Document:

<PAGE>

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE APPLICABLE SECURITIES LAWS OF
ANY STATE OR OTHER JURISDICTION, AND MAY NOT BE SOLD, ASSIGNED, TRANSFERRED,
PLEDGED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE REQUIREMENTS OF
SUCH ACT AND THE APPLICABLE SECURITIES LAW OF ANY STATE OR OTHER JURISDICTION.

                      WARRANT TO PURCHASE 1,000,000 SHARES
                             OF THE COMMON STOCK OF
                         DIGITAL LIFESTYLES GROUP, INC.

WARRANT NO.: 2004-WCC1                      DATE OF ISSUANCE: SEPTEMBER 9, 2004

         This certifies that WESTECH CAPITAL CORPORATION, or its permitted
assigns (each individually, a "HOLDER") in exchange for $100.00 in cash paid to
the Company, receipt of which is acknowledged by the Company, shall be entitled
to purchase from Digital Lifestyles Group, Inc., a Delaware corporation (the
"COMPANY"), having its principal place of business at 1001 S. Capital of Texas
Highway, Building I, Suite 200, Austin, Texas 78746, a maximum of One Million
(1,000,000) fully paid and nonassessable shares of the Company's common stock,
par value $0.03 per share ("COMMON STOCK"), for a purchase price equal to $0.475
per share (the "EXERCISE PRICE") at any time, or from time to time, up to and
including 5:00 p.m., Central Standard time on September 9, 2012 (the "EXPIRATION
DATE"), upon (i) the surrender to the Company at its principal place of business
(or at such other location as the Company may advise the Holder in writing) of
this Warrant and a Form of Subscription in substantially the form attached
hereto duly completed and executed and, (ii) if applicable, payment in cash or
by check or other consideration permitted pursuant to Section 1(b) hereof of the
aggregate Exercise Price for the number of shares for which this Warrant is
being exercised, determined in accordance with the provisions hereof. The
Exercise Price and the number of shares of Common Stock purchasable hereunder
are subject to adjustment as provided in Section 3 hereof.

         This Warrant is subject to the following terms and conditions:

1.       EXERCISE; ISSUANCE OF CERTIFICATES; PAYMENT FOR SHARES.

         (a)      General. This Warrant is exercisable at the option of the
Holder of record hereof, at any time or from time to time up to the Expiration
Date for all or any part of the shares of Common Stock (but not for a fraction
of a share) which may be purchased hereunder. The Company agrees that the shares
of Common Stock purchased under this Warrant shall be and are deemed to be
issued to the Holder hereof as the record owner of such shares as of the close
of business on the date on which (i) this Warrant shall have been surrendered,
properly endorsed, (ii) the completed, executed Form of Subscription shall have
been surrendered, and (iii) payment shall have been made to the Company for such
shares, in each case, at the Company's address set forth above (or at such other
location as the Company may advise the Holder in writing). Certificates for the
shares of Common Stock so purchased, together with any other securities or
property to which the Holder is entitled upon such exercise, shall be delivered
to the Holder by the Company at the Company's expense within a reasonable time
after the rights represented by this Warrant have been so exercised, and in any
event, within ten (10) days of such exercise. In case of a purchase of less than
all the shares that may be purchased under this Warrant, the Company shall
cancel this Warrant and execute and deliver a new Warrant or Warrants of like
tenor for the balance of the shares purchasable under the Warrant surrendered
upon such purchase, to the Holder hereof within a reasonable time. Each stock
certificate so delivered shall be in such denominations of Common Stock as may
be requested by the Holder hereof and shall be registered in the name of the
Holder.

                                       1
<PAGE>

         (b)      Net Issue Exercise. Notwithstanding any provisions herein to
the contrary, if the fair market value of one share of the Company's Common
Stock is greater than the Exercise Price (at the date of calculation as set
forth below), in lieu of exercising this Warrant for cash, the Holder may elect
to receive shares equal to the value (as determined below) of this Warrant (or
the portion thereof being canceled) by surrender of this Warrant at the
principal office of the Company together with the properly endorsed Form of
Subscription and notice of such election, in which event the Company shall issue
to the Holder a number of shares of Common Stock computed using the following
formula:

                  X = Y (A-B)
                      -------
                         A

         Where:

                  X =      the number of shares of Common Stock to be issued
                           to the Holder;

                  Y =      the number of shares of Common Stock purchasable
                           under the Warrant or, if only a portion of the
                           Warrant is being exercised, the portion of the
                           Warrant being canceled (at the date of such
                           calculation);

                  A =      the fair market value of one share of the Company's
                           Common Stock (at the date of such calculation); and

                  B =      Exercise Price (as adjusted to the date of such
                           calculation).

For purposes of the above calculation, "FAIR MARKET VALUE" shall mean with
respect to the Common Stock on any date in question the average of the closing
sales prices per share of the Common Stock for the previous fifteen (15)
consecutive trading days (i) on the principal securities exchange or trading
market where the Common Stock is listed or traded or, if the foregoing does not
apply, (ii) in the over-the-counter market on the electronic bulletin board for
the Common Stock or, if, and only if, no trading price is reported for the
Common Stock, then (iii) its fair market value shall be as determined, in good
faith by the board of directors of the Company.

         (c)      Common Stock Legend. Upon any exercise of the Warrants,
certificates representing the shares of Common Stock shall bear a restrictive
legend substantially identical to that set forth on the face of this Warrant.

