Document:

EX-4.11

   

  	Exhibit 4.11 

    

   

  November 2, 2021 

    

  Chin Lee 

  Via Electronic Mail  

    

  Re: 	Employment Terms 

  Dear Chin: 

  Connect Biopharm LLC (the “Company” or “Connect”) is pleased to offer you the position of Chief Medical Officer of the Company and its affiliates, on the following terms. As applicable, references to Company or Connect also include its affiliated entities.  

  You will be responsible for providing medical and trial execution expertise to craft Company strategy, advance the Company’s pipeline, and oversee the conduct of clinical trials.  You will also oversee the teams responsible for monitoring and analyzing clinical trials for safety, efficacy, and assisting with the generation, analysis, and presentation of clinical data, including authoring documents and slide presentations.  As one of the Company’s most senior and visible executives, your responsibilities will also include communication and interactions with key opinion leaders, regulatory agencies, patient associations, advocacy groups, and investors, while pushing our programs through quickly and expertly and building the future state of the Clinical Development and regulatory organization.  This position will report to Zheng Wei, Chief Executive Officer and you will work remotely until our office in the San Francisco Bay Area has been secured and work in the San Francisco Bay Area office consistent with the designated company hybrid model.  Additionally, you would be expected to travel to the San Diego office, as needed.  Of course, the Company may change your position, duties, and work location from time to time in its discretion. 

  Your base salary will be paid at the rate of $35,833.33 per month ($440,000.00 on an annualized basis), less payroll deductions and withholdings, paid on the Company’s normal payroll schedule. 

  You will be eligible to receive a target discretionary annual bonus of up to 40% of your base salary, based or the Company’s performance and your individual performance. Whether the Company awards bonuses for any given year, the allocation of the bonuses for Company and individual performance, and the amounts of such bonuses, if awarded, will be in the sole discretion of the Company as determined by the Board of Directors of Connect Biopharma Holdings Limited (the “Board”). If the Board approves payment of bonuses for any given year, the bonus amounts generally will be determined and paid within the first calendar quarter of the year based on the prior year’s performance. To incentivize you to remain employed with the Company, you must be employed on the date any bonus is paid in order to earn the bonus. If your employment terminates for any reason prior to the payment of the bonus, then you will not have earned the bonus and will not receive any portion of it, except as set forth in the Addendum to Employment Offer Letter for Severance Benefits attached hereto. 

  During your employment, you will be eligible to participate in the standard benefits plans offered to similarly situated employees by the Company from time to time, subject to plan terms and generally applicable Company policies. Exempt employees do not accrue vacation, and there is no set guideline as 

   

  

   

  to how much vacation each employee will be permitted to take.  Supervisors will approve paid vacation requests based on the employee’s progress on work goals or milestones, status of projects, fairness to the working team, and productivity and efficiency of the employee.  Since vacation is not allotted or accrued, “unused” vacation time will not be carried over from one year to the next nor paid out upon termination.  

  A full description of these benefits is available for your review.  The Company may change compensation and benefits from time to time in its discretion. 

  Subject to approval by the Board of Directors of Connect Biopharma Holdings Limited, the Company anticipates granting you an option to purchase 310,000 ordinary shares of the Connect Biopharma Holdings Limited with an exercise price equal to the fair market value as of the date of grant (the “Option”). The anticipated Option will be governed by the terms and conditions of Connect Biopharma Holdings Limited’s 

  2021 Stock Incentive Plan (the “Plan”) and your grant agreement, and will include a four year vesting schedule, under which 25% of your Option will vest 12 months after your start date, and 1/48th of the total shares will vest at the end of each month thereafter, until either the Option is fully vested or your continuous service (as defined in the Plan) terminates, whichever occurs first.  

  As a Company employee, you will be expected to abide by Company rules and policies. As a condition of employment, you must sign and comply with the attached Employee Confidential Information and Inventions Assignment Agreement which prohibits unauthorized use or disclosure of the Company’s proprietary information, among other obligations.   

