Document:

Exhibit 4.2

 

NEITHER
THE SECURITIES REPRESENTED HEREBY NOR THE SECURITIES ISSUABLE UPON CONVERSION HEREOF HAVE BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE HOLDER HEREOF, BY PURCHASING SUCH
SECURITIES, AGREES FOR THE BENEFIT OF THE COMPANY THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A)
TO THE COMPANY, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT, (C) IN ACCORDANCE WITH RULE 144, RULE 145 OR RULE 144A
UNDER THE SECURITIES ACT, IF APPLICABLE, AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES OR “BLUE SKY”
LAWS OR (D) IF THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, OR OTHERWISE SATISFIED
ITSELF, THAT THE TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE U.S. STATE LAWS AND
REGULATIONS GOVERNING THE OFFER AND SALE OF SECURITIES.

 

KIRIN
INTERNATIONAL HOLDING INC.

 

CONVERTIBLE
PROMISSORY NOTE

 

U.S.$75,000,000.00

 

Note
No. 0002

Issuance
Date: December 19, 2015

Maturity
Date: December 19, 2018

Santa
Ana, California

 

For
value received, Kirin International Holding Inc., a California corporation (the “Company”), promises
to pay to Jasper Lake Holdings Limited (the “Holder”) the principal sum of Seventy Five Million U.S.
Dollars (U.S.$75,000,000.00). This convertible promissory note (this “ Note”) is subject to the following
terms and conditions. This Note is one of a series of Convertible Promissory Notes containing substantially identical terms and
conditions issued pursuant to that certain Note and Share Exchange Agreement dated as of December 19, 2015 (the “SEA”).
All notes issued under the SEA are referred to herein as the “Notes,” and the holders thereof are referred
to herein as the “Holders.”

 

		1.	Interest,
                                         Maturity and Default

(a)
Interest shall accrue from the Issuance Date on the unpaid principal amount at a rate equal to 8 percent per annum, simple interest;
provided, however, that if any principal or interest under this Note remains unpaid after December 19, 2018 (the “Maturity
Date”), the interest rate on such unpaid amounts shall increase from 8 percent per annum to a percent per annum
simple interest mutually agreed by the Company and the Holder. Subject to Section 2, principal and any accrued but unpaid interest
under this Note shall be due and payable upon demand by the Holder at any time after the Maturity Date.

 

(b)
Notwithstanding the provisions of Section 1(a) above, the entire unpaid principal sum of this Note, together with accrued and
unpaid interest thereon, shall become immediately due and payable upon (i) the execution by the Company of a general assignment
for the benefit of creditors, (ii) the filing by or against the Company of a petition in bankruptcy or any petition for relief
under the federal bankruptcy act or the continuation of such petition without dismissal for a period of 90 days or more, or (iii)
the appointment of a receiver or trustee to take possession of the property or assets of the Company.

 

		2.	Conversion

(a)
Conversion at Holder’s Election

The
principal and accrued but unpaid interest under this Note (the “Aggregate Note Amount”) shall, at the
Holders election, be convertible at any time into shares of (i) the Company’s Class A common stock, no par value per share
(“Class A Common Stock”), or (ii) if the Class A Common Stock has been converted into another class
of common stock as of the date of conversion of the Note, the class of common stock as then authorized (the class of stock issued
under this Section 2(a)(i) or (ii), the “Common Stock”). The Aggregate Note Amount shall
be convertible into a number of shares of Common Stock equal to the quotient of the Aggregate Note Amount divided
by $10.00.

 

(b)Mechanics
and Effect of Conversion

No
fractional shares of the Company’s capital stock will be issued upon conversion of this Note. In lieu of any fractional
share to which the Holder would otherwise be entitled, the Company will pay to the Holder in cash the amount of the unconverted
principal and interest balance of this Note that would otherwise be converted into such fractional share. Upon conversion of this
Note pursuant to this Section 2, the Holder shall surrender this Note, duly endorsed, at the principal offices of the Company
or any transfer agent of the Company. At its expense, the Company will, as soon as practicable thereafter, issue and deliver to
such Holder, at the address of the Holder most recently furnished in writing to the Company, a certificate or certificates for
the number of shares of Equity Securities to which such Holder is entitled upon such conversion, together with any other securities
and property to which the Holder is entitled upon such conversion under the terms of this Note, including a check payable to the
Holder for any cash amounts payable as described herein. Upon conversion of this Note, the Company will be forever released from
all of its obligations and liabilities under this Note with regard to that portion of the principal amount and accrued interest
being converted, including, without limitation, the obligation to pay such portion of the principal amount and accrued interest.

