Document:

EX-10.21

 Exhibit 10.21 

Employment Contract 
 Party A: Zai Lab
(Shanghai) Co., Ltd. 
 Registered Address: No.65, Lane 1000, Zhangheng Road, Zhangjiang Hi-tech Park, Pudong New
Area, Shanghai 
 Legal Representative: Ying Du 
 Party B: Qi
Liu 
 Residential Address: # ######## ######, #### #######, ## ##### 

Nationality: United States 
 ID (Passport) Number: #########

 Party A, as a wholly foreign owned enterprise, hereby engages Party B as its employee by entering into an employment contract. 

Based on the principles of equality, free will and good faith, in accordance with the Labor Law of the People’s Republic of China, the Labor
Contract Law of the People’s Republic of China and other applicable laws, regulations and rules, after Party A has truthfully notified Party B of the related information involved in the employment contract, Party A and Party B have entered
into this Employment Contract (the “Contract”) with respect to the establishment of an employment relationship between the Parties, the rights and obligations of the Parties and other relevant matters. Both Parties commit to be
bound by the terms and conditions of this Contract. 
 Section 1. Conditions Precedent to the Contract 

 

			
	 Article 1.1
	  	Party A and Party B are parties to this Contract.
		
	 Article 1.2
	  	Party A is an employer legally registered in the People’s Republic of China and is qualified to hire employees.
		
	 Article 1.3
	  	Party B warrants to Party A that: when Party B executes this Contract, Party B is not in any labor or employment relationship with any third party or is subject to any non-compete period restriction. Party B further warrants that
there exists no issue with any third party that may affect the effectiveness or the performance of this Contract.
		
	 Article 1.4
	  	Party B warrants that after Party B is employed by Party A, Party B’s engagement in any work assigned by Party A will not infringe trade secrets or other legal interests of any third party; otherwise, Party B will be solely
liable for such infringement.

 Section 2. Term of Labor Contract 

 

			
	 Article 2.1
	  	The term of this Contract shall be three (3) years (the “Term”). This Contract shall be effective as of November 1, 2015 (the “Effective Date”) and shall expire on
October 31, 2018. The first six (6) months of Term shall be the probationary period (the “Probationary Period”).
		
	 Article 2.2
	  	In the event Party B fails to meet relevant recruitment requirements during the Probationary Period, Party A may terminate this Contract.

			
		
	 Article 2.3
	  	Party A shall timely review the performance of Party B prior to the expiration of the Probationary Period. If Party B fails to pass the performance review, Party A shall be entitled to terminate this Contract.
		
	 Article 2.4
	  	This Contract shall be terminated upon expiration of the Term. This Contract may be renewable upon mutual agreement of the Parties.
		
	 Article 2.5
	  	If the commencement date of this Contract is inconsistent with the commencement date of the actual work, the employment relationship between Party A and Party B shall commence from the commencement date of the actual work, and
the Term of this Contract and the Probationary Period shall also start from the commencement date of the actual work.

 Section 3. Scope and Location of Work 

 

			
	 Article 3.1
	  	Party A hereby appoints Party B as the Chief Medical Officer based on its operational conditions. The specific job descriptions will be provided by Party A separately.
		
	 Article 3.2
	  	The working place of Party B shall be in Shanghai (City). Party A may designate Party B to work in other cities as its business scope expands.
		
	 Article 3.3
	  	Party A may lawfully and reasonably adjust the position and working place of Party B, taking in to account Party A’s needs of work and Party’s profession, expertise, capability, performance and health conditions as well
as other factors.
		
	 Article 3.4
	  	Party B shall complete the work in accordance with the scope, requirements and targets as arranged by Party A and shall meet the requirements on quality, quantity and time limit.

 Section 4. Labor Protection, Labor Conditions and Occupational Hazard Protection 

 

			
	 Article 4.1
	  	Party A shall provide Party B with a work environment in compliance with the national regulations on safety and health so as to ensure the personal safety of Party B and to protect Party B from any physical injury at
work.
		
	 Article 4.2
	  	Party A shall provide Party B with necessary labour protection materials based on the actual needs of Party B’s position in accordance with the applicable national regulations. Party B shall enhance his sense of
self-protection and strictly follow the procedures of safe operation.
		
	 Article 4.3
	  	Party A shall adopt occupational hazard protection measures in an active manner in accordance with the applicable national and local regulations so as to ensure the personal safety of Party B and to protect Party B from any
physical injury.
		
	 Article 4.4
	  	Party A shall conduct regular health check as well as labour safety and health education for its employees in accordance with the applicable regulations. Party B shall accept the special trainings on labour safety and labour
protection organized by Party A and shall strictly implement the labour safety system, specifications for operation and such other labour disciplines formulated by Party A, and shall use the labour protection materials in a safe and standardized
manner.

  
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 Section 5. Remuneration 

 

			
	 Article 5.1
	  	Party A shall determine its salary system and the salary amounts taking into account its business operation status, profitability as well as relevant internal policies.
		
	 Article 5.2
	  	Party B shall be entitled to remuneration upon his normal attendance for work and completion of his work assignment by Party A within the specified working time which has met both quality and quantity standards. The amount of
monthly salary of Party B is provided in the offer letter or the remuneration adjustment notice. Such monthly salary has included all the allowances and subsidies provided in the national or local regulations.
		
	 Article 5.3
	  	Party A shall pay to Party B a monthly salary on the last day of each month in a way in accordance with its policies.
		
	 Article 5.4
	  	Party B shall pay individual income tax in accordance with law, which shall be withheld and remitted by Party A and deducted from the monthly salary and year-end bonus payable to Party
B.
		
	 Article 5.5
	  	Party A may make reasonable adjustments to the remuneration to Party B on the basis of the business operation status of Party A, the national price index, as well as the professional ability, performance, change in position and
location of Party B and other factors. Party B is willing to accept and follow the decisions of Party A.

 Section 6. Working Hours, Holidays and Leave 

 

			
	 Article 6.1
	  	The normal working hours of Party B shall be from 9 a.m. to 6 p.m. (including one (1) hour’s lunch time) from Monday to Friday.
		
		  	☐ Both Parties acknowledge that the fixed working hour system will apply to Party B. Party B fully understands that Party A may change the work shifts and working hours or extend the working hours of Party B or request
Party B to work on holidays from time to time upon consultation with Party B, taking into consideration the specific job of Party B and the business needs of Party A. Party B agrees to the changes in the work shifts, extension of working hours or
working overtime during holidays as requested by Party A in accordance with the working hour system of Party A. For any overtime work requested or approved by Party A, Party A shall provide compensation leave or remuneration to Party B in accordance
with law. Party B shall not work overtime without prior approval of his supervisor. Party B is not entitled to any overtime-related benefits (such as overtime pay or deferred holidays) for any overtime work that is neither requested nor approved in
advance by Party A.
		
		  	☑ Both Parties acknowledge that the flexible working hour system will apply to Party B. The salaries of Party B shall be the full compensation for his work—Party B will not be entitled to any
overtime payment for extension of working hours during working days or working on holidays (non-national holidays).
		
		  	☐ Party B understands that Party A has been granted / is applying for / will apply for the approval for flexible working hour system. If Party A obtains such approval, and if requested by Party A, Party B agrees to switch
to the flexible working hour system and sign any document to effectuate such change.

  
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		  	Both Parties acknowledge that if the Parties agree upon mutual consultation on an adjustment of the duties of Party B, the working hour system applied to Party B may be adjusted accordingly.
		
	 Article 6.2
	  	Party B shall be entitled to all national holidays and other holidays prescribed by the internal policies of Party A.

 Section 7. Social Insurances and Benefits 

 

			
	 Article 7.1
	  	Party B shall be entitled to benefits for illness or non-work related injury in accordance with the applicable laws, regulations and relevant provisions.
		