  In your work for the Company, you will be expected not to use or disclose any confidential information, including trade secrets, of any former employer or other person to whom you have an obligation of confidentiality. Rather, you will be expected to use only that information which is generally known and used by persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company. You agree that you will not bring onto Company premises any unpublished documents or property belonging to any former employer or other person to whom you have an obligation of confidentiality. You hereby represent that you have disclosed to the Company any contract you have signed that may restrict your activities on behalf of the Company. 

  Normal business hours are from 9:00 a.m. to 5:00 p.m., Monday through Friday. As an exempt salaried employee, you will be expected to work additional hours as required by the nature of your work assignments. 

  Your employment with the Company will be “at-will.” You may terminate your employment with the Company at any time and for any reason whatsoever simply by notifying the Company. Likewise, the Company may terminate your employment at any time, with or without cause or advance notice.  Your employment at-will status can only be modified in a written agreement signed by you and by an officer of the Company. 

  Under certain circumstances, you may be entitled to receive severance benefits upon termination of your employment, as further described in the Addendum to Employment Offer Letter for Severance Benefits attached hereto. 

  This offer is contingent upon a reference and background check satisfactory to the Company and satisfactory proof of your right to work in the United States. You agree to assist as needed and to complete any documentation at the Company’s request to meet these conditions. 

   

  

   

  To the extent permissible by applicable law, to ensure the rapid and economical resolution of disputes that may arise in connection with your employment with the Company, you and the Company agree that any and all disputes, claims, or causes of action, in law or equity, including but not limited to statutory claims, arising from or relating to the enforcement, breach, performance, or interpretation of this Agreement, your employment with the Company, or the termination of your employment, shall be resolved pursuant to the 

  Federal Arbitration Act, 9 U.S.C. § 1-16, to the fullest extent permitted by law, by final, binding and confidential arbitration conducted by JAMS or its successor, under JAMS’ then applicable rules and procedures for employment disputes (available upon request and also currently available at http://www.jamsadr.com/rules-employment-arbitration/). You acknowledge that by agreeing to this arbitration procedure, both you and the Company waive the right to resolve any such dispute through a trial by jury or judge or administrative proceeding. In addition, all claims, disputes, or causes of action under this section, whether by you or the Company, must be brought in an individual capacity, and shall not be brought as a plaintiff (or claimant) or class member in any purported class or representative proceeding, nor joined or consolidated with the claims of any other person or entity.  The arbitrator may not consolidate the claims of more than one person or entity, and may not preside over any form of representative or class proceeding.  To the extent that the preceding sentences regarding class claims or proceedings are found to violate applicable law or are otherwise found unenforceable, any claim(s) alleged or brought on behalf of a class shall proceed in a court of law rather than by arbitration.  This paragraph shall not apply to any action or claim that cannot be subject to mandatory arbitration as a matter of law, including, without limitation, claims brought pursuant to the California Private Attorneys General Act of 2004, as amended, the California Fair Employment and Housing Act, as amended, and the California Labor Code, as amended, to the extent such claims are not permitted by applicable law(s) to be submitted to mandatory arbitration and the applicable law(s) are not preempted by the Federal Arbitration Act or otherwise invalid (collectively, the “Excluded Claims”).  In the event you intend to bring multiple claims, including one of the Excluded Claims listed above, the Excluded Claims may be filed with a court, while any other claims will remain subject to mandatory arbitration.  You will have the right to be represented by legal counsel at any arbitration proceeding.  The arbitrator shall:  (a) have the authority to compel adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written statement signed by the arbitrator regarding the disposition of each claim and the relief, if any, awarded as to each claim, the reasons for the award, and the arbitrator’s essential findings and conclusions on which the award is based. The arbitrator shall be authorized to award all relief that you or the Company would be entitled to seek in a court of law. The Company shall pay all JAMS arbitration fees in excess of the administrative fees that you would be required to pay if the dispute were decided in a court of law.  Nothing in this letter agreement is intended to prevent either you or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. 