2.       SHARES TO BE FULLY PAID; RESERVATION OF SHARES.

         The Company covenants and agrees that all shares of Common Stock that
may be issued upon the exercise of the rights represented by this Warrant will,
upon issuance, be duty authorized, validly issued, fully paid and nonassessable
and free of all taxes, liens and charges with respect to the issue thereof. The
Company further covenants and agrees that, during the period within which the
rights represented by this Warrant may be exercised, the Company will at all
times have authorized and reserved, for the purpose of issue or transfer upon
exercise of the subscription rights evidenced by this Warrant, a sufficient
number of shares of authorized but unissued Common Stock, or other securities
and property, when and as required to provide for the exercise of the rights
represented by this Warrant. The Company will take all such action as may be
necessary to assure that such shares of Common Stock may be issued as provided
herein without violation of any applicable law or regulation, or of any
requirements of any domestic securities exchange upon which the Common Stock may
be listed; provided, however, that the Company shall not be required to effect a
registration under Federal or State securities laws with respect to such
exercise.

                                       2
<PAGE>

3.       ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF SHARES.

         The Exercise Price and the number of shares (or amount of other
securities or property) purchasable upon the exercise of this Warrant shall be
subject to adjustment from time to time upon the occurrence of certain events
described in this Section 3. This Section shall not require an adjustment to the
Exercise Price in connection with any dividends paid in cash or upon any sale of
shares of Common Stock for a per share price that is less than the Exercise
Price.

         (a)      Subdivision or Combination of Stock. If the Company shall
effect a stock dividend or stock split or subdivide its outstanding shares of
Common Stock into a greater number of shares, the Exercise Price in effect
immediately prior to such stock dividend, stock split or subdivision shall be
proportionately reduced, and conversely, if the Company shall effect a reverse
stock split or combine its outstanding shares of Common Stock into a smaller
number of shares, the Exercise Price in effect immediately prior to such reverse
stock split or combination shall be proportionately increased. Upon each
adjustment of the Exercise Price, the Holder of this Warrant shall thereafter be
entitled to purchase, at the Exercise Price resulting from such adjustment, the
number of shares obtained by multiplying the Exercise Price in effect
immediately prior to such adjustment by the number of shares purchasable
pursuant hereto immediately prior to such adjustment, and dividing the product
thereof by the Exercise Price resulting from such adjustment.

         (b)      Dividends in Common Stock, Other Stock, Property,
Reclassification. If the holders of Common Stock (or any shares of stock or
other securities at the time receivable upon the exercise of this Warrant) shall
have received or become entitled to receive, without payment therefor,

                  (i)      Common Stock or any shares of stock or other
         securities that are directly or indirectly convertible into or
         exchangeable for Common Stock, or any rights or options to subscribe
         for, purchase or otherwise acquire any of the foregoing by way of
         dividend or other distribution (other than shares of Common Stock
         issued as a stock dividend, stock split or subdivision, adjustments in
         respect of which shall be covered by the terms of Section 3(a) above),

                  (ii)     any cash paid or payable otherwise than as a cash
         dividend (other than a liquidation or dissolution, which shall be
         covered by the terms of Section 3(d) below), or

                  (iii)    additional shares of Common Stock or additional stock
         or other securities or property (including cash) by way of spin-off,
         split-up, reclassification, recapitalization, reorganization,
         combination of shares or similar corporate rearrangement (other than
         shares of Common Stock issued as a stock dividend, stock split or
         subdivision, adjustments in respect of which shall be covered by the
         terms of Section 3(a) above),

then, and in each such case, the Holder hereof shall, upon the exercise of this
Warrant, be entitled to receive, in addition to the number of shares of Common
Stock receivable upon such exercise, and without payment of any additional
consideration therefor, the amount of stock and other securities and property
(including cash in the cases referred to in clauses (ii) and (iii) above) which
such Holder would hold on the date of such exercise had such Holder been the
holder of record of such Common Stock as of the date on which holders of Common
Stock received or became entitled to receive such shares or all other additional
stock and other securities and property.

         (c)      Reorganization, Reclassification, Consolidation, Merger or
Sale. If any reclassification, recapitalization or reorganization, or
consolidation or merger of the Company with another corporation, or the sale of
all or substantially all of its assets or other similar transaction, shall be
effected in such a way that holders of Common Stock shall be entitled to
receive, with respect to or in exchange for their shares of Common Stock,
securities or other assets or property (an "ORGANIC CHANGE") and the Company

                                       3
<PAGE>

is the resulting or surviving corporation of such Organic Change, then, as a
condition of such Organic Change, provisions shall be made by the Company
whereby the Holder hereof shall thereafter have the right to purchase and
receive (in lieu of the shares of the Common Stock of the Company purchasable
and receivable upon the exercise of this Warrant immediately prior to such
Organic Change) such shares of stock, securities or other assets or property as
may be issued or payable in connection with such Organic Change with respect to
or in exchange for the number of outstanding shares of such Common Stock
purchasable and receivable upon the exercise of this Warrant immediately prior
to such Organic Change. In the event of any Organic Change, appropriate
provision shall be made by the Company with respect to the rights and interests
of the Holder of this Warrant to the end that the provisions hereof (including,
without limitation, provisions for adjustments of the Exercise Price and of the
number of shares (or amount of stock, other securities or property) purchasable
and receivable upon the exercise of this Warrant) shall thereafter be
applicable, in relation to any shares of stock, securities or property
thereafter deliverable upon the exercise hereof. In the event of any Organic
Change pursuant to which the Company is not the surviving or resulting
corporation, prior to the consummation thereof, the corporation resulting from
such Organic Change or the corporation purchasing such assets shall assume by
written instrument the obligation to deliver to the Holder such shares of stock,
securities or assets as, in accordance with the foregoing provisions, the Holder
may be entitled to purchase.

