Document:

Exhibit 10.7

 

EXECUTION

 

SALE AND PURCHASE AGREEMENT

 

AMONG

 

M17 ENTERTAINMENT LIMITED

 

INFINITY E.VENTURES ASIA III, L.P.

 

17 MEDIA JAPAN INC

 

AND

 

M17 GROWTH SPV LLC

 

	
 
    	
DATED   THE
    	
DAY OF
    	
2018
    

 

 

 

CONTENTS

 

	
1.
    	
DEFINITIONS AND INTERPRETATION
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
SALE AND PURCHASE OF SALE   SHARES
    	
4
    
	
 
    	
 
    	
 
    
	
3.
    	
CONSIDERATION
    	
4
    
	
 
    	
 
    	
 
    
	
4.
    	
CONDITIONS PRECEDENT
    	
5
    
	
 
    	
 
    	
 
    
	
5.
    	
SPA COMPLETION
    	
5
    
	
 
    	
 
    	
 
    
	
6.
    	
PUT AND CALL OPTIONS
    	
6
    
	
 
    	
 
    	
 
    
	
7.
    	
REPRESENTATIONS, WARRANTIES AND   UNDERTAKINGS
    	
8
    
	
 
    	
 
    	
 
    
	
8.
    	
DURATION AND TERMINATION
    	
10
    
	
 
    	
 
    	
 
    
	
9.
    	
DEFAULT
    	
11
    
	
 
    	
 
    	
 
    
	
10.
    	
CONFIDENTIALITY 
    	
12
    
	
 
    	
 
    	
 
    
	
11.
    	
MISCELLANEOUS
    	
12
    
	
 
    	
 
    	
 
    
	
12.
    	
GOVERNING LAW AND DISPUTE   RESOLUTION
    	
14
    
	
 
    	
 
    	
 
    
	
SCHEDULE 1
    	
15
    

 

 

SALE AND PURCHASE AGREEMENT

 

THIS AGREEMENT is made on the             day of            2018 among:

 

(1)                                 M17 ENTERTAINMENT LIMITED (Registration Number 320106), a company established in the Cayman Islands with its registered address at Cayman Corporate Centre, 27 Hospital Road, George Town, Grand Cayman KY1-9008, Cayman Islands (“M17”);

 

(2)                                 INFINITY E.VENTURES ASIA III, L.P., (Registration Number MC-75320), with its registered address at Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands (“IVP”);

 

(3)                                 17 MEDIA JAPAN INC, (Registration Number 010401132065) with its registered address at 3F Taikoen Building 1-3-8 Shibakoen Minatoku Tokyo 105-0011 Japan (“Company”); and

 

(4)                                 M17 Growth SPV LLC (Registration Number 514), a company established in the Cayman Islands with its registered address at 27 Hospital Road, George Town, Grand Cayman KY1-9008 Cayman Islands (“SPV” and together with IVP, the “Sellers”),

 

(each, a “Party” and collectively, the “Parties”).

 

WHEREAS:

 

(A)                               The Company, M17 and IVP had entered into a collaboration agreement on or around March 2018 (the “Collaboration Agreement”) to set out their intentions of cooperating with each other.

 

(B)                               As at the date of this Agreement, the Sellers are the sole legal and beneficial owners of the Company.

 

(C)                               Further to the Collaboration Agreement, the Sellers have agreed to sell to M17, and M17 has agreed to purchase from the Sellers, the Sale Shares (as defined below) on the terms and subject to the conditions in this Agreement.

 

IT IS HEREBY AGREED as follows:

 

1.                                      DEFINITIONS AND INTERPRETATION

 

1.1.                            Definitions:

 

In this Agreement, unless the subject or context otherwise requires the following words and expressions shall have the following meanings:

 

“Acquisition” has the meaning ascribed to it in clause 2;

 

“Affiliates” means with respect to any person, any other person directly or indirectly controlling, controlled by, or under common control with, such person. The expression “control” (including its correlative meanings, “controlled by”, “controlling” and “under common control with”) shall mean, with respect to a corporation, the right to exercise, directly or indirectly, more than fifty per cent. (50%) of the voting rights attributable to the shares of the controlled corporation or to control the composition of the board of directors or to direct the board or management or business activities of such corporation and, with respect to any person other than a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person;

 

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“Business Day” means a day (other than a Saturday, Sunday or a gazetted public holiday in Singapore) when banks are open for banking business in Singapore;

 

“Call Option” has the meaning ascribed to it at Clause 6.1(a);

 

“Company Shares Incentive Plan” means such shares incentive plan of the Company to be instituted by the Company and administered by IVP (as may be amended from time to time) comprising a pool of shares of M17 that the Company (or its Affiliates) may from time to time grant to the employees, directors, external advisors and consultants of the Company for the purpose of incentivising such persons.

 

“Confidential Information” means any information which (a) a Party may have or acquire (whether before or after the date of this Agreement) in relation to the customers, suppliers, businesses, assets or affairs of the Company, (b) a Party or any member of its Group may have or acquire (whether before or after the date of this Agreement) in relation to the customers, suppliers, business, assets or affairs of the other party or any member of the other party’s Group as a consequence of the negotiations relating to this Agreement or any other agreement or document referred to in this Agreement or the performance of this Agreement or any other agreement or document referred to in this agreement or (c) relates to the contents of this Agreement (or any agreement or arrangement entered into pursuant to this Agreement);

 

“Control” (including its correlative meanings, “Controlled by”, “Controlling” and “under common Control with”) means the power to direct the management of the legal entity whether through the ownership of voting capital, by contract or otherwise, and includes, the direct or indirect ownership of fifty percent (50%) or more of voting shares.

 

“Encumbrance” means any mortgage, assignment of receivables, debenture, lien, hypothecation, charge, pledge, title retention, right to acquire, security interest, option, pre-emptive or other similar right, right of first refusal, restriction, third-party right or interest, any other encumbrance, condition or security interest whatsoever or any type of preferential arrangement (including without limitation, a title transfer or retention arrangement) having similar effect;

 

“Exercise Notice” has the meaning ascribed to it at Clause 6.2;

 

“First Tranche” has the meaning ascribed to it in Clause 3.1(a);

 

“Fully Diluted” means in respect of the share capital of any company, the total of all classes and series of shares outstanding on a particular date, combined with all options (that have been granted or reserved for grant under any share option scheme of that company), warrants, convertible securities of all kinds, preference shares, debentures or any other arrangements relating to that company’s equity, and the effect of any anti-dilution protection regarding previous financings, all on an “as if converted” basis. For the purpose of this definition, “as if converted” basis shall mean as if such instrument, option or security had been issued and converted into shares of that company

 

“Incentive Shares” means such number of shares in the share capital of M17 equal to a value equivalent to the Second Tranche amount that will be available for grant to employees, directors, external advisors and consultants of the Company pursuant to the Company Shares Incentive Plan and as determined by IVP;

 

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“Insolvency Event” means the happening of any of these events in respect of a Party:

 

(a)                                the passing by that Party of a resolution for, or that Party being under, bankruptcy, judicial management, insolvency, winding up, liquidation, or other similar proceedings;

 

(b)                                the appointment of a trustee, judicial manager liquidator, custodian, or similar person in a proceeding referred to in paragraph (a) of this definition which appointment has not been set aside or stayed within 30 days;

 

(c)                                 the making by a court having jurisdiction of an order winding up or otherwise confirming the bankruptcy or insolvency of that Party, which order has not been set aside or stayed within 30 days;

 

(d)                                a receiver, receiver and manager, official manager, trustee, administrator, controller or similar official is appointed over any of the assets or undertaking of that Party for a period exceeding six (6) months;

 

(e)                                 except to reconstruct or amalgamate while solvent, that Party enters into, or resolves to enter into, a scheme of arrangement, deed of company arrangement or composition with, or assignment for the benefit of, all or any class of its creditors, or it proposes a reorganisation, moratorium or other administration involving any of them;

 

(f)                                   that Party is unable to pay its debts when they are due or states that it is insolvent; or

 

(g)                                  that Party suspends payment of its debts generally; 

“IVP Shareholder Loans” means:

 

(a)                                means the loan of US$300,000 extended by IVP to the Company pursuant to a loan agreement entered into on 19 July 2017; and

 

(b)                                all other loans, debts, amounts, payment obligations and liabilities owing from the Company to IVP or SPV (excluding payments made by IVP to the Company in respect of the office lease for the Company) up to an amount equivalent to US$6 million (including the US$300,000 loan at (a) above);

 

“IVP Warrants” means the warrants issued by M17 to IVP exercisable for 1,928,417 series B preference shares of M17, as set forth in Clause 3.2(a) of the Collaboration Agreement.