  This letter, together with your Employee Confidential Information and Inventions Assignment Agreement, forms the complete and exclusive statement of your employment agreement with the Company. It supersedes any other agreements or promises made to you by anyone, whether oral or written. Changes in your employment terms, other than those changes expressly reserved to the Company’s discretion in this letter, require a written modification signed by an officer of the Company.  If any provision of this offer letter agreement is determined to be invalid or unenforceable, in whole or in part, this determination shall not affect any other provision of this offer letter agreement and the provision in question shall be modified so as to be rendered enforceable in a manner consistent with the intent of the parties insofar as possible under applicable law. This letter may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, 

   

  

   

  Uniform Electronic Transactions Act or other applicable law) or other transmission method and shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. 

  This offer letter, the Employee Confidential Information and Inventions Assignment Agreement, the Sign On Bonus Repayment Agreement and the Addendum to Employment Offer Letter for Severance Benefits constitute the complete, final and exclusive embodiment of the entire agreement between you and the Company with respect to the terms and conditions of your employment specified herein and therein, and supersede any other such promises, warranties, representations or agreements between you and the Company.  This offer letter may not be amended or modified except by a written instrument signed by you and a duly authorized officer of the Company.   

  This offer letter will be governed by and construed in accordance with the laws of the State of California without regard to the conflicts of law provisions thereof. 

  Please sign and date this letter, and the enclosed Employee Confidential Information and Inventions Assignment Agreement and return them to me by November 4, 2021, if you wish to accept employment at the Company under the terms described above.  

  If you accept our offer, we would like you to start on March 1, 2022. 

  We look forward to your favorable reply and to a productive and enjoyable work relationship. Sincerely, 

   

  By: /s/ Zheng Wei                             

   	  

  Zheng Wei, Chief Executive Officer 	 	 

   	 	  

   	 	  

  Understood and Accepted: 

   	 	  

  /s/ Chin Lee	 

  Name: Chin Lee          

   

  Date: 11/3/2021

    

   

  Chinster158@gmail.com 

    

  Attachments:  Employee Confidential Information and Inventions Assignment Agreement 

   	 	       Addendum to Employment Offer Letter for Severance Benefits 

   

   

   

   

  

   

   

   

  Addendum To Employment Offer Letter For Severance Benefits

     

  The provisions of this Addendum to Employment Offer Letter for Severance Benefits (the “Addendum”) are incorporated into, and are made a part of, the employment offer letter (the “Offer Letter”) by and between you, Chin Lee, and Connect Biopharm LLC (“Company”) to which this Addendum is attached. Capitalized terms used in this Addendum are either defined herein or in Appendix A.  

     

  1.     Severance Benefits.  

  (a)Subject to Section 1(b) below and your continued compliance with the Employee Confidential Information and Inventions Assignment Agreement executed by you in connection with your commencement of employment, if your employment is terminated by the Company without Cause or is terminated by you as a result of a Constructive Termination, then you shall be entitled to the following severance benefits in lieu of any severance benefits to which you may otherwise be entitled under any severance plan or program of the Company:  

     

  (i)Payment of a lump sum amount equivalent to (A) nine (9) months of your Base Salary plus (B) 75% of your target bonus for the applicable year as determined by the Board, in each case less applicable withholding. Such amount shall be payable in a lump sum no later than five (5) days following the effective date of your Release; and 

     