         (d)      Liquidation or Dissolution. In the event of a proposed
dissolution or liquidation of the Company, this Warrant will terminate
immediately prior to the consummation of such proposed action, so long as the
Company has delivered the notice required by Section 3(f)(iv) below.

         (e)      Certain Events. If any change in the outstanding Common Stock
of the Company or any other event occurs as to which the other provisions of
this Section 3 are not strictly applicable or if strictly applicable would not
fairly protect the purchase rights of the Holder of the Warrant in accordance
with such provisions, then the Board of Directors of the Company shall make an
adjustment in the number and class of shares or other securities or property
available under the Warrant, the Exercise Price or the application of such
provisions, so as to protect such purchase rights as aforesaid. The adjustment
shall be such as will give the Holder of the Warrant upon exercise for the same
aggregate Exercise Price the total number, class and kind of shares or other
securities or property as the Holder have owned had the Warrant been exercised
prior to the event and had the Holder continued to hold such shares until after
the event requiring adjustment.

         (f)      Notices of Change.

                  (i)      Immediately upon any adjustment in the number or
         class of shares subject to this Warrant and of the Exercise Price, the
         Company shall give written notice thereof to the Holder, setting forth
         in reasonable detail and certifying the calculation of such adjustment,

                  (ii)     The Company shall give written notice to the Holder
         at least ten (10) business days prior to the date on which the Company
         closes its books or takes a record for determining rights to receive
         any dividends or distributions,

                  (iii)    The Company shall also give written notice to the
         Holder at least ten (10) business days prior to the date on which an
         Organic Change shall take place, and

                  (iv)     The Company shall give written notice to the Holder
         at least ten (10) business days prior to the effective date of any
         proposed liquidation or dissolution of the Company.

         (g)      Calculations. All calculations under this Section 3 shall be
made to the nearest cent or the nearest 1/100th of a share, as applicable. The
number of shares of Common Stock outstanding at any given time shall not include
shares owned or held by or for the account of the Company, and the

                                       4
<PAGE>

disposition of any such shares shall be considered an issue or sale of Common
Stock.

         (h)      Adjustments. Notwithstanding any provision of this Section 3,
no adjustment of the Exercise Price shall be required if such adjustment is less
than $0.01; provided, however, that any adjustments that by reason of this
Section 3(h) are not required to be made shall be carried forward and taken into
account for purposes of any subsequent adjustment.

4.       REGISTRATION RIGHTS.

         Shares of Common Stock issued upon exercise of this Warrant shall be
registrable and subject to the terms of that certain Registration Rights
Agreement dated as of date hereof by and among the Company and various
purchasers, by which the Company has agreed to file a registration statement for
the resale of the shares of Common Stock.

5.       ISSUE TAX.

         The issuance of certificates for shares of Common Stock upon the
exercise of the Warrant shall be made without charge to the Holder of the
Warrant for any issue tax (other than any applicable income taxes) in respect
thereof; provided, however, that the Company shall not be required to pay any
tax which may be payable in respect of any transfer involved in the issuance and
delivery of any certificate in a name other than that of the then Holder of the
Warrant being exercised.

6.       NO VOTING OR DIVIDEND RIGHTS; LIMITATION OF LIABILITY.

         Nothing contained in this Warrant shall be construed as conferring upon
the Holder hereof the right to vote or to consent or to receive notice as a
stockholder of the Company or any other matters or any rights whatsoever as a
stockholder of the Company. Except as provided herein, no dividends or interest
shall be payable or accrue in respect of this Warrant or the interest
represented hereby or the shares purchasable hereunder until, and only to the
extent that, this Warrant shall have been exercised. No provisions hereof, in
the absence of affirmative action by the Holder to purchase shares of Common
Stock, and no mere enumeration herein of the rights or privileges of the Holder
hereof shall give rise to any liability of such Holder for the Exercise Price or
as a stockholder of the Company, whether such liability is asserted by the
Company or by its creditors.

7.       REPRESENTATIONS AND COVENANTS OF THE HOLDER.

         This Warrant has been entered into by the Company in reliance upon the
following representations and covenants of the Holder:

         (a)      Investment Purpose. The Holder is purchasing the Warrant for
the Holder's own account, or for one or more investor accounts for which the
Holder is acting as a fiduciary or agent, in each case for investment, and not
with a view to, or for offer or sale in connection with, any distribution
thereof in violation of the Securities Act of 1933, as amended (the "SECURITIES
ACT"), and state securities laws.

         (b)      Private Issue. The Holder understands (i) that the issuance of
this Warrant and the Common Stock issuable upon exercise of this Warrant have
not been registered under the Securities Act or qualified under applicable state
securities laws on the ground that the issuance contemplated by this Warrant
will be exempt from the registration and qualifications requirements thereof,
and (ii) that the Company's reliance on such exemption is predicated on the
representations set forth in this Section 7.

         (c)      Accredited Investor. Holder is an "ACCREDITED INVESTOR" within
the meaning of Rule 501 of Regulation D under the Securities Act, as presently
in effect.

                                       5
<PAGE>

8.       TRANSFER; DIVISION AND COMBINATION.

         (a)      Transfer Restricted. This Warrant, and any rights hereunder,
may not be assigned or transferred, except as provided in the legend hereon and
in accordance with and subject to provisions of (i) all applicable state
securities laws, and (ii) the Securities Act, and the rules and regulations
promulgated thereunder. Any purported transfer or assignment made other than in
accordance with this Section 8 shall be null and void and of no force and
effect.