 

		3.	Payment

All
payments shall be made in lawful money of the United States of America at such place as the Holder hereof may from time to time
designate in writing to the Company. Payment shall be credited first to the accrued interest then due and payable and the remainder
applied to principal. Any amounts due in connection with this Note may be prepaid in whole or in part at any time without penalty
upon ten (10) days’ advance notice by the Company to the registered holder of this Note.

 

     

     

    

 

		4.	Transfer;
                                         Successors and Assigns

The
terms and conditions of this Note shall inure to the benefit of and be binding upon the respective successors and assigns of the
parties. Notwithstanding the foregoing, except for a pledge of this Note to a bank or other financial institution that creates
a mere security interest in this Note in connection with a bona fide loan transaction, the Holder may not assign, pledge, or otherwise
transfer this Note without the prior written consent of the Company. Subject to the preceding sentence, this Note may be transferred
only upon surrender of the original Note to the Company for registration of transfer, duly endorsed, or accompanied by a duly
executed written instrument of transfer in form satisfactory to the Company, and, thereupon, a new note for the same principal
amount and interest will be issued to, and registered in the name of, the transferee. Interest and principal are payable only
to the registered holder of this Note.

 

		5.	Governing
                                         Law; Jurisdiction

This
Note shall be governed by and construed under the laws of the State of California as applied to agreements among California residents,
entered into and to be performed entirely within the State of California, without giving effect to principles of conflicts of
law. The parties irrevocably consent to the jurisdiction and venue of the state and federal courts located in Santa Ana, California
in connection with any action relating to this Note.

 

		6.	Notices

Any
notice required or permitted by this Note shall be given in writing and shall be deemed effectively given (a) upon personal delivery
to the party to be notified, (b) upon confirmation of receipt by fax by the party to be notified, (c) one business day after deposit
with a reputable overnight courier, prepaid for overnight delivery and addressed as set forth in (d), or (d) three days after
deposit with the United States Post Office, postage prepaid, registered or certified with return receipt requested and addressed
to the party to be notified at the address of such party indicated on the signature page hereof, or at such other address as such
party may designate by 10 days’ advance written notice to the other party given in the foregoing manner.

 

		7.	Amendments
                                         and Waivers

Any
term of this Note may be amended only with the written consent of the Company and the holders of a majority in interest of the
Notes, including the Lead Investor as set forth on Schedule 1 to the Note Purchase Agreement. Any amendment or waiver effected
in accordance with this Section 7 shall be binding upon the Company, each Holder and each transferee of the Note.

 

		8.	Shareholders,
                                         Officers and Directors Not Liable

In
no event shall any shareholder, officer or director of the Company be liable for any amounts due or payable pursuant to this Note.

 

		9.	Action
                                         to Collect on Note

If
action at law or equity is necessary to enforce or interpret the terms of this Note, the prevailing party shall be entitled to
reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such party may be
entitled.

 

		10.	Waiver of Jury Trial

Each
of the Company and Holder hereby waives its right to trial by jury in any claim (whether based upon contract, tort or otherwise)
under, related to or arising in connection with this Note.

 

		11.	Waiver of Notice of Presentment

The
Company hereby waives presentment, protest and demand, notice of protest, demand and dishonor and non-payment of this Note in
connection with the delivery, acceptance, performance, default or enforcement of the payment of this Note.

 

	 	COMPANY:
	 	 
	 	KIRIN
    INTERNATIONAL HOLDING INC.
	 	 	 
	 	By:	/s/
    Jianfeng Guo
	 	Name:
    	Jianfeng
    Guo
	 	Title:	Chief
    Executive Officer

 

	 	Address: 	Kirin
    International Holding Inc.
	 	 	1528
    Brookhollow Drive
	 	 	Suite
    100, Santa Ana, CA92705tndm-ex101_6.htm

 

Exhibit 10.1

 

 

 

 

11045 Roselle Street, San Diego, CA  92121

858/366-6900 main ∙ 858/202-6748 fax

 

 

January 11, 2016

 

Brian Hansen

1206 Kirkland Ave.

Kirkland, WA 98033

                                                                 

Dear Brian,

 

Tandem Diabetes Care, Inc. (“Tandem” or the “Company”) is pleased to offer you employment on the terms and conditions set forth below.

