Document:

Exhibit 10.4

                                                                                                (English translation)

HK201102001

 

Premises Lease Contract

 

Party A (Party A): Beijing Xintaike Medical Device Co., Ltd.  (北京新太克医疗仪器有限公司)

 

Address: No.  30 Shengming Kexueyuan Road, Changping District, Beijing

 

Legal Representative: Hu Peixiang  (胡沛湘)

 

Party B (Party B): BeiGene (Beijing) Co., Ltd.

 

Address:

 

Legal Representative: JOHN VICTOR OYLER

 

WHEREAS:

 

1.                  Party A is the owner of the premises under this Contract, and has the right to legally lease the premises, accessory buildings and accessory facilities under this Contract;

 

2.                  Party B is a legitimate enterprise established in the People’s Republic of China (hereinafter referred to as “China” or the “PRC”) in accordance with the relevant laws of the PRC (see appendices hereto for Party B’s business license and other legal certificates);

 

3.                  Party A agrees to lease to Party B, and Party B wishes to lease from Party A, part of the premises, accessory buildings and accessory facilities and equipment under this Contract in accordance with the provisions hereof.

 

NOW THEREFORE, by adhering to the principles of equality, voluntariness, mutual benefit, and equal consideration, and through full and friendly consultation, the Parties hereby enter into this Contract regarding the lease of the Premises in Beijing on February 1, 2011 for mutual compliance.

 

Article 1                                               Purpose of Contract

 

Party A shall lease part of the premises, accessory buildings and accessory facilities under this Contract to Party B or its affiliate for its own office, scientific research and/or other legitimate activities, and Party B or its affiliate may engage in office, scientific research and other relevant business activities in such part.

 

1

 

Article 2                                               Subject Property of Contract

 

1.                  Party A shall lease part of the premises (hereinafter referred to as the “Premises”) in the Life Science Park in Changping District, Beijing (being the property, site and accessory facilities at No. 30 Shengming Kexueyuan Road, Changping District, Beijing) to Party B.  The building area of such part of the Premises is 6,144 m2.  The usable area and public area of the first floor are 3,848 m2 and 430.9 m2, respectively.  The usable area and public area of the second floor are 1,876 m2 and 44 m2, respectively.  The public area allocable to Party B is 303.5 m2 (see Article 2.4 of this Contract), and the total building area leased by Party B is 6,028 m2 (hereinafter referred to as the “Property”).  The specific scope of the leased Premises is set forth in Appendix 4: Site Plan of the Property Leased by Party B from Party A.

 

If Party A intends to lease other areas of the Premises (hereinafter referred to as the “Other Areas”), it shall notify Party B of the same seven (7) business days in advance.  Party B shall have the right of first refusal to lease the Other Areas upon the same conditions.  If Party B does not send a written reply to Party A within seven (7) business days after receiving Party A’s notice, Party B shall be deemed to have waived its right of first refusal to lease such areas.

 

2.                  Party A agrees that, subject to compliance with the relevant laws and regulations of the PRC and the management rules of the Park, Party B may hang its company sign outside of the building where the Property is located; provided, however, that the location and size of such sign shall be subject to Party A’s examination, consent and general arrangement.  Party A shall not refuse or oppose Party B’s request to hang its company sign without reasonable cause.

 

3.                  Entrances/exits of the first floor will be used as public entrances/exits.

 

4.                  The public places and shared facilities throughout Party A’s Premises shall be used jointly by Party B and other users.

 

The above public places and their public areas are as follows: 606.9 m2, including a boiler room (150.9 m2), a fire control and power distribution room (64 m2), elevators and stairwells (220 m2: 44 m2*5), the first-floor lobby (148 m2) and a power distribution room (24 m2).  The public areas and corresponding property management fees shall be allocated based on the proportion of area leased by Party B in the total building area.

 

5.                  Party B shall have the right to use outdoor parking spaces based on the proportion of area leased by Party B in the total building area.  Such parking spaces shall be used solely by Party B after the scope has been determined by Party A and Party B, as is more specifically set

 

2

 

forth in the figure in Appendix 4.

 

Article 3                                               Current Condition and Modification of the Property

 

1.                  Current condition of the Property

 

The Property under this Contract is developed and built by Party A, for which Party A has obtained the Construction Works Completion Inspection Certificate and is currently applying for the property ownership certificate.  Party A shall hand over the Property to Party B on an “AS IS” basis based on the Memorandum for Property Handover set forth in Appendix 5.

 

2.                  Renovation, decoration, alteration and modification of the Property during use

 

(1)             After the delivery of the Property, Party B may, based on reasonable arrangements on the use of Property, carry out the following renovation, decoration, alteration or modification of the Property without the consent of Party A; provided, however, that Party B shall report such renovation, decoration, alteration or modification to Party A for filing purpose seven (7) business days before the same is implemented.  Party B shall carry out renovation, decoration, alteration or modification strictly in accordance with the construction specifications provided by Party A (before Party B commences renovation, technical clarification shall be conducted by the Parties, and detailed construction specifications shall be provided to Party B); otherwise, Party B shall be responsible for repairing damages to the equipment and facilities of Party A (if any) and indemnifying third parties against their losses (if any).

 

Party B shall have the right to adjust the layout of the Premises based on its own business needs (excluding changes to the load-bearing structure of the leased Premises) or to carry out alteration, modification, renovation or decoration inside the leased Premises (excluding major structural changes to the Property).

 

(2)             After the delivery of the Property, Party B may, based on reasonable arrangements on the use of Property, carry out the following renovation and alteration of the Property, subject to the obtaining of Party A’s prior written consent and compliance with the management rules of the property management entity:

 

Major structural changes to the Premises inside the leased Premises.  For the purpose of this Contract, a major structural change refers to: any renovation or alteration of the Property by Party B shall be considered as major modification by Party B if such renovation or alteration will

 

3

 

significantly affect the roof, vertical walls, load-bearing walls or the main water or electricity pipeline systems of the Property.

 

(3)             Party A undertakes that, it will in principle agree to the reasonable renovation and alteration of the Property by Party B, and that it will not unreasonably refuse Party B’s reasonable request.  Party A shall provide Party B with a definite reply in writing within ten (10) business days after Party B submits a written application for renovation or alteration.  If Party A fails to give such written reply, Party A shall be deemed to have given its consent to Party B’s renovation or alteration plan.

 

(4)             After the delivery of the Property, any renovation or alteration of the Property by Party B shall be carried out at the sole cost of Party B, subject to compliance with the requirements set forth in the relevant laws and regulations of the PRC and the relevant management regulations of the local government and the completion of necessary approval procedures.  Party A shall provide necessary assistance to this end.

 

(5)             Party A shall be responsible for the repair work with respect to the foundational frame structure of the Premises to ensure Party B’s normal use.  Efforts shall be made to minimize the effects of such repair work on the operations of Party B.  If Party A entrusts Party B to conduct the repair work, the repair costs spent by Party B shall be offset against the rent or repaid by Party A in accordance with its agreement with Party B, and the Parties shall jointly negotiate and determine the specific schedule for the repair work.

 

Article 4                                               Delivery of the Property

 

1.                  Property delivery date:

 

(1)             Within two (2) business days from the date of the written notice on delivery of Property given by Party A to Party B, the Parties shall handle the Property handover procedures for the delivery of the Property by Party A to Party B and the timely acceptance of such delivery by Party B.

 

(2)             The Parties shall complete the Property handover procedures within two (2) business days.  The date of execution of the Memorandum for Property Handover shall be the date of actual delivery of the Property.

 

(3)             The Parties have tentatively scheduled the Property delivery date to occur before March 1, 2011.

 

4

 

2.                  Conditions to delivery of the Property:

 

(1)             Party A shall present the originals of the relevant documents and deliver copies thereof to Party B, including the Construction Land Planning Permit, the State-owned Land Use Certificate, the Construction Works Planning Permit, the Construction Works Commencement Permit, the Construction Works Completion Inspection Certificate, the whole set of engineering documents and drawings of the Property and the Fire Control Inspection Certificate (see Appendix 1).

 

(2)             Party A warrants that, the Property will have access to water, electricity, communications and other municipal utilities upon delivery to Party B.

 

(3)             Party A undertakes to provide Party B with public facilities for its exclusive use based on the following standards: water (DN100 inflow), low-voltage (380V) electricity (with a capacity of no less than 630KVA; the service entrance cabinet and switch as well as the equipment connected to the upper end of the service entrance cabinet shall be installed by Party A inside the leased Property, and the equipment connected to the lower end of the service entrance cabinet shall be connected by Party B) and natural gas pipelines (for the gas boiler).  Party A undertakes that the above facilities will provide uninterrupted supply 24 hours a day throughout the year (except for interruption of supply for any reason not attributable to Party A).  Party A also undertakes that, the above public facilities shall be installed and connected inside the Property leased by Party B for Party B’s normal use before the date of completion of Party B’s renovation works.  If the capacity of the above public facilities or the locations of connection and installation fail to meet the above standards as promised by Party A, Party A undertakes to make up the difference and re-connect the facilities at its own cost.  If the capacity of the above agreed standard fails to meet the needs of Party B for its normal use, Party B may add capacity on its own and at its own cost, for which Party A shall actively provide cooperation.

 

(4)             Party A and Party B shall sign the Memorandum for Property Handover upon the delivery of the Property, which will confirm the conditions in relation to the handover of the Property and its accessory facilities and equipment.

 

(5)             Party A shall hand over the Premises to Party B on an “AS IS” basis.  On the date of handover, Party A and Party B shall come to the site of the Premises to take photographs and make video recordings to confirm the current condition of the Premises.

 

5

 

Article 5                                               Lease Term; Payment Terms of Deposit and Rent

 

1.                  The lease term of the Property under this Contract (hereinafter referred to as the “Lease Term”) shall be ten (10) years, commencing from the date of execution of the Memorandum for Property Handover by Party A and Party B.  Party B shall have full right to use, operate and manage the Property to the extent of the lease.

 

2.                  If Party B is willing to continue to lease the Property upon the expiration of the Lease Term, Party B shall notify Party A of the same in writing within six (6) months before the expiration of the Lease Term, and the Parties will separately negotiate matters in relation to the lease contract.  Party B shall have the right of first refusal to lease the Property upon the same conditions.

 

3.                  Through friendly negotiation between the Parties, during the first five (5) years of the Lease Term, the rent for the first floor of the Property shall be rated at RMB2.7/m2 per day with an annual rent of Renminbi three million seven hundred ninety-two thousand two hundred and four (RMB3,792,204); the rent for the second floor of the Property shall be rated at RMB1.35/m2 per day for the first year with an annual rent of Renminbi nine hundred twenty-four thousand three hundred and ninety-nine (RMB924,399), which shall be adjusted to RMB2.7/m2 per day starting from the second year.  Moreover, the annual rent for the public areas shall be Renminbi two hundred ninety-nine thousand and one hundred (RMB299,100).  The total annual rent shall be Renminbi five million fifteen thousand seven hundred and three (RMB5,015,703) for the first year and Renminbi five million nine hundred forty thousand five hundred and ninety-four (RMB5,940,594) starting from the second year.  Upon the expiration of the first five-year period of the Lease Term, Party A and Party B shall adjust the above rent for one time based on the market rent of Zhongguancun Life Science Park.  The Parties have decided that the rent shall not be increased by more than 10%, and no subsequent adjustment shall be made to the rent.

 

4.                  Party A and Party B have set the deposit payable by Party B to Party A for the lease of the Property at Renminbi one million two hundred sixty-four thousand two hundred and thirty-two (RMB1,264,232), which shall be paid on the date this Contract.  Party A shall provide a legitimate receipt to Party B on the date of receipt of such deposit.

 

5.                  The Parties acknowledge that, the billing period for the rent payable by Party B to Party A shall be three (3) months.  Party B shall make payment of the total amount of rent payable for the first billing period on the date of formal delivery of the Property, i.e., Renminbi one million

 

6

 

two hundred sixty-four thousand two hundred and thirty-two (RMB1,264,232).  Afterwards, Party B shall, on the 10th day before the expiration of each billing period, pay rent for the next billing period to Party A.  Party A shall provide Party B with a legitimate property lease invoice within ten (10) days after receiving rent from Party B.

 

6.                  Party A and Party B acknowledge that, the rent-free period of the Property under this Contract shall be four (4) months plus ten (10) days, which shall be completely apportioned within the first three (3) years of the Lease Term.  The specific method is as follows: at the end of the first year of the Lease Term, Party A shall give Party B a rent-free period of one (1) month; at the end of the second year of the Lease Term, Party A shall give Party B another rent-free period of two (2) months; at the end of the third year of the Lease Term, Party A shall give Party B another rent-free period of one (1) month plus ten (10) days.  The rent for each of the above rent-free periods shall be deducted directly from the rent paid by Party B to Party A for the last billing period of the relevant year.

 

7.                  Party A shall install separate master water meter and master electricity meter for the Property leased by Party B to measure the water and electricity fees incurred within the Property leased by Party B separately.

 

The fees incurred by Party B during the Lease Term, including telephone and Internet fees and other actual costs, shall be directly paid by Party B.

 

8.                  Within the agreed Lease Term under this Contract, Party B shall bear risks regarding personal injuries, theft, robbery or loss of commodities, things of value and facilities, corrosion, floods and fires occurring in the leased Property.

 

9.                  Property management shall include: security, cleaning and landscaping of the public areas of the Property, repair and maintenance of public equipment and facilities, repair and maintenance of parking spaces and roads and all other work required to maintain the normal use of the entire Property.  The property management fees shall include: security fees, cleaning fees, landscaping fees, fees for repair and maintenance of public equipment and facilities, fees for gas heating (winter), garbage removal fees and wages of property service employees.

 

Party A shall be responsible for engaging a property management company to carry out the property management work.  Party B and other users of the Property may participate in such process, including, without limitation, selection of the property management company, employment of the property management employees, composition and amount of property

 

7

 

management fees and use of outdoor public areas.  Party B and other users of the Property shall enjoy voting or decision-making rights based on the respective proportion of the area leased or used by them in the total building area of the Premises.  The implementation of any decision shall be subject to the consent of holders of at least two thirds of the voting rights of all Property users.  If no such agreement can be reached, Party A shall select one of the alternatives.  Party A shall stipulate the above principle in lease agreements for other areas of the Premises other than the Property.