         (b)      Assignment. Any assignment permitted hereunder shall be made
by surrender of this Warrant to the Company at its principal place of business
as set forth above with a Form of Assignment in substantially the form attached
hereto duly completed and executed and funds sufficient to pay any transfer tax,
if any. In such event, the Company shall, without charge, execute and deliver a
new Warrant in the name of the assignee named in such instrument of assignment
in the amount so assigned and this Warrant shall be promptly canceled; provided,
however, that in the event that Holder hereof shall assign or transfer less
thank the full amount of this Warrant, a new Warrant evidencing the remaining
portion of this Warrant not so assigned or transferred shall be issued in the
name of the Holder.

         (c)      Division and Combination. This Warrant may divided or combined
with other Warrants upon presentation and surrender hereof at the principal
place of business of the Company as set forth above, together with a written
notice specifying the names and denominations in which new Warrants are to be
issued signed by the Holder. Subject to compliance with Section 3(a), as to any
transfer which may be involved in such division or combination, the Company
shall execute and deliver a new Warrant or Warrants of like tenor in exchange
for the Warrant or Warrants to be divided or combined in accordance with such
notice.

         (d)      Non-Interference. The Company shall not close its books
against the transfer of this Warrant or any share of Common Stock issued or
issuable upon the exercise of this Warrant in any manner which interferes with
the timely exercise of this Warrant.

9.       REGISTER.

         The Company will maintain a register containing the names and addresses
of the registered Holder of this Warrant (the "WARRANT REGISTER"). The Holder
may change its address as shown on the Warrant Register at any time by giving
written notice to the Company requesting such change.

10.      FRACTIONAL SHARES.

         No fractional shares shall be issued upon exercise of this Warrant. The
Company shall, in lieu of issuing any fractional share, pay the Holder entitled
to such fraction a sum in cash equal to such fraction multiplied by the then
effective Exercise Price.

11.      MISCELLANEOUS.

         (a)      No Impairment. The Company will not, by amendment of its
Certificate of Incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issuance or sale of securities, sale or
other transfer of any of its assets or properties, or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms
of this Warrant, but will at all times in good faith assist in the carrying out
of all such terms and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the Holder hereunder against
impairment. Without limiting the generality of the foregoing, the Company (i)
will not increase the par value of any shares of Common Stock receivable upon
the exercise of this Warrant above the amount payable therefor

                                       6
<PAGE>

on such exercise, and (ii) will take all action that may be necessary or
appropriate in order that the Company may validly and legally issue fully paid
and nonassessable shares of Common Stock upon the exercise of this Warrant.

         (b)      Amendments. Any term of this Warrant may be amended with the
written consent of the Company and the Holder. Any amendment effected in
accordance with this Section 10(b) shall be binding upon the Holder, each future
Holder of this Warrant, and the Company.

         (c)      Notices. Any notice, request or other document required or
permitted to be given or delivered to the Holder hereof or the Company shall be
delivered or shall be sent by certified mail, postage prepaid, to each such
Holder at its address as on the Warrant Register or to the Company at the
address indicated therefor in the first paragraph of this Warrant or such other
address as either may from time to time provide to the other.

         (d)      Binding Effect on Successors. This Warrant shall be binding
upon any corporation succeeding the Company by merger, consolidation or
acquisition of all or substantially all of the Company's assets. All of the
covenants and agreements of the Company shall inure to the benefit of the
permitted successors and assigns of the Holder hereof.

         (e)      Descriptive Headings and Governing Law. The descriptive
headings of the several sections and paragraphs of this Warrant are inserted for
convenience only and do not constitute a part of this Warrant. THIS WARRANT
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
DELAWARE APPLICABLE TO AGREEMENTS BETWEEN RESIDENTS OF DELAWARE WHOLLY EXECUTED
AND WHOLLY PERFORMED THEREIN.

         (f)      Lost Warrants. The Company represents and warrants to the
Holder hereof that upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction, or mutilation of this Warrant and, in
the case of any such loss, theft or destruction, upon receipt of an indemnity
reasonably satisfactory to the Company, or, in the case of any such mutilation,
upon surrender and cancellation of such Warrant, the Company, at its expense,
will make and deliver a new Warrant, of like tenor, in lieu of the lost, stolen,
destroyed or mutilated Warrant.

         (g)      Remedies. The Holder, in addition to being entitled to
exercise all rights granted by law, including recovery of damages, will be
entitled to specific performance of its rights under this Warrant. The Company
agrees that monetary damages would not be adequate compensation for any loss
incurred by reason of a breach by it of the provisions of this Warrant and
hereby agrees to waive the defense in any action for specific performance that a
remedy at law would be adequate. In any action or proceeding brought to enforce
any provision of this Warrant or where any provision hereof is validly asserted
as a defense, the successful party to such action or proceeding shall be
entitled to recover reasonable attorneys' fees in addition to any other
available remedy.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       7
<PAGE>

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

                                      COMPANY:

                                      DIGITAL LIFESTYLES GROUP, INC.

                                      By: /s/ Kent A. Savage
                                         --------------------------------------
                                          Name: Kent A. Savage
                                               --------------------------------
                                          Title: Chief Executive Officer
                                                 ------------------------------

ATTEST:

/s/ J. William Wilson
----------------------------------
Secretary

Accepted and Agreed to:

WESTECH CAPITAL CORPORATION

By:                                      Date:
   -------------------------------            --------------------
Name:
     -----------------------------
Title:
       ---------------------------

                                       8
<PAGE>

                                                                       EXHIBIT A

                              FORM OF SUBSCRIPTION

                                                       Date:  ____________, 200_
Digital Lifestyles Group, Inc.
1001 S. Capital of Texas Highway
Building I, Suite 210
Austin, Texas  78746

Attn: Chief Financial Officer

Ladies and Gentlemen:

__       The undersigned hereby elects to exercise the warrant issued to it by
         Digital Lifestyles Group, Inc. (the "COMPANY') and dated September 9,
         2004 (the "WARRANT") and to purchase thereunder _______ shares of the
         Common Stock of the Company (the "SHARES") at a purchase price of
         $0.475 per Share for an aggregate purchase price of
         ______________Dollars ($____ ) (the "EXERCISE PRICE"). Pursuant to the
         terms of the Warrant, the undersigned has delivered the Exercise Price
         herewith in full in cash or by certified check or wire transfer.