 

	
1.
	
Position.  You will serve in a full-time capacity as Executive Vice President & Chief Commercial Officer.  You will report to Kim Blickenstaff – Chief Executive Officer.  By signing this offer letter, you represent and warrant to the Company that you are under no contractual commitments that would limit your ability to work for the Company.
	
 

 

	
2.
	
Salary.  You will be paid bi-weekly at a rate of $14,423.08 (approx. $375,000.00 annualized) less required payroll taxes and withholdings, payable in accordance with the Company’s standard payroll practices and in accordance with applicable laws for exempt employees.  As an exempt employee, you will not be entitled to overtime pay.
	
 

 

	
3.
	
Corporate Bonus. The Company has established a discretionary 2016 Cash Bonus Plan. Your target bonus under this Plan is 50% of regular wages paid in 2016, less required payroll taxes and withholdings.  The actual bonus payout under the Plan, if any, will be determined at the discretion of our Board of Directors and is also conditioned on your employment on any payment date. Your target bonus is not a promise of compensation and is not intended to create any obligation on the part of the Company. 
	
 

 

	
4.
	
Sign-on Bonus.  The Company will advance you a $75,000 one-time bonus within one month of your start date, less required payroll taxes and withholdings.  The bonus is deemed fully earned after twenty-four (24) months of continuous active employment.  Should you leave the company for any reason after twelve (12) months of active employment, but prior to completing twenty-four (24) months of active employment, a prorated portion of the bonus is required to be repaid.  The required prorated bonus repayment shall be equal to 100% of the bonus, reduced by 1/24th for each full month of active employment at Tandem. Required repayment must be made on or before your final date of active employment and shall be by certified check to the Company or may be deducted from your final payroll.
	
 

 

	
5.
	
Relocation Assistance.  The Company is prepared to assist you with the cost of your relocation to the San Diego area.  The Company will provide a relocation package detailed below, subject to the additional terms and conditions of Tandem’s enclosed Relocation Guidelines and Agreement for Repayment of Relocation Expenses.  The lump sum is listed under Part A but you do have the option to move some of the funds under Part B, as explained the enclosed Relocation Guidelines and Agreement for Repayment of Relocation Expenses.
	
 

 

Part A:   The Company will pay up to $100,000.00 for moving expenses to cover the cost of moving your primary place of residence (“household”) to San Diego. Please note that to be eligible to receive this benefit, the physical relocation of your household must be completed within twelve (12) months of your start date. 

 

 

Tandem Diabetes Care reserves the right to review all compensation plans and make changes, additions, and/or deletions at any time. 

	
	
s/ BH

	
BH

	
Initial each page

1

 

Exhibit 10.1

The details of this benefit are outlined in Part A of the enclosed Relocation Guidelines and include such items as transportation for your final move to San Diego and movement/storage of household goods. These expenses, and others described in Part A of the Relocation Guidelines, must be approved in advance and will be paid for directly by Tandem on your behalf. 

 

The Relocation Bonus is deemed fully earned after twenty-four (24) months of active employment.  Should you leave the company for any reason, voluntarily or involuntarily, before you have completed twelve (12) months of active employment, 100% of the bonus is required to be repaid.  Should you leave the company for any reason after twelve (12) months of active employment, but prior to completing twenty-four (24) months of active employment, a prorated portion of the bonus is required to be repaid.  The required prorated bonus repayment shall be equal to 100% of the bonus, reduced by 1/24th for each full month of active employment at Tandem.  Required repayment must be made on or before your final date of active employment and shall be by certified check to the Company or may be deducted from your final payroll.

 

	
6.
	
Employee Benefits.  As a full-time employee of the Company, you will be eligible to participate in a number of Company-sponsored benefits in accordance with the terms of the Company’s benefit plans.  In addition, you will be entitled to paid time off (PTO) in accordance with the Company’s policy set forth in the Employee Handbook.  As a full-time employee, you will accrue 25 days (200 hours) of PTO during your first year of employment.  Under the Company’s current PTO policy, the PTO accrual rate increases by one additional day on your anniversary each year, to a maximum accrual rate of 30 days per year.  The Company reserves the right to change or eliminate these benefits on a prospective basis at any time.
	
 

 

	
7.
	
