Document:

EX-10.5

 [*] = Certain confidential information contained in this document, marked by brackets, has been omitted and
filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
 Exhibit
10.5 
 License and Transfer Agreement 

by and between 

GlaxoSmithKline (China) R&D Co., Ltd 

and 
 Zai Lab (Shanghai)
Co., Ltd. 
 October 18, 2016 

			
	Confidential	  	Execution Copy

  

 License and Transfer Agreement 

This License and Transfer Agreement (this “Agreement”), dated as of October 18, 2016 (the “Effective Date”), is
made by and between GlaxoSmithKline (China) R&D Co., Ltd, a foreign invested enterprise duly established and validly existing under PRC law, whose registered office is at Building 3, 898 Halei Road, Zhangjiang Hi-Tech Park, Pudong New Area,
Shanghai, PRC (“GSK”) and Zai Lab (Shanghai) Co., Ltd., a company duly organized and validly existing under PRC law, whose registered office is at 1043 Halei Road, Bldg 8, Suite 502, Zhangjiang Hi-Tech Park, Shanghai, PRC
(“Zai Lab”). GSK and Zai Lab are each referred to herein individually as a “Party” and collectively as the “Parties.” 

WHEREAS, GSK owns, has in-licensed and/or otherwise controls certain intellectual property rights, including patent rights and know-how, with respect to
certain proprietary compounds known as “FUGAN” and “GRAPE”; 
 WHEREAS, Zai Lab is focused on the development of innovative drug
candidates and is desirous of acquiring from GSK the right to develop and commercialize such proprietary compounds and funding all costs associated with all such activities. 

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the amount and sufficiency of which
are hereby acknowledged, the Parties hereby agree as follows: 
  

	1.	Definitions. 

 The following capitalized terms as used in this Agreement, whether in the singular
or plural, will have their respective meanings as set forth below: 
 1.1 “Affiliate” means with respect to a Party any
entity which (directly or indirectly) is controlled by, controls, or is under common control with, such Party. For the purposes of this definition, the terms “control” and “controlled” mean the direct or indirect ownership
of more than fifty percent (50%) of the outstanding voting securities of an entity, or such other relationship as results in actual control over the management, assets, business and affairs of such entity. 

 

	1.2	“C.F.R” means the Code of Federal Regulations of the United States, as amended from time to time. 

  

	1.3	“CFDA” means the China Food and Drug Administration and any successor agency thereto. 

1.4 “Commercialize” or “Commercialization” means any and all activities related to the import, export,
marketing, detailing, promotion, distribution and/or sale of a pharmaceutical product in a country or region in the Territory pursuant to and in accordance with the Marketing Authorizations for such product in such country or region. 

1.5 “Commercially Reasonable Efforts” means that the level of efforts to be expended by a Party under this Agreement with
respect to the research, discovery, Development, Manufacture and/or Commercialization of Compounds and Products will be consistent with the level of reasonable, diligent, good faith efforts and resources that would normally be used by such Party
(whether acting alone or through its Affiliates) for a pharmaceutical product of similar commercial potential at a similar stage in its lifecycle, and taking into account issues of safety and efficacy, product profile, market and profit potential,
the patent and other proprietary position of the product, the then current competitive environment for such product, the likely timing of such product’s entry into the market, the regulatory environment, and other relevant scientific,

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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technical and commercial factors. Commercially Reasonable Efforts shall be determined on a market-by-market and indication-by-indication basis for a particular Product, and it is acknowledged and
understood that the level of efforts will be different for different markets and will change over time. 
 1.6 “Compound”
means FUGAN and/or GRAPE. 
 1.7 “Confidential Information” means any and all proprietary and/or confidential data,
information or Know-How, of whatever kind and in whatever form or medium, that is disclosed by or on behalf of a Party to the other Party during the Term and in connection with this Agreement, including, without limitation, the Transferred Know-How
and Development Know-How. 
 1.8 “Control” or “Controlled” means, with respect to any Know-How, Materials,
Patent Rights, or other intellectual property, the possession (whether by ownership or license, other than by a license granted pursuant to this Agreement) by a Party of the ability to grant (and/or to ensure that its Affiliates grant) to the other
Party the licenses, sublicenses, and/or rights to access and use, such Know-How, Materials, Patent Rights, or other intellectual property, as provided for herein without violating the terms of any agreement or other arrangement with any Third Party
in existence as of the time such Party or its Affiliates would be required hereunder to grant such license, sublicense, and/or rights of access and use. 

1.9 “Covers” means, with reference to Patent Rights, that the performance of one or more activities related to the
Development, Manufacture or Commercialization of a Compound or Product (or the use of any Materials in connection therewith) would infringe at least one claim of such Patent Right in the country(ies) in which such activities occur. 

1.10 “Develop” or “Development” means to engage in research and development activities intended to research,
discover or develop Compounds and/or to support INDs, NDAs or other Regulatory Approvals for Products, including, without limitation, (i) development of the applicable active drug substance(s), (ii) toxicology, pre-clinical and clinical
drug development activities, (iii) clinical trials (except for Phase IV Studies), (iv) assay/test method development, validation and stability testing, (v) formulation development, (vi) manufacture of pre-clinical, clinical and
commercial supplies, and manufacturing process development, scale-up and validation, (vii) quality assurance/quality control, statistical analysis, and regulatory affairs (including without limitation the preparation, submission and maintenance
of all INDs and NDAs for the Products), and (viii) to have any of the activities described in (i)-(vii) performed. 
 1.11
“Development Costs” means any and all internal and out-of-pocket costs and expenses incurred by or on behalf of Zai Lab, its Affiliates licensees, and/or sublicensees in connection with the Development of the Products in the
Territory pursuant to this Agreement. For clarity, Development Costs shall include, without limitation, the costs of manufacturing, any pre-clinical studies, Phase I Studies, Phase II Studies, Phase III Studies, Phase IV Studies, and any
post-approval studies that are required by Regulatory Authorities as a condition to receiving Regulatory Approval for the Product. 
 1.12
“Development IP” means Development Know-How and Development Patents. 
 1.13 “Development Plan” means the
development plan for the Compounds and Products attached hereto as Exhibit A. 
 1.14 “Development Program” means the
program of Development activities to be undertaken by and on behalf of Zai Lab, its Affiliates, licensee and/or sublicensees to obtain and maintain Regulatory Approvals for one or more Products in the Territory, all as more fully described in the
Development Plan. For clarity, all Development activities related to Compounds and Products undertaken by or on behalf of Zai Lab or any of its Affiliates, licensee or sublicensees will be considered as part of a Development Program. 

1.15 “Development Know-How” means any and all Know-How generated as a result of activities performed pursuant to the
Development Program. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 1.16 “Development Patents” means any and all Patent Rights filed by or on
behalf of Zai Lab to Cover any Development Know-How. 
 1.17 “EMA” means the European Medicines Agency and any successor
agency thereto. 
 1.18 “EU” means the organization of member states of the European Union, including as it may be
constituted from time to time. 
 1.19 “FDA” means the United States Food and Drug Administration and any successor agency
thereto. 
 1.20 “Field” means the treatment, prevention and diagnosis of any and all diseases in humans. 

1.21 “First Commercial Sale” means the first sale for use or consumption of any Product in a country or region in the
Territory after a Regulatory Approval, Marketing Authorization and/or Expanded Access/Compassionate Use authorization (as defined by 21 C.F.R. part 312 subpart 1 or any analogous laws or regulations in other countries in the Territory) for the
Product has been obtained in such country or region. 
 1.22 “Generic Product” means, with respect to a particular Product
being Commercialized in a country or region in the Territory, a pharmaceutical product that (i) contains the same active ingredient(s) as the Product; and (ii) is being sold in such country or region by a Third Party; provided that
such product is not being sold pursuant to a license or sublicense granted by Zai Lab or any of its Affiliates for such country or region, and/or was not manufactured and supplied to such Third Party by or on behalf of Zai Lab or its Affiliates for
resale in such country or region. 
 1.23 “GRAPE” means the formulation with the profile set forth in Exhibit B. 

1.24 “FUGAN” means the formulation with the profile set forth in Exhibit B. 

1.25 “IND” means an Investigational New Drug application, Clinical Study Application, Clinical Trial Exemption, or similar
application or submission for approval to conduct human clinical investigations filed with or submitted to a Regulatory Authority in conformance with the requirements of such Regulatory Authority. 

1.26 “Inventory” means all inventory of the Compounds and Products, including active pharmaceutical ingredient, finished
product (if applicable), work in progress, raw materials, intermediates, retention samples, stability samples, that are in the possession of GSK or any of its Affiliates or being held on GSK’s or any of its Affiliates’ behalf as of the
Effective Date. 
 1.27 “Know-How” means any and all proprietary commercial, technical, scientific and other data,
information, materials, trade secrets, knowledge, technology, methods, processes, formulae, instructions, techniques, designs, drawings and specifications (including biological, chemical, pharmacological, toxicological, pharmaceutical, physical and
analytical, pre-clinical, clinical, safety, manufacturing and quality control data and know-how, including study designs and protocols). 

1.28 “License Agreements” means that certain License and Assignment Agreement between GSK and Chengdu Bater Pharmaceutical
Co., Ltd (“Bater”), dated July 15, 2013 and that certain Development and License Agreement between GSK and Traditional Chinese Medical Hospital, Xinjiang Medical University, dated September 25, 2014 (“Xinjiang”,
together with Bater the “Licensors”). 
 1.29 “Licensed Patents” means those Patent Rights listed in Exhibit D,
which are the Patent Rights licensed by GSK under the License Agreement, registrations, supplementary protection certificates and renewals of such Patent Rights, together with foreign equivalents of any of the foregoing). 

1.30 “Manufacture” or “Manufacturing” means any and all activities related to the manufacture, formulation
and packaging of Compounds and/or Products, including, without limitation, related quality control and quality assurance activities. For clarity, the Manufacture of pre-clinical, clinical and commercial supplies and Manufacturing activities related
to process development and scale up work will also be considered part of Manufacturing. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 1.31 “Marketing Authorization” means, with respect to a country or region in
the Territory, all Regulatory Approvals and Pricing Approvals necessary to import, distribute, market and sell a pharmaceutical product in such country or region. 

1.32 “NDA” means a New Drug Application or Supplemental New Drug Application filed with the FDA (including amendments and
supplements thereto) to obtain Regulatory Approval in the U.S., or any corresponding applications or submissions filed with the relevant Regulatory Authorities to obtain Regulatory Approvals in any other country or region in the Territory. 

1.33 “Net Sales” means the gross amount received for Product that is sold by Zai Lab or its Affiliates, licensees or
sublicensees to the first Third Party (other than a licensee or sublicensee) after deducting, if not previously deducted, from such amount the following accrual basis deductions as applicable to such Products: 

[*] 
 No deductions shall be made for commissions
to any person on Zai Lab’s or any of its Affiliate, licensee or sublicensee’s payroll or for the cost of collection. 
 1.34
“Patent Rights” means any and all patents and patent applications in the Territory (which for purposes of this Agreement shall include certificates of invention and applications for such certificates), including, without limitation,
any divisionals, continuations, continuations-in-part, substitutions, reissues, re-examinations, revalidations, extensions (including, without limitation, U.S. pediatric exclusivity patent extensions), registrations, supplementary protection
certificates and renewals of any such patents or patent applications, together with foreign equivalents of any of the foregoing including the right to claim priority. 

1.35 “Phase I Study” means a human clinical trial in any country or region that would satisfy the requirements of 21 C.F.R.
312.21(a) or the counterpart in such country or region, but which is not a Phase II Study, Phase III Study or Phase IV Study. 
 1.36
“Phase II Study” means a human clinical trial in any country or region that would satisfy the requirements of 21 C.F.R. 312.21(b) or the counterpart of it in such country or region, but which is not a Phase III Study or Phase IV
Study. 
 1.37 “Phase III Study” means a large scale human clinical trial in any country or region that would satisfy the
requirements of 21 C.F.R. 312.21(c) or the counterpart of it in such country or region, but which is not a Phase IV Study. 
 1.38
“Phase IV Study” means a clinical study or data collection effort for a Product that is initiated in one or more countries after the receipt of Regulatory Approval in such country(ies) and is principally intended to support the
Commercialization of such Product in such country/countries and not to support or maintain the same or any additional Regulatory Approvals or otherwise obtain any labeling change. Phase IV Studies shall include, without limitation, clinical
experience trials, but shall exclude post-approval studies that are required by a Regulatory Authority as a condition to receiving Regulatory Approval. 

1.39 “Pricing Approvals” means in those countries in the Territory where Regulatory Authorities approve or determine pricing
or pricing reimbursement for pharmaceutical products, such approval or determination. 
 1.40 “Product” means any
pharmaceutical composition or preparation containing, as an active pharmaceutical ingredient, a Compound. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 1.41 “Prosecute” or “Prosecution” means in relation to any
Patent Rights, (a) to prepare and file patent applications, including, without limitation, re-examinations or re-issues thereof, and represent applicant(s) or assignee(s) before relevant patent offices or other relevant governmental authorities
during examination, re-examination and re-issue thereof, in appeal processes and interferences, or any equivalent proceedings, (b) to defend all such applications against Third Party oppositions, (c) to secure the grant of any Patent
Rights arising from such patent application, (d) to maintain in force any issued Patent Right (including, without limitation, through payment of any relevant maintenance fees and/or any patent term extension), and (e) to make all decisions
with regard to any of the foregoing activities. 
 1.42 “Regulatory Approval” means, with respect to a country or region in
the Territory, any and all approvals, licenses, registrations or authorizations from the relevant Regulatory Authority necessary in order to import, distribute, market and sell a pharmaceutical product in such country or region, but not including
Pricing Approvals. 
 1.43 “Regulatory Authority” means the CFDA, FDA, the EMA, and any other analogous government
regulatory authority or agency involved in granting approvals (including any required pricing and/or reimbursement approvals) for the Manufacture and/or Commercialization of pharmaceutical products in the Territory. 

1.44 “Regulatory Exclusivity Period” means any period of data, market or other regulatory exclusivity (as distinct from and
excluding any exclusivity arising under Patent Rights) for a Product in a country or region in the Territory under applicable laws, rules and regulations in such country or region which prevents any unlicensed Third Party from marketing, promoting
or selling a Generic Product in such country or region, including, without limitation, any such exclusivity provided in countries in the EU under national laws and regulations implementation Section 10.1(a)(iii) of Directive 2001/EC/83 or any
analogous laws or regulations in other countries in the Territory. 
 1.45 “Regulatory Materials” means the China, U.S. and
foreign regulatory applications, submissions and approvals (including all INDs, NDAs, Regulatory Approval and all foreign counterparts thereof) for any Compound or Product, correspondence with the FDA and other Regulatory Authorities relating to any
Compound or Product or any of the foregoing regulatory applications, submissions and approvals, in each case owned by GSK or any of its Affiliates or held on GSK’s or any of its Affiliates’ behalf as of the Effective Date. 

1.46 “Renminbi” or “RMB” means the lawful currency of People’s Republic of China. 

1.47 “Technology Transfer” means (i) delivery to Zai Lab of [*] either by direct shipment or by written transfer of
ownership of samples located at a CRO and (ii) GSK’s granting access to its data room containing [*]. For avoidance of doubt, GSK may retain copies of all GSK documentation delivered to Zai Lab in its archives after the completion of
Technology Transfer for archival, compliance and contract monitoring purposes. 
 1.48 “Territory” means worldwide. 

1.49 “Third Party” means any person or entity other than GSK, Zai Lab and their respective Affiliates. 

1.50 “Transferred Know-How” means the Know-How listed on Exhibit C Part II. 

1.51 “United States” or “U.S.” means the United States of America, including its territories and possessions,
and the District of Columbia. 
 1.52 “Valid Claim” means a composition-of-matter claim Covering a Compound or Product,
and/or a method-of-use claim Covering the use of a Compound or Product for one or more indications at least one of which is the subject of a Regulatory Approval, of an issued and unexpired Licensed Patent which has not been revoked or held invalid
or unenforceable by a final decision of a court or other governmental agency of competent jurisdiction with no further possibility of appeal. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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	 	2.	Assignment. 