__       The undersigned hereby elects to convert ________________percent (___%)
         of the value of the Warrant pursuant to the Net Exercise provisions of
         Section 1(b) of the Warrant.

In connection with the exercise of the Warrant to purchase the number of shares
specified above, undersigned makes the following representations and covenants:

         1.       The undersigned is an "Accredited Investor," as such term is
defined in Rule 501(a) of Regulation D promulgated under the Securities Act of
1933, as amended (the "SECURITIES ACT").

         2.       The undersigned is purchasing the Shares for the undersigned's
own account, or for one or more investor accounts for which the undersigned is
acting as a fiduciary or agent, in each case for investment, and not with a view
to, or for offer or sale in connection with, any distribution thereof in
violation of the Securities Act.

         3.       The undersigned has had access to such financial and other
information concerning the Company and the Shares that the undersigned has
deemed necessary in connection with a decision to purchase the Shares, including
an opportunity to ask questions of and request information from the Company.

                                    Very truly yours,

                                    By:
                                       ----------------------------------------
                                    Name:
                                         --------------------------------------
                                    Title:
                                          -------------------------------------

                                       9
<PAGE>

                                    EXHIBIT B

                                 ASSIGNMENT FORM

               (To assign the foregoing Warrant, execute this form
                        and supply required information.
                  Do not use this form to exercise the Warrant)

         FOR VALUE RECEIVED, __________________________________________hereby
sells, assigns and transfers all of the rights of the undersigned under the
attached Warrant (No. 2004- _____) with respect to the number of shares of
Common Stock covered thereby set forth below, unto:

<TABLE>
<CAPTION>
Name of Assignee                             Address                               No. of Shares
<S>                                          <C>                                   <C>

</TABLE>

By:
   ----------------------------------------
     Name:
           --------------------------------
     Title:
            -------------------------------

Signature Guaranteed:

By:
    ---------------------------------------

The signature should be guaranteed by an eligible guarantor institution (banks,
stockbrokers, savings and loan associations and credit unions with membership in
an approved signature guarantee medallion program) pursuant to Rule 17Ad-15
under the Securities Exchange Act of 1934.

                                       10exv10w1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

     This Employment Agreement is entered into as of September 10, 2004 (the
“Effective Date”) by and between SciClone Pharmaceuticals, Inc. (the “Company”)
and Alfred R. Rudolph, M.D. (“Employee”).

     WHEREAS, the Company and Employee entered into an agreement regarding the
terms and conditions of employment in the form of an offer letter dated March
24, 1997 (the “Offer Letter”) which Employee agreed to and accepted.

     WHEREAS, the Company entered into a Change of Control Agreement with
Employee dated November 19, 1999 (the “Change of Control Agreement”) which
continues to remain in effect.

     WHEREAS, the Company now desires to provide Employee with certain
enhancements to his compensation package as well as other employment–related
benefits and hereby amends the Offer Letter as set forth herein.

     NOW, THEREFORE, in consideration of the promises and the terms and
conditions set forth in this Agreement, the parties agree as follows:

     1. Position and Duties. You will continue to be employed by the Company
as its Chief Operating Officer, reporting to the President and CEO. You agree
to continue your employment with the Company on the terms and conditions set
forth in this Agreement. Your duties will include, but not be limited to,
those duties normally performed by a COO, as well as any other reasonable
duties that may be assigned to you from time to time, which will include your
service in the Office of President along with Mr. Richard Waldron during the
period until the Company selects a new CEO.

     2. Term of Employment. Your employment with the Company will continue to
be on an at-will basis, and may be terminated by you or the Company at any
time, with or without cause, subject to the provisions of paragraphs 4 and 5
below as well as the terms set forth in the Change of Control Agreement.

     3. Compensation. You will be compensated by the Company for your services
as follows:

          a. Salary: Your current annual base salary of $258,000 will be increased
effective July 14, 2004 by $41,000, and your salary in the future will include
the “cost of living” adjustment such that your total salary will be $335,000
after this increase. All salary is less applicable withholding, payable in
accordance with the Company’s normal payroll procedures. Your salary will be
reviewed by the Company’s Board of Directors (the “Board”) from time to time
(but no more frequently than annually), and may be subject to adjustment. Any
adjustment to your salary shall be in the sole discretion of the Board.

1

 

          b. Bonus: In addition to the Management Bonus described in the Offer
Letter, you will be eligible to receive a bonus equal to $50,000.00, less
applicable withholding, payable in January 2005 for work performed in the
Office of the President provided you remain with the Company through January
15, 2005.

          c. Benefits: You will continue to participate in and to receive benefits
under the Company’s group benefit plans, as well as under the Company’s
business expense reimbursement and other policies. You will continue to accrue
paid vacation in accordance with the Company’s vacation policy.

          d. Stock Option: You will be granted an option to purchase 50,000 shares
of the Company’s common stock under the Company’s stock option plan at an
exercise price equal to the fair market value of that stock on the grant date.
Provided you remain employed by the Company, this option will vest monthly over
a two year period with that vesting beginning as of the date of the Board’s
approval of this option. Your option will be governed by and subject to the
terms and conditions of the Company’s standard form of stock option agreement
(which you will be required to sign in connection with the issuance of your
option).

