Document:

EX-4.1

 Exhibit 4.1 

[Form of 2.433% Fixed/Floating Rate Notes due 2023] 
  

			
	 Registered No.
	 	CUSIP No. 38141GVY7
		 	ISIN No. CA38141GVY74

 (Face of Security) 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE AS DEFINED HEREIN ON THE REVERSE OF THIS SECURITY AND IS REGISTERED IN THE NAME OF A
DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A
NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
CDS CLEARING AND DEPOSITORY SERVICES INC. (“CDS”) TO THE GOLDMAN SACHS GROUP, INC. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN RESPECT THEREOF IS REGISTERED IN THE NAME OF CDS &
CO., OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS (AND ANY PAYMENT IS MADE TO CDS & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED HOLDER HEREOF, CDS & CO., HAS A PROPERTY INTEREST IN THE SECURITIES REPRESENTED BY THIS CERTIFICATE HEREIN AND IT IS A VIOLATION OF ITS RIGHTS FOR ANOTHER
PERSON TO HOLD, TRANSFER OR DEAL WITH THIS CERTIFICATE. 
 UNLESS PERMITTED UNDER SECURITIES LEGISLATION, A HOLDER OF THIS SECURITY MUST NOT TRADE
THE SECURITY BEFORE THE DATE THAT IS FOUR (4) MONTHS AND A DAY AFTER THE LATER OF (I) APRIL 26, 2017, AND (II) THE DATE THE GOLDMAN SACHS GROUP, INC. BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF CANADA. 

THIS SECURITY IS NOT A BANK DEPOSIT AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY, NOR IS IT AN OBLIGATION
OF, OR GUARANTEED BY, A BANK. 

  
 (Face of Security
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 THE GOLDMAN SACHS GROUP, INC. 

2.433% Fixed/Floating Rate Notes due 2023 

The Goldman Sachs Group, Inc., a corporation duly organized and existing under the laws of the State of Delaware (herein called the
“Company”, which term includes any successor Person under the Indenture as defined on the reverse of this Security), for value received, hereby promises to pay to
                                         
                               , or registered assigns, the principal sum of
                                 on April 26, 2023. The Company further promises to
pay interest on said principal sum as follows: 
 Prior to April 26, 2022. The Company will pay interest on the principal sum hereof at the rate
of 2.433% per annum from and including April 26, 2017 (or from the most recent Interest Payment Date prior to April 26, 2022 to which interest has been paid or duly provided for) to but excluding April 26,
2022 (or, if the Maturity of the principal hereof occurs prior to such date, until the earlier of such date or the date the principal is paid or made available for payment), payable semi-annually). Such interest will be payable in arrears in equal
installments on April 26 and October 26 in each year, commencing on October 26, 2017 and including April 26, 2022 (each an “Interest Payment Date”), and at any Maturity of the principal hereof prior to such date. 

 On and after April 26, 2022. The Company will pay interest on the principal sum hereof at a floating rate per annum
of 1.15% above CDOR, determined in accordance with the provisions below and reset effective each Interest Reset Date, from and including April 26, 2022 (or from the most recent Interest Payment Date thereafter to which interest has
been paid or duly provided for) until the principal hereof is paid or made available for payment. Such interest will be payable quarterly in arrears on January 26, April 26, July 26 and October 26 in each year,
commencing on July 26, 2022 (each an “Interest Payment Date”), and at the Maturity of the principal hereof on or after April 26, 2022. 

Any installment of interest that is overdue shall also bear interest at the same rate in effect during the Interest Period ending on the day
prior to the due date of such installment of interest (to the extent that the payment of such interest shall be legally enforceable), from the date any such overdue installment first becomes due until it is paid or made available for payment.
Notwithstanding the foregoing, interest on any installment of interest that is overdue shall be payable on demand, subject to the provisions in the Indenture. 

Interest on this Security payable, for a full interest period, on an Interest Payment Date on or before April 26, 2022 shall be computed
on a 30/360 basis, meaning a 360-day year of twelve 30-day months (and thus shall be payable in equal, semi-annual installments), and the amount of interest payable, for any period less than a full
semi-

  
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annual period, on or before April 26, 2022 shall be computed on an Actual/365 (Fixed) basis, meaning a 365-day year and the actual number of days elapsed in such partial period. Interest on
this Security payable on an Interest Payment Date after April 26, 2022 shall be computed on an Actual/365 (Fixed) basis as well. Payments of interest on this Security with respect to any Interest Payment Date, or at the Maturity of the
principal hereof, will include interest accrued to but excluding such Interest Payment Date or the date of such Maturity, as the case may be. In the case of interest payable for any period less than a full semi-annual period, accrued interest from
the date of issue or from the last date to which interest has been paid or duly provided for shall be calculated by the Calculation Agent by multiplying the principal amount by an accrued interest factor. Such accrued interest factor shall be
computed by adding the interest factors calculated for each day from and including the date of issue or from and including the last date to which interest has been paid or duly provided for, to but excluding the date for which accrued interest is
being calculated. The interest factor for each such day shall be expressed as a decimal and computed by dividing the interest rate (also expressed as a decimal) in effect on such day by 365. 

Notwithstanding the foregoing, interest on this Security shall not be higher than the maximum rate permitted by New York law, as it may be
modified by U.S. law of general applicability. 
 For the purposes of this Security, CDOR will be determined in the following manner: 

(i) CDOR will be an interest rate per annum equal to the arithmetic average (rounded to the upwards to the nearest whole multiple of
0.00001% place) of the annual bid rates of interest for CAD bankers’ acceptances having a 90-day term to maturity and a principal amount equal to
CAD                                 (or a term and face amount as closely as possible
comparable to such maturity and principal amount) that appears on the Bloomberg Screen CDOR Page as of 10:00 a.m. (Toronto time) on the Interest Reset Date for such Interest Period. 

(ii) If fewer than three such bid rates appear on the Bloomberg Screen CDOR Page as of 10:00 a.m. (Toronto time) on the related Interest Reset
Date, the CDOR for such Interest Period will be the rate per annum equal to the arithmetic average (rounded upwards to the nearest whole multiple of 0.00001%) of the bid rate quotations for Canadian dollar bankers’ acceptances, having a
90-day term to maturity and a principal amount equal to
CAD                                 (or a term and principal amount as closely as
possible comparable to such maturity and principal amount), as of 10:00 a.m. (Toronto time) on the Interest Reset Date for such Interest Period by the principal Toronto office of three banks named in Schedule I of the Bank Act (Canada) selected by
the Company and identified to the Calculation Agent on or about such date. 

  
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 For all purposes of this Security: 

The term “Bloomberg Screen CDOR Page” means the display designated as the “CDOR03” page on the Bloomberg Professional
Service (or such other page as may replace the CDOR page on that service) for the purpose of displaying, among other things, Canadian dollar bankers’ acceptance rates. 

The term “Interest Period” means the period beginning on and including April 26, 2017 to, but excluding, the first Interest
Payment Date and each successive period from and including an Interest Payment Date to but excluding the next Interest Payment Date (or, in any such case if applicable, to the Maturity of the principal hereof), subject to the provisions under
“Payments Due on a Business Day” below. 
 The term “Interest Reset Date” means every
January 26, April 26, July 26 and October 26, commencing on April 26, 2022, on each of which the rate of interest on this Security will be reset. If any Interest Reset Date after April 26, 2022 would otherwise
be a day that is not a Business Day with respect to this Security, such Interest Reset Date shall be the next succeeding day that is a Business Day with respect to this Security, unless that Business Day is in the next succeeding calendar
month, in which case such Interest Reset Date will instead be the immediately preceding Business Day. Notwithstanding the foregoing, the Interest Reset Date on April 26, 2022 and any Interest Reset Date that falls on the Maturity of the
principal hereof will not be changed, provided that, if any such Interest Reset Date is not a Business Day with respect to this Security, the determination of any floating rate of interest that takes effect on such date shall be determined on
the next succeeding Business Day. 
 Other than calculations of CDOR as described above, all percentages resulting from any calculation with
respect to this Security shall be rounded upward or downward, as appropriate, to the next higher or lower one hundred-thousandth of a percentage point (e.g., 9.876541% (or .09876541) being rounded down to 9.87654% (or .0987654) and 9.876545%
(or .09876545) being rounded up to 9.87655% (or .0987655)). All amounts used in or resulting from any calculation with respect to this Security will be rounded upward or downward, as appropriate, to the nearest cent with one-half or more of a cent
being rounded upward. 
 The interest so payable, and punctually paid or made available for payment, on any Interest Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the calendar day (whether or not
a Business Day, as defined below) next preceding such Interest Payment Date (or, if such interest is to be paid on another day as provided below, next preceding such other day). Any interest so payable, but not punctually paid or made available for
payment, on any Interest Payment Date will forthwith cease to be payable to 

  
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the Holder on such Regular Record Date and such Defaulted Interest may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close
of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof being given to the Holder of this Security not less than 10 days prior to such Special Record Date, or be paid in any other
lawful manner not inconsistent with the requirements of any securities exchange on which this Security may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture. For the purpose of
determining the Holder at the close of business on any relevant record date when business is not being conducted, the close of business will mean 5:00 P.M., New York City time, on that day. 

Solely for the purposes of disclosure under the Interest Act (Canada), the yearly rate of interest to which interest calculated under
the Security for any period in any calendar year (the “calculation period”) is equivalent, is the rate payable under the Security in respect of the calculation period multiplied by a fraction the numerator of which is the actual
number of days in such calendar year and the denominator of which is the actual number of days in the calculation period. 
 Currency
and Manner of Payment 
 Payment of the principal of and premium or interest on this Security will be made in Canadian dollars.
Notwithstanding any other provision of this Security or the Indenture, if this Security is a Global Security, any payment in respect of this Security may be made pursuant to the Applicable Procedures of the Depositary as permitted in the Indenture.

 Subject to the prior paragraph and except as provided in the next paragraph, payment of any amount payable on this Security will be made
at the office or agency of the Company maintained for that purpose in Toronto, Ontario (and at any other office or agency maintained by the Company for that purpose), against surrender of this Security in the case of any payment due at the Maturity
of the principal hereof (other than any payment of interest that first becomes due on an Interest Payment Date); provided, however, that, at the option of the Company and subject to the next paragraph, payment of interest may be made
by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register. 
 Subject to the
second preceding paragraph, payment of any amount payable on this Security will be made by wire transfer of immediately available funds to an account maintained by the payee with a bank located in Toronto, Ontario if (i) the principal of this
Security is at least CAD1,000,000 and (ii) the Holder entitled to receive such payment transmits a written request for such payment to be made in such manner to the Trustee at its Corporate Trust Office, Attention: Corporate Trust
Administration, on or before the fifth Business Day before the day on which such payment is to be made; 

  
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provided that, in the case of any such payment due at the Maturity of the principal hereof (other than any payment of interest that first becomes due on an Interest Payment Date), this
Security must be surrendered at the office or agency of the Company maintained for that purpose in Toronto, Ontario (or at any other office or agency maintained by the Company for that purpose) in time for the Paying Agent to make such payment in
such funds in accordance with its normal procedures. Any such request made with respect to any payment on this Security payable to a particular Holder will remain in effect for all later payments on this Security payable to such Holder, unless such
request is revoked on or before the fifth Business Day before a payment is to be made, in which case such revocation shall be effective for such payment and all later payments. In the case of any payment of interest payable on an Interest Payment
Date, such written request must be made by the Person who is the registered Holder of this Security on the relevant Regular Record Date. The Company will pay any administrative costs imposed by banks in connection with making payments by wire
transfer with respect to this Security, but any tax, assessment or other governmental charge imposed upon any payment will be borne by the Holder of this Security and may be deducted from the payment by the Company or the Paying Agent. 

The Company will at all times maintain an office or agency in Toronto, Ontario for the payment of principal, interest and any other amount on
this Security. The Company’s initial Paying Agent shall be BNY Trust Company of Canada in Toronto, Ontario. 
 References in this
Security to Canadian dollars shall mean, as of any time, the coin or currency (if any) that is legal tender for the payment of private and public debt in Canada. 

Payments Due on a Business Day 

Notwithstanding any provision of this Security or the Indenture, if any amount of principal, premium or interest would otherwise be due on this
Security on a day (the “Specified Day”) that is not a Business Day, such amount may be paid or made available for payment on the next succeeding Business Day with the same force and effect as if such amount were paid on the
Specified Day, and no interest will accrue on the amount so payable for the period from the Specified Day to such next succeeding Business Day. 