 

“Liquidation Event” has the meaning ascribed to it in the shareholders agreement of M17 dated 24 August 2017 (as amended and supplemented from time to time);

 

“Net Consideration” has the meaning given to it in Clause 3.1;

 

“Parties” means the parties to this Agreement including their successors-in-title and permitted assigns (and in the case of IVP, its Affiliates), and “Party” means any of them.

 

“person” includes any individual, partnership, joint venture, corporation, limited liability

 

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company, trust, association, government, governmental agency or department or any other entity;

 

“Sale Shares” means 100% of the issued and paid up share capital of the Company; 

 

“Second Tranche” has the meaning ascribed to it in Clause 3.1(b);

 

“SPA Completion” means the completion of the sale and purchase of the Sale Shares pursuant to Clause 5 of this Agreement;

 

“SPA Completion Date” means the date of the SPA Completion or such other date as all of the Parties may mutually agree in writing;

 

“Warrant Shares” has the meaning ascribed to it in Clause3.2(a)(i); and

 

“US$” or “USD” means the lawful currency of the United States of America.

 

1.2                               The expression “this Agreement” or any similar expression shall mean this present and any supplemental written agreement as may be in force from time to time or at any time. Any reference in this Agreement to “Recitals”, “Schedules” and “Clauses” are to the recitals, and schedules to, and clauses of, this Agreement.

 

1.3                               Unless the context otherwise requires, references to the singular number shall include references to the plural number and vice versa and references to natural persons shall include bodies corporate and the use of any gender shall include all genders.

 

1.4                               The headings to the Clauses in this Agreement are inserted for convenience only and shall not affect the interpretation of this Agreement.

 

2.                                    SALE AND PURCHASE OF SALE SHARES

 

The Sellers shall sell their Sale Shares, and M17 shall purchase such Sale Shares on the terms and subject to the conditions of this Agreement, free from all Encumbrances and with all rights, benefits and entitlements now or hereafter attaching thereto (the “Acquisition”).

 

3.                                    CONSIDERATION

 

3.1.                            The consideration for the Sale Shares shall be the amount equivalent to (the “Net  Consideration”) the sum of the following:

 

(a)                                 the first tranche (“First Tranche”), being the aggregate sum of US$32,820,364.39 comprising (i) US$2,500,000 in cash, to be used for exercise of warrants issued to IVP and M17 previously and (ii) US$30,320,364.39 which shall be applied in accordance with Clause 3.2(a)(iii); and

 

(b)                                 the second tranche (“Second Tranche”), being the aggregate sum of US$7,293,414.31, which shall be applied by IVP towards incentivizing the employees of the Company.

 

The calculations of the First Tranche and the Second Tranche set out in further detail at Schedule 1 of this Agreement.

 

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3.2.                            Each of IVP, SPV, and M17 agree that the Net Consideration shall only be satisfied by the following:

 

(a)                                 on the SPA Completion (First Tranche):

 

(i)                                     the issuance of 1,928,417 series B preference shares at the price of US$1.2964 per share by M17 to the Sellers in equal proportions having the terms and conditions set out in the memorandum and articles of association of M17 (the “Warrant Shares”);

 

(ii)                                  the issuance by M17 of a convertible note in aggregate principal amount of US$30,320,364.39 to the Sellers in equal proportions, bearing the same terms and conditions as the US$18,500,000 convertible notes issued by M17 on 26 January 2018; and

 

(b)                                 on SPA Completion (Second Tranche), the issuance by M17 of the Incentive Shares in the form of 3,206,817 restricted share units.

 

3.3.                            The Parties shall not be obliged to complete the sale and purchase of any of the relevant Sale Shares unless the Sellers discharge and release the Company from the IVP Shareholder Loans simultaneously.

 

3.4.                            The Parties further agree that, save for the payments due to streamers, the Company has no extraordinarily or exceptionally large accounts payable (as may be reasonably determined by M17) at the end of March 2018.

 

4.                                    CONDITIONS PRECEDENT

 

4.1.                            The Purchaser’s obligation to purchase the respective Sale Shares is conditional upon:

 

(a)                       the Sellers discharging and releasing the Company from the IVP Shareholder Loans simultaneously with the SPA Completion; and

 

(b)                       all representations, undertakings and warranties of the Sellers under this Agreement being complied with, materially true, accurate and correct as at the SPA Completion Date.

 

(c)                        All waivers or consents by the Sellers as M17 may reasonably require to enable M17 to be registered as the holder of the Sale Shares (if applicable) having been delivered by the Sellers to M17.

 

4.2.                            The Sellers shall fulfil the conditions specified in Clause 4.1. If any of the conditions in Clause 4.1 is not fulfilled or not waived by M17 by the SPA Completion Date, this Agreement shall ipso facto cease and determine and none of the Parties shall have any claim against the other for costs, damages, compensation or otherwise pursuant to this Agreement.

 

5.                                    SPA COMPLETION

 

5.1.                            Subject to Clause 4, the SPA Completion shall take place on the SPA Completion Date where all (and not only some) of the events described in this Clause 5 shall occur.

 

5.2.                            At the SPA Completion, the Sellers shall deliver or procure to be delivered to M17:

 

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(a)                       a notice in writing to M17 to exercise all of the IVP Warrants into the Warrant Shares;

 

(b)                       duly executed transfer form in respect of the relevant Sale Shares in favour of M17 (or as it may direct) accompanied by the share certificates in respect of such Sale Shares;

 

(c)                        copies of the board resolutions of the Company approving, inter alia, the transfer of the Sale Shares to M17 and the lodgment of the notice of transfer of the Sale Shares, in order for the transfer of the Sale Shares to be updated in the register of members of the Company;

 

(d)                       all documents required to effect the stamping of this Agreement or the transfer forms (including such statutory declarations, letters, worksheets and valuation as the tax authorities may require); and

 

(e)                        a certified true copy of the register of members of the Company reflecting M17 as the holder of the Sale Shares.

 

5.3.                            At the SPA Completion, against compliance with the respective provisions of Clause 5.2, M17 shall issue:

 

(a)                       a convertible note in aggregate principal amount of US$30,320,364.39 to the Sellers in equal proportions, bearing the same terms and conditions as the US$18,500,000 convertible notes issued by M17 on 26 January 2018; and

 

(b)                       1,928,417 Series B shares.

 

5.4.                            If the documents or items required to be delivered by the Sellers to M17 on the SPA Completion Date are not forthcoming for any reason or if in any other respect the provisions of Clause 5.2 are not fully complied with by the Sellers, M17 shall be entitled to:

 

(a)                       defer such SPA Completion to a date not more than fourteen (14) days after the date set by Clause 5.1, as the case may be, so that the relevant provisions of Clause 5.2, as the case may be, shall apply to such SPA Completion as so deferred;

 

(b)                       proceed to SPA Completion so far as practicable but without prejudice to M17’s rights and remedies (whether under this Agreement generally or under this Clause) to the extent that the Sellers shall not have complied with its obligations hereunder; or

 

(c)                        terminate this Agreement, without prejudice to any other rights or remedies of M17.

 

6.                                      PUT AND CALL OPTIONS

 

6.1.                          If the Acquisition does not close by the SPA Completion Date:

 

(a)                                 M17 shall have a right (“Call Option”), exercisable on or after the SPA Completion Date and expiring on the earlier of either (i) 1 April 2019; or (ii) the date of M17’s Liquidation Event, to require IVP to sell 100% of the issued share capital of the Company to M17 at an amount equivalent to the sum of:

 

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(i)                                     the sum of 2.25 X 45% X annualised revenue of the Company (recorded in accordance with Schedule 2 of the Collaboration Agreement) for the three consecutive calendar months: (aa) the preceding two calendar months at the time of delivering the Exercise Notice pursuant to Clause 6.2 and (bb) the calendar month starting on the day when the Exercise Notice is delivered pursuant to Clause 6.2 (the “Relevant Period”), less:

 

(A)                               net of accounts payable and accounts receivable by the Company on 1 April 2018; and

 

(B)                               such amount payable by IVP to M17 pursuant to the exercise of the IVP Warrants (being the amount of 1,928,417 multiplied by US$1.2964); and

 

(ii)                                  the sum of 2.25 X 10% X annualised revenue of the Company (recorded in accordance with Schedule 2 of the Collaboration Agreement) for the Relevant Period, which shall be applied by IVP towards incentivizing the employees of the Company.

 

(b)                                 IVP shall have a right (“Put Option”), exercisable on the date after 1 April 2018 and expiring on the earlier of either (i) 1 April 2019; or (ii) the date of exercise or expiry of the M17 Call Option (whichever earlier), to require M17 to purchase 100% of the issued share capital of the Company from IVP at an amount equivalent to the sum of:

 

(i)                                     the sum of 1.575 X 45% X annualised revenue of the Company (recorded in accordance with Schedule 2 of the Collaboration Agreement) for the Relevant Period, less:

 

(A)                               net of accounts payable and accounts receivable by the Company on 1 April 2018; and

 

(B)                               such amount payable by IVP to M17 pursuant to the exercise of the IVP Warrants (being the amount of 1,928,417 multiplied by US$1.2964); and

 

(ii)                                  the sum of 1.575 X 10% X annualised revenue of the Company (recorded in accordance with Schedule 2 of the Collaboration Agreement) for the Relevant Period, which shall be applied by IVP towards incentivizing the employees of the Company.