 

Invoices for property management fees shall be issued directly to Party B.

 

Article 6                                               Warranties and Responsibilities of the Parties

 

Warranties and Responsibilities of Party A

 

1.                  Party A warrants that, it has the land use right in relation to the Property and the ownership of the Property in accordance with the relevant laws and regulations of the PRC, and has the right to lease the Property to Party B for the purpose described in Article 1 hereof.  Party A warrants that, it will obtain the ownership certificate of the Property as soon as possible, and that the establishment of Party B will not be affected by the obtaining of this certificate.

 

2.                  Party A warrants that, it has the right to legally lease the Property, and that no mortgage or any other type of security interest has been created over the Property as of the date hereof and as of the delivery date of the Property.

 

3.                  Party A warrants that, as of the date hereof and as of the delivery date of the Property, the ownership of the Property hereunder or the relevant buildings and accessory facilities and equipment has not been sold, transferred or donated to other persons or entities; there is no dispute, litigation or arbitration in relation to the Property, nor is there any adverse encumbrance or liability that seizes, freezes or otherwise restricts Party B’s use of the Property.

 

4.                  During the Lease Term, Party A shall not interfere with the lawful use of the Property by Party B for business, office and other purpose in accordance with the conditions and purposes set forth in this Contract; provided, however, that Party B shall not breach the provisions hereof.

 

5.                  Upon any change in the ownership of the Property after the execution of this Contract, Party A shall notify Party B in writing of the same in advance, and Party B shall have the right of first refusal to purchase the Property upon the same conditions.

 

8

 

6.                  If Party B needs Party A to provide documents in relation to the leased Property for the purpose of completing business-related application and approval procedures, Party A shall assist Party B by providing such documents.

 

7.                  Party A shall complete the relevant filing and registration procedures concerning the lease of the Property in accordance with law.

 

8.                  Subject to the timely payment of the relevant utility fees by Party B, Party A shall, in accordance with the provisions hereof, ensure that Party B may have access to uninterrupted supply of water, electricity, gas and other utilities that are required for the use of the Property and connected directly to the Property in accordance with the provisions hereof .  Party A further warrants that, the supply of the above utilities in the Property will not be interrupted due to any default in payment of the relevant utility fees by other tenants/owners.  If the supply of utilities in the Property is threatened to be interrupted due to any default in payment of the relevant utility fees by the relevant tenants/owners, Party A shall pay the relevant overdue fees to the relevant utility supplier on the next business day after the date on which it becomes aware of such threat.  If Party A fails to make payment of such utility fees in a timely manner, Party B shall have the right to make payment to the relevant utility supplier on its own; provided, however, that Party B shall have the right to recover such fees from Party A.  Except for the above interruption of supply due to any default in payment of utility fees by other tenants/owners, Party A shall not bear any liability for any interruption of supply of water, electricity, gas and other utilities caused by any reason that is not on the part of Party A.  If Party B suffers any losses due to any interruption or termination of supply of any utility that is caused by any fault on the part of Party A (including, without limitation, the failure of Party A to make timely payment of the overdue utility fees on behalf of the relevant tenants/owners), Party A shall bear indemnification liability.

 

9.                  If Party A breaches the above representations and warranties, it shall bear the corresponding liability for breach of contract.

 

Warranties and Responsibilities of Party B

 

1.                  Party B shall make timely and full payment of rent, property management fees and utility fees in accordance with the provisions of this Contract.  Party B shall not delay or refuse the payment of rent and property management fees for any reason.  In the event of any dispute in relation to property management or other matters that are not related to rent, Party B shall first make payment of rent and property management fees before seeking resolution of such dispute.

 

9

 

2.                  Party B shall manage the cleaning and security inside the leased Property and the facilities invested by it, and shall be responsible for maintaining the cleanliness of the Property and public areas and for keeping the facilities and equipment in good condition.

 

3.                  If the Property is damaged due to fire, accident or other emergency situations, Party B shall immediately handle such situation in a proper manner and promptly notify Party A of the same.

 

4.                  Party B shall use and protect the Property in a normal manner, and prevent the Property from any abnormal damage (except for normal wear and tear or depreciation).  In the event of any undue damage or malfunction of the Property for any reason solely attributable to Party B, Party B shall notify Party A of the same immediately and carry out necessary repair after the occurrence of such damage or malfunction.

 

5.                  Party B shall be responsible for the maintenance and management of its alterations and renovations as well as the facilities and equipment installed by it.  If any third party suffers any damage due to Party B’s alterations and renovations or the facilities and equipment installed by it, Party B shall bear the indemnification liability.

 

6.                  Party B warrants that, it will use the leased Property for legitimate business activities.

 

7.                  Party B shall not raise any animal or pet inside the Property (except for the purpose of conducting scientific researches), or place on the floor of the Property items that exceed the designed load, or store weapons, ammunition, saltpeter, gunpowder, gasoline or other dangerous inflammables and explosives, prohibited goods or drugs with strong odor inside the Property, or manufacture or leak any gas that has strong odor or pollutes the environment inside the Property, or make noise, create vibration or disturb third parties inside the Property.

 

8.                  Party B shall minimize odors that may be produced during its business activities.  If Party B has any dispute with other Premises users because of such odors, Party B shall be responsible for resolving such dispute.

 

9.                  If Party B breaches the above representations and warranties, it shall bear the corresponding liability for breach of contract.

 

Article 7                                               Use, Maintenance and Repair of the Property

 

1.                  Party A agrees that, Party B may use the Property for its own office, scientific research and other commercial purposes falling within its legal scope of business (hereinafter referred to

 

10

 

as the “Defined Purposes”).  Party A warrants that, the Property complies with laws, regulations and government rules with respect thereto and may satisfy the above Defined Purposes of Party B since the date of delivery.

 

2.                  Party B may place in or move out of the Property any inventory, tool, machine, furniture, facility, equipment or other tangible property that is owned or may be legally used by Party B (which is not owned by Party A) (hereinafter referred to as “Party B’s Property”).

 

3.                  From the date of delivery of the Property, Party B shall be responsible for the inspection, repair and maintenance of the Premises, accessory buildings and accessory facilities within the scope of lease.

 

4.                  During the Lease Term, if the Premises, accessory buildings and accessory facilities of the Property are damaged for any reason on the part of Party B or any third party connected therewith, Party B shall bear the indemnification liability (except for natural and normal wear and tear).

 

Article 8                                               Assignment of Rights and Obligations under This Contract and Sub-lease of Property

 

1.                  During the Lease Term, Party B may sub-lease portions of the Property hereunder to third parties; provided, however, that Party B shall obtain the written consent of Party A and be jointly and severally liable to Party A as guarantor.

 

2.                  After the execution of this Contract, if Party A intends to sell the Property to a third party, it shall notify Party B of the same in writing one (1) month in advance, and Party B shall have the right of first refusal to purchase the Property upon the same conditions.  If Party B does not send a written reply to Party A within one (1) month, Party B shall be deemed to have waived such right of first refusal.

 

Article 9                                               Return of the Leased Property

 

1.                  Upon the expiration of the Lease Term or the early rescission of this Contract, Party B shall restore the Property to its original condition (except for parts that cannot be restored to their original condition or are not required by Party A to be restored to their original condition, and for normal wear and tear and depreciation) and return it to Party A within the time limit under Article 13 of this Contract.

 

11

 

2.                  Upon the expiration of the Lease Term or the early rescission of this Contract, Party B shall return the leased Property in good repair to Party A, and jointly inspect the leased Property and its accessory facilities with Party A in accordance with the Memorandum for Property Handover.  If any damage is found (except for natural wear and tear), Party B must bear the indemnification liability.

 

If Party B fails to restore the Property to its original condition in accordance with the provisions hereof, and Party A must carry out the restoration of the Property, the costs incurred by Party A during such restoration shall be borne by Party B.

 

3.                  Upon the expiration of the Lease Term or the early rescission of this Contract, Party B shall return all keys to the leased Property to Party A.

 

4.                  If Party B fails to return the leased Property within the agreed time limit, any decoration, furniture, device, thing, material, equipment or other item of Party B in the leased Property shall be deemed to have been abandoned by Party B.  Party A shall have the right to dispose of such items in any manner, and Party B shall not make any objection, hold Party A accountable or demand indemnification by Party A.

 

5.                  Time of return of deposit for the lease of Property: within sixty (60) days from the date of return of the leased Property by Party B in accordance with the provisions of this Contract, Party A shall return the deposit to Party B in a lump sum without interest after deducting fees owed but not paid by Party B (Party A shall inform Party B of such fees in writing and obtain written confirmation from Party B).

 

Article 10                                        Liability for Breach of Contract, Termination of Contract and Exclusion of Liability

 

Liability for Breach of Contract:

 

1.                  If Party A delays the delivery of the Property, it shall pay liquidated damages to Party B in an amount equal to twice of the daily rent for each day of delay;

 

2.                  If Party B delays the payment of rent and fees payable to Party A, it shall pay liquidated damages to Party A in an amount equal to twice of the daily rent and fees payable by it for each day of delay.

 

3.                  If Party B prematurely rescinds the lease within the ten-year Lease Term under this Contract without any cause, Party B shall indemnify Party A against the losses suffered by it

 

12

 

based on the following formula.  Indemnification formula: indemnification amount = (remaining months of the Lease Term / 120 months) * 12 months * monthly rent.  If the indemnification amount is less than three-month rent, Party B shall pay an indemnification amount equal to three-month rent to Party A.

 

4.                  If Party A prematurely recovers the Property within the ten-year Lease Term under this Contract without any cause, Party A shall indemnify Party B against the losses suffered by it based on the following formula.  Indemnification formula: indemnification amount = (remaining months of the Lease Term / 120 months) * 12 months * monthly rent.  If the indemnification amount is less than three-month rent, Party A shall pay an indemnification amount equal to three-month rent to Party B.

 

Rescission of Contract:

 

In any of the following circumstances, Party A shall have the right to rescind this Contract and recover the leased Property:

 

1.                  Party B fails to pay the rent or other amount payable under this Contract on the due date, and further fails to pay the same within thirty (30) days after Party A sends a written notice and demand for payment to Party B;

 

2.                  If Party B and its employees breach the provisions of this Contract, which causes losses to Party A, Party A shall send a written notice to Party B together with the relevant proof.  Upon confirmation of such losses, Party B shall provide indemnification in an amount equal to such losses and make correction within seven (7) days after receiving such written notice.  If Party B fails to make correction within fifteen (15) business days, Party A shall have the right to terminate this Contract;

 

3.                  Party B becomes bankrupt or enters into liquidation;

 

4.                  Items of Party B in the Property are seized or detained for debt issues of Party B, which prevents Party B from continuing the performance of this Contract.

 

In the event of early rescission of this Contract for any of the above reasons, Section 3 of the Liability for Breach of Contract clause of Article 10 hereof shall apply, and the notice of rescission of contract shall take effect and have the effect of rescinding this Contract as of the date of service upon Party B.

 

In any of the following circumstances, Party B shall have the right to rescind this Contract:

 

13

 

1.                  The Property is seized or detained for debt issues of Party A, which prevents Party B from continuing the performance of this Contract.

 

2.                  Party A becomes bankrupt or enters into liquidation.

 

In the event of early rescission of this Contract for any of the above reasons, Section 4 of the Liability for Breach of Contract clause of Article 10 hereof shall apply, and the notice of rescission of contract shall take effect and have the effect of rescinding this Contract as of the date of service upon Party A.

 

Exclusion of Liability:

 

If Party B and other persons suffer property damage or personal injury for any of the following reasons beyond the control of Party A, Party A shall not bear any liability:

 

1.                  Suspension of use of public facilities for the purpose of carrying out necessary building maintenance and repair works or for any reason (such as unexpected facility failure, including, without limitation, air conditioning, electricity and gas facilities) not attributable to Party A (except for default in payment of utility fees by other tenants/owners);

 

2.                  Damage or destruction of any public facility or service pipeline caused by any reason attributable to Party B that leads to interruption of use or requires interruption of use for repair purpose;

 

3.                  Current change in power supply due to any reason attributable to Party B;

 

4.                  Losses caused by fire, water leakage and electricity leakage due to any reason attributable to Party B;

 

5.                  Personal injury or property damage to Party B caused by natural disasters, force majeure and reasons inside and outside of the leased Property that are not attributable to Party A;

 

6.                  Loss of property of Party B for theft or any other reason;

 

7.                  Personal injury or property damage to Party B or any third party due to any reason attributable to Party B, other tenants in the Property or their related persons or any third party;

 

8.                  Effect of government policies, orders or actions on Party B.

 

Article 11                                        Force Majeure

 

1.                  If either Party is prevented from performing the relevant obligations under this Contract in accordance with the agreed terms by any force majeure event that could not have been foreseen at the time of conclusion of this Contract by the Parties, the occurrence and

 

14

 

consequences of which cannot be prevented or avoided (including war, flood, earthquake, storm and other natural disasters and changes in relevant laws or policies of the government), the Party affected shall immediately notify the other Party of the circumstances, and shall, within fifteen (15) days from the date of occurrence of such force majeure event, provide the other Party with the relevant details as well as valid documents proving that it cannot perform or must delay the performance of the relevant obligations hereunder, whether in whole or in part.

 

2.                  When a force majeure event occurs, neither Party shall be liable to the other Party for any damage, increased cost or loss suffered by the other Party due to its failure or delay in performing this Contract as a result of such force majeure event, and such failure or delay in performing this Contract shall not be considered as a breach of this Contract.  The Party that suffers the force majeure event shall take proper measures to mitigate or eliminate the effects of the force majeure event, and strive to resume performance of the obligations delayed or prevented by such force majeure event as soon as practicable.

 

3.                  If any force majeure event or the effects of such force majeure event have prevented either Party or both Parties from performing all of its/their obligations under this Contract for sixty (60) or more days, the Parties shall negotiate to determine whether to terminate this Contract, waive part of the obligations under this Contract, or postpone the performance of this Contract based on the effects of such force majeure event on the performance of this Contract.