If an Interest Payment Date scheduled to occur after April 26, 2022 would otherwise be a day that is not a Business Day, that Interest
Payment Date will be postponed to the next day that is a Business Day provided that, if such Business Day is in the next succeeding calendar month, the Interest Payment Date will instead be the immediately preceding Business Day.
Notwithstanding the foregoing, an Interest Payment Date that falls on the Maturity of the principal hereof will not be changed. 

  
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 For all purposes of this Security, “Business Day” means each Monday, Tuesday,
Wednesday, Thursday and Friday that is not a day on which banking institutions generally are authorized or obligated by law or executive order to close in The City of New York or Toronto, Ontario. The provisions of this section shall apply to this
Security in lieu of the provisions of Section 1.13 of the Indenture. 
 Payments Made in U.S. Dollars 

Notwithstanding any provision of this Security or the Indenture, if any amount payable on this Security is payable on any day and if Canadian
dollars are not available to the Company on the two Business Days before such day, due to the imposition of exchange controls, disruption in a currency market or any other circumstances beyond the control of the Company, the Company will be entitled
to satisfy its obligation to pay such amount in Canadian dollars by making such payment in U.S. dollars. The amount of such payment in U.S. dollars shall be determined by an Exchange Rate Agent to be appointed by the Company, on the basis of the
noon buying rate for cable transfers in The City of New York for Canadian dollars (the “Exchange Rate”) as of the latest day before the day on which such payment is to be made. Any payment made under such circumstances in U.S. dollars
where the required payment is in Canadian dollars will not constitute an Event of Default under this Security or the Indenture. 

Exchange Rate Agent 

As used herein, the “Exchange Rate Agent” shall mean such agent appointed by the Company to act with respect to this series after the
date of issuance (including any affiliate of the Company); provided that the Company may, and in its sole discretion, appoint any other institution (including any affiliate of the Company) to serve as any such agent from time to time. The
Company will give the Trustee prompt written notice of any change in any such appointment. Insofar as this Security provides for any such agent to obtain rates, quotes or other data from a bank, dealer or other institution for use in making any
determination hereunder, such agent may do so from any institution or institutions of the kind contemplated hereby notwithstanding that any one or more of such institutions are any such agent, affiliates of any such agent or affiliates of the
Company. 
 All determinations made by the Exchange Rate Agent pursuant to the terms of this Security shall be, absent manifest error,
conclusive for all purposes and binding on the holder of this Security and the Company, and the Exchange Rate Agent shall have no liability therefor. 

  
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 Calculation Agent 

As used herein, the “Calculation Agent” shall initially mean BNY Trust Company of Canada; provided that the Company may, in
its sole discretion, appoint any other institution (including any affiliate of the Company) to serve as any such agent from time to time. The Company will give the Trustee prompt written notice of any change in any such appointment. Insofar as this
Security provides for any such agent to obtain rates, quotes or other data from a bank, dealer or other institution for use in making any determination hereunder, such agent may do so from any institution or institutions of the kind contemplated
hereby notwithstanding that any one or more of such institutions are any such agent, affiliates of any such agent or affiliates of the Company. 

All determinations made by the Calculation Agent, absent manifest error, shall be conclusive for all purposes and binding on the Holder of
this Security and the Company. The Calculation Agent shall not have any liability therefor. 
  

 
 Reference is
hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 

Unless the certificate of authentication hereon has been executed by the Trustee by manual signature, this Security shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose. 

  
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 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

 

					
	THE GOLDMAN SACHS GROUP, INC.
		
	By:	 	 
		 	Name:	 	
		 	Title:	 	

 This is one of the Securities of the series designated herein and referred to in the Indenture. 

 

			
	 THE BANK OF NEW YORK MELLON,
 as
Trustee

		
	By:	 	 
		 	Authorized Signatory

 (Reverse of Security) 
  

	 	1.	Securities and Indenture. 

 This Security is one of a duly authorized issue of
securities of the Company (herein called the “Securities”) issued and to be issued in one or more series under a Senior Debt Indenture, dated as of July 16, 2008 (herein called the “Indenture”, which term shall have
the meaning assigned to it in such instrument), between the Company and The Bank of New York Mellon, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), and reference is hereby
made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. 
  

	 	2.	Series and Denominations. 

 This Security is one of the series designated on the
face hereof, limited to an aggregate principal amount as shall be determined and may be increased from time to time by the Company. Any election by the Company so to increase such aggregate principal amount shall be evidenced by a certificate of an
Authorized Person (as defined in the Determination of an Authorized Person, dated April 26, 2017, with respect to this series). References herein to “this series” mean the series of Securities designated on the face
hereof, provided that, for purposes of Sections 6 and 7 below, the term “series” (and references to Securities of a series) shall be deemed to refer only to Securities having the same CUSIP number. The Securities of this series are
issuable only in registered form without coupons in denominations of integral multiples of CAD1,000, subject to a minimum denomination of CAD100,000. 
  

	 	3.	Additional Amounts. 

 If the beneficial owner of this Security is a United States
Alien (as defined below), the Company will pay all additional amounts that may be necessary so that every net payment of the principal of and interest on this Security to such beneficial owner, after deduction or withholding for or on account of any
present or future tax, assessment or governmental charge imposed with respect to such payment by any U.S. Taxing Authority (as defined below), will not be less than the amount provided for in this Security to be then due and payable; provided,
however, that the Company shall have no obligation to pay additional amounts for or on account of any one or more of the following: 

(i) any tax, assessment or other governmental charge imposed solely because at any time there is or was a connection between
such beneficial owner (or between a fiduciary, settlor, beneficiary or member of such beneficial owner, if such beneficial owner is an estate, trust or partnership) and the United States (as 

  
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defined below) (other than the mere receipt of a payment on, or the ownership or holding of, a Security), including because such beneficial owner (or such fiduciary, settlor, beneficiary or
member) at any time, for U.S. federal income tax purposes: (a) is or was a citizen or resident, or is or was treated as a resident, of the United States, (b) is or was present in the United States, (c) is or was engaged in a trade or
business in the United States, (d) has or had a permanent establishment in the United States, (e) is or was a personal holding company, a passive foreign investment company or a controlled foreign corporation, (f) is or was a domestic
or foreign corporation that accumulates earnings to avoid U.S. federal income tax or (g) is or was a “10-percent shareholder” of the Company as defined in section 871(h)(3) of the U.S. Internal Revenue Code or any successor provision;

 (ii) any tax, assessment or governmental charge imposed solely because of a change in applicable law or regulation, or in
any official interpretation or application of applicable law or regulation, that becomes effective more than 15 days after the day on which the payment becomes due or is duly provided for, whichever occurs later; 

(iii) any estate, inheritance, gift, sales, excise, transfer, wealth or personal property tax or any similar tax, assessment or
other governmental charge; 
 (iv) any tax, assessment or other governmental charge imposed solely because such beneficial
owner or any other Person fails to comply with any certification, identification or other reporting requirement concerning the nationality, residence, identity or connection with the United States of the Holder or any beneficial owner of this
Security, if compliance is required by statute, by regulation of the U.S. Treasury Department or by an applicable income tax treaty to which the United States is a party, as a precondition to exemption from such tax, assessment or other governmental
charge; 
 (v) any tax, assessment or other governmental charge that is payable otherwise than by deduction or withholding
from payments of principal of or interest on this Security; 
 (vi) any tax, assessment or other governmental charge imposed
solely because the payment is to be made by a particular Paying Agent (which term may include the Company) and would not be imposed if made by another Paying Agent (which term may include the Company); 

(vii) any tax, assessment or other governmental charge imposed solely because the Holder (1) is a bank purchasing this
Security in the ordinary course of 

  
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its lending business or (2) is a bank that is neither (A) buying this Security for investment purposes only nor (B) buying this Security for resale to a third party that either is
not a bank or holding this Security for investment purposes only; or 
 (viii) any combination of the taxes, assessments or
other governmental charges described in items (i) through (vii) of this Section 3. 
 Additional amounts also will not be
paid with respect to any payment of principal of or interest on this Security to any United States Alien who is a fiduciary or a partnership, or who is not the sole beneficial owner of any such payment, to the extent that the Company would not be
required to pay additional amounts to any beneficiary or settlor of such fiduciary or any member of such a partnership, or to any beneficial owner of the payment, if that Person had been treated as the beneficial owner of this Security for this
purpose. 
 In addition, any amounts to be paid on this Security will be paid net of any deduction or withholding imposed or required
pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code (the “Code”), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code, or any
fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code, and no additional amounts will be required to be paid on
account of any such deduction or withholding. 
 The term “United States Alien” means any Person who, for U.S. federal
income tax purposes, is a nonresident alien individual, a foreign corporation, a foreign partnership one or more of the members of which is, for United States federal income tax purposes, a foreign corporation, a nonresident alien individual or a
nonresident alien fiduciary of a foreign estate or trust, or a nonresident alien fiduciary of an estate or trust that is not subject to U.S. federal income tax on a net income basis on income or gain from this Security. For the purposes of this
Section 3 and Section 4 only, (a) the term “United States” means the United States of America (including the states thereof and the District of Columbia), together with the territories, possessions and all other areas
subject to the jurisdiction of the United States of America and (b) the term “U.S. Taxing Authority” means the United States of America or any state, other jurisdiction or taxing authority in the United States. 

Except as specifically provided in this Security, the Company shall not be required to make any payment with respect to any tax, assessment
or other governmental charge imposed by any government or any political subdivision or taxing authority thereof or therein. 

  
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 Whenever in the Securities of this series (or in the Indenture, including in Sections 5.01(1)
and (2) thereof, insofar as applicable to this series) there is a reference, in any context, to the payment of the principal of or interest on any Security of this series, such mention shall be deemed to include mention of any payment of
additional amounts to United States Aliens in respect of such payment of principal or interest to the extent that, in such context, such additional amounts are, were or would be payable in respect thereof pursuant to this Section 3 or any
corresponding section of another Security of this series, as the case may be. Express mention of the payment of additional amounts in any provision of any Security of this series shall not be construed as excluding additional amounts in the
provisions of any Security of this series (or of the Indenture insofar as it applies to this series) where such express mention is not made. 
  

	 	4.	Redemption at the Company’s Option. 

 (a) The Securities of this series may
be redeemed, as a whole but not in part, at the option of the Company, at a redemption price equal to 100% of the principal amount of the Securities to be redeemed, together with interest accrued to the date fixed for redemption, if, as a result of
any amendment to, or change in, the laws or regulations of any U.S. Taxing Authority (as defined in Section 3 above), or any amendment to or change in any official interpretation or application of such laws or regulations, which amendment or
change becomes effective or is announced on or after April 19, 2017, the Company will become obligated to pay, on the next Interest Payment Date, additional amounts in respect of any Security of this series pursuant to Section 3 of this
Security or any corresponding section of another Security of this series. If the Company becomes entitled to redeem the Securities of this series, it may do so on any day thereafter pursuant to the Indenture; provided, however, that
(1) the Company gives the Holder of this Security notice of such redemption not more than 60 days nor less than 30 days prior to the date fixed for redemption as provided in the Indenture, (2) no such notice of redemption may be given
earlier than 90 days prior to the next Interest Payment Date on which the Company would be obligated to pay such additional amounts and (3) at the time such notice is given, such obligation to pay such additional amounts remains in effect.
Immediately prior to the giving of any notice of redemption of Securities pursuant to this Section 4(a), the Company will deliver to the Trustee an Officers’ Certificate stating that the Company is entitled to effect such redemption and
setting forth in reasonable detail a statement of facts showing that the conditions precedent to the right of the Company to so redeem the Securities have occurred. Interest installments due on or prior to a Redemption Date will be payable to the
Holder of this Security or one or more Predecessor Securities, of record at the close of business on the relevant record date, all as provided in the Indenture. 

(b) In addition, the Securities of this series may be redeemed, at the Company’s option, in whole at any time, or in part from time to
time, on or after October 26, 2017 (or, if any additional Securities of this series are issued after April 26, 2017, 

  
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beginning six months after the last issue date for such additional Securities), and to, but excluding, April 26, 2022, at a redemption price equal to the greater of (i) 100% of the
principal amount of the Securities to be redeemed or (ii) the Canada Yield Price, as described below, plus, in each case of (i) and (ii), accrued and unpaid interest to but excluding the Redemption Date. Notice of a redemption pursuant to
this Section 4(b) must be provided to the Holder of this Security not more than 60 days nor less than 15 days prior to the date fixed for redemption. Interest installments due on or prior to a Redemption Date will be payable to the Holder of
this Security or one or more Predecessor Securities, of record at the close of business on the relevant record date, all as provided in the Indenture. 