 2.1 Assignment. GSK hereby transfers, assigns and sells to
Zai Lab all of its right, title and interest in and to the Licensed Patents, Transferred Know-How, Inventory, and Regulatory Materials to research, develop, make, have made, manufacture, use and commercialize the Compounds and Products in any
indications in the Field, and such transfer, assignment and sale of all GSK’s right, title and interest in and to the License Patents, Transferred Know-how, Inventory and Regulatory Materials shall be effective upon GSK’s receipt of the
upfront fee under Section 4.1. 
 2.2 Assignment and Assumption Agreement. As of the Effective Date, GSK and Zai Lab shall
execute the assignment and assumption agreement substantially in the form attached hereto as Exhibit F, under which GSK will assign the License Agreements to Zai Lab. GSK will cause each of Bater and Xinjiang to execute the assignment and assumption
agreement applicable to their respective License Agreements with GSK no later than [*] days after the Effective Date. Each such assignment and assumption agreement shall become effective upon [*]. 

2.3 Transfer of Third Party Services. Within [*] days following the Effective Date [*]. 

2.4 Licensing/Sublicensing by Zai Lab. To the extent that Zai Lab licenses or sublicenses to its Affiliates or to any Third Party under
any Transferred Know-How and Licensed Patents, Zai Lab shall remain responsible for ensuring (and liable to GSK with respect to) the performance of and compliance by such Affiliates and/or Third Parties under the terms and conditions of this
Agreement. Zai Lab shall ensure that any such license or sublicense agreement is consistent with the terms and conditions of this Agreement (in the case of a sublicense under the Licensed Patents, also consistent with the terms and conditions of the
License Agreement) and complies with applicable laws, rules and regulations, including, without limitation, import and export control regulations. 

2.5 Technology Transfer. [*]. 

2.6 No Implied Licenses. Nothing herein shall be construed as creating, granting or otherwise conveying to either Party any license or
other right (whether by implication, estoppel or otherwise) other than those expressly provided for in this Agreement. 
  

	 	3.	Development and Commercialization. 

 3.1 Product Development Program. After
the Effective Date, Zai Lab will, either by itself or through its Affiliates, licensees and/or sublicensees, be solely responsible for designing and performing all aspects of the Development Program in accordance with the Development Plan, provided
that Zai Lab may undertake changes to its development plans from time to time as long as it continues to satisfy its diligence obligations under this Agreement. Zai Lab will have sole responsibility and control for the managing and the financing of
the Development Plan and all Development Costs. The primary focus of the Development Program will be to Develop and obtain Regulatory Approvals for one or m`ore Products. 

3.2 Regulatory, Manufacturing and Commercialization. After the Effective Date, (i) Zai Lab will be solely responsible for and
control (at its own expense) all regulatory matters related to the Development and Commercialization of Compounds and/or Products in the Territory, including, without limitation, taking full responsibility for preparing and filing the relevant
applications with the Regulatory Authorities for pre-clinical and clinical studies and for Regulatory Approval; and (ii) Zai Lab will be solely responsible for and control (at its own expense) all aspects of Commercialization of Products and
the Manufacturing and supply of Products (including, without limitation, the Manufacture and supply of related Compounds being Developed by Zai Lab) in the Territory and will have sole responsibility for all costs arising therefrom. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 3.3 Diligence. During the Term of this Agreement, Zai Lab shall use Commercially
Reasonable Efforts to implement the Development Plan to Develop at least one (1) Product. Without limiting the generality of the foregoing, Zai Lab will use, and will cause its Affiliates, licensees and/or sublicensees to use Commercially
Reasonable Efforts to Develop, Manufacture, seek Regulatory Approval and Marketing Authorization for, and following Regulatory Approval or Marketing Authorization to Commercialize FUGAN in China. Zai Lab will also use, and will cause its Affiliates,
licensees and/or sublicensees to use, Commercially Reasonable Efforts to assess the feasibility to Develop, Manufacture, seek Regulatory Approval or Marketing Authorization for, and following Regulatory Approval or Marketing Authorization, to
Commercialize GRAPE in the Territory and FUGAN in countries and regions other than China, provided that the foregoing shall not be construed as requiring ZAI to conduct any Development program with respect to GRAPE. [*]. 

3.4 Record Keeping and Reports. Zai Lab will prepare and maintain, and will cause each of its Affiliates and any licensees or
sublicensees to prepare and maintain, appropriate records (in accordance with its standard policies and procedures) regarding the Development and Commercialization of Compounds and/or Products. During the Term hereof, Zai Lab will provide GSK with
annual reports setting forth (i) a summary of updated development progress and achievements of such Development and Commercialization tasks as set forth in the Development Plan and a listing of any Regulatory Approvals achieved for Products in
the Territory, (ii), information relating to any Zai Lab’s sublicensing under or assignment of this Agreement. Upon GSK’s request at any time during the Term hereof, Zai Lab shall provide to GSK a complete list of its licensees and
sublicensees of Transferred Know-How and Licensed Patents, as well as a true and complete copy of each license agreement and sublicense agreement (as the case may be) and each amendments thereto within three (3) days after the notification. Any
and all such reports (and all data and information set forth therein), lists and agreements shall be considered Zai Lab’s Confidential Information and shall be subject to the confidentiality and use restrictions under this Agreement. 

3.5 Compliance. 

(a) Debarment. Each Party hereby certifies (on behalf of itself and its Affiliates) that it will not and has not
employed or otherwise used in any capacity the services of any person debarred under Title 21 United States Code Section 335a in performing any activities under this Agreement. Each Party shall immediately notify the other Party in writing if
any such debarment occurs or comes to its attention, and shall, with respect to any person or entity so debarred, promptly remove such person or entity from performing any activities related to or in connection with the Development Plan or this
Agreement. 
 (b) FCPA Compliance. Each Party shall, and shall ensure that its Affiliates and any Third Party
contractors shall, comply with the United Stated Foreign Corrupt Practices Act (including as it may be amended) (the “FCPA”), and any analogous laws or regulations existing in any other country or region in the Territory, in
connection with its performance under this Agreement. Neither Party will make any payment, either directly or indirectly, of money or other assets, including but not limited to compensation derived from this Agreement, to government or
political party officials, officials of international public organizations, candidates for public office, or representatives of other businesses or persons acting on behalf of any of the foregoing, that would constitute violation of any law,
rule or regulation. 
 (c) Export Control. This Agreement and the obligations of the Parties hereunder are made
subject to, and limited by, all applicable restrictions concerning the export of products or technical information from the United States of America which may be imposed upon or related to Zai Lab or GSK from time to time by the government of the
United States of America. Furthermore, each Party agrees that it will not export, directly or indirectly, any technical information acquired from the other Party under this Agreement or any Products using such technical information to any country
for which the United States government or any agency thereof at the time of export requires an export license or other governmental approval, without first obtaining the written consent to do so from the Department of Commerce or other agency of the
United States government when required by an applicable statute or regulation. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 (d) Export and Other Restrictions. This Agreement and obligations of
the Parties hereunder are made subject to, and limited by, all applicable restrictions concerning the export of products, resources, materials or technologies from the People’s Republic of China (“PRC” or “China”, for the
purpose of this Agreement excluding Hong Kong, Macau and Taiwan) which may be imposed upon or related to Zai Lab or GSK from time to time by the government of PRC. Zai Lab acknowledges and agrees that the Transferred Know-How, Licensed Patents
and/or Inventory contains traditional Chinese medicine substance and technologies which have been disclosed to Zai Lab prior to the Effective Date, and GSK will deliver all such Inventory and conduct Technology Transfer to the extent within the
territory of PRC to Zai Lab. Zai Lab shall be solely responsible for the risk of export restrictions (if any) to any Compounds, Products, Inventory, Transferred Know-How and Licensed Patents, as well as the application and/or registration in respect
of export of such products, resources, materials or technologies. 
  

	 	4.	Payments and Royalties. 

 4.1 Up-Front Payment. Within [*] days after the
Effective Date, Zai Lab will pay to GSK a one-time non-refundable, non-creditable up-front payment of four million five hundred thousand RMB (4,500,000 RMB). 

4.2 Milestone Payments. In addition to the above, Zai Lab will pay to GSK each of the applicable milestone payments provided for in this
Section 4.2 upon the occurrence of the indicated milestone event. Each such milestone payment will be due in RMB and payable only once to GSK within [*] days Zai Lab receives the applicable invoice from GSK, and Zai Lab shall notify GSK within
[*] days after the achievement of the specified milestone event so that GSK may issue such invoice. Each such milestone payment shall be payable only once under this Agreement for each Compound (i.e., no more than twice under this Agreement, once
for each Compound), and will be non-refundable, non-creditable and not subject to set-off. Following such payment, the subsequent repeated occurrence of the same milestone event by the same Compound or Product will not under any circumstances
trigger any additional milestone payment as a result of such event. 
  

			
	 Milestone Event
	  	 Milestone Payment (RMB)

	For Product(s) containing FUGAN:
		
	[*]	  	[*]
	
	For Product(s) containing GRAPE
		
	[*]	  	[*]

 4.3 Royalties. Zai Lab will pay to GSK in RMB, on a Product-by-Product basis, running royalties on Net
Sales of Products in the Territory at the applicable royalty rates, as set forth in the following table: 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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	 Aggregate Annual Net Sales of a Product in the
Territory
	  	 Royalty Rate

	[*]	  	[*]%
		
	[*]	  	[*]%
		
	[*]	  	[*]%

 (a) Duration of Royalty Obligations. Zai Lab’s obligation to pay royalties
under Section 4.3 will be in effect during the “Royalty Period” which begins on the date of First Commercial Sale of a Product in the Territory and shall expire on a Product-by-Product and country-by-country basis upon the
later of: 
 (i) the expiration of the last-to-expire Licensed Patent in China having a Valid Claim that Covers such
Product; 
 (ii) the expiration of all Regulatory Exclusivity Periods that apply to such Product in such country; or 

(iii) [*] after the First Commercial Sale of such Product in such country. 

(b) Additional Provisions Regarding Royalties. For purposes of determining Zai Lab’s royalty payment obligations
under Section 4.3, all Products [*] will be treated as the same Product. Royalties when owed or paid hereunder will be non-refundable and non-creditable and not subject to set-off. Notwithstanding the definition of Product, in the event that
Zai Lab or its Affiliates sells Product [*] to a Third Party, the royalty obligations of this Section 4.3 shall be applicable to such sales of [*] Product in the Territory. 

(c) Reports and Timing of Royalty Payments. Starting on the date of First Commercial Sale of a Product in the Territory,
Zai Lab will furnish to GSK a quarterly written report for each subsequent calendar quarter showing the Net Sales of all Products sold by Zai Lab, its Affiliates, licensees and sublicensees for which royalties are payable hereunder, and the
royalties due to GSK on such sales. Each such royalty report shall be due within [*] days after the end of the relevant calendar quarter. The royalty payments due under Section 4.3 for each calendar quarter will be due and payable to GSK on the
same date that the royalty report for the calendar quarter is due. Each royalty report shall describe in reasonable detail (based upon the data then available to Zai Lab) the Net Sales of each Product (including, without limitation, the
deductions specified in clauses (i) through (iii) of the Net Sales definition) and the calculation of royalty payments due for the relevant calendar quarter. The information contained in each report under this Section 4.3(c)
shall be considered Confidential Information of Zai Lab. For clarity, GSK’s rights under this Section 4.3(c) is for monitoring purposes only. GSK’s exercise of any rights under this Section 4.3(c) or any other terms hereunder
shall not be construed as GSK’s involvement in any Development, Manufacture, Commercialization, marketing, pricing, interactions with any healthcare professionals and/or governmental officials, or any other activities under the Development Plan
and/or Development Program, and Zai Lab shall be solely responsible for all the activities as described under those reports. 
 4.4 Future
Payment under the License Agreements. Zai Lab shall be solely responsible for any milestone payment due under the License Agreements for milestone events achieved after the Effective Date, including the milestone payment for [*]. 

4.5 Sublicense Revenue. If Zai Lab grants a sublicense, sells or otherwise divests the Licensed Patents and Transferred Know-How (other
than a sublicense to its Affiliates and contractors) before [*] (provided that [*] sublicense, sale or divestment of the Licensed Patents and Transferred Know-how shall be 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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[*] and shall [*]), then Zai Lab shall pay to GSK [*] of all consideration received by it and its Affiliates from and attributed to the sublicense, sale or divesture of the Licensed Patents and
Transferred Know-How, but excluding any payments [*]. Such payments shall be made to GSK within [*] days after receipt by Zai Lab and/or its Affiliates. If the contemplated transactions are on product-by-product basis, [*] shall [*] relating to the
sublicensing, selling or divesting Product. 
 4.6 Payment Terms. This Section 4.6 will apply to all payments to be made by Zai
Lab to GSK hereunder. 
 (a) Manner of Payment. All payments to be made by one Party to the other Party under this
Agreement shall be made in RMB and by bank wire transfer set forth in Exhibit E in immediately available funds to such bank account as may be designated in writing by such Party from time to time. In the case of royalties due on sales of Product
outside the China, the rate of exchange to be used in computing on a monthly basis the applicable royalty due GSK in RMB shall be made at the rate of exchange published by the People’s Bank of China, prevailing on to the last business day of
the month preceding the month in which such sales are recorded. 
 (b) Records and Audits. Zai Lab will maintain (and
will cause its Affiliates, licensees and/or sublicensees to maintain) accurate books and records of accounting to document the sales of Products and the calculation of royalties payable to GSK in the Territory. For a period of [*] following the end
of the relevant calendar year, the relevant books and records will, upon written request by GSK, be made reasonably available for inspection by an internationally recognized firm of independent certified public accountants (to be selected by GSK and
reasonably acceptable to Zai Lab) as reasonably necessary to verify the accuracy of royalty reports for the relevant period. Access to such books and records shall be during normal business hours and upon reasonable prior notice; provided
that in no event will any such audits or inspections be conducted more frequently than [*]. The auditors will, upon request, enter into a confidentiality agreement as reasonably requested by Zai Lab. The auditors will be permitted to disclose to
GSK whether the royalty reports are correct or incorrect, the details and amounts of any discrepancies, and the books and records as well as associated documentations that illustrate the discrepancies. The auditors will also provide to Zai Lab, upon
request, a copy of any audit reports and findings that are provided to GSK as a result of such inspection. If the auditors correctly identify any underpayments or overpayments, the amount of any underpayments will be paid to GSK by Zai Lab within
[*] days of notification of the results of such inspection, and any overpayments will be fully creditable against amounts payable to GSK in subsequent periods. GSK will be solely responsible for the costs and expenses of any such audit inspections,
except that in the event of an underpayment of aggregate royalties due and payable to GSK for a calendar year of more than [*] of the total amount properly due, Zai Lab will reimburse GSK for all the reasonable and documented audit fees expenses
charged by the auditors for such audit inspection within [*] days after receipt of auditor’s report, and pay to GSK within [*] days after receipt of such report the deficiency not previously paid plus the interests calculated based on
Section 4.6(d). 
 (c) Taxes. GSK shall be liable for any applicable taxes under the PRC tax regulations, upon
any payments made by Zai Lab to GSK pursuant to this Agreement. [*], Zai Lab agrees to [*] and GSK will [*] Furthermore, Zai Lab shall, upon request, provide GSK with reasonable assistance in order to assist GSK in seeking the benefit of any present
or future tax exemptions which may apply to any payments due GSK under this Agreement. 
 (d) Interest Due. If any
uncontested amount properly due and payable to a Party under this Agreement is overdue, then the paying Party will also pay interest on the unpaid amount accrued at the annual rate of RMB SHIBOR (Shanghai Interbank Offered Rate) 3 months plus [*]
from the date of payment was due, prevailing on to the last business day of the month preceding the month in which such sales are recorded. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 5. Ownership of Patents and Know-How/Technology Transfer. 

5.1 Ownership of Development IP. Zai Lab shall own all rights, title and interests in or to any Development Patents and Development
Know-How. 
 5.2 Trademarks. Zai Lab and/or its Affiliates shall be responsible (at its/their own expense) for and control the
selection, registration, maintenance, enforcement and defense of any and all trademarks for the Products in the Territory. Zai Lab and/or its Affiliates shall own all rights, title and interest in and to any such trademarks and any related domain
names associated with the Products or which contain the trademarks. 
 6. Patent Provisions. 