 

6.2.                          Either M17 and IVP may exercise their respective Call Option or Put Option by serving a written notice to the other Party confirming the exercise of the Call Option or Put Option (the “Exercise Notice”), provided that the Exercise Notice shall be delivered by M17 or IVP on the first day of a calendar month during the relevant option exercise periods stipulated above. Any Exercise Notice delivered that is not in compliance with this Clause shall be invalid. The Call Option or Put Option may be exercised only once in respect of 100% of the issued share capital of the Company (and not part thereof).

 

6.3.                          Each of IVP and M17 agree that the consideration for the sale and purchase of 100% of the issued share capital of the Company pursuant to the exercise of the Call Option or the Put Option shall only be satisfied by:

 

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(a)                                 on exercise of the option, at the election of IVP, either:

 

(i)                                     the issuance by M17 of that number of shares of capital of M17 to the Sellers in equal proportions of equivalent value to the sum indicated at Clause 6.1(a)(i) or 6.1(b)(i) above (as the case may be), provided always that the shares shall be of such class to be discussed and agreed upon but the price per such share (on a Fully Diluted basis) in any case shall be equivalent to 15% discount to the lowest consensus price per share of M17 from bookrunners in any Liquidation Event of M17 (if applicable); or

 

(ii)                                  the issuance by M17 of a convertible note to the Sellers in equal proportions of an aggregate principal amount equivalent to the First Tranche, bearing the same terms and conditions as the US$18,500,000 convertible notes issued by M17 on 26 January 2018; and

 

(b)                                 on the exercise of the option, the issuance by M17 of such shares of M17 (of similar class and value as the shares referred to at Clause 6.3(a)(i) up to a value equivalent to the either amount stated at Clause 6.1(a)(ii) or 6.1(b)(ii) above (as the case may be).

 

6.4.                          The sale and purchase of 100% of the issued share capital of the Company pursuant to the exercise of the Call Option or the Put Option shall be deemed as the Acquisition (as defined in this Agreement) and the terms of this Agreement shall apply accordingly to such sale and purchase with the exception that any reference to the date of this Agreement shall be taken to mean the date of the exercise of the Call Option or the Put Option (as the case may be) or such other date as all of the Parties may mutually agree in writing.

 

7.                                    REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS

 

7.1.                            Each of the Sellers, severally, and not jointly, represents and warrants to M17 that the following representations and warranties are true, complete and accurate as at the date hereof and as at the SPA Completion Date in all respects as if entered into afresh with reference to the facts and circumstances existing on such day:

 

(a)                       Such Seller is currently, and shall immediately prior to the SPA Completion be, the legal and beneficial owner of the relevant Sale Shares free from any Encumbrances;

 

(b)                       The relevant Sale Shares have been duly authorised, allotted, validly issued and fully paid up;

 

(c)                        It is entitled to sell and transfer or procure the sale and transfer of the relevant Sale Shares free from all and any Encumbrances together with all rights and benefits attaching thereto as at the SPA Completion Date and no other person shall have any rights of pre-emption over such Sale Shares as of the SPA Completion Date;

 

(d)                       It is a duly established legal entity in its country of incorporation and all necessary approvals, permits, authorisation and licences from the authorities required by it under the laws and regulations of its country of incorporation to enter into and perform this Agreement have been obtained and all actions have been taken by it to comply with all legal and other requirements necessary to ensure that by entering into this Agreement and performing its obligations hereunder it would not infringe any laws or

 

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regulations applicable to it or the terms of any such approval, permit, authorisation or licence;

 

(e)                        All actions, conditions and things required to be taken, fulfilled and done (including but not limited to the obtaining of any necessary consents), in order to:

 

(i)                           enable it lawfully to enter into, exercise its rights and perform and comply with its obligations under this Agreement; and

 

(ii)                        ensure that those obligations are valid, legally binding and enforceable, have been taken, fulfilled and done, or will be taken, fulfilled done on or prior to the SPA Completion;

 

(f)                         It has the necessary power and authority to enter into this Agreement and to exercise its rights and observe and perform its obligations hereunder and the execution of this Agreement by it has been duly authorised so that upon execution, this Agreement will constitute valid and binding obligations of such Party in accordance with its terms;

 

(g)                        Its entry into, exercise of its rights and/or performance of or compliance with its obligations under this Agreement do not and will not contravene or constitute a default under its constitutional documents or under any other agreement, contract, instrument or other form of commitment binding upon such Party; and

 

(h)                       No litigation, liquidation, bankruptcy, receivership, judicial management, arbitration or administrative proceedings are current or pending or threatened against such Seller (a) to restrain the entry into, exercise of the rights under or performance or enforcement of or compliance with its obligations under this Agreement; or (b) which has or could have a material adverse effect on such Seller, nor, to the best of knowledge of such Seller, are there any circumstances or facts which are likely to give rise to such proceedings.

 

7.2.                            M17 represents and warrants to the Sellers that the following representations and warranties are true, complete and accurate as at the date hereof and as at the SPA Completion Date in all respects as if entered into afresh with reference to the facts and circumstances existing on such day:

 

(a)                      immediately after the SPA Completion, the Warrant Shares shall be free from any Encumbrances;

 

(b)                       the Warrant Shares, when issued, will be duly authorised, allotted, validly issued and fully paid up;

 

(c)                        it is entitled to issue the Warrant Shares free from all and any Encumbrances together with all rights and benefits attaching thereto as at the SPA Completion Date and no other person shall have any rights of pre-emption over such Warrant Shares as of the SPA Completion Date;

 

(d)                       It is a duly established legal entity in its country of incorporation and all necessary approvals, permits, authorisation and licences from the authorities required by it under the laws and regulations of its country of incorporation to enter into and perform this Agreement have been obtained and all actions have been taken by it to comply with all legal and other requirements necessary to ensure that by entering into this Agreement and performing its obligations hereunder it would not infringe any laws or

 

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regulations applicable to it or the terms of any such approval, permit, authorisation or licence;

 

(e)                        All actions, conditions and things required to be taken, fulfilled and done (including but not limited to the obtaining of any necessary consents), in order to:

 

(i)                         enable it lawfully to enter into, exercise its rights and perform and comply with its obligations under this Agreement; and

 

(ii)                      ensure that those obligations are valid, legally binding and enforceable, have been taken, fulfilled and done, or will be taken, fulfilled done on or prior to the SPA Completion;

 

(f)                         It has the necessary power and authority to enter into this Agreement and to exercise its rights and observe and perform its obligations hereunder and the execution of this Agreement by it has been duly authorised so that upon execution, this Agreement will constitute valid and binding obligations of such Party in accordance with its terms;

 

(g)                        Its entry into, exercise of its rights and/or performance of or compliance with its obligations under this Agreement do not and will not contravene or constitute a default under its constitutional documents or under any other agreement, contract, instrument or other form of commitment binding upon such Party; and

 

(h)                       No litigation, liquidation, bankruptcy, receivership, judicial management, arbitration or administrative proceedings are current or pending or threatened against M17 (a) to restrain the entry into, exercise of the rights under or performance or enforcement of or compliance with its obligations under this Agreement; or (b) which has or could have a material adverse effect on M17, nor, to the best of knowledge of M17, are there any circumstances or facts which are likely to give rise to such proceedings.

 

7.3.                            No Party shall do or permit or procure any act or omission on or before the SPA Completion which would constitute a breach of any of the representations and warranties specified in Clauses 7.1 or 7.2, as applicable, above if they were given at any and all times from the date hereof down to the SPA Completion or which would make any of such representations/warranties inaccurate or misleading in any respect if they were so given.

 

7.4.                            The representations, warranties and undertakings given under or pursuant to this Clause 7: 

 

(a)                       shall be separate and independent;

 

(b)                      shall be fulfilled down to, and will be true and correct in all respects and not misleading at, the SPA Completion as if they had been entered into afresh at the SPA Completion; and

 

(c)                        shall not in any respect be extinguished or affected by the SPA Completion, or by any other event or matter whatsoever, except by a specific and duly authorised written waiver or release by the relevant Party for whose benefit the representation, warranty and undertaking was given.

 

8.                                    DURATION AND TERMINATION

 

8.1.                          Termination

 

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Subject to Clause 5.4(c), this Agreement shall take effect from the date of this Agreement without limit in time and shall cease and determine:

 

(a)                              by the unanimous agreement of all the Parties in writing; or

 

(b)                              upon the occurrence of an Event of Default.