The “Canada Yield Price” of the Securities of this series (or the portion thereof to be redeemed) shall be calculated to provide a
yield to maturity, compounded semi-annually and calculated in accordance with generally accepted Canadian financial practice, equal to the sum of the Government of Canada Yield calculated as of approximately 10:00 a.m. (Toronto time) on the third
business day in Toronto preceding the Redemption Date, plus 34.5 basis points, assuming for this purpose that the Securities of this series would mature on April 26, 2022 (rather than the Stated Maturity of the principal hereof). 

“Government of Canada Yield” means, on any date, with respect to any Securities of this series, the yield to maturity on such date,
compounded semi-annually and calculated in accordance with generally accepted Canadian financial practice, which an assumed new issue of non-callable Government of Canada bonds denominated in Canadian dollars would carry if issued in Canada at 100%
of its principal amount on such date, with a term to maturity as nearly as possible equal to the remaining term to maturity of such Securities, assuming for this purpose that the Securities of this series would mature on April 26, 2022 (rather
than the Stated Maturity of the principal hereof). The Government of Canada Yield will be calculated by the Company as the average (rounded to three decimal points) of the bid-side yields determined by two major Canadian investment dealers selected
by the Company. 
 (c) In addition, on April 26, 2022, the Securities of this series may be redeemed, at the Company’s option, in
whole, but not in part, at a redemption price equal to 100% of the principal amount of the Securities to be redeemed, together with interest accrued to the date fixed for redemption. Notice of a redemption pursuant to this Section 4(c) must be
provided to the Holder of this Security not more than 60 days nor less than 15 days prior to the date fixed for redemption. Interest installments due on or prior to a Redemption Date will be payable to the Holder of this Security or one or more
Predecessor Securities, of record at the close of business on the relevant record date, all as provided in the Indenture. 

  
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 -14- 

	 	5.	Defeasance. 

 The Indenture contains provisions for defeasance at any time of the
entire indebtedness of this Security or certain restrictive covenants, Events of Default and Covenant Breaches with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture. Both of such provisions
are applicable to this Security. 
  

	 	6.	Modification and Waiver. 

 The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities to be affected under the Indenture at any time by the Company and the Trustee with the consent
of the Holders of a majority in principal amount of all Securities at the time Outstanding to be affected, considered together as one class for this purpose (such Securities to be affected may be Securities of the same or different series and, with
respect to any series, may comprise fewer than all the Securities of such series). The Indenture also contains provisions (i) permitting the Holders of a majority in principal amount of the Securities at the time Outstanding to be affected
under the Indenture, considered together as one class for this purpose (such affected Securities may be Securities of the same or different series and, with respect to any particular series, may comprise fewer than all the Securities of such
series), on behalf of the Holders of all Securities so affected, to waive compliance by the Company with certain provisions of the Indenture and (ii) permitting the Holders of a majority in principal amount of the Securities at the time
Outstanding of any series to be affected under the Indenture (with each such series considered separately for this purpose), on behalf of the Holders of all Securities of such series, to waive certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. For the purpose of this paragraph, the term “default” means, with respect to any Securities, any event which is, or after notice or
lapse of time or both would become, an Event of Default or Covenant Breach in respect of such Securities. 
  

	 	7.	Remedies. 

 If an Event of Default with respect to Securities of this series
shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. With respect to this Security, the only Events of Default are payment defaults
that continue for 30 days and insolvency events, all as specified in the Indenture. Any other default under or breach of the Indenture or the Securities will not give rise to an Event of Default, whether after notice, the passage of time or
otherwise. 

  
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 -15- 

 As provided in and subject to the provisions of the Indenture, the Holder of this Security shall
not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a
continuing Event of Default or Covenant Breach with respect to the Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default or Covenant Breach, as applicable, as Trustee and offered the Trustee indemnity reasonably satisfactory to it, and the Trustee shall not have received from the Holders of a
majority in principal amount of Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such notice, request and offer of
indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein. 

If so provided pursuant to the terms of any specific Securities, the above-referenced provisions of the Indenture regarding the ability of
Holders to waive certain defaults, or to request the Trustee to institute proceedings (or to give the Trustee other directions) in respect thereof, may be applied differently with regard to such Securities. 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and premium (if any) and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

 

	 	8.	Transfer and Exchange. 

 As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and
interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his or her attorney duly authorized in
writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 

  
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 -16- 

 No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to
due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not
this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 This
Security is a Global Security and is subject to the provisions of the Indenture relating to Global Securities, including the limitations in Section 3.05 thereof on transfers and exchanges of Global Securities except that for the purposes of all
Global Securities of this series, the first sentence of Clause (2) in the last paragraph of Section 3.05 of the Indenture shall be modified to read in its entirety as follows: 

Notwithstanding any other provision in this Indenture, and subject to such applicable provisions, if any, as may be specified as contemplated
by Section 3.01, no Global Security may be exchanged in whole or in part for Securities registered, and no transfer of a Global Security in whole or in part may be registered, in the name of any Person other than the Depositary for such Global
Security or a nominee thereof unless (A) such Depositary has notified the Company that it (i) is unwilling or unable to continue as Depositary for such Global Security or (ii) has ceased to be a recognized clearing agency under the
Securities Act (Ontario) or a recognized clearing house under the Securities Act (Quebec) or a similarly recognized entity under other applicable Canadian or provincial securities legislation, (B) there shall have occurred and be
continuing an Event of Default or Covenant Breach with respect to such Global Security or (C) the Company has executed and delivered to the Trustee a Company Order stating that such Global Security shall be exchanged in whole for Securities
that are not Global Securities (in which case such exchange shall promptly be effected by the Trustee). 
  

	 	9.	Notices. 

 Notices that are required hereunder or under the Indenture to be given
to Holders of the Securities of this series shall be given to Holders of the Securities of this series as set forth in the Indenture. 

  
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 -17- 

	 	10.	Governing Law. 

 This Security and the Indenture shall be governed by and
construed in accordance with the laws of the State of New York. 
  

	 	11.	Terms Defined in the Indenture. 

 All terms used in this Security which are
defined in the Indenture but not otherwise defined herein shall have the meanings assigned to them in the Indenture. 
  

 

  
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 ASSIGNMENT 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto 

 
  
  

 
 PLEASE INSERT SOCIAL SECURITY OR OTHER 

IDENTIFYING NUMBER OF ASSIGNEE 
  

 

/                          
                  / 
  

	
	 (Please Print or Typewrite Name and Address

Including Postal Zip Code of Assignee)

  
  

the attached Security and all rights thereunder, and hereby irrevocably constitutes and appoints
                                         
            

                          
               to transfer said Security on the books of the Company, with full power of substitution in the premises. 

Dated: 
 Signature Guaranteed 

 

					
	NOTICE: Signature must be guaranteed.	  		  	NOTICE: The signature to this assignment must correspond with the name of the Holder as written upon the face of the attached Security in every particular, without alteration or any change
whatever.Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (this “Agreement”) is made and entered into by and between BeiGene, Ltd. (the “Company”), a Cayman Islands exempted company and John V. Oyler (the “Executive”), on April 25, 2017 (the “Effective Date”).

 

WHEREAS, the operations of the Company and its Affiliates (as defined below) are a complex matter requiring direction and leadership in a variety of arenas, including financial, strategic planning, regulatory, community relations and others;

 

WHEREAS, the Executive has been serving the Company as its Chief Executive Officer and possesses experience and expertise that qualify him to provide the direction and leadership required by the Company and its Affiliates; and

 

WHEREAS, the Company therefore wishes to continue to employ the Executive as Chief Executive Officer on the terms and conditions set forth in this Agreement, and the Executive wishes to accept such employment;

 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises, terms, provisions and conditions set forth in this Agreement, the parties hereby agree:

 

1.                                      Employment. Subject to the terms and conditions set forth in this Agreement, the Company hereby offers, and the Executive hereby accepts, employment.

 

2.                                      Term. Subject to earlier termination of Executive’s employment pursuant to Section 5, this Agreement shall continue until the third anniversary of the Effective Date (the “Initial Term”). On completion of the Initial Term, this Agreement will automatically renew for subsequent one (1) year terms unless either party provides sixty (60) days’ advance written notice to the other that Company or Executive, as applicable, does not wish to renew the Agreement for a subsequent one (1) year term (the Initial Term and any subsequent renewal term shall be collectively referred to as the “Term”).

 

3.                                      Capacity and Performance.

 

a)             During the Term, the Executive shall serve the Company as Chief Executive Officer, and shall report to the Board of Directors of the Company (the “Board”). In addition, and without further compensation, the Executive shall serve as a director and/or officer of one or more of the Company’s Affiliates if so elected or appointed from time to time.

 

b)             During the Term, the Executive shall be employed by the Company and BeiGene USA, Inc. (US Co.) and seconded to BeiGene (Beijing) Co., Limited (China Co.), collectively, on a full-time basis and shall perform the duties and responsibilities of his position and such other duties and responsibilities on behalf of the Company and its Affiliates as reasonably may be designated from time to time by the Board or its designee, consistent with his position as

 

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Chief Executive Officer and pursuant to this Agreement, Executive’s secondment agreement with China Co. attached hereto as Exhibit A and Executive’s employment agreement with US Co. attached hereto as Exhibit B.

 

c)              During the Term, the Executive shall devote his full business time and his best efforts, business judgment, skill and knowledge exclusively to the advancement of the business and interests of the Company and its Affiliates and to the discharge of his duties and responsibilities hereunder. The Executive shall not engage in any other business activity or serve in any industry, trade, professional, governmental or academic position during the term of this Agreement, provided however, subject to Board approval, the Executive may serve on boards of entities primarily engaged in for-profit business enterprises. Further, the Executive shall be entitled to attend to personal and family affairs, manage his personal investments and engage in charitable, civic or community activities, including non-profit board service (subject to Board approval, not to be unreasonably withheld).  Notwithstanding the foregoing, no activities permitted under this Section 3(c) shall materially interfere with Executive’s responsibilities under this Agreement or result in any actual or perceived conflict of interest with the activities of the Company.

 

The Executive shall not, directly or indirectly, own an interest in, join, carry on or be engaged in, operate, assist, control or participate in, or be connected as an officer, employee, agent, independent contractor, consultant, partner, member, manager, part-owner, shareholder, principal or in any other capacity with, any corporation, partnership, limited liability company, proprietorship, association, business or other entity or person engaged in any Competing Business. “Competing Business” means any commercial venture relating to (i) oncology in which the Company is conducting business during the Executive’s employment and (ii) any other therapeutic areas that the Company has documented intent to enter during the Term and that have been strategically assessed during the Executive’s employment, provided that the Company is making non-negligible investment in such area; if the Company is making a non-negligible investment in the area, the Board may nevertheless grant approval at its discretion and such approval will not unreasonably be withheld if such investment is deemed not to be material.

 

The Executive represents that his obligations set forth in this Section 3(c) shall not cause him any substantial economic hardship. The Executive agrees that the obligations set forth in this Section 3(c) are reasonable and necessary to protect the legitimate business interests of the Company.

 

d)             Nothing herein shall prohibit the Executive from making “angel” or “seed” investments of up to one percent (1%), or up to five percent (5%) (subject to Board approval, not to be unreasonably withheld), in a Competing Business provided that, concurrently with such investment, the Executive delivers to the

 

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Board (i) written notice of such investment; and (ii) a written and executed option, in a form reasonably acceptable to the Company, to purchase such investment from the Executive, at fair market value as of the time of the Company’s purchase from the Executive, which option shall be exercisable at any time through the tenth (10th) Business Day following the date the Executive ceases to hold the position of Chief Executive Officer of the Company (without regard for the reason the Executive ceases to hold such position).

 

e)              The Company agrees to propose to the Board during the Term the election or reelection of the Executive as a director of the Company, provided that the Executive is otherwise eligible for such election.

 

4.                                      Compensation and Benefits. As compensation for all services performed by the Executive during the Term and subject to the Executive’s performance of his duties and obligations to the Company and its Affiliates, pursuant to this Agreement or otherwise, the Company shall provide the Executive with the following compensation and benefits:

 

a)             Base Salary. During the Term, the Company, China Co. and US Co., collectively, shall pay the Executive at the rate of not less than Five Hundred Ninety Thousand Dollars ($590,000) per annum, payable in accordance with the payroll practices of the Company, China Co. and US Co. for their executives and subject to increase from time to time by the Board, in its sole discretion (such base salary, as from time to time increased, the “Base Salary”). The payment of the Base Salary shall be allocated among the Company, China Co. and US Co. pursuant to this Agreement, the Executive’s secondment agreement with China Co. attached hereto as Exhibit A and the Executive’s employment agreement with US Co. attached hereto as Exhibit B.  In 2017, the Company shall be responsible for 50% of the Base Salary, China Co. shall be responsible for 20% of the Base Salary and US Co. shall be responsible for 30% of the Base Salary.  To the extent China Co. or US Co. does not make timely payment of their respective portion of the Base Salary, the Company shall be obligated to make such payment.  Within the first 30 days of each following calendar year, the Company, China Co. and US Co. shall true up each other based on the amount of work actually performed by the Executive in the past calendar year and shall assess and re-allocate the payment responsibility of the Base Salary for the current year as necessary.  The Base Salary shall not be reduced at any time (including after any such increase) without the Executive’s written consent unless as part of standard operational/compensation cuts across the broader Company budget (provided that, any such reductions shall not exceed 25% in the aggregate), and the term Base Salary as used in this Agreement shall refer to Executive’s Base Salary as so increased.