	 Article 7.2
	  	Party B shall be entitled to benefits for work-related injury, and pregnancy, maternity leave and nursing leave of the female employee in accordance with the applicable laws, regulations and relevant provisions.
		
	 Article 7.3
	  	Party A shall contribute social insurance for Party B in accordance with PRC regulations, and may establish supplementary medical insurance and accident insurance accounts for Party B based on the actual situation of Party A.
Party B is also required to contribute his portion of the amount into his social insurance account, and Party A shall withhold and deduct such amount from the salary payable to Party B. Party B guarantees that Party B will submit valid personal
information certificates required by Party A for contribute social insurance. Party B shall be liable for any consequence resulting from any delay in submitting these certificates to Party A.
		
	 Article 7.4
	  	Party A may adjust the benefits entitled by Party B based on Party A’s business operation status, profitability and other factors.

 Section 8. Labor Discipline, Rewards and Punishments 

 

			
	 Article 8.1
	  	Party A will develop or amend internal rules and policies which are in compliance with the laws and regulations and necessary for its business development. Party A shall be responsible for supervising the daily activities of
Party B and ensure his or her compliance with the labor disciplines in accordance with relevant rules and policies.
		
	 Article 8.2
	  	Party B must abide by PRC laws, rules and regulations as well as the internal rules and policies of Party A, otherwise Party A has the right to impose punishment on Party B in accordance with its internal rules and
policies.
		
	 Article 8.3
	  	Party B shall carefully read the contents of each rule or policy publicly released by Party A in order to be timely informed of all information about Party A. Party B shall be solely liable for any consequence arising from the
failure of Party B to be timely informed of the aforesaid information.
		
	 Article 8.4
	  	During the Term of this Contract, Party A may amend its employee handbook and other rules and policies, or develop new rules and policies. If there is any inconsistency between the original policies and the new policies, Party B
agrees to implement the new policies.

  
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	 Article 8.5
	  	Party B shall properly keep the assets of Party A and shall return the assets to Party A when leaving his or her position for any reason. Party B shall compensate Party A if Party B negligently loses any asset or intentionally
damages any assets.
		
	 Article 8.6
	  	Party A will, on a case-by-case basis, provide moral incentives and material rewards for employees who set a good example for complying with its
rules and policies as well as employees who perform excellent work.
		
	 Article 8.7
	  	Party A will, on a case-by-case basis, impose punishments on employees who violate the rules, policies and labor disciplines of Party A, varying from
oral or written warnings and disciplinary punishment to termination of employment.

 Section 9. Confidentiality, Ownership of Intellectual Property and
Non-Compete 
  

			
	 Article 9.1
	  	Party A and Party B acknowledge that Party B will inevitably have access to the trade secrets and IP-related confidential information of Party A during the performance of work duties by
Party B. Party A has ownership and proprietary right over such information, and Party B is obligated to keep such information in confidence.
		
	 Article 9.2
	  	Party B must comply with any rules and policies of Party A regarding confidentiality, and be subject to the confidentiality obligations applicable to his position. Without obtaining written consent of Party A or if Party B is not
performing his obligations and duties hereunder, Party B may not disclose any trade secrets of Party A to any third party, including other employees of Party A who are considered unfit to have access to such secrets.
		
	 Article 9.3
	  	Party B shall be obligated to protect the capital, reputation, technologies and trade secrets of Party A. Party B shall be liable to recover losses and provide compensation in accordance with the applicable laws as well as the
internal rules and policies of Party A for any losses actually suffered by Party A due to any intentional or negligent act of Party B.
		
	 Article 9.4
	  	During the Term, Party B shall not engage in any conduct or commercial activity that is conflicting with the interests of Party A or competes with the business of Party A, including, but not limited to, working for any entity
that competes with Party A, establishing any entity that competes with Party A or operate any related business. If Party B is found to be in violation with the foregoing, Party A shall have the right to take corresponding actions in accordance with
its internal rules.
		
	 Article 9.5
	  	Party A will set aside training fees and provide professional training to Party B. In the event that Party A and Party B agree on the service period and relevant liquidated damages, if Party B unilaterally leaves the position
before expiration of the service period or is terminated by Party A due to reasons attributable to Party B within the service period, Party B shall be liable to make compensation in accordance with the applicable laws and the internal rules of Party
A.
		
	 Article 9.6
	  	If Party B is appointed as a member of the senior management or technical or professional staff of Party A and obtains the business process, technologies or trade secrets of Party A, no matter how this Contract is rescinded or
terminated, Party B shall not, without obtaining written consent of Party A, work for any entity or individual that competes with Party A, or manufacture any product or operate any business that competes with Party A by himself within a specified
period of time. Party B hereby agrees that Party A shall have the sole discretion as to whether Party B shall perform such non-compete obligation.

  
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 Section 10. Termination and Renewal of the Employment Contract 

 

			
	 Article 10.1
	  	Upon the occurrence of any of the circumstances set forth below, Party A shall be entitled to terminate this Contract after giving Party B a 30 days prior written notice (or paying to Party B an additional month of basic salary
in lieu of the 30 days prior written notice) and providing Party B with a statutory severance.
		
		  	 1.     Party B suffers an illness or a
non-work-related injury and, after the statutory medical treatment period, is unable to undertake the original work or other work arranged by Party A;

		
		  	 2.     Party B is incompetent to do the job, and still fails to be
competent for the job after being trained or after his position is changed;

		
		  	 3.     There is a significant change to the objective circumstances on
which this Contract is based, resulting in the failure to perform this Contract, and after the consultations by both Parties, no agreement can be reached in respect of the modification of the content of this Contract;

		
		  	 4.     Party A needs to lay off employees because Party A is undergoing a
legally required bankruptcy restructuring or because Party A is experiencing serious difficulties in production or operation (in which case the employer must follow appropriate legal procedures to terminate employees); or

		
		  	 5.     Other circumstances provided by PRC laws or
regulations.

		
	 Article 10.2
	  	Upon the occurrence of any of the circumstances set forth below, Party A may not terminate this Contract according to Article 10.1 hereof:
		
		  	 1.     Party B has been engaged in work exposing him to occupational
disease hazards and has not received any occupational health check before leaving the position, or is receiving diagnosis or medical observation for suspected occupational diseases;

		
		  	 2.     Party B has been confirmed as having lost or partially lost the
ability to work due to an occupational disease or a work-related injury;

		
		  	 3.     Party B is receiving medical treatment during the statutory medical
treatment period due to illness or non-work-related injury;

		
		  	 4.     Party B is in pregnancy, perinatal or nursing period;
or

		
		  	 5.     Other circumstances provided by PRC laws or
regulations.

  
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	 Article 10.3
	  	Upon the occurrence of any of the circumstances set forth below, Party A shall be entitled to terminate this Contract immediately without prior notice, which will not give rise to a liability to pay severance or perform other
obligations on the part of Party A:
		
		  	 1.     Party B seriously, repeatedly or continuously violates the labor
discipline and policies of Party A, including without limitation: (i) the employee handbook; (ii) confidentiality obligations of Party B, exclusive employment provisions, the obligation to maintain the qualification required for the job,
safe production and hygiene regulations, other terms of this Contract and/or other policies and procedures implemented by Party A from time to time.

		
		  	 2.     Party B commits serious dereliction in the performance of his
duties, or engages in malpractice to seek private benefits, causing severe damage to the interests of Party A;

		
		  	 3.     This Contract is invalidated because Party B commits fraud or uses
coercive measures or takes advantage of Party A’s vulnerability to make Party A enter into or amend this Contract against Party A’s will;

		
		  	 4.     Party B is prosecuted for criminal liability, or is subject to
reeducation through labor in accordance with law;

		
		  	 5.     Other circumstances under which PRC laws or regulations specify that
Party A may immediately terminate the employment relationship with Party B.