  (ii)Payment for your premiums for health (i.e., medical, vision and dental) continuation coverage under COBRA; provided, however, that (A) you are eligible for COBRA on the Termination Date and (B) you elect continuation coverage pursuant to COBRA, within the required time period. The Company shall continue to provide you with health coverage pursuant to this paragraph until the earliest of (1) the date you are no longer eligible to receive continuation coverage pursuant to COBRA, (2) nine (9) months from the Termination Date, or (3) the date on which you obtain comparable health coverage (such period, the “COBRA Coverage Period”). If any of the Company’s health benefits are self-funded as of your Termination Date, or if the Company cannot provide the foregoing benefits in a manner that is exempt from Section 409A of the Code or that is otherwise compliant with applicable law (including, without limitation, Section 2716 of the Public Health Service Act), instead of providing the payments or reimbursements as set forth above, the Company shall instead pay to you the foregoing monthly amount as a taxable monthly payment (grossed up to account for taxes) for the COBRA Coverage Period (or any remaining portion thereof).  You shall be solely responsible for all matters relating to continuation of coverage pursuant to COBRA, including, without limitation, the election of such coverage and the timely payment of premiums.  You agree to notify Company promptly after you obtain alternative health coverage; and 

    

   

  

   

  (iii)If your employment is terminated by the Company without Cause or is terminated by you as a result of a Constructive Termination, in each case during the Relevant Period, then each of your outstanding stock awards (including any stock options, restricted stock or other awards granted to you by the Parent) shall automatically become fully vested and exercisable and be released from any repurchase or forfeiture rights for all of the shares you receive as a result of exercise on the later of (A) the date of such termination or (B) the date of the Change in Control. The foregoing provisions are hereby deemed to be a part of each stock award (and, for the avoidance of doubt, if any stock award is subject to more favorable vesting pursuant to any agreement or plan regarding such stock award, such more favorable provisions shall continue to apply and shall not be limited by this clause (iii)). 

     

  (b)As a condition to your receipt of any post-termination benefits pursuant to Section 1(a) above, you shall execute and not revoke a general release of all claims in favor of the Company and its affiliates in a form reasonably acceptable to and provided by the Company in compliance with applicable law (the “Release”). In the event the Release does not become effective within the fifty-five (55) day period following the date when your employment is terminated by the Company without Cause or is terminated by you as a result of a Constructive Termination, you shall not be entitled to the aforesaid payments and benefits.   

    

  2.     Successors.  

     

  (a)Company’s Successors. Any successor to Company (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of Company’s business and/or assets shall assume Company’s obligations under this Addendum and perform Company’s obligations under this Addendum in the same manner and to the same extent as Company would be required to perform such obligations in the absence of a succession. For all purposes under this Addendum, the term “Company” shall include any successor to Company’s business and/or assets which acknowledges it will be bound by the terms of this Addendum or which becomes bound by the terms of this Addendum by operation of law.  

     

  (b)Your Successors. Without the written consent of Company, you shall not assign or transfer this Addendum or any right or obligation under this Addendum to any other person or entity. Notwithstanding the foregoing, the terms of this Addendum and all you rights hereunder shall inure to the benefit of, and be enforceable by, your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  

     

  3.Code Section 409A.

  (a)This Addendum is not intended to provide for any deferral of compensation subject to Section 409A of the Code, and, accordingly, the severance payments payable under Section 1(a) shall be paid no later than the later of:  (A) the fifteenth (15th) day of the third month following your first taxable year in which such amounts are no longer subject to a substantial risk of forfeiture, and (B) the fifteenth (15th) day of the third month following first taxable year of the Company in which such amounts are is no longer subject to substantial risk of forfeiture, as determined in accordance with Code Section 409A and any Treasury 

   

  

   

  Regulations and other guidance issued thereunder.  To the extent applicable, this Addendum shall be interpreted in accordance with Code Section 409A and Department of Treasury regulations and other interpretive guidance issued thereunder.  Each series of installment payments made under this Addendum is hereby designated as a series of “separate payments” within the meaning of Section 409A of the Code.   For purposes of this Addendum, to the extent required to ensure the payments hereunder are exempt from or comply with Section 409A of the Code, all references to your “termination of employment” shall mean your “separation from service” as defined in Treasury Regulation Section 1.409-A-1(h).