 

b)             Incentive and Bonus Compensation. During the Employment Period, the Executive shall be paid an annual cash bonus (“Annual Bonus”) with a target

 

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level of $320,000 (the “Target Bonus”), with a minimum payout level of 15% of annual Base Salary. The minimum payout level shall apply for the first 2 years of this Agreement. The Executive’s corporate and individual performance targets shall be determined by the Board (or a committee designated by the Board), after consultation with the Executive, within the first 90 days of each calendar year (or for the first target within 90 days after the signing of this Agreement). The actual Annual Bonus for each calendar year shall be determined in good faith by the Board based upon actual corporate and individual performance for such year and shall be payable in accordance with the procedures specified by the Board; provided that the Annual Bonus shall be paid no later than March 15th of the year following the end of the performance period.

 

c)              Equity Grants.

 

i.                                On July 19, 2015 (the “Grant Date”), the Company granted 11,400,500  options to purchase ordinary shares of the Company (equal to approximately 3.1% of the Company’s then fully-diluted share capital) (the “Options”), at a purchase price per share equal to 100% of the fair market value of a share of the Company’s ordinary shares on the Grant Date. Except as otherwise provided in Section 6(b) and 6(c) herein, twenty percent (20%) of the Options shall vest on the first anniversary of the Grant Date and the remaining eighty percent (80%) of the Options shall vest in 48 equal monthly installments and are subject to the provisions (including, without limitation, provisions concerning vesting, forfeiture and repurchase rights of the Company, if any, of the ordinary shares of the Company upon termination of employment) contained in an award agreement.  Notwithstanding anything to the contrary, the award agreement shall be amended to provide that (i) an additional twenty (20) months of the unvested Options shall vest upon a termination of Executive’s employment due to Executive’s resignation for Good Reason or by the Company other than for Cause (whether such termination or resignation occurs during the Term or following expiration of the Term) and (ii) all unvested Options shall immediately vest upon a Change in Control.

 

ii.                             The Company may grant the Executive at the end of each year, commencing with calendar year 2017, equity awards, on terms and conditions specified by the Board in its sole discretion. Additional equity grants will be subject to the same accelerated vesting provisions set forth above in Section 4(c)(i).  For the avoidance of doubt, the Company acknowledges that Executive has a significant equity stake in the Company based on his prior investment and sweat equity, and that in connection with any of the Company’s future equity grants for which Executive will be eligible, the Company will treat Executive fairly and not penalize Executive based on his current level of equity ownership.

 

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d)             Vacations and Other Benefits. During the Term, the Executive shall be entitled to earn vacation at the rate of four (4) weeks per year, to be taken at such times and intervals as shall be determined by the Executive, subject to the reasonable business needs of the Company. The Executive shall be entitled to carryover up to two (2) weeks of vacation into the following calendar year. Vacation shall otherwise be governed by the policies of the Company, as in effect from time to time.

 

During the Term, the Executive shall be entitled to participate in or receive benefits under any employee benefit plans including but not limited to, retirement plans, supplemental retirement plans, pension plans, profit-sharing plans, health-and-accident plans, medical coverage or any other employee benefit plan or arrangement made available by the Company in the future to its senior executives and key management employees (such plans, the “Employee Benefit Plans”), except to the extent any such Employee Benefit Plan is in a category of benefit otherwise provided to the Executive by China Co., US Co. or otherwise (e.g., a severance pay plan). Such participation shall be subject to the terms of the applicable plan documents and generally applicable Company policies. The Company may alter, modify, or terminate its Employee Benefit Plans at any time as it, in its sole judgment, determines to be appropriate, without recourse by the Executive.

 

In addition, the Executive shall be entitled to the following benefits, to the extent the Executive continues to be principally based in China:

 

·                  Car and driver — Lease/rental of an automobile for full time use with a driver; in the Board’s discretion, capped at a reasonable limit, except to the extent such benefit is already provided by China Co.;

 

·                  Home visit — One (1) annual Business class airline travel, roundtrip, to the United States for the Executive and any dependents living with the Executive in China, if any; and

 

·                  Tax Equalization/Tax preparation assistance — The Company acknowledges that the Executive’s employment may result in the imposition on the Executive by a country or countries other than the U.S. of income taxes (excluding penalties) over and above the federal income tax of the U.S. to which he is subject.  The Company agrees that it will provide the Executive with payments intended to make him whole for those additional taxes (the “Tax Equalization Payments”).  In connection with the Tax Equalization Payments, the Company will provide tax preparation assistance through its tax consultants for the Executive’s United States and foreign country tax returns.  The Executive will cooperate with the tax consultants to enable the timely calculations and filing of tax returns.  During the Term and Restricted Period thereafter, Company will pay all costs associated with Executive’s actual incremental cost incurred each year to prepare and make federal, state

 

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and local tax filings due to Executive’s tax status.  Such amounts shall be paid directly by the Company to the service provider upon written notice by the Executive. Any Tax Equalization Payments payable by the Company to the Executive under this section shall be made no later than the end of the Executive’s second taxable year beginning after the Executive’s taxable year in which the Executive’s U.S. Federal income tax return is required to be filed (including any extensions) for the year to which the income subject to the Tax Equalization Payment relates, or, if later, the second taxable year of the Executive beginning after the latest such taxable year in which the Executive’s Foreign Country tax return or payment is required to be filed or made for the year to which compensation subject to the Tax Equalization Payment relates.  To the extent any Tax Equalization Payment is, notwithstanding the preceding sentence, subject to Section 409A of the U.S. Internal Revenue Code of 1986, as amended, and the guidance issued thereunder (“Section 409A”), the provisions of Section 7 shall apply with respect to such payment.

 

e)              Business Expenses. The Company shall pay or reimburse the Executive for all reasonable and customary business expenses incurred or paid by the Executive in the performance of his duties and responsibilities hereunder, subject to any maximum annual limit and other restrictions on such expenses set by the Board (i.e. Company Travel Policy) and to such reasonable substantiation and documentation as may be specified by the Company from time to time.

 

5.                                      Termination of Employment and Severance Benefits. The Executive’s employment hereunder shall terminate under the following circumstances:

 

a)             Death. In the event of the Executive’s death, the Executive’s employment hereunder shall immediately and automatically terminate.

 

b)             Disability.

 

i.                                If the Company determines in good faith that Disability of the Executive has occurred during the Term (pursuant to the definition of Disability set forth below), it may give to the Executive written notice of its intention to terminate the Executive’s employment.  In such event, the Executive’s employment with the Company shall terminate effective on the 10th day after receipt of such notice by the Executive (the “Disability Effective Date”), provided that, within the 10 days after such receipt, the Executive shall not have returned to full-time performance of the Executive’s duties.  For purposes of this Agreement, “Disability” shall mean the absence of the Executive from the Executive’s duties with the Company on a full-time basis for 90 consecutive days during any consecutive twelve month period as a result of incapacity due to mental or physical illness that is determined

 

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to be total and permanent by a physician selected by (i) the Company and reasonably acceptable to the Executive or the Executive’s legal representative and (ii) the insurance company that insures the Company’s long-term disability plan, if any, in which the Executive is eligible to participate.

 

ii.                             The Board may designate another employee to act in the Executive’s place during any period of the Executive’s disability. Notwithstanding any such designation, the Executive shall continue to receive the Base Salary in accordance with Section 4(a) and benefits in accordance with Section 4(d), to the extent permitted by the then-current terms of the applicable benefit plans, until the termination of his employment.

 

iii.                          While receiving disability income payments under any disability income plan of the Company, the Executive shall be entitled to receive any Base Salary under Section 4(a) less such payments, and shall continue to participate in Company benefit plans in accordance with Section 4(d) and the terms of such plans, until the termination of his employment.

 

c)              By the Company for Cause. The Company may terminate the Executive’s employment hereunder for Cause at any time upon notice to the Executive setting forth in reasonable detail the nature of such Cause. The following, as determined by the Board in good faith, shall constitute Cause for termination:

 

i.                                The Executive’s gross negligence or willful misconduct in performance of his duties to the Company, where such gross negligence or willful misconduct has resulted in material damage to the Company or any of its Affiliates or successors;

 

ii.                             The Executive’s willful commission of any act of fraud or embezzlement with respect to the Company or any of its Affiliates;

 

iii.                          The Executive’s indictment for or commission of a felony or crime involving moral turpitude;

 

iv.                         The Executive’s willful material breach of any material provision of this Agreement or any other written agreement between the Executive and the Company;

 

v.                            The Executive’s willful failure to comply with lawful directives of the Board, which has caused material damage to the Company or any of its Affiliates or successors.

 

vi.                         For 5(c)(i), (iv), and (v), Executive shall be given not less than thirty (30) days’ written notice by the Board of the Company’s intention to

 

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terminate him with Cause, such notice to state in detail the particular act or acts or failure or failures to act that constitute the grounds on which the proposed termination with Cause is based, and such termination shall be effective at the expiration of such thirty (30) day notice period unless Executive has fully cured such act or acts or failure or failures to act that give rise to Cause during such period.

 

For purposes of this provision, no act or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company.  Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Company’s Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company.  If the Company does not deliver to the Executive written notice of termination within 60 days after the Company has knowledge that an event constituting Cause has occurred, the event will no longer constitute Cause.

 

d)             By the Company Other than for Cause. The Company may terminate the Executive’s employment hereunder other than for Cause at any time.

 

e)              By the Executive for Good Reason. The Executive may terminate his employment hereunder for Good Reason (A) by providing notice to the Company specifying in reasonable detail the condition giving rise to the Good Reason no later than thirty (30) days following the occurrence of that condition; (B) by providing the Company a period of thirty (30) days to remedy the condition and so specifying in the notice; and (C) by terminating his employment for Good Reason within thirty (30) days following the expiration of the period to remedy if the Company fails to remedy the situation. The following, occurring without the Executive’s written consent, shall constitute “Good Reason” for termination by the Executive:

 

i.                                the assignment to the Executive of duties materially inconsistent with the Executive’s title, position, status, reporting relationships, authority, duties or responsibilities as contemplated by Section 3, or any other action by the Company which results in a diminution in the Executive’s title, position, status, reporting relationships, authority, duties or responsibilities, other than insubstantial or inadvertent actions not taken in bad faith which are remedied by the Company promptly after receipt of notice given by the Executive;

 

ii.                             any failure by the Company to comply with any of the provisions of Section 4, other than insubstantial or inadvertent failures not in bad faith that are remedied by the Company promptly after receipt of notice given by the Executive;

 

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iii.                          the relocation of Executive’s China office to a location 50 miles or greater from Beijing, China, without his written approval; or

 

iv.                         a material breach by the Company of any material provision of any written agreements between the Company and Executive.

 

f)               By the Executive Other than for Good Reason. The Executive may terminate his employment at any time upon sixty (60) days’ notice to the Company. In the event of termination pursuant to this Section 5(f), the Board may elect to waive all of a portion of the period of notice. In the event of such a waiver, if the Executive is not resigning his employment for the purpose of commencing employment with any business that is directly or indirectly competitive with the Company or any of its Affiliates, the Company shall pay the Executive his Base Salary for the period so waived.

 

6.                                      Severance Payments and Other Matters Related to Separation from Service.

 

a)             Final Compensation. Following the termination of the Executive’s employment for any reason, the Company shall pay to the Executive: (i) any Base Salary earned but not paid during the final payroll period of the Executive’s employment through the date of termination, (ii) the amount attributable to any vacation time earned but not used through the date of termination, (iii) any unpaid Annual Bonus due to Executive for the calendar year prior to the year in which the termination occurs, and (iv) any business expenses incurred by the Executive but not reimbursed on the date of termination, provided that such expenses and required substantiation and documentation are submitted within thirty (30) days of termination and that such expenses are reimbursable under Company policy (all of the foregoing, “Final Compensation”). Any Base Salary and any earned, unused vacation time shall be paid to the Executive at the time required by law, but not later than the Company’s next regular pay date following the date of termination. Any business expenses due under this Section 6(a) shall be paid within sixty (60) days following the date of termination. Other than as expressly provided in Section 6(b), the Company shall have no further obligation to the Executive.