		
	 Article 10.4
	  	Party B may terminate this Contract at any time by serving a thirty (30)-day prior written notice to Party A. If Party B requests to terminate this Contract without serving a 30-day prior written notice, Party A shall be entitled to reject this request. Subject to approval of Party A, the resignation of Party B may take effect from the date when Party A receives the resignation
request.
		
	 Article 10.5
	  	If Party A compels Party B to work by using violence, threatening Party B or illegally restricting the freedoms of Party B, or gives illegal commands or forces Party B to work under risky circumstances which may expose Party B to
physical hazards, Party B shall be entitled to terminate this Contract immediately without serving a prior notice to Party A.
		
	 Article 10.6
	  	If Party B does not meet Party A’s recruitment criteria during the Probationary Period, Party A shall be entitled to terminate this Contract immediately without paying severance or performing other obligations, provided that
Party A shall provide to Party B the reasons for termination. Party B shall be entitled to terminate this Contract by delivering a three (3)-day prior written notice to Party A during the Probationary
Period.
		
	 Article 10.7
	  	This Contract may be terminated upon mutual agreement by both Parties.
		
	 Article 10.8
	  	Upon the occurrence of any of the circumstances set forth below, this Contract shall be automatically terminated unless otherwise provided by PRC laws or regulations:
		
		  	 1.     The Term of this Contract has expired and the Parties do not renew
this Contract;

		
		  	 2.     Party B reaches the statutory retirement age or starts to enjoy
basic pension in accordance with law, is dead or has been declared dead or missing by any competent court;

  
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		  	 3.     Party B fails to obtain or retain the necessary work permit and visa
required under the PRC law in respect of the employment relationship hereunder (this only applies to employees with non-mainland Chinese nationality);

		
		  	 4.     Party A ceases operation or dissolves;

		
		  	 5.     Party A has been declared bankrupt, has its business license
revoked, or has been ordered to close in accordance with law; or

		
		  	 6.     Other circumstances agreed by the Parties or provided by PRC laws or
regulations.

		
	 Article 10.9
	  	If Party B is subject to any disciplinary or legal investigation, Party A shall have right to suspend Party B’s duties, provided that Party A shall pay to Party B appropriate salaries or allowances in accordance with
relevant PRC laws and regulations. If Party B is proven to have violated any discipline or law, Party A shall have right to terminate this Contract in accordance with Section 8 hereof.
		
	 Article 10.10
	  	Party A may require Party B to stop working and/or stop performing his duties during the notice period (regardless whether the termination notice is made by Party A or Party B), provide that Party A shall pay to Party B basic
salaries for the notice period.
		
	 Article 10.11
	  	If Party B ceases to work for Party A, Party B agrees that Party A may notify Party B’s new employer any ongoing obligations Party B remains subject to under this Contract.
		
	 Article 10.12
	  	After the Contract is terminated or rescinded,
		
		  	 1.     Upon the request of Party A, Party B shall promptly return to Party
A all the assets of Party A (including the assets which shall be returned in accordance with the employee handbook). Party B acknowledges and agrees that Party A shall be entitled to withhold the last salaries and/or any other payment payable to
Party B or offset the cost of such assets from such last salaries and/or any other payment if Party B fails to perform the foregoing obligations.

		
		  	 2.     Party B shall complete the termination procedures in accordance with
the laws applicable to non-Chinese employees working in China (this only applies to employees with non-mainland Chinese nationality);

		
		  	 3.     Party B shall continue to be bound by the Zai Lab Trade Secrets
Confidentiality Agreement.

 Section 11. Breaches and Damages 

 

			
	 Article 11.1
	  	Either Party shall compensate the other Party if the other Party suffers economic losses due to its breach of this Contract.
		
	 Article 11.2
	  	During the Term of this Contract, if Party B receives paid training from Party A, or agrees to be subject to non-compete restrictions, such matters shall be handled in accordance with the
agreements between the Parties.

  
 8 

			
	 Article 11.3
	  	If Party B misappropriates Party A’s assets and cause damages to Party A, Party B shall return such assets and compensate Party A for its losses therefrom. If Party B obtains from Party A any interest which cannot be
justified by any law or contract, Party B shall return such unjust enrichment to Party A.

 Section 12. Labor Dispute 

 

			
	 Article 12.1
	  	The labor dispute resolution procedures shall apply to any dispute arising from the performance of this Contract by the Parties.
		
	 Article 12.2
	  	The labor dispute resolution procedures shall be as follows:
		
		  	 1.     Party A and Party B resolve the dispute through consultation and
negotiation;

		
		  	 2.     If the dispute cannot be resolved though consultation and
negotiation, one or both Parties in dispute submit the dispute to the labor dispute arbitration committee for arbitration;

		
		  	 3.     Either Party that disagrees to the arbitration award may file a
lawsuit within fifteen days following the receipt of the labor arbitration award to the people’s court having jurisdiction over the place where Party A locates.

 Section 13. Miscellaneous 

 

			
	 Article 13.1
	  	This Contract is executed in two copies with each Party holding one copy. This Contract shall become effective when signed or sealed by both Parties and both copies shall be equally effective.
		
	 Article 13.2
	  	Any matter not specified herein shall be handled in accordance with the other agreements by the Parties. If there is no agreement between the Parties, such matters shall be handed in accordance with the applicable laws,
regulations and rules. If there is no applicable law, regulation or rule, the Parties shall enter into a supplemental agreement to this Contract based on the principles of equality, free will and good faith.
		
	 Article 13.3
	  	In the event one or more provisions herein are inconsistent with the currently effective laws, regulations or rules, the applicable laws, regulations or rules shall prevail. If any applicable law, regulation or rule is amended,
the most updated and effective one shall prevail. The validity, legality and enforceability of the other provisions herein shall not be affected by such invalid provisions.

  
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 Party B acknowledges and confirms that: 

I have carefully read and fully understood the contents of this Contract at the time of execution of this Contract. I have been fully informed of the contents,
conditions, places, occupational hazards, safety operation conditions and remunerations of the work, as well as the policies of Party A, including without limitation the employee handbook. I will strictly comply with these policies and perform the
obligations therein. 
  

			
	Party A:	 	Party B:
		
	Zai Lab (Shanghai) Co., Ltd.	 	Qi Liu
		
	Signature (Seal):	 	Signature:
		
	[Seal of Zai Lab (Shanghai) Co., Ltd.]	 	/s/ Qi Liu

  
 10EX-10.22

 Exhibit 10.22 

ZAI LAB LIMITED 
 2017
EQUITY INCENTIVE PLAN 
 1. DEFINED TERMS 

The following terms, when used in the Plan (as defined below), have the meanings and are subject to the provisions set forth below: 

(a) “Accounting Rules”: Financial Accounting Standards Board Accounting Standards Codification Topic 718, or any
successor provision. 
 (b) “Administrator”: The Compensation Committee, except with respect to such matters that
are not delegated to the Compensation Committee by the Board (whether pursuant to committee charter or otherwise). The Compensation Committee (or the Board, with respect to such matters over which it retains authority under the Plan or otherwise)
may delegate (i) to one or more of its members (or one or more other members of the Board, including the full Board) such of its duties, powers and responsibilities as it may determine; (ii) to one or more officers of the Company the power
to grant Awards; and (iii) to such Employees or other persons as it determines such ministerial tasks as it deems appropriate, in each case, to the extent permitted by Applicable Laws. For purposes of the Plan, the term
“Administrator” will include the Board, the Compensation Committee, and the person or persons delegated authority under the Plan to the extent of such delegation, as applicable. 