 

8.2.                          Release of Parties from Obligations

 

Upon termination of this Agreement, each of the Parties shall (save, however, for Clauses 9, 11 and 12) be released from its obligations under this Agreement.

 

8.3.                          Rights of Parties Upon Termination

 

Upon termination of this Agreement, none of the Parties shall have any claims against the other(s) for costs, damages, compensation or otherwise save in respect of any right of action already accrued to any of the Parties in respect of any breach of this Agreement by the other Parties prior to such termination.

 

9.                                    DEFAULT

 

9.1.                          Event of Default

 

An Event of Default occurs in respect of a Party (“Defaulting Party”) if, prior to Completion: 

 

(a)                              material breach:

 

(i)                                     a Party commits a material breach of any obligation under this Agreement or any of the agreements referred to in this Agreement;

 

(ii)                                  the other Party gives written notice of the breach to the Defaulting Party; and

 

(iii)                               the other Party does not remedy the breach, if remediable, within twenty- eight (28) days after the date of the notice, subject to any longer period as agreed by the parties (such extended period not to exceed sixty (60) days);

 

(b)                                 that Party ceases or threatens to cease to carry on business; 

 

(c)                                  that Party suffers an Insolvency Event; or

 

(d)                                 a change in Control occurs in respect of that Party (except for a change of Control resulting from an initial public offering of shares by that Party or any of its Affiliates).

 

9.2.                          Effect of Event of Default

 

If an Event of Default occurs, the Parties not in default (each a “Non-Defaulting Party”) each has the right to terminate this Agreement pursuant to clause 9.1 without limitation to its other rights (including the right to claim damages under applicable laws) and the rights of the Non-Defaulting Parties are cumulative and non-exclusive.

 

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10.                             CONFIDENTIALITY

 

10.1.                   All Confidential Information shall be kept in the strictest confidence by the recipient unless or until compelled to disclose by judicial or administrative procedures or in the opinion of his counsel, by other requirements of law, or the recipient can reasonably demonstrate that:

 

10.1.1.           such Confidential Information is or part of it is, in the public domain (other than by virtue of the recipient’s actions and/or omissions) or that the information has also been received from a third party which, to the actual knowledge of the recipient is not subject to any confidentiality obligations with respect to such information whereupon, to the extent that it is public, this obligation shall cease; or

 

10.1.2.           such Confidential Information is required to be furnished to the bankers or investors or potential investors of any of the Parties or to any regulatory agencies as part of a public flotation exercise or a fund-raising exercise, involving any of the Parties or the Company, and in such cases, this obligation shall cease only to the extent required under the respective circumstances,

 

10.1.3.           provided that nothing herein shall prohibit any Party from disclosing any information referred to in this Clause to its auditors or other professional advisers or where such disclosure is required by law, any regulatory body or the rules and regulations of any recognised stock exchange.

 

11.                             MISCELLANEOUS

 

11.1.                     Entire Agreement

 

This Agreement embodies all the terms and conditions agreed upon between the Parties as to the subject matter of this Agreement and supersedes and cancels in all respects all previous agreements and undertakings, if any, between the Parties with respect to the subject matter hereof, whether such be written or oral.

 

11.2.                     Remedies and Waivers

 

No failure to exercise, nor any delay in exercising, on the part of any Party, any right or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise thereof or the exercise of any other right or remedy.

 

11.3.                     Assignment

 

This Agreement shall be binding on and shall enure for the benefit of the Parties and their respective successors and assigns. Any reference in this Agreement to any Party shall be construed accordingly. No Party may assign and/or transfer its rights, benefits and obligations under this Agreement to any person without the prior written consent of the other Parties.

 

12

 

11.4.                  Costs

 

Each Party shall bear its own legal, professional and other costs and expenses incurred by it in connection with the negotiation, preparation or completion of this Agreement.

 

11.5.                     Notices

 

All notices, demands or other communications required or permitted to be given or made hereunder shall be in writing and delivered by hand, by courier or prepaid registered post with recorded delivery, or by facsimile transmission (including e-mail) addressed to the intended recipient thereof at its address or at its facsimile number or e-mail address, and marked for the attention of such person (if any), designated by it to the other Party for the purposes of this Agreement or to such other address or facsimile number, and marked for the attention of such person, as a Party may from time to time duly notify the other in writing. The initial address, telephone number, fax number, e-mail address and person (if any) so designated by the Parties are set out below.

 

	
M17
    	
 
    
	
Address   :
    	
6F., No. 2, Sec.5,   Xinyi Rd., Xinyi Dist., Taipei City 110, Taiwan
    
	
Tel   :
    	
+86 138-1836-6202
    
	
E-mail Address   :
    	
shang@17.media
    
	
Attention   :
    	
Shang Koo
    
	
 
    	
 
    
	
IVP
    	
 
    
	
Address   :
    	
1-7-22-103 Yuigahama   Kamakura Kanagawa Japan 248-0014
    
	
Tel   :
    	
+81-80-5472-3115
    
	
E-mail Address   :
    	
akio@infinityventures.com/   yuri@infinityventures.com
    
	
Attention   :
    	
Yuri Kawamura
    
	
 
    	
 
    
	
SPV
    	
 
    
	
Address   :
    	
27 Hospital Road,   George Town, Grand Cayman KY1-9008 Cayman Islands
    
	
Tel   :
    	
+886 2547 2089
    
	
E-mail Address   :
    	
Joyce@abico.cc
    
	
Attention   :
    	
Joyce Hsieh
    
	
 
    	
 
    
	
Company
    	
 
    
	
Address   :
    	
3F Taikoen Building   1-3-8 Shibakoen Minatoku Tokyo 105-0011 Japan
    
	
Tel   :
    	
+81-50-3692-4021
    
	
E-mail Address   :
    	
hiro@17.media
    
	
Attention   :
    	
Hirofumi Ono
    

 

Any notice, demand or communication so served by hand, courier with recorded delivery, fax, e-mail or post shall be deemed to have been duly given (i) in the case of delivery by hand or by courier, when delivered; (ii) in the case of fax or e-mail, at the time of transmission provided that the sender does not receive any indication that the message has not been successfully transmitted to the intended recipient; (iii) in the case of post, on the second Business Day after the date of posting (if sent by local mail) and on the seventh Business Day after the date of posting (if sent by air mail), provided that in each case where delivery by hand, by courier or by fax occurs on a day which is not a Business Day or after 6pm on

 

13

 

a Business Day, service shall be deemed to occur at 9am on the next following Business Day. References to time in this Clause are to local time in the country of the addressee.

 

11.6.                     Illegality

 

If a court of competent jurisdiction holds any provision of this Agreement to be invalid, illegal or unenforceable (whether in whole or in part), such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability and the remaining provisions of this Agreement shall not be affected thereby.

 

11.7.                     Counterparts

 

This Agreement may be signed in any number of counterparts, all of which taken together shall constitute one and the same instrument. Any Party may enter into this Agreement by signing any such counterpart (which may include counterparts delivered by facsimile and/or electronic transmission) and each counterpart shall be as valid and effectual as if executed as an original.

 

11.8.                     Rights of Third Parties

 

A person who is not a party to this Agreement shall have no rights under the Contracts (Rights of Third Parties) Act (Chapter 53B) to enforce any term of this Agreement.

 

11.9.                     Variations

 

No variation of this Agreement (or of any of the documents referred to in this Agreement) shall be valid unless it is in writing and signed by or on behalf of each Party. The expression “variation” shall include any amendment, supplement, deletion or replacement however effected. Unless expressly agreed, no variation shall constitute a general waiver of any provisions of this Agreement, nor shall it affect any rights, obligations or liabilities under or pursuant to this Agreement which have already accrued up to the date of variation, and the rights and obligations of the Parties under or pursuant to this Agreement shall remain in full force and effect, except and only to the extent that they are so varied.

 

12.                               GOVERNING LAW AND DISPUTE RESOLUTION

 

12.1.                   This Agreement shall be governed by, and construed in accordance with, the laws of Singapore.

 

12.2.                    Any dispute shall be referred to and finally resolved by arbitration in accordance with the Arbitration Rules of the Singapore International Arbitration Centre (“SIAC”) which rules are deemed to be incorporated by reference in this provision. The number of arbitrators shall be one, who shall be jointly appointed by the Parties, or if the Parties are unable to agree on the appointment of the arbitrator within one (1) month of the notice of arbitration, to be appointed by the President of the Court of Arbitration of the SIAC. The seat of the arbitration shall be Singapore, and the language of the arbitration shall be English.

 

[The rest of this page has been intentionally left blank.]

 

14

 

SCHEDULE 1

CALCULATIONS OF FIRST TRANCHE AND SECOND TRANCHE

 

15

 

IN WITNESS WHEREOF the Parties hereto have entered into this Agreement on the day and year first above-written.

