Document:

cday-ex103_92.htm

Exhibit 10.3

SEPARATION and CONSULTING AGREEMENT 

THIS AGREEMENT made as of the 7th day of August, 2018 (the “Effective Date”).

AMONG:

CERIDIAN CANADA LTD. (“Ceridian Canada”)
and CERIDIAN HCM HOLDING INC. (“Ceridian Holding”)   
- and -

PAUL ELLIOTT
(hereinafter “Elliott”)

WHEREAS:

A.Ceridian Canada is a corporation incorporated pursuant to the federal laws of Canada, carrying on business in Canada of providing human capital management software and services;

B.Ceridian Holding is a Delaware corporation and the indirect parent company of Ceridian Canada;

C.Elliott is currently President and Chief Operating Officer (“COO”) of Ceridian Canada, Ceridian Holding and certain other affiliates of Ceridian Holding (Ceridian Canada, Ceridian Holding and their respective affiliates are collectively referred to as “Ceridian”);  

D.Ceridian and Elliott have mutually agreed that Elliott’s employment with Ceridian will change as follows:

	
 
	
1. 
	
effective as of the Effective Date, Elliott will no longer be the President, but will remain as Ceridian’s COO until the Employment Separation Date (as defined below); and

	
 
	
2.
	
from and after the Employment Separation Date, Elliott will cease to be an employee of Ceridian, but will continue providing Consulting Services (as defined below) during the Consulting Term (as defined below);

THEREFORE, in consideration of the mutual covenants and agreements hereinafter contained to be performed, the parties agree as follows:

Section 1.Definitions

1.01As used in this Agreement:

	
 
	
(a)
	
“Agreement” means this Agreement and any schedules hereto, as may be amended in writing by both parties;

	
 
	
(b)
	
“Confidential Information” means any information identified by Ceridian or a Customer as “Confidential” and/or “Proprietary”, or which, under the circumstances, ought to be treated as confidential or proprietary including, without limitation, non-public information related to Ceridian or the Customer’s business (as the case may be), employees, service methods, software, documentation, financial information, prices and product plans, whether in written, verbal, or electronic form, but does not include information which Elliott can establish: (i) has become generally available to the public other than as a result of a breach of the Agreement by Elliott or any third party to whom Elliott has disclosed same; (ii) was disclosed to Elliott on a non-confidential basis by a third party who did not owe an obligation of confidence to Ceridian or a Customer (as the case may be) with respect to the disclosed information; or (iii) was known by Elliott prior to its receipt from Ceridian or a Customer (as the case may be), as evidenced by written document;

	
 
	
(c)
	
“Consulting Services” means general business consultation services to be provided by Elliott hereunder as may be requested from time to time by Ceridian during the Consulting Term, and in 

	
 
		
particular (but without limitation) with respect to the operations and customer support areas of the business;

	
 
	
(d)
	
“Consulting Term” means period of time from the Employment Separation Date to and including June 30, 2020;

	
 
	
(e)
	
“Customer(s)” means any party who has entered into an agreement with Ceridian for the supply by Ceridian of products or services, or any party with whom Ceridian is actively engaged in an effort to enter into such agreement;

	
 
	
(f)
	
“Employment Agreement” means the written employment agreement entered into between Elliott and Ceridian Canada dated April 20, 2016;

	
 
	
(a)
	
“Employment Laws” means the Income Tax Act (Canada), the Canada Pension Plan Act, the Employment Insurance Act (Canada) and any other federal, provincial or municipal legislation now or hereafter in existence applicable to the relationship between employees and employers;

	
 
	
(b)
	
“Employment Separation Date” means the day on which Elliott’s employment with Ceridian ceases, as contemplated in Section 2.01 below;

	
 
	
(c)
	
“Personal Information” means information about an identifiable individual or allowing an individual to be identified, including any information relating to the employees of Ceridian or a Customer;

	
 
	
(d)
	
“Restrictive Covenants” means collectively the following:

	
 
	
(i)
	
the Non-Competition, Non-Recruitment, and Non-Disparagement provisions stated at Sections 7.02, 7.03, and 7.04 of the Employment Agreement; and

	
 
	
(ii)
	
the Non-Competition, No-Hire and Non- Solicitation Restrictions as stated in the Plans (as defined below) and / or the corresponding written Notice(s) of Option Grant under which any Stock Options were granted to Elliott;

	
 
	
(e)
	
“Stock Options” means those outstanding stock option awards granted to Elliott as identified in written option grant notice(s), issued under the 2013 Ceridian HCM Holding Inc. Stock Incentive Plan, as may have been amended from time to time (the “2013 Plan”), and the Ceridian HCM Holding Inc. 2018 Equity Incentive Plan, as may be amended (the “2018 Plan”, the 2013 Plan and 2018 Plan are collectively referred to herein as the “Plans”); and

	
 
	
(f)
	
“Work Product" means models, devices, reports, computer programs, tooling, schematics and other diagrams, instructional materials, and anything else Elliott produces in the course of providing the Consulting Services.

Section 2.Change in Roles and Responsibilities; Separation from Ceridian

2.01The parties agree that:

	
 
	
(a)
	
as of the Effective Date, Elliott shall no longer be the President of Ceridian, and shall thereafter only have responsibility for performing his roles and responsibilities as COO of Ceridian; and

	
 
	
(b)
	
as of May 1, 2019 (“Employment Separation Date”), Elliott’s employment with Ceridian will cease, and thereafter Elliott shall continue performing services for Ceridian solely as consultant and independent contractor, on and subject to the terms set forth in Section 5 below. 

Elliott hereby confirms that he has had adequate opportunity to ask Ceridian any questions regarding this Agreement and to discuss this Agreement with his financial and legal advisors, and any other persons he wished to consult (subject to the confidentiality obligations contained herein).  Elliott further agrees that he has voluntarily decided to become a party to this Agreement, and understands it will be effective when it is executed by him.  In order to receive all of the benefits of this Agreement, Elliott must execute the Release of Claims attached hereto as Schedule A on or after the Employment Separation Date, which covers the 

period from the date of his execution of this Agreement until the Employment Separation Date (“Additional Release”).  Regardless of whether or not this Agreement is executed, Elliott will be paid all salary or wages, vested and unused paid days off, and all other amounts to which he is entitled to by law accrued and owing as at the Employment Separation Date, less all legally required or authorized withholding.  

2.02Provided Elliott executes and delivers to Ceridian the Additional Release as contemplated in Section 2.01 above, Ceridian will pay Elliott an aggregate sum in the amount of Nine Hundred and Fifty Thousand Canadian Dollars ($950,000.00 CAD), less applicable income tax and any and all wage-related withholdings and deductions required by law.  Such amount will be paid in one lump sum payment within Ten (10) Business Days of receipt of the Additional Release signed by Elliott as contemplated in Section 2.01 above.