(c) “ADS”: An American Depository Share representing Ordinary Shares on deposit with a U.S. banking institution
selected by the Company and which are registered pursuant to a Form F-1. 
 (d)
“Applicable Laws”: means the legal requirements relating to the Plan and the Awards under applicable provisions of the corporate, securities, tax and other laws, rules, regulations and government orders, and the rules of any
applicable stock exchange or national market system, of any jurisdiction applicable to Awards. 
 (e) “Award”: Any
or a combination of the following: 
 (1) Share Options. 

(2) SARs. 
 (3)
Restricted Shares. 
 (4) Unrestricted Shares. 

(5) Share Units, including Restricted Share Units. 

(6) Performance Awards. 

(7) Awards (other than Awards described in (1) through (6) above) that are convertible into or otherwise based on Shares. 

 (f) “Board”: The Board of Directors of the Company. 

(g) “Cause”: In the case of any Participant who is party to an employment or severance-benefit agreement with the
Company or any of its affiliates that contains a definition of “Cause,” the definition set forth in such agreement applies with respect to such Participant for purposes of the Plan for so long as such agreement is in effect. In every other
case, “Cause” means, as determined by the Administrator, (i) a substantial failure of the Participant to perform the Participant’s duties and responsibilities to the Company or any of its affiliates or substantial negligence in
the performance of such duties and responsibilities; (ii) the commission by the Participant of a felony (or similar crime) or a crime involving moral turpitude; (iii) the commission by the Participant of theft, fraud, embezzlement,
material breach of trust or any material act of dishonesty involving the Company or any of its affiliates; (iv) a significant violation by the Participant of the code of conduct of the Company or any of its affiliates of any material policy of
the Company or any of its affiliates, or of any statutory or common law duty of loyalty to the Company or any of its subsidiaries; (v) material breach of any of the terms of the Plan or any Award made under the Plan, or of the terms of any
other agreement between the Company or any of its affiliates and the Participant; or (vi) other conduct by the Participant that could be expected to be harmful to the business, interests or reputation of the Company or any of its affiliates.

 (h) “Code”: The U.S. Internal Revenue Code of 1986, as from time to time amended and in effect, or any successor
statute as from time to time in effect. 
 (i) “Compensation Committee”: The Compensation Committee of the Board.

 (j) “Company”: Zai Lab Limited, a company with limited liability under the Companies Law, Cap 22 (Law 3 of
1961, as consolidated and revised) of the Cayman Islands. 
 (k) “Covered Transaction”: Following the Trading Date,
any of (i) a consolidation, merger or similar transaction or series of related transactions, including a sale or other disposition of Shares, in which the Company is not the surviving corporation or which results in the acquisition of all or
substantially all of the Company’s then-outstanding Shares by a single person or entity or by a group of persons and/or entities acting in concert; (ii) a sale or transfer of all or substantially all the Company’s assets; or
(iii) a dissolution or liquidation of the Company. 
 (l) “Date of Adoption”: The earlier of the date the Plan
was approved by the Company’s shareholders or adopted by the Board, as determined by the Administrator. 
 (m)
“Director”: A member of the Board who is not an Employee. 
 (n) “Employee”: Any person who is
employed by the Company or any of its affiliates. 
 (o) “Employment”: A Participant’s employment or other
service relationship with the Company or any of its affiliates. Employment will be deemed to continue, unless the Administrator otherwise determines at the time of grant of an Award or thereafter, so long as the Participant is employed by, or
otherwise is providing services in a capacity described in Section 5 to, the Company or any of its affiliates. If a Participant’s employment or other service 

  
 -2- 

 
relationship is with any affiliate of the Company and that entity ceases to be an affiliate of the Company, the Participant’s Employment will be deemed to have terminated when the entity
ceases to be an affiliate of the Company unless the Participant transfers Employment to the Company or any of its remaining affiliates. Notwithstanding the foregoing, in construing the provisions of any Award relating to the payment of
“nonqualified deferred compensation” (subject to Section 409A) upon a termination or cessation of Employment, references to termination or cessation of employment, separation from service, retirement or similar or correlative terms
will be construed to require a “separation from service” (as that term is defined in Section 1.409A-1(h) of the Treasury Regulations) from the Company and from all other corporations and trades
or businesses, if any, that would be treated as a single “service recipient” with the Company under Section 1.409A-1(h)(3) of the Treasury Regulations. The Company may, but need not, elect in
writing, subject to the applicable limitations under Section 409A, any of the special elective rules prescribed in Section 1.409A-1(h) of the Treasury Regulations for purposes of determining whether
a “separation from service” has occurred. Any such written election will be deemed a part of the Plan. 
 (p) “Fair
Market Value”: As of a particular date, (i) the closing price for a Share or ADS reported on the Nasdaq Stock Market (or any other national securities exchange on which the Share or ADS, as applicable, is then listed) for that date or,
if no closing price is reported for that date, the closing price on the immediately preceding date on which a closing price was reported or (ii) in the event that no Share or ADS is traded on a national securities exchange, the fair market
value of a Share determined by the Administrator consistent with the rules of Section 422 and Section 409A to the extent applicable. 

(q) “ISO”: A Share Option intended to be an “incentive stock option” within the meaning of Section 422.
Each Share Option granted pursuant to the Plan will be treated as providing by its terms that it is to be an NSO unless, as of the date of grant, it is expressly designated as an ISO. 

(r) “NSO”: A Share Option that is not intended to be an “incentive stock option” within the meaning of
Section 422. 
 (s) “Ordinary Share”: means a share of common stock of the Company, par value $0.00006 per
share. 
 (t) “Participant”: A person who is granted an Award under the Plan. 

(u) “Performance Award”: An Award subject to Performance Criteria. The Administrator may grant Performance Awards that
are intended to qualify for the performance-based compensation exception under Section 162(m) and Performance Awards that are not intended to so qualify. 

(v) “Performance Criteria”: Specified criteria, other than the mere continuation of Employment or the mere passage of
time, the satisfaction of which is a condition for the grant, exercisability, vesting or full enjoyment of an Award. A Performance Criterion and any targets with respect thereto need not be based upon an increase, a positive or improved result or
avoidance of loss. For purposes of Awards that are intended to qualify for the performance-based 

  
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compensation exception under Section 162(m), a Performance Criterion will mean an objectively determinable measure or objectively determinable measures of performance relating to any, or any
combination of, the following (measured either absolutely or comparatively (including, without limitation, by reference to an index or indices or the performance of one or more companies) and determined either on a consolidated basis or, as the
context permits, on a divisional, subsidiary, line of business, project or geographical basis or in combinations thereof and subject to such adjustments, if any, as the Committee specifies, consistent with the requirements of Section 162(m)):
sales; revenues; assets; expenses; earnings before or after deduction for all or any portion of interest, taxes, depreciation, or amortization, whether or not on a continuing operations or an aggregate or per share basis; return on equity,
investment, capital or assets; one or more operating ratios; borrowing levels, leverage ratios or credit rating; market share; capital expenditures; cash flow; Share or ADS price; shareholder return; sales of particular products or services;
customer acquisition or retention; acquisitions and divestitures (in whole or in part); joint ventures and strategic alliances; spin-offs, split-ups and the like; reorganizations; recapitalizations,
restructurings, financings (issuance of debt or equity) or refinancings; or strategic business criteria, consisting of one or more objectives based on: meeting specified market penetration or value added, product development or introduction
(including, without limitation, any clinical trial accomplishments, regulatory or other filings or approvals, or other product development milestones), geographic business expansion, cost targets, cost reductions or savings, customer satisfaction,
operating efficiency, acquisition or retention, employee satisfaction, information technology, corporate development (including, without limitation, licenses, innovation, research or establishment of third-party collaborations), manufacturing or
process development, legal compliance or risk reduction, or patent application or issuance goals. To the extent consistent with the requirements for satisfying the performance-based compensation exception under Section 162(m), the Administrator
may provide in the case of any Award intended to qualify for such exception that one or more of the Performance Criteria applicable to such Award will be adjusted in an objectively determinable manner to reflect events (for example, but without
limitation, acquisitions or dispositions) occurring during the performance period that affect the applicable Performance Criterion or Criteria. 

