c) impose no undue hardship on you and (d) are not injurious to the public.

	10.	Other Restrictive Covenants.  You acknowledge that, in the event that you are subject to an employment contract, the Restrictive Covenants set forth in this Appendix A constitute a supplement to such employment contract and will be entirely governed by the distinct and specific provisions of this Appendix A.  You acknowledge that the Restrictive Covenants set forth in this Appendix A shall supersede and are in full substitution for any and all prior restrictive covenants included in any award agreement evidencing any Prior Awards by which you are bound, and this paragraph shall constitute a valid amendment to such award agreements.  You further acknowledge that, except as provided in this paragraph, the Restrictive Covenants and notice period requirements set forth in this Award Agreement shall operate independently of, and not instead of, any other restrictive covenants or notice period requirements to which you are subject pursuant to other plans and agreements involving the Company Entities.

A-3Exhibit 10.1

		

			Exhibit 10.1

		

		
			SCICLONE PHARMACEUTICALS, INC.
		

		
			EMPLOYEE RETENTION AGREEMENT
		

		
			This Employee Retention Agreement (the “Agreement”) is effective as of June 16, 2015, by and between Friedhelm Blobel  (“Employee”) and SciClone Pharmaceuticals, Inc., a Delaware corporation (the “Company”).  For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets, or any subsidiary of the Company or its successor.
		

		
			RECITALS
		

			
	
			
				 A.
			Employee presently serves as President and Chief Executive Officer 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”)  through its Compensation Committee 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 Employee.

			
	
			
				 C.
			The Board believes that it is imperative to provide Employee with certain severance benefits upon Employee’s termination of employment under circumstances described in this Agreement that will provide Employee with enhanced financial security and provide sufficient incentive and encouragement to Employee to remain with the Company.

		
			AGREEMENT
		

		
			Employee and the Company agree as set forth below:
		

			
	
			
				 1.
			Terms of Employment.  The Company and Employee agree that Employee’s employment is “at will” 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 or Section 4 below.  If Employee’s employment with the Company terminates for any reason, Employee shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement. During his or her employment with the Company, Employee agrees to devote his or her full business time, energy and skill to his or her duties with the Company.  These duties shall include, but not be limited to, any duties consistent with Employee’s position that may be assigned to Employee from time to time by the Company or the Board.

			
	
			
				 2.
			Termination Other than During Change in Control Period.

			
	
			
				 (a)
			Termination without Cause.  Subject to the limitations set forth in Sections 5 and 6, if Employee’s employment with the Company is terminated without Cause other than during a Change in Control Period, then Employee shall be entitled to receive, in addition to the compensation and benefits earned by Employee through the date of his or her termination (“Accrued Compensation”), severance benefits as follows:

		

		

		 

		

			 

		

		

			WEST\258782745.1 

		

 

		
		

			
	
			
				 (i)
			Base Salary Continuation Benefit.    Continuation of Employee's base salary in effect on Employee's termination date for a period of twelve  (12)  months following such termination date,  with such base salary to be paid in installments on the Company's regular payroll dates beginning on the earlier of (A) the first regular payroll date following the date on which the Release (as defined in Section 5) becomes effective and (B) the seventy-fourth  (74th) day following Employee’s termination date; provided that if such seventy-four  (74) day period spans two calendar years, the installment payments shall begin in the second such calendar year.  The initial payment of continued base salary will include a catch-up payment consisting of the installments that otherwise would have been paid on the regular payroll dates occurring between Employee’s termination date and such initial payment date.

			
	
			
				 (ii)
			Separation Bonus Benefit.  A separation bonus equal to the pro rata portion through the date of such termination of the average of Employee’s annual performance bonus earned for the two (2) most recent fiscal years for which bonuses have been earned prior to such termination date.  Any payment to which Employee is entitled pursuant to this clause (ii) shall be paid in a lump sum on the date on which the initial installment of base salary continuation described in clause (i) above is paid.