 

Article 12                                        Government Requisition, Expropriation or Demolition

 

1.                  If the leased Property under this Contract is requisitioned, expropriated or demolished, in whole or in part, due to the occurrence of any municipal planning event, Party A shall, within three (3) business days from the date of receipt of a written notice from the government regarding such requisition, expropriation or demolition, deliver to Party B a copy of such written notice, and shall, subject to the principle that Party A will use its best efforts to guarantee that Party B may maintain its operations at such location, collaborate with Party B to negotiate with the entity demanding such requisition or expropriation or the relevant governmental authority in order to seek the following:

 

(1)             Exemption from the requisition or expropriation, or the provision of another place of business with similar conditions in a neighboring area by the entity demanding the requisition or expropriation in order for the continued operation of Party B;

 

15

 

(2)             If the condition set forth in the above item (1) cannot be achieved, Party A shall actively provide Party B with another place of business with similar conditions in a similar area.  If Party A cannot provide such place of business, or the place of business provided by Party A fails to satisfy Party B’s needs, Party A shall assist Party B in searching for a place of business with similar conditions in a similar area and in signing a new lease contract with a new lessor, upon which, this Contract shall be rescinded, and Party A shall return to Party B the rent that has been paid but has not been incurred;

 

(3)             If neither of the conditions set forth in the above items (1) and (2) can be achieved, Party B shall have the right to terminate this Contract.  With respect to the compensation received for the requisition, expropriation or demolition of the Property due to government planning, the compensation for the land use right and property ownership in relation to the Property and Party A’s ancillary equipment and facilities shall belong to Party A, while the compensation in relation to Party B shall belong to Party B.

 

Article 13                                        Disposition of Property upon Expiration of Term of Business or Early Rescission or Termination of Contract

 

If this Contract is terminated due to the expiration of the Lease Term or early rescission of this Contract by Party A, Party A shall send a written notice on return of Property to Party B thirty (30) days in advance.  If this Contract is terminated due to early rescission of this Contract by Party B, Party B shall send a written notice on return of Property to Party A thirty (30) days in advance.  Party B shall return the Property to Party A on the date of termination of this Contract.

 

Within the above period for the return of Property, Party B shall have the right to remove or retrieve facilities and equipment added by it during its renovation and modification of the leased Property in accordance with the provisions hereof that can be directly moved out.  Those that have become legal attachments or renovations shall belong to Party A.

 

If Party B fails to return the Property within the above period, from the date immediately after the expiration of such period, Party B shall, in addition to paying rent on a daily basis at the rate set forth herein, pay liquidated damages to Party A at the rate of the daily rent (applicable upon the return of Property).

 

16

 

Article 14                                        Confidentiality

 

The Parties shall have the obligation of maintaining the content set forth herein in confidence.  Without the permission of the other Party, neither Party may publish any information regarding this Contract; otherwise, the breaching Party shall pay liquidated damages to the non-breaching Party in an amount of Renminbi five hundred thousand.

 

Article 15                                        Amendment

 

Any amendment to this Contract shall be subject to the mutual agreement of the Parties and be made in writing.

 

Article 16                                        Governing Law and Dispute Resolution

 

1.                  The execution, effectiveness and interpretation of this Contract and the resolution of any dispute arising during the implementation of this Contract shall be governed by the PRC laws.

 

2.                  This Contract shall be made in six (6) originals of the same legal force.  Party A and Party B shall each hold two (2) originals, and the remaining originals shall be used for the completion of approval and registration procedures with the relevant governmental authorities.

 

This Contract shall take effect as of the date on which it is signed and sealed by representatives of Party A and Party B.  If any dispute arises during the implementation of this Contract, the Parties shall first resolve such dispute through friendly negotiation.  If no agreement can be reached through negotiation, either Party shall have the right to file a lawsuit with the people’s court of the place where the Property under this Contract is located.

 

3.                  With respect to matters not covered in this Contract, the Parties may enter into a written supplementary contract after reaching agreement through negotiation, which shall have the same legal force as this Contract.

 

Party A (seal): Beijing Xintaike Medical Device Co., Ltd. (seal)

Representative (signature):

 

Party B (seal): BeiGene (Beijing) Co., Ltd. (seal)

Representative (signature):

 

Date of Execution:

 

17

 

Appendices:

 

Appendix 1: Construction Land Planning Permit, Construction Works Planning Permit, Construction Works Commencement Permit, Fire Control Inspection Certificate and Construction Works Completion Inspection Certificate of Party A;

 

Appendix 2: Business License and Other Legal Certificates of Party A;

 

Appendix 3: Business License and Other Legal Certificates of Party B;

 

Appendix 4: Site Plan of the Property Leased by Party B from Party A;

 

Appendix 5: Memorandum for Property Handover;

 

18

 

Entrusted Property Management Contract

 

for

 

“No.  4 Land Project of Zhongguancun Life Science Park”

 

Principal (Party A): Beijing Xintaike Medical Device Co., Ltd. (北京新太克医疗仪器有限公司)

 

[Owners Committee] [Owner]

 

Principal’s Business License Registration Number: 110000410209814

 

Legal Representative: Hu Peixiang (胡沛湘)                Telephone: 61779995

 

Mailing Address: Building No. 1, No. 30 Kexueyuan Road, Changping District, Beijing

 

Postal Code: 102206

 

Property Service Company (Party B): Beijing Xinshiyiyang Property Management Co., Ltd. (北京欣适逸扬物业管理有限公司)

 

Business License Registration Number: 110105010755560

 

Business Qualification Certificate Number:

 

Organization Code: 67173518-X

 

Legal Representative: Yang Shouyi (杨守毅)            Telephone: 84708686-6501

 

Mailing Address: Grand Hills, Chaoyang District, Beijing

 

Postal Code: 100015

 

In accordance with the Contract Law of the People’s Republic of China, the Property Law of the People’s Republic of China and other relevant laws and regulations, and on the basis of the principles of voluntariness, equality, fairness and good faith, the Parties have entered into this Contract through negotiation regarding property services for the Xintaike Building in Zhongguancun Life Science Park (hereinafter referred to as the “Property”).

 

I.                                                Basic Information of the Property

 

1.                  Type of Property: factory and office building.

 

19

 

2.                  Location: Building No. 1 of Zhongguancun Life Science Park, No. 30 Kexueyuan Road, Changping District, Beijing.

 

3.                  Land area: 15,742 m2; building area: 12,000 m2.

 

4.                  The beneficiaries of the services provided by Party B shall be all owners and users of the Property.

 

5.                  The “Entrusted Property Management Services” referred to in this Contract shall mean the property management services provided by Party B to all owners and users of the Property.

 

6.                  The “Employees” referred to in this Contract shall mean the employees hired by Party B for the management of the Property.

 

II.                                           Entrusted Management Matters

 

1.                  Security Management

 

Party B shall be responsible for the security management of the office building.  It shall register visitors and patrol within the office building 24 hours a day.

 

2.                  Public Services

 

a.                  Repair, maintenance and management of shared parts of the building, including, without limitation, floors, roof, exterior walls and load-bearing structure.

 

b.                  Repair, maintenance, management and operation of shared facilities and equipment, including: shared and used water supply and drainage pipelines, downspouts, garbage chutes, chimney, shared lighting, antennae, heating pipelines, heating boiler room, high-pressure water pump room, power distribution room, ELV system and firefighting facilities and equipment.

 

c.                   Daily repair, maintenance, management and servicing of public facilities and accessory buildings and structures, including roads, outdoor water supply and drainage pipelines, septic tanks, ditches, pools, wells, bicycle shelters and parking lots.

 

d.                  Maintenance of public order and security in the office building, including, without limitation, security monitoring, patrols and gate sentries.

 

e.                   Management of cleaning and sanitation in the office building, collection and removal of garbage, and ensuring a tidy and comfortable environment.

 

f.                    Management and maintenance of landscaping, vegetation, flowers and trees in the public areas.

 

20

 

g.                   Management of engineering drawings in relation to property management, resident and user files, completion inspection materials, customer files and customer complaint and complaint resolution records.

 

h.                  Handling of all complaints and repairs in relation to the Property.

 

i.                      Being responsible for collecting property management service fees and other fees from owners and users of the Property.

 

III.                                      Term of Entrusted Management

 

The term of the entrusted property management services shall be two (2) years, from September 1, 2011, to August 31, 2013.

 

IV.                                       Service Standards and Quality

 

1.                  Repair Service Standards for the Premises and Public Facilities and Equipment

 

a.                  Premises appearance: exterior walls shall be clean and nice, free from any damage or peeling off.

 

b.                  Equipment operation: the normal operation of public equipment shall be maintained.

 

c.                   Repair and maintenance of public premises, facilities and equipment:  the public premises, facilities and equipment shall be inspected regularly.  Any problem found during the inspection shall be repaired promptly.  Upon the receipt of a request for repair, Party B shall promptly carry out the repair and strive to repair the damage as soon as possible.  Any special situation shall be promptly reported to the owners or users of the Property.  Meanwhile, repair records shall be maintained, and a system for revisit after repair shall be established.

 

2.                  Environmental Sanitation Service Standards

 

Party B shall regularly perform planned cleaning of public areas of the office building.  Garbage cans shall be emptied regularly.  Party B shall ensure that floors of the building are clean, that walkways of the building have no blind spot, and that walls have no posting or smear.  Accumulated water and snow shall be cleared promptly.  Ownerless clutter and debris (items) shall be controlled or removed promptly.

 

3.                  Landscaping Service Standards

 

Landscaping management and services shall be provided.  Party B shall conduct daily professional maintenance and management of the green spaces, flowers, trees and lawns in the public areas.  Flowers and trees shall be trimmed promptly to allow their overall effect to be aesthetically pleasing and appreciable.  Party B shall prevent pests and promptly replace withered plants.

 

21

 

4.                  Security Service Standards

 

24-hour security guard and security monitoring shall be provided.  Security guards shall be arranged at all of the main entrances/exits.  Personnel shall be scheduled for daily patrols.  Response plans shall be in place for emergencies.  Party B shall guarantee the normal operation of all safety technology protection equipment in the office building and ensure that the equipment can fulfill its security and protection functions.  Party B shall actively contact and properly cooperate with public security organs, judicial authorities and administrative departments in the handling of all violations of the law in the building.

 

5.                  Centralized Fire Control Service Standards

 

A firefighting management system shall be established for 24-hour fire protection and monitoring.  Firefighting equipment shall be inspected regularly.  Fire safety inspection of the office building shall be conducted regularly, and fire hazards shall be removed promptly.  Party B shall ensure that there is no fire hazard in the public areas.

 

6.                  Customer Service Standards

 

A sophisticated customer service system shall be established.  The property management employees shall serve with enthusiasm, follow standards, use civilized language and have kind attitudes.  Party B shall register all visitors and inform the relevant owners or users of the Property by telephone.  Visitors may be allowed to enter only after the consent of the relevant owners or users of the Property has been obtained.  If visitors are allowed to enter, Party B shall be responsible for guiding them to the designated locations in the Property.

 

V.                                            Property Service Fees

 

1.                  Party B shall collect property service fees in advance on a quarterly basis from the owners (or persons obligated to make payment) at the rate of RMB7/m2 per month.

 

2.                  The property service fees shall cover the following:

 

a.                  Wages and social insurance premiums of the management service employees, including all benefits and bonus payments.

 

b.                  Daily operation and maintenance costs of the shared parts, facilities and equipment of the Property and public liability insurance premiums;

 

22

 

c.                   Cleaning and sanitation costs for areas falling with the scope of property management, landscaping maintenance costs and order maintenance costs;

 

d.                  Office expenses;

 

e.                   Depreciation of fixed assets of the property management company;

 

f.                    Other fees: other fees payable for the entrusted services under this Contract and other fees required to be incurred during the normal operations of Party B.

 

3.                  Compensation shall be paid to Party B at the rate of RMB6,000 per month.  After Party B has performed its obligations and met the standards under this Contract, Party B may withdraw such money from its account before the 5th day of the following month.

 

4.                  Balance of the property management fees collected in each year remaining after the payment of the property service fees and Party B’s compensation (if any) shall be carried forward to the next year as part of the total property management fees of the next year.

 

5.                  The Parties agree to engage a professional organization to be selected by the Parties through negotiation to audit the annual budget and final accounts of the property service funds as well as the receipts and payments in relation to the property service funds.  The costs of engaging such professional organization shall be considered as property service expenditures.

 

6.                  Party B shall set and apply in the Property rates for the repair, maintenance and other special services for the self-used parts and equipment in premises of owners in a reasonable and open manner.

 

7.                  If the owners and users of the Property fail to pay the property management fees in a timely manner, late fees may be collected in accordance with the provisions of the Management Rules.