6.1 Prosecution of Patent Rights. After the Effective Date, Zai Lab shall be solely responsible (at its own expense) for and shall
control the Prosecution of the Development Patents and the Licensed Patents in the Territory, including any patent term extension. 
 6.2
Enforcement and Defense of Patent Rights. 
 (a) Notice. During the Term, each Party will promptly notify the
other Party in writing upon learning of (1) any actual or suspected infringement by a Third Party of any Licensed Patents or Development Patents that Cover the Compounds, Products and/or the manufacture or use thereof, (2) any claim of
invalidity, unenforceability of any such Patent Rights, and/or (3) any misappropriation or unauthorized use by a Third Party of the Transferred Know-How or Development Know-How. Any such notice shall identify the Third Party in question and
contain a brief description (based upon available information) of the relevant actions that are believed to constitute such infringement, misappropriation or unauthorized use or upon which such claims of invalidity or unenforceability are based.

 (b) Enforcement. 

(i) Right to Enforce. Zai Lab shall have the sole right, but not obligation, to enforce and defend worldwide
under its control, at its own expense, the Licensed Patents (subject to the terms and conditions of the License Agreement) and any Development Patents with respect to such infringement. Zai Lab shall have the sole right, but not obligation, to
undertake and control any legal proceedings or other actions to so enforce and/or defend such Patent Rights worldwide. Zai Lab will do so at its own expense, and may undertake such proceedings and actions in the name of Zai Lab, as appropriate. 

 (ii) Cooperation. With respect to any legal proceedings or actions initiated under this
Section 6.2(b):  
  

	 	(A)	GSK shall have the right to consult with Zai Lab to participate in decisions regarding the appropriate course of conduct for such action, and the additional right to join and participate in such action at its own cost
and expense (GSK shall join such action at Zai Lab’s request if necessary for standing purposes); and 

  

	 	(B)	GSK shall have the right to be represented by legal counsel of its own choice and at its own cost and expense in connection with any legal proceedings or other actions undertaken pursuant to this Section 6.2 to
defend or enforce the Licensed Patents and Development Patents. 

  

	 	(C)	Zai Lab shall keep GSK informed of any developments in the action. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 (c) Settlement. Zai Lab shall have the right to settle the relevant
claim or actions; provided, however, that Zai Lab shall not, without the prior written consent of GSK, enter into any settlement, consent judgment or other voluntary final disposition of any claim or action that would: (i) subject
GSK or its Affiliates to an injunction or otherwise adversely impact any of GSK or GSK Affiliates’ rights under this Agreement; (ii) impose any financial obligation upon GSK or its Affiliates; and/or (iii) constitute an admission of
guilt or wrongdoing by GSK or its Affiliates. 
 6.3 Patent Marking. Zai Lab will comply, and will cause its Affiliates, licensees and
sublicensees to comply with applicable laws, rules and regulations in governing the marking of pharmaceutical products in the Territory to identify the relevant issued patents. 

7. Confidentiality. 

7.1 Confidentiality. 

(a) Confidentiality Obligations. One Party (the “Disclosing Party”) may disclose or otherwise make
available to the other Party (the “Receiving Party”) certain of the Disclosing Party’s Confidential Information for use in connection with this Agreement. For clarity, all Transferred Know-How, Licensed Patents (to the extent
unpublished) and Development IP shall, upon the effective date of the transfer or assignment of each such intellectual property to Zai Lab, be deemed Confidential Information of Zai Lab. During the Term and for [*] years thereafter, the Receiving
Party will keep confidential, will not disclose to any Third Party, and shall not use for any purpose other than as expressly permitted hereunder, any Confidential Information of the Disclosing Party. The foregoing obligations shall not apply to the
extent that such information: 
 (i) was known to Receiving Party or any of its Affiliates prior to the time of disclosure
(and such prior knowledge can be properly documented); 
 (ii) is or becomes public knowledge through no fault or omission of
Receiving Party or any of its Affiliates; 
 (iii) is obtained by the Receiving Party (or its Affiliates) without
restrictions of confidentiality from a Third Party under no obligation of confidentiality to the Disclosing Party or its Affiliates; 

(iv) is independently developed by employees or agents of Receiving Party (or its Affiliates) without the aid, application or
use of the Disclosing Party’s Confidential Information (and such independent development can be properly documented); or 

(v) is required by applicable law, rule, regulation, act or order of a governmental authority or agency, or a court of
competent jurisdiction; provided, that the Receiving Party (1) promptly provides written notice of such requirement to the Disclosing Party so that the Disclosing Party can seek a protective order or other appropriate remedy to preserve the
confidentiality of such information, (2) upon request, reasonably cooperates with the Disclosing Party in connection with such efforts, and (3) only discloses the minimum Confidential Information required to be disclosed in order to
comply. 
 Any combination of features or disclosures shall not be deemed to fall within the foregoing exclusions merely because individual features are
published or available to the general public or in the rightful possession of the Receiving Party unless the combination itself and principle of operation are published or available to the general public or in the rightful possession of the
Receiving Party. In addition, to the extent that any Confidential Information is disclosed pursuant to legal requirement in accordance with Section 7.1(a)(v), it shall remain otherwise subject to the confidentiality and non-use provisions of
this Section 7.1. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 (b) Other Permitted Disclosures. Each Party shall have the
limited right to disclose the other Party’s Confidential Information if and solely to the extent reasonably necessary (as reasonably determined based upon the advice of such Party’s legal counsel) to be disclosed (1) to Third Parties
and their respective legal counsel with whom such Party is negotiating a permitted assignment under Section 12.10, (2) to potential and actual licensees/sublicensees and other collaborators (and their legal counsel) of the Compounds or
Products, and/or (3) to accredited investors, qualified institutional buyers, and qualified purchasers and their legal counsel (as such terms are defined in the U.S. Securities Act of 1933 and/or the U.S. Securities Exchange Act of 1934, as
amended). Prior to making any such disclosure under this Section 7.1(b), such Party shall ensure that the recipient is subject to written obligations of confidentiality and non-use that are no less restrictive than those set forth in
this Agreement, and such Party will limit the content and timing of any such disclosure as much as reasonably possible. Such Party shall remain responsible for and liable hereunder with respect to any breach caused by any of the foregoing.

 7.2 Publications. Zai Lab shall have the sole right to make a publication (including without limitation abstracts, papers, or
verbal public presentations) related to the discovery, Development, Manufacture or Commercialization of Compounds and/or Products. In the event such publication may disclose any GSK’s Confidential Information, Zai Lab shall first deliver to GSK
a copy of the proposed publication (or an outline in the case of a planned verbal presentation) at least [*] days prior to submission for publication or presentation. GSK shall have the rights (1) to request modifications to the publication or
presentation for patent reasons, trade secret reasons or business reasons and/or (2) to request a reasonable delay in publication or presentation in order to protect patentable information. If GSK requests modifications to the publication or
presentation, Zai Lab shall edit such publication to prevent disclosure of trade secret or proprietary business information identified by GSK prior to submission of the proposed publication or presentation. If GSK requests a delay, Zai Lab shall
delay submission or presentation for a period of [*] days to enable patent applications protecting GSK’s rights in such information. 

7.3 Disclosure of Agreement Terms. Promptly after the Effective Date, Zai Lab may issue a press release in the form attached hereto as
Exhibit G. No other public disclosure of the non-public terms and conditions of this Agreement may be made by either Party, without the prior written consent of the other Party. However, each Party shall have the limited right to disclose the
non-public terms and conditions of this Agreement to its Affiliates and/or if and solely to the extent reasonably necessary (as reasonably determined based upon the advice of such Party’s legal counsel) to be disclosed (1) to Third Parties
and their respective legal counsel with whom such Party is negotiating a permitted assignment under Section 12.10, (2) to potential and actual licensees/sublicensees and other collaborators (and their legal counsel) of the Compounds or
Products, and/or (3) to accredited investors, qualified institutional buyers, and qualified purchasers and their legal counsel (as such terms are defined in the U.S. Securities Act of 1933 and/or the U.S. Securities Exchange Act of 1934, as
amended). Prior to making any such disclosure under this Section 7.3, such Party shall ensure that the recipient is subject to written obligations of confidentiality and non-use that are no less restrictive than those set forth in this
Agreement, and such Party will limit the content and timing of any such disclosure as much as reasonably possible to avoid and/or minimize the disclosure of competitively sensitive information. However, nothing in this Section 7.3 shall
prohibit a Party from making such disclosures if and to the extent reasonably required to comply with applicable federal or state securities laws or any rule or regulation of any nationally recognized securities exchange; provided that in
such event, the disclosing Party shall notify and consult with the other Party prior to such required disclosure and shall diligently seek confidential treatment to the fullest extent available. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 8. Warranties; Limitations of Liability; Indemnification. 

8.1 Representations and Warranties. Each Party hereby represents and warrants to the other Party as of the Effective Date that:
(i) it is a limited liability company duly organized, validly existing, and in good standing under applicable laws; (ii) it has obtained all necessary consents, approvals and authorizations of all governmental authorities and other persons
or entities required to be obtained by it in connection with this Agreement; (iii) the execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate action on its part; and (iv) it has the legal
right and power to enter into this Agreement, to extend the rights and licenses granted or to be granted to the other in this Agreement, and to fully perform its obligations hereunder. 

8.2 Additional Representations and Warranties of GSK. GSK hereby represents and warrants to Zai Lab as of the Effective Date that,
except as otherwise disclosed in writing by GSK on or before the Effective Date: 
 [*] 

8.3 Disclaimers. Without limiting the respective rights and obligations of the Parties expressly set forth herein, each Party
specifically disclaims any guarantee that any Products will be successful, in whole or in part. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, GSK MAKES NO REPRESENTATIONS AND EXTEND NO WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED,
WITH RESPECT TO ANY TRANSFERRED KNOW-HOW, LICENSED PATENTS, DEVELOPMENT IP, COMPOUNDS, PRODUCTS, PATENT RIGHTS OR KNOW-HOW, INCLUDING WARRANTIES OF VALIDITY OR ENFORCEABILITY OF ANY RIGHTS, TITLE, QUALITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR
USE OR PURPOSE, PERFORMANCE, AND NONINFRINGEMENT OF ANY THIRD PARTY PATENTS OR OTHER INTELLECTUAL PROPERTY RIGHTS. 
 8.4 No Consequential
Damages. IN NO EVENT WILL EITHER PARTY HAVE ANY CLAIMS AGAINST OR LIABILITY TO THE OTHER PARTY WITH RESPECT TO ANY INDIRECT, PUNITIVE, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING ANY CLAIMS FOR LOST PROFITS OR REVENUES) ARISING UNDER
OR IN CONNECTION WITH THIS AGREEMENT UNDER ANY THEORY OF LIABILITY, EVEN IF SUCH PARTY HAS BEEN INFORMED OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED THAT THE FOREGOING LIMITATION SHALL NOT APPLY WITH RESPECT TO INDEMNITY
FOR THIRD PARTY CLAIMS AS PROVIDED IN SECTION 8.5 
  

	8.5	Indemnification. 

 (a) Indemnification by Zai Lab. Zai Lab will
indemnify, defend and hold harmless GSK, its Affiliates, and their respective directors, officers, employees and agents (collectively, “GSK Indemnitees”) from and against any and all claims, demands, judgments, losses, damages,
liabilities, costs and expenses (including reasonable attorneys’ fees and expenses) (collectively, “Liabilities”) arising out of or in connection with any and all Third Party claims relating to: (i) any gross negligence,
willful misconduct or breach of this Agreement (including its representations and warranties made under this Agreement) by Zai Lab or any of its Affiliates or sublicensees; or (ii) the Development, Manufacture or Commercialization by Zai Lab or
any of its Affiliates, licensees or sublicensees of any Compounds or Products, except to the extent such Liabilities are subject to indemnification by GSK under Section 8.5(b) below. 

(b) Indemnification by GSK. GSK will indemnify, defend and hold harmless Zai Lab, its Affiliates, and their respective
directors, officers, employees and agents (collectively, “Zai Lab Indemnitees”) from and against any and all Liabilities arising out of or in connection with any and all 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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Third Party claims relating to any gross negligence, willful misconduct or any breach of this Agreement (including its representations and warranties in material aspects made under this
Agreement) by GSK or any of its Affiliates, except to the extent such Liabilities are subject to indemnification by Zai Lab under Section 8.5(a) above. For the avoidance of doubt: (i) except as expressly set forth in Section 8.2, GSK
makes no representation or warranty of any kind with respect to non-infringement of any Third Party patent rights; and (ii) GSK has no obligation to indemnify, defend or hold harmless Zai Lab Indemnitees, Zai Lab’s licensees or
sublicensees against any allegation that the Development, Manufacture, use, sale, offer for sale or import of any Compounds or Products infringes Third Party intellectual property rights, except in the case of GSK’ breach of the representations
and warranties expressly set forth in Section 8.2. 
 (c) Procedures. In the event that any Party intends to
claim indemnification under this Section 8.5 with respect to a Liability, it shall promptly notify the other Party in writing of any such alleged Liability. The indemnifying Party shall have the right to control the defense thereof with counsel
of its choice; provided, however, that the indemnified Party shall have the right to retain its own counsel, (with the fees and expenses to be paid by the indemnifying Party), if representation by the counsel retained by the
indemnifying Party would be inappropriate due to actual or potential differing interests between the Parties in such proceeding. The affected Indemnitees shall, upon request, cooperate reasonably with the indemnifying Party and its legal
representatives in the investigation and defense of any action, claim or liability covered by this Section 8.5. Neither Party may settle any claim or action related to a Liability without the consent of the other Party, if such settlement would
(i) impose any monetary obligation on the other Party (unless the indemnifying Party agreed to be solely responsible for such monetary obligation), (ii) constitute an admission of guilt or wrong-doing by the other Party, or
(iii) require the other Party to submit to an injunction or otherwise limit the other Party’s rights under this Agreement. Any payment made by the indemnified Party to settle any such claim or action without the indemnifying
Party’s consent shall be at indemnified Party’s own cost and expense. 
 8.6 Insurance. Zai Lab will maintain at its sole
cost and expense, an adequate liability insurance or self-insurance program (including product liability insurance) to protect against potential liabilities and risk arising out of activities to be performed under this Agreement and any agreement
related hereto and upon such terms (including coverages, deductible limits and self-insured retentions) as are customary in the U.S. pharmaceutical industry for the activities to be conducted by such Party under this Agreement. The coverage limits
set forth herein will not create any limitation on a Party’s liability to the other under this Agreement. 
 9. Term and
Termination. 
 9.1 Term. This Agreement will commence as of the Effective Date and, unless sooner terminated in accordance
with the terms hereof, will continue in effect until the expiration of Zai Lab’s royalty obligations to GSK under Section 4.3 in all countries in the Territory (the “Term”). However, effective upon the expiration of
Zai Lab’s royalty obligations to GSK with respect to a given Product in a given country or in the Territory, Zai Lab and its Affiliates, licensee and sublicensees shall have the right to continue to Commercialize the relevant Product in such
country without further obligation to GSK. 
 9.2 Termination for Causes. 

(a) Termination by GSK. GSK shall have the unilateral right to terminate this Agreement on [*] day’s prior
written notice if Zai Lab: (i) fails to reach the milestones scheduled in the Development Plan unless for reasons beyond the reasonable control of Zai Lab such as the requirements of competent Regulatory Authority, (ii) fails to make any
payment owed to GSK for more than [*] days, or (iii) fails to use Commercially Reasonable Efforts in the Development and Commercialization of Products as provided for in this Agreement and does not cure such failure within [*] days after
GSK’s notification of such failure. In the event of a good faith dispute with respect to the basis of any termination under Section 9.2(a)(iii), the cure period shall be tolled until such time as the dispute is resolved pursuant to
Section 12.1 and GSK shall only have the right to terminate this Agreement if the dispute is resolved in its favor. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 (b) Termination by Zai Lab. Zai Lab may not terminate this
Agreement before the completion of [*] unless for causes beyond the reasonable control of Zai Lab. Subject to the completion of [*], Zai Lab shall have the right to terminate this Agreement on [*] day’s prior written consent. 

9.3 Termination for Uncured Material Breach. In addition to the separate termination rights set forth in Sections 9.2(a) and 9.2(b),
each Party shall have the unilateral right to terminate this Agreement at any time during its Term by providing written notice to that effect if the other Party is in material breach of one or more of its obligations hereunder and has not cured such
breach within [*] days after the date of such notice. In the event of a good faith dispute with respect to the existence of a material breach covered by this section, the cure period shall be tolled until such time as the dispute is resolved
pursuant to Section 12.1 and the Party seeking to terminate shall only have the right to do so if the dispute is resolved in such Party’s favor. 