(w) “Plan”: This Zai Lab Limited 2017 Equity Incentive Plan, as from time to time amended and in effect. 

(x) “Restricted Share”: A Share subject to restrictions requiring that it be redelivered or offered for sale to the
Company if specified service or performance-based conditions are not satisfied. 
 (y) “Restricted Share Unit”: A
Share Unit that is, or as to which the delivery of Shares or cash in lieu of Shares is, subject to the satisfaction of specified performance or other vesting conditions. 

(z) “SAR”: A right entitling the holder upon exercise to receive an amount (payable in cash or in Shares of equivalent
value) equal to the excess of the Fair Market Value of the Shares subject to the right over the base value from which appreciation under the SAR is to be measured. 

(aa) “Section 409A”: Section 409A of the Code and the regulations thereunder. 

  
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 (bb) “Section 422”: Section 422 of the Code and
the regulations thereunder. 
 (cc) “Section 162(m)”: Section 162(m) of the Code and the
regulations thereunder. 
 (dd) “Share”: An Ordinary Share, unless there are ADSs available, in which case
“Share” will mean the number of ADSs equal to an Ordinary Share. If the ratio of ADSs to Ordinary Shares is not 1:1, then (i) all amounts determined under Section 4; (ii) all adjustments made pursuant to Section 7;
and (iii) all Awards designated as Awards over Ordinary Shares will automatically be adjusted to reflect the ratio of the ADSs to Ordinary Shares, as reasonably determined by the Administrator. 

(ee) “Share Option”: An option entitling the holder to acquire Shares upon payment of the exercise price. 

(ff) “Share Unit”: An unfunded and unsecured promise, denominated in Shares, to deliver Shares or cash measured by the
value of Shares in the future. 
 (gg) “Substitute Awards”: Awards issued under the Plan in substitution for equity
awards of an acquired company that are converted, replaced or adjusted in connection with the acquisition. 
 (hh) “Trading
Date”: The closing of the first sale to the general public of the ADSs representing Ordinary Shares pursuant to an effective registration statement under Applicable Laws, which results in the ADS being publicly-traded on one or more
established stock exchanges or national market systems. 
 (ii) “Unrestricted Share”: A Share not subject to any
restrictions under the terms of the Award. 
 2. PURPOSE 

The Plan provides for the grant of Awards consisting of, or based on, Shares. The purposes of the Plan are to attract, retain and reward key
Employees and Directors of, and consultants and advisors to, the Company and its subsidiaries, to incentivize them to generate shareholder value, to enable them to participate in the growth of the Company and to align their interests with the
interests of the Company’s shareholders.  
 3. ADMINISTRATION 

The Administrator has discretionary authority, subject only to the express provisions of the Plan, to interpret the Plan; determine eligibility
for and grant Awards; determine, modify or waive the terms and conditions of any Award; determine the form of settlement of Awards (whether in cash, Shares, other Awards, or other property); designate whether an Award will be over or with respect to
Ordinary Shares or ADSs; prescribe forms, rules and procedures relating to the Plan and Awards; and otherwise do all things necessary or desirable to carry out the purposes of the Plan. Determinations of the Administrator made under the Plan are
conclusive and bind all persons. 

  
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 4. LIMITS ON AWARDS UNDER THE PLAN 

(a) Number of Shares. Subject to adjustment as provided in Section 7(b), the maximum number of Shares that may
be delivered in satisfaction of Awards under the Plan is: 
 (1) 1,924,327 Shares, plus 

(2) an annual increase, to be added as of January 1st of each year from
January 1, 2018 to January 1, 2027, equal to the lesser of (i) four percent (4%) of the number of Shares outstanding as of the close of business on the immediately preceding December
31st day; and (ii) the number of Shares determined by the Board on or prior to such date for such year. 

Up to the total number of Shares set forth in the preceding sentence may be delivered in satisfaction of ISOs, but nothing in this Section 4(a) will be
construed as requiring that any, or any fixed number of, ISOs be awarded under the Plan. For purposes of this Section 4(a), no Share shall be treated as delivered under the Plan unless and until, and to the extent, it is actually issued and
delivered to a Participant. Without limiting the generality of the foregoing, any Shares withheld by the Company in payment of the exercise price or purchase price of an Award or in satisfaction of tax withholding requirements with respect to an
Award and any Shares underlying any portion of an Award that is settled or that expires, becomes unexercisable, terminates or is forfeited to or repurchased by the Company, in each case, without the delivery of Shares shall not be treated as
delivered in satisfaction of an Award under the Plan. The limits set forth in this Section 4(a) will be construed to comply with Section 422 to the extent applicable. 

(b) Substitute Awards. The Administrator may grant Substitute Awards under the Plan. To the extent
consistent with the applicable requirements of Section 422, the regulations thereunder and other Applicable Laws, Shares delivered under Substitute Awards will be in addition to and will not reduce the number of Shares available for Awards
under the Plan set forth in Section 4(a), but, notwithstanding anything in Section 4(a) to the contrary, if any Substitute Award is settled in cash or expires, becomes unexercisable, terminates or is forfeited to or repurchased by the
Company, in each case, without the delivery of Shares, the Shares previously subject to such Award will not be available for future grants under the Plan. The Administrator will determine the extent to which the terms and conditions of the Plan
apply to Substitute Awards, if at all, provided, however, that Substitute Awards will not be subject to the per-Participant Award limits described in Section 4(d) below. 

(c) Type of Shares. Subject to Applicable Laws, Shares delivered by the Company under the Plan in connection with,
or in satisfaction of, an Award, may be authorized but unissued Ordinary Shares, previously issued Ordinary Shares acquired by the Company or ADSs, as determined in the discretion of the Administrator. No fractional Shares or ADSs will be delivered
under the Plan. 
 (d) Individual Limits. 

(1) The following additional limits apply to Awards of the specified type granted to any person in any calendar year: 

(A) Share Options: 577,298 Shares. 

  
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 (B) SARs: 288,649 Shares. 

(C) Awards other than Share Options and SARs: 288,649 Shares. 

In applying the foregoing limits, (i) all Awards of the specified type granted to the same person in the same calendar year are
aggregated and made subject to one limit; (ii) the limits applicable to Share Options and SARs refer to the number of Shares underlying those Awards; and (iii) the share limit under clause (C) refers to the maximum number of Shares
that may be delivered, or the value of which could be paid in cash or other property, under an Award or Awards of the type specified in clause (C) assuming a maximum payout. To the extent applicable, the foregoing provisions will be construed
in a manner consistent with Section 162(m), including, without limitation, where applicable, the rules under Section 162(m) pertaining to permissible deferrals of exempt awards. 

(2) Notwithstanding the foregoing limits, the maximum grant date fair value of Awards granted to any Director in any calendar year
calculated in accordance with the Accounting Rules, assuming a maximum payout, may not exceed $500,000. The limitations in this Section 4(d)(2) will not apply to any Award or Shares granted
pursuant to a Director’s election to receive an Award or Shares in lieu of cash retainers or other fees (to the extent such Award or Shares have a fair value equal to the value of such cash retainers or other fees. 