 

VI.                                       Rights and Obligations of the Parties

 

(1)             Rights and Obligations of Party A

 

1.                  To examine, approve and supervise the implementation of the property service plan and plan for budget, final accounts and expenditures of Party B;

 

2.                  To have information right with respect to the property service matters of the Property;

 

3.                  To have the right to make recommendations to and supervise Party B;

 

4.                  To examine the use of proceeds from the shared parts and facilities of the Property;

 

23

 

5.                  To provide Party B with suitable office space for its provision of property services and dormitories for the security staff;

 

6.                  To assist Party B in its performance of property services in the Property;

 

7.                  To urge owners or users of the Property that fail to pay the property service fees in a timely manner to make such payments;

 

8.                  To assist with the handover and inspection of the Property;

 

9.                  To urge all owners to perform this Contract and comply with the Management Rules and the property management rules and regulations, and to urge owners that fail to pay the property service fees in a timely manner in violation of the property service contract to pay the property service fees within a specified time limit;

 

10.           To have other rights and obligations of Party A under the relevant laws, regulations and rules or the Management Rules;

 

(2)             Rights and Obligations of Party B

 

1.                  To implement the property service management system and plan for budget and final accounts of property expenditures as authorized (approved) in writing by Party A or provided in this Contract;

 

2.                  To require Party A and owners or users of the Property to cooperate with it in its performance of management services;

 

3.                  To collect property service fees from the owners and users of the Property;

 

4.                  If any owner or user of the Property violates the interest of other owners and the property management company or violates the property management system, Party B shall have the right to take measures based on the severity of such violation, such as dissuasion, prevention or reporting to the owners committee; such owner or user shall bear legal liability if its action causes damages to Party B or other owners;

 

5.                  To urge the owners (or persons obligated to make payment) to pay the property service fees if they fail to pay the property service fees as required, and to file a lawsuit with the court in accordance with law if any of such owners or persons further fails to pay the property service fees after being urged to do so;

 

6.                  To hand over the property management right, withdraw from the Property, assist Party A in the handover of property services and subsequent work, and return all materials 

 

24

 

delivered by Party A for its management or keeping to Party A or another property company selected by Party A upon the termination of this Contract;

 

7.                  To properly keep the general completion layouts, as-built drawings of single buildings, structures and equipment, as-built drawings of ancillary facilities and underground pipe network and other completion inspection materials received by Party B;

 

8.                  To manage the Property strictly in accordance with the management scope and quality standards set forth in this Contract, to formulate work plans for the performance of property management services and annual management plans, and to establish effective management mechanisms and plans for daily and unexpected situations;

 

9.                  To inform owners intending to carry out decoration and renovation of prohibited actions and precautions during such decoration and renovation in advance, and to remind them to accept inspection or testing by the relevant authorities or professional organizations after completion;

 

10.           To announce events and other social activities through mail, telephone and billboard (website);

 

11.           Neither Party shall disclose any information in relation to the Parties’ property management to any third party, whether during the implementation of this Contract or after the termination of this Contract;

 

12.           Without authorization, Party B shall not occupy the shared areas, facilities and equipment in the Property or change the use thereof, and shall not occupy or excavate roads and sites in the Property.  If roads and sites in the Property do need to be temporarily occupied or excavated, the relevant procedures shall be completed, and the construction plan shall be formulated, in each case, in accordance with the relevant regulations.  Party B shall publicize the construction project in the Property before the commencement of construction works, minimize the effects of construction works on normal order, and promptly restore the relevant roads and sites to their original condition.  In emergency situations, Party B may commence construction works for public interest without going through the above procedures; provided, however, that explanations shall be provided afterwards;

 

13.           If additional facilities and equipment are needed for the Property, Party B shall negotiate with Party A to resolve the problem;

 

25

 

14.           To bear liability for, and be responsible for the settlement of, accidents caused by reasons on the part of Party B;

 

15.           To establish a sophisticated property service system, and to solicit advice from Party A regarding the content of such system;

 

16.           Party B shall hire Employees based on the needs of the Property and the budget for the management fees, who shall have the appropriate qualification certificates and sign labor contracts, and shall pay their wages and benefits;

 

17.           Party B shall not assign any of the rights and obligations hereunder to any third party in any manner except with the written consent of Party A;

 

18.           To have other rights and obligations of Party B under the laws, regulations and rules of the PRC or the Management Rules.

 

VII.                                  Amendment or Termination of Contract

 

1.                  The Parties may amend and supplement the provisions of this Contract, which shall take effect only after the Parties have reached agreement through negotiation and entered into a valid written contract.  The supplementary contract shall have the same force as this Contract.

 

2.                  Party A and Party B agree that, this Contract may be prematurely terminated in any of the following circumstances.

 

a.                  The Parties reach agreement through negotiation and enter into a written agreement.

 

b.                  The performance of this Contract is prevented by force majeure.

 

26

 

c.                   Either Party materially breaches or fails to perform any provision of this Contract, and further fails to correct such breach and perform the relevant provision within the specified time limit after the receipt of a written notice from the other Party.

 

d.                  Either Party enters into liquidation for bankruptcy caused by legal sanction, or becomes subject to automatic liquidation.

 

3.                  Upon the expiration of this Contract, if Party A decides not to further engage Party B, it shall send a three-month written notice to Party B; if Party B decides to refuse further engagement, it shall send a three-month written notice to Party A.

 

4.                  If neither Party expresses its intent to terminate this Contract in writing within three (3) months before the expiration of this Contract, this Contract shall be automatically extended for two (2) years.

 

5.                  Upon the termination of this Contract and before a new property management company has been engaged to take over the Property, Party B shall, upon the request of Party A, continue to provide property management services to Party A, and the owners (or persons obligated to make payment) shall also continue their payment of the property service fees; provided, however, that such period shall not be longer than three (3) months.  After three (3) months, Party A shall pay liquidated damages to Party B in an amount equal to 0.5% of the annual property management fees for each day of delay.

 

VIII.                             Liability for Breach of Contract and Dispute Resolution

 

1.                  Any dispute arising out of the performance of this Contract or in connection herewith shall first be resolved by the Parties through friendly negotiation.  If no agreement can be reached through negotiation, a lawsuit may be filed with the people’s court with competent jurisdiction, which shall be governed by the PRC laws.

 

2.                  If any owner defaults in the payment of property service fees, Party B may additionally collect liquidated damages in an amount equal to 0.5% of the fees payable by such owner for each day of delay starting from the date immediately after the due date.

 

3.                  If Party B takes emergency measures in unforeseeable circumstances (such as gas leaks, electricity leaks, fires, breaking of water pipes, rescue of human lives or assistance with public security organs in executing tasks) to protect the interest of the public, owners or users of the Property, which cause property damage, such damage shall be handled by the Parties in accordance with the relevant laws.

 

27

 

IX.                                      Exclusion of Liability

 

1.                  Party B shall not bear any legal liability for losses caused by temporary suspension of supply of water and electricity or use of shared facilities and equipment, if such temporary suspension is necessary for the repair and maintenance of public parts and shared facilities and equipment of the Property and has been notified to the owners and users of the Property in advance.

 

2.                  Party B shall not bear any legal liability for losses caused by failure of water supply, electricity supply, gas supply, heating, communications and cable television facilities or other shared facilities and equipment that occurs other than as a result of Party B’s fault.

 

3.                  Party B shall not bear any liability for the personal and property damage of Party A or the loss of shared facilities and equipment that is caused by natural disasters or other force majeure events.

 

X.                                           Service

 

1.                  All notices hereunder shall be in writing, and shall be deemed to have been sufficiently served if: (a) delivered in person; or (b) otherwise sent by delivery-guaranteed mail with receipt acknowledgement from the other Party.

 

XI.                                      Supplementary Provisions

 

1.                  The Parties may amend and supplement the provisions of this Contract by entering into written supplementary agreement, which shall have the same force as this Contract.

 

2.                  Appendices hereto are valid parts of this Contract.  The text written in the blank spaces of this Contract and the appendices hereto shall have the same force as the printed text.

 

3.                  Matters not covered in this Contract and the appendices and supplementary agreements hereto shall be governed by the relevant laws, regulations and rules of the PRC or otherwise resolved by the Parties through negotiation.  The effectiveness, interpretation and performance of this Contract shall be governed and protected by the laws of the PRC, and no mandatory provision of the laws shall be violated.

 

4.                  The Parties agree that, the takeover and inspection procedures shall be handled for matters entrusted by Party A to be managed from the date immediately after the effective date of this Contract.

 

28

 

5.                  During the term of validity of this Contract and for a period of two (2) years after the termination of this Contract, Party B shall not disclose the business condition or any other business information and secret of Party A to any party other than Party A, nor shall it use any material or document in relation to the management of the Property, whether publicly or in private, without the permission of Party A.

 

6.                  This Contract shall be made in four (4) originals of the same legal force, which shall take effect as of the date on which it is signed and sealed by the Parties.  Party A and Party B shall each hold two (2) originals.

 

	
Party A: Beijing Xintaike Medical Device Co., Ltd.   (seal)
    	
 
    	
Party B: Beijing Xinshiyiyang Property Management   Co., Ltd. (seal)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Authorized Representative:
    	
 
    	
Authorized   Representative:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
Date:
    

 

29Exhibit 10.9

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (this “Agreement”) is made and entered into as of this 13th day of July, 2015, by and between BeiGene USA, Inc., (the “Company”), a subsidiary of BeiGene, Ltd., and Howard Liang (the “Employee”).

 

W I T N E S S E T H :

 

WHEREAS, the Company desires to employ Employee and to enter into this Agreement embodying the terms of such employment, and Employee desires to enter into this Agreement and to accept such employment, subject to the terms and provisions of this Agreement.

 

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are mutually acknowledged, the Company and Employee hereby agree as follows:

 

Section 1.                                           Definitions.

 

(a)                                 “Accrued Obligations” shall mean (i) all accrued but unpaid Base Salary through the date of termination of Employee’s employment, (ii) any unpaid or unreimbursed expenses incurred in accordance with Section 7 hereof, (iii) any unpaid Annual Bonus in respect of any completed fiscal year that has ended prior to the date of Employee’s termination, which amount shall be determined by the Company in accordance with Section 4(b) and paid at such time annual bonuses are paid to other senior executives of the Company, but in no event later than the date that is 21⁄2 months following the last day of the fiscal year in which such termination occurred, and (iv) any benefits provided under the Company’s employee benefit plans upon a termination of employment, in accordance with the terms contained therein.

 

(b)                                 “Agreement” shall have the meaning set forth in the preamble hereto.

 

(c)                                  “Annual Bonus” shall have the meaning set forth in Section 4(b) hereof.

 

(d)                                 “Base Salary” shall mean the salary provided for in Section 4(a) hereof or any increased salary granted to Employee pursuant to Section 4(a) hereof.

 

(e)                                  “Board” shall mean the Board of Directors of BeiGene, Ltd.

 

(f)                                   “Cause” shall mean, pursuant to the reasonable good faith determination by a majority of the Board, (i) any willful or intentional act of Employee that has, or could reasonably be expected to have, the effect of materially injuring the business of BeiGene, Ltd., (ii) Employee’s conviction of, or plea of guilty or no contest to, (x) a felony or (y) any other criminal charge that has, or could be reasonably expected to have, a material adverse impact on the performance of Employee’s duties to BeiGene, Ltd., or otherwise result in material injury to the reputation or business of the Company or any other member of the Company Group, (iii) the commission by Employee of an act of fraud or embezzlement against BeiGene, Ltd. or any member of the Company Group, (iv) Employee’s failure (except where due to a Disability),

 

 

neglect, or refusal to perform in any material respect Employee’s material duties and responsibilities or to follow any reasonable, lawful, written directive of the Chief Executive Officer or the Board, (v) any material violation by Employee of a material written policy of the Company or BeiGene, Ltd., that has been conveyed or otherwise made known to the Employee, including, but not limited to, those relating to sexual harassment or business conduct, and those otherwise set forth in the manuals or statements of policy of the Company, or (vi) Employee’s material breach of a material provision of this Agreement or the Non-Disclosure Agreement.

 

(g)                                  “Code” shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

 

(h)                                 “Company” shall have the meaning set forth in the preamble hereto.

 

(i)                                     “Company Group” shall mean (1) the Company, (2) its parent, BeiGene, Ltd., and (3) any direct or indirect subsidiaries, divisions or affiliates of the Company or the Company’s parent.

 

(j)                                    “Compensation Committee” shall mean the committee, if any, of the Board designated to make compensation decisions relating to senior executive officers of the Company Group.  Prior to any time that such a committee has been designated, the Board shall be deemed the Compensation Committee for purposes of this Agreement.

 

(k)                                 “Disability” shall mean any physical or mental disability or infirmity of Employee that prevents the performance of Employee’s duties for a period of (i) ninety (90) consecutive days or (ii) one hundred twenty (120) non-consecutive days during any twelve (12) month period.  Any question as to the existence, extent, or potentiality of Employee’s Disability upon which Employee and the Company cannot agree shall be determined by a qualified, independent physician selected by the Company and approved by Employee (which approval shall not be unreasonably withheld).  The determination of any such physician shall be final and conclusive for all purposes of this Agreement.

 

(l)                                     “Effective Date” shall mean July 15, 2015.

 

(m)                             “Employee” shall have the meaning set forth in the preamble hereto.

 

(n)                                 “Good Reason” shall mean, without Employee’s consent, (i) a material diminution in Employee’s material duties or responsibilities as set forth in Section 3 hereof, (ii) a material reduction in Base Salary set forth in Section 4(a) hereof or Annual Bonus opportunity set forth in Section 4(b) hereof (other than a reduction of not more than ten percent (10%) that is enacted pursuant to an across-the-board reduction applicable to, and applied proportionally to, all similarly situated executives), or (iii) a material breach of a provision of this Agreement by the Company (other than a provision that is covered by clause (i) or (ii) above).  Employee acknowledges and agrees that Employee’s exclusive remedy in the event of any breach of this Agreement shall be to assert Good Reason pursuant to the terms and conditions of Section 8(e) hereof.  Notwithstanding the foregoing, during the Term, in the event that the Company reasonably believes that Employee may have engaged in conduct that could constitute Cause hereunder, the Company may, in its sole and absolute discretion, suspend Employee from performing Employee’s duties hereunder, and in no event shall any such suspension constitute an

 

 

event pursuant to which Employee may terminate employment with Good Reason or otherwise constitute a breach hereunder; provided, that no such suspension shall alter the Company’s obligations under this Agreement during such period of suspension, including the obligation to continue to pay Employee’s compensation and benefits.

 

(o)                                 “Confidentiality Agreement” shall mean the Confidentiality, Non-Competition, and Invention Assignment Agreement attached hereto as Exhibit A.

 

(p)                                 “Person” shall mean any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust (charitable or non-charitable), unincorporated organization, or other form of business entity.

 

(q)                                 “Release of Claims” shall mean a separation and release agreement in a form substantially similar to the form attached hereto as Exhibit C, which may be modified by the Company to make the release fully effective in the jurisdiction in which Employee is employed at the time of his termination and to comply with any changes in the law from and after the Effective Date, each as determined by the Company in its sole discretion.