9.4 Effects of Termination. The rights and obligations of the Parties upon termination of this Agreement shall be governed by the terms
and conditions set forth in this Section 9.4 and in Section 9.5. 
 (a) Termination by GSK for Zai
Lab’s Breach or Termination for Causes. In the event of termination of this Agreement by GSK under Section 9.2(a) or Section 9.3 or termination of this Agreement by Zai Lab under Section 9.2(b): 

(i) Except as may otherwise be agreed in writing by the Parties, Zai Lab will be responsible at its own expense for an orderly
wind-down, in accordance with accepted pharmaceutical industry norms and ethical practices, of any then on-going clinical studies of the Products for which it has responsibility. 

(ii) Zai Lab shall, upon GSK’s request, [*] and/or [*] and, if requested by GSK, [*] and/or [*] and [*] and/or [*]. Zai
Lab shall also [*]. 
 (iii) [*] the Compounds and/or Products that are [*] and [*] or [*]. 

(iv) Zai Lab will [*] or [*]. 

(v) Should Zai Lab or any of its Affiliates have any remaining inventory of Compound and/or Product, Zai Lab shall [*]. 

(vi) If the agreement is terminated by Zai Lab under Section 9.2 (b) and at the time if such termination notice Zai
Lab has completed [*], and if [*], then [*] Zai Lab [*], it being understood that [*], and [*]. 
 (b) Termination
by Zai Lab for GSK’s Material Breach. In the event of termination of this Agreement by Zai Lab under Section 9.3: 

(i) Zai Lab’s further payment obligation under Sections 4.2 and 4.3 shall continue in full force and effect but [*],
provided however that in the event of a dispute between the Parties as to whether grounds for termination pursuant to Section 9.3 have arisen, [*] unless and until the dispute is resolved [*] in accordance with Section 12.1, following
which [*] (and GSK shall [*]). 
 9.5 Survival. Except as otherwise set forth in Section 9.4, the following provisions (as well
as any other provision which by its terms is clearly intended to survive termination or expiration of this Agreement) will survive termination or expiration of this Agreement: Sections [*]. Termination or expiration of this Agreement will not
relieve the Parties of any liability or obligation which accrued hereunder prior to the effective date of such termination or expiration nor preclude either Party from pursuing all rights and remedies it may have hereunder or at law or in equity
with respect to any breach of this Agreement nor prejudice either Party’s right to obtain performance of any obligation. All other rights and obligations will terminate upon termination or expiration of this Agreement. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 10. Prevention of Corruption 

(a) Zai Lab acknowledges that it has received and read the ‘Prevention of Corruption – Third Party Guidelines’ (either in hard
copy in Appendix or at http://www.gsk.com/policies/Prevention-of-Corruption-Third-Party-Guidelines.pdf) and agrees to perform its obligations under the Agreement in accordance with the principles set out therein. 

(b) Zai Lab shall comply fully at all time with all applicable laws and regulations, including but not limited to applicable anti-corruption
laws, of the territory in which Supplier conducts business with GSK. 
 (c) Zai Lab agrees that it has not, and covenants that it will not,
in connection with the performance of the Agreement, directly or indirectly, make, promise, authorise, ratify or offer to make, or take any act in furtherance of any payment or transfer of anything of value for the purpose of influencing, inducing
or rewarding any act, omission or decision to secure an improper advantage; or improperly assisting it or GSK in obtaining or retaining business, or in any way with the purpose or effect of public or commercial bribery. 

(d) Zai Lab shall not contact, or otherwise meet knowingly meet with any Government Official for the purpose of discussing activities arising
out of or in connection with the Agreement, without the prior written approval of GSK and, when requested by GSK, only in the presence of a GSK designated representative. 

(e) For the purpose of the Agreement, “Government Official” means: (a) any officer or employee of a government or any
department, agency or instrument of a government; (b) any person acting in an official capacity for or on behalf of a government or any department, agency, or instrument of a government; (c) any officer or employee of a company or business
owned in whole or part by a government; (d) any officer or employee of a public international organisation such as the World Bank or United Nations; (e) any officer or employee of a political party or any person acting in an official
capacity on behalf of a political party; and/or (f) any candidate for political office; who, when such Government Official is acting in an official capacity, or in an official decision making role, has responsibility for performing regulatory
inspections, government authorisations or licenses, or otherwise has the capacity to take decisions with the potential to affect GSK business. 

(f) Zai Lab represents that except as disclosed to GSK in writing prior to the commencement of the Agreement, it has not been convicted of or
pleaded guilty to a criminal offence, including one involving fraud or corruption, that it is not now, to the best of its knowledge, the subject of any government investigation for such offenses, and that it is not now listed by any government
agency as debarred, suspended, proposed for suspension or debarment, or otherwise ineligible for government programs. 
 (g) Zai Lab
represents and warrants that except as disclosed to GSK in writing prior to the commencement of the Agreement: (1) it does not have any interest which directly or indirectly conflicts with its proper and ethical performance of the Agreement;
and (2) it shall maintain arms length relations with all third parties with which it deals for or on behalf of GSK in performance of the Agreement. 

(h) GSK shall have the right during the terms of this Agreement to conduct an investigation and audit of Zai Lab, its Affiliates licensees and
sublicensee’s activities under this Agreement to monitor compliance with the terms of this Section 10. Zai Lab shall cooperate fully with such investigation or 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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audit, the scope, method, nature and duration of which shall be at the sole reasonable discretion of GSK but shall be during normal business hours and with two (2) week advance written
notice, and shall not adversely affect Zai Lab or its Affiliates licensees and sublicensee’s normal business operation. 
 (i) Zai Lab
shall ensure that all transactions under the Agreement are properly and accurately recorded in all material respects on its books and records and each document upon which entries such books and records are based is complete and accurate in all
material respects. Supplier must maintain a system of internal accounting controls reasonably designed to ensure that it maintains no off-the-books accounts. 

(j) Zai Lab agrees that in the event that GSK believes that there has been a possible violation of the terms of the Agreement, GSK may make
full disclosure of such belief and related information at any time and for any reason to any competent government bodies and its agencies, and to whomsoever GSK determines in good faith has a legitimate need to know. 

(k) GSK shall be entitled to terminate this Agreement immediately on written notice to Zai Lab, if Zai Lab fails to perform its obligations in
accordance with this Section 10. Zai Lab shall have no claim against GSK for compensation for any loss of whatever nature by virtue of the termination of this Agreement in accordance with Section 9.2 and this Section 10. To the extent
(and only to the extent) that the laws of the territory provide for any such compensation to be paid to Zai Lab upon the termination of this Agreement, Zai Lab hereby expressly agrees to waive (to the extent possible under the laws of the territory)
or to repay to GSK any such compensation or indemnity resulting from termination of this Agreement under Section 9.2 and this Section 10. 

11. Human Rights 

(a) Zai Lab represents that, with respect to employment and conducting the activities under this Agreement, Institution will: 

(i) not use child labor in circumstances that could cause physical or emotional impairment to the child; 

(ii) not use forced labor (prison, indentured, bonded or otherwise); 

(iii) provide a safe and healthy workplace; safe housing (if housing is provided by Zai Lab to its employees); and access to
clean water, food, and emergency healthcare in the event of accidents in the workplace; 
 (iv) not discriminate against
employees on any grounds (including race, religion, disability or gender); 
 (v) not use corporal punishment or cruel or
abusive disciplinary practices; 
 (vi) pay at least the minimum wage and provide any legally mandated benefits; 

(vii) comply with laws on working hours and employment rights; 

(viii) respect employees’ right to join and form independent trade unions; 

(ix) encourage subcontractors under this Master Agreement to comply with these standards; 

(x) maintain a complaints process to address any breach of these standards. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 12. General Provisions. 

12.1 Dispute Resolution. The Parties shall negotiate in good faith and use reasonable efforts to resolve or settle any dispute,
controversy or claim arising from or related to this Agreement or the breach thereof. In the event that such dispute, controversy or claim is not resolved on an informal basis within twenty (20) days, any Party may, by written notice to the
other, have such dispute referred to senior executives having decision-making authority on behalf of such Party, who shall attempt in good faith to resolve such dispute for a thirty (30) day period following receipt of such written notice. If
the Parties do not fully settle by the foregoing process, and a Party then wishes to pursue the matter, each such dispute, controversy or claim that is not an Excluded Claim (as defined below) shall be finally resolved by binding arbitration
administered by [*] in accordance with its arbitration rules and the procedures set forth in Exhibit H, attached hereto. Judgment on the arbitration award may be entered in any court having jurisdiction thereof. As used in this
Section 12.1, the term “Excluded Claim” means a dispute, controversy or claim that concerns (i) the validity or infringement of a patent, trademark or copyright; or (ii) any antitrust, anti-monopoly or competition law
or regulation, whether or not statutory. 
 12.2 Relationship of Parties. The relationship of the Parties hereto is that of
independent contractors. Nothing in this Agreement is intended or will be deemed to constitute a partnership, agency, employer-employee or joint venture relationship between the Parties. No Party will incur any debts or make any commitments for the
other, except to the extent, if at all, specifically provided therein. There are no express or implied third party beneficiaries hereunder. 

12.3 Compliance with Law. Each Party will perform or cause to be performed any and all of its obligations or the exercise of any and all
of its rights hereunder in good scientific manner and in compliance with all applicable law. 
 12.4 Governing Law. This Agreement and
any dispute regarding the performance or breach hereof will be governed, interpreted and construed in accordance with the laws of [*], without respect to its conflict of laws rules. 

12.5 Counterparts; Facsimiles. This Agreement may be executed in two or more counterparts, each of which will be deemed an original, and
all of which together will be deemed to be one and the same instrument. 
 12.6 Headings. All headings in this Agreement are for
convenience only and will not affect the meaning of any provision hereof. 
 12.7 Waiver of Rule of Construction. Each Party has had
the opportunity to consult with counsel in connection with the review, drafting and negotiation of this Agreement. Accordingly, the rule of construction that any ambiguity in this Agreement will be construed against the drafting party will not
apply. 
 12.8 Interpretation. “Herein,” “hereby,” “hereunder,” “hereof” and other equivalent
words refer to this Agreement as an entirety and not solely to the particular portion of this Agreement in which any such word is used. References to any Articles or Sections include Articles, Sections and subsections that are part of the related
Article or Section (e.g., a section numbered “Section 2.1” would be part of “Article 2”, and references to “Section 2.1” would also refer to material contained in the subsection described as
“Section 2.1(a)”). 
 12.9 Binding Effect. This Agreement will inure to the benefit of and be binding upon the Parties
and their respective lawful successors and assigns. 
 12.10 Assignment. This Agreement may not be assigned by either Party, except as
expressly permitted hereunder or otherwise without the prior written consent of the other Party, which consent will not be unreasonably withheld, delayed or conditioned; provided that, without any requirement for consent, (i) Zai Lab may
assign this Agreement to an Affiliate or to its successor in connection with the merger, 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 20 of 36 

			
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consolidation, or sale of all or substantially all of its stock or assets, and (ii) GSK may assign this Agreement to an Affiliate or to its successor in connection with the merger,
consolidation, or sale of all or substantially all of its stock or assets to which this Agreement relates. 
 12.11 Notices. All
notices, requests, demands and other communications required or permitted to be given pursuant to this Agreement will be in writing and will be deemed to have been duly given upon the date of receipt if delivered by hand, recognized international
overnight courier, confirmed facsimile transmission, or registered or certified mail, return receipt requested, postage prepaid to the following addresses or facsimile numbers: 

 

			
	If to GSK:	  	 GlaxoSmithKline (China) R&D Company Limited

Building 3, 898 Halei Road, Zhangjiang High-Tech Park, Shanghai 201203, China

Attention: Director, Business Development

		
	With a copy to:	  	 GSK House
 980 Great West Road

Brentford, Middlesex, United Kingdom
 Attention: BDTT
Legal

		
	If to Zai Lab:	  	 Zai Lab (Shanghai) Co., Ltd.
 1043 Halei Road,
Bldg 8, Suite 502, Zhangjiang High-Tech Park, Shanghai 201203, China
 Attention: Samantha Du, CEO

 Either Party may change its designated address and facsimile number by notice to the other Party in the
manner provided in this Section 12.11. 
 12.12 Amendment and Waiver. This Agreement may be amended or modified only by means of
a written instrument signed by both Parties. The waiver by either Party hereto of any right hereunder, or of any failure of the other Party to perform, or of any breach by the other Party, shall only be effective if expressly made in writing. Any
waiver of any rights or failure to act in a specific instance will relate only to such instance and will not be construed as an agreement to waive any rights or fail to act in any other instance, whether or not similar. 

12.13 Severability. In the event that any provision of this Agreement will, for any reason, be held to be invalid or unenforceable in
any respect, such invalidity or unenforceability will not affect any other provision hereof, and the Parties will negotiate in good faith to modify this Agreement to preserve (to the extent possible) their original intent. 

12.14 Entire Agreement. This Agreement is the sole agreement with respect to the subject matter and supersedes all other agreements and
understandings between the Parties with respect to the same subject matter. The Exhibits to this Agreement are expressly incorporated herein by reference and shall be deemed a part of this Agreement. 

12.15 Force Majeure. Failure of any Party to perform its obligations under this Agreement (except the obligation to make payments when
properly due) shall not subject such Party to any liability or place them in breach of any term or condition of this Agreement to the other Party to the extent (and only to the extent) that such failure is due to fire, explosion, flood, drought,
war, terrorism, riot, sabotage, embargo, strikes or other labor trouble, failure of suppliers, a national health emergency, compliance with any order or regulation of any government entity acting with color of right, or any other cause beyond the
reasonable control of such non-performing Party and which is not caused by the negligence, intentional conduct or misconduct of the non-performing Party (each such event or cause referred to as “force majeure”). The Party affected
shall 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 21 of 36 

			
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promptly notify the other Party of the condition constituting force majeure as defined herein and shall exert reasonable diligent efforts to eliminate, cure or overcome any such event of force
majeure and to resume performance of its obligations with all possible speed. If a condition constituting force majeure as defined herein exists for more than ninety (90) consecutive days, the Parties shall meet to negotiate a mutually
satisfactory resolution to the problem, if practicable. The foregoing notwithstanding, nothing herein shall require any Party to settle on terms unsatisfactory to such Party any strike, lock-out or other labor difficulty, any investigation or
proceeding by any public authority or any litigation by any Third Party. 
 12.16 Further Actions. Each Party hereby agrees to
execute, acknowledge and deliver such further instruments, and to do all other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement including, without limitation, any filings with any government
antitrust agency which may be required. 
 {Remainder of this Page Intentionally Left Blank} 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 22 of 36 

			
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 IN WITNESS WHEREOF, the Parties have caused this License and Transfer Agreement to be
executed by their respective duly authorized officers as of the Effective Date. 
 GlaxoSmithKline (China) R&D Co., Ltd 

 

	 	By:	/s/ Min Li                                

    (Signature) 

Name: Min Li 
 Title:   SVP, Global Head of Neuroscience
TAU and GM of R&D China 
 Date: October 18, 2016 

Zai Lab (Shanghai) Co., Ltd. 
  

	 	By:	/s/ Ying Du                             

(Signature) 
 Name: Ying Du 

Title: CEO 
 Date: Oct 18, 2016 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 23 of 36 

			
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 Exhibit A 

Development Plan 
  

							
	 Task
	  	 Estimated Start Date
	  	Estimated End Date	 
	 FUGAN:
	  		  			
			
	[*]	  	[*]	  	 	[*]	 
			
	 GRAPE:
	  		  			
			
	[*]	  	[*]	  	 	[*]	 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 Exhibit B 

Structure of Compounds: 
 FUGAN:

 The formulation comprising extracts from two traditional Chinese herbs, [*] 

GRAPE: 
 the formulation comprising extracts from two
traditional Chinese herbs, [*] 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 Exhibit C 

Transferred Material, Data, Files and Documents 

[*] (2 pages omitted) 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 Exhibit D 

Licensed Patents 
  

									
	 Patent Number
	  	 Patent title
	  	 Filing Date
	  	 Grant Date
	  	 Country

	 [*]
	  	[*]	  	[*]	  	[*]	  	[*]

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 27 of 36 

			
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 Exhibit E 

Manner of the Payment 
 GSK will provide
Zai Lab an invoice for each Payment and Royalty. The Payments and Royalties will be paid by wire transfer to GSK’s account provided herein. 