 

M17

 

	
Signed   by
    	
 
    	
}
    	
 
    
	
Name:
    	
Jiexian,   Joseph Phua
    	
/s/ Jiexian, Joseph Phua
    
	
Title:
    	
 
    	
 
    
	
for   and on behalf of
    	
 
    
	
M17 ENTERTAINMENT LIMITED
    	
 
    	
 
    
					

 

Execution page to the Sale and Purchase Agreement

 

 

IVP

 

	
Signed   by
    	
 
    	
}
    	
 
    
	
Name:
    	
Akio Tanaka
    	
/s/ Akio Tanaka
    
	
Title:
    	
 
    	
 
    
	
for   and on behalf of
    	
 
    
	
INFINITY E.VENTURES ASIA III, L.P.
    	
 
    	
 
    
					

 

Execution page to the Sale and Purchase Agreement

 

 

 

SPV

 

	
Signed by
    	
}
    	
 
    
	
Name:
    	
Joseph Huang
    	
/s/ Joseph Huang
    
	
Title:
    	
 
    	
 
    
	
for and on behalf of
    	
 
    
	
M17 Growth SPV LLC
    	
 
    	
 
    
					

 

Execution page to the Sale and Purchase Agreement

 

 

THE COMPANY

 

	
Signed by
    	
}
    	
 
    
	
Name:
    	
Ono Hirofumi
    	
/s/ Ono Hirofumi
    
	
Title:
    	
 
    	
 
    
	
for and on behalf of
    	
 
    
	
17 MEDIA JAPAN INC
    	
 
    	
 
    
					

 

Execution page to the Sale and Purchase AgreementExhibit 4.5

 

EMPLOYMENT
AGREEMENT

 

This
EMPLOYMENT AGREEMENT (the “Agreement”), is entered into as of            ,
2018 (the “Effective Date”) by and between Sinovac Biotech Ltd., a company incorporated and existing under
the laws of Antigua (the “Company”) and           ,
an individual (the “Executive”). Except with respect to the direct employment of the Executive by the Company,
the term “Company” as used herein with respect to all obligations of the Executive hereunder shall be deemed to include
the Company and all of its subsidiaries and affiliated entities (collectively, the “Group”).

 

RECITALS

 

A.          The
Company desires to continue to employ the Executive as its                     
  and to enter into an agreement embodying the terms of such employment and considers it essential to its best interests
and the best interests of its shareholders to retain the employment of the Executive by the Company during the term of Employment
(as defined below).

 

B.          The
Executive desires to accept such continued employment by the Company as                     
  during the term of Employment and upon the terms and conditions of this Agreement.

 

AGREEMENT

 

The
parties hereto agree as follows:

 

		1.	Position

 

The
Executive hereby accepts a position as                     
 (the “Employment”) of the Company.

 

		2.	TERM

 

Subject
to the terms and conditions of this Agreement, the initial term of the Employment shall be [three/two] years commencing on the
Effective Date, unless terminated earlier pursuant to the terms of this Agreement. Upon expiration of the initial [three/two]-year
term, the Employment shall be automatically extended for successive one-year terms unless either party gives the other party hereto
a one-month prior written notice to terminate the Employment prior to the expiration of such one-year term or unless terminated
earlier pursuant to the terms of this Agreement.

 

		3.	PROBATION

 

No
probationary period.

 

		4.	Duties
                                         and Responsibilities

 

The
Executive’s duties at the Company will include all jobs assigned by the Company’s [Board of the Directors (the “Board”)/Board
of the Directors (the “Board”) or the Company’s Chief Executive Officer, as the case may be/Chief Executive
Officer or the Vice President to whom he/she reports, as the case may be].

 

     

     

    

 

The
Executive shall devote all of his/her working time, attention and skills to the performance of his/her duties at the Company and
shall faithfully and diligently serve the Company in accordance with this Agreement, and the by-laws, guidelines, policies and
procedures of the Company approved from time to time by the Board.

 

The
Executive shall use his/her best efforts to perform his/her duties hereunder. The Executive shall not, without the prior written
consent of the Board, become an employee of any entity other than the Company and any subsidiary or affiliate of the Company,
and shall not be concerned or interested in any business or entity that competes
with that carried on by the Company (any such business or entity, a “Competitor”), provided that nothing in
this clause shall preclude the Executive from holding any shares or other securities of any Competitor that is listed on any securities
exchange or recognized securities market anywhere. The Executive shall notify the Company in writing of his/her interest in such
shares or securities in a timely manner and with such details and particulars as the Company may reasonably require.

 

		5.	NO
                                         BREACH OF CONTRACT

 

The
Executive hereby represents to the Company that: (i) the execution and delivery of this Agreement by the Executive and the performance
by the Executive of the Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene, the terms
of any other agreement or policy to which the Executive is a party or otherwise bound except for agreements entered into by and
between the Executive and any member of the Group pursuant to applicable law, if any; (ii) that the Executive has no information
(including, without limitation, confidential information and trade secrets) relating to any other person or entity that would
prevent, or be violated by, the Executive entering into this Agreement or carrying out his/her duties hereunder; (iii) that the
Executive is not bound by any confidentiality, trade secret or similar agreement (other than this) with any other person or entity
except for other member(s) of the Group, as the case may be.

 

		6.	Location

 

The
Executive will be based in Beijing, China. The Company reserves the right to transfer or second the Executive to any location
in China or elsewhere in accordance with its operational requirements.

 

		7.	Compensation
                                         and BenefitS

 

		(a)	Cash
                                         Compensation. The Executive’s cash compensation (including salary and bonus,
                                         but excluding any severance) (“Cash Compensation”) shall be provided by the
                                         Group and determined by the [compensation committee of the Board/Company’s Chief
                                         Executive Officer], subject to annual review and adjustment by the [compensation committee
                                         of the Board/compensation committee of the Board or the Company’s Chief Executive
                                         Officer, as the case may be/Company’s Chief Executive Officer or the Vice President
                                         to whom he/she reports, as the case may be].

 

		(b)	Equity
                                         Incentives. To the extent the Company adopts and maintains a share incentive plan,
                                         the Executive will be eligible for participating in such plan pursuant to the terms thereof
                                         as determined by the compensation committee of the Board [or the Company’s Chief
                                         Executive Officer, as the case may be].

 

    	 	2	 

     

    

 

		(c)	Benefits.
                                         The Executive is eligible for participation in any standard employee benefit plan of
                                         the Group that currently exists or may be adopted by the Group in the future, including,
                                         but not limited to, any retirement plan, life insurance plan, health insurance plan and
                                         travel/holiday plan.

 

		8.	Termination
                                         of the Agreement

 

		(a)	By
                                         the Company.

 

(i)
The Company may terminate the Employment with the Company and any Group member for cause, at any time, without notice or remuneration,
if (1) the Executive is convicted or pleads guilty to a felony or to an act of fraud, misappropriation or embezzlement, (2) the
Executive has been grossly negligent or acted dishonestly, in either case to the material detriment of the Company or any Group
member, (3) the Executive has engaged in actions amounting to gross misconduct or failed to perform his/her material duties hereunder
and such misconduct or failure continues after the Executive is afforded a reasonable opportunity to cure such failure, (4) the
Executive has died, or (5) the Executive has a disability that shall mean a physical or mental impairment which, as reasonably
determined by the Board, renders the Executive unable to perform the essential functions of his/her employment with the Company
and the Group, even with reasonable accommodation that does not impose an undue hardship on the Company, for more than 180 days
in any 12-month period, unless a longer period is required by applicable law in the jurisdiction in which Executive is based,
in which case that longer period would apply. For this purpose, “cause” shall not be deemed to include
[                      
  ].

 

(ii)
In addition, the Company may terminate the Employment without cause (including, for the avoidance of doubt, if the Company does
not extend the term pursuant to Section 2 hereof), at any time, upon one month’s written notice, and upon an involuntary
termination without cause by the Company, the Executive shall be entitled to the benefits provided in subsection (c) of this Section
8.

 

		(b)	By
                                         the Executive. The Executive may terminate the Employment at any time with a one-month
                                         prior written notice to the Company. Upon a termination by the Executive for Good Reason,
                                         the Executive shall be entitled to the benefits provided in subsection (c) of this Section
                                         8. “Good Reason” means any one or more of the following:

 

(i)
a material diminution in the Executive’s authority, duties or responsibilities;

 

(ii)
a material diminution in the Executive’s Cash Compensation opportunity from the prior year’s amount; or

 

(iii)
any action or inaction that constitutes a material breach by the Company under this Agreement.

 

    	 	3	 

     

    

 

For
this purpose, the parties agree that [                      
  ] will not be an event which
casues “Good Reason”.

 

Provided,
that Executive must provide notice of termination for Good Reason within 30 days of the occurrence of the event giving rise to
Good Reason, the Company does not cure any such event within 30 days of receipt of such notice and Executive must terminate his/her
employment for Good Reason within 30 days following the expiration of such cure period, or following notice from the Company that
it does not intend to cure such event.