 

(r)                                    “Sale Event” means the consummation of (i) the sale of all or substantially all of the assets of the BeiGene, Ltd. and its subsidiaries on a consolidated basis to an unrelated person or entity, (ii) a merger, reorganization or consolidation of BeiGene, Ltd., in which the outstanding shares of BeiGene, Ltd., are converted into or exchanged for securities of the successor entity and the holders of BeiGene, Ltd.’s outstanding voting power immediately prior to such transaction do not own at least a majority of the outstanding voting power of the successor entity immediately upon completion of such transaction, or (iii) other than in connection with an initial public offering of the securities of BeiGene, Ltd. (an “IPO”), the sale by existing stockholders of BeiGene, Ltd. in a single transaction or a series of related transactions of all or a majority of the outstanding capital stock of BeiGene, Ltd. to an unrelated person or entity.  For the avoidance of doubt, a Sale Event shall not include an IPO.

 

(s)                                   “Severance Benefits” shall have the meaning set forth in Section 8(g) hereof.

 

(t)                                    “Severance Term” shall mean the nine (9) month period following Employee’s termination by the Company without Cause (other than by reason of death or Disability) or by Employee for Good Reason.

 

(u)                                 “Term” shall mean the period specified in Section 2 hereof.

 

Section 2.                                           Acceptance and Term.

 

The Company agrees to employ Employee, and Employee agrees to serve the Company, on the terms and conditions set forth herein.  The Term of this Agreement shall commence on the Effective Date and continue thereafter until terminated in accordance with, and subject to the provisions of, Section 8 hereof.

 

 

Section 3.                                           Position, Duties, and Responsibilities; Place of Performance.

 

(a)                                 Position, Location, Duties, and Responsibilities.  During the Term, Employee shall be employed by the Company and serve as the Chief Financial and Strategy Officer of BeiGene, Ltd. (together with such other position or positions consistent with Employee’s title as the Board, in its sole discretion, shall specify from time to time).  Employee’s initial duties and responsibilities are set forth in Exhibit B attached hereto.  To the extent requested by the Board or the Company, Employee agrees to serve as an officer and/or director of (i) BeiGene, Ltd., (ii) the Company, and (iii), with Employee’s prior consent, which consent shall not be unreasonably withheld, any other member of the Company Group, in each case without additional compensation.  At the Employee’s request, the Company agrees to open a Company office in the Boston area as soon as practicable following the Effective Date, and maintain the office for at least three (3) years from the Effective Date.  During such three year period, Employee will be permitted to perform his job duties at the Company’s offices in the Boston area, but Employee understands that he will be required to travel to, and perform his job duties at, the Company’s office in China, from time to time.  If Employee’s location of employment is moved by more than fifty (50) miles from the initial location in the Boston area at any time during the Term, the Company agrees to pay for Employee’s reasonable relocation expenses in an amount to be mutually agreed upon.

 

(b)                                 Performance.  Employee shall devote his full business time, attention, skill, and best efforts to the performance of his duties under this Agreement and shall not engage in any other business or occupation during the Term, including, without limitation, any activity that (x) conflicts with the interests of the Company or any other member of the Company Group, (y) interferes with the proper and efficient performance of Employee’s duties for the Company, or (z) interferes with Employee’s exercise of judgment in the Company’s best interests.  Notwithstanding the foregoing, nothing herein shall preclude Employee from (i) performing services pursuant to his current arrangement with Hillhouse Capital Management, its successors or assignees, provided that Employee provide a copy of any final written agreement between him and Hillhouse Capital Management when it is finalized, (ii) performing services for such other company as the Company may designate or permit, which permission shall not be unreasonably withheld, (iii) serving, with the prior written consent of the Board, as a member of the boards of directors or advisory boards (or their equivalents in the case of a non-corporate entity) of non-competing businesses and charitable organizations, (iv) engaging in charitable activities and community affairs, and (v) managing Employee’s personal investments and affairs; provided, however, that the activities set out in clauses (i), (ii), (iii), (iv) and (v) shall be limited by Employee so as not to materially interfere, individually or in the aggregate, with his obligation to provide a full time commitment to the Company and/or the performance of his duties and responsibilities hereunder.

 

Section 4.                                           Compensation.

 

During the Term, Employee shall be entitled to the following compensation:

 

(a)                                 Base Salary.  Employee shall be paid an annualized Base Salary, payable in accordance with the regular payroll practices of the Company, of not less than $350,000 with increases, if any, as may be approved in writing by the Compensation Committee.

 

 

(b)                                 Annual Bonus.  Employee shall be eligible for an annual incentive bonus award determined by the Compensation Committee in respect of each fiscal year during the Term (the “Annual Bonus”).  The amount of the Annual Bonus for each fiscal year shall be up to $105,000, with the actual Annual Bonus payable being based upon the level of achievement of Company, department and individual performance objectives for such fiscal year, as determined by the Compensation Committee in its sole discretion.  For fiscal year 2015, the Company shall confer with Employee with respect to his individual performance objectives and provide such objectives to Employee within 45 days of the Effective Date.  For each fiscal year thereafter, the Company shall provide Employee with his individual performance objectives within 60 days of the start of the fiscal year.  For the avoidance of doubt, the payment of an Annual Bonus is highly performance based and, as such, there is no guarantee that Employee shall receive an Annual Bonus payment.  Employee’s Annual Bonus for the year in which his employment commences, if eligible, shall be prorated based on the number of days worked in that year.  The Annual Bonus shall be paid to Employee at the same time as annual bonuses are generally payable to other senior executives of the Company subject to Employee’s continuous employment through the Annual Bonus payment date.

 

(c)                                  Stock Option Grant:  Subject to the approval of the Board or the Compensation Committee, Employee shall be granted an option to purchase up to 4,900,000 ordinary shares of BeiGene, Ltd., at an exercise price per share equal to the fair market value per share of such stock as of the date of the grant, which option shall be governed by, and subject to the terms and conditions of, the Company’s Stock Option and Incentive Plan and a Stock Option Agreement between Employee and the Company (the “Initial Option Grant”).  The Board or the Compensation Committee shall confer regarding the issuance of Employee’s Initial Option Grant on or before the first regularly-scheduled Board meeting following the Effective Date.  The Stock Option Agreement shall provide for a four-year vesting schedule.  The shares subject to the Initial Option Grant shall become exercisable with respect to 25% of the shares upon completion of one year of service measured from the Effective Date and with respect to the remaining shares in 36 equal successive monthly installments upon Employee’s completion of each month of service over the 3 year period measured from the initial vesting date.  Notwithstanding the foregoing, all unvested option and equity awards granted to Employee during his Employment, including the Initial Option Grant, shall become fully exercisable upon the consummation of a Sale Event.  In addition, the shares subject to the Initial Option Grant (but not any subsequent option grant or equity award, unless otherwise agreed at the time of any such subsequent grant) shall be subject to accelerated vesting upon certain termination events as described in Section 8 hereto.  The option shall have a term of 10 years measured from the grant date.

 

(d)                                 Allowances:  Employee shall be eligible for the following expense allowances when travelling on Company business in China:

 

(i)                                     Company will provide Employee a mini-van and driver when travelling in China; and

 

(ii)                                  Company will reimburse Employee up to $50,000 annually for any costs incurred for accommodations in China, subject to the Company’s business expense reimbursement policies.  These allowances are in addition to the reimbursement of

 

 

business-related expenses while traveling in China described in Section 7.  Employee’s China accommodation allowance for the year in which his employment commences and the year in which it terminates, shall be prorated based on the number of days worked in such year.

 

Section 5.                                           Employee Benefits.

 

During the Term, Employee shall be entitled to participate in health, insurance, retirement, and other benefits provided generally to similarly situated employees of the Company.  Employee shall also be entitled to the same number of holidays, vacation days, and sick days, as well as any other benefits, in each case as are generally allowed to similarly situated employees of the Company in accordance with the Company policy as in effect from time to time.  Nothing contained herein shall be construed to limit the Company’s ability to amend, suspend, or terminate any employee benefit plan or policy at any time without providing Employee notice, and the right to do so is expressly reserved.

 

Section 6.                                           Key-Man Insurance.

 

At any time during the Term, the Company shall have the right to insure the life of Employee for the sole benefit of the Company, in such amounts, and with such terms, as it may determine.  All premiums payable thereon shall be the obligation of the Company.  Employee shall have no interest in any such policy, but agrees to cooperate with the Company in procuring such insurance by submitting to physical examinations, supplying all information required by the insurance company, and executing all necessary documents, provided that no financial obligation is imposed on Employee by any such documents.

 

Section 7.                                           Reimbursement of Business Expenses.

 

During the Term of Employment, the Company shall pay (or promptly reimburse Employee) for documented, out-of-pocket expenses reasonably incurred by Employee in the course of performing his duties and responsibilities hereunder, which are consistent with the Company’s policies in effect from time to time with respect to business expenses, subject to the Company’s requirements with respect to reporting of such expenses.  These business expenses shall include, but not be limited to, Employee’s expenses travelling to and from China on Company business.

 

Section 8.                                           Termination of Employment.

 

(a)                                 General.  The Term shall terminate upon the earliest to occur of: (i) Employee’s death, (ii) a termination by reason of a Disability, (iii) a termination by the Company with or without Cause, and (iv) a termination by Employee with or without Good Reason.  Upon any termination of Employee’s employment for any reason, except as may otherwise be requested by the Company in writing and agreed upon in writing by Employee, Employee shall resign from any and all directorships, committee memberships, and any other positions Employee holds with the Company or any other member of the Company Group.  Notwithstanding anything herein to the contrary, the payment (or commencement of a series of payments) hereunder of any nonqualified deferred compensation (within the meaning of Section 409A of the Code) upon a termination of employment shall be delayed until such time as

 

 

Employee has also undergone a “separation from service” as defined in Treas. Reg. 1.409A-1(h), at which time such nonqualified deferred compensation (calculated as of the date of Employee’s termination of employment hereunder) shall be paid (or commence to be paid) to Employee on the schedule set forth in this Section 8 as if Employee had undergone such termination of employment (under the same circumstances) on the date of Employee’s ultimate “separation from service.”

 

(b)                                 Termination Due to Death or Disability.  Employee’s employment shall terminate automatically upon Employee’s death.  The Company may terminate Employee’s employment immediately upon the occurrence of a Disability, such termination to be effective upon Employee’s receipt of written notice of such termination.  Upon Employee’s death or in the event that Employee’s employment is terminated due to Employee’s Disability, Employee or Employee’s estate or beneficiaries, as the case may be, shall be entitled to payment of the Accrued Obligations, and shall have no further rights to any compensation or any other benefits under this Agreement.

 

(c)                                  Termination by the Company with Cause.

 

(i)                                     The Company may terminate Employee’s employment at any time with Cause, effective upon Employee’s receipt of written notice of such termination; provided, however, that with respect to any Cause termination relying on clause (i) or (iv) of the definition of Cause set forth in Section 1(f) hereof, to the extent that such act or acts or failure or failures to act are curable, Employee shall be given not less than thirty (30) days’ written notice by the Company of its intention to terminate him with Cause, such notice to state in detail the particular act or acts or failure or failures to act that constitute the grounds on which the proposed termination with Cause is based, and such termination shall be effective at the expiration of such thirty (30) day notice period unless Employee has fully cured such act or acts or failure or failures to act that give rise to Cause during such period.

 

(ii)                                  In the event that the Company terminates Employee’s employment with Cause, Employee shall be entitled to payment of the Accrued Obligations and shall have no further rights to any compensation or any other benefits under this Agreement..

 

(d)                                 Termination by the Company without Cause.  The Company may terminate Employee’s employment at any time without Cause, effective upon Employee’s receipt of written notice of such termination.  In the event that Employee’s employment is terminated by the Company without Cause (other than due to death or Disability), and (except with respect to payment of the Accrued Obligations) subject to the Employee’s execution of the Release of Claims (as described in Section 8(g) below), Employee shall be entitled to the additional benefits below:

 

(i)                                     Payment of the Employee’s monthly Base Salary for each month during the Severance Term, which shall be paid in accordance with the Company’s regular payroll practices;

 

 

(ii)                                  With respect to the Initial Option Grant, if Employee is terminated without Cause before the ten (10) month anniversary of the Effective Date, solely for purposes of vesting of the Initial Option Grant, Employee shall be deemed on the date of termination to have been employed for sixteen (16) months from the Effective Date and his options for the remaining shares shall terminate.  In addition, if Employee is terminated without Cause on or after the ten (10) month anniversary of the Effective Date, solely for purposes of vesting of the Initial Option Grant, Employee’s employment shall be deemed to have terminated six (6) months after the date of termination of his employment and all other options held by employee that are not then exercisable shall terminate.

 

(iii)                               If and to the extent that the Employee is able to continue his participation in the Company’s group health and/or dental insurance from and after the date of termination in accordance with the terms of the benefits plans or applicable law and Employee so elects to continue such coverage, an amount equal to the monthly premium payment that the Company was contributing to such coverage on Employee’s behalf as of the date of termination, adjusted for any premium increase and on an after-tax basis, for each month during the Severance Term; provided, that the payments pursuant to this clause (iv) shall cease earlier than the expiration of the Severance Term in the event that Employee becomes eligible to receive any comparable health and dental benefits, including through a spouse’s employer, during the Severance Term.  Any payments under this clause (iii) shall be made at the same time that payments under clause (ii) are made.

 

Notwithstanding the foregoing, the payments and benefits described in clauses (i), (ii), and (iii) above shall immediately terminate, and the Company shall have no further obligations to Employee with respect thereto, in the event that Employee breaches any provision of the Confidentiality Agreement.  Following such termination of Employee’s employment by the Company without Cause, except as set forth in this Section 8(d), Employee shall have no further rights to any compensation or any other benefits under this Agreement.  For the avoidance of doubt, Employee’s sole and exclusive remedy upon a termination of employment by the Company without Cause shall be receipt of the Severance Benefits and the Accrued Obligations.