5. ELIGIBILITY AND PARTICIPATION 
 The
Administrator shall select Participants from among key Employees and Directors of, and consultants and advisors to, the Company and its subsidiaries. Eligibility for ISOs is limited to individuals described in the first sentence of this
Section 5 who are employees of the Company or of a “parent corporation” or “subsidiary corporation” of the Company as those terms are defined in Section 424 of the Code. Eligibility for Share Options, other than ISOs,
and SARs is limited to individuals described in the first sentence of this Section 5 who are providing direct services on the date of grant of the Award to the Company or to a subsidiary of the Company that would be described in the first
sentence of Section 1.409A-1(b)(5)(iii)(E) of the Treasury Regulations. 
 6. RULES APPLICABLE TO AWARDS

 (a) All Awards. 

(1) Award Provisions. The Administrator shall determine the terms of all Awards, subject to the limitations
provided herein. By accepting (or, under such rules as the Administrator may prescribe, being deemed to have accepted) an Award, the Participant will be deemed to have agreed to the terms of the Award and the Plan. Notwithstanding any provision of
the Plan to the contrary, Substitute Awards may contain terms and conditions that are inconsistent with the terms and conditions specified herein, as determined by the Administrator. 

(2) Term of Plan. No Awards may be made after ten years from the Date of Adoption, but previously granted Awards
may continue beyond that date in accordance with their terms. 

  
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 (3) Transferability. Neither ISOs nor, except as the Administrator
otherwise expressly provides in accordance with the third sentence of this Section 6(a)(3), other Awards may be transferred other than by will or by the laws of descent and distribution. During a Participant’s lifetime, ISOs and, except as
the Administrator otherwise expressly provides in accordance with the third sentence of this Section 6(a)(3), SARs and NSOs may be exercised only by the Participant. The Administrator may permit the transfer of Awards other than ISOs, subject
to applicable securities and other laws and such limitations as the Administrator may impose. 
 (4) Vesting,
etc. The Administrator shall determine the time or times at which an Award vests or becomes exercisable and the terms on which a Share Option or SAR remains exercisable. Without limiting the foregoing, the
Administrator may at any time accelerate the vesting or exercisability of an Award, regardless of any adverse or potentially adverse tax or other consequences resulting from such acceleration. Unless the Administrator expressly provides otherwise,
however, the following rules will apply if a Participant’s Employment ceases: 
 (A) Except as provided in
(B) and (C) below, immediately upon the cessation of the Participant’s Employment each Share Option and SAR that is then held by the Participant or by the Participant’s permitted transferees, if any, will cease to be exercisable and
will terminate and all other Awards that are then held by the Participant or by the Participant’s permitted transferees, if any, to the extent not already vested will be forfeited. 

(B) Subject to (C) and (D) below, all vested and unexercised Share Options and SARs held by the Participant or the
Participant’s permitted transferees, if any, immediately prior to the cessation of the Participant’s Employment, to the extent then exercisable, will remain exercisable for the lesser of (i) a period of three months or (ii) the
period ending on the latest date on which such Share Option or SAR could have been exercised without regard to this Section 6(a)(4), and will thereupon immediately terminate. 

(C) Subject to (D) below, all vested and unexercised Share Options and SARs held by a Participant or the
Participant’s permitted transferees, if any, immediately prior to the cessation of the Participant’s Employment due to his or her death, to the extent then exercisable, will remain exercisable for the lesser of (i) the one (1)-year
period ending with the first anniversary of the Participant’s death or (ii) the period ending on the latest date on which such Share Option or SAR could have been exercised without regard to this Section 6(a)(4), and will thereupon
immediately terminate. 
 (D) All Share Options and SARs (whether or not vested or exercisable) held by a Participant
or the Participant’s permitted transferees, if any, immediately prior to the cessation of the Participant’s Employment will immediately terminate upon such cessation of Employment if the termination is for Cause or occurs in circumstances
that in the determination of the Administrator would have constituted grounds for the Participant’s Employment to be terminated for Cause. 

  
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 (5) Recovery of Compensation. The Administrator may provide in any case that
any outstanding Award (whether or not vested or exercisable) and the proceeds from the exercise or disposition of any Award or Shares acquired under any Award will be subject to forfeiture and disgorgement to the Company, with interest and other
related earnings, if the Participant to whom the Award was granted violates (i) a non-competition, non-solicitation, confidentiality or other restrictive covenant
by which he or she is bound or (ii) any Company policy applicable to the Participant that provides for forfeiture or disgorgement with respect to incentive compensation that includes Awards under the Plan. In addition, the Administrator may
require forfeiture and disgorgement to the Company of any outstanding Award and the proceeds from the exercise or disposition of any Award or Shares acquired under any Award, with interest and other related earnings, to the extent required by law or
applicable stock exchange listing standards, including, without limitation, Section 10D of the Securities Exchange Act of 1934, as amended, and any applicable Company policy. Each Participant, by accepting or being deemed to have accepted an
Award under the Plan, agrees to cooperate fully with the Administrator, and to cause any and all permitted transferees of the Participant to cooperate fully with the Administrator, to effectuate any forfeiture or disgorgement required hereunder.
Neither the Administrator nor the Company nor any other person, other than the Participant and his or her permitted transferees, if any, will be responsible for any adverse tax or other consequences to a Participant or his or her permitted
transferees, if any, that may arise in connection with this Section 6(a)(5). 
 (6) Taxes. The delivery,
vesting and retention of Shares, cash or other property under an Award are conditioned upon full satisfaction by the Participant of all tax withholding requirements with respect to the Award under Applicable Laws. The Administrator shall prescribe
such rules for the withholding of taxes with respect to any Award as it deems necessary. Subject to Applicable Laws, the Administrator may hold back Shares from an Award or permit a Participant to tender previously owned Shares in satisfaction of
tax withholding requirements (but not in excess of the maximum withholding amount consistent with the award being subject to equity accounting treatment under the Accounting Rules). 

(7) Dividend Equivalents, etc. The Administrator may provide for the payment of
amounts (on terms and subject to conditions established by the Administrator) in lieu of cash dividends or other cash distributions with respect to Shares subject to an Award whether or not the holder of such Award is otherwise entitled to share in
the actual dividend or distribution in respect of such Award. Any entitlement to dividend equivalents or similar entitlements will be established and administered either consistent with an exemption from, or in compliance with, the requirements of
Section 409A. Dividends or dividend equivalent amounts payable in respect of Awards that are subject to restrictions may be subject to such limits or restrictions as the Administrator may impose. 

(8) Rights Limited. Nothing in the Plan may be construed as giving any person the right to be granted an Award or
to continued employment or service with the Company or any of its subsidiaries, or any rights as a shareholder except as to Shares actually issued under the Plan. The loss of existing or potential profit in Awards will not constitute an element of
damages in the event of termination of Employment for any reason, even if the termination is in violation of an obligation of the Company or any of its subsidiaries to the Participant. 

  
 -9- 

 (9) Section 162(m). In the case of any Performance Award (other than
a Share Option or SAR) intended to qualify for the performance-based compensation exception under Section 162(m), the Administrator shall establish the Performance Criterion (or Criteria) applicable to the Award within the time period required
under Section 162(m) and the grant, vesting or payment, as the case may be, of the Award will be conditioned upon the satisfaction of the Performance Criterion (or Criteria) as certified by the Administrator, unless otherwise determined by the
Administrator. The preceding sentence will not apply to an Award eligible (as determined by the Administrator) for exemption from the limitations of Section 162(m) by reason of the post-initial public offering transition relief in Section 1.162-27(f) of the Treasury Regulations. 
 (10) Coordination with Other
Plans. Awards under the Plan may be granted in tandem with, or in satisfaction of or substitution for, other Awards under the Plan or awards made under other compensatory plans or programs of the Company or any of its subsidiaries.
For example, but without limiting the generality of the foregoing, awards under other compensatory plans or programs of the Company or any of its subsidiaries may be settled in Shares (including, without limitation, Unrestricted Shares) under the
Plan if the Administrator so determines, in which case the Shares delivered will be treated as awarded under the Plan (and will reduce the number of Shares thereafter available under the Plan in accordance with the rules set forth in
Section 4). In any case where an award is made under another plan or program of the Company or any of its subsidiaries and is intended to qualify for the performance-based compensation exception under Section 162(m), and such award is
settled by the delivery of Shares or another Award under the Plan, the applicable Section 162(m) limitations under both the other plan or program and under the Plan will be applied to the Plan as necessary (as determined by the Administrator)
to preserve the availability of the Section 162(m) performance-based compensation exception with respect thereto. 
 (11) Section
409A. 
 (A) Without limiting the generality of Section 11(b) hereof, to the extent applicable, each
Award will contain such terms as the Administrator determines and will be construed and administered, such that the Award either qualifies for an exemption from the requirements of Section 409A or satisfies such requirements. 