   

  (b)If you are a “specified employee” (as defined in Section 409A of the Code), as determined by the Company in accordance with Section 409A of the Code, on the date of your Separation from Service, to the extent that the payments or benefits under this Agreement are subject to Section 409A of the Code and the delayed payment or distribution of all or any portion of such amounts to which you are entitled under this Addendum is required in order to avoid a  prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, then such portion deferred pursuant to this Section 9(o)(ii) shall be paid or distributed to you in a lump sum on the earlier of (A) the date that is six (6)-months following your Separation from Service, (B) the date of your death or (C) the earliest date as is permitted under Section 409A of the Code.  Any remaining payments due under the Addendum shall be paid as otherwise provided herein. 

  (c)To the extent applicable, this Addendum shall be interpreted in accordance with the applicable exemptions from Section 409A of the Code.  If you and the Company determine that any payments or benefits payable under this Agreement intended to comply with Sections 409A(a)(2), (3) and (4) of the Code do not comply with Section 409A of the Code, you and the Company agree to amend this Addendum, or take such other actions as you and the Company deem reasonably necessary or appropriate, to comply with the requirements of Section 409A of the Code and the Treasury Regulations thereunder (and any applicable transition relief) while preserving the economic agreement of the parties.  To the extent that any provision in this Addendum is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner that no payments payable under this Addendum shall be subject to an “additional tax” as defined in Section 409A(a)(1)(B) of the Code. 

  (d)Any reimbursement of expenses or in-kind benefits payable under this Addendum shall be made in accordance with Treasury Regulation Section 1.409A-3(i)(1)(iv) and shall be paid on or before the last day of your taxable year following the taxable year in which you incurred the expenses.  The amount of expenses reimbursed or in-kind benefits payable during any taxable year of yours shall not affect the amount eligible for reimbursement or in-kind benefits payable in any other taxable year of yours, and your right to reimbursement for such amounts shall not be subject to liquidation or exchange for any other benefit. 

  (e)In the event that the amounts payable under Section 1(a) are subject to Section 409A of the Code and the timing of the delivery of your Release could cause such amounts to be paid in one or another taxable year, then notwithstanding the payment timing set forth in such sections, such amounts shall not be payable until the later of (A) the payment date specified in such section or (B) the first business day of the taxable year following your Separation from Service. 

     

  4.Miscellaneous Provisions.  

     

   

  

   

  (a)Integration. This Addendum represents the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements and provisions in other agreements related to severance benefits, whether written or oral. With respect to any conflict between this Addendum and the Offer Letter or any other employment related agreement, this Addendum shall prevail. For the avoidance of doubt, this Addendum does not change your employment at-will status. 

     

  (b)Choice of Law. The validity, interpretation, construction and performance of this Addendum shall be governed by the internal substantive laws, but not the conflicts of law rules, of the State of California.  

     

  (c)Employment Taxes. All payments made pursuant to this Addendum shall be subject to withholding of applicable income and employment taxes.  

     

     

   	  

   

   

  

   

    

   	IN WITNESS WHEREOF, each of the parties has executed this Addendum, in the case of Company by its duly authorized officer, as of the day and year first above written.  

     

  		
	CONNECT BIOPHARM LLC:
	 EXECUTIVE:

	By: /s/ Zheng Wei
	By: /s/ Chin Lee

	Title: Chief Executive Officer
	Name: Chin Lee

	Date: 11/2/2021
	Date: 11/3/2021

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

  

   

   

  APPENDIX A  

     

  The following definitions shall be in effect under the severance benefits letter:  

     

  (a)Base Salary. “Base Salary” means your annual base salary as in effect during the last regularly scheduled payroll period immediately preceding the effective date of your termination without Cause or due to a Constructive Termination.  

  (b)  Board. “Board” means the Board of Directors of Parent.