 

(e)                                  Termination by Employee with Good Reason.  Employee may terminate his employment with Good Reason by providing the Company thirty (30) days’ written notice setting forth in reasonable specificity the event that constitutes Good Reason, which written notice, to be effective, must be provided to the Company within sixty (60) days of the occurrence of such event.  During such thirty (30) day notice period, the Company shall have a cure right, and if the Company fails to cure the action identified in the written notice within such period, Employee’s termination will be effective upon the expiration of such cure period, and (in addition to the payment of Accrued Obligations), Employee shall be entitled to receive the payments and benefits set forth in Section 8(d)(i), (ii) and (iii), subject to his execution of the Release of Claims and subject to the same terms and conditions described in Section 8(d). Following such termination of Employee’s employment by Employee with Good Reason, except as set forth in this Section 8(e), Employee shall have no further rights to any compensation or any other benefits under this Agreement.  For the avoidance of doubt, Employee’s sole and

 

 

exclusive remedy upon a termination of employment with Good Reason shall be receipt of the payments and benefits described in this Section 8(e).

 

(f)                                   Termination by Employee without Good Reason.  Employee may terminate his employment without Good Reason by providing the Company ninety (90) calendar days’ prior written notice of such termination.  In the event of a termination of employment by Employee under this Section 8(f), Employee shall be entitled only to the Accrued Obligations.  In the event of termination of Employee’s employment under this Section 8(f), the Company may, in its sole and absolute discretion, by written notice accelerate such date of termination without changing the characterization of such termination as a termination by Employee without Good Reason and, in such event, the Company shall not be obligated to pay the Employee’s base salary and/or benefits through the end of the 90 calendar day notice period.  Following such termination of Employee’s employment by Employee without Good Reason, Employee shall be entitled to the Accrued Obligations, and shall have no further rights to any compensation or any other benefits under this Agreement.

 

(g)                                  Release.  Notwithstanding any provision herein to the contrary, the payment of any amount or provision of any benefit pursuant to subsection (b), (d), or (e) of this Section 8 (other than the Accrued Obligations) (collectively, the “Severance Benefits”) shall be conditioned upon parties’ execution and non-revocation (if such right exists) of the Release of Claims, within sixty (60) days following the date of Employee’s termination of employment hereunder.  Further, to the extent that any of the Severance Benefits constitutes “nonqualified deferred compensation” for purposes of Section 409A of the Code, any payment of any amount or provision of any benefit otherwise scheduled to occur prior to the sixtieth (60th) day following the date of Employee’s termination of employment hereunder, but for the condition on executing the Release of Claims as set forth herein, shall not be made until the first regularly scheduled payroll date following such sixtieth (60th) day, after which any remaining Severance Benefits shall thereafter be provided to Employee according to the applicable schedule set forth herein.  For the avoidance of doubt, in the event of a termination due to Employee’s death or Disability, Employee’s obligations herein to execute and not revoke the Release of Claims may be satisfied on Employee’s behalf by his estate or a person having legal power of attorney over his affairs.

 

Section 9.                                           Restrictive Covenant Agreement.

 

As a condition of, and prior to commencement of, Employee’s employment with the Company, Employee shall have executed and delivered to the Company the Confidentiality Agreement.  The parties hereto acknowledge and agree that this Agreement and the Confidentiality Agreement shall be considered separate contracts.

 

Section 10.                                    Representations and Warranties of Employee.

 

Employee represents and warrants to the Company that-

 

(a)                                 Employee is entering into this Agreement voluntarily and that his employment hereunder and compliance with the terms and conditions hereof will not conflict with or result in the breach by Employee of any agreement to which he is a party or by which he may be bound;

 

 

(b)                                 Employee has not violated, and in connection with his employment with the Company will not violate, any non-solicitation, non-competition, or other similar covenant or agreement of a prior employer by which Employee is or may be bound; and

 

(c)                                  in connection with his employment with the Company, Employee will not use any confidential or proprietary information Employee may have obtained in connection with employment with any prior employer.

 

Section 11.                                    Taxes.

 

The Company may withhold from any payments made under this Agreement all applicable taxes, including but not limited to income, employment, and social insurance taxes, as shall be required by law.  Employee acknowledges and represents that the Company has not provided any tax advice to him in connection with this Agreement and that Employee has been advised by the Company to seek tax advice from Employee’s own tax advisors regarding this Agreement and payments that may be made to him pursuant to this Agreement, including specifically, the application of the provisions of Section 409A of the Code to such payments.

 

Section 12.                                    Set Off; Mitigation.

 

The Company’s obligation to pay Employee the amounts provided and to make the arrangements provided hereunder shall be subject to set-off, counterclaim, or recoupment of amounts owed by Employee to the Company or its affiliates; provided, however, that to the extent any amount so subject to set-off, counterclaim, or recoupment is payable in installments hereunder, such set-off, counterclaim, or recoupment shall not modify the applicable payment date of any installment, and to the extent an obligation cannot be satisfied by reduction of a single installment payment, any portion not satisfied shall remain an outstanding obligation of Employee and shall be applied to the next installment only at such time the installment is otherwise payable pursuant to the specified payment schedule.  Employee shall not be required to mitigate the amount of any payment provided pursuant to this Agreement by seeking other employment or otherwise, and except as provided in Section 8(d)(v) hereof, the amount of any payment provided for pursuant to this Agreement shall not be reduced by any compensation earned as a result of Employee’s other employment or otherwise.

 

Section 13.                                    Additional Section 409A Provisions.

 

Notwithstanding any provision in this Agreement to the contrary—

 

(a)                                 This Agreement is intended to comply with the requirements of Section 409A of the Code and its corresponding regulations (“Section 409A”), and shall in all respects be administered in accordance with Section 409A.  Notwithstanding anything in this Agreement to the contrary, distributions may only be made under this Agreement upon an event and in a manner permitted by Section 409A or an applicable exemption.  Severance benefits provided under this Agreement are intended to be exempt from Section 409A under the “separation pay exception” to the maximum extent applicable.  Further, any payments that qualify for the “short-term deferral” exception or another exception under Section 409A shall be paid under the applicable exception.  Each payment made under this Agreement shall be treated as a separate

 

 

payment, and the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments.

 

(b)                                 Any payment otherwise required to be made hereunder to Employee at any date as a result of the termination of Employee’s employment shall be delayed for such period of time as may be necessary to meet the requirements of Section 409A(a)(2)(B)(i) of the Code (the “Delay Period”).  On the first business day following the expiration of the Delay Period, Employee shall be paid, in a single cash lump sum, an amount equal to the aggregate amount of all payments delayed pursuant to the preceding sentence, and any remaining payments not so delayed shall continue to be paid pursuant to the payment schedule set forth herein.

 

(c)                                  To the extent that any right to reimbursement of expenses or payment of any benefit in-kind under this Agreement constitutes nonqualified deferred compensation (within the meaning of Section 409A of the Code), (i) any such expense reimbursement shall be made by the Company no later than the last day of the taxable year following the taxable year in which such expense was incurred by Employee, (ii) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (iii) the amount of expenses eligible for reimbursement or in-kind benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year; provided, that the foregoing clause shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect.

 

(d)                                 While the payments and benefits provided hereunder are intended to be structured in a manner to avoid the implication of any penalty taxes under Section 409A of the Code, in no event whatsoever shall the Parent or any of its affiliates (including, without limitation, the Company) be liable for any additional tax, interest, or penalties that may be imposed on Employee as a result of Section 409A of the Code or any damages for failing to comply with Section 409A of the Code (other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A of the Code).

 

Section 14.                                    Successors and Assigns; No Third-Party Beneficiaries.

 

(a)                                 The Company.  This Agreement shall be binding upon and inure to the benefit of the Company’s successors and assigns, including any corporation with which, or into which, the Company may be merged or which may succeed to the Company’s assets or business.  Further, this Agreement may be assigned by the Company, without the prior consent of the Employee, to a person or entity which is a parent, subsidiary or affiliate of the Company or a successor in interest to substantially all of the business operations of the Company.

 

(b)                                 Employee.  Employee’s rights and obligations under this Agreement shall not be transferable by Employee by assignment or otherwise, without the prior written consent of the Company; provided, however, that if Employee shall die, all amounts then payable to Employee hereunder shall be paid in accordance with the terms of this Agreement to Employee’s devisee, legatee, or other designee, or if there be no such designee, to Employee’s estate.

 

 

(c)                                  No Third-Party Beneficiaries.  Except as otherwise set forth in Section 8(b) or Section 14(b) hereof, nothing expressed or referred to in this Agreement will be construed to give any Person other than the Company, the other members of the Company Group, and Employee any legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement.

 

Section 15.                                    Waiver and Amendments.

 

Any waiver, alteration, amendment, or modification of any of the terms of this Agreement shall be valid only if made in writing and signed by each of the parties hereto; provided, however, that any such waiver, alteration, amendment, or modification must be consented to on the Company’s behalf by the Board.  No waiver by either of the parties hereto of their rights hereunder shall be deemed to constitute a waiver with respect to any subsequent occurrences or transactions hereunder unless such waiver specifically states that it is to be construed as a continuing waiver.

 

Section 16.                                    Severability.

 

If any covenants or such other provisions of this Agreement are found to be invalid or unenforceable by a final determination of a court of competent jurisdiction, (a) the remaining terms and provisions hereof shall be unimpaired, and (b) the invalid or unenforceable term or provision hereof shall be deemed replaced by a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision hereof.

 

Section 17.                                    Governing Law and Jurisdiction.

 

This Agreement shall be governed by and construed in accordance with the laws of Commonwealth of Massachusetts, without regard to conflicts of laws principles thereof.  The parties hereby consent to the jurisdiction of any state or federal court in the Commonwealth of Massachusetts.  Accordingly, with respect to any such court action, the Employee hereby (a) submits to the personal jurisdiction of such courts; (b) consents to service of process; and (c) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process.

 

Section 18.                                    Notices.

 

(a)                                 Place of Delivery.  Every notice or other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the party for whom or which it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided; provided, that unless and until some other address be so designated, all notices and communications by Employee to the Company shall be mailed or delivered to the Company at its principal executive office, and all notices and communications by the Company to Employee may be given to Employee personally or may be mailed to Employee at Employee’s last known address, as reflected in the Company’s records.

 

(b)                                 Date of Delivery.  Any notice so addressed shall be deemed to be given or received (i) if delivered by hand, on the date of such delivery, (ii) if mailed by courier or by

 

 

overnight mail, on the first business day following the date of such mailing, and (iii) if mailed by registered or certified mail, on the third business day after the date of such mailing.

 

Section 19.                                    Section Headings.

 

The headings of the sections and subsections of this Agreement are inserted for convenience only and shall not be deemed to constitute a part thereof or affect the meaning or interpretation of this Agreement or of any term or provision hereof.

 

Section 20.                                    Entire Agreement.

 

This Agreement, together with any exhibits attached hereto, constitutes the entire understanding and agreement of the parties hereto regarding the employment of Employee.  This Agreement supersedes all prior negotiations, discussions, correspondence, communications, understandings, and agreements between the parties relating to the subject matter of this Agreement.

 

Section 21.                                    Survival of Operative Sections.

 

Upon any termination of Employee’s employment, the provisions of Section 8 through Section 22 of this Agreement (together with any related definitions set forth in Section 1 hereof) shall survive to the extent necessary to give effect to the provisions thereof.

 

Section 22.                                    Counterparts.

 

This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.  The execution of this Agreement may be by actual or facsimile signature.

 

*                                         *                                         *

 

[Signatures to appear on the following page.]

 

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

 

	
 
    	
BEIGENE   USA, INC.,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   John V. Oyler
    
	
 
    	
By:
    	
John   V. Oyler
    
	
 
    	
Title:
    	
CEO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EMPLOYEE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Howard Liang
    
	
 
    	
Howard   Liang
    

 

 

EXHIBIT A

 

CONFIDENTIALITY, NON-COMPETITION, AND INVENTION ASSIGNMENT AGREEMENT

 

As a condition of my becoming employed by, or continuing employment with, BeiGene USA, Inc., including its parent, subsidiaries or affiliates (the “Company”), and in consideration of my employment with the Company and my receipt of the compensation now and hereafter paid to me by the Company, as further set forth in that certain Employment Agreement between me and the Company, I agree to the following:

 

Section 1.                                           Confidential Information.

 

(a)                                 Company Group Information.  I acknowledge that, during the course of my employment, I will have access to information about the Company and its direct and indirect parents and subsidiaries (collectively, the “Company Group”) and that my employment with the Company shall bring me into close contact with confidential and proprietary information of the Company Group.  In recognition of the foregoing, I agree, at all times during the term of my employment with the Company and for the ten (10) year period following the termination of my employment with the Company Group for any reason, to hold in confidence, and not to use, except for the benefit of the Company Group, or to disclose to any person, firm, corporation, or other entity without written authorization of the Company, any Confidential Information that I obtain or create.  I understand that “Confidential Information” means information that the Company Group has developed, acquired, created, compiled, discovered, or owned or will develop, acquire, create, compile, discover, or own, that has value in or to the business of the Company Group that is not generally known and that the Company wishes to maintain as confidential.  I understand that Confidential Information includes, but is not limited to, any and all non-public information that relates to the actual or anticipated business and/or products, research, or development of the Company, or to the Company’s technical data, trade secrets, or know-how, including, but not limited to, research, product plans, or other information regarding the Company’s products or services and markets, customer lists, and customers (including, but not limited to, customers of the Company on whom I called or with whom I may become acquainted during the term of my employment), software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances, and other business information disclosed by the Company either directly or indirectly in writing, orally, or by drawings or inspection of premises, parts, equipment, or other Company property.  Notwithstanding the foregoing, Confidential Information shall not include (i) any of the foregoing items that have become publicly and widely known through no unauthorized disclosure by me or others who were under confidentiality obligations as to the item or items involved or (ii) any information that I am required to disclose to, or by, any governmental or judicial authority; provided, however, that in such event I will give the Company prompt written notice thereof so that the Company Group may seek an appropriate protective order and/or waive in writing compliance with the confidentiality provisions of this Confidentiality, Non-Competition, and Invention Assignment Agreement (the “Confidentiality Agreement”).