 

b)             Severance. In the event the Executive’s employment terminates pursuant to Sections 5(d) or 5(e) of this Agreement, in addition to the Final Compensation and the accelerated vesting of unvested equity to the extent set forth in Section 4(c) of this Agreement, the Company shall pay the Executive (i) a lump sum equal to the Base Salary divided by 12, then multiplied by the number of months set forth in the Severance Period (as defined below)(such payment, the “Severance Payment”), (ii) the Post-Termination Bonus (as defined below) and (iii) an additional one-time bonus of $20,000 (the “One-Time Bonus”). Subject to Sections 6(e) and 7(a) of this Agreement (i) the Severance Payment and the One-Time Bonus shall be paid on the sixtieth (60th) day following the

 

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date of termination and (ii) the Post-Termination Bonus shall be paid at the time provided in the applicable Bonus Plan or form of annual award issued thereunder.

 

c)              Severance Period. For purposes of this Agreement, the Severance Period shall be twenty (20) months; provided however, that if Executive’s employment terminates pursuant to Section 5(d) or 5(e) of this Agreement, then the Severance Period shall be the greater of twenty (20) months or the number of months remaining in the Initial Term; provided further, that if the Executive’s employment terminates hereunder during the twelve (12) month period following a Change in Control (as defined below), then the Severance Period shall be twenty-four (24) months.  In the event of any breach by the Executive of any Restricted Period term, the Severance Period shall immediately terminate.  For the avoidance of doubt, this Section 6(c) shall apply in the event of any termination of Executive’s employment by the Company other than for Cause or any resignation by Executive for Good Reason (whether such termination or resignation occurs during the Term or following expiration of the Term).

 

d)             Post-Termination Bonus. For the purposes of this Agreement, the Post-Termination Bonus shall be determined by multiplying (i) the Target Bonus for the year in which the termination occurs and (ii) a fraction, the numerator of which is the number of days from the beginning of the calendar year through the date of termination, and the denominator of which is three-hundred and sixty-five (365).

 

e)              Release of Claims. Any obligation of the Company for the payment of any Severance Payment, the Post-Termination Bonus, or the One-Time Bonus is conditioned on the Executive’s signing and returning to the Company a general release of claims, in the form provided by the Company, existing at the time the Executive’s employment terminates (the “Employee Release”). The Executive must sign and return the Employee Release, if at all, by the deadline specified therein, which deadline shall in no event be shorter than seven (7) days after the termination date. The Employee Release shall take effect on the expiration of any revocation period specified therein, which shall be no longer than seven (7) days from the date of the Executive’s signature.

 

f)               Effect of Termination. Performance by the Company of its obligations under Section 6 shall constitute the sole obligations of the Company in connection with the termination of the Executive’s employment hereunder. Except for any right of the Executive to continue medical and dental plan participation in accordance with applicable law, benefits shall terminate pursuant to the terms of the applicable benefit plans based on the date of termination of the Executive’s employment without regard to the payment of any Severance Payment or Post-Termination Bonus.

 

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g)              Return of Property. Upon termination of the Executive’s employment, or earlier following a determination by the Board that cause may exist for such termination, the Executive agrees to deliver to the Company all property, proprietary materials, Confidential Information, documents and computer media in any form (and all copies thereof) of the Company, its affiliates and its clients in the Executive’s possession or control, including but not limited to manuals, photographs, reports, customer and supplier lists, plans, costs of materials, software, equipment (including, but not limited to, computers and computer-related items, including all computer software and all computer system or software passwords, access codes, authorization codes, or similar information), and all other materials or other things in the Executive’s possession, custody, or control that are the property of the Company including, but not limited to, identification, keys, and the like, wherever such items may have been located; as well as all copies (in whatever form thereof) of all materials relating to the Executive’s employment, or obtained or created in the course of the Executive’s employment, with the Company.

 

h)             As soon as reasonably practicable after the payment of the Final Compensation and the Severance Payment by the Company, China Co. and/or US Co. shall reimburse the Company of their respective portion of such payment calculated based on the allocation determined pursuant to Section 4(a).

 

7.             Timing of Payments and Section 409A.

 

a)             Notwithstanding anything to the contrary in this Agreement, if at the time of the Executive’s termination of employment, the Executive is a “specified employee”, any and all amounts payable under Section 6 on account of such 
 “separation from service” that would (but for this Section 7(a)) be payable within six (6) months following the date of termination, shall instead be paid on the next business day following the expiration of such six (6) month period.

 

b)             For purposes of this Agreement, “separation from service” shall be determined in a manner consistent with subsection (a)(2)(A)(i) of Section 409A, and the term “specified employee” shall mean an individual determined by the Company to be a specified employee as defined in subsection (a)(2)(B)(i) of Section 409A.

 

c)              Each payment made under this Agreement shall be treated as a “separate payment” and the right to a series of installment payments under this Agreement is to be treated as a right to a series of separate payments.

 

d)             The Executive’s right to reimbursement for business expenses hereunder shall be subject to the following additional rules: (i) the amount of expenses eligible for reimbursement during any calendar year shall not affect the expenses eligible for reimbursement in any other taxable year, (ii) reimbursement shall

 

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be made not later than December 31 of the calendar year following the calendar year in which the expense was incurred, and (iii) the right to reimbursement is not subject to liquidation or exchange for any other benefit.

 

8.             Confidential Information.

 

a)             The Executive acknowledges that the Company and its Affiliates continually develop Confidential Information, that the Executive may develop Confidential Information for the Company or its Affiliates and that the Executive may learn of Confidential Information during the course of employment. The Executive will comply with the policies and procedures of the Company and its Affiliates for protecting Confidential Information and shall not disclose to any Person or use, other than as required by applicable law or for the proper performance of his duties and responsibilities to the Company and its Affiliates, any Confidential Information obtained by the Executive incident to his employment or other association with the Company or any of its Affiliates. The Executive understands that this restriction shall continue to apply after his employment terminates, regardless of the reason for such termination. The confidentiality obligation under this Section 8 shall not apply to information that is generally known or readily available to the public at the time of disclosure, is known by the Executive prior to his affiliation with the Company or based on his long-standing experience in the industry, or becomes generally known through no wrongful act on the part of the Executive or any other Person having an obligation of confidentiality to the Company or any of its Affiliates.

 

b)             All documents, records, tapes and other media of every kind and description relating to the business, present or otherwise, of the Company or its Affiliates and any copies, in whole or in part, (the “Documents”), whether or not prepared by the Executive, shall be the sole and exclusive property of the Company and its Affiliates. The Executive shall safeguard all Documents and shall surrender to the Company at the time his employment terminates, or at such earlier time or times as the Board or its designee may specify, all Documents then in the Executive’s possession or control.

 

c)              Executive agrees and acknowledges that, by virtue of the Executive’s employment and position with the Company, the Executive shall have access to and maintain an intimate knowledge of the Company’s activities and affairs and Confidential Information, including trade secrets, confidential business information, and other confidential matters. As a result of such access and knowledge, and because of the special, unique, and extraordinary services that the Executive is capable of performing for the Company or one of its competitors, the Executive acknowledges that the services to be rendered by the Executive pursuant to this Agreement are of a character giving them a peculiar value, the loss of which cannot adequately or reasonably be compensated by money damages. Executive further acknowledges that the

 

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limitations set forth in this Agreement are fair and reasonable, and will not prevent the Executive from earning a livelihood after the Executive leave the Company’s employ. Executive recognizes that these restrictions are appropriate based on the special and unique nature of the services the Executive will render, the access to confidential information and trade secrets that the Executive will enjoy, the access to the Company Confidential Information and customers and investors the Executive will have as a result of the Executive’s employment and position with the Company, and the risk of unfair competition that the Company will face absent such restrictions.

 

d)             Consequently, the Executive agrees that any material breach or threatened material breach by the Executive of the Executive’s obligations under Section 8 of this Agreement would cause irreparable injury to the Company, and that the Company shall be entitled to (i) preliminary and permanent injunctions enjoining the Executive from violating such provisions without first posting a bond, and (ii) all money damages available to the Company and its affiliates, including fees, compensation, benefits, profits or other remuneration earned by the Executive or any competitor as a result of any such breach, together with interest, and costs and attorneys’ fees expended to collect such damages or secure such injunctions; provided however, that the Company shall pay Executive’s costs and attorneys’ fees if Company is not awarded injunctive relief and/or damages in any such proceeding. Nothing in this Agreement, however, shall be construed to prohibit the Company from pursuing any other remedy, the parties having agreed that all such remedies shall be cumulative. The Company and its affiliates shall be entitled to obtain emergency equitable relief, including a temporary restraining order and/or preliminary injunction, in aid of arbitration, from any court of competent jurisdiction. Upon the issuance (or denial) of an injunction, the underlying merits of any dispute will be resolved in accordance with the arbitration provisions of this Agreement.

 

9.             Assignment of Rights to Intellectual Property. The Executive shall promptly and fully disclose all Intellectual Property to the Company. The Executive hereby assigns and agrees to assign to the Company (or as otherwise directed by the Company) the Executive’s full right, title and interest in and to all Intellectual Property. The Executive agrees to execute any and all applications for domestic and foreign patents, copyrights or other proprietary rights and to do such other acts (including without limitation the execution and delivery of instruments of further assurance or confirmation) requested by the Company to assign the Intellectual Property to the Company and to permit the Company to enforce any patents, copyrights or other proprietary rights to the Intellectual Property. The Executive will not charge the Company for time spent in complying with these obligations. All copyrightable works that the Executive creates shall be considered “work made for hire” and shall, upon creation, be owned exclusively by the Company.

 

10.          Restricted Activities. The Executive agrees that the following restrictions on his activities during and after his employment are necessary to protect the good will, Confidential Information, trade secrets and other legitimate interests of the Company and its Affiliates:

 

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a)             During Executive’s employment with the Company, the Executive will not undertake any outside activity, whether or not competitive with the business of the Company or its Affiliates that could reasonably give rise to a conflict of interest or otherwise interfere with his duties and obligations to the Company or any of its Affiliates.

 

b)             During Executive’s employment with the Company and for eighteen (18) months (the “Restricted Period”) after his employment terminates pursuant to Sections 5(c), 5(d), 5(e) or 5(f) of this Agreement, the Executive shall not, directly or indirectly, on behalf of a Competing Business, whether as owner, partner, investor, consultant, agent, employee, co-venturer or otherwise, compete with the Company or any of its Affiliates or undertake any planning for any Competing Business. Specifically, but without limiting the foregoing, the Executive agrees not to engage in any manner, or work or provide services, in any capacity, whether as an employee, independent contractor or otherwise, whether with or without compensation, to any Person who is engaged in any Competing Business.  For the purposes of this Section 10, Competing Business of the Company and its Affiliates shall be deemed to include all Products and the Executive’s undertaking shall encompass all items, products and services that may be used in substitution for Products. The foregoing, however, shall not prevent the Executive’s passive ownership of five percent (5%) or less of the equity securities of any non-competing publicly traded company.

 

c)              During the Restricted Period, the Executive will not directly or indirectly (a) solicit or encourage any customer of the Company or any of its Affiliates to terminate or diminish its relationship with them; or (b) seek to persuade any such customer or prospective customer of the Company or any of its Affiliates to conduct with anyone else any business or activity which such customer or prospective customer conducts or could conduct with the Company or any of its Affiliates; provided that these restrictions shall apply (y) only with respect to those Persons who are or have been a customer of the Company or any of its Affiliates at any time within the immediately preceding one year period or whose business has been solicited on behalf of the Company or any of the Affiliates by any of their officers, employees or agents within that one year period, other than by form letter, blanket mailing or published advertisement, and (z) only if the Executive has performed work for such Person during his employment with the Company or one of its Affiliates or been introduced to, or otherwise had contact with, such Person as a result of his employment or other associations with the Company or one of its Affiliates or has had access to Confidential Information which would assist in the Executive’s solicitation of such Person.

 

d)             During the Restricted Period, the Executive will not, and will not assist any other Person to, (a) hire or solicit for hiring any employee of the Company or any of its Affiliates or seek to persuade any employee of the Company or any

 

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of its Affiliates to discontinue employment or (b) solicit or encourage any independent contractor providing services to the Company or any of its Affiliates to terminate or diminish his/her relationship with them. For the purposes of this Agreement, an “employee” of the Company or any of its Affiliates is any person who was such at any time within the preceding two years. An exception shall be made for Ms. Maggie Liu. For the avoidance of doubt, the foregoing provision shall not prohibit a general solicitation of employment in the ordinary course of business or prevent the Executive, or subsequent employer of the Executive, from employing any employee who contacts the Executive as a result of such a general solicitation or at his or her own initiative without any direct or indirect solicitation by or encouragement from the Executive.