(B) If a Participant is deemed on the date of the Participant’s termination of Employment to be a “specified
employee” within the meaning of that term under Section 409A(a)(2)(B), then, with regard to any payment that is considered nonqualified deferred compensation under Section 409A, to the extent applicable, payable on account of a
“separation from service”, such payment will be made or provided on the date that is the earlier of (i) the expiration of the six-month period measured from the date of such “separation
from service” and (ii) the date of the Participant’s death (the “Delay Period”). Upon the expiration of the Delay Period, all payments delayed pursuant to this Section 6(a)(11)(B) (whether they would have
otherwise been payable in a single lump sum or in installments in the absence of such delay) will be paid on the first business day following the expiration of the Delay Period in a lump sum and any remaining payments due under the Award will be
paid in accordance with the normal payment dates specified for them in the applicable Award agreement. 

  
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 (C) For purposes of Section 409A, each payment made under the Plan
will be treated as a separate payment. 
 (12) Jurisdictions. In order to assure the viability of Awards granted to
Participants employed in various jurisdictions, the Administrator may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy or custom applicable in the jurisdiction in which a
Participant resides or is employed. Moreover, the Administrator may approve such supplements to, or amendments, restatements, or alternative versions of, the Plan as it may consider necessary or appropriate for such purposes without thereby
affecting the terms of the Plan as in effect for any other purpose; provided, however, that no such supplements, amendments, restatements, or alternative versions shall increase the Share limitations contained in Section 4 of the
Plan. 
 (b) Share Options and SARs. 

(1) Time and Manner of Exercise. Unless the Administrator expressly provides otherwise, no Share Option or SAR
will be deemed to have been exercised until the Administrator receives notice of exercise in a form acceptable to the Administrator that is signed by the appropriate person and accompanied by any payment required under the Award. Any attempt to
exercise a Share Option or SAR by any person other than the Participant (or a permitted transferee) will not be given effect unless the Administrator has received such evidence as it may require that the person exercising the Award has the right to
do so. 
 (2) Exercise Price. The per Share exercise price (or the base value from which appreciation is to be
measured) of each Award requiring exercise must be no less than 100% (in the case of an ISO granted to a 10-percent shareholder within the meaning of subsection (b)(6) of Section 422, 110%) of the Fair
Market Value of the Shares subject to the Award, determined as of the date of grant, or such higher amount as the Administrator may determine in connection with the grant. 

(3) Payment of Exercise Price. Where the exercise of an Award is to be accompanied by payment, payment of the
exercise price must be by cash or check acceptable to the Administrator or, if so permitted by the Administrator and if legally permissible under Applicable Laws, (i) through the delivery of previously acquired unrestricted Shares, or the
withholding of unrestricted Shares otherwise deliverable upon exercise, in either case, that have a Fair Market Value equal to the exercise price; (ii) through a broker-assisted exercise program acceptable to the Administrator; (iii) by
other means acceptable to the Administrator; or (iv) by any combination of the foregoing permissible forms of payment. The delivery of previously acquired Shares in payment of the exercise price under clause (i) above may be accomplished
either by actual delivery or by constructive delivery through attestation of ownership, subject to such rules as the Administrator may prescribe. 

  
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 (4) Maximum Term. The maximum term of Share Options and SARs must not
exceed 10 years from the date of grant (or five years from the date of grant in the case of an ISO granted to a 10-percent shareholder described in Section 6(b)(2) above). 

(5) Repricing. Except in connection with a corporate transaction involving the Company (which term includes,
without limitation, any Share dividend, Share split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off,
combination, or exchange of Shares) or as otherwise contemplated by Section 7 below, the Company may not, without obtaining shareholder approval, (i) amend the terms of outstanding Share Options or SARs to reduce the exercise price or base
value of such Share Options or SARs; (ii) cancel outstanding Share Options or SARs in exchange for Share Options or SARs with an exercise price or base value that is less than the exercise price or base value of the original Share Options or
SARs; or (iii) cancel outstanding Share Options or SARs that have an exercise price or base value greater than the Fair Market Value of a Share on the date of such cancellation in exchange for cash or other consideration. 

7. EFFECT OF CERTAIN TRANSACTIONS 

(a) Mergers, etc. Except as otherwise expressly provided in an Award agreement
or by the Administrator or as required by Applicable Laws, the following provisions will apply in the event of a Covered Transaction: 

(1) Assumption or Substitution. If the Covered Transaction is one in which there is an acquiring or surviving
entity, the Administrator may provide for (i) the assumption or continuation of some or all outstanding Awards or any portion thereof or (ii) the grant of new awards in substitution therefor by the acquiror or survivor or an affiliate of
the acquiror or survivor. 
 (2) Cash-Out of Awards. Subject to
Section 7(a)(5) below, the Administrator may provide for payment (a “cash-out”), with respect to some or all Awards or any portion thereof, equal in the case of each affected Award or portion
thereof to the excess, if any, of (i) the Fair Market Value of one Share times the number of Shares subject to the Award or such portion, over (ii) the aggregate exercise or purchase price, if any, under the Award or such portion (in the
case of a SAR, the aggregate base value above which appreciation is measured), in each case on such payment terms (which need not be the same as the terms of payment to holders of Shares) and other terms, and subject to such conditions, as the
Administrator determines; provided, however, for the avoidance of doubt, that if the per Share exercise or purchase price (or base value) of an Award is equal to or greater than the Fair Market Value of one Share, the Award may be cancelled
with no payment due hereunder or otherwise in respect of such Award. 
 (3) Acceleration of Certain Awards.
Subject to Section 7(a)(5) below, the Administrator may provide that any Award requiring exercise will become exercisable, in full or in part, and/or that the delivery of any Shares remaining deliverable under any outstanding Award of Share
Units (including Restricted Share Units and Performance Awards to the extent consisting of Share Units) will be accelerated, in full or in part, in each case on a basis that gives the holder of the Award a reasonable opportunity, as determined by
the Administrator, following exercise of the Award or the delivery of the Shares, as the case may be, to participate as a shareholder in the Covered Transaction. 