     

  (c)Cause. “Cause” means any of the following: 

  (i)Your unauthorized use or disclosure of any proprietary information of the Company or its affiliates or any material breach of a written agreement between you and any member of the Company or any affiliate, including without limitation a material breach of any employment, confidentiality, non-compete, non-solicit or similar agreement executed by you; 

  (ii)Your conviction by a court of competent jurisdiction of, or your pleading “guilty” or “no contest” to, a felony or any crime involving fraud, dishonesty or moral turpitude under the laws of the United States or any state thereof;  

  (iii)Your gross negligence or willful misconduct or your willful or repeated failure or refusal to substantially perform assigned duties;  

  (iv)the commission of an act of fraud, embezzlement or dishonesty by you, or the commission of some other illegal act by you, that causes material harm to the Company or any successor or affiliate thereof; or  

  (v)Your ongoing and repeated failure or refusal to perform or neglect of your duties as required by your offer letter, which failure, refusal or neglect continues for thirty (30) days following your receipt of written notice from the Board stating with specificity the nature of such failure, refusal or neglect; 

  provided, however, that prior to the determination that “Cause” under clauses (i), (iii), or (v) of this Section (c) has occurred, the Company shall (A) provide to you in writing, in reasonable detail, the reasons for the determination that such “Cause” exists, (B) afford you a reasonable opportunity to remedy any such breach (if it is capable of being cured), and (C) provide you an opportunity to be heard prior to the final decision to terminate your employment hereunder for such “Cause”. 

   

  The foregoing definition shall not in any way preclude or restrict the right of the Company or any successor or affiliate thereof to discharge or dismiss you for any other acts or omissions, but such other acts or omissions shall not be deemed, for purposes of this Addendum, to constitute grounds for termination for Cause. 

  (a)Change in Control. “Change in Control” shall have the meaning given to such term in the Stock Incentive Plan. Notwithstanding the foregoing, if a Change in Control would give rise to a payment or settlement event with respect to any amount hereunder that constitutes “nonqualified deferred compensation,” the transaction or event constituting the Change in Control must also constitute a “change in control event” (as defined in Treasury Regulation §1.409A3(i)(5)) in order to give rise to the payment or settlement event for such Award, to the extent required by Section 409A. 

   

  

   

    

  (b)COBRA. “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.  

     

  (c)Code. “Code” means the Internal Revenue Code of 1986, as amended.  

     

  (d)Constructive Termination. “Constructive Termination” means your voluntary resignation following the occurrence of any of the following events or conditions without your prior written consent: 

    

  (i)a material diminution in your title, authority, duties, or responsibilities; 

    

  (ii)a material diminution in your base compensation, unless such a reduction is imposed across-the-board to senior management of the Company;

  (iii)a material change in the geographic location at which you must perform your duties that increases your one-way commute by more than thirty (30) miles as compared to your then-current principal place of employment immediately prior to such relocation (provided that the requirement that you work remotely until the Company’s office in the San Francisco Bay Area, California, has been secured, work in the Company’s San Francisco Bay Area office consistent with the designated company hybrid model, and travel to the Company’s San Diego, California office as needed shall not constitute grounds for a Constructive Termination); or 

  (iv)any other action or inaction that constitutes a material breach by the Company or any successor or affiliate of its obligations to you under your offer letter or this Addendum.  

   You must provide written notice to the Company of the occurrence of any of the foregoing events or conditions without your written consent within sixty (60) days of the occurrence of such event.  The Company or any successor or affiliate shall have a period of thirty (30) days to cure such event or condition after receipt of written notice of such event from you.  Your resignation by reason of Constructive Termination must occur within thirty (30) days following the expiration of the foregoing thirty (30) day cure period. 

   Parent. “Parent” shall mean Connect Biopharma Holdings Limited.  

     

  (e)Relevant Period. “Relevant Period” shall mean the period beginning two (2) months prior to the effective date of a Change in Control and ending twelve (12) months after the effective date of a Change in Control. 

    

  (f)Section 409A. “Section 409A” shall mean Section 409A of the Code.  

     

  (g)Stock Incentive Plan. “Stock Incentive Plan” shall mean Parent’s 2021 Stock Incentive Plan, as amended from time to time.  