 

In
addition, the Executive may resign prior to the expiration of the Agreement if such resignation is approved by the Board or an
alternative arrangement with respect to the Employment is agreed to by the Board.

 

		(c)	Compensation
                                         in Connection With an Involuntary Termination without Cause by the Company or a Termination
                                         by the Executive for Good Reason. Subject to other provisions of this Agreement,
                                         in the event a termination described in subsection (a)(ii) or for Good Reason as described
                                         in subsection (b) of this Section 8 occurs, the Company shall provide the Executive with
                                         the following severance compensation:

 

(i)
The Executive shall receive a cash payment equal to the sum of [two] times the Executive’s annual Cash Compensation for
the calendar year in which the Termination Date (as defined below) occurs; if the foregoing amount is not determinable at such
time, the Executive shall receive a cash payment equal to the sum of [two] times the Executive’s annual Cash Compensation
for the calendar year immediately preceding the calendar year in which the Termination Date occurs.

 

(ii)
Notwithstanding the terms of the share option agreements between the Company and the Executive, all share options held by the
Executive will become fully vested and exercisable on the Termination Date, and, notwithstanding the terms of the share incentive
plan then in effect, all such stock options shall remain exercisable for eighteen months following the Executive’s Termination
Date.

 

(iii)
Notwithstanding the terms of the restricted share award agreements between the Company and the Executive, all restricted shares
held by the Executive will become fully vested on the Termination Date.

 

(iv)
The Executive shall receive any amounts earned, accrued or owing but not yet paid to the Executive as of the Executive’s
Termination Date, including earned but unpaid base salary, unpaid reimbursements of business expenses, and accrued but unpaid
vacation time, which shall be payable in a lump sum, and any benefits accrued or earned in accordance with the terms of any applicable
benefit plans and programs of the Company.

 

(v)
The cash severance benefits under this Section 8(c) will be offset by any severance benefits that Executive is entitled to by
applicable law in the jurisdiction in which he/she is based. The Executive is entitled to receive any severance benefits and other
benefits related to Termination under any other employment or other agreement with any Group member.

 

    	 	4	 

     

    

 

(vi)
All payments and benefits under Section 8(c) (other than 8(c)(iv)) shall be subject to Executive’s execution of a general
release of claims substantially in the form attached as Exhibit B within 45 days of the Termination Date. Any payments due pursuant
to this Section 8(c) shall be made in a lump sum within ten days following the effective date of the release. “Termination
Date” shall mean the last day of Executive’s employment with the Company.

 

		(d)	Notice
                                         of Termination. Any termination of the Executive’s employment under this Agreement
                                         shall be communicated by written notice of termination from the terminating party to
                                         the other party. The notice of termination shall indicate the specific provision(s) of
                                         this Agreement relied upon in effecting the termination.

 

		9.	EMPLOYEE
                                         INVENTIONS

 

		(a)	The
                                         term “Employee Inventions” means any and all processes, inventions, technology,
                                         computer programs, original works or authorship, designs, formulas, patents, discoveries,
                                         copyrights and all improvements, rights, and claims that are conceived, developed or
                                         reduced to practice by the Executive alone or with others.

 

		(b)	Any
                                         and all Employee Inventions that the Executive has conceived or made, or may conceive
                                         or make during the term of the Employment using the equipment, supplies, facilities or
                                         trade secret of the Company or any other member of the Group, directly or indirectly,
                                         connected with the business of the Company or any other member of the Group, shall be
                                         the sole and exclusive property of the Company or as it may designate, any other member
                                         of the Group. The Executive agrees that all patentable and copyrightable works by the
                                         Executive while working on company projects or under the Company’s direction, in
                                         connection with the Company's or the Group’s business are “works made for
                                         hire” and the Executive hereby assigns all proprietary rights, including patent
                                         and copyright, in these works to the Company or as it may designate, any other member
                                         of the Group without further compensation.

 

		(c)	The
                                         Executive further agrees to (i) disclose promptly to the Company all such Employee Inventions
                                         that the Executive has made or may make while working on company projects solely, jointly
                                         or commonly with others, (ii) assign all such Employee Inventions to the Company or as
                                         it may designate, any other member of the Group, and (iii) execute and sign any and all
                                         applications, assignments or other instruments that the Company may deem necessary in
                                         order to enable it, at its expense, to apply for, prosecute, and obtain patents, copyrights,
                                         or other proprietary rights in China and foreign countries, or in order to transfer to
                                         the Company or as it may designate, any other member of the Group all right, title and
                                         interest in such Employee Inventions.

 

		(d)	The
                                         provisions set forth in Exhibit A shall apply.

 

    	 	5	 

     

    

 

		10.	CONFIDENTIAL
                                         INFORMATION.

 

		(a)	The
                                         Executive recognizes and acknowledges that he/she will have access to certain information
                                         of the Company or the Group and that such information is confidential and constitutes
                                         valuable, special and unique property of the Company or the Group. The parties agree
                                         that the Company and the Group have a legitimate interest in protecting the Confidential
                                         Information (as defined in Exhibit A), which includes all the commercial and technological
                                         secrets and know-how and other confidential information of the Company or the Group.
                                         The parties agree that each of the Company and other members of the Group is entitled
                                         to protection of its interests in the Confidential Information. The Executive shall not
                                         at any time, either during or subsequent to the term of this Agreement, disclose to others,
                                         use, copy or permit to be copied, except in pursuance of his/her duties for an on behalf
                                         of the Company, it successors, assigns or nominees, any Confidential Information (regardless
                                         of whether developed by the Executive) without the prior written consent of the Company.

 

		(b)	The
                                         parties agrees that in the event of a violation of this covenant against non-use and
                                         non-disclosure of Confidential Information, that the Company or the relevant member of
                                         the Group shall be entitled to a recovery of damages from Executive and/or an injunction
                                         against the Executive for the breach or violation or continued breach or violation of
                                         this covenant or the confidential agreement mentioned above.

 

		(c)	The
                                         Executive shall not issue any publications and papers containing any Confidential Information
                                         without the Company’s prior written consent.

 

		(d)	The
                                         provisions set forth in Exhibit A shall apply.

 

		11.	NON-COMPETITION

 

		(a)	During
                                         the Employment Term, the Executive shall devote his/her full business efforts and time
                                         to the Company. Executive agrees, during the Employment Term for a period of 6 months
                                         thereafter, not to actively engage in any other employment, occupation, consulting activity
                                         or business referral for any direct or indirect remuneration without the prior approval
                                         of the Company; provided, however, that Executive may serve in any capacity with any
                                         civic, educational or charitable organization, or as a member of corporate Boards of
                                         Directors or committees thereof, without the approval of the Company, unless there is
                                         a conflict of interest.

 

		(b)	During
                                         the Employment Term, the Executive shall declare any shareholdings and interest in other
                                         companies in which there is a conflict interest with the Company.

 

		(c)	The
                                         provisions set forth in Exhibit A shall apply.

 

		12.	Withholding
                                         Taxes

 

Notwithstanding
anything else herein to the contrary, the Company may withhold (or cause there to be withheld, as the case may be) from any amounts
otherwise due or payable under or pursuant to this Agreement such national, provincial, local or any other income, employment,
or other taxes as may be required to be withheld pursuant to any applicable law or regulation.

 

    	 	6	 

     

    

 

		13.	Assignment

 

This
Agreement is personal in its nature and neither of the parties hereto shall, without the consent of the other, assign or transfer
this Agreement or any rights or obligations hereunder; provided, however, that (i) the Company may assign or transfer this Agreement
or any rights or obligations hereunder to any member of the Group without such consent, and (ii) in the event of a merger, consolidation,
or transfer or sale of all or substantially all of the assets of the company with or to any other individual(s) or entity, this
Agreement shall, subject to the provisions hereof, be binding upon and inure to the benefit of such successor and such successor
shall discharge and perform all the promises, covenants, duties, and obligations of the Company hereunder.

 

		14.	Severability

 

If
any provision of this Agreement or the application thereof is held invalid, the invalidity of that certain provision shall not
affect the validity of other provisions or applications of this Agreement, which can be given effect without the invalid provisions
or applications and to this end the provisions of this Agreement are declared to be severable.

 

		15.	Entire
                                         Agreement

 

This
Agreement constitutes the entire agreement and understanding between the Executive and the Company regarding the terms of the
Employment and supersedes all prior or contemporaneous oral or written agreements concerning such subject matter. [This Agreement
specifically supersedes and replaces the Employment Agreement dated ________________ between Executive and the Company.] The Executive
acknowledges that he/she has not entered into this Agreement in reliance upon any representation, warranty or undertaking that
is not set forth in this Agreement. Any amendment to this Agreement must be in writing and signed by the Executive and the Company.

 

		16.	Governing
                                         Law

 

This
Agreement shall be governed by and construed in accordance with the law of the State of New York, United States.