			
	
			
				 (iii)
			Share-Based Compensation Awards.  The treatment of share-based compensation awards upon Employee’s termination of Employment covered by this Section (a) shall be determined in accordance with the terms of the plans or agreements providing for such awards.

			
	
			
				 (iv)
			Healthcare Benefit.  The Company shall, if permitted under the Company’s existing health insurance plans, continue Employee’s existing group health insurance coverage.  If not so permitted, the Company shall reimburse Employee for any COBRA premiums paid by Employee for continued group health insurance coverage.  Such health insurance coverage or reimbursement of COBRA premiums shall continue until the earlier of (A) twelve (12) months after the date of Employee’s termination of employment or (B) the date on which Employee commences New Employment (in either case, the “COBRA Period”).    Notwithstanding the foregoing, if the Company determines, in its sole discretion, that its reimbursement of the COBRA premiums would result in a violation of the nondiscrimination rules of Section 105(h)(2) of the Internal Revenue Code of 1986, as amended (the “Code”) or any statute or regulation of similar effect (including but not limited to the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of reimbursing the COBRA premiums, the Company shall instead pay to Employee on the first day of each month of the COBRA Period, a fully taxable cash payment equal to the COBRA premiums for that month, subject to applicable tax withholdings (such amount, the “Special Severance Payment”), for the remainder of the COBRA Period.  Employee may, but is not obligated to, use such Special Severance Payment toward the cost of COBRA premiums.

			
	
			
				 (b)
			Voluntary Resignation; Termination For Cause.  If Employee’s employment terminates by reason of Employee’s voluntary resignation (but not as a result of termination by the Company without Cause) or as a result of Employee’s termination by the Company for Cause, then Employee shall be entitled only to Employee’s Accrued Compensation and shall not be entitled to receive any severance benefits under this Agreement.

		 

		

			2

		

		

			 

		

		

			WEST\258782745.2 

		

 

			
	
			
				 (c)
			Disability; Death.  If the Company terminates Employee’s employment as a result of Employee’s Disability or death, then Employee shall be entitled only to Employee’s Accrued Compensation and shall not be entitled to receive any severance benefits under this Agreement.

			
	
			
				 3.
			Treatment of Equity Awards Upon a Change in Control.

			
	
			
				 (a)
			Effect of Non-Assumption.  Except as provided by Section 3(b) below, notwithstanding any provision to the contrary contained in any plan or agreement evidencing a share-based compensation award with respect to Company common stock held by Employee (an “Equity Award”), in the event of a Change in Control in which the surviving, continuing, successor, or purchasing corporation or other business entity or parent thereof, as the case may be (the “Acquiror”), does not assume or continue the Company’s rights and obligations under a then-outstanding Equity Award or substitute for such Equity Award a substantially equivalent share-based compensation award with respect to the Acquiror’s capital stock, then the vesting, exercisability and settlement (as applicable) of such Equity Award shall be accelerated in full effective immediately prior to, but conditioned upon, the consummation of the Change in Control.  For purposes of this Section, an Equity Award shall be deemed assumed if, following the Change in Control, the Equity Award confers the right of Employee to receive, subject to the terms and conditions of the applicable Company equity incentive plan and award agreement evidencing such Equity Award, for each share of Company common stock subject to the Equity Award immediately prior to the Change in Control, the consideration (whether shares, cash, other securities or property or a combination thereof) to which a holder of a share of Company common stock on the effective date of the Change in Control was entitled (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 Company common stock); provided, however, that if such consideration is not solely common stock of the Acquiror, the Compensation Committee of the Board may, with the consent of the Acquiror, provide for the consideration to be received upon the exercise or settlement of the Equity Award, for each share subject to the Equity Award, to consist solely of common stock of the Acquiror equal in fair market value to the per share consideration received by holders of Company common stock pursuant to the Change in Control.

			
	
			
				 (b)
			Other Share-Based Compensation Awards.  Notwithstanding Section 3(a) or anything else in this Agreement to the contrary, the treatment of an Equity Award upon the consummation of a Change in Control, including but not limited to the acceleration thereof, shall be determined in accordance with the terms of the applicable Company equity incentive plan and award agreement evidencing such Equity Award if their terms provide treatment that is more favorable to Employee than the treatment provided by this Agreement.