     4. Voluntary Termination. The section of the Offer Letter entitled
“Termination” shall be superseded by the following as well as paragraph 5. In
the event that you voluntarily resign from your employment with the Company,
you will be entitled to no compensation or benefits from the Company other than
those earned under Paragraph 3 through the date of your termination; however,
in the event that your employment terminates as a result of your death or
disability (meaning that you are unable to perform your duties for any 90 days
in any one year period, with or without reasonable accommodation, as a result
of a physical and/or mental impairment), you will also be entitled to a pro
rata portion of the bonuses under Paragraph 3b You agree that if you
voluntarily terminate your employment with the Company for any reason, you will
provide the Company with 60 days’ written notice of your resignation. The
Company may, in its sole discretion, elect to waive all or any part of such
notice period and accept your resignation at an earlier date.

     5. Other Termination. Your employment may be terminated under the
circumstances set forth below. For purposes of this Agreement, the term
“Cause” shall have the meaning given to it in the Change of Control Agreement.
A copy of the Change of Control Agreement is attached for reference as Exhibit
A.

          a. Termination for Cause: If your employment is terminated by the Company
for Cause as such is defined in the Change of Control Agreement you shall be
entitled to no compensation or benefits from the Company other than those
earned under Paragraph 3 through the date of your termination for Cause.

          b. Termination Without Cause: If your employment is terminated by the
Company without Cause (and not as a result of your death or disability), and if
you sign a general release of known and unknown claims in a form satisfactory
to the Company,

               i. you will receive severance payments at your final base salary rate,
less applicable withholding, for the twelve (12) month period following the
date of your

2

 

termination without cause. Severance payments will be made in accordance
with the Company’s normal payroll procedures. In addition, you will also
receive (i) payment of the bonus referred to in Paragraph 3(b) if not already
paid and (ii) a pro-rated Management Bonus (as defined in the Offer Letter)
based on the previous year’s bonus. During the period in which you are
receiving severance payments and for an additional twelve (12) month period
thereafter, the Company will pay the premiums to continue your group health
insurance coverage under COBRA so long as you timely elect COBRA coverage.

               ii. if such termination occurs prior to July 14, 2006 you will receive
full vesting of any unvested portion of your options and the post termination
exercise period with respect to this option will be for the 18 month period
following your termination of employment without cause. Your options
(including the option referenced in Paragraph 3 of this Agreement) will be
amended effective as of the date hereof to provide for such provisions.

     6. Limitation of Payments and Benefits. To the extent that any of the
payments and benefits provided for in this Agreement or otherwise payable to
you constitute “parachute payments” within the meaning of Section 280G of the
Internal Revenue Code of 1986, as amended (the “Code”), and, but for this
Paragraph 6, would be subject to the excise tax imposed by Section 4999 of the
Code or any similar or successor provision, the aggregate amount of such
payments and benefits will not exceed the amount which produces the greatest
after-tax benefit to the Employee. For purposes of the foregoing, the greatest
after-tax benefit will be determined within thirty (30) days of the occurrence
of such payment to the Employee, in the Employee’s sole and absolute
discretion. If no such determination is made by the Employee within thirty
(30) days of the occurrence of such payment, the Company will promptly make
such determination in a fair and equitable manner.

     7. Confidential and Proprietary Information. You continue to be subject
to the terms and conditions of the Company’s standard form of employee
confidentiality and assignment of inventions agreement.

     8. Dispute Resolution. The section of the Offer Letter entitled “Dispute
Resolution” shall be superseded and the following shall be in its place. In
the event of any dispute or claim relating to or arising out of your employment
relationship with the Company, this agreement, or the termination of your
employment with the Company for any reason (including, but not limited to, any
claims of breach of contract, wrongful termination or age, sex, race, national
origin, disability or other discrimination or harassment), all such disputes
shall be fully, finally and exclusively resolved by binding arbitration
conducted by the American Arbitration Association (“AAA”) under the AAA’s
National Rules for the Resolution of Employment Disputes then in effect, which
are available online at the AAA’s website at www.adr.org or by requesting a
copy from the Human Resources Department. You and the Company hereby waive
your respective rights to have any such disputes or claims tried before a judge
or jury.

     9. Severability. If any provision of this Agreement is deemed invalid,
illegal or unenforceable, such provision shall be modified so as to make it
valid, legal and enforceable, and

3

 

the validity, legality and enforceability of the remaining provisions of
this Agreement shall not in any way be affected.

     10. Assignment. In view of the personal nature of the services to be
performed under this Agreement by you, you cannot assign or transfer any of
your obligations under this Agreement.

     11. Employee’s Successors. All rights of the Employee hereunder shall
inure to the benefit of, and be enforceable by, the Employee’s personal or
legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees.

     12. Entire Agreement. This Agreement and the agreements referred to above
constitute the entire agreement between you and the Company regarding the terms
and conditions of your employment, and they supersede all prior negotiations,
representations or agreements between you and the Company regarding your
employment, whether written or oral.

     13. Modification. This Agreement may only be modified or amended by a
supplemental written agreement signed by you and an authorized representative
of the Company.

4

 

     Please sign and date this letter on the spaces provided below to
acknowledge your acceptance of the terms of this Agreement.

	 	 	 	 	 	 	 
	 	 	 	Sincerely,
	

	 	 	 	 	 	 
	
	 	 	SciClone Pharamaceuticals, Inc.
	 