 

		17.	AMENDMENT

 

This
Agreement may not be amended, modified or changed (in whole or in part), except by a formal, definitive written agreement expressly
referring to this Agreement, which agreement is executed by both of the parties hereto.

 

		18.	ARBITRATION

 

Any
dispute or controversy based on, arising under or relating to this Agreement shall be settled exclusively by final and binding
arbitration conducted by Hong Kong International Arbitration Centre under the UNCITRAL Arbitration Rules. The arbitration shall
be conducted before a panel of three arbitrators. The Executive shall select one arbitrator and the Company shall select the second
arbitrator. The Chairman of the Hong Kong International Arbitration Centre shall select the third arbitrator. The arbitration
shall be commenced and held in Hong Kong. The languages of the Arbitration shall be the Chinese and English languages. All aspects
of the arbitration shall be treated as confidential and neither the parties nor the arbitrators may disclose the content or results
of the arbitration, except as necessary to comply with legal or regulatory requirements. The result of the arbitration shall be
binding on the parties and judgment on the arbitrators’ award may be entered in any court having jurisdiction.

 

    	 	7	 

     

    

 

		19.	Waiver

 

Neither
the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall
operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other
or further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power
or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to
any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted
such waiver.

 

		20.	Notices

 

All
notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be
deemed to have been duly given and made if (i) delivered by hand, (ii) otherwise delivered against receipt therefor, or (iii)
sent by a recognized courier with next-day or second-day delivery to the last known address of the other party.

 

		21.	Counterparts

 

This
Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose
signature appears thereon, and all of which together shall constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties
reflected hereon as the signatories. This Agreement may be signed electronically, and all pdf, jpeg or other electronic photographic
copies of such signed counterparts may be used in lieu of the originals for any purpose.

 

		22.	NO
                                         INTERPRETATION AGAINST DRAFTER

 

Each
party recognizes that this Agreement is a legally binding contract and acknowledges that it, he/she has had the opportunity to
consult with legal counsel of choice. In any construction of the terms of this Agreement, the same shall not be construed against
either party on the basis of that party being the drafter of such terms.

 

[Remainder
of this page intentionally has been intentionally left blank.]

 

    	 	8	 

     

    

 

IN WITNESS WHEREOF, this Agreement
has been executed as of the date first written above.

 

	 	SINOVAC
    BIOTECH LTD.
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

 

	 	 	 	 
	 	By:	 	 
	 	Name:	 	 

 

    	 	9	 

     

    

 

Exhibit
A

 

 

 

1.       Non-Disclosure

 

A.       The
Executive will hold all Confidential Information in confidence and will not disclose, use, copy, publish, summarize, or remove
from the premises of Company any Confidential Information, except (a) as a necessary to carry out his/her assigned responsibilities
as a Company employee, and (b) after termination of his/her employment, only as specifically authorized in writing by an officer
of Company. However, the Executive shall not be obligated under this paragraph with respect to information if such information
is or becomes readily publicly available without restriction through no fault of his/hers. “Confidential Information”
shall mean all information related to any aspect of the business of Company or the Group that is either information not known
by actual or potential competitors of Company or any other member of the Group or is proprietary information of Company or any
other member of the Group, whether of a technical nature or otherwise. Confidential Information includes inventions, disclosures,
processes, systems, methods, formulae, devices, patents, patent applications, trademarks, intellectual properties, instruments,
materials, products, patterns, compilations, programs, techniques, sequences, designs, research or development activities and
plans, specifications, computer programs, source codes, costs of production, prices or other financial data, volume of sales,
promotional methods, marketing plans, lists of names or classes of customers or personnel, lists of suppliers, business plans,
business opportunities or financial statements.

 

B.       The
Executive will safeguard and keep confidential the proprietary information of customers, vendors, consultants and other parties
with which Company or any other member of the Group does business to the same extent as if it were Confidential Information. The
Executive will not, during his/her employment with Company or otherwise, use or disclose to the Company any confidential, trade
secret or other proprietary information or material of any previous employer or other person, and the Executive will not bring
onto the Company’s premises any unpublished document or any other properly belonging to any former employer without the
written consent of that former employer.

 

C.       In
compliance with the requirements of the U.S. Defend Trade Secrets Act Executive acknowledges the following: (i) Executive will
not be held criminally or civilly liable under any U.S. federal or state trade secret law for the disclosure of a trade secret
that is made in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting
or investigating a suspected violation of law, (ii) Executive will not be held criminally or civilly liable under any federal
or state trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit
or other proceeding, if such filing is made under seal and (iii) if Executive files a lawsuit for retaliation by the Company for
reporting a suspected violation of law, then Executive may disclose trade secrets to his/her attorney and use the trade secret
information in the court proceeding if he/she: (A) files any document containing the trade secret under seal; and (B) does not
disclose the trade secret, except pursuant to court order.

 

    	 	10	 

     

    

 

D.       For
the avoidance of doubt, nothing in this Agreement will be construed to prohibit Executive from filing a charge with, reporting
possible violations to, or participating or cooperating with any governmental agency or entity, including but not limited to the
U.S. Department of Justice, the Securities and Exchange Commission, U.S. Congress, the U.S. Inspector General, or any government
agency or making other disclosures that are protected under the whistleblower, anti-discrimination, or anti-retaliation provisions
of U.S. federal, state or local law or regulation; provided, however, that Executive may not disclose information of the Company
or any of its affiliates that is protected by the attorney-client privilege, except as otherwise required by law.

 

2.       Non-Competition

 

A.       During
the Executive’s employment with the Company, the Executive will perform for the Company such duties as it may designate
from time to time and will devote his/her full time and best efforts to the business of the Company and will not, without the
prior written approval of (i) an officer for the Company if he/she is not an executive officer of the Company or (ii) the board
of directors of the Company if he/she is an executive officer for the Company: (a) engage in any other professional employment
or consulting, or (b) directly or indirectly participate in or assist any business that is a current or potential supplier, customer,
or competitor of the Company.

 

B.       The
Executive agrees that during the term of his/her employment with the Company (whether or not during business hours), he/she will
not engage in any activity that is in any way competitive with the business or demonstrably anticipated business of the Company,
and he/she will not assist any other person or organization in competing or in preparing to compete with any business or demonstrably
anticipated business of the Company.

 

C.       During
the terms of his/her employment by the Company and for one year thereafter, The Executive shall not directly or indirectly, without
the prior written consent of the Company, solicit, recruit, encourage or induce any employees, officers, consultants, contractors
or subcontractors of the Company to leave the employ of the Company, either on his/her own behalf or on behalf of any other person
or entity.

 

3.       Proprietary
Information

 

A.       Upon
termination of his/her employment, the Executive will promptly return to the Company all items containing or embodying Confidential
Information (including all copies), except that he/she may keep his/her personal copies of (i) his/her compensation records, (ii)
materials distributed to shareholders generally and (iii) this Agreement. All papers, records, data, notes, drawings, files, documents,
samples, devices, products, equipment and other materials, including copies and in whatever form relating to the business of Company
that the Executive possesses or creates as a result of his/her employment, whether or not confidential, are the sole and exclusive
property of the Company. In the event of the termination or expiration of his/her employment, the Executive will promptly deliver
all such materials to the Company.

 

    	 	11	 

     

    

 

B.       All
inventions, ideas, designs, circuits, schematics, formulas, algorithms, trade secrets, works of authorship, developments, processes,
techniques, improvements and related know-how that result from work performed by the Executive, alone or with others, on behalf
of the Company or through access to Confidential Information or property, whether or not patentable or copyrightable (collectively
“Inventions”) shall be the property of the Company, and to the extent permitted by law, shall be “works
made for hire”. The Executive hereby assigns and agrees to assign to the Company or its designee, without further consideration,
his/her entire right, title and interest in and to all Inventions, including all rights to obtain, register, perfect and enforce
patents, copyrights and other intellectual property protection for inventions. The Executive will disclose promptly and in writing
to the individual designated by the Company or to his/her immediate supervisor all Inventions that he/she has made or reduced
to practice. During his/her employment and for four years after, the Executive will assist the Company (at its expense) to obtain
and enforce patents, copyrights and other forms of intellectual property protection on Inventions. If the Executive uses or discloses
his/her own confidential information or intellectual property when acting within the scope of his/her employment or otherwise
on behalf of the Company, the Company will have and the Executive hereby grants the Company a perpetual, irrevocable, worldwide
royalty-free, non-exclusive, sublicensable right and license to exploit and exercise all such confidential information and intellectual
property rights.

 

C.       The
Executive has not entered into, and he/she agrees he/she will not enter into, any agreement either written or oral in conflict
with this Agreement or his/her employment with the Company. The Executive will not violate any agreement with or rights of any
third party or, except as expressly authorized by the Company in writing hereafter, use or disclose his/her own or any third party’s
confidential information or intellectual property when acting within the scope of his/her employment or otherwise on behalf of
the Company. Further, the Executive has not retained anything containing any confidential information of a prior employer or other
third party, whether or not created by him/her.