			
	
			
				 4.
			Termination During Change in Control Period.

			
	
			
				 (a)
			Involuntary Termination.  Subject to the limitations set forth in Sections 5 and 6, if Employee’s employment with the Company terminates as a result of Involuntary Termination during a Change in Control Period, then Employee shall be entitled to receive, in addition to Employee’s Accrued Compensation, severance benefits as follows:

		 

		

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			WEST\258782745.2 

		

 

			
	
			
				 (i)
			Base Salary Benefit.    An amount equal to one hundred and fifty  percent (150%)  of Employee’s annual base salary as in effect at the time of such termination (without giving effect to any reduction in base salary that would constitute Constructive Termination) shall be paid to Employee in a lump sum on the earlier of (A) the Company's first regular payroll date following the date on which the Release (as defined in Section 5) becomes effective and (B) the seventy-fourth  (74th) day following Employee’s termination date; provided that if such seventy-four (74) day period spans two calendar years, the payment shall be made in the second such calendar year; and provided further, however, that if the Change in Control does not constitute a “change in control event” as defined by Treasury Regulation Section 1.409A-3(i)(5) or any successor thereto, then the severance amount required by this clause (i) shall be divided into installments and paid at the times and in the manner such installments would be paid in accordance with Section 2(a)(i).

			
	
			
				 (ii)
			Separation Bonus Benefit.  A  separation bonus equal to one hundred percent (100%) of the average of Employee’s annual performance bonus earned for the two (2) most recent fiscal years for which bonuses have been earned prior to the termination date shall be paid in a lump sum on the earlier of (A) the Company's first regular payroll date following the date on which the Release (as defined in Section 5) becomes effective and (B) the seventy-fourth  (74th) day following Employee’s termination date; provided that if such seventy-four (74) day period spans two calendar years, the payment shall be made in the second such calendar year.

			
	
			
				 (iii)
			Share-Based Compensation Awards.  All Options and other share-based compensation awards  (but excluding Options and other share-based compensation awards subject to performance-based vesting, whether or not also subject to service-based vesting) held by Employee shall become vested in full as of Employee’s termination date, and such Options shall remain exercisable until the earlier of twelve (12) months following Employee’s termination date or the expiration of their term.

			
	
			
				 (iv)
			Healthcare Benefit.  The Company shall, if permitted under the Company’s existing health insurance plans, continue Employee’s existing group health insurance coverage.  If not so permitted, the Company shall reimburse Employee for any COBRA premiums paid by Employee for continued group health insurance coverage.  Such health insurance coverage or reimbursement of COBRA premiums shall continue until the earlier of (A) the date twelve (12) months after the date of Employee’s termination of employment or (B) the date on which Employee commences New Employment.    Notwithstanding the foregoing, if the Company determines, in its sole discretion, that its reimbursement of the COBRA premiums would result in a violation described in Section 2(a)(iii), the Company shall pay to Employee the Special Severance Payment described in Section 2(a)(iii).

			
	
			
				 (b)
			Voluntary Resignation; Termination For Cause.  If Employee’s employment terminates during the Change in Control Period by reason of Employee’s voluntary resignation (but not as a result of an Involuntary Termination) or as a result of Employee’s termination by the Company for Cause,  then Employee shall be entitled only to Employee’s Accrued Compensation and shall not be entitled to receive any severance benefits  under this Agreement.

		 

		

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				 (c)
			Disability; Death.  If the Company terminates Employee’s employment as a result of Employee’s Disability or death, then Employee shall be entitled only to Employee’s Accrued Compensation and shall not be entitled to receive any severance benefits under this Agreement.