  
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 (4) Termination of Awards upon Consummation of Covered Transaction.
Except as the Administrator may otherwise determine in any case, each Award will automatically terminate (and in the case of outstanding Restricted Shares, will automatically be forfeited) immediately upon consummation of the Covered
Transaction, other than (i) any Award that is assumed or substituted pursuant to Section 7(a)(1) above and (ii) any Award that by its terms, or as a result of action taken by the Administrator, continues following the Covered
Transaction. 
 (5) Additional Limitations. Any Share and any cash or other property delivered pursuant to
Section 7(a)(2) or Section 7(a)(3) above with respect to an Award may, in the discretion of the Administrator, contain such restrictions, if any, as the Administrator deems appropriate to reflect any performance or other vesting conditions
to which the Award was subject and that did not lapse (and were not satisfied) in connection with the Covered Transaction. For purposes of the immediately preceding sentence, a cash-out under
Section 7(a)(2) above or an acceleration under Section 7(a)(3) above will not, in and of itself, be treated as the lapsing (or satisfaction) of a performance or other vesting condition. In the case of Restricted Share that does not vest
and is not forfeited in connection with the Covered Transaction, the Administrator may require that any amounts delivered, exchanged or otherwise paid in respect of such Share in connection with the Covered Transaction be placed in escrow or
otherwise made subject to such restrictions as the Administrator deems appropriate to carry out the intent of the Plan. 
 (b) Changes
in and Distributions with Respect to Shares. 
 (1) Basic Adjustment Provisions. In the event of a Share
dividend, Share split or combination of Shares (including a reverse Share split), recapitalization or other change in the Company’s capital structure that constitutes an equity restructuring within the meaning of the Accounting Rules, the
Administrator shall make appropriate adjustments to the maximum number of Shares specified in Section 4(a) that may be issued under the Plan and to the maximum Share limits described in Section 4(d), and shall make appropriate adjustments
to the number and kind of Shares or securities underlying Awards then outstanding or subsequently granted, any exercise or purchase prices (or base values) relating to Awards and any other provision of Awards affected by such change. 

(2) Certain Other Adjustments. The Administrator may also make adjustments of the type described in
Section 7(b)(1) above to take into account distributions to shareholders other than those provided for in Section 7(a) and 7(b)(1), or any other event, if the Administrator determines that adjustments are appropriate to avoid distortion in
the operation of the Plan, having due regard for the qualification of ISOs under Section 422, the requirements of Section 409A, and the performance-based compensation rules of Section 162(m), in each case, to the extent applicable.

  
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 (3) Continuing Application of Plan Terms. References in the Plan to
Shares will be construed to include any stock or securities resulting from an adjustment pursuant to this Section 7. 
 8. LEGAL CONDITIONS ON
DELIVERY OF SHARES 
 The Company will not be obligated to deliver any Shares pursuant to the Plan or to remove any restriction from
Shares previously delivered under the Plan until: (i) the Company is satisfied that all legal matters in connection with the issuance and delivery of such Shares have been addressed and resolved; (ii) if the outstanding Shares are at the
time of delivery listed on any stock exchange or national market system, the Shares to be delivered have been listed or authorized to be listed on such exchange or system upon official notice of issuance; and (iii) all conditions of the Award
have been satisfied or waived. The Company may require, as a condition to the exercise of an Award or the delivery of Shares under an Award, such representations or agreements as counsel for the Company may consider appropriate to avoid violation of
the Securities Act of 1933, as amended, or any other Applicable Laws. Any Shares required to be issued to Participants under the Plan will be evidenced in such manner as the Administrator may deem appropriate, including book-entry registration or
delivery of Share certificates. In the event that the Administrator determines that Share certificates will be issued to Participants under the Plan, the Administrator may require that certificates evidencing Shares issued under the Plan bear an
appropriate legend reflecting any restriction on transfer applicable to such Shares, and the Company may hold the certificates pending lapse of the applicable restrictions. 

9. AMENDMENT AND TERMINATION 
 The
Administrator may at any time or times amend the Plan or any outstanding Award for any purpose which may at the time be permitted by Applicable Laws, and may at any time terminate the Plan as to any future grants of Awards; provided, however,
that except as otherwise expressly provided in the Plan the Administrator may not, without the Participant’s consent, alter the terms of an Award so as to affect materially and adversely the Participant’s rights under the Award, unless the
Administrator expressly reserved the right to do so at the time the Award was granted. Any amendments to the Plan will be conditioned upon shareholder approval only to the extent, if any, such
approval is required by Applicable Laws, as determined by the Administrator. 
 10. OTHER COMPENSATION ARRANGEMENTS 

The existence of the Plan or the grant of any Award will not affect the Company’s right to award a person bonuses or other compensation in
addition to Awards under the Plan. 
 11. MISCELLANEOUS 

(a) Waiver of Jury Trial. To the extent permitted by Applicable Laws, by accepting or being deemed to have accepted
an Award under the Plan, each Participant waives any right to a trial by jury in any action, proceeding or counterclaim concerning any rights under the Plan and any Award, or under any amendment, waiver, consent, instrument, document or other
agreement delivered or which in the future may be delivered in connection therewith, and agrees that any 

  
 -14- 

 
such action, proceedings or counterclaim will be tried before a court and not before a jury. By accepting or being deemed to have accepted an Award under the Plan, each Participant certifies that
no officer, representative, or attorney of the Company has represented, expressly or otherwise, that the Company would not, in the event of any action, proceeding or counterclaim, seek to enforce the foregoing waivers. Notwithstanding anything to
the contrary in the Plan, nothing herein is to be construed as limiting the ability of the Company and a Participant to agree to submit disputes arising under the terms of the Plan or any Award made hereunder to binding arbitration or as limiting
the ability of the Company to require any eligible individual to agree to submit such disputes to binding arbitration as a condition of receiving an Award hereunder. 

(b) Limitation of Liability. Notwithstanding anything to the contrary in the Plan, neither the Company, nor any of
its subsidiaries, nor the Administrator, nor any person acting on behalf of the Company, any of its subsidiaries, or the Administrator, will be liable to any Participant, to any permitted transferee, to the estate or beneficiary of any Participant
or any permitted transferee, or to any other holder of an Award by reason of any acceleration of income, or any additional tax (including any interest and penalties), asserted by reason of the failure of an Award to satisfy the requirements of
Section 422 or Section 409A or by reason of Section 4999 of the Code, or otherwise asserted with respect to the Award, in each case, to the extent permitted by Applicable Laws. 

12. ESTABLISHMENT OF SUB-PLANS 

The Administrator may at any time and from time to time establish one or more sub-plans under the Plan
(for local-law compliance purposes or other administrative reasons determined by the Administrator) by adopting supplements to the Plan containing, in each case, such limitations on the Administrator’s
discretion under the Plan, and such additional terms and conditions, as the Administrator deems necessary or desirable. Each supplement so established will be deemed to be part of the Plan but will apply only to Participants within the group to
which the supplement applies (as determined by the Administrator). 
 13. GOVERNING LAW 

(a) Certain Requirements of Corporate Law. Awards will be granted and administered consistent with the requirements
of Applicable Laws relating to the issuance of Shares and the consideration to be received therefor, and with the applicable requirements of the stock exchanges or other trading systems on which Shares are listed or entered for trading, in each case
as determined by the Administrator. 
 (b) Other Matters. Except as otherwise provided by the express terms of
an Award agreement, under a sub-plan described in Section 12 or as provided in Section 13(a) above, the domestic substantive laws of the State of New York govern the provisions of the Plan and of
Awards under the Plan and all claims or disputes arising out of or based upon the Plan or any Award under the Plan or relating to the subject matter hereof or thereof without giving effect to any choice or conflict of laws provision or rule that
would cause the application of the domestic substantive laws of any other jurisdiction. 

  
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 (c) Jurisdiction. By accepting an Award, each Participant will be
deemed to (i) have submitted irrevocably and unconditionally to the jurisdiction of the federal and state courts located within the geographic boundaries of the United States District Court for the Southern District of New York for the purpose
of any suit, action or other proceeding arising out of or based upon the Plan or any Award; (ii) agree not to commence any suit, action or other proceeding arising out of or based upon the Plan or an Award, except in the federal and state
courts located within the geographic boundaries of the United States District Court for the Southern District of New York; and (iii) waive, and agree not to assert, by way of motion as a defense or otherwise, in any such suit, action or
proceeding, any claim that he or she is not subject personally to the jurisdiction of the above-named courts that his or her property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient
forum, that the venue of the suit, action or proceeding is improper or that the Plan or an Award or the subject matter thereof may not be enforced in or by such court. 

  
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