 

11.          Conflicting Agreements. The Executive hereby represents and warrants that the execution of this Agreement and the performance of his obligations hereunder will not breach or be in conflict with any other agreement to which the Executive is a party or is bound and that the Executive is not now subject to any covenants against competition or similar covenants or any court order or other legal obligation that would affect the performance of his obligations hereunder. The Executive will not disclose to or use on behalf of the Company any proprietary information of a third party without such party’s consent.

 

12.          Indemnification. The Company shall indemnify the Executive to the fullest extent provided in its Articles or By-Laws. The Executive agrees to promptly notify the Company of any actual or threatened claim arising out of or as a result of his employment with the Company.

 

13.          Survival. Provisions of this Agreement shall survive any termination if so provided herein or if necessary or desirable to accomplish the purposes of other surviving provisions, including without limitation the obligations of the Executive under Sections 8, 9, 10, 11 and 14 hereof, and obligations of the Company under Sections 4, 5, 6, 7, 12, 14 and 27.  The obligation of the Company to make, and the right of the Executive to retain, any Severance Payment or Post-Termination Bonus is expressly conditioned upon the Executive’s continued full performance of his obligations under Sections 8, 9, 10, 11 and 14 hereof.

 

14.          Non-disparagement. Executive agrees that he will not, directly or indirectly, individually or in concert with others, engage in any conduct or make any statement that is likely to have the effect of undermining or disparaging the reputation of the Company, or its good will, products, or business opportunities, or that is likely to have the effect of undermining or disparaging the reputation of any officer, director, agent, representative or employee, past or present, of the Company.  Company agrees that, except for circumstances relating to a termination of Executive’s employment by the Company for Cause, its officers, directors and senior management shall not directly or indirectly, individually or in concert with others, engage in any conduct or make any statement that is likely to have the effect of undermining or disparaging the reputation of Executive.

 

15.          Blue Pencil/Remedies. Executive and the Company agree that the covenant not to compete is a reasonable covenant under the circumstances, and further agree that if in the

 

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opinion of any court of competent jurisdiction such restraint is not reasonable in any respect, such court shall have the right, power and authority to excise or modify such provision or provisions of this covenant as to the court shall appear not reasonable and to enforce the remainder of the covenant as so amended. Executive agrees that any breach of the covenants contained in this document would irreparably injure the Company. Accordingly, Executive agrees that the Company may, in addition to pursuing any other remedies it may have in law or in equity, cease making any payments otherwise required by this Agreement and obtain an injunction against Executive from any court having jurisdiction over the matter restraining any further violation of this Agreement by Executive.

 

16.          Definitions. Words or phrases that are initially capitalized or are within quotation marks shall have the meanings provided in this Section and as provided elsewhere in this agreement. For purposes of this Agreement, the following definitions apply:

 

“Affiliates” means all entities directly or indirectly controlling, controlled by or under common control with the Company, where control may be by management authority, contract or equity interest.

 

“Change in Control” means (1) a sale of all or substantially all of the Company’s assets, or (2) any merger, consolidation or other business combination transaction of the Company with or into another corporation, entity or person, other than a transaction in which the holders of at least a majority of the shares of voting capital stock of the Company outstanding immediately prior to such transaction continue to hold (either by such shares remaining outstanding or by their being converted into shares of voting capital stock of the surviving entity) a majority of the total voting power represented by the shares of voting capital stock of the Company (or the surviving entity) outstanding immediately after such transaction, or (3) the direct or indirect acquisition (including by way of a tender or exchange offer) by any person, or persons acting as a group, of beneficial ownership or a right to acquire beneficial ownership of shares representing a majority of the voting power of the then outstanding shares of capital stock of the Company. Notwithstanding the foregoing, a Change of Control shall not be deemed to occur (A) on account of the acquisition of shares of voting capital stock by any institutional investor or any affiliate thereof or any other person, or persons acting as a group, that acquires the Company’s shares of voting capital stock in a transaction or series of related transactions that are primarily a private financing transaction for the Company or (B) solely because the level of ownership held by any institutional investor or any affiliate thereof or any other person, or persons acting as a group (the “Subject Person”), exceeds the designated percentage threshold of the outstanding shares of voting capital stock as a result of a repurchase or other acquisition of shares of voting capital stock by the Company reducing the number of shares outstanding, provided that if a Change of Control would occur (but for the operating of this sentence) as a result of the acquisition of shares of voting capital stock by the Company, and after such share acquisition, the Subject Person becomes the owner of any additional shares of voting capital stock that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding shares of voting capital stock owned by such Subject Person over the designated percentage threshold, then a Change of Control shall be deemed to occur.

 

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“Confidential Information” means all confidential information, proprietary information, trade secrets or other information (whether oral or written) regarding the business or affairs of the Company, its affiliates and its customers, including, without limitation, information as to the Company’s research, development, testing, manufacturing, marketing, and financial practices and strategies, scientific and medical theories, research product, financial activities, products, services, systems, designs, inventions, finances, marketing plans, prospects, pricing, pricing strategies, programs, methods of operation, prospective and existing contracts, customer identities and lists and other business arrangements or business plans, procedures, and strategies, costs, profits, databases, personnel, operational methods, potential transactions, pending negotiations, computer programs, algorithms, pending patent applications, systems, contractual negotiations, terms of agreements, client lists, financial results, business developments or internal controls and security procedures, except to the extent (i) the same shall have been lawfully and without breach of obligation made available to the general public without restriction, or (ii), was previously known to the Executive prior to the term of the Executive’s employment with the Company. The foregoing is not an exhaustive list and Confidential Information also may include, without  limitation, any other information, documents or materials that may be identified as confidential or proprietary, or which would otherwise appear to a reasonable person, in the context in which the information, documents or materials are received, provided or learned, to have such status.

 

In the event the Executive is asked to disclose any Confidential Information pursuant to any legal process, the Executive shall immediately notify the Company of such fact, and shall thereafter cooperate with the Company (at its expense) in any lawful response to such legal process as the Company may request, in which event the Executive may disclose Confidential Information to the extent, and at the time, the Executive is legally required to do so pursuant to any applicable legal process.

 

“Intellectual Property” means inventions, discoveries, developments, methods, processes, compositions, works, concepts and ideas (whether or not patentable or copyrightable or constituting trade secrets) conceived, made, created, developed or reduced to practice by the Executive (whether alone or with others, whether or not during normal business hours or on or off Company premises) during the Executive’s employment that relate to either the Products or any prospective activity of the Company or any of its Affiliates or that make use of Confidential Information or any of the equipment or facilities of the Company or any of its Affiliates.

 

“Person” means an individual, a corporation, a limited liability company, an association, a partnership, an estate, a trust and any other entity or organization, other than the Company or any of its Affiliates.

 

“Products” mean all products that the Company is developing, testing, manufacturing, licensing, leasing or otherwise distributing or is planning (during the time of the Executive’s employment with the Company) to develop, test, manufacture, license, lease or distribute at the time of termination, during the Executive’s employment.

 

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17.          Withholding. All payments made by the Company under this Agreement shall be reduced by any tax or other amounts required to be withheld by the Company under applicable law.

 

18.          Assignment.

 

a)             Neither the Company nor the Executive may make any assignment of this Agreement or any interest herein, by operation of law or otherwise, without the prior written consent of the other; provided, however, that the Company may assign its rights and obligations under this Agreement without the consent of the Executive in the event that the Executive is transferred to a position with any of the Affiliates or in the event that the Company shall hereafter effect a reorganization, consolidate with, or merge into, any Person or transfer all or substantially all of its properties or assets to any Person. This Agreement shall inure to the benefit of and be binding upon the Company and the Executive, their respective successors, executors, administrators, heirs and permitted assigns.

 

b)             The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid.

 

19.          Severability. If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

20.          Waiver. No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of either party to require the performance of any term or obligation of this Agreement, or the waiver by either party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

 

21.          Notices. Any and all notices, requests, demands and other communications provided for by this Agreement shall be in writing and shall be effective when delivered in person, consigned to a reputable national courier service or deposited in the United States mail, postage prepaid, registered or certified, and addressed to the Executive at his last known address on the books of the Company, with a copy to Brian S. Kaplan, Esq., DLA Piper LLP (US), 1251 Avenue of the Americas, New York, NY 10020, or, in the case of the Company, at its principal

 

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place of business, attention of the Chair of the Board, or to such other address as either party may specify by notice to the other actually received.

 

22.          Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior communications, agreements and understandings, written or oral, with respect to the terms and conditions of the Executive’s employment.

 

23.          Amendment. This Agreement may be amended or modified only by a written instrument signed by the Executive and by an expressly authorized representative of the Company.

 

24.          Headings. The headings and captions in this Agreement are for convenience only and in no way define or describe the scope or content of any provision of this Agreement.

 

25.          Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

 

26.          Governing Law. This is a Cayman Islands contract and shall be construed and enforced under and be governed in all respects by the laws of Cayman Islands, without regard to the conflict of laws principles thereof.

 

27.          No Mitigation.  In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, and such amounts shall not be reduced whether or not the Executive obtains other employment.  The amounts payable hereunder shall not be subject to setoff, counterclaim, recoupment, defense or other right which the Company may have against Executive or others not arising under this Agreement.

 

28.          Arbitration.

 

a)             The parties irrevocably and unconditionally agree that any past, present, or future dispute, controversy, or claim arising under or relating to this Agreement; arising under any statute, regulation, law, ordinance, or the common law (including but not limited to any law prohibiting discrimination); or arising in connection with the Executive’s employment or the termination thereof; involving the Executive on the one hand and the Company, any of its affiliates, and/or any of their collective officers, directors, principals, or employees on the other hand, including both claims brought by the Executive and claims brought against the Executive, shall be submitted for resolution to binding arbitration as provided herein. Such arbitration will be conducted in New York, New York, and the arbitrator will apply Cayman Islands law, including U.S. federal statutory law as applied in New York courts. The arbitrator, and not any court or agency, shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability, and/or formation of this Agreement, including but not limited to any dispute as to whether (i) a particular claim is subject to arbitration hereunder and/or

 

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(ii) any part of this Agreement is void or voidable. The arbitral award shall be in writing, state the reasons for the award, and be final and binding on the parties. The arbitration shall be conducted on a strictly confidential basis, and no party, arbitrator, or other person or entity shall disclose the existence or nature of any claim; any documents, correspondence, pleadings, briefing, exhibits, or information exchanged or presented in connection with any claim; or any rulings, decisions, or results of any claim or argument (collectively, “Arbitration Materials”) to any third party, with the sole exception of the parties’ legal counsel (who shall also be bound by these confidentiality terms) and the Company’s auditors. The arbitrator shall not have authority to award attorneys’ fees or costs, punitive damages, compensatory damages, damages for emotional distress, penalties, or any other damages or relief not measured by the prevailing party’s actual out-of-pocket losses, except to the extent such relief is explicitly available under a statute, ordinance, or regulation pursuant to which a claim is brought. The arbitrator also shall not have authority to entertain claims for class or collective relief.

 

b)             Any arbitration pursuant to this Agreement shall be administered by the American Arbitration Association (“AAA”); shall be conducted in accordance with the AAA Arbitration Rules for Employment Disputes, as modified herein; and shall be conducted by a single arbitrator, who shall be a partner in a law firm based in New York City with experience in employment disputes. Notwithstanding any provision of the AAA Rules, in the event the Executive pursues a claim(s) arising under any statute, regulation, or ordinance, the Company shall be solely responsible for such portion of the arbitrator’s fees, arbitration filing fees, and arbitration administrative fees that are in excess of the forum and filing costs the Executive would incur if the Executive pursued such claim(s) in court.

 

c)              In the event of any court proceeding to challenge or enforce an arbitrator’s award, the parties hereby consent to the exclusive jurisdiction of the state and federal courts sitting in New York, New York; agree to exclusive venue in that jurisdiction; and waive any claim that such jurisdiction is an inconvenient forum. There shall be no interlocutory appeals to any court, or any motions to vacate any order of the Arbitrator that is not a final Award dispositive of the arbitration in its entirety, except as required by law. The parties agree to take all steps necessary to protect the confidentiality of the Arbitration Materials in connection with any court proceeding, agree to use their best efforts to file all Confidential Information (and documents containing Confidential Information) under seal, and agree to the entry of an appropriate protective order encompassing the confidentiality terms of this Agreement.