			
	
			
				 5.
			Release of Claims; Resignation.  Employee’s entitlement to any severance pay or benefits under this Agreement is conditioned upon Employee’s execution and delivery to the Company of (a) a general release of known and unknown claims substantially in the form attached hereto as Exhibit A which becomes effective in accordance with its terms on or before the sixtieth (60th) day following Employee’s termination date and (b) resignation from all of Employee’s positions with the Company, including from the Board of Directors and any committees thereof on which Employee serves, in a form satisfactory to the Company.

			
	
			
				 6.
			Certain Tax Matters.

			
	
			
				 (a)
			Parachute Payments.  In the event that any payment or benefit received or to be received by Employee pursuant to this Agreement or otherwise (collectively, the “Payments”) would result in a “parachute payment” as described in Section 280G of the Code, then 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 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 Employee, in Employee’s sole and absolute discretion.  If no such determination is made by Employee within thirty (30) days of the occurrence of such payment, the Company will promptly make such determination in a fair and equitable manner.

			
	
			
				 (b)
			Section 409A.  The Company and Employee intend that this Agreement (and all payments and other benefits provided under this Agreement) be exempt from the requirements of Section 409A of the Code and the regulations and ruling issued thereunder (collectively “Section 409A”), to the maximum extent possible, whether pursuant to the short-term deferral exception described in Treasury Regulation Section 1.409A-1(b)(4), the involuntary separation pay plan exception described in Treasury Regulation Section 1.409A-1(b)(9)(iii), or otherwise.  To the extent Section 409A is applicable to such payments, the Company and Employee intend that this Agreement (and such payments and benefits) comply with the deferral, payout and other limitations and restrictions imposed under Section 409A.  Notwithstanding any other provision of this Agreement to the contrary, this Agreement shall be interpreted, operated and administered in a manner consistent with such intentions.  Without limiting the generality of the foregoing, and notwithstanding any other provision of this Agreement to the contrary:

			
	
			
				 (i)
			No amount payable pursuant to this Agreement on account of Employee’s termination of employment with the Company which constitutes a “deferral of compensation” within the meaning of Section 409A shall be paid unless and until Employee has incurred a “separation from service” within the meaning of Section 409A.  Furthermore, to the extent that Employee is a “specified employee” within the meaning of Section 409A (determined using the identification methodology selected by Company from time to time, or if none, the default methodology) as of the date of Employee’s separation from service, no amount that constitutes a deferral of compensation which is payable on account of Employee’s separation 
		

		 

		

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			from service shall paid to Employee before the date (the “Delayed Payment Date”) which is first day of the seventh month after the date of Employee’s separation from service or, if earlier, the date of Employee’s death following such separation from service.  All such amounts that would, but for this Section, become payable prior to the Delayed Payment Date will be accumulated and paid in a lump sum on the Delayed Payment Date.  Thereafter, any payments that remain outstanding as of the day immediately following the Delayed Payment Date shall be paid without delay over the time period originally scheduled, in accordance with the terms of this Agreement.

			
	
			
				 (ii)
			The Company and Employee intend that any right of Employee to receive installment payments hereunder shall, for all purposes of Section 409A, be treated as a right to a series of separate payments.

			
	
			
				 (iii)
			Neither the Company nor Employee shall have the right to accelerate or defer any payment or benefit under this Agreement except to the extent specifically permitted or required by Section 409A.

			
	
			
				 (iv)
			Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g. “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.

			
	
			
				 (v)
			With regard to any provision in this Agreement that provides for reimbursement of expenses or in-kind benefits, except for any expense, reimbursement or in-kind benefit provided pursuant to this Agreement that does not constitute a “deferral of compensation,” within the meaning of Section 409A, (A) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (B) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, provided that the foregoing clause (B) shall not be deemed to be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect, and (C) such payments shall be made on or before the last day of Employee’s taxable year following the taxable year in which the expense occurred.

			
	
			
				 (vi)
			The Company intends that income provided to Employee pursuant to this Agreement will not be subject to taxation under Section 409A.  However, the Company does not guarantee any particular tax effect for income provided to Employee pursuant to this Agreement.  In any event, except for the Company’s responsibility to withhold applicable income and employment taxes from compensation paid or provided to Employee, the Company shall not be responsible for the payment of any applicable taxes on compensation paid or provided to Employee pursuant to this Agreement.