 

(b)                                 Former Employer Information.  I represent that my performance of all of the terms of this Confidentiality Agreement as an employee of the Company has not breached and will not breach any agreement to keep in confidence proprietary information,

 

 

knowledge, or data acquired by me in confidence or trust prior or subsequent to the commencement of my employment with the Company, and I will not disclose to any member of the Company Group, or induce any member of the Company Group to use, any developments, or confidential or proprietary information or material I may have obtained in connection with my employment with any prior employer in violation of a confidentiality agreement, nondisclosure agreement, or similar agreement with such prior employer.

 

Section 2.                                           Developments.

 

(a)                                 Developments Retained and Licensed.  I have attached hereto, as Schedule A, a list describing with particularity all developments, original works of authorship (except as noted below), developments, improvements, and trade secrets that I can demonstrate were created or owned by me prior to the commencement of my employment (collectively referred to as “Prior Developments”), which belong solely to me or belong to me jointly with another, that relate in any way to any of the actual or proposed businesses, products, or research and development of any member of the Company Group, and that are not assigned to the Company hereunder, or if no such list is attached, I represent that there are no such Prior Developments.  If, during any period during which I perform or performed services for the Company Group both before or after the date hereof (the “Assignment Period”), whether as an officer, employee, director, independent contractor, consultant, or agent, or in any other capacity, I incorporate (or have incorporated) into a Company Group product or process a Prior Development owned by me or in which I have an interest, I hereby grant the Company, and the Company Group shall have, a non-exclusive, royalty-free, irrevocable, perpetual, transferable worldwide license (with the right to sublicense) to make, have made, copy, modify, make derivative works of, use, sell, and otherwise distribute such Prior Development as part of or in connection with such product or process.  The Company acknowledges and agrees that I do not need to list as a Prior Development any of my original works of authorship that were published in a professional journal or publication prior to the commencement of my employment with the Company.

 

(b)                                 Assignment of Developments.  I agree that I will, without additional compensation, promptly make full written disclosure to the Company, and will hold in trust for the sole right and benefit of the Company all developments, original works of authorship, inventions, concepts, know-how, improvements, trade secrets, and similar proprietary rights, whether or not patentable or registrable under copyright or similar laws, which I may solely or jointly conceive or develop or reduce to practice, or have solely or jointly conceived or developed or reduced to practice, or have caused or may cause to be conceived or developed or reduced to practice, during the Assignment Period, whether or not during regular working hours, provided they either (i) relate at the time of conception, development or reduction to practice to the business of any member of the Company Group, or the actual or anticipated research or development of any member of the Company Group; (ii) result from or relate to any work performed for any member of the Company Group; or (iii) are developed through the use of equipment, supplies, or facilities of any member of the Company Group, or any Confidential Information, or in consultation with personnel of any member of the Company Group (collectively referred to as “Developments”).  I further acknowledge that all Developments made by me (solely or jointly with others) within the scope of and during the Assignment Period are “works made for hire” (to the greatest extent permitted by applicable law) for which I am, in

 

2

 

part, compensated by my salary, unless regulated otherwise by law, but that, in the event any such Development is deemed not to be a work made for hire, I hereby assign to the Company, or its designee, all my right, title, and interest throughout the world in and to any such Development.

 

(c)                                  Maintenance of Records.  I agree to keep and maintain adequate and current written records of all Developments made by me (solely or jointly with others) during the Assignment Period. The records may be in the form of notes, sketches, drawings, flow charts, electronic data or recordings, and any other format.  The records will be available to and remain the sole property of the Company Group at all times.  I agree not to remove such records from the Company’s place of business except as expressly permitted by Company Group policy, which may, from time to time, be revised at the sole election of the Company Group for the purpose of furthering the business of the Company Group.

 

(d)                                 Intellectual Property Rights.  I agree to assist the Company, or its designee, at the Company’s expense, in every way to secure the rights of the Company Group in the Developments and any copyrights, patents, trademarks, service marks, database rights, domain names, mask work rights, moral rights, and other intellectual property rights relating thereto in any and all countries, including the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications, oaths, assignments, recordations, and all other instruments that the Company shall deem necessary in order to apply for, obtain, maintain, and transfer such rights and in order to assign and convey to the Company Group the sole and exclusive right, title, and interest in and to such Developments, and any intellectual property and other proprietary rights relating thereto.  I further agree that my obligation to execute or cause to be executed, when it is in my power to do so, any such instrument or papers shall continue after the termination of the Assignment Period until the expiration of the last such intellectual property right to expire in any country of the world; provided, however, the Company shall reimburse me for my reasonable expenses incurred in connection with carrying out the foregoing obligation.  If the Company is unable because of my mental or physical incapacity or unavailability for any other reason to secure my signature to apply for or to pursue any application for any United States or foreign patents or copyright registrations covering Developments or original works of authorship assigned to the Company as above, then I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact to act for and in my behalf and stead to execute and file any such applications or records and to do all other lawfully permitted acts to further the application for, prosecution, issuance, maintenance, and transfer of letters patent or registrations thereon with the same legal force and effect as if originally executed by me.  I hereby waive and irrevocably quitclaim to the Company any and all claims, of any nature whatsoever, that I now or hereafter have for past, present, or future infringement of any and all proprietary rights assigned to the Company.

 

Section 3.                                           Returning Company Group Documents.

 

I agree that, at the time of termination of my employment with the Company for any reason, I will deliver to the Company (and will not keep in my possession, recreate, or deliver to anyone else) any and all Confidential Information and all other documents, materials, information, and property developed by me pursuant to my employment or otherwise belonging

 

3

 

to the Company. I agree further that any property situated on the Company’s premises and owned by the Company (or any other member of the Company Group), including disks and other storage media, filing cabinets, and other work areas, is subject to inspection by personnel of any member of the Company Group at any time with or without notice.

 

Section 4.                                           Disclosure of Agreement.

 

As long as it remains in effect, I will disclose the existence of this Confidentiality Agreement to any prospective employer, partner, co-venturer, investor, or lender prior to entering into an employment, partnership, or other business relationship with such person or entity.

 

Section 5.                                           Restrictions on Interfering.

 

(a)                                 Non-Competition.  During the period of my employment with the Company (the “Employment Period”) and during the nine (9) month period immediately following the termination of my employment, regardless of the reason for such termination, I shall not, directly or indirectly, individually or on behalf of any person, company, enterprise, or entity, or as a sole proprietor, partner, stockholder, director, officer, principal, agent, or executive, or in any other capacity, engage in any activity that competes with the Company in its Line of Business within any state of the United States of America, China and any other jurisdiction in which any member of the Company Group engages (or has committed plans to engage) in business during the Employment Period; provided, (i) that my indirect ownership (i.e., ownership through a fund that is not controlled by me or any of my affiliates) of not more than three percent (3%) of the outstanding shares of any publicly traded company and (ii) being employed as an investment banker, fund manager, financial analyst, manager (or other role substantially similar to investment banker, fund manager, financial analyst, manager) by an investment bank or investment company shall not be deemed to breach of this Section 5(a).

 

(b)                                 Non-Interference.  During the Employment Period and during the twelve (12) month period immediately following the termination of my employment, regardless of the reason for such termination, I shall not, directly or indirectly for my own account or for the account of any other individual or entity, engage in Interfering Activities.

 

(c)                                  Definitions.  For purposes of this Confidentiality Agreement :

 

(i)                                     “Business Relation” shall mean any current or prospective client, customer, licensee, or other business relation of the Company Group, or any such relation that was a client, customer, licensee, supplier, or other business relation within the six (6) month period prior to the termination of my employment, in each case, to whom I provided services, or with whom I transacted business, or about whom I obtained Confidential Information during my employment with the Company.

 

(ii)                                  “Line of Business” shall mean the discovery or development of oncology drugs utilizing the local regulatory path for clinical compounds in China.

 

4

 

(iii)                               “Interfering Activities” shall mean (A) encouraging, soliciting, or inducing, or in any manner attempting to encourage, solicit, or induce, any individual or entity employed by, or providing consulting services to, any member of the Company Group to terminate such individual’s or entity’s employment or services (or in the case of a consultant, materially reducing such services) with or to the Company Group; (B) hiring any individual who was employed by any member of the Company Group within the six (6) month period prior to the termination of my employment; or (C) encouraging, soliciting, or inducing, or in any manner attempting to encourage, solicit, or induce, any Business Relation to cease doing business with or reduce the amount of business conducted with the Company Group, or in any way interfering with the relationship between any such Business Relation and the Company Group.

 

(d)                                 Restrictions.  The covenants contained in this Section 5 are in addition to, and not in lieu of, any similar covenants to which Employee may be subject from time to time.

 

Section 6.                                           Reasonableness of Restrictions.

 

I acknowledge and recognize the highly competitive nature of the Company’s business, that access to Confidential Information renders me special and unique within the Company’s industry, and that I will have the opportunity to develop substantial relationships with existing and prospective clients, accounts, customers, consultants, contractors, investors, and strategic partners of the Company Group during the course of and as a result of my employment with the Company.  In light of the foregoing, I recognize and acknowledge that the restrictions and limitations set forth in this Confidentiality Agreement are reasonable and valid in geographical and temporal scope and in all other respects and are essential to protect the value of the business and assets of the Company Group.

 

Section 7.                                           Independence; Severability; Blue Pencil.

 

Each of the rights enumerated in this Confidentiality Agreement shall be independent of the others and shall be in addition to and not in lieu of any other rights and remedies available to the Company Group at law or in equity.  If any of the provisions of this Confidentiality Agreement or any part of any of them is hereafter construed or adjudicated to be invalid or unenforceable, the same shall not affect the remainder of this Confidentiality Agreement, which shall be given full effect without regard to the invalid portions.  If any of the covenants contained herein are held to be invalid or unenforceable because of the duration of such provisions or the area or scope covered thereby, I agree that the court making such determination shall have the power to reduce the duration, scope, and/or area of such provision to the maximum and/or broadest duration, scope, and/or area permissible by law, and in its reduced form said provision shall then be enforceable.

 

Section 8.                                           Injunctive Relief.

 

I expressly acknowledge that any breach or threatened breach of any of the terms and/or conditions set forth in this Confidentiality Agreement may result in substantial, continuing, and irreparable injury to the members of the Company Group.  Therefore, I hereby

 

5

 

agree that, in addition to any other remedy that may be available to the Company, any member of the Company Group shall be entitled to seek injunctive relief, specific performance, or other equitable relief by a court of appropriate jurisdiction in the event of any breach or threatened breach of the terms of this Confidentiality Agreement without the necessity of proving irreparable harm or injury as a result of such breach or threatened breach.  Notwithstanding any other provision to the contrary, I acknowledge and agree that the time periods set forth in Section 5 shall be tolled during any period of violation of any of the covenants in Section 5 hereof and during any other period required for litigation during which the Company or any other member of the Company Group seeks to enforce such covenants against me if it is ultimately determined that I was in breach of such covenants.

 

Section 9.                                           Cooperation.

 

I agree that, following any termination of my employment, I will continue to provide reasonable cooperation to the Company and/or any other member of the Company Group and its or their respective counsel in connection with any investigation, administrative proceeding, or litigation relating to any matter that occurred during my employment in which I was involved or of which I have knowledge.  As a condition of such cooperation, the Company shall reimburse me for reasonable out-of-pocket expenses incurred at the request of the Company with respect to my compliance with this paragraph.  I also agree that, in the event that I am subpoenaed by any person or entity (including, but not limited to, any government agency) to give testimony or provide documents (in a deposition, court proceeding, or otherwise) that in any way relates to my employment by the Company and/or any other member of the Company Group, I will give prompt notice of such request to the Company and will make no disclosure until the Company and/or the other member of the Company Group has had a reasonable opportunity to contest the right of the requesting person or entity to such disclosure.

 

Section 10.                                    Business Opportunities.

 

During the Employment Period, I agree to bring all business opportunities to the Company relating to or otherwise associated with (i) the business or businesses conducted by the Company or any member of the Company Group in the Company’s Line of Business, or (ii) the business or businesses in the Company’s Line of Business proposed to be conducted by the Company or any member of the Company Group in the future of which I am aware or which has been publicly disclosed.  I further agree that unless expressly authorized in writing by the Company’s Chief Executive Officer I will not pursue any such business opportunity or opportunities for my own account or for the account of any third party irrespective of the Company’s decision to exploit or not to exploit any such business opportunity. Notwithstanding the foregoing, to the extent that my current arrangement with Hillhouse Capital Management, its successors or assignees, requires me to pursue business opportunities related to the Company’s Line of Business, I will promptly disclose such opportunities to the Company and agree to obtain the Company’s prior consent before pursuing.  The Company agrees that it shall not unreasonably withhold its consent.  Further, I agree to provide a copy of any final written agreement with Hillhouse Capital Management when it is finalized.

 

6

 

Section 11.                                    General Provisions.

 

(a)                                 Governing Law and Jurisdiction.  This Confidentiality Agreement shall be governed by and construed in accordance with the law of the Commonwealth of Massachusetts, without regard to conflicts of law principles thereof.  The parties hereby consent to the jurisdiction of any state or federal court in the Commonwealth of Massachusetts.  Accordingly, with respect to any such court action, the Employee hereby (a) submits to the personal jurisdiction of such courts; (b) consents to service of process; and (c) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction or service of process.

 

(b)                                 Entire Agreement.  This Confidentiality Agreement sets forth the entire agreement and understanding between the Company and me relating to the subject matter herein and merges all prior discussions between us.  No modification or amendment to this Confidentiality Agreement, nor any waiver of any rights under this Confidentiality Agreement, will be effective unless in writing signed by the party to be charged.  Any subsequent change or changes in my duties, obligations, rights, or compensation will not affect the validity or scope of this Confidentiality Agreement.

 

(c)                                  No Right of Continued Employment.  I acknowledge and agree that nothing contained herein shall be construed as granting me any right to continued employment by the Company, and the right of the Company to terminate my employment at any time and for any reason, with or without cause, is specifically reserved.