 

d)             The parties knowingly and voluntarily agree to the arbitration provisions set forth in this Agreement and acknowledge and hereby waive their right to a jury trial of any claim arising under this Agreement, including any claim that may be held to be not subject to arbitration. The failure by the Company to

 

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complain of any of the Executive’s acts or omissions, or to declare the Executive in breach, shall not constitute a waiver by the Company of its rights hereunder.

 

[Signature page follows immediately.]

 

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IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by the Company, by its duly authorized representative, and by the Executive, as of the date first above written.

 

 

	
EXECUTIVE
    	
 
    	
BEIGENE, LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ John V. Oyler
    	
 
    	
By:
    	
/s/ Qingqing Yi
    
	
John V. Oyler
    	
 
    	
 
    	
Name: Qingqing Yi
    
	
 
    	
 
    	
 
    	
Title: Director
    

 

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Exhibit A

 

SECONDMENT AGREEMENT

 

This Secondment Agreement (this “Agreement”) is made and entered into by and among BeiGene, Ltd. (the “Company”), BeiGene (Beijing) Co., Limited (the “China Co.”), a company formed in the People’s Republic of China (“PRC”) and John V. Oyler (the “Executive”), on April 25, 2017 (the “Effective Date”).  Capitalized terms used but not defined in this Agreement shall have the meanings assigned to them in the Employment Agreement entered into by and between the Company and the Executive, dated the date hereof (the “Employment Agreement”).

 

WHEREAS, the Company entered into the Employment Agreement with the Executive on the date hereof;

 

WHEREAS, the Company wishes to second the Executive to the China Co., a wholly-owned subsidiary of the Company, to provide certain service for the China Co. and the China Co. wishes to accept the service of the Executive and to set forth the terms and conditions of the  relationship among the Company, the China Co. and the Executive.

 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises, terms, provisions and conditions set forth in this Agreement, the parties hereby agree:

 

1.                                      Secondment. Subject to the terms and conditions set forth in this Agreement, the Company seconds the Executive to the China Co. to undertake certain work and the China Co. and the Executive hereby accepts the secondment.  During the Term of this Agreement, the employment relationship between the Company and the Executive shall exist and any rights and obligations with respect to the employment between the Company and the Executive shall be determined pursuant to the laws of the Cayman Islands.  Furthermore, during the Term of this Agreement, there shall only be service relationship established pursuant to this Agreement between the China Co. and the Executive and shall not be any employment relationship or de facto employment relationship under the laws of PRC between the China Co. and the Executive.

 

2.                                      Term. The Term of this Agreement shall start from the Effective Date of this Agreement and expire on the termination date of the Employment Agreement, subject to the Executive’s timely obtaining and maintenance of requisite visa, work permit and/or residence permit (as applicable) under the relevant PRC laws.

 

3.                                      Capacity and Performance. Subject to the terms and conditions of Section 3 of the Employment Agreement, during the Term, the Executive shall serve the China Co. as Chief Executive Officer, and shall report to the Board of Directors of the China Co. (the “Board”).  For avoidance of doubt, the Executive shall not be deemed to be working on behalf of the Company when the Executive is present in China.

 

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4.                                      Compensation and Benefits. Subject to the terms and conditions of Section 4 of the Employment Agreement, as compensation for all services performed by the Executive for the China Co. during the Term and subject to the Executive’s performance of his duties and obligations to the China Co., pursuant to this Agreement or otherwise, the China Co. shall provide the Executive with the following compensation and benefits:

 

a)             Base Salary. During the Term, the China Co. shall pay the Executive a portion of the Base Salary as determined pursuant to Section 4(a) of the Employment Agreement. To the extent the China Co. does not make timely payment of its portion of the Base Salary, the China Co. agrees to reimburse the Company any such payment made by the Company on behalf of the China Co. as soon as reasonably practicable. In 2017, the China Co. shall be responsible for 20% of the Base Salary. Within the first 30 days of each following calendar year, China Co. shall true up the Company and/or the US Co. based on the amount of work actually performed by the Executive in the past calendar year and shall assess and re-allocate the payment responsibility of the Base Salary for the current year as necessary.

 

b)             Other Benefits. During the Term, the Executive shall be entitled to participate in or receive benefits provided by the China Co. as set forth in Section 4(d) of the Employment Agreement, except to the extent any such benefit is in a category of benefit otherwise provided to the Executive by the Company, US Co. or otherwise.

 

c)              Business Expenses. The China Co. shall pay or reimburse the Executive for all reasonable and customary business expenses incurred or paid by the Executive in the performance of his duties and responsibilities hereunder, subject to any maximum annual limit and other restrictions on such expenses set by the Board (i.e. China Co. Travel Policy) and to such reasonable substantiation and documentation as may be specified by the China Co. from time to time.

 

5.                                      Termination of Secondment. This Agreement and the Executive’s secondment hereunder shall terminate immediately upon any of the following circumstances occur: (i) the Executive’s employment under the Employment Agreement is terminated; (ii) the Executive ceases to be an employee of the Company, for any reason; or (iii) any visa, work permit or other certificate or document required for the Executive under the applicable PRC laws is expired, terminated or revoked.  Furthermore, the Company shall have the right to shorten the Term of secondment or terminate this Agreement in advance, with or without reason, provided that the Company informs the China Co. and the Executive in writing 60 days in advance.

 

6.                                      Severance Payments and Other Matters Related to Separation under the Employment Agreement. As soon as reasonably practicable after the payment of the Final Compensation and the Severance Payment to the Executive by the Company pursuant to the Employment Agreement, the China Co. shall reimburse the Company of its portion of such payment calculated based on the allocation determined pursuant to Section 4(a) of the Employment Agreement.  For avoidance of doubt, the Executive shall not be entitled to any

 

24

 

severance payments for termination of this Agreement or the secondment hereunder and shall not claim against the Company, the China Co. or any other Affiliate for any severance payments based on this Agreement or the secondment hereunder.  Furthermore, the China Co. shall not be required to bear any amount other than its portion as agreed under the Employment Agreement.

 

7.                                      Withholding. All payments made by the China Co. under this Agreement shall be reduced by any tax or other amounts required to be withheld by the China Co. under applicable law.  In the event the Executive shall participate in the PRC social insurance scheme according to the relevant PRC laws and local regulations, the China Co. will withhold and deduct the individual’s part of social insurance contributions from the portion of Base Salary payable by the China Co. pursuant to law.

 

8.                                      Conflicting Agreements. The Executive hereby represents and warrants that the execution of this Agreement and the performance of his obligations hereunder will not breach or be in conflict with any other agreement to which the Executive is a party or is bound and that the Executive is not now subject to any covenants against competition or similar covenants or any court order or other legal obligation that would affect the performance of his obligations hereunder. The Executive will not disclose to or use on behalf of the China Co. any proprietary information of a third party without such party’s consent.

 

9.                                      Non-disparagement. Executive agrees that he will not, directly or indirectly, individually or in concert with others, engage in any conduct or make any statement that is likely to have the effect of undermining or disparaging the reputation of the China Co., or its good will, products, or business opportunities, or that is likely to have the effect of undermining or disparaging the reputation of any officer, director, agent, representative or employee, past or present, of the China Co.  The China Co. agrees that, except for circumstances relating to a termination of Executive’s employment by the Company for Cause, its officers, directors and senior management shall not directly or indirectly, individually or in concert with others, engage in any conduct or make any statement that is likely to have the effect of undermining or disparaging the reputation of Executive.

 

10.                               Survival. Provisions of this Agreement shall survive any termination if so provided herein or if necessary or desirable to accomplish the purposes of other surviving provisions, including without limitation the obligations of the Executive under Sections 8 and 9 hereof, and obligations of the China Co. under Sections 4, 5, 6 and 9.

 

11.                               Severability. If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

12.                               Waiver. No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of either party to require the performance of

 

25

 

any term or obligation of this Agreement, or the waiver by either party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

 

13.                               Notices. Any and all notices, requests, demands and other communications provided for by this Agreement shall be in writing and shall be effective when delivered in person, consigned to a reputable national courier service or deposited in the United States mail, postage prepaid, registered or certified, and addressed to the Executive at his last known address on the books of the China Co., with a copy to Brian S. Kaplan, Esq., DLA Piper LLP (US), 1251 Avenue of the Americas, New York, NY 10020, or, in the case of the Company or the China Co., at their respective principal places of business, attention of the Chair of the Boards, or to such other addresses as either party may specify by notice to the others actually received.

 

14.                               Entire Agreement. This Agreement constitutes the entire agreement among the parties and supersedes all prior communications, agreements and understandings, written or oral, with respect to the terms and conditions of the Executive’s secondment to the China Co..

 

15.                               Amendment. This Agreement may be amended or modified only by a written instrument signed by the Executive and by the expressly authorized representatives of the Company and the China Co.

 

16.                               Headings. The headings and captions in this Agreement are for convenience only and in no way define or describe the scope or content of any provision of this Agreement.

 

17.                               Counterparts. This Agreement may be executed in three or more counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

 

18.                               Governing Law. This Agreement shall be construed and enforced under and be governed in all respects by the laws of the Cayman Islands, without regard to the conflict of laws principles thereof.

 

19.                               Arbitration.

 

a)             The parties irrevocably and unconditionally agree that any past, present, or future dispute, controversy, or claim arising under or relating to this Agreement; arising under any statute, regulation, law, ordinance, or the common law (including but not limited to any law prohibiting discrimination); or arising in connection with the Executive’s secondment or the termination thereof; involving the Executive on the one hand and the China Co., the Company, any of its affiliates, and/or any of their collective officers, directors, principals, or employees on the other hand, including both claims brought by the Executive and claims brought against the Executive, shall be submitted for resolution to binding arbitration as provided herein. Such arbitration will be conducted in New York, New York, and the arbitrator will apply Cayman Islands law, including U.S. federal statutory law as applied in New York courts. The arbitrator, and not any court or agency, shall have exclusive

 

26

 

authority to resolve any dispute relating to the interpretation, applicability, enforceability, and/or formation of this Agreement, including but not limited to any dispute as to whether (i) a particular claim is subject to arbitration hereunder and/or (ii) any part of this Agreement is void or voidable. The arbitral award shall be in writing, state the reasons for the award, and be final and binding on the parties. The arbitration shall be conducted on a strictly confidential basis, and no party, arbitrator, or other person or entity shall disclose the existence or nature of any claim; any documents, correspondence, pleadings, briefing, exhibits, or information exchanged or presented in connection with any claim; or any rulings, decisions, or results of any claim or argument (collectively, “Arbitration Materials”) to any third party, with the sole exception of the parties’ legal counsel (who shall also be bound by these confidentiality terms) and the China Co.’s auditors. The arbitrator shall not have authority to award attorneys’ fees or costs, punitive damages, compensatory damages, damages for emotional distress, penalties, or any other damages or relief not measured by the prevailing party’s actual out-of-pocket losses, except to the extent such relief is explicitly available under a statute, ordinance, or regulation pursuant to which a claim is brought. The arbitrator also shall not have authority to entertain claims for class or collective relief.

 

b)             Any arbitration pursuant to this Agreement shall be administered by the American Arbitration Association (“AAA”); shall be conducted in accordance with the AAA Arbitration Rules for Employment Disputes, as modified herein; and shall be conducted by a single arbitrator, who shall be a partner in a law firm based in New York City with experience in employment disputes. Notwithstanding any provision of the AAA Rules, in the event the Executive pursues a claim(s) arising under any statute, regulation, or ordinance, the China Co. shall be solely responsible for such portion of the arbitrator’s fees, arbitration filing fees, and arbitration administrative fees that are in excess of the forum and filing costs the Executive would incur if the Executive pursued such claim(s) in court.

 

c)              In the event of any court proceeding to challenge or enforce an arbitrator’s award, the parties hereby consent to the exclusive jurisdiction of the state and federal courts sitting in New York, New York; agree to exclusive venue in that jurisdiction; and waive any claim that such jurisdiction is an inconvenient forum. There shall be no interlocutory appeals to any court, or any motions to vacate any order of the Arbitrator that is not a final Award dispositive of the arbitration in its entirety, except as required by law. The parties agree to take all steps necessary to protect the confidentiality of the Arbitration Materials in connection with any court proceeding, agree to use their best efforts to file all Confidential Information (and documents containing Confidential Information) under seal, and agree to the entry of an appropriate protective order encompassing the confidentiality terms of this Agreement.