			
	
			
				 (c)
			Tax Withholding.  The Company may withhold from any amounts payable under this Agreement such taxes or other amounts as shall be required to be withheld pursuant to applicable law or regulation.

		 

		

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				 7.
			Consulting Services.  During the three  (3) months following any termination of Employee’s employment described in Section 2(a) or Section 4(a),  Employee shall be retained by the Company as an independent contractor to provide consulting services to the Company at its request for up to (but no more than) five (5) 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 Employee’s duties.  Such services shall be provided at mutually convenient times.  For the actual provision of such services, the Company shall pay to Employee a consulting fee of $400 per hour, up to a maximum of  $2,500 per day, plus reasonable out-of-pocket expenses (for example, travel and lodging).

			
	
			
				 8.
			Definition of Terms.  The following terms referred to in this Agreement shall have the following meanings:

			
	
			
				 (a)
			“Cause” means any of the following:

			
	
			
				 (i)
			Employee’s theft, dishonesty, misconduct or falsification of any records of the Company;

			
	
			
				 (ii)
			Employee’s misappropriation or improper disclosure of confidential or proprietary information of the Company;

			
	
			
				 (iii)
			any intentional action by Employee which has a material detrimental effect on the reputation or business of the Company;

			
	
			
				 (iv)
			Employee’s failure or inability to perform any reasonable assigned duties after written notice from the Company of, and a reasonable opportunity to cure, such failure or inability;

			
	
			
				 (v)
			any material breach by Employee of any employment agreement between Employee and the Company, which breach is not cured pursuant to the terms of such agreement; or

			
	
			
				 (vi)
			Employee’s conviction of any criminal act which impairs Employee’s ability to perform his or her duties for the Company.

			
	
			
				 (b)
			“Change in Control” means any of the following: (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.

			
	
			
				 (c)
			“Change in Control Period” means the period commencing upon the consummation of a Change in Control and ending on the first anniversary of such Change in Control.

		 

		

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				 (d)
			“COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

			
	
			
				 (e)
			“Constructive Termination” means any one or more of the following conditions:

			
	
			
				 (i)
			without Employee’s express written consent, the assignment to Employee, following a Change in Control, of any title or duties, or any limitation of Employee’s responsibilities, that are substantially and adversely inconsistent with Employee’s title(s), duties, or responsibilities with the Company immediately prior to the date of the Change in Control (including, but not limited to, Employee’s failure to report to the Chief Executive Officer and/or failure to be a member of the executive staff);

			
	
			
				 (ii)
			without Employee’s express written consent, the relocation of the principal place of Employee’s employment, following Change in Control, to a location that is more than fifty (50) miles from 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 Employee than such travel requirements existing immediately prior to the date of the Change in Control;

			
	
			
				 (iii)
			any failure by the Company, following a  Change in Control, to pay, or any material reduction by the Company of, (A) Employee’s base salary in effect immediately prior to the date of the Change in Control, or (B) 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 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 who have substantially similar titles and responsibilities as Employee; and

			
	
			
				 (iv)
			any failure by the Company, following a Change in Control, to (A) continue to provide 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 then held by Employee, in any benefit or compensation plans and programs, including, but not limited to, the Company’s life, disability, health, dental, medical, savings, profit sharing, stock purchase and retirement plans, if any, in which Employee was participating immediately prior to the date of the Change in Control, or in substantially similar plans or programs, or (B) provide 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 then held by Employee, which Employee was receiving immediately prior to the date of the Change in Control.

		
			However, the occurrence of the foregoing conditions shall not constitute a Constructive Termination unless (A) Employee has given written notice of the occurrence of any such condition(s) to the Chairman of the Board within sixty (60) days following the date on which Employee knows, or with the exercise of reasonable diligence would know, of the occurrence of 
		

		 

		

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		any of such conditions, (B) the Company fails to cure the condition(s) constituting Constructive Termination within twenty (20) days after receipt of such written notice thereof, and (C) Employee terminates employment with the Company within thirty (30) days following expiration of such cure period.
		