 

(d)                                 Successors and Assigns.  This Confidentiality Agreement will be binding upon my heirs, executors, administrators, and other legal representatives and will be for the benefit of the Company, its successors, and its assigns.  I expressly acknowledge and agree that this Confidentiality Agreement may be assigned by the Company without my consent to any other member of the Company Group as well as any purchaser of all or substantially all of the assets or stock of the Company, whether by purchase, merger, or other similar corporate transaction, provided that the license granted pursuant to Section 2(a) may be assigned to any third party by the Company without my consent.

 

(e)                                  Survival.  The provisions of this Confidentiality Agreement shall survive the termination of my employment with the Company and/or the assignment of this Confidentiality Agreement by the Company to any successor in interest or other assignee.

 

I, Howard Liang, have executed this Confidentiality, Non-Competition, and Invention Assignment Agreement on the respective date set forth below:

 

 

	
Date:
    	
7   – 15 – 2015
    	
 
    	
/s/   Howard Liang
    
	
 
    	
 
    	
Howard   Liang
    

 

7

 

SCHEDULE A

 

LIST OF PRIOR DEVELOPMENTS
 AND ORIGINAL WORKS OF AUTHORSHIP
 EXCLUDED FROM SECTION 2

 

	
Title
    	
 
    	
Date
    	
 
    	
Identifying Number or
   Brief Description
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    

 

No Developments or improvements

 

Additional Sheets Attached

 

	
Signature   of Employee:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Print   Name of Employee:
    	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    
					

 

8

 

EXHIBIT B

 

Employee’s initial duties and responsibilities as Chief Financial & Strategy Officer shall include, without limitation, the following:

 

·                  Build and manage the Company’s financial capabilities:

 

·                  Provide leadership in the development for the continuous evaluation of short and long-term strategic financial objectives;

·                  Ensure credibility of Finance group by providing timely and accurate analysis of budgets, financial trends and forecasts;

·                  Direct and oversee all aspects of the Finance & Accounting functions of the organization;

·                  Evaluate and advise on the impact of long range planning, introduction of new programs/ strategies and regulatory action;

·                  Establish and maintain strong relationships with senior executives so as to identify their needs and seek full range of business solutions;

·                  Provide executive management with advice on the financial implications of business activities;

·                  Manage processes for financial forecasting, budgets and consolidation and reporting to the Company ;

·                  Provide recommendations to strategically enhance financial performance and business opportunities; and

·                  Ensure that effective internal controls are in place and ensure compliance with GAAP and applicable federal, state and local regulatory laws and rules for financial and tax reporting.

 

·                  Help drive the Company’s strategic planning process:

 

·                  Organize meetings to discuss program prioritization quarterly

·                  Perform landscape analysis for competitive and new product areas

·                  Participate in quarterly assessments of new research targets

·                  Perform risk/cost assessments

 

·                  Participate in the Company’s Key Leadership Team:

 

·                  Participate in leadership meetings and prepare updates for your areas

·                  Help recruit clinical team

 

·                  Provide overall strategic direction and planning for the Company and its affiliates:

 

·                  Propose in-license/out license targets

·                  Competitive assessment of other deals

·                  Assessment of entry into new areas (e.g., manufacturing, new therapeutic areas, geographies)

 

·                  Perform such other duties and responsibilities commensurate with Employee’s position that the Company may assign to Employee from time to time.

 

 

EXHIBIT C

 

FORM OF RELEASE AGREEMENT:  ACTUAL AGREEMENT MAY DIFFER

 

GENERAL RELEASE

 

BeiGene USA, Inc., (the “Company”), a subsidiary of BeiGene, Ltd., and Howard Liang (the “Employee”), agree that this General Release (“Release”) sets forth their complete agreement and understanding regarding the termination of Employee’s employment with Company.  All terms not defined herein shall have the definition contained in that certain Employment Agreement between the Company and Employee dated as of July   , 2015 (the “Employment Agreement”) or the Confidentiality, Non-Competition, and Invention Assignment Agreement dated as of the same date (the “Nondisclosure Agreement”),

 

1.                                      Separation Date.  Employee’s employment with Company will terminate effective                  (the “Separation Date”).  The Company will provide Employee with the Accrued Obligations (as defined in the Employment Agreement) and, subject to his execution of this Release, the payments and benefits described in Section 2 below.  Employee acknowledges that with such payments, Employee has received all compensation and benefits due to Employee in connection with Employee’s employment, and Employee is not entitled to any additional payments or benefits except as specifically provided below.

 

2.                                      Consideration of Company.  In consideration for the releases and covenants by Employee herein, and upon expiration of the revocation period described in paragraph 12 below with no revocation by Employee and subject to Employee’s compliance with his obligations under the Nondisclosure Agreement, the Company will provide Employee with the payments and benefits required to be paid by the Company pursuant to Section 8 of the Employment Agreement, to be paid as set forth therein.

 

3.                                      Employee Release of Rights and Agreement Not to Sue.  Employee (defined for the purpose of this Paragraph 3 as Employee and Employee’s agents, representatives, attorneys, assigns, heirs, executors, and administrators) fully and unconditionally releases the Released Parties (defined as the Company Group (as defined in the Employment Agreement and any of its or their past or present employees, agents, insurers, attorneys, administrators, officials, directors, shareholders, divisions, parents, subsidiaries, predecessors, successors, employee benefit plans, and the sponsors, fiduciaries, or administrators of the Company’s employee benefit plans) from, and agrees not to bring any action, proceeding or suit against any of the Released Parties regarding, any and all known or unknown claims, causes of action, liabilities, damages, fees, or remunerations of any sort, arising or that may have arisen out of or in connection with Employee’s employment with or termination of employment from the Company at any time from the beginning of the World up to and through the date of execution of this Release, including but not limited to claims for:

 

This general release includes, without limitation, any and all Claims arising out of or in connection with:

 

(a) breach of the Employment Agreement or violation of any written or unwritten contract, agreement, policy, benefit plan, retirement or pension plan, option plan, severance plan, or covenant of any kind, or failure to pay wages, bonuses, employee benefits, other compensation, attorneys’ fees, damages, or any other remuneration;

 

(b) your employment, change in employment status, and/or termination of employment with the Company;

 

(c) any federal, state or local law, constitution or regulation regarding either employment, employment benefits, or employment discrimination and/or retaliation including, without

 

1

 

limitation, the National Labor Relations Act, as amended; Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. 2000e et seq.; Sections 1981 through 1988 of Title 42 of the United States Code, as amended; the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. 1001 et seq.; the Workers Adjustment and Retraining Notification Act, 29 U.S.C. Section 2101 et seq.; the Immigration Reform and Control Act, as amended; the Americans with Disabilities Act of 1990, as amended; the Fair Labor Standards Act, as amended; the Occupational Safety and Health Act, as amended; the Family and Medical Leave Act of 1993 (“FMLA”), as amended; the Consolidated Omnibus Budget Reconciliation Act, as amended; and laws relating to workers compensation, family and medical leave, retaliation, discrimination on the basis of race, color, religion, creed, sex, sex harassment, sexual orientation, gender identity marital status, pregnancy, national origin, ancestry, handicap, disability, veteran’s status, alienage, blindness, present or past history of mental disorders or physical disability, candidacy for or activity in a general assembly or other public office, constitutionally protected acts of speech, whistleblower status, use of tobacco products outside course of employment, membership in any organization engaged in civil defense, veteran’s status, any military service, application for military service, or any other federal, state or local civil or human rights law or any other local, state or federal law, regulation or ordinance;

 

(d) any Massachusetts state or local laws respecting employment, including but not limited to, the Massachusetts Wage Payment Act, M.G.L. c. 149, § 148; the Massachusetts Fair Employment Practices Act, M.G.L. c. 151B, as amended; the Massachusetts Parental Leave Act, M.G.L. c. 149, § 105D; the Massachusetts Small Necessities Leave Act, M.G.L. c. 149, § 52D; the Massachusetts Domestic Violence Leave Act, M.G.L. c. 149, § 59E, the Massachusetts Civil Rights Act, M.G.L. c. 12, § 11H et seq., as amended; the Massachusetts Equal Rights Act, M.G.L. c. 93, § 102 et seq., as amended; the Massachusetts Equal Pay Act, M.G.L. c. 149, § 105A et seq., as amended; the Massachusetts law against sexual harassment, M.G.L. c. 214, § 1C et seq., as amended; and the Massachusetts law against retaliation, M.G.L. c. 19C, § 11. et seq., as amended;

 

(e) wrongful termination, intentional or negligent infliction of emotional distress, negligent misrepresentation, intentional misrepresentation, fraud, defamation, promissory estoppel, false light invasion of privacy, conspiracy, violation of public policy; and/or

 

(f) any other tort, statutory or common law cause of action.

 

Employee further waives any right to recovery in a proceeding instituted on Employee’s behalf by a class representative, administrative agency or other entity regarding Employee’s employment with, or separation from, Company; provided, however, that Employee is not waiving any claim for unemployment compensation.  Employee affirms that as of the time Employee signed this Release, no action or proceeding covered by this paragraph was pending against any of the Released Parties.  Notwithstanding the foregoing, nothing in this Section shall constitute a release or waiver of any claim by Employee (i) to enforce the terms of this Agreement, or (ii) for indemnification, to the extent permitted by, and subject to the terms and conditions of, the Company’s certificate of incorporation, as amended to date, and/or Delaware law.

 

4.                                      No Disparagement or Encouragement of Claims.  Employee agrees not to make any oral or written statement that disparages or places Company or any member of the Company Group (as defined in the Employment Agreement (including any of its past or present officers, employees, products or services) in a false or negative light, or to encourage, support, or assist any person or entity who has filed or may file a lawsuit, charge, claim or complaint against the Released Parties (as defined in

 

2

 

Paragraph 3, above); provided, however, that nothing herein shall prevent Employee from responding to a lawful subpoena, reporting to a government agency, or complying with any other legal obligation.  If Employee receives any subpoena or becomes subject to any legal obligation that implicates this paragraph, Employee will provide prompt written notice of that fact to the Company and enclose a copy of the subpoena and any other documents describing the legal obligation.  The Company agrees that its officers and directors (during the period of their employment with the Company) shall not make any oral or written statement that disparages the Employee or places Employee in a false or negative light; provided, however, that nothing herein shall prevent the Company’s officers or directors from responding to a lawful subpoena, reporting to a government agency, or complying with any other legal obligation.

 

5.                                      Return of Company Property.  Employee represents and warrants that he has complied with his obligations to return Company Property pursuant to his obligations under the Nondisclosure Agreement.

 

6.                                      Restrictive Covenants.  Employee represents that he has fully complied with his obligations under the Nondisclosure Agreement at all times during his employment, and will continue to do so in accordance with the terms set forth in the Nondisclosure Agreement.

 

7.                                      Confidentiality of Release.  Except as may be specifically required by law, Employee will not in any manner disclose or communicate any part of this Release to any other person except Employee’s current spouse (if any), Employee’s accountant or financial advisor to the limited extent needed for that person to prepare Employee’s tax returns, or Employee’s attorney.  Before any such authorized disclosure, Employee will inform each such person to whom disclosure is to be made that every term of this Release is confidential and obtain such person’s agreement to maintain the confidentiality of the entire Release.  Employee affirms that Employee has not done anything before signing this Release that would violate this paragraph.  If Employee is specifically required by law to disclose any of the terms of this Release, Employee will provide prompt written notice of that fact to the Company (as provided in Paragraph 4, above) and enclose a copy of the subpoena and any other documents describing the legal obligation.

 

8.                                      Non-admission/Inadmissibility.  This Release does not constitute an admission that the Company took any wrongful, unlawful, or harmful action, and the Company specifically denies any wrongdoing.  This Release is offered solely to resolve fully all matters related to Employee’s employment with and termination from Company.  This Release shall not be used as evidence in any proceeding, except one alleging a breach of this Release or the Employment and Equity Agreements.

 

9.                                      Severability.  The provisions of this Release shall be severable such that the invalidity of any provision shall not affect the validity of other provisions; provided, however, that if a court or other binding authority holds that any release in Paragraph 3 is illegal, void or unenforceable, Employee agrees to promptly execute a release and agreement that is legal and enforceable.

 

10.                               Governing Law.  This Release shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, without regard to its principles of conflicts of laws.  All disputes arising under this Agreement shall be brought and litigated in the federal or state courts serving the Commonwealth of Massachusetts.

 

11.                               Entire Agreement.  This Release and the Employment and Equity Agreements represent the entire agreement and understanding concerning Employee’s separation from the Company.  In deciding to sign this Release, Employee has not relied on any express or implied promise, statement, or representation by the Company, whether oral or written, except as set forth herein.

 

3

 

12.                               Employee’s Right to Revoke Release of Age Discrimination Claims.  Employee has the right to revoke Employee’s release of claims under the Age Discrimination in Employment Act described in Paragraph 3 (the “ADEA Release”) for up to seven (7) days after Employee signs this Release.  In order to do so, Employee must sign and send a written notice of the decision to revoke the ADEA Release, addressed to the Chief Executive Officer of BeiGene, Ltd., at its then current corporate headquarters, and that written notice must be received by the Company no later than the eighth day after Employee signed this Release.  If Employee revokes the ADEA Release, Employee will not be entitled to any of the consideration from Employer described in Paragraph 2 above.

 

13.                               Knowing and Voluntary Waiver and Execution.  Employee acknowledges that: (i) Employee has carefully read this Release and fully understands its meaning; (ii) Employee has had the opportunity to take up to twenty-one (21) days after receiving this Release to decide whether to sign below, and that if he does not sign and tender this Release by such time, the offer provided herein is automatically revoked; (iii) Employee understands that Employer is herein advising Employee, in writing, to consult with an attorney before signing below; (iv) Employee is signing this Release, knowingly, voluntarily, and without any coercion or duress; and (v) everything Employee is receiving for signing this Release is described in this Release itself, and no other promises or representations have been made to cause Employee to sign it.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

4

 

To be valid and binding, this Release must be signed by Employee and submitted to the Company no later than 21 days following the date on which it is received by Employee.  If this Release is not received by such time, Employee shall not be eligible for any of the consideration set forth herein.

 

	
NAME
    	
 
    	
[COMPANY NAME]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Employee   Signature
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
Employee   Name (print)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
Dated:
    	
 
    
							

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}]]