Stock Options.  In connection with the commencement of your employment, the Company will recommend that the Board of Directors grant you an option to purchase 135,000 options of the Company’s Common Stock with an exercise price equal to fair market value on the date of the grant pursuant to the terms of the Company’s 2013 Stock Incentive Plan (the “Plan”). The actual number of options granted will be at the discretion of the Board of Directors.  These options will vest ratably on a monthly basis over a four-year period except that the initial 25% of such shares will vest after a one-year cliff, based on your continued employment with the Company and in accordance with the standard stock option agreement approved by the Board of Directors for use with the Plan.  The grant of such options by the Company is subject to the Board’s approval, and this recommendation is not a promise of compensation and is not intended to create any obligation on the part of the Company.  If approved, the grant of options is not a guarantee of continued employment for any specific period of time and is subject to the terms and conditions outlined in the Plan. Further details on the Plan will be provided upon approval of such grant by the Company’s Board of Directors.
	
 

 

	
8.
	
Payroll Taxes and Withholdings.  All forms of compensation referred to in this letter are subject to applicable payroll taxes and withholdings.
	
 

 

	
9.
	
Employment At-Will.  The Company is an at-will employer and cannot guarantee employment for any specific duration.  You are free to quit, and the Company is entitled to terminate your employment at any time, with or without cause or prior warning.  This provision supersedes all prior agreements and understandings concerning termination of employment, whether oral, written or implied.  Although your job duties, title, reporting structure, compensation and benefits, as well as the Company’s personnel policies and procedures may change from time to time, the “at-will” nature of your employment may only be changed in an express written agreement signed by you and a duly authorized officer of the Company.
	
 

 

	
10.
	
Employee Proprietary Information Agreement.  As a condition of your employment, you are required to sign the Company’s Employee Proprietary Information Agreement, which includes an Assignment of Inventions provision.
	
 

 

	
11.
	
Pre-Employment Screening Your employment is contingent on successfully passing a drug test, background check, and satisfactory references check. The pre-employment testing and verification will be conducted through our 3rd party vendor.
	
 

 

 

 

Tandem Diabetes Care reserves the right to review all compensation plans and make changes, additions, and/or deletions at any time. 

	
	
s/ BH

	
BH

	
Initial each page

2

 

Exhibit 10.1

	
12.
	
Conflicts of Interest. Conflicts of interest exist where an individual's actions or activities, on behalf of Tandem or otherwise, involve the obtaining of an improper personal gain or advantage, or an adverse effect upon the interest of Tandem. For this reason, employees must refrain from engaging in any activity, practice, act, other employment or outside activities which conflict or interfere with the interests of Tandem, its corporate entities, or those it serves.  
	
 

 

	
13.
	
Company Policies. You agree to abide by the Company’s policies and procedures, including those set forth in the Company’s Employee Handbook and other Company documents, except to the extent they are inconsistent with the terms of this letter.  You will be required to sign the signature page of the Employee Handbook and associated policies following the commencement of your employment with the Company.
	
 

 

	
14.
	
Employment Eligibility.  Your employment is contingent on you providing the Company with the legally required proof of your identity and authorization to work in the United States.  You must also maintain your eligibility to work in the United States throughout your employment.
	
 

 

This letter and attachments supersede any prior understandings or agreements, whether oral or written, between you and the Company.  

 

Brian, we are very enthusiastic about you joining the team.  We are impressed with your experience and abilities, and believe that your skills and background provide an excellent match for both Tandem Diabetes Care and for you.

 

This offer will remain valid until the close of business on Wednesday, January 13, 2016 with an anticipated start date of Monday, February 1, 2016.  If the terms are agreeable, please sign, date and return one copy of this letter indicating your acceptance, retaining the second copies for your records.  

 

If you have questions or just wish to discuss things further, please don’t hesitate to contact me.

 

Sincerely,

 

/s/ Chris Page

 

Chris Page

Manager, HRBP - TA

Tandem Diabetes Care

 

I have read and accept this employment offer:

 

		
	
By:
	
/s/ Brian Hansen

	
 
	
Brian Hansen

	
 
	
 

	
Dated:  
	
1/12/16

 

 

 

 

 

 

 

 

Tandem Diabetes Care reserves the right to review all compensation plans and make changes, additions, and/or deletions at any time. 

	
	
s/ BH

	
BH

	
Initial each page

3

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