2.03If and to the extent the Ceridian Board of Directors approves a bonus payout to employees under Ceridian’s Management Incentive Plan in respect of the calendar year 2019, Elliott will be entitled to receive a prorated portion of such bonus compensation to which he would have otherwise become entitled for the 2019 fiscal year, calculated by multiplying such bonus compensation by a fraction, the numerator of which is the number of days from January 1, 2019 through to and including the Employment Separation Date, and the denominator of which is 365.  Any such bonus amount will be paid to Elliott at the same rate as the bonus achievement and payout percentage, and will be paid at the same time as, payments under the plan are made to other Ceridian employees.  For the avoidance of doubt, Elliott will be entitled to receive the full amount of Ceridian’s Management Incentive Plan in respect of the calendar year 2018 (if and to the extent approved of by the Ceridian Board of Directors) in accordance with the terms of such plans and his Employment Agreement.

2.04Ceridian will reimburse Elliott for reasonable executive-level outplacement and transition services (not to exceed $12,000 CAD.  This benefit cease on the earlier of: (a) when Elliott accepts an offer of employment from a third party; or (b) the first anniversary of the Employment Separation Date.  Elliott may receive career transition services through his preferred provider of such service.

2.05All issued and outstanding Stock Options granted to Elliott will be handled in accordance with the terms of the Plans, as applicable, and the option agreements governing such Stock Options and underlying shares.

2.06All health, dental and other benefit plans in which Elliott and any of his dependents are currently enrolled will terminate at midnight on the anniversary of his Employment Separation Date.

2.07All business travel accident, accidental death and dismemberment insurance, short-term and long-term disability, and other insurance coverage to which Elliott has been entitled as a Ceridian employee, will terminate at midnight on the Employment Separation Date.

2.08Other than as explicitly set forth in this Agreement, the consideration and other benefits as set forth in this Section 2 will constitute the full amount of monies and other consideration to be paid to Elliott by Ceridian with respect to and in connection with the termination of his employment, including but not limited to (i) any amounts under Ceridian’s incentive or bonus programs for periods completed prior to or following the Separation Date, (ii) any amounts under the Employment Agreement, and (iii) any amounts owing or claimed to be owing to Elliott pursuant to the terms of any other compensation arrangement to which he was subject during the term of his employment with Ceridian.

Section 3.Engagement of Elliott as a Consultant

3.01Provided Elliott signs Attachment A following his Employment Separation Date, then Ceridian agrees to engage Elliott as an independent contractor to perform the Consulting Services, and Elliott agrees to make himself reasonably accessible and available to Ceridian throughout the Consulting Term, on an independent 

contractor/consulting basis to provide the Consulting Services as may be requested from time to time by Ceridian. 

3.02As consideration for the Consulting Services to be provided and as Elliot will continue to be providing services to Ceridian without interruption following the Employment Separation Date, Elliott will be permitted to keep his existing Stock Options, which Options shall continue under the same terms and conditions as provided under the Plans, as applicable, and the option agreements governing such Stock Options and underlying shares.  Elliott’s Stock Options shall continue to vest until the earlier of:

	
 
	
(a)
	
the expiration of the Consulting Term; or

	
 
	
(b)
	
the earlier termination of this Agreement in accordance with the written terms hereof. 

However, and for the avoidance of doubt, in the event Elliott breaches any term of this Agreement (including without limitation, his obligations as set forth in Section 3.06 or Section 6,  then in addition to any other rights or remedies Ceridian may have at law or in equity, the Consulting Services shall automatically terminate, this Section 3 shall become null and void, all Stock Options will be handled solely in accordance with the original terms of the Plans, as applicable,  and the option agreements governing such Stock Options and underlying shares, and any Stock Options which may have vested during the Consulting Term shall immediately be forfeited.

3.03The only consideration to which Elliott will be entitled for providing the Consulting Services is his ongoing rights to the Stock Options as set forth in Section 3.02 above.  However, and for the avoidance of doubt, Ceridian shall reimburse Elliott for responsible and demonstrable expenses directly incurred in carrying out his responsibilities under this Agreement, which may include, by way of example only, reasonable travel expenses.  Elliott shall not have the authority to charge any expenses to Ceridian without its prior approval, nor to execute any contracts or other documents on Ceridian’s behalf.

3.04During the Consulting Term, Elliott will be subject to the Restrictive Covenants.

3.05In addition to the obligations set forth herein, Elliott shall comply at all times with Ceridian’s security procedures in effect from time to time, as well as the terms and conditions of all Ceridian written policies, including without limitation, the following if and/or as applicable (copies of which Elliott acknowledges having been provided to him or made available to him):

Ceridian Code of Conduct
Privacy Policy
Security Standards / Requirements
Travel Policy

3.06Elliott shall not, either during the course of the Consulting Term or thereafter, for any reason whatsoever, directly or indirectly:

	
 
	
(a)
	
disclose any Confidential Information to any person, firm or corporation other than for the purposes of providing the Consulting Services, and as authorized by Ceridian or the Customer (as the case may be) in advance; or

	
 
	
(b)
	
use for Elliott’s own purpose, or for any purpose other than that of providing the Consulting Services, any Confidential Information which he acquires through his involvement with Ceridian or a Customer and through his contact which any person, firm or corporation affiliated with Ceridian or a Customer.

At all times Elliott shall act bona fide and in the best interests of Ceridian and the Customers.

3.07Notwithstanding anything to the contrary, the Consulting Services may be terminated:

	
 
	
(a)
	
by Ceridian Canada for Cause (as that term is defined in the Employment Agreement), at any time during the Consulting Term without notice or pay in lieu thereof;

	
 
	
(b)
	
by Elliott, without Cause, by giving Ceridian Canada thirty (30) days advance written notice.

For the avoidance of doubt, to the extent Ceridian Canada is able to show Cause, Elliott shall be considered to have breached the Agreement for the purposes of Section 3.02.  The Consulting Services shall also terminate 

without notice or pay in lieu thereof in case of the death of Elliott, or by reason of illness or accident whereby Elliott is incapable of carrying out the terms and conditions of this Agreement for one (1) month, or upon the bankruptcy of either party.

3.08On termination of this Consulting Services, Elliott shall:

	
 
	
(a)
	
forthwith deliver up all documents, papers, plans, materials and other property of or relating to the affairs of Ceridian and any Customers which may then be in his possession or under his control; and

	
 
	
(b)
	
immediately cease making any representation that he is associated with Ceridian or any Customers.