     

  (h)Termination Date. “Termination Date” shall mean the effective date of your termination of employment.EX-4.12

  Exhibit 4.12

  House Lease Contract

  Lessor: Taicang Science and Technology Venture Park Co., Ltd. (hereinafter referred to as “Party A”)

  Lessee: Suzhou Connect Biopharmaceuticals, Ltd. (hereinafter referred to as “Party B”) 

   

  In accordance with the “Civil Code of the People's Republic of China” and relevant provisions, in order to define the rights and obligations of the Lessor and the Lessee, Party A and Party B hereby sign this Contract upon negotiated consensus.

   

  Article 1 	Party A will lease the 3rd and the 4th floors of the R&D Building (East) at No. 6 West Beijing Road, Taicang City, to Party B for the company’s office use. Both parties confirm that the building area of the house is 2366.81 m2 (including but not limited to stairs, elevators, emergency passages, public passages and other public parts), and all expenses shall be calculated based on the said area. Unless otherwise agreed by both parties, the charged area of the house during the contract period will not be adjusted, to which Party B has no objection.

   

  Article 2 	 Lease period: from May 1, 2021 to April 30, 2023.

  When the lease contract is terminated upon expiration, if Party B proposes the renewal of the Contract, it shall notify Party A of its intention to renew the Contract in writing one month before the expiration of the Contract. Party A shall decide whether to renew the Contract according to the actual situation. If Party A agrees to renew the Contract, both parties shall sign a separate house lease agreement.

   

  Article 3 	 House rent, enterprise management service fee and the content of enterprise management service 

  1.	 The unit rent will be RMB 23/m2•month, so the total rent will be RMB 54,436.63/month. The enterprise management service fee will be RMB 7100/month. The total amount will be RMB 61536.63/month

  

  2.	 In order to facilitate Party B to enter the Taicang Science and Technology Venture Park & Overseas Students Venture Park for development, Party A may provide Party B with the following additional services. Nevertheless, regardless of whether Party A provides such services or not, it will not affect the normal collection of enterprise management service fee:

  (1) 	 Provide "one-stop" services such as the registration of establishment of a domestic company with the market regulation authority and the opening of a bank account;

  (2) 	 Provide consulting services related to annual inspection of enterprises;

  (3) 	 Provide policy-related consulting services and assist the resident enterprise in obtaining policy-based preferences;

  (4) 	 Assist the resident enterprise in applying for various scientific research projects and funds;

  (5) 	 Provide management-related consulting services such as corporate structure and governance model;

  (6) 	 Provide services to support the market development, assist the business negotiation, enterprise and product promotion, etc., to promote the connection between products and channels and between enterprises and markets;

  (7) 	 Provide services such as investors recommendation, the selection of investment scheme to promote the connection between capital and projects;

  (8) 	 Provide services such as new product development consulting, project evaluation, follow-up technical assistance, and the promotion of industry-university-research cooperation;

  (9) 	 Relevant services specified in the “Interim Regulations on Park Management”.

  3.	 Party A is a private enterprise. If the government introduces a policy of granting a rent reduction to resident enterprises in state-owned parks only under certain circumstances (such as the epidemic), Party A will not grant such rent reduction since it is not a state-owned park, and Party B has no objection with respect thereto.

   

  Article 4 	Mode of payment of house rent and enterprise management service fee

  Mode of payment: quarterly payment; the rent and enterprise management service fee for three months 

  

  shall be paid within five working days from the signing date of the Contract (subsequently, every three months shall be a payment cycle). The rent and enterprise management service fee for the next cycle, i.e., three months, shall be paid 15 days before the expiration of the 3rd month of the first cycle, and the rest may be deduced by analogy. After Party B’s payment, Party A shall issue an invoice.

  During the lease period, Party B shall not deduct any rent, enterprise management service fee and other expenses that it must pay to Party A in advance for any reason.