Wire transfer from Chinese external party: 
 [*]

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 28 of 36 

			
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 Exhibit F 

Form of Assignment and Assumption Agreement 

ASSIGNMENT AND ASSUMPTION AGREEMENT 
  

 
 THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (“Assignment Agreement”) is made and entered into as of
[date], 2016 by and among GlaxoSmithKline (China) R&D Co., Ltd, whose registered office is at Building 3, 898 Halei Road, Zhangjiang Hi-Tech Park, Pudong New Area, Shanghai, PRC (“Former Licensee”), and [Chengdu Bater Pharmaceutical
Co., Ltd./ Traditional Chinese Medical Hospital, Xinjiang Medical University], which has its registered office at [            ] (“Licensor”), and Zai Lab (Shanghai) Co., Ltd.,
whose registered office is at 1043 Halei Road, Bldg 8, Suite 502, Zhangjiang High-Tech Park, Pudong New Area, Shanghai 201203, PRC (“New Licensee”). 
 

 
  
 RECITALS 

 
 WHEREAS, Former Licensee and Licensor are the parties to the [License and Assignment
Agreement/Development and License Agreement] attached hereto as Exhibit I, which dated [July 15, 2013/ September 25, 2014] (“Existing Agreement”), 
 

 
 WHEREAS, Former Licensee wishes to assign and transfer, and New Licensee wishes to accept and
assume, all of Former Licensee’s rights and obligations, respectively, under the Existing Agreement, 
 

 
 WHEREAS, Former Licensee and New Licensee have executed the License and Transfer Agreement
(“License and Transfer Agreement”) on the same date hereof. 
 

 
 WHEREAS, Licensor has agreed to consent to the assignment according to the terms set forth herein,

 

 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 29 of 36 

			
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 NOW THEREFORE, in consideration of the foregoing and the mutual covenants and
agreements herein contained, and intending to be legally bound hereby, the parties hereby agree as follows, 
 

 
  

	1.	Assignment. Former Licensee hereby conveys, assigns and transfers to New Licensee all its rights, title, interest and any and all liabilities and obligations in and to the Existing Agreement, and New
Licensee hereby accepts and assumes the assignment of Former Licensee’s right, title, interest, and any and all liabilities and obligations of Former Licensee under the Existing Agreements, and shall be bound by all of the terms of the Existing
Agreements in Former Licensee’s place and stead in every way as if New Licensee were a party to the Existing Agreements in lieu of Former Licensee (“Assignment”). 

 
  

	2.	Consent of Licensor. Licensor hereby consents to the Assignment, and, with effect from the Effective Date, Licensor also undertakes to perform the Existing Agreement and to be bound by its terms in every
way as if New Licensee were a party to the Existing Agreement in lieu of Former Licensee. 

 

 
  

	3.	Change of Obligations and Notice. 

 

 
  

	 	3.1	Licensor hereby agrees and acknowledges that: 

 

 
  

	 	(i)	as of the date hereof, Former Licensee has made the following payments to Licensor under the Existing Agreement in an aggregate amount of [*], including the settled payments as listed below, and any other payables by
Former Licensee under the Existing Agreement shall be paid by New Licensee upon the Effective Date; 

 

 
 [Settled Payments to Licensor for FUGAN] 
 

 
 [*] 

[Outstanding payments to be made upon achievement of milestone events for FUGAN:] 

 
 [*] 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

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 [Settled Payments to Licensor for GRAPE] 

 
 [*] 
  

	 	(ii)	as of the date hereof, Former Licensee is in compliance with all of the terms and conditions under the Existing Agreement and no default by Former Licensee under the Existing Agreement has occurred or is continuing;

 

 
  

	 	(iii)	unless otherwise provided herein, all the terms and conditions of the Existing Agreement and any exhibits or schedules thereof are in full force and effect and is enforceable in accordance with its terms.

 

 
  

	 	3.2	Licensor hereby releases, acquits and forever discharges Former Licensee from and of each covenant and condition of, and each liability or other obligation arising under, the Existing Agreement to be observed or
performed by Former Licensee pursuant to the terms thereof and Former Licensee shall no longer be bound by, or have any obligation or liability in respect of, the Existing Agreement. [*][*] 

 
  

	 	3.3	Any notice or other communication between New Licensee and Licensor required or permitted hereunder under the Existing Agreement or any other documents in connection herewith shall be directed as follows:

 

 
 If to New Licensee: 
 

 
 Attn: Samantha Du, CEO 
 

 
 Address: 1043 Halei Road, Bldg 8, Suite 502, Zhangjiang High-Tech Park, Shanghai 201203, China 

 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 31 of 36 

			
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 If to Licensor: 
 

 
 Attn: 
 

 
 Address: 
 

 
  

	4.	Continued Effectiveness. This Assignment Agreement shall take effect from the date that New Licensee fulfils its payment obligations as per section 2.2 of the License and Transfer Agreement
(“Effective Date”). Except as otherwise provided herein, all terms and conditions of the Existing Agreements shall remain in effect and unchanged. 

 

 
  

	5.	Governing Law. This Assignment Agreement shall be governed by and construed in accordance with the laws of the People’s Republic of China. 

 
  

	6.	Dispute Resolution. Any claim, controversy or dispute among the parties hereto arising out of, relating to, or in connection with this Assignment Agreement, including the interpretation, validity,
termination or breach hereof, that cannot be settled amicably, shall be resolved in accordance with the dispute resolution provisions set forth in the Existing Agreement. 

 
  

	7.	Counterparts. This Assignment Agreement may be executed in [three/five] counterparts each of which shall be deemed an original and all of which shall be deemed one and the same instrument.

 

 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 32 of 36 

			
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 IN WITNESS WHEREOF, the parties have caused this Assignment Agreement to be duly executed under seal on the
date first written above. 
 

 
 GlaxoSmithKline (China) R&D Co., Ltd 
 

 
  

			
	By/

:	 	  

			
		
		 	(Signature)
		
	Name/

:	 	  

		
	Title/

:	 	  

		
	Date/

:	 	  

			
	
	Zai Lab (Shanghai) Co., Ltd.
	

			
		
	By/

:	 	  

		
		 	(Signature)
		
	Name/

:	 	  

		
	Title/

:	 	  

		
	Date/

:	 	  

	
	[LICENSOR NAME]
	

		
	By/

:	 	  

		
		 	(Signature)
		
	Name/

:	 	  

		
	Title/

:	 	  

		
	Date/

:	 	  

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 33 of 36 

			
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 Exhibit G 

Press Release 
  
 

 
 ZAI Lab announces a global agreement with GlaxoSmithKline in two anti-inflammatory assets 

Shanghai, China – 18 October 2016 – Zai Lab Ltd. announces today a global agreement with GlaxoSmithKline (GSK) to develop and
commercialize one phase 2 clinical and one pre-clinical anti-inflammatory assets. Both assets are products targeting multiple anti-inflammatory indications. 

Specific details have not been released, but this agreement gives Zai Lab’s veteran team exclusive rights to lead future development of the products
through clinical development, regulatory activities, and commercialization globally. 
 About Zai Lab 

ZAI Lab is a leading biotech company based in China focused on discovering and developing innovative medicines for unmet medical needs globally. The company is
building a strong portfolio of therapeutic programs aimed at transforming patients’ lives. Zai Lab has a world class leadership team with deep experience at global pharmaceutical and biotech organizations. The team has a strong track record of
success – successfully taken five novel drug candidates into clinical trials in China, pioneered new regulatory channels, secured regulatory approvals in record times, conducted multiple IND trials in the US, and brought the first China
discovered drug into Global Phase III trials. Zai Lab is committed to build a globally leading drug research and development powerhouse with a culture of excellence and teamwork and a strong focus on fostering innovation and creativity. For more
information, please visit www.zailaboratory.com 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 34 of 36 

			
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 Exhibit H 

Arbitration Proceedings 
  

	1.	The arbitration shall be conducted by a panel of three (3) persons experienced in the pharmaceutical business. Within thirty (30) days after initiation of an arbitration, each Party shall select one person to
act as arbitrator and the two Party-selected arbitrators shall select a third arbitrator within thirty (30) days of their appointment. If the arbitrators selected by the Parties are unable or fail to agree upon the third arbitrator, the third
arbitrator shall be appointed by the [*]. The place of arbitration shall be [*], and all proceedings and communications shall be in English. 

  

	2.	Either Party may apply to the arbitrators for interim injunctive relief until the arbitration award is rendered or the controversy is otherwise resolved. Either Party also may, without waiving any remedy under this
Agreement, seek from any court having jurisdiction any injunctive or provisional relief necessary to protect the rights or property of that Party pending the arbitration award. The arbitrators shall have no authority to award any damages excluded by
Section 8.4. Each Party shall bear its own costs and expenses and attorneys’ fees and an equal share of the arbitrators’ fees and any administrative fees of arbitration. 

 

	3.	Except to the extent necessary to confirm an award or as may be required by law, neither a Party nor an arbitrator may disclose the existence, content, or results of an arbitration without the prior written consent of
both Parties. In no event shall an arbitration be initiated after the date when commencement of a legal or equitable proceeding based on the dispute, controversy or claim would be barred by the applicable [*] statute of limitations.

  

	4.	The Parties agree that, in the event of a good faith dispute over the nature or quality of performance under this Agreement, neither Party may unilaterally terminate this Agreement until final resolution of the dispute
through arbitration or other judicial determination. The Parties further agree that any payments made pursuant to this Agreement pending resolution of the dispute shall be refunded if an arbitrator or court determines that such payments are not due.

  

	5.	During the pendency of any arbitration the Parties shall continue to perform their respective obligations under this Agreement. To the extent that such performance involves any matter which is the subject of the
dispute, claim or controversy being arbitrated, the Parties shall continue performance of such matter under this Agreement in such a manner as to the fullest extent possible maintain the status quo of the Parties with respect to the disputed matter.

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 35 of 36 

			
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 Exhibit I 

Prevention of Corruption – Third Party Guidelines 

The GSK Anti-Bribery and Corruption Policy (POL-GSK-007) requires compliance with the highest ethical standards and all anti-corruption laws applicable in the
countries in which GSK (whether through a third party or otherwise) conducts business. POL-GSK-007 requires all GSK employees and any third party acting for or on behalf of GSK to ensure that all dealings with third parties, both in the private and
government sectors, are carried out in compliance with all relevant laws and regulations and with the standards of integrity required for all GSK business. GSK values integrity and transparency and has zero tolerance for corrupt activities of any
kind, whether committed by GSK employees, officers, or third-parties acting for or on behalf of the GSK. 
 Corrupt Payments – GSK employees and
any third party acting for or on behalf of GSK, shall not, directly or indirectly, promise, authorise, ratify or offer to make or make any “payments” of “anything of value” (as defined in the glossary section) to any individual
(or at the request of any individual) including a “government official” (as defined in the glossary section) for the improper purpose of influencing or inducing or as a reward for any act, omission or decision to secure an improper
advantage or to improperly assist the company in obtaining or retaining business. 
 Government Officials – Although GSK ́s policy
prohibits payments by GSK or third parties acting for or on its behalf to any individual, private or public, as a “quid pro quo” for business, due to the existence of specific anticorruption laws in the countries where we operate, this
policy is particularly applicable to “payments” of “anything of value” (as defined in the glossary section), or at the request of, “government officials” (as defined in the glossary section). 

Facilitating Payments – For the avoidance of doubt, facilitating payments (otherwise known as “greasing payments” and defined as
payments to an individual to secure or expedite the performance of a routine government action by government officials) are no exception to the general rule and therefore prohibited. 

GLOSSARY 
 The terms defined herein should be construed
broadly to give effect to the letter and spirit of the ABAC Policy. GSK is committed to the highest ethical standards of business dealings and any acts that create the appearance of promising, offering, giving or authorising payments prohibited by
this policy will not be tolerated. 
 Anything of Value: this term includes cash or cash equivalents, gifts, services, employment offers, loans,
travel expenses, entertainment, political contributions, charitable donations, subsidies, per diem payments, sponsorships, honoraria or provision of any other asset, even if nominal in value. 

Payments: this term refers to and includes any direct or indirect offers to pay, promises to pay, authorisations of or payments of anything of value.

 Government Official shall mean: 
  

	 	•	 	Any officer or employee of a government or any department, agency or instrument of a government; 

  

	 	•	 	Any person acting in an official capacity for or on behalf of a government or any department, agency, or 

  

	 	•	 	instrument of a government; 

  

	 	•	 	Any officer or employee of a company or business owned in whole or part by a government; 

  

	 	•	 	Any officer or employee of a public international organisation such as the World Bank or United Nations; 

  

	 	•	 	Any officer or employee of a political party or any person acting in an official capacity on behalf of a 

  

	 	•	 	political party; and/or 

  

	 	•	 	Any candidate for political office 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 36 of 36EX-10.6

 [*] = Certain confidential information contained in this document, marked by brackets, has been omitted and
filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
 Exhibit
10.6 
 ASSIGNMENT AND ASSUMPTION AGREEMENT 

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (“Assignment Agreement”) is made and entered into as of October 13, 2016 by and among
GlaxoSmithKline (China) R&D Co., Ltd, whose registered office is at Building 3, 898 Halei Road, Zhangjiang Hi-Tech Park, Pudong New Area, Shanghai, PRC (“Former Licensee”), and Chengdu Bater
Pharmaceutical Co., Ltd, which has its registered office at No. 52, Baihua East St., Wuhou District, Chengdu, Sichuan, China (“Licensor”), and Zai Lab (Shanghai) Co., Ltd. whose registered office is at 1043 Halei Road, Bldg 8, Suite
502, Zhangjiang High-Tech Park, Pudong New Area, Shanghai, China (“New Licensee”). 
 RECITALS 

WHEREAS, Former Licensee and Licensor are the parties to the License and Assignment Agreement attached hereto as Exhibit I, which
dated July 15, 2013 (“Existing Agreement”), 
 WHEREAS, Former Licensee wishes to assign and transfer, and New
Licensee wishes to accept and assume, all of Former Licensee’s rights and obligations, respectively, under the Existing Agreement, 

WHEREAS, Former Licensee and New Licensee have executed the License and Transfer Agreement (“License and Transfer Agreement”)
on the same date hereof. 
 WHEREAS, Licensor has agreed to consent to the assignment according to the terms set forth herein. 

NOW THEREFORE, in consideration of the foregoing and the mutual covenants arid agreements herein contained, and intending to be legally
bound hereby, the parties hereby agree as follows, 
  

	1.	Assignment. Former Licensee hereby conveys, assigns and transfers to New Licensee all its rights, title, interest and any arid all liabilities and obligations in and to the Existing Agreement, and New
Licensee hereby accepts and assumes the assignment of Former Licensee’s right, title, interest, and any and all liabilities and obligations of Former Licensee under the Existing Agreements, and shall be bound by all of the terms of the Existing
Agreements in Former Licensee’s place and stead in every way as if New Licensee were a party to the Existing Agreements in lieu of Former Licensee (“Assignment”). 

 

	2.	Consent of Licensor. Licensor hereby consents to the Assignment, and, with effect from the Effective Date, Licensor also undertakes to perform the Existing Agreement and to be bound by its
terms in every way as if New Licensee were a party to the Existing Agreement in lieu of Former Licensee. 

  
 -1- 

	3.	Change of Obligations and Notice. 

  

	 	3.1	Licensor hereby agrees and acknowledges that: 

  

	 	(i)	as of the date hereof, Former Licensee has made the following payments to Licensor under the Existing Agreement in an aggregate amount of [*], including the settled payments as listed below, and any other payables by
Former Licensee under the Existing Agreement shall be paid by New Licensee upon the Effective Date; 

  

	 	(1)	Settled Payments include: 

 [*] 

 

	 	(2)	Outstanding payments to be made upon achievement of milestone events under the Existing Agreement include: 

[*] 
  

	 	(ii)	as of the date hereof, Former Licensee is in compliance with all of the terms and conditions under the Existing Agreement and no default by Former Licensee under the Existing Agreement has occurred or is continuing;

  

	 	(iii)	unless otherwise provided herein, all the terms and conditions of the Existing Agreement and any exhibits or schedules thereof are in full force and effect and is enforceable in accordance with its terms.

  

	 	3.2	Licensor hereby releases, acquits and forever discharges Former Licensee from and of each covenant and condition of, and each liability or other obligation arising under, the Existing Agreement to be observed or
performed by Former Licensee pursuant to the terms thereof and Former Licensee shall no longer be bound by, or have any obligation or liability in respect of, the Existing Agreement. [*] 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

-2- 

	 	3.3	Any notice or other communication between New Licensee and Licensor required or permitted hereunder under the Existing Agreement or any other documents in connection herewith shall be directed as follows:

 If to New Licensee: 

Attn: Samantha Du, CEO 

Address: 1043 Halei Road, Bldg 8, Suite 502, Zhangjiang High-Tech Park, Pudong New Area, Shanghai, China 

If to Licensor: 
 Attn: Jingmin
Zhao 
 Address: No. 52, Baihua East St., Wuhou District, Chengdu, Sichuan, China 

 

	4.	Continued Effectiveness. This Assignment Agreement shall take effect from the date that New Licensee fulfils its payment obligations as per section 2.2 of the License and Transfer Agreement
(“Effective Date”). Except as otherwise provided herein, all terms and conditions of the Existing Agreements shall remain in effect and unchanged. 

  

	5.	Governing Law. This Assignment Agreement shall be governed by and construed in accordance with the laws of the People’s Republic of China. 

 

	6.	Dispute Resolution. Any claim, controversy or dispute among the parties hereto arising out of, relating to, or in connection with this Assignment Agreement, including the interpretation, validity,
termination or breach hereof, that cannot be settled amicably, shall be resolved in accordance with the dispute resolution provisions set forth in the Existing Agreement. 

 

	7.	Counterparts. This Assignment Agreement may be executed in three counterparts each of which shall be deemed an original and all of which shall be deemed one and the same instrument. 

[The remainder of this page intentionally left blank; the signature page follows] 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

-3- 

 IN WITNESS WHEREOF, the parties have caused this Assignment Agreement to be duly executed under seal on the date
first written above. 
  

			
	GlaxoSmithKline (China) R&D Co., Ltd
		
	By:	 	/s/ Min Li
		 	(Signature)
		
	Name:	 	Min Li
		
	Title:	 	SVP, Global Head of Neuroscience TAU and GM of R&D China
		
	Date:	 	2016.10.21
	
	Zai Lab (Shanghai) Co., Ltd.
		
	By:	 	/s/ Ying Du
		 	(Signature)
		
	Name:	 	Ying Du
		
	Title:	 	CEO
		
	Date:	 	2016.10.24
	
	Chengdu Bater Pharmaceutical Co., Ltd
		
	By	 	 /s/ [ILLEGIBLE]

		 	(Signature)
		
	Name	 	 [ILLEGIBLE]

		
	Title	 	 [ILLEGIBLE]

		
	Date:	 	2016.10.13

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

-4- 

 Exhibit I 

License and Assignment Agreement 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

-5- 

 LICENSE AND ASSIGNMENT AGREEMENT 

Between 
 Chengdu Bater
Pharmaceutical Co., Ltd 
 and 

GlaxoSmithKline (China) R&D Co., Ltd 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

 

 THIS LICENSE AND ASSIGNMENT AGREEMENT (“Agreement”) is made on July 15, 2013
(“Effective Date”) 
 BETWEEN: 
  

	 	(1)	Chengdu Bater Pharmaceutical Co., Ltd, a limited liability company duly established and validly existing under the law of the People’s Republic of China (“PRC”), whose registered address is
at No. 52, Baihua East St., Wuhou District, Chengdu, Sichuan, China 610041 (“CBP”); and 

  

	 	(2)	GlaxoSmithKline (China) R&D Co., Ltd, a foreign invested enterprise duly established and validly existing under PRC law, whose registered office is at Building 3, 898 Halei Road, Zhangjiang Hi-Tech Park, Pudong New Area, Shanghai, PRC (“GSK”). 

 BACKGROUND: 

 

	 	1.	CBP is currently engaging in developing a Traditional Chinese Medicine incorporating Fugan for the treatment of diseases in dermatology (“Fugan Program”) and has completed early stage researches;

  

	 	2.	GSK wishes to, by obtaining a license to and subsequent assignment of certain IPs and Know-how from CBP, participating in developing the Product worldwide (including China) with
the ultimate purpose of manufacturing and commercializing the Product; and 

  

	 	3.	CBP agrees to grant such a license and subsequently assign to GSK. 

 NOW IT IS HEREBY AGREED AS FOLLOWS:

  

	1	DEFINITIONS 

 The following capitalized terms shall have the meanings given in
this Section when used in this Agreement: 
  

					
		 	Affiliate(s)	 	with respect to any specified person (including without limitation any corporation or other business entity), any person that is directly or indirectly controlling, controlled by, or under common control with such first person for
so long as such control exists. For the purposes of this definition, (a) “control” shall mean (i) the direct or indirect ownership of at least 50% of the outstanding shares or voting interest in such person; or (ii) the ability
to direct the affairs of such

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 2 of 28 

					
		 		 	person through the power to appoint a majority of the directors or similar governing body of such person, an investment relationship, or contractual or other arrangements; and (b) “person” means any individual,
corporation, partnership, proprietorship, association, limited liability company, firm, trust, estate or other enterprise or institution having recognition as a legal person or entity.
			
		 	Agreement	 	this document, including its Schedules, as amended from time to time in accordance with Section 15.10;
			
		 	Arising IP	 	all data, result, information, documents, Know-how, IPs, clinical trial materials, manufacturing technologies and protocols, supply information, regulatory dossier and packages for the
Development, registration, manufacture and Commercialization of the Product generated during the Term of the Agreement and after Fugan Program Transfer;
			
		 	Background IP	 	information, data, results, techniques, methods, processes, Know-how, Intellectual Property, software and materials (regardless of the form or medium in which they are disclosed or stored)
that are granted by CBP or its Affiliates to GSK or its Affiliates for use under this Agreement and that are: (i) existing prior to the Effective Date; or (ii) independently discovered and developed during the Term by CBP or its Affiliates
other than in performance of its obligations under this Agreement and without use of the Intellectual Property, Know-how or Confidential Information of GSK or its Affiliates;
			
		 	Business Day	 	Monday to Friday (inclusive) except public holidays in the PRC;
			
		 	CFDA	 	the China Food and Drug Administration or its predecessor;

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 3 of 28 

					
		 	CNY	 	Chinese Yuan, legal currency of the PRC;
			
		 	Commercialization	 	with respect to a Product, the manufacture, marketing and sale of such Product. Commercialize and Commercializing shall be construed accordingly.
			
		 	Confidential Information	 	any information (including without limitation any Know-how, results, and regulatory submissions) disclosed by one Party to other Party for use under this Agreement which a reasonable business
person would determine to be secret or confidential or which is identified as confidential before or at the time of disclosure or other information which is identified as confidential before or at the time of disclosure (or, if orally,
electronically or visually disclosed without being identified as confidential before or at the time of disclosure, that the disclosing Party, describes and references the place and date of such oral, electronic or visual disclosure and the names of
the person(s) to whom such disclosure was made in a written document or documents delivered to the receiving Party within ten (10) days after such disclosure);
			
		 	CTA	 	the approval issued by CFDA for conducting clinical trial on human subjects for drug products in China;
			
		 	Development	 	all discovery, research and development work necessary to enable the manufacture of Products for Commercialization. Develop and Developing shall be construed accordingly;
			
		 	Evaluation	 	studies conducted by GSK as specified in Schedule 2 to evaluate preclinical pharmacology, safety, manufacturing and supply processes for Fugan to support its future clinical development;

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 4 of 28 

					
		 	Fugan	 	the materials from two herbs, [*];
			
		 	Fugan Program Transfer	 	Delivery of all documents, non-clinical and clinical data, regulatory dossier and any other information under Fugan Program that is in possession of CBP as of the Effective Date concerning the
Development of the Fugan, with details specified in Schedule 1;
			
		 	GSK Criteria GSK	 	criteria specified in Schedule 2;
			
		 	Intellectual Property or IP	 	Patents and other like forms of protection, copyrights, rights in databases, trade names, trade or service marks (whether registered or unregistered), trade secrets, domain names, design rights (whether registered or unregistered),
including all applications for registration for the foregoing and all other similar proprietary rights as may exist anywhere in the world;
			
		 	Know-how	 	all non-patentable information including, without limitation, information relating to data, results, technology, inventions, discoveries, concepts, methodologies, models, research, development
and testing procedures, source and supply, manufacturing processes, techniques and specifications, quality control data, analyses and reports, regulatory dossier and packages;
			
		 	Marketing Authorization	 	in relation to a Product, those authorizations necessary from one or more regulatory authorities in the relevant country for the manufacture, marketing, distribution or sale of a medicinal product;
			
		 	New Drug Certificate	 	a certificate issued by CFDA for any new drug product developed in China;
			
		 	Party or Parties	 	Party means GSK and its Affiliates or CBP and its Affiliates, Parties means both GSK and CBP and their Affiliates;

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 5 of 28 

					
		 	Patents	  	Patents and patent applications and all substitutions, divisions, continuations, continuations-in-part, any patent issued with respect to any such
patent applications, any reissue, reexamination, utility models or designs, renewal or extension (including any supplementary protection certificate) of any such patent, and any confirmation patent or registration patent or patent of addition based
on any such patent, and all counterparts thereof in any country;
			
		 	Phase II Clinical Trial	  	preliminary evaluation of therapeutic effectiveness of a drug, for the purpose of preliminarily evaluating the therapeutic effectiveness and safety of the drug for patients with target indication(s), and provide evidence for design
of Phase III Clinical Trial and settlement of administrative dose regimen;
			
		 	Phase III Clinical Trial	  	confirmation of therapeutic effectiveness of a drug, for the purpose of further verifying drug therapeutic effectiveness and safety on eligible patients with target indication(s), evaluating overall benefit-risk relationships of the
drug, and ultimately providing sufficient evidence for the review of drug registration application;
			
		 	Product	  	a Traditional Chinese Medicine incorporating the Fugan in any formulation,;
			
		 	TCM Approvals:	  	the approval(s) by PRC traditional Chinese medicine regulatory authorities with respect to the transfer, license, or technology exchange of traditional Chinese medicine research results or the collaboration with foreign entities or
foreign invested entities in the research, development or other activities with respect to traditional Chinese medicine under the PRC Regulations on Traditional Chinese Medicine and the Provisional Measures regarding Foreign-related Administration
of Traditional Chinese Medicine;
			
		 	Term:	  	the term of this Agreement as specified in Section 11.1

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 6 of 28 

	2	FUGAN PROGRAM TRANSFER AND DEVELOPMENT OF PRODUCT 

  

	2.1.	CBP acknowledges that as of the Effective Date, it has completed the non-clinical study and certain clinical researches of the Fugan at its own costs and has duly obtained the CTA
for conducting Phase II and Phase III Clinical Trial for the Products in China. 

  

	2.2.	CBP shall complete the Fugan Program Transfer within thirty (30) days upon the Effective Date, and shall have a continuous obligation thereafter to provide any further materials, documents, information produced,
completed, and available to CBP or any other assistance reasonably required by GSK throughout the Term of this Agreement, for the purpose of Developing, manufacturing and Commercializing the Product. 

 

	2.3.	Upon completion of the Fugan Program Transfer, GSK will conduct the Evaluation. To the extent the Fugan Program meets GSK Criteria upon such Evaluation, GSK may decide to continue the subsequent Development of the
Product, including but not limited to performing and funding Phase II and Phase III Clinical Trial in China subject to the terms and conditions of this Agreement. 

 

	2.4.	CBP acknowledges that GSK’s Evaluation and Development of the Product as contemplated in Section 2.3 above shall be made at its sole discretion and may be conducted by GSK or a third party designated by GSK
(“GSK Designated Party”). 

  

	2.5.	CBP acknowledges and agrees that, GSK shall be solely responsible for the Development of the Product. In particular, GSK will exercise full control and take decisions in respect of the Developing activities for the
Product, including but not limited to: 

  

	 	(i)	Designing and finalizing the detailed implementation plans of the clinical trial protocol, informed consent form (“ICF”) and any amendments thereto; 

 

	 	(ii)	Evaluation and selection of trial sites and principal investigators; 

  

	 	(iii)	Negotiating and entering into clinical trial agreements on behalf of CBP by using GSK approved templates; 

  

	 	(iv)	Monitoring the clinical trials and remain as key contact with the sites for the clinical trials; 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 7 of 28 

	 	(v)	Reviewing, handling and settling any adverse event claims arising from the Development of Product performed by GSK; and 

  

	 	(vi)	Participating in the communication with any regulatory authorities in relation to the Development of the Product. 

  

	2.6.	CBP, as the holder of CTA and the sponsor of the Phase II and Phase III Clinical Trials for the Product, shall provide necessary assistance and execute such document and/or enter into separate agreements with GSK or GSK
Designated Party as reasonably required by GSK to complete Development, including but not limited to Phase II and Phase III Clinical Trials. 

  

	2.7.	CBP shall maintain a valid CTA in the course of clinical trials under this Agreement. In case any changes need to be made in the clinical trial protocol in the course of such trials, CBP shall be responsible for
obtaining appropriate approvals for such changed protocol, including but not limited to an approval by the ethics committee or a revised CTA from CFDA. Any actions to be taken by CBP or any written communication to be provided to the ethics
committee or CFDA for the purpose of obtaining appropriate approvals for such changed protocol shall be subject to the prior written approval by GSK. In addition, GSK is entitled to participate in any discussion CBP may have with the ethics
committee or CFDA with respect to the changed protocol. 

  

	2.8.	Upon successful completion of Phase III Clinical Trial, at the sole discretion of GSK, CBP shall provide necessary assistance as reasonably required by GSK to complete: (i) a joint application by CBP and GSK or GSK
Designated Party for the New Drug Certificate and/or Marketing Authorization of the Product, under which GSK or GSK Designated Party shall be identified as the manufacturer of the Product; or (ii) an application by CBP itself for the New Drug
Certificate of the Product, and a subsequent supplemental application with CFDA when requested by GSK for technology transfer from CBP to GSK or GSK Designated Party so that GSK or GSK Designated Party can obtain the Marketing Authorization of the
Product. 

  

	2.9.	Subject to Section 2.8, GSK or GSK Designated Party shall be the sole holder of the Marketing Authorization of the Product in China. 

 

	2.10.	[*] 

  

	3	LICENSE GRANT. OWNERSHIP AND ASSIGNMNT OF INTELLECTUAL PROPERTY 

  

	3.1.	 Subject to the terms and conditions of this Agreement and in furtherance of the Fugan Program Transfer, CBP will
grant GSK and its Affiliates on the Effective Date a worldwide, royalty-free, exclusive license (even as to CBP), with rights to sublicense, to all of CBP’s right, title, and interest (including worldwide rights and

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 8 of 28 

	 	
in all therapeutic areas and indications whether known or are subsequently discovered) in any and all Fugan Program, Fugan, and their related Background IP, including but not limited to IP, Know-how, data, clinical trial materials, manufacturing technologies and protocols, supply information, regulatory dossier and packages for the Development, registration, manufacture and Commercialization of the
Product, to enable GSK to Develop, manufacture, and Commercialize such Product. 

  

	3.2.	All Arising IP shall be owned solely by GSK. 

  

	3.3.	During the Term of this Agreement, upon GSK’s request, CBP shall assign and convey to GSK all of CBP’s right, title and interest in and to the Background IP without any further payment from GSK.

  

	3.4.	CBP shall provide necessary assistance as reasonably required by GSK to complete the registration of such license and assignment with relevant authorities. 

 

	4	MANUFACTURING & COMMERCIALIZATION 

  

	4.1.	GSK shall be solely responsible for, take all decisions in respect of and pay all costs of the manufacturing and Commercialization of the Products. CBP acknowledges that all decisions relating to the foregoing
activities shall be taken by GSK in its sole discretion and that GSK shall be entitled to have GSK Designated Party participate in the manufacture and Commercialization of Products as GSK may consider appropriate. 

 

	5	PAYMENT 

  

	5.1.	consideration of CBP’s obligations under this Agreement, GSK agrees to make certain payments to CBP as set out in Sections 5.2 and 5.3. 

 

	5.2.	GSK will make an upfront cash payment in a total amount of CNY [*] (the “Upfront Payment”) to CBP within sixty (60) days upon signing of this Agreement and receipt by GSK of an invoice issued by
CBP. 

  

	5.3.	GSK shall make milestone payments to CBP up to a maximum total amount of [*] ([*], “Milestone Payments”). Each Milestone Payment to CBP will be paid within [*] upon receipt by GSK of an invoice issued
by CBP upon achievement of each of the corresponding milestone events as follows; 

  

					
	 Milestone Events
	  	Amount (CNY)	 
	 [*]
	  	 	[*]	 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 9 of 28 

 For the avoidance of doubt, each of the above Milestone Payments shall be one-off payment payable by GSK with respect to the corresponding milestone event as set out above, regardless of whether such event would happen again for any other Product either in China or elsewhere in the world.

  

	5.4.	CBP will provide GSK a complete, accurate and audit-worthy invoice for Upfront Payment and each Milestone Payment. The Upfront Payment and the Milestone Payments will be paid by wire transfer to CBP’s account
provided herein. The bank account of CBP as designated herein shall be the sole and permanent bank account confirmed by CBP, and shall not be changed except for Force Majeure reasons. 

CBP’s bank information: 

Bank name: [*] 
 Account name: [*]

 Account number: [*] 
  

	5.5.	All amounts payable to CBP (including the Upfront Payment and Milestone Payments) are inclusive of any applicable tax (including any withhold tax) to which payments made by GSK are subject to, at the rate from time to
time prescribed by applicable law. CBP alone shall be responsible for paying any and all taxes levied on account of, or measured in whole or in part by reference to, any payment received by CBP. 

 

	6	EXCLUSIVITY 

  

	6.1.	During the Term, except for performance of its obligations hereunder, CBP shall not, by itself or through any Affiliate or third party, engage in any research and development activities directed towards the discovery,
Development, manufacture, or Commercialization of any Product or any pharmaceutical product incorporating Fugan. 

  

	7	MANAGEMENT OF IP AND KNOW HOW 

  

	7.1.	 In furtherance of Section 3.3, GSK shall have the exclusive right to prepare, file, prosecute and/or
maintain any protection for Arising IP at its own cost and expense. CBP agrees to and hereby does assign to GSK its right to file for patents for Arising IP in any country or region, including in the PRC. CBP will cooperate in the filing and
prosecution of patent applications for Arising IP. At GSK’s request, CBP will execute all necessary documents to effectuate the filing of patent applications related to Arising IP. At GSK’s request and expense, CBP will assist GSK in its
efforts to establish, perfect, and defend all IP rights relating to Arising IP, and execute any documents necessary to do the same (including 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 10 of 28 

	 	
assignments of rights, transfers, releases, affidavits, and declarations). CBP hereby designates GSK as its agent for, and grants to GSK a power of attorney with full power of substitution, which
power of attorney will be deemed coupled with an interest, for the purpose of effecting the foregoing provisions. 

  

	7.2.	Since the Effective Date, GSK shall be responsible for and shall undertake, and shall bear all costs and expenses in connection with, the filing, prosecution, maintenance and defense of the Background IP, provided
however that CBP shall provide necessary assistance as reasonably required by GSK before the date of assignment and conveyance of the Background IP to GSK in accordance with Section 3.2. 

 

	7.3.	Before ceasing to prosecute or maintain further in whole or in part any Background IP, GSK shall give at least [*] notice (“Abandonment Notice”) of its intention to CBP and shall offer CBP the right to
assume responsibility for the prosecution and maintenance of the IP in question. 

  

	7.4.	Each Party shall give the other Party immediate notice of any infringement of any Background IP by a third party which, subject to any obligation of confidentiality owed to a third party, comes to that Party’s
attention during the Term of this Agreement. 

  

	7.5.	If during the Term of this Agreement, any Party receives any notice, claim or proceedings from any third party alleging infringement of that third party’s intellectual property by reason of any Party’s
activities in relation to this Agreement or the use and exploitation of any Background IP, then the Party receiving that notice shall forthwith notify the other Party of the notice, claim or proceeding and shall be entitled to defend and settle such
claim or proceeding to the extent affecting the receiving Party, but shall not make any admission of liability on behalf of the other Party without that Party’s consent. 

 

	7.6.	GSK shall have the first right, but not the obligation, at its own cost to commence proceedings for infringement or misappropriation of any of the Background IP by a third party. 

 

	8	CONFIDENTIALITY 

  

	8.1.	Subject to the terms of this Section 8, neither Party shall, during the Term and for a period of [*] years thereafter, disclose the other Party’s Confidential Information to any third party, nor use the other
Party’s Confidential Information for any purpose other than for the purpose of performance of this Agreement. 

  

	8.2.	No Party will be in breach of any obligation under Section 8.1 in disclosing the Confidential Information to the extent that the Confidential Information: 

 

	 	(i)	is known to the Party making the disclosure before its receipt from the other Party, and not already subject to any obligation of confidentiality to the other Party; 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 11 of 28 

	 	(ii)	is or becomes publicly known without any breach of this Agreement or any other undertaking to keep it confidential; 

  

	 	(iii)	has been obtained by the Party making the disclosure from a third party in circumstances where the Party making the disclosure has no reason to believe that there has been a breach of an obligation of confidentiality
owed to the other Party; 

  

	 	(iv)	has been independently developed by the Party making the disclosure; 

  

	 	(v)	is disclosed pursuant to, and solely to the extent required to be disclosed to comply with, the requirement of any law or regulation or applicable listing rules or the order of any court of competent jurisdiction or any
relevant governmental or stock exchange authority, provided the Party required to make the disclosure provides the other Party with prior written notice of such requirement and the information required to be disclosed, takes reasonable actions to
avoid or minimize the extent of such disclosure, and, to the extent reasonably practicable, seeks protective and confidential treatment of the information to be disclosed; 

 

	 	(vi)	is disclosed on a confidential and need-to-know basis (on terms at least as protective as those set forth herein) to the investigators,
directors, officers, employees, Affiliates, permitted subcontractors, financial advisors, and attorneys of a Party; or 

  

	 	(vii)	is approved for release in writing by an authorized representative of the other Party. 

  

	8.3.	The Parties understand and acknowledge that CBP may possess certain information that are classified as state secrets of the PRC. CBP hereby covenants that it may not and shall not disclose to GSK any Confidential
Information in violation of the PRC laws and rules on the protection of state secrets. CBP shall indemnify GSK for any losses or penalties suffered due to CBP’s breach of the foregoing sentence. 

 

	8.4.	Neither CBP nor GSK will use the name, trade-name, or logo of the other Party or its Affiliates in any press release, publication, or product advertising, or for any other promotional purpose, nor disclose the existence
or terms of this Agreement without first obtaining the written consent of that Party. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 12 of 28 

	9	LIMITATION OF LIABILITY 

  

	9.1.	CBP warrants that, to the best of its knowledge and belief (having made reasonable inquiries with its employees involved in the Fugan Program or likely to have relevant knowledge, but not having made any search of any
public register), any advice or information given by it or any of its employees or any other persons engaged by CBP who work on the Fugan Program, or the content or use of any Background IP, Arising IP, or materials, works or information provided in
connection with the Fugan Program, will not constitute or result in any infringement of any third party rights. 

  

	9.2.	Except under the limited warranty in Section 9.1 and subject to Section 9.4, no Party accepts any responsibility for any use which may be made by the other Party of any Background IP or Arising IP, nor for any
reliance which may be placed by the other Party on any Background IP or Arising IP, nor for advice or information given in connection with any Background IP or Arising IP. 

 

	9.3.	Subject to Section 9.4, the liability of one Party to the other Party for any breach of this Agreement, any negligence of the other Party, or arising in any other way out of the subject matter of this Agreement,
the Background IP, the Arising IP will not extend to any indirect or consequential damages or losses, or any loss of profits, loss of revenue, loss of data, loss of contracts or opportunity, whether direct or indirect, even if the Party bringing the
claim has advised the other Party of the possibility of those losses, or if they were within the other Party’s contemplation. 

  

	9.4.	Nothing in this Agreement limits or excludes either Party’s liability for: 

  

	 	(i)	death or personal injury; 

  

	 	(ii)	any fraud, corruption or for any sort of liability that, by law, cannot be limited or excluded; or 

  

	 	(iii)	any loss or damage caused by a deliberate breach of this Agreement or a breach of Sections 3, 7 and 13. 

  

	9.5.	The only undertakings and warranties given by the Parties in this Agreement are those expressly contained in this Agreement. All other warranties, conditions, terms, undertakings and obligations, whether implied by
statute, principle of civil law, custom, trade usage, course of dealing or in any other way are hereby disclaimed by the Parties to the fullest extent permitted by law. 

 

	10	FORCE MAJEURE 

  

	10.1.	 If the performance by one Party of any of its obligations under this Agreement is delayed or prevented by
circumstances that are reasonably unforeseeable and 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 13 of 28 

	 	
are beyond its reasonable control (“Force Majeure”), that Party will not be in breach of this Agreement because of that delay in performance provided, provided that the Party
affected by the Force Majeure shall, within ten (10) days after its occurrence, give notice to the other Party stating the nature of the circumstances, its anticipated duration and any action being taken to avoid or minimize its effect. The
suspension of performance shall be of no greater scope and no longer duration than is reasonably required and the Party affected by the Force Majeure shall use its reasonable efforts to remedy its inability to perform. 

 

	11	TERM AND TERMINATION 

  

	11.1.	This Agreement begins on the Effective Date. Unless early terminated in accordance with Sections 2.8, 11 or 13, this Agreement shall continue in effect till each Party fulfils its rights and obligations hereunder.

  

	11.2.	GSK can terminate this Agreement at any time by [*] prior written notice to CBP after completion of the Evaluation. 

  

	11.3.	The Parties acknowledge and agree that (i) CBP’s obtaining of the TCM Approvals in accordance with Section 2.10, and (ii) the maintenance of the validity of CTA for Phase II and Phase III Clinical
Trials of the Product by CBP, are of vital importance to GSK in entering into this Agreement. In the event that (i) such TCM Approvals are not procured in accordance with Section 2.10, or (ii) the CTA for Phase II or Phase III
Clinical Trials are held invalid by any regulatory authorities, CBP shall promptly notify GSK in writing and GSK may terminate this Agreement by written notice to CBP within [*] after receiving the notice by CBP. 

 

	11.4.	Either Party may terminate this Agreement with immediate effect by written notice to the other Party if: 

  

	 	(i)	the other Party is in breach of any provision of this Agreement and (if it is capable of remedy) the breach has not been remedied within [*] after receipt of written notice specifying the breach and requiring its
remedy; or 

  

	 	(ii)	the other Party becomes insolvent, or if an order is made or a resolution is passed for its winding up (except mergers or reorganizations as part of a voluntary dissolution), or if an administrator, administrative
receiver or receiver is appointed over the whole or any part of that Party’s assets, or if that Party makes any arrangement with its creditors, or anything happens which is analogous to any of these matters. 

 

	 	(iii)	If there is a change in the legal or beneficial ownership of CBP or of its majority shareholders from the state existing at the Effective Date which GSK considers in its sole discretion to be significant, then GSK may
terminate this Agreement immediately by written notice. CBP agrees to give GSK notice in writing of any such change within [*] of it becoming effective. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 14 of 28 

	11.5.	Sections 1, 3, 6, 7, 8, 9, 11, 12, 13, 14 and 15, and other Sections required by their nature or terms to survive, will survive the expiration of the Term or the termination of this Agreement for any reason and will
continue indefinitely (unless the terms thereof expressly provide for a shorter survival period). 

  

	11.6.	Termination of this Agreement for whatever reason shall not affect the accrued rights of the Parties arising in any way out of this Agreement as at the date of termination or expiry and in particular but without
limitation the right to recover damages and interest. 

  

	12	WARRANTIES 

  

	12.1.	CBP warrants to GSK that: 

  

	 	(i)	its Background Knowledge and Licensed IP are free from all charges and encumbrances (including without limitation rights of any third party); 

 

	 	(ii)	it has conducted non-clinical studies and certain clinical researches in accordance with the applicable laws and regulations; 

 

	 	(iii)	it has obtained the CTA for Phase II and Phase III Clinical Trial of the Product in accordance with applicable laws and regulations, no misrepresentation or untrue, inaccurate or misleading statement or information is
made or provided in such application; 

  

	 	(iv)	all data, documents, materials and dossier provided by CBP hereunder, including but not limited to the data of laboratory study of the Product, are true, accurate, complete and legally obtained; 

 

	 	(v)	it will act with all due care and skill in implementing this Agreement, and that the CBP personnel involved in the Fugan Program have the requisite skills and experience to undertake the Fugan Program; and

  

	 	(vi)	it has complied and will comply with all applicable PRC laws and regulations in entering into and performing this Agreement (including without limitation the PRC Regulations on Traditional Chinese Medicine and the
Provisional Measures regarding Foreign-related Administration of Traditional Chinese Medicine and the execution, delivery and performance of this Agreement and the ancillary agreements referred to herein does not violate any applicable laws,
regulations or orders of the CBP’s regulatory authority, or violate or contravene any agreements or documents binding upon it. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 15 of 28 

	12.2.	CBP warrants to GSK that CBP is a company of legal person status duly organized and existing under PRC law, and has full power and authority under relevant laws and its constitutional documents, and has taken all
necessary actions and obtained all authorizations, licenses, consents and approvals on or prior to the Effective Date, to allow it to enter into this Agreement and to perform its obligations under this Agreement, and will maintain the validity of
all such authorizations, licenses, consents and approvals during the Term of this Agreement. 

  

	12.3.	Unless otherwise required or prohibited by law, the Parties warrant to each other, to the best of their knowledge, that in relation to the performance of this Agreement, they: 

 

	 	(i)	do not employ, engage or otherwise use any child labor in circumstances such that the tasks performed by any such child labor could reasonably be foreseen to cause either physical or emotional impairment to the
development of such child; 

  

	 	(ii)	do not use forced labor in any form (prison, indentured, bonded or otherwise) and its employees are not required to deposit papers or cash deposits before starting work; 

 

	 	(iii)	provide their employees a safe and healthy workplace, presenting no immediate hazards, housing that is safe for habitation, and access to clean water, food, and emergency healthcare in the event of accidents or
incidents in the workplace; 

  

	 	(iv)	do not discriminate against any employees on any ground (including race, religion, disability or gender). 

  

	 	(v)	do not engage in or support the use of corporal punishment, mental, physical, sexual or verbal abuse and do not use cruel or abusive disciplinary practices in the workplace; 

 

	 	(vi)	pay each employee at least the minimum wage, or a fair representation of the prevailing industry wage, (whichever is higher) and provide each employee with all legally mandated benefits; 

 

	 	(vii)	comply with the laws on working hours and employment rights in the countries in which they operate; and 

  

	 	(viii)	are respectful of their employees’ right to join and form independent trade unions and freedom of association. 

  

	12.4.	The Parties agree that they are responsible for controlling their own supply chain and that they shall encourage compliance with ethical standards and human rights by any subsequent supply of goods and services that are
used by the Parties when performing their obligations under this Agreement. 

  

	12.5.	The Parties will ensure that they have ethical and human rights policies and an appropriate complaints procedure to deal with any breaches of such policies. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 16 of 28 

	13	ANTI-CORRUPTION 

  

	13.1.	CBP acknowledges receipt of the “Prevention of Corruption - Third Party Guidelines” (set out in Schedule 3, the “Guidelines”) and agrees to perform its obligations under this Agreement, and to
cause the CBP personnel to perform this Agreement, all in accordance with the Guidelines (as amended from time to time and provided to CBP by GSK). 

  

	13.2.	CBP shall comply and shall cause the CBP personnel involved in performance of this Agreement to comply fully at all time with all applicable laws and regulations, including but not limited to applicable anti-corruption
laws, of the territory in which CBP conducts business with GSK. 

  

	13.3.	CBP agrees that it has not, and covenants that it will not, in connection with the performance of this Agreement, promise, authorise, ratify or offer to make, or take any act in furtherance of any payment or transfer of
anything of value, directly or indirectly: (i) to any individual including Government Officials (as defined below); or (ii) to an intermediary for payment to any individual including Government Officials; or (iii) to any political
party. It is the intent of Parties that no payments or transfers of value will be made, promised, authorised, ratified or offered with the purpose or effect of public or commercial bribery, acceptance of or acquiescence in extortion, kickbacks or
other unlawful or improper means of securing an improper advantage or obtaining or retaining business. 

 For the purpose of
this section “Government Official” means: (a) any officer or employee of a government or any department, agency or instrument of a government; (b) any person acting in an official capacity for or on behalf of a government or any
department, agency, or instrument of a government; (c) any officer or employee of a company or business owned in whole or part by a government; (d) any officer or employee of a public international organization such as the World Bank or
United Nations; (e) any officer or employee of a political party or any person acting in an official capacity on behalf of a political party; and/or (f) any candidate for political office. 

 

	13.4.	CBP will not contact, or otherwise meet with any Government Official with respect to any transactions required under this Agreement, without the prior written approval of GSK and, when requested by GSK, only in the
presence of a GSK designated representative. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 17 of 28 

	13.5.	CBP represents that it has not been convicted of or pleaded guilty to a criminal offence, including one involving fraud, corruption, or moral turpitude, that it is not now, to the best of their knowledge, the subject of
any government investigation for such offenses, and that it is not now listed by any government agency as debarred, suspended, proposed for suspension or debarment, or otherwise ineligible for government programs. 

 

	13.6.	CBP represents and warrants that except as disclosed in writing: (1) it does not have any interest which directly or indirectly conflicts with their proper and ethical performance of this Agreement; and (2) it
will maintain arms length relations with all third parties (including government officials) with which they deal for or on behalf of GSK or in performance of this Agreement. 

 

	13.7.	GSK will have the right during the term of this Agreement to conduct an investigation and audit of CBP to monitor compliance with the terms of this Section 13. CBP will cooperate fully with such investigation or
audit, the scope, method, nature and duration of which will be at the sole reasonable discretion of GSK. 

  

	13.8.	CBP will ensure that all transactions under this Agreement are properly and accurately recorded in all material respects on its books and records and each document upon which entries such books and records are based is
complete and accurate in all material respects. CBP must maintain a system of internal accounting controls reasonably designed to ensure that it maintains no
off-the-books accounts. 

  

	13.9.	CBP agrees that GSK may make full disclosure of information relating to a possible violation of the terms of this Agreement at any time and for any reason to any competent government bodies and its agencies, and to
whomsoever GSK determines in good faith has a legitimate need to know. 

  

	13.10.	GSK shall be entitled to terminate this Agreement immediately on written notice to CBP, if CBP fails to perform its obligations in accordance with this Section 13. CBP shall have no claim against GSK for
compensation for any loss of whatever nature by virtue of the termination of this Agreement in accordance with this Section 13. To the extent (and only to the extent) that the laws of the PRC provide for any such compensation to be paid to CBP
upon the termination of this Agreement, CBP hereby expressly agrees to waive (to the extent possible under laws of the PRC) or to repay to GSK any such compensation or indemnity. 

 

	14	INDEMNIFICATION 

  

	14.1.	CBP shall indemnify, defend and hold harmless GSK, its Affiliates, and its and their respective, directors, officers, employees and agents (collectively the “GSK Indemnified Party”) against any and all
claims, liabilities, losses, damages, costs or expenses, including reasonable attorneys’ fees, (collectively, “Losses”) incurred or suffered by the GSK Indemnified Party by reason of a claim brought by a third party to the
extent arising out of or caused by: 

  

	 	(i)	any warranty provided by CBP herein is or becomes untrue or inaccurate; 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 18 of 28 

	 	(ii)	the negligence, recklessness or misconduct of CBP or its Affiliates or any employees, officers, consultants or agents of either of the foregoing in connection with the Development of any Product and/or the Background
Knowledge or the Licensed IP; or 

  

	 	(iii)	the Development, distribution, marketing, promotion or sale of Products or the use of the Background Knowledge or the Licensed IP by GSK Indemnified Party. 

 

	14.2.	In the event that any GSK Indemnified Party intends to seek indemnification for any claim under Section 14.1, it shall inform CBP of the claim promptly after receiving notice of the claim and shall permit CBP to
direct and control the defense of the claim and shall provide such reasonable assistance as is reasonably requested by CBP (at CBP’s cost) in the defense of the claim provided that nothing in this Section 14.2 shall permit CBP to make any
admission on behalf of any GSK Indemnified Party, or to settle any claim or litigation which would impose any financial obligations on GSK or an GSK Indemnified Party without the prior written consent of GSK, such consent not to be unreasonably
withheld or delayed. 

  

	14.3.	GSK shall indemnify, defend and hold harmless CBP, its Affiliates, and its and their respective, directors, officers, employees and agents (collectively the “CBP Indemnified Party”) against any and all
Losses incurred or suffered by the CBP Indemnified Party by reason of a claim brought by a third party to the extent arising out of or caused by: 

  

	 	(i)	any warranty provided by GSK herein is or becomes untrue or inaccurate; or 

  

	 	(ii)	the willful misconduct of GSK or its Affiliates or any employees, officers, consultants or agents of either of the foregoing in connection with undertaking Phase II or Phase III Clinical Trial. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 19 of 28 

	15	GENERAL 

  

	15.1.	Notices: Any notice to be given under this Agreement must be in writing, may be delivered by one Party to the other Party by any of the methods set out in the left hand column below, and will be deemed to be
received on the corresponding day set out in the right hand column: 

  

			
	Method of service	  	Deemed day of receipt
		
	By hand	  	the day of delivery
		
	By courier	  	the second Business Day after posting
		
	By recorded delivery post	  	the third Business Day after posting
		
	By fax (provided the sender’s fax machine confirms complete and error-free transmission of that notice to the correct fax number)	  	the next Business Day after sending or, if sent before 16:00 (sender’s local time), on the day it was sent

 The Parties’ respective representatives for the receipt of notices are, until changed by written
notice given in accordance with this Section, as follows: 
  

			
	For CBP:	  	For GSK:
		
	 Name:
 Address:
	  	 Name: [*]
 Address: Building 3, 898 Halei
Road,
 Zhangjiang Hi-Tech Park, Pudong, Shanghai 201203, China

		
	610041	  	
		
	Email: [*]	  	Email: [*]

  

	15.2.	Headings: The headings in this Agreement are for ease of reference only; they do not affect the construction or interpretation of this Agreement. 

 

	15.3.	 Subcontracting: It is recognized that each Party may engage or use any third party subcontractors
(including contract research organizations) to perform any of its obligations under this Agreement. Any third party subcontractor engaged to perform obligations of a Party (the “Subcontracting Party”) in this Agreement shall have
sufficient expertise to meet the qualifications typically required by such Subcontracting Party for the performance of work similar in scope and complexity to the subcontracted activity. The Subcontracting Party shall remain liable for, and
obligated to, perform all of its obligations under this Agreement and shall be liable for the performance of, and any acts, omissions or breaches by, each of its subcontractors. A Subcontracting Party shall be responsible for ensuring compliance by
its third party subcontractors, if any, with all the terms of this Agreement, including without limitation obligations of confidentiality. Further, the 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 20 of 28 

	 	
Subcontracting Party shall ensure in any subcontracting arrangement that GSK obtains sole ownership of all inventions, data and related Intellectual Property rights made or developed by such
third party subcontractor relating to the Products. 

  

	15.4.	Assignment: 

  

	 	(i)	CBP agrees that it will not assign the whole or any part of this Agreement without GSK’s prior consent in writing. 

  

	 	(ii)	GSK shall subject to its issuing a written notice to the CBP to assign its rights and obligations hereunder to any Affiliate of it or to any successor in title to the whole or any part of its business.

  

	15.5.	Illegal/unenforceable Sections: If the whole or any part of any Section of this Agreement is void or unenforceable in any jurisdiction, the other Sections of this Agreement, and the rest of the void or
unenforceable Section, will continue in force in that jurisdiction, and the validity and enforceability of that Section in any other jurisdiction will not be affected. 

 

	15.6.	Waiver of rights: If one Party fails to enforce, or delays in enforcing, an obligation of the other Party, or fails to exercise, or delays in exercising, a right under this Agreement, that failure or delay will
not affect its right to enforce that obligation or constitute a waiver of that right. Any waiver of any Section of this Agreement will not, unless expressly stated to the contrary, constitute a waiver of that Section on a future occasion.

  

	15.7.	No agency: Nothing in this Agreement creates, implies or evidences any partnership or joint venture between the Parties, or the relationship between them of principal and agent. Neither Party has any authority to
make any representation or commitment, or to incur any liability, on behalf of the other Party. 

  

	15.8.	Entire agreement: This Agreement constitutes the entire agreement between the Parties relating to its subject matter. Each Party acknowledges that it has not entered into this Agreement on the basis of any
warranty, representation, statement, agreement or undertaking except those expressly set out in this Agreement. Each Party waives any claim for breach of this Agreement, or any right to rescind this Agreement in respect of, any representation which
is not an express Section of this Agreement. However, this Section does not exclude any liability which either Party may have to the other Party (or any right which any Party may have to rescind this Agreement) in respect of any fraudulent
misrepresentation or fraudulent concealment before signing this Agreement. 

  

	15.9.	Formalities: Each Party will take any action and execute any document reasonably required by the other Party to give effect to any of its rights under this Agreement, or to enable their registration in any
relevant territory provided the requesting Party pays the other Party’s reasonable expenses. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 21 of 28 

	15.10.	Amendments: No variation or amendment of this Agreement will be effective unless it is made in writing and signed by each Party’s representative. 

 

	15.11.	Language: This Agreement shall be written in both English and Chinese. Both language versions shall have equal validity and effect. In the event of any discrepancy between the two language versions, the English
version shall prevail. 

  

	15.12.	Governing law: This Agreement is governed by, and is to be interpreted in accordance with the laws of the PRC without regard to its principles of conflicts of law. 

 

	15.13.	Dispute resolution:  

  

	 	(i)	Any dispute, controversy or claim arising from or in connection with this Agreement, including any question regarding its existence, validity or termination (“Dispute”), must be resolved in the first
instance through consultation between senior officers of CBP and GSK (or their respective nominees). If, within thirty (30) days following the date of the first written notification of the existence of a Dispute by one Party to the other Party,
the Dispute cannot be resolved, the Dispute must be submitted to arbitration in accordance with the remaining Sections of this Section 15.13. 

  

	 	(ii)	Any Dispute not resolved must be submitted to the China International Economic and Trade Arbitration Commission (“CIETAC”) for arbitration which must be conducted in accordance with CIETAC’s arbitration
rules in force as at the date of applying for arbitration. The seat of the arbitration will be Shanghai. 

  

	 	(iii)	There will be three arbitrators. Each of GSK and CBP must appoint one arbitrator. The third arbitrator must be appointed by the other two appointed arbitrators. If a Party does not appoint an arbitrator who has
consented to act within thirty (30) days after the notice of arbitration or if a third arbitrator has not been appointed who has consented to act within forty five (45) days after the notice of arbitration, then the relevant appointment
must be made by the Secretary General of CIETAC. 

  

	 	(iv)	The arbitration proceedings will be conducted in Chinese. 

  

	 	(v)	 The award of the arbitration tribunal will be final and binding upon the Parties. By agreeing to arbitration
under this Section 15.13, the Parties irrevocably waive their right to any form of appeal, review or recourse to any state or court or other judicial authority, insofar as this waiver can be validly given. Any award may be enforced by any court
of competent 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 22 of 28 

	 	
jurisdiction. Each Party expressly waives all rights to object to any proceedings related to arbitration, the enforcement of arbitration or any other arbitral or judicial proceedings including
any defense of sovereign immunity and any other defense based on the fact or allegation that it is an agency or instrumentality of a sovereign state or any department thereof or an entity affiliated to a sovereign state or any department thereof.

  

	 	(vi)	Without prejudice to the Parties’ agreement to arbitrate as set forth in this Section 15.13, any Party has the right to seek preservation of property, preservation of evidence, interim injunctive relief,
provisional rulings or other interim relief or procedural assistance from a court of competent jurisdiction, both before and after the arbitral tribunal has been appointed, at anytime up until the arbitral tribunal has made its final award.

  

	 	(vii)	The costs of arbitration must be borne by the losing Party, unless otherwise decided by the arbitration award. 

  

	15.14.	Execution: This Agreement is made in four (4) copies. CBP shall keep three (3) copy and GSK shall keep one (1) copy. 

[The remainder of this page intentionally left blank; the signature page follows.] 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 23 of 28 

									
	SIGNED for and on behalf of CBP:	 		 	SIGNED for and on behalf of GSK:
					
	Signature:	 	 /s/ [ILLEGIBLE]
	 		 	Signature:	 	 /s/ Patrick Vallance

					
	Name:	 	 [ILLEGIBLE]
	 		 	Name:	 	 Patrick Vallance

					
	Position:	 	 [ILLEGIBLE]
	 		 	Position:	 	 President Pharmaceuticals R&D 3rd July
2013

					
	Seal	 		 		 	Seal	 	

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 24 of 28 

 Schedule 1 

Fugan Program Transfer 
  

	I.	CBP will deliver Fugan Program Transfer within [*] on Effective Date. 

  

	II.	Following the Fugan Program Transfer, GSK will perform the following tests to verify Fugan and its property to complete the Fugan Program Transfer: 

 

	 	•	 	[*] 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 25 of 28 

 Schedule 2 

GSK Evaluation and Criteria 
  

	•	 	[*] 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 26 of 28 

 Schedule 3 

PREVENTION OF CORRUPTION - THIRD PARTY GUIDELINES 
  

	•	 	The GSK Corporate Policy 007 on Preventing Corrupt Practice and Maintaining Standards of Documentation (“GSK Policy 007”) requires compliance with the highest ethical standards and all anti-corruption
laws applicable in the countries in which GSK (whether through a third party or otherwise) conducts business. GSK Policy 007 requires all GSK employees and any third party acting for or on behalf of GSK to ensure that all dealings with third
parties, both in the private and government sectors, are carried out in compliance with all relevant laws and regulations and with the standards of integrity required for all GSK business. GSK values integrity and transparency and has zero tolerance
for corrupt activities of any kind, whether committed by GSK employees, officers, or third-parties acting for or on behalf of the GSK. 

  

	•	 	Corrupt Payments - GSK employees and any third party acting for or on behalf of GSK, shall not, directly or indirectly, promise, authorize, ratify or offer to make or make any “payments” of
“anything of value” (as defined in the glossary section) to any individual (or at the request of any individual) including a “government official” (as defined in the glossary section) for the improper purpose of influencing or
inducing or as a reward for any act, omission or decision to secure an improper advantage or to improperly assist the company in obtaining or retaining business. 

  

	•	 	Government Officials - Although GSK’s policy prohibits payments by GSK or third parties acting for or on its behalf to any individual, private or public, as a “quid pro quo” for business, due to
the existence of specific anticorruption laws in the countries where we operate, this policy is particularly applicable to “payments” of “anything of value” (as defined in the glossary section), or at the request of,
“government officials” (as defined in the glossary section). 

  

	•	 	Facilitating Payments - For the avoidance of doubt, facilitating payments (otherwise known as “greasing payments” and defined as payments to an individual to secure or expedite the performance of a
routine government action by government officials) are no exception to the general rule and therefore prohibited. 

 GLOSSARY 

The terms defined herein should be construed broadly to give effect to the letter and spirit of the GSK Policy 007. GSK is committed to the highest ethical
standards of business dealings and any acts that create the appearance of promising, offering, giving or authorizing payments prohibited by this policy will not be tolerated. 

Anything of Value: this term includes cash or cash equivalents, gifts, services, employment offers, loans, travel expenses, entertainment, political
contributions, charitable donations, subsidies, per diem payments, sponsorships, honoraria or Section of any other asset, even if nominal in value. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 27 of 28 

 Payments: this term refers to and includes any direct or indirect offers to pay, promises to pay,
authorizations of or payments of anything of value. 
 Government Official shall mean: 

 

	•	 	Any officer or employee of a government or any department, agency or instrument of a government; 

  

	•	 	Any person acting in an official capacity for or on behalf of a government or any department, agency, or instrument of a government; 

 

	•	 	Any officer or employee of a company or business owned in whole or part by a government; 

  

	•	 	Any officer or employee of a public international organization such as the World Bank or United Nations; 

  

	•	 	Any officer or employee of a political party or any person acting in an official capacity on behalf of a political party; 

  

	•	 	Any candidate for political office; and/or 

  

	•	 	In many countries in which GSK conducts business, doctors and other healthcare providers may qualify as government officials because it is either (i) employed by a government-owned or funded hospital, clinic,
university or other entity and/or (ii) receive funding, professional service fees or other remuneration from a government-owned or funded hospital, clinic, university or other entity. 

  
 [*] = Certain confidential information
contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

Page 28 of 28

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