			
	
			
				 (f)
			“Disability” means the inability of Employee, in the opinion of a qualified physician, to perform the essential functions of Employee’s position with the Company, with or without reasonable accommodation, because of the sickness or injury of Employee.

			
	
			
				 (g)
			“Involuntary Termination” means the occurrence of either of the following events during a Change in Control Period:

			
	
			
				 (i)
			termination by the Company of Employee’s employment without Cause; or

			
	
			
				 (ii)
			Employee’s Constructive Termination.

		
			“Involuntary Termination” shall not include any termination of Employee’s employment that is (1) for Cause, (2) a result of Employee’s death or Disability, or (3) a result of Employee’s voluntary resignation.
		

			
	
			
				 (h)
			“New Employment” means any employment obtained by Employee after the termination of 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, 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.

			
	
			
				 (b)
			Employee’s Successors.  All rights of Employee hereunder shall inure to the benefit of, and be enforceable by, Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  Employee shall have no right to assign any of his obligations or duties under this Agreement to any other person or entity.

			
	
			
				 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 Employee, mailed notices shall be addressed to Employee at the home address which he most recently communicated to the Company in writing.  In the case of 
		

		 

		

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			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 or 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.  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 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 Employee and by an authorized officer of the Company (other than 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.  In the event of any dispute or claim relating to or arising out of Employee’s employment relationship with the Company, this Agreement, or the termination of Employee’s employment with the Company for any reason (including, but not limited to, any claims of breach of contract, wrongful termination, fraud or age, race, sex, national origin, disability or other discrimination or harassment), Employee and the Company agree that all such disputes shall be fully, finally and exclusively resolved by binding arbitration conducted by the American Arbitration Association in San Mateo County, California.  Judgment upon any decision or award rendered by the arbitrator may be entered in any court having jurisdiction over the matter.  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.  Subject to Section 3(b) hereof, this Agreement supersedes all prior understandings and agreements, whether written or oral, regarding the subject matter of this Agreement.

		

		

		 

		

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			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/ Wilson W. Cheung
		

		
			EMPLOYEE
		

		
			/s/ Friedhelm Blobel  
		

		
			FRIEDHELM BLOBEL
		

		
			 
		

		

		

		 

		

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			Exhibit A
		

		
			RELEASE
		

		
			In exchange for the severance pay and benefits described in Employee Retention Agreement between SciClone Pharmaceuticals, Inc. (the “Company”) and me effective as of [], 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 federal, state or local law, statute, or cause of action, including, but not limited to, the federal Civil Rights Act of 1964, as amended; the federal Americans with Disabilities Act of 1990; the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”); the California Fair Employment and Housing Act, as amended; tort law; contract law; wrongful discharge; race, sex, age or other discrimination or harassment; fraud; defamation; emotional distress; and breach of the implied covenant of good faith and fair dealing.
		

		
			I am knowingly, willingly and voluntarily releasing any claims I may have under the ADEA.  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 further acknowledge that I have been advised by this writing, as required by the ADEA, that:  (a) this Release does not apply to any rights or claims that may arise after I sign it; (b) I have the right to consult with an attorney prior to signing this Release; (c) I have twenty-one (21) days to consider this Release (although I may choose to voluntarily sign this Release earlier); (d) I have seven (7) days after I sign this Release to revoke it; and (e) this Release shall not be effective until the eighth day after it is signed by me.
		

		
			In giving this release, which includes claims that may be unknown to me at present, I acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows:  “A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”  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.
		

		
			 
		

		
			 
		

		

		

		 

		

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		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: 

					
					
						 

					
					
						 

					
					
						 

					
					
						  

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						Friedhelm Blobel

				
	
					
						 

					
					
						 

					
					
						 

					
						 

					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						SCICLONE PHARMACEUTICALS, INC.

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Date: 

					
					
						 

					
					
						 

					
					
						 

					
					
						By:

					
					
						 

					
					
						  

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}]]