  Party B shall remit the rent and other expenses to the following account before the payment date as agreed in this Contract, and shall not delay or refuse the payment on the grounds that it has not received a reminder notice.

  Information of Party A’s account for collection of rent, enterprise management service fee and other expenses:

  Account Name: Taicang Science and Technology Venture Park Co., Ltd

  Opening Bank: Taicang Branch of China CITIC Bank

  Account No.: 7324710182800018835

  Party A’s act or factual state of accepting Party B’s rent and other expenses shall not be interpreted as a waiver of the legal liability arising from Party B’s breach of contract. Party B shall not use this as a defense for exemption from the liability for breach of contract.

  When Party B makes payment, if there is a previous arrear of water & electricity fee, overdue fine, enterprise management service fee, and rent, Party A may first deduct the above-mentioned arrear in the above order.

   

  Article 5 	Security deposit

  1. In order to ensure that Party B fully fulfills the lease contract, the leased house and its auxiliary facilities are safe and intact, Party B returns the house and handles the relocation of business license on time (after the expiration of the Contract or the cancellation of the Contract), Party B shall agree to pay Party A the rent and enterprise management service fee for one month as a security deposit at the time of signing this contract. During the lease period, before the termination of this Contract and the completion of house return 

  

  procedures, the security deposit shall not be required to cover the payable expenses such as rent, enterprise management service fee, water & electricity fee, etc., and Party A shall issue a receipt to Party B after receiving the security deposit.

  2. If Party B has one of the following circumstances, Party A shall have the right to directly make a deduction from the security deposit:

  (1) If Party B has any act of infringing rights or violating administrative laws and regulations, causing losses to Party A or any third party, Party A may withhold part or all of the security deposit to cover the economic losses suffered by Party A or any third party;

  (2) Party B’s leasing act must meet the relevant property management requirements; otherwise, Party A shall have the right to deduct the security deposit based on the severity of the circumstances.

  3. Where it is stipulated in this Contract that Party A has the right to deduct the above-mentioned security deposit, resulting in the insufficient part of the security deposit, Party B must make a supplement within seven days after receiving Party A’s written notice; otherwise, for each day of delay, Party B shall pay Party A 0.1% of the amount payable as liquidated damages; if the supplement is not completed after 30 days, it shall be deemed that Party B is in breach of this Contract, and Party A shall have the right to terminate this Contract without assuming any liability.

  4. If Party B has one of the following circumstances, the security deposit shall not be refunded:

  (1) Party B damages the leased house, or its auxiliary facilities and equipment, and refuses to compensate according to the price;

  (2) This Contract is cancelled due to Party B’s breach of contract, or Party B unilaterally cancels this Contract in advance;

  (3) Party B has a third-party debt during its operations, and the debt affects the lease or use of Party A’s house.

  5. Upon the expiration of lease period, Party B shall settle the arrears. If no loss has been caused to Party A, no third party has filed a lawsuit or arbitration and other outstanding matters, and Party B has moved out all movable items (with no damage to the renovation state of the house upon return, or restoration to the original state according to Party A’s requirements), completed the house return procedures, water, electricity, 

  

  business license and other item hand-over and move-out procedures, and settled the relevant expenses, Party A shall refund the security deposit (in the event of any deduction, it shall be the remaining security deposit after deduction) to Party B in a lump sum, without interest, within 15 working days.

  6. The security deposit shall have nothing to do with the rent, enterprise management service fee, water & electricity fee and other expenses paid by Party B during the performance of this Contract, which shall only be used as a guarantee for the safety and intactness of the leased house and equipment and facilities, and Party B’s return of the house and completion of the house handover procedures on time. Party B shall not invoke the security deposit to evade the obligation for the payment of rent, enterprise management service fee, and water & electricity fee, and shall not use the above-mentioned security deposit for external guarantees or transfer the security deposit.

   

  Article 6 	Party A’s rights and obligations 

  1. Party A shall provide intact office