 

4.       Miscellaneous

 

The
Executive agrees that his/her obligation under paragraphs 1, 2 and 3 of this exhibit shall continue in effect after termination
of his/her employment, regardless of the reason or reasons for termination, and whether such termination is voluntary of involuntary
on his/her part, and that the Company is entitled to communicate the Executive’s obligations under this exhibit to any further
employer or potential employer of his/hers. The Executive’s obligations under paragraphs 1, 2 and 3 also shall be binding
upon his/her heirs, executors, assigns, and administrators and shall inure to the benefit of the Company, its subsidiaries, successors
and assigns.

 

    	 	12	 

     

    

 

Exhibit
B

 

 

[The
language in this General Release of Claims may change based on legal developments and evolving best practices; this form is provided
as an example of what will be included in the final document.]

 

GENERAL
RELEASE OF CLAIMS

 

This General
Release of Claims (“Release”) is entered into as of this                 day of _________________, 20__, by [_______]
(“Executive”) and Sinovac Biotech Ltd., a company incorporated and existing under the laws of Antigua
(“Employer”).

 

1.       General
Release of the Company. In consideration of the receipt of the severance and other benefits under Section 8(c) of the
Employment Agreement dated _____, 2018 by and between Executive and the Employer (the “Employment Agreement”),
(together with its direct and indirect subsidiaries, the “Company”, and, together with Employer and
Executive, the “Parties”) and for other valuable consideration, the receipt and adequacy of which are
hereby acknowledged, Executive, on his or her own behalf and on behalf of his or her heirs, family members, executors, agents,
and assigns, hereby:

 

a)       forever
fully and irrevocably releases, waives, and discharges the Employer and the Group (as defined in the Employment Agreement), and
each of their parents, subsidiaries, affiliates, owners and/or the predecessors or successors of any of them (together with their
respective current and former, assigns, agents, directors, officers, employees, consultants, contractors, stockholders and representatives,
and all persons acting by, through, under or in concert with them, or any of them, in any part of the world, the “Released
Parties”) from any and all manner of action or actions, inaction or inactions, cause or causes of action, whether
in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, losses, costs,
attorneys’ fees or expenses, of any nature whatsoever, known or unknown, fixed or contingent ( hereinafter collectively
called “Claims”), which Executive now has or may hereafter have against the Released Parties, or any
of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof and whether such Claim
arises in the People’s Republic of China, the United States or anywhere else in the world. The Claims released hereunder
include, without limiting the generality of the foregoing, any Claims in any way arising out of, based upon, or related to Executive’s
employment or the termination of Executive’s employment with the Released Parties, or any of them, any alleged breach of
any express or implied contract of employment, breach of implied covenant of good faith and fair dealing, breach of public policy,
libel, slander, defamation, breach of privacy, wrongful or unfair discharge/termination, infliction of emotional distress, or
any alleged torts or other alleged legal restrictions on any Released Party, and any alleged violation of any statute or ordinance
including, without limitation any statutory claims. Executive warrants that he or she has no such Claims as at the date that he
or she signs this Release. 

 

b)       Notwithstanding
the foregoing, the release provided by this Section 1 shall not extend to (i) any vested rights Executive may have to receive
payment of the severance or other benefits described in Section 8(c) of the Employment Agreement, (ii) any claims for payment
of earned and unpaid wages or reimbursement of business expenses owed to the Executive under the terms of any Company policy,
(iii) any Claim for indemnification under the Company’s organizational documents or under any directors and officers liability
insurance, or (iv) any Claims that cannot be waived as a matter of law (each, an “Unreleased Claim”).

 

2.       Proceedings.
Executive hereby acknowledges and confirms that Executive has not filed, and agrees not to initiate or cause to be initiated on
his or her behalf, any complaint, charge, claim or proceeding against the Released Parties before any national or local labor
arbitration tribunal, authority, court or otherwise, whether in the People’s Republic of China, the United States or any
other jurisdiction in the world relating to any Claims released by employee hereunder, including any such Claims relating to his
or her employment or the termination of his or her employment, other than with respect to the obligations of the Company to Executive
under Section 8(c) of the Employment Agreement (each, individually, a “Proceeding”), and agrees not
to participate voluntarily in any Proceeding. Executive waives any right he or she may have to benefit in any manner from any
relief (whether monetary or otherwise) (i) arising out of any Proceeding and/or (ii) in connection with any claim pursued by any
administrative agency on Executive’s behalf and, in the event Executive is awarded money, compensation or benefits Executive
shall immediately remit such award to the Company.

 

    	 	13	 

     

    

 

3.       Transfer
of Claims. Executive represents and warrants that there has been no assignment or other transfer of any interest in any
Claim (other than Unreleased Claims) which he or she may have against the Released Parties, or any of them, and Executive agrees
to indemnify and hold the Released Parties, and each of them, harmless from any liability, claims, demands, damages, costs, expenses
and attorneys’ fees incurred by the Released Parties, or any of them, as the result of any such assignment or transfer or
any rights or Claims under any such assignment or transfer. It is the intention of the Parties that this indemnity does not require
payment as a condition precedent to recovery by the Released Parties against Executive under this indemnity.

 

4.       Damages.
Executive agrees that if he or she hereafter commences any suit arising out of, based upon, or relating to any of the Claims released
hereunder or in any manner asserts against the Released Parties, or any of them, any of the Claims released hereunder, then Executive
agrees to pay to the Released Parties, and each of them, in addition to any other damages caused to the Released Parties thereby,
all attorneys’ fees incurred by the Released Parties in defending or otherwise responding to said suit or Claim.

 

5.       Non-Disparagement.
Executive agrees not to disparage the Company, any Group member or any of their respective past, current or future affiliates,
or any of the officers, directors, employees, shareholders, and/or agents of the Company, any Group member or any of its respective
affiliates, in any manner intended or reasonably likely to be harmful to any of them or the business, business reputation, or
personal reputation of any of them.

 

6.       No
Admission. Executive further understands and agrees that neither this Release nor the payment of any sum of money or consideration
hereunder shall constitute, or be deemed or construed to constitute, at anytime for any purpose, as an admission of any liability,
wrongdoing, or unlawful conduct of any kind, whatsoever by the Released Parties, or any one of them, and each of the Released
Parties specifically denies any violation of any local or national law, whether regulatory, common or statutory. Additionally,
this Release, its existence or its terms will not be admissible in any proceeding other than a proceeding to enforce the terms
of this Release.

 

7.       Severability.
The provisions of this Release are severable. If any provision is held to be invalid or unenforceable, it shall not affect
the validity or enforceability of any other provision.

 

8.       Choice
of Law. This Release shall in all respects be governed and construed in accordance with the laws of the People’s
Republic of China, including all matters of construction, validity and performance, without regard to conflicts of law principles.

 

9.       Governing
Language. The English version of this Release shall in all respects be the original, governing instrument and understanding
of the Parties. In the event of any conflict between this version of this Release and any subsequent translation into any other
language, the provisions of the English version shall prevail.

 

10.     Understanding.
By signing this Release, Executive hereby acknowledges and confirms the following: (i) Executive has had the opportunity to
seek independent legal advice with respect to the matters addressed in this Release and fully understands them; (ii) Executive
knowingly and voluntarily accepts the terms of this Release for the purpose of making full and final compromise, adjustment and
settlement of all claims as aforesaid; (iii) Executive is not relying on any representation or statement by any other person in
entering into this Release (except as are expressly set forth in this Release); and (iv) Executive is providing this release and
discharge only in exchange for consideration in addition to anything of value to which Executive is already entitled.

 

    	 	14	 

     

    

 

11.   Rights
of Released Parties. Each of the Released Parties may in his, her or its own right enforce the provisions of this
Release.

 

IN
WITNESS WHEREOF, Executive has executed this Release as a deed as of this ___ day of __________, 20__.

 

	SIGNED
    by [NAME OF EXECUTIVE]
	 	 	 	 
	 	 	 	 
	Signature:	 	 	 
	 	 	 	 
	in
    the presence of:
	 	 	 	 
	Witness’s	 	 	 
	Signature:	 	       	 
	 	 	 	 
	Full
    Name:	 		 
	 	 	 	 
	Address:	 		 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	SIGNED
    by [Executive] on behalf of Sinovac Biotech Ltd.,
	 	 	 	 
	 	 	 	 
	Signature:	 		 
	 	 	 	 
	in
    the presence of :
	 	 	 	 
	Witness’s	 	 	 
	Signature:	 		 
	 	 	 	 
	Full
    Name:	 		 
	 	 	 	 
	Address:	 		 
	 	 	 	 
	 	 	 	 

 

    	 	15

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