	

	 	 	By:	 	 	 
	

	 	 	 	

	

	 	 	 	Chairman of the Board
	Agreed to and Accepted:	 	 	 	 
	

	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 	 	
	 	 

	 	 	 	 	Alfred R. Rudolph

5

 

EXHIBIT A

SCICLONE PHARMACEUTICALS, INC.

CHANGE IN CONTROL AGREEMENT

     This
Change in Control Agreement (the “Agreement”) is effective as of
October        , 1999, by and between
             
              
      (the “Employee”) and
SciClone Pharmaceuticals, Inc., a Delaware corporation (the
“Company”).

RECITALS

          a. The
Employee presently serves
as                            of the
Company and performs significant strategic and management responsibilities
necessary to the continued conduct of the Company’s business and operations.

          b. The
Board of Directors of the Company (the “Board”) has determined that
it is in the best interests of the Company and its stockholders to assure that
the Company will have the continued dedication and objectivity of the Employee,
notwithstanding the possibility or occurrence of a Change in Control (as
defined below) of the Company.

          c. The Board believes that it is imperative to provide the Employee with
certain severance benefits upon the Employee’s termination of employment
following a Change in Control that will provide the Employee with enhanced
financial security and provide sufficient incentive and encouragement to the
Employee to remain with the Company following a Change in Control.

AGREEMENT

     The Employee and the Company agree as set forth below:

               i. Terms of Employment. The Company and the Employee agree that the
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 below. If the Employee’s employment
with the Company terminates for any reason following a Change in Control, but
on or before the first anniversary of the Change in Control, the Employee shall
not be entitled to any payments, benefits, damages, awards or compensation
other than as provided by this Agreement. During his or her employment with
the Company, the 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 the Employee’s
position that may be assigned to the Employee from time to time by the Company
or the Board.

               ii. Severance Benefits Upon Termination following a Change in Control.
Subject to the limitations set forth in Sections 3 and 4 below, if the
Employee’s employment with the Company terminates following a Change in Control
but on or before the first anniversary of such Change in Control, then the
Employee shall be entitled to receive, in addition to the compensation and
benefits earned by the Employee through the date of his or her termination,
severance benefits as follows:

6

 

                    (a) Involuntary Termination. If the Employee’s employment with the
Company is terminated as a result of Involuntary Termination, then the Employee
shall be entitled to receive the following severance benefits:

                         (i) The Employee shall be entitled to receive severance pay in an amount
equal to one hundred percent (100%) of his or her annual base salary as in
effect at the time of such termination. Any severance to which the Employee is
entitled pursuant to this section shall be paid in a lump sum, less applicable
withholding, within thirty (30) days following the Employee’s termination.

                         (ii) With respect to any unvested options to purchase shares of the stock
of the Company held by the Employee, the Employee shall immediately become
vested in full in such options at the time of such termination.

                         (iii) The Company shall, if permitted under the Company’s existing health
insurance plans, continue the Employee’s existing group health insurance
coverage. If not so permitted, the Company shall reimburse the Employee for
any COBRA premiums paid by the Employee for continued group health insurance
coverage. Such health insurance coverage or reimbursement of COBRA premiums
shall continue until the earlier of (1) twelve (12) months after the date of
the Employee’s Involuntary Termination or (2) the date on which the Employee
commences New Employment.

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

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

               iii. Release of Claims; Resignation. The Employee’s entitlement to any
severance pay or benefits under Section 2(a) is conditioned upon the Employee’s
execution and delivery to the Company of (a) a general release of known and
unknown claims in the form attached hereto as Exhibit A and (b) a resignation
from all of the Employee’s positions with the Company, including from the Board
of Directors and any committees thereof on which the Employee serves, in a form
satisfactory to the Company.

               iv. Parachute Payments. In the event that any payment or benefit received
or to be received by the Employee pursuant to this Agreement or otherwise
(collectively, the “Payments”) would result in a “parachute payment” as
described in section 280G of the Internal Revenue Code of 1986, as amended,
notwithstanding the other provisions of this Agreement, the amount of such
Payments will not exceed the amount which produces the greatest after-tax
benefit to the Employee. For purposes of the foregoing, the greatest after-tax
benefit will be determined within thirty (30) days of the occurrence of such
payment to the Employee, in the Employee’s sole and absolute discretion. If no
such

7

 

determination is made by the Employee within thirty (30) days of the
occurrence of such payment, the Company will promptly make such determination
in a fair and equitable manner.

               v. Consulting Services. During the twenty-four (24) months following any
Involuntary Termination for which the Employee receives the severance pay and
benefits described in Section 2(a), the Employee shall be retained by the
Company as an independent contractor to provide consulting services to the
Company at its request for up to eight (8) hours per week. These services
shall include any reasonable requests for information or assistance by the
Company, including, but not limited to, the transition of the Employee’s
duties. Such services shall be provided at mutually convenient times. For the
actual provision of such services, the Company shall pay to the Employee a
consulting fee of $1,000 per day, plus reasonable out-of-pocket expenses (for
example, travel and lodging).