 

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d)             The parties knowingly and voluntarily agree to the arbitration provisions set forth in this Agreement and acknowledge and hereby waive their right to a jury trial of any claim arising under this Agreement, including any claim that may be held to be not subject to arbitration. The failure by the China Co. or the Company to complain of any of the Executive’s acts or omissions, or to declare the Executive in breach, shall not constitute a waiver by the China Co. or the Company of its rights hereunder.

 

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IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by the Company and the China Co., by their duly authorized representatives, and by the Executive, as of the date first above written.

 

 

	
EXECUTIVE
    	
 
    	
BEIGENE, LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ John V. Oyler
    	
 
    	
By:
    	
/s/ Qingqing Yi
    
	
John V. Oyler
    	
 
    	
Name:
    	
Qingqing Yi
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
BEIGENE (BEIJING) CO., LIMITED
    
	
 
    	
 
    	
(Chop)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
      [Chop]
    
	
 
    	
 
    	
Its:
    	
 
    
					

 

29

 

Exhibit B

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (this “Agreement”) is made and entered into by and between BeiGene USA, Inc. (the “US Co.”), a Delaware corporation and John V. Oyler (the “Executive”), on April 25, 2017 (the “Effective Date”).  Capitalized terms used but not defined in this Agreement shall have the meanings assigned to them in the Employment Agreement entered into by and between BeiGene, Ltd. (the “Company”) and the Executive, dated the date hereof (the “Employment Agreement”).

 

WHEREAS, the Company entered into the Employment Agreement with the Executive on the date hereof;

 

WHEREAS, the US Co., a wholly-owned subsidiary of the Company wishes to enter into this Agreement with the Executive to set forth the terms and conditions of the employment relationship between the US Co. and the Executive.

 

NOW, THEREFORE, in consideration of the foregoing premises and the mutual promises, terms, provisions and conditions set forth in this Agreement, the parties hereby agree:

 

1.                                      Employment. Subject to the terms and conditions set forth in this Agreement, the US Co. hereby offers, and the Executive hereby accepts, employment.

 

2.                                      Term. This Agreement shall continue until the termination of the Employment Agreement.

 

3.                                      Capacity and Performance. Subject to the terms and conditions of Section 3 of the Employment Agreement, during the Term, the Executive shall serve the US Co. as Chief Executive Officer, and shall report to the Board of Directors of the U.S. Co. (the “Board”).

 

4.                                      Compensation and Benefits. Subject to the terms and conditions of Section 4 of the Employment Agreement, as compensation for all services performed by the Executive for the US Co. during the Term and subject to the Executive’s performance of his duties and obligations to the US Co., pursuant to this Agreement or otherwise, the US Co. shall provide the Executive with the following compensation and benefits:

 

a)             Base Salary. During the Term, the US Co. shall pay the Executive a portion of the Base Salary as determined pursuant to Section 4(a) of the Employment Agreement. To the extent the US Co. does not make timely payment of its portion of the Base Salary, the US Co. agrees to reimburse the Company any such payment made by the Company on behalf of the US Co. as soon as reasonably practicable. In 2017, the US Co. shall be responsible for 30% of the Base Salary. Within the first 30 days of each following calendar year, US Co. shall true up the Company and/or the China Co. based on the amount of work actually performed by the Executive in the past calendar year and shall

 

30

 

assess and re-allocate the payment responsibility of the Base Salary for the current year as necessary.

 

b)             Other Benefits. During the Term, the Executive shall be entitled to participate in or receive benefits provided by the US Co. as set forth in Section 4(d) of the Employment Agreement, except to the extent any such benefit is in a category of benefit otherwise provided to the Executive by the Company, China Co. or otherwise.

 

c)              Business Expenses. The US Co. shall pay or reimburse the Executive for all reasonable and customary business expenses incurred or paid by the Executive in the performance of his duties and responsibilities hereunder, subject to any maximum annual limit and other restrictions on such expenses set by the Board (i.e. US Co. Travel Policy) and to such reasonable substantiation and documentation as may be specified by the US Co. from time to time.

 

5.                                      Termination of Employment and Severance Benefits. The Executive’s employment hereunder shall terminate immediately upon the termination of the Executive’s employment under the Employment Agreement.

 

6.                                      Severance Payments and Other Matters Related to Separation from Service. As soon as reasonably practicable after the payment of the Final Compensation and the Severance Payment to the Executive by the Company, the US Co. shall reimburse the Company of its portion of such payment calculated based on the allocation determined pursuant to Section 4(a) of the Employment Agreement.

 

7.                                      Withholding. All payments made by the US Co. under this Agreement shall be reduced by any tax or other amounts required to be withheld by the US Co. under applicable law.

 

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8.                                      Conflicting Agreements. The Executive hereby represents and warrants that the execution of this Agreement and the performance of his obligations hereunder will not breach or be in conflict with any other agreement to which the Executive is a party or is bound and that the Executive is not now subject to any covenants against competition or similar covenants or any court order or other legal obligation that would affect the performance of his obligations hereunder. The Executive will not disclose to or use on behalf of the US Co. any proprietary information of a third party without such party’s consent.

 

9.                                      Indemnification. The US Co. shall indemnify the Executive to the fullest extent provided in its certificate of incorporation or by-laws. The Executive agrees to promptly notify the US Co. of any actual or threatened claim arising out of or as a result of his employment with the US Co.

 

10.                               Non-disparagement. Executive agrees that he will not, directly or indirectly, individually or in concert with others, engage in any conduct or make any statement that is likely to have the effect of undermining or disparaging the reputation of the US Co., or its good will, products, or business opportunities, or that is likely to have the effect of undermining or disparaging the reputation of any officer, director, agent, representative or employee, past or present, of the US Co.  The US Co. agrees that, except for circumstances relating to a termination of Executive’s employment by the Company for Cause, its officers, directors and senior management shall not directly or indirectly, individually or in concert with others, engage in any conduct or make any statement that is likely to have the effect of undermining or disparaging the reputation of Executive.

 

11.                               Survival. Provisions of this Agreement shall survive any termination if so provided herein or if necessary or desirable to accomplish the purposes of other surviving provisions, including without limitation the obligations of the Executive under Sections 8 and 10 hereof, and obligations of the US Co. under Sections 4, 5, 6, 9, 10 and 21.

 

12.                               Assignment.

 

a)             Neither the US Co. nor the Executive may make any assignment of this Agreement or any interest herein, by operation of law or otherwise, without the prior written consent of the other; provided, however, that the US Co. may assign its rights and obligations under this Agreement without the consent of the Executive in the event that the Executive is transferred to a position with any of the Affiliates or in the event that the US Co. shall hereafter effect a reorganization, consolidate with, or merge into, any Person or transfer all or substantially all of its properties or assets to any Person. This Agreement shall inure to the benefit of and be binding upon the US Co. and the Executive, their respective successors, executors, administrators, heirs and permitted assigns.

 

b)             The US Co. will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the

 

32

 

business and/or assets of the US Co. to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the US Co. would be required to perform it if no such succession had taken place. As used in this Agreement, “US Co.” shall mean the US Co. as hereinbefore defined and any successor to its business and/or assets as aforesaid.

 

13.                               Severability. If any portion or provision of this Agreement shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

 

14.                               Waiver. No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of either party to require the performance of any term or obligation of this Agreement, or the waiver by either party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach.

 

15.                               Notices. Any and all notices, requests, demands and other communications provided for by this Agreement shall be in writing and shall be effective when delivered in person, consigned to a reputable national courier service or deposited in the United States mail, postage prepaid, registered or certified, and addressed to the Executive at his last known address on the books of the US Co., with a copy to Brian S. Kaplan, Esq., DLA Piper LLP (US), 1251 Avenue of the Americas, New York, NY 10020, or, in the case of the US Co., at its principal place of business, attention of the Chair of the Board, or to such other address as either party may specify by notice to the other actually received.

 

16.                               Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior communications, agreements and understandings, written or oral, with respect to the terms and conditions of the Executive’s employment.

 

17.                               Amendment. This Agreement may be amended or modified only by a written instrument signed by the Executive and by an expressly authorized representative of the US Co.

 

18.                               Headings. The headings and captions in this Agreement are for convenience only and in no way define or describe the scope or content of any provision of this Agreement.

 

19.                               Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which together shall constitute one and the same instrument.

 

20.                               Governing Law. This is a New York contract and shall be construed and enforced under and be governed in all respects by the laws of New York, without regard to the conflict of laws principles thereof.

 

33

 

21.                               No Mitigation.  In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement, and such amounts shall not be reduced whether or not the Executive obtains other employment.  The amounts payable hereunder shall not be subject to setoff, counterclaim, recoupment, defense or other right which the US Co. may have against Executive or others not arising under this Agreement.

 

22.                               Arbitration.

 

a)             The parties irrevocably and unconditionally agree that any past, present, or future dispute, controversy, or claim arising under or relating to this Agreement; arising under any statute, regulation, law, ordinance, or the common law (including but not limited to any law prohibiting discrimination); or arising in connection with the Executive’s employment or the termination thereof; involving the Executive on the one hand and the US Co., any of its affiliates, and/or any of their collective officers, directors, principals, or employees on the other hand, including both claims brought by the Executive and claims brought against the Executive, shall be submitted for resolution to binding arbitration as provided herein. Such arbitration will be conducted in New York, New York, and the arbitrator will apply New York law, including U.S. federal statutory law as applied in New York courts. The arbitrator, and not any court or agency, shall have exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability, and/or formation of this Agreement, including but not limited to any dispute as to whether (i) a particular claim is subject to arbitration hereunder and/or (ii) any part of this Agreement is void or voidable. The arbitral award shall be in writing, state the reasons for the award, and be final and binding on the parties. The arbitration shall be conducted on a strictly confidential basis, and no party, arbitrator, or other person or entity shall disclose the existence or nature of any claim; any documents, correspondence, pleadings, briefing, exhibits, or information exchanged or presented in connection with any claim; or any rulings, decisions, or results of any claim or argument (collectively, “Arbitration Materials”) to any third party, with the sole exception of the parties’ legal counsel (who shall also be bound by these confidentiality terms) and the US Co.’s auditors. The arbitrator shall not have authority to award attorneys’ fees or costs, punitive damages, compensatory damages, damages for emotional distress, penalties, or any other damages or relief not measured by the prevailing party’s actual out-of-pocket losses, except to the extent such relief is explicitly available under a statute, ordinance, or regulation pursuant to which a claim is brought. The arbitrator also shall not have authority to entertain claims for class or collective relief.

 

b)             Any arbitration pursuant to this Agreement shall be administered by the American Arbitration Association (“AAA”); shall be conducted in accordance with the AAA Arbitration Rules for Employment Disputes, as modified herein; and shall be conducted by a single arbitrator, who shall be a partner in

 

34

 

a law firm based in New York City with experience in employment disputes. Notwithstanding any provision of the AAA Rules, in the event the Executive pursues a claim(s) arising under any statute, regulation, or ordinance, the US Co. shall be solely responsible for such portion of the arbitrator’s fees, arbitration filing fees, and arbitration administrative fees that are in excess of the forum and filing costs the Executive would incur if the Executive pursued such claim(s) in court.

 

c)              In the event of any court proceeding to challenge or enforce an arbitrator’s award, the parties hereby consent to the exclusive jurisdiction of the state and federal courts sitting in New York, New York; agree to exclusive venue in that jurisdiction; and waive any claim that such jurisdiction is an inconvenient forum. There shall be no interlocutory appeals to any court, or any motions to vacate any order of the Arbitrator that is not a final Award dispositive of the arbitration in its entirety, except as required by law. The parties agree to take all steps necessary to protect the confidentiality of the Arbitration Materials in connection with any court proceeding, agree to use their best efforts to file all Confidential Information (and documents containing Confidential Information) under seal, and agree to the entry of an appropriate protective order encompassing the confidentiality terms of this Agreement.

 

d)             The parties knowingly and voluntarily agree to the arbitration provisions set forth in this Agreement and acknowledge and hereby waive their right to a jury trial of any claim arising under this Agreement, including any claim that may be held to be not subject to arbitration. The failure by the US Co. to complain of any of the Executive’s acts or omissions, or to declare the Executive in breach, shall not constitute a waiver by the US Co. of its rights hereunder.

 

35

 

IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by the US Co., by its duly authorized representative, and by the Executive, as of the date first above written.

 

 

	
EXECUTIVE
    	
 
    	
BEIGENE USA, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ John V. Oyler
    	
 
    	
By:
    	
/s/ Howard Liang
    
	
John V. Oyler
    	
 
    	
Name:
    	
Howard Liang
    
	
 
    	
 
    	
Title:
    	
CFO and Chief Strategy Officer
    

 

36

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