3.09Elliott represents that he is and will at all times throughout the Consulting Term comply with all applicable legislation relating to privacy and the collection, use and disclosure of Personal Information.

3.10During the Consulting Term, Elliott will not be an employee of Ceridian Canada or any other Ceridian entity, and will be considered an independent contractor, and accordingly Employment Laws will not apply to Elliott at any point during the term of the Consulting Services.  Ceridian is interested only in the results obtained by Elliott who retains sole control of the manner and means of performing the Consulting Services, subject to its specific terms and conditions, and provided that he maintains standards generally accepted in the industry for such services.  

3.11All Work Product will belong to Ceridian, and Elliott will deliver all Work Product to Ceridian upon the earlier of the expiration/termination of the Consulting Services or Ceridian's request. Elliott will promptly disclose to Ceridian any works of authorship, including drawings, designs, plans, specifications, notebooks, tape recordings, computer programs, computer output, models, tracings, schematics, photographs, reports, findings, recommendations, educational materials, data and memoranda of every description and anything else Elliott produces in connection with the Consulting Services, and Elliott hereby assigns to Ceridian all copyrights in such works.  To the extent permitted by law, Elliott waives any moral rights, such as the right to be named as author, the right to modify, the right to prevent mutilation and the right to prevent commercial exploitation, whether arising under the Berne Convention or otherwise.  Elliott will sign any necessary documents and will otherwise assist Ceridian, at Ceridian’s expense, in registering Ceridian’s copyrights and otherwise protecting Ceridian’s rights in such works in any country.  Ceridian will own all patents, copyrights or trade secrets covering such materials and will have full rights to use the materials without claim on the part of Elliott for additional compensation. Elliott will not use any pre-existing intellectual property including any trade secret, invention, work of authorship, mask work or protectable design that has already been conceived or developed by anyone other than Ceridian in connection with the Consulting Services unless Elliott has the right to use it for Ceridian’s benefit.

Section 4.Release of Claims Against Ceridian; Waivers

4.01In consideration of the terms and conditions of this Agreement, Elliott hereby fully and completely releases and discharges Ceridian, and all present and former subsidiaries, parents and affiliated corporations, and all of their respective directors, officers, agents, employees, trustees, insurers, attorneys, employee benefit plans and their fiduciaries, and each of their successors and assigns (collectively, the “Released Parties”), from any and all claims, complaints, agreements, obligations, demands and causes of action which he has or may have and which are known or unknown, arising out of any actions, conduct, decisions, behavior or events occurring up to the date of execution of this Agreement or in any way connected with his employment relationship with Ceridian, his separation from employment from Ceridian, or his entering into this Agreement. Elliott further understands that he must execute the Additional Release upon or after the Employment Separation Date in order to receive all of the benefits of this Agreement, including without limitation, being engaged as a consultant for the Consulting Term (and accordingly the benefit of further Stock Options potentially vesting).  This Agreement, and the release of claims it contains, specifically covers, but is not limited to, any and all claims, complaints, causes of action or demands that Elliott has or may have against the Released Parties relating in any way to the terms, conditions and circumstances of his employment up to and including the date of his signature below, whether based on statutory or common law, for employment 

discrimination or other violations of law, or any state’s human rights act, including but not limited to claims under the Employment Standards Act or the Human Rights Act.

Section 5.Re-Affirmation and Acknowledgement of Prior Restrictive Covenants

5.01As partial consideration for Ceridian entering into the Employment Agreement, and in consideration of Ceridian granting Elliott the Stock Options, Elliott voluntarily signed and agreed to the Restrictive Covenants.  In this regard, Elliott hereby re-affirms the validity and enforceability of the Restrictive Covenants, and agrees that such terms remain in full force and effect following execution of this Agreement.  Elliott further agrees never to seek to argue or assert that the Restrictive Covenants are not enforceable against him.

5.02In addition to the Restrictive Covenants, Elliott further agrees as follows:

	
 
	
(a)
	
not to intentionally make, cause or attempt to cause any other person to make, any statements, either written or oral, or convey any information about Ceridian that is disparaging or reflects negatively upon Ceridian; and

	
 
	
(b)
	
to provide, at Ceridian’s reasonable request, and for no additional consideration, reasonable assistance and cooperation with respect to any legal matter involving Ceridian, including without limitation, any litigation and/or any business matter related to his position, function or responsibilities during his employment with Ceridian or while providing Consulting Services to Ceridian; provided however that in the event the assistance and cooperation requested by Ceridian requires him to incur costs or expend monies, or otherwise results in a material financial cost, Ceridian will reimburse or otherwise compensate Elliott for the reasonable amount of such costs or expended monies.

Section 6.Miscellaneous Provisions

6.01Except to the extent the Employment Agreement is amended by this Agreement and continues in force until the Employment Separation Date:

	
 
	
(a)
	
any and all previous agreements, written or oral, between the parties or on their behalf relating to the employment (or cessation of employment) by Ceridian of Elliott, are hereby terminated and cancelled; and

	
 
	
(b)
	
this Agreement will constitute the whole agreement between the parties with respect to Ceridian’s engagement of Elliott as an independent contractor to provide the Consulting Services from and after the Employment Separation Date, and any and all previous agreements, written or oral, between the parties or on their behalf relating to the Consulting Services are hereby terminated and cancelled,

and each of the parties releases and forever discharges the other of and from all manner of actions, causes of action, claims and demands whatsoever under or in respect of any such prior agreements. No modifications, amendments or variations of the Agreement shall be effective or binding unless agreed to in writing and properly executed by the parties.

6.02This Agreement shall not be assignable by Elliott except by the written consent of Ceridian, and Elliott covenants and agrees that the Consulting Services shall be performed by him personally throughout the term of this Agreement.

6.03It is understood and agreed that either party may waive any provision of this Agreement intended for such party’s sole benefit, but it is further agreed that any waiver of the performance of any condition by the other party shall not constitute a continuing waiver of any other or subsequent default, but shall include only the particular breach or default so waived.

6.04If any covenant or agreement herein is determined to be void or unenforceable in whole or in part, it shall not be deemed to affect or impair the enforceability or validity of any other covenant or agreement of this Agreement or any part thereof, and any such covenant or agreement may be severed from this Agreement without affecting the remainder of the Agreement.

6.05This Agreement shall be governed by, construed and enforced in accordance with the laws of the Province of Ontario and all federal laws applicable therein.

6.06This Agreement was prepared by the solicitors for Ceridian.  Elliott represents by signing this Agreement that he has been given the full opportunity to obtain such independent legal and other advice as required to allow him to enter this Agreement, and accordingly the Agreement shall not be construed in favor of or against either party by reason of or to the extent to which any party or its legal counsel participated in its preparation.

IN WITNESS WHEREOF this Agreement has been duly executed by the parties as of the date written above.

 

	
 
	
CERIDIAN CANADA LTD.
	
	
 
	
 
	
	
 
	
Per:
	
 
	
/s/ Scott Kitching

	
 
	
 
	
 
	
 

	
 
	
Name:
	
 
	
Scott Kitching

	
 
	
Title:
	
 
	
EVP and General Counsel

	
 
	
I have the authority to bind the company
	
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
CERIDIAN HCM HOLDING INC.
	
	
 
	
 
	
 
	
 

	
 
	
Per:
	
 
	
/s/ Scott Kitching

	
 
	
Name:
	
 
	
Scott Kitching

	
 
	
Title:
	
 
	
EVP and General Counsel

	
 
	
I have the authority to bind the company
	
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
)
	
 
	
 

	
 
	
)
	
 
	
 

	
 
	
)
	
 
	
 

	
 
	
)
	
 
	
/s/ Paul Elliott

	
Witness Signature
	
 
	
 
	
PAUL ELLIOTT

	
Print Name:
	
 
	
 
	
 

	
 
	
 
	
 
	
 

 

 

SCHEDULE A

RELEASE

I, Paul Elliott, for the consideration of the amounts set out in the written agreement titled “Separation Agreement, Release and Consulting Agreement” made amongst the undersigned, Ceridian Canada Ltd. (“Ceridian Canada”) and Ceridian HCM Holding Inc. (“Ceridian Holding”), with an effective date of August 7, 2018, and other good and valuable consideration, the receipt and sufficiency of which is hereby expressly acknowledged, do hereby remise, release and forever discharge Ceridian Holding, Ceridian Canada, and all of their respective affiliates, officers, directors, employees and agents (hereinafter collectively referred to as the “Releasees”) of and from all actions, causes of action, debts, demands, dues, bonds, accounts, covenants, contracts and claims whatsoever which I ever had, now have or which I can, shall or may hereafter have for or by reason of any cause, matter or thing whatsoever existing up to the present time, including without limiting the generality of the foregoing any actions, causes of action, suits, debts, demands, or claims relating to my employment or the termination of my employment with any of the Releasees.  I also agree not to make any claim or take any proceedings in respect of the claims released against any person, corporation or other entity who or which might claim contribution or indemnity from the Releasees.

I hereby specifically covenant, represent and warrant to the Releasees that I have no further claim against the Releasees for or arising out of my employment or cessation of employment which specifically includes any claims for notice of termination, pay instead of notice, severance pay, incentive compensation, interest and/or vacation pay or claims under The Employment Standards Act or The Human Rights Code, or the equivalent statutes applicable in my province of employment.  I also acknowledge that the monies paid to me include any severance pay and notice pay to which I am entitled under The Employment Standards Act or the equivalent statute in my province of employment.  In the event that I should hereafter make any claim or demand or commence or threaten to commence any action, claim or proceeding against the Releasees for or by reason of any cause, matter or thing, this document may be raised as a complete bar to any such claim, demand or action.

I will not disclose the terms of the settlement or its existence to any person or corporation except for the purposes of dealing with Canada Revenue Agency (CRA), with a professional legal or financial advisor who agrees to be and is, professionally bound by confidentiality, or otherwise as required by law.

I agree to indemnify the Releasees and save them harmless from any and all income tax, employment insurance or Canada Pension Plan charges or payment that may be claimed by either the Receiver General of Canada or CRA in respect of any failure on your part to withhold such charges or payments after said, and in the event that any proceedings are commenced against the Releasees, I agreed to indemnify them and save them harmless from any money that might be required to be paid by either CRA or the Receiver General of Canada or by any Court.  However, and for the avoidance of doubt, I will not be required to indemnity the Releasees for any fines or penalties assessed by the Receiver General of Canada or CRA to the extent arising as a result of any negligent error or omission on the part of Ceridian Canada or any Releasee, and in such case shall only be required to indemnify for the actual principal amount of income tax, employment insurance or Canada Pension payable to such agencies.

I have read the above Release and have had the opportunity to obtain independent legal advice.  I understand that it contains a full and final release of all claims that I have or may have against the Releasees and that there is no admission of liability on the part of the Releasees and that any such liability is denied.

All of the foregoing shall ensure to the benefit of the Releasees, their successors and assigns, and be binding upon me and my respective heirs, executors, administrators, successors and assigns.

IN WITNESS WHEREOF I have duly executed this Release this      7th         day of    August                   , 2018.

 

	
 
	
)
	
 
	
 

	
 
	
)
	
 
	
 

	
 
	
)
	
 
	
 

	
 
	
)
	
 
	
/s/ Paul Elliott

	
Witness Signature
	
 
	
 
	
PAUL ELLIOTT

	
Print Name:Exhibit 10.1

 

Equity
Joint Venture Agreement

 

for
the establishment of

 

AVAR
(China) BioTherapeutics Ltd. 

 

    1 | 16

     

    

 

Table
of Contents

 

	Chapter
    I The Parties	3
	 	 
	Chapter
    II Establishment of Joint Venture	3
	 	 
	Chapter
    III Purpose, Business Scope and Size	4
	 	 
	Chapter
    IV Aggregate Investment and Registered Capital	4
	 	 
	Chapter
    V Contribution Proportion and Deadline of the Parties	4
	 	 
	Chapter
    VI Responsibilities of the Parties	5
	 	 
	Chapter
    VII Confidentiality	5
	 	 
	Chapter
    VIII Board of Directors	5
	 	 
	Chapter
    IX Supervisors	6
	 	 
	Chapter
    X Operation and Management	6
	 	 
	Chapter
    XI Labor Management	7
	 	 
	Chapter
    XII Insurance	7
	 	 
	Chapter
    XIII Finance, Accounting, Taxation, Foreign Exchange and Profit Distribution	7
	 	 
	Chapter
    XIV Amendment, Addition, Change and Termination of Contract	8
	 	 
	Chapter
    XV Duration, Termination and Liquidation	8
	 	 
	Chapter
    XVI Liabilities for Breach of Contract	9
	 	 
	Chapter
    XVII Force Majeure	9
	 	 
	Chapter
    XVIII Applicable Law and Dispute Settlement	10
	 	 
	Chapter
    XIX Supplementary Provisions	10

 

    2 | 16

     

    

 

THIS
EQUITY JOINT VENTURE AGREEMENT (the “Agreement”) IS MADE AS OF THIS DAY OF OCTOBER 23, 2018 (the “Effective
Date”), BY AND BETWEEN THE FOLLOWING PARTIES:

 

Avactis
Biosciences, Inc., a corporation duly incorporated and existing under the laws of the State of Nevada and a wholly-owned subsidiary
of Avalon GloboCare Corp. with its registration address at 4400 Route 9 South, Suite 3100, Freehold, New Jersey 07728, USA (hereinafter
referred to as Party A), and

 

Arbele
Limited, a limited liability company duly incorporated and existing under the laws of the Hong Kong Special Administrative
Region of the People’s Republic of China (“PRC”) with its registration address at Unit 522, Biotech Center 2,
11 Science Park West Avenue, Shatin, N.T., Hong Kong, PRC (hereinafter referred to as Party B).

 

The
abovementioned Party A and Party B are referred to as “the Party” individually and “the Parties”
collectively hereafter.

 

After
friendly negotiation conducted in accordance with the principals of equality and mutual benefit as outlined in the LETTER OF INTENT
dated JULY 30, 2018 (Exhibit A), Party A and Party B, have agreed to establish a Sino-foreign equity joint venture —
AVAR (China) BioTherapeutics Ltd. (hereinafter referred to as “Joint Venture”) in [city],
[province] Province, PRC in accordance with the Law of the PRC on Sino-Foreign
Equity Joint Ventures, the Joint Venture Law of the People’s Republic of China and other relevant laws and regulations,
and the provision of this Joint Venture Contract.

 

Chapter
I The Parties

 

Article
1 The Parties to this Contract are:

 

	Party
    A:	 	Avactis
    Biosciences, Inc., a subsidiary wholly owned by Avalon GloboCare Corp.
	Registered
    at:	 	4400
    Route 9 South, Suite 3100, Freehold, New Jersey 07728
	Contact
    address:	 	4400
    Route 9 South, Suite 3100, Freehold, New Jersey 07728
	Telephone:	 	☐ 
	 	 	 
	Party
    B:	 	Arbele
    Limited
	Registered
    at:	 	Unit
    522, Biotech Center 2, 11 Science Park West Avenue, Shatin, N.T., Hong Kong, PRC
	Contact
    address:	 	Unit
    522, Biotech Center 2, 11 Science Park West Avenue, Shatin, N.T., Hong Kong, PRC
	Telephone:	 	[+852-36203002
    ]

 

Chapter
II           Establishment of Joint Venture

 

Article
2         The name of the Joint Venture shall be “[TBD]”
in Chinese and “AVAR (China) BioTherapeutics Ltd.” in English. The legal address of the Joint Venture shall
be [ TBD ].

 

Article
3        The Joint Venture shall be organized as a limited liability Joint Venture liable for
all its debts only with its own property and assets. The liability of each Party shall be limited to the amount of the registered
capital subscribed to by it. The rights and interests as well as risks shall be share by the Parties according to the respective
percentages of their investments in the registered capital of the Joint Venture.

 

The
Joint Venture shall be a legal person under the laws of the PRC, it shall observe the laws and regulations of the PRC and all
of its activities shall be fully protected in accordance with the laws, regulations of the PRC. The Joint Venture shall independently
undertake full civil responsibilities as an enterprise entity.

 

    3 | 16

     

    

 

Chapter
III Purpose and Business Scope

 

Article
4        The purpose and business scope of the Joint Venture is to research, develop, produce, sell,
distribute and generally commercialize CAR-T/CAR-NK/TCR-T/universal cellular immunotherapy in the PRC as more fully described
in Appendix A.

 

Article
5         Intentionally left blank.

 

Chapter
IV Total Investment and Registered Capital

 

Article
6         Section 6.1 The total investment of the Joint Venture shall be USD $16.66 million .

 

Section
6.2 The registered capital of the Joint Venture shall be not less than 5,000,000 RMB.

 

Article
7        The registered capital of the Joint Venture shall not be reduced as long as the Joint Venture
exists. However, if reduction is truly needed because of changes concerning total investment, production and operation size, and
others, reduction may be made and must be approved by the approving authority.

 

Chapter
V Contribution Proportion and the Timetable

 

Article
8         The contribution amount and proportion of the Parties are:

 

		1.	Party
                                         A shall contribute USD $10 million (or equivalent
                                         RMB) in cash and/or services as outlined in Article 13, representing sixty percent (60%)
                                         of the total investment of the Joint Venture, which shall be contributed in tranches
                                         based on milestones to be determined by the Joint Venture and Party A in writing subject
                                         to Party A’s cash reserves; and

 

		2.	Within
                                         30 days, Party B shall make contribution of USD 6.66 million in the form of entering
                                         into a License Agreement with the Joint Venture granting the Joint Venture with an exclusive
                                         right and license in the PRC for Party B’s technology and intellectual property
                                         pertaining to CAR-T/CAR-NK/TCR-T/universal cellular immunotherapy technology and any
                                         additional technology developed in the future with terms and conditions to be mutually
                                         agreed upon by Party A and the Joint Venture and services as outlined in Article 14,
                                         representing forty percent (40%) of the total investment of the Joint Venture. In the
                                         event the Joint Venture develops additional intellectual property or technology (the
                                         “Joint Venture Intellectual Property”), the Joint Venture shall own such
                                         Joint Venture Intellectual Property. Party B will not be able to engage in any conflicting
                                         or competitive business to JV’s CAR-T/CAR-NK/TCR-T/universal cellular immunotherapy
                                         technologies in the PRC without the approval of Party A.

 

Article
9         The registered capital from Party A of not less than 5,000,000 RMB referenced in Section
6.2 shall be contributed by Party A as required by local regulations to provide initial working capital.

 

Article
10       Joint Venture is the legal owner of the assets contributed to the Joint Venture and enjoys the
right to use the said capital contribution.

 

Article
11      Each Party may transfer all or any part of its interests in the Joint Venture, provided that it obtains
the prior written consent of the other Party. When either of the Parties transfers all or any part interests in the Joint Venture,
the other Party shall have a preemptive right to purchase the said interests under the same conditions. If either of the Parties
transfers its equity of the Joint Venture to a third party, the transfer conditions shall be no more favorable than the conditions
for transferring to the other shareholder.

 

Article
12       Intentionally Left Blank.

  

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Chapter
VI Responsibilities of the Parties

 

Article
13       Party A shall be responsible for the followings:

 

		1.	pay
                                         the registered capital referenced in Section 6.2 to the Joint Venture within six (6)
                                         days upon the registration of the Joint Venture;

		2.	Pay
                                         the cash contributions referenced in Article 8 (1) as set forth therein.

		3.	assist
                                         the Joint Venture in setting up its business operations and obtaining all required permits
                                         and licenses from the PRC;

		4.	assist
                                         the Joint Venture in recruiting, hiring and retaining all Joint Venture personnel;

		5.	provide
                                         the Joint Venture with access to various hospital networks in the PRC to assist in the
                                         testing and commercialization of the CAR-T/CAR-NK/TCR-T/universal cellular immunotherapy
                                         technology in the PRC;

		6.	assist
                                         the Joint Venture in managing the Good Manufacturing Practices (GMP) facility and clinic
                                         to be developed by the Joint Venture;

		7.	provide
                                         the Joint Venture with advice pertaining to conducting clinicals in the PRC; and

		8.	be
                                         responsible to deal with other issues commissioned by the Joint Venture.

		9.	Within
                                         6 days of the
                                         signature of this agreement, Party A will pay to Party B $300,000 as a research and development
                                         fee with an additional two payments of $300,000 (for a total of $900,000) to be paidupon
                                         mutually agreed upon milestones.

 

Article
14       Party B shall be responsible for the followings:

 

		1.	pay
                                         its contribution in accordance with provisions as outlined in Exhibit A hereof;

		2.	No
                                         later than November 1, 2018, enter into a License Agreement with the Joint Venture under
                                         conditions and terms agreed upon by both Party B and the Joint Venture as set forth in
                                         Article (2);

		3.	provide
                                         the Joint Venture with research and development expertise pertaining to clinical laboratory
                                         medicine when hired by the Joint Venture; and

		4.	be
                                         responsible to deal with other issues commissioned by the Joint Venture.

 

Chapter
VII Confidentiality

 

Article
15     The Parties shall maintain any trade secret or other undisclosed information (referred to as “Information”
hereafter) of the other shareholder or its affiliate companies they know during the performance of this Contract in strict confidence,
except any of the following circumstances:

 

		1	The
                                         Information has been known to the public;

		3.	The
                                         owner agrees to disclose the Information to the public; and

		4.	The
                                         Information is required to be disclosed under the requirement of laws and regulations.

 

Chapter
VIII Board of Directors

 

Article
16      The Board of Directors shall be the highest authority of the Joint Venture and shall decide all major issues
of relating to the management of the business and affairs of the Joint Venture. The date on which the Joint Venture obtains its
Business License shall be the date of establishment of the Board of Directors.

 

The
Board of Directors shall consist of three (3) directors, of which two(2) directors shall be appointed by Party A who shall initially
be David Jin, M.D., Ph.D and one other Director to be determined by Party A and agreed by Party B., one (1) director shall be
appointed by Party B who shall initially be John Luk, Dr. Med.Sc., EMBA. The board of director shall have one (1) chairman, who
shall be appointed by Party A who shall initially be Dr. Jin. The term of directors shall be three (3) years and may be renewed
with the approval of the Party which appointed such Director. If any director is appointed and replaced, the Board of Director
shall be notified in writing.

 

Article
17     The Chairman of the Board is the legal representative of the Joint Venture. In case that the Chairman is
unable to perform his duties, the director appointed by Party B shall perform his duties temporarily.

 

    5 | 16

     

    

 

Article
18      Any transfer of the equity in the Joint Venture shall require a resolution adopted by unanimous affirmative
vote, either written or in person, of all members of the Board.

 

Article
19      The powers, the holding and calling procedure, the method for conducting business and the voting procedure
of the board meeting shall be subject to the Joint Venture’s articles of association.

 

Chapter
IX Supervisors

 

Article
20      The Joint Venture shall have two (2) Supervisors one of which will be appointed by Party A who
shall initially be Dr. Jin and one of which will be appointed by Party B who shall initially be Dr. Luk. The term of supervisors
shall be three (3) years and may be renewed with the approval of the Party which appointed such Supervisor.

 

Article
21       The supervisors shall have the following powers:

 

		1.	To
                                         inspect the financial affairs of the Joint Venture;

		2.	To
                                         supervise the behavior of the Directors and the senior managements and propose to depose
                                         directors or senior officers who violate national statutes, administrative regulations,
                                         the articles of association or resolutions of the board meeting;

		3.	To
                                         demand the director or senior management personnel to correct his/her conduct if such
                                         conduct has caused damages to the interests of the Joint Venture;

		4.	To
                                         file law suit against the director or senior management personnel in accordance with
                                         the PRC Laws and Regulations; and

		5.	Other
                                         matters as specified in the Articles of Association.

 

Chapter
X Operation and Management 

 

Article
22     The Joint Venture shall adopt a management organization consisting of one general manager, one deputy general
manager, one chief financial officer and a number of senior officers. The general manger shall be nominated and appointed by the
unanimous vote by the Board of Directors. The deputy general manager, chief financial officer and other senior officers shall
be recommended by the general manager, shall be appointed by the Board of Directors, and shall be responsible for the general
operation and management of the Joint Venture.

 

Article
23       If it is appointed by the Board of Directors, the chairman and directors may hold the office of general
manger or other senior offices of the Joint Venture.

 

Article
24      The general manager shall report to the Board of Directors, shall execute resolutions made by the
Board of Directors, shall exercise authorities and fulfill duties within the scope of authority granted by the Board of Directors,
and shall organize and exercise the leadership in routine operation and business management of the Joint Venture. Personnel in
charge of any subdivision of the Joint Venture shall fulfill their responsibility as assigned by the general manager and report
their duty and performance to the general manager and the deputy general manager.

 

Article
25       The term of official authorities and other provisions for the general manager shall be prescribed
by the articles of association. The general manager shall have the right to sit in on board meetings.

 

Article
26       In case the general manger or any one of senior offices commits an act of graft or serious dereliction
of duty, they may be dismissed at any time upon the decision of the Board.

 

Article
27       The general manager shall submit accounting reports to the Parties according to the following
schedule:

 

		1.	The
                                         general manager shall, within the first (1) month of every fiscal year, develop and submit
                                         the accounting report unaudited of the last fiscal year; and within the first two (2)
                                         months of every fiscal year, develop and submit the accounting report audited of the
                                         last fiscal year; and

 

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		2.	The
                                         general manager shall submit the accounting budget of the next year sixty (60) days ahead
                                         of the ending of every fiscal year.

 

Chapter
XI Labor Management

 

Article
28      The employment, recruitment, dismissal and resignation of the employees of the Joint Venture and their
salary, welfare, labor insurance, labor protection, labor discipline, reward and penalty and other matters shall be handled in
accordance with the regulations of labor and social security of the PRC. The plan shall be researched and developed by the Board
of Directors, the labor contract shall be executed by the Joint Venture with employees, and labor contract system shall be applied
to all employees. Once a labor contract is executed, it shall be filed with local labor management department.

 

Article
29       The Joint Venture shall pay social insurances including, but not limited to, pension insurance, unemployment
insurance, medical insurance, childbirth insurance, and industrial injury insurance for employees in accordance with relevant
exiting laws and regulations of China.

 

Article
30       The employment, salary, social insurance, welfare, travel expenses and others for senior officers
of the Joint Venture shall be discussed and determined by the Board of Directors.

 

Chapter
XII Insurance

 

Article
31       All insurances of the Joint Venture shall be bought from insurers in China; and the selection
of insurer, risk coverage, insured value, and period of coverage shall be discussed and determined by the board meeting in accordance
with provisions of the insurer selected.

 

Chapter
XIII Finance, Accounting, Taxation, Foreign Exchange and Profit Distribution

 

Article
32       The financial, accounting system of the Joint Venture shall be developed in accordance with
relevant laws and regulations of financial and accounting systems of China based on the Joint Venture’s situations and shall
be filed with local financial and taxation departments. The Joint Venture shall pay taxes in accordance with relevant laws and
relations of China and employees of the Joint Venture shall pay individual income tax according to the Individual Income Tax Law
of the People’s Republic of China.

 

Article
33       Calendar year system shall be adopted as the fiscal year of the Joint Venture, i.e. a fiscal
year is from January 1 to December 31 of a calendar year. Any self made voucher, report and account book shall be written in simplified
Chinese.

 

Article
34       The Joint Venture shall submit accounting reports to the Parties, local taxation department
and financial department at specified time.

 

Article
35       The Parties shall have the right to employ auditors or delegate authorized personnel at its
own expense to check the account books, documents and any other material related to the assets and daily operation of the Joint
Venture at any time. The Joint Venture shall provide convenience if the said checking is made.

 

Article
36      Chinese certified public accountants shall be employed to audit the financial accounting report of
the Joint Venture, and the auditor result shall be reported to the board of director and the general manager.

 

Article
37       Any issue relating to foreign exchange of the Joint Venture shall be handled subject to the
Regulations on the Foreign Exchange System of the People’s Republic of China and relevant management methods.

 

Article
38       After the income tax is paid according to the law, the profits of the Joint Venture shall be
distributed based on following principles:

 

    7 | 16

     

    

 

		1.	Reserve
                                         fund, employees’ reward and welfare fund, and enterprise development fund shall
                                         be withdrawn with a proportion determined by the board of director;

 

		2.	Except
                                         those for making up the loss of the Joint Venture, the reserve fund may be used to increase
                                         the capital of the Joint Venture for business expansion provided that it is approved
                                         by relevant authority in advance; and

 

		3.	The
                                         distributable profits after the three funds are withdrawn as prescribed by item 1 of
                                         this article shall be distributed to Parties of the Joint Venture in proportion to their
                                         equity held after it is determined by the board of director for distribution.

 

Article
39       It is not allowed to distribute profits before losses of the Joint Venture in previous years are
not made up.

 

Article
40       Profits in previous years that are not distributed can be accounted into the profit of current fiscal
year for distribution.

 

Chapter
XIV Amendment, Addition, Change and Termination of Contract

 

Article
41     Any amendment or addition to this Contract and its Appendix can be effective only after the Parties reach
unanimity, execute written Contract and submit the Contract to the original approving authority for approval.

 

Article
42      In case it fails to perform the obligations hereunder, in whole or in part, due to force majeure,
the Contract may be amended, changed or terminated provided that there are definite references and evidences, and such amendment,
change and termination are passed unanimously by the board of director and approved by the original approving authority.

 

Chapter
XV Duration, Termination and Liquidation

 

Article
43      The duration of joint venture shall be 20 (twenty) years, which is counted from the date when its
business license is issued. In case the Parties agree to extend the duration of joint venture, written application shall be submitted
to the original approving authority six months before the expiration of the duration of joint venture, and the duration can only
be extended after being approved; meanwhile change application shall be submitted to the industrial and commercial authority.
The dissolution of the Joint Venture shall automatically cause the License Agreement to terminate.

 

Article
44       The Contract may be terminated in advance in case the Parties deem it will serve the best interests
of both parties to do so.

 

Article
45       In case the Joint Venture terminates the Contract in advance, it shall be passed unanimously
by the Board of Directors and submitted to the original approving authority for approval.

 

Article
46       The Joint Venture may be dissolved under any of the following circumstances:

 

		1.	The
                                         duration of the Joint Venture is expired;

 

		2.	The
                                         Parties so agree unanimously;

 

		3.	The
                                         Joint Venture suffers serious losses and can not keep operation;

 

		4.	The
                                         Joint Venture can not keep operation for either or both of the Parties fail to perform
                                         obligations set forth in the Shareholder Contract and the articles of association;

 

		5.	The
                                         Joint Venture can not keep operation due to serious losses caused by force majeure;

 

		6.	The
                                         Joint Venture fails to achieve the operation purpose and there is no potential for the
                                         Joint Venture; and

 

		7.	Other
                                         dissolution causes set forth in the Shareholder Contract and the articles of association
                                         emerge.

 

    8 | 16

     

    

 

If
circumstances stated in item 2, 3, 5, 6 and 7 of the abovementioned article occur, the dissolution application shall be presented
by the board of director and submitted to approving authority for approval; and if circumstance stated in item 4 occurs, application
shall be presented by the party that performs the Contract and submitted to approving authority for approval.

 

Under
the circumstance stated in item 4 of this article, the party that fails to perform the Shareholder Contract, the articles of association
shall be liable to compensate the Joint Venture and the non-breaching party for losses incurred thereby; the non-breaching party
shall have the right to apply to the approving authority for dissolving the Joint Venture according to the law.

 

Article
47      When the Joint Venture announces dissolution, liquidation shall be made. The Joint Venture shall set
up a liquidation group in accordance with the Joint Venture Law to take charge of liquidation issues.

 

Article
48     The tasks for the liquidation group are to complete check the assets, claims and liabilities of the Joint
Venture, compile balance sheet and assets list, put forward references for price fixing and calculation, develop liquidation plan,
and execute the plan after it is passed by the board meeting.

 

Article
49       After the claims, liabilities of the Joint Venture are paid off by the liquidation group, the
remaining assets shall be distributed to the Parties in proportion to the equity of Joint Venture held.

 

Article
50      On completion of the liquidation, the liquidation group shall submit a liquidation report to the original
approving authority; and after it is passed by the board of director, formalities shall be gone through for nullifying registration
in the industrial and commercial authority and business license shall be handed in, at the same time, an announcement shall be
made to the public.

 

Article
51       Intentionally Left Blank.

 

Chapter
XVI Liabilities for Breach of Contract

 

Article
52       In case this Contract can not be performed or can not be fully performed due to the breach of
contract by one party, the breaching party shall take the liabilities for breach of contract; if both of the parties break the
contract, each of the parties shall take relevant liabilities for breach of contract respectively based on practical situations.

 

Article
53      In case the Joint Venture fails to continue operation or achieve the business objective stated in the Contract
due to either party does not perform obligations under the Contract and the articles of association, or violates provisions set
forth in the Contract and the articles of associations, it shall be deemed that the breaching party terminates the Contract unilaterally.

 

Chapter
XVII Force Majeure

 

Article
54      If any party fails to perform the Contract or fails to perform the Contract as per conditions agreed during
joint venture due to direct impact produced by earthquake, typhoon, flood, fire, war or any other force majeure that is unforeseeable
unavoidable and insurmountable, the party suffered force majeure shall notify the other party immediately and shall provide details
of the force majeure as well as effective certification for reasons of failing to perform the Contract, in whole or in part, or
requiring extension of performance period within fifteen (15) days, and the said certification shall be issued by a notary organ
in the place where the force majeure occurs. Based on the degree of impact on the performance of Contract, whether the Contract
is terminated, or the liability of performing a part of Contract is exempted, or the performance period is extended shall be determined
by the Parties through consultation.

 

    9 | 16

     

    

 

Chapter
XVIII Applicable Law and Dispute Settlement

 

Article
55       The formation of this Contract, its validity, interpretation, execution and settlement of any
dispute arising hereunder shall be governed by the laws of the PRC.

 

Article
56      Any dispute arising from the execution of this Contract shall be settled by the parties through friendly
negotiation. In the event the Parties are unable to resolve the dispute through negotiation, the dispute shall be submitted to
the China International Economic and Trade Arbitration Committee (CIETAC) located in Beijing for arbitration in accordance with
valid arbitration rules of CIETAC. The arbitration award shall be final and binding on the Parties.

 

Article
57      In the course of arbitration, this Contract shall be continuously performed by both Parties except
the part of this Contract which is under arbitration, the Parties shall exercise rights and perform obligations stipulated by
this Contract at a time and in a manner prescribed hereby.

 

Chapter
XIX Supplementary Provisions

 

Article
58       Chinese language shall be the uniform language used in office affairs of the Joint Venture.

 

Article
59     Any issue not duly covered in this Contract shall be executed in accordance with provisions set forth in
the Law of the PRC on Sino-Foreign Equity Joint Ventures, the Regulations for the Implementation of the Law of the People’s
Republic of China on Chinese-Foreign Equity Joint Ventures and other relevant laws and regulations; in addition, the parties may
execute complementary Contract through friendly consultation as necessary and submit it to the approving authority for approval.

 

Article
60       The Appendix A and Exhibit A hereto are the indispensable part of this Contract and shall possess
the same legal validity with this Contract.

 

Article
61       The Contract shall become effective upon the approval of the Ministry of Commerce of the PRC
(or its authorized approving authority).

 

Article
62      In case of any notice delivered or sent by the Parties to the other by facsimile or e-mail involving
the rights, obligations of the parties, a written letter shall be sent later for confirmation. The addresses listed in Article
1 hereof are the communication addresses of the Parties.

 

Article
63       This Contract is executed by the legal representatives (or duly authorized representatives)
of the Parties on October [ ], 2018.

 

Article
64       This Contract is executed in ten counterparts, and each counterpart shall have the same legal
validity. Each Party and the Joint Venture shall keep one original and the remaining shall be used for approval by, and registration
and filing with relevant government departments and the industrial and commercial authority.

 

(This
page is for the signature of the Shareholder Contract of AVAR (China) BioTherapeutics Ltd. only, with no text below)

 

    10 | 16

     

    

 

Party
A: Avactis Biosciences, Inc., a wholly-owned subsidiary of Avalon GloboCare Corp.

 

	Signature:	 /s/David
    Jin	 
	Name:
    David Jin, MD, PhD       	 
	 	 
	Title:
    CEO	 

 

Party
B: Arbele Limited 

 

	Signature:	 	 
	Name:
    John M. Luk, Dr.Med.Sc., EMBA	 
	 	 
	Title:
    Chairman	 

 

    11 | 16

     

    

 

Appendix
A

 

Joint
Venture Purpose and Business Scope

 

[The
Joint Venture is focused on the researching, developing, manufacturing, and commercializing cellular therapy, including (but not
limited to) autologous CAR-T, CAR-NK, TCR-T, as well as allogeneic/universal cell-based immunotherapy for treating cancer patients
in China with an initial focus on CD19 positive malignancies which shall include establishing a GMP-standard bio-manufacturing
of proprietary CD19, CD22, and CD123 CAR-T biotherapeutics to support clinical studies of relapsed/refractory hematologic malignancies
in China within two (2) years of the date hereof.

 

The
Joint Venture shall be responsible for:

 

		●	Developing,
                                         manufacturing and commercializing CAR-T/CAR-NK/TCR-T/universal cell-based immunotherapy
                                         in the PRC in full compliance with regulations in the PRC pertaining to cellular immunotherapy;

		●	Developing
                                         at least one GMP clinical grade facility in Beijingand/or Nanjing, China (the “Joint
                                         Venture Facility”); 

		●	Developing
                                         cellular immunotherapeutics, including but not be limited to, generating, bio-manufacturing,
                                         standardizing, and bio-banking CAR-T/CAR-NK/TCR-T/universal cellular therapeutics;

		●	Scaling
                                         up the manufacturing of cellular immunotherapeutics at the Joint Venture Facility;

		●	Ensuring
                                         that the Joint Venture is in full compliance with all PRC regulations, as well as ready
                                         for FACT accreditation;

		●	Recruiting
                                         scientists, engineers, clinicians, and management personnel to implement the scope and
                                         purpose of the Joint Venture; 

		●	Within
                                         one year from the date hereof, subject to obtaining regulatory approval, the Joint Venture
                                         shall produce its initial cellular therapeutics products and begin the first clinical
                                         trial in China, according to the 1-year workplan below and subject to regulatory requirements;

		●	Subject
                                         to raising adequate working capital, paying an R&D fee of RMB [USD $900k equivalent]
                                         to Party B within 90 days of the signing date hereof; 

		●	Within
                                         three years from the signing date hereof, filing an application with the Hong Kong Stock
                                         Exchange or such other equivalent stock exchange subject to meeting such listing standards.]

 

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EXHIBIT
A

 

LETTER
OF INTENT

 

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