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

                    (a) “Cause” shall mean any of the following:

                         (i) the Employee’s theft, dishonesty, misconduct or falsification of any
records of the Company, its successor, or any subsidiary of the Company or its
successor (collectively, the “Company Group”);

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

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

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

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

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

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

8

 

                    (c) “Constructive Termination” shall mean any one or more of the
following:

                         (i) without the Employee’s express written consent, the assignment to the
Employee, following the Change in Control, of any title or duties, or any
limitation of the Employee’s responsibilities, that are substantially
inconsistent with the Employee’s title(s), duties, or responsibilities with the
Company Group immediately prior to the date of the Change in Control
(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 the Employee’s express written consent, the relocation of the
principal place of the Employee’s employment, following the Change in Control,
to a location that is more than fifty (50) miles from the Employee’s principal
place of employment immediately prior to the date of the Change in Control, or
the imposition of travel requirements substantially more demanding of the
Employee than such travel requirements existing immediately prior to the date
of the Change in Control;

                         (iii) any failure by the Company Group, following the Change in Control,
to pay, or any material reduction by the Company Group of, (1) the Employee’s
base salary in effect immediately prior to the date of the Change in Control,
or (2) the Employee’s bonus compensation, if any, in effect immediately prior
to the date of the Change in Control (subject to applicable performance
requirements with respect to the actual amount of bonus compensation earned by
the Employee), unless base salary and/or bonus reductions comparable in amount
and duration are concurrently made for a majority of the other employees of the
Company Group who have substantially similar titles and responsibilities as the
Employee; and

                         (iv) any failure by the Company Group, following the Change in Control, to
(1) continue to provide the Employee with the opportunity to participate, on
terms no less favorable than those in effect for the benefit of any employee
group which customarily includes a person holding the employment position or a
comparable position with the Company Group then held by the Employee, in any
benefit or compensation plans and programs, including, but not limited to, the
Company Group’s life, disability, health, dental, medical, savings, profit
sharing, stock purchase and retirement plans, if any, in which the Employee was
participating immediately prior to the date of the Change in Control, or in
substantially similar plans or programs, or (2) provide the Employee with all
other fringe benefits (or substantially similar benefits), including, but not
limited to, relocation benefits, provided to any employee group which
customarily includes a person holding the employment position or a comparable
position with the Company Group then held by the Employee, which the Employee
was receiving immediately prior to the date of the Change in Control.

     However, the foregoing conditions shall not constitute a Constructive
Termination unless the Employee has given written notice of any such
condition(s) to the Chairman of the Board and allowed the Company Group at
least twenty (20) days thereafter to correct such condition(s). If such
condition(s) are not corrected within that twenty (20) day period, the Employee
may give written notice of his Constructive Termination to the Board, which
shall be an Involuntary Termination.

9

 

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

                    (e) “Involuntary Termination” shall mean the occurrence of either of the
following events after a Change in Control, but on or before the first
anniversary of such Change in Control:

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

                         (ii) the Employee’s Constructive Termination.

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

                    (f) “New Employment” shall mean any employment obtained by the Employee
after the termination of the Employee’s employment with the Company.

               vii. Nonsolicitation. During his or her employment with the Company, and
for a period of one (1) year following the termination of his or her employment
for any reason, the Employee shall not directly or indirectly recruit, solicit,
or induce any person who on the date hereof is, or who subsequently becomes, an
employee, sales representative or consultant of the Company, to terminate his
or her relationship with the Company.

               viii. Successors.

                    (a) Company’s Successors. Any successor to the Company or to all or
substantially all of the Company’s business and/or assets shall be bound by
this Agreement in the same manner and to the same extent as the Company. For
all purposes under this Agreement, the term “Company” shall include any
successor to the Company’s business and/or assets.

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

10

 

               ix. Notice.

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

                    (b) Notice of Termination. Any termination by the Company Group or the
Employee of their employment relationship shall be communicated by a written
notice of termination to the other party.

               x. Miscellaneous Provisions.

                    (a) No Duty to Mitigate. The Employee shall not be required to mitigate
the amount of any payment contemplated by this Agreement (whether by seeking
New Employment or in any other manner), nor shall any such payment be reduced
by any earnings that the Employee may receive from any other source.

                    (b) Waiver. No provision of this Agreement shall be modified, waived or
discharged unless the modification, waiver or discharge is agreed to in writing
and signed by the Employee and by an authorized officer of the Company (other
than the Employee). No waiver by either party of any breach of, or of
compliance with, any condition or provision of this Agreement by the other
party shall be considered a waiver of any other condition or provision or of
the same condition or provision at another time.

                    (c) Choice of Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of
California.

                    (d) Severability. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of
any other provision hereof, which shall remain in full force and effect.

                    (e) Arbitration. In the event of any dispute or claim relating to or
arising out of the Employee’s employment relationship with the Company, this
Agreement, or the termination of the 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), the 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 Santa Clara
County, California. Judgment upon any decision or award rendered by the
arbitrator may be entered in any court having jurisdiction over the matter.
The Employee and the Company knowingly and willingly waive their respective
rights to have any such disputes or claims tried to a judge or jury.

11

 

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

     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:	 	 
	

	 	 	 	

	 
	 	 	 	 
	 	 	EMPLOYEE
	 
	 	 	 	 
	 	 	

12

 

Exhibit A

RELEASE

     In exchange for the severance pay and benefits described in the Change in
Control Agreement between SciClone Pharmaceuticals, Inc. (the “Company”) and me
of [date], I hereby release the Company, its parents and subsidiaries, and
their officers, directors, employees, attorneys, shareholders, 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
favor at the time of executing the release, which if known by him must have
materially affected his 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.

     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.

13

 

	 	 	 	 	 	 	 
	Date:

	 	 	 	EMPLOYEE
	 	 	
	 	 

	 
	 	 	 	 	 	 
	 	 	 	 	SCICLONE PHARMACEUTICALS, INC.
	 
	 	 	 	 	 	 
	Date:

	 	 	 	By:	 	 
	

	 	
	 	 	 	

	 
	 	 	 	 	 	 
	

	 	 	 	Its:	 	 
	

	 	 
	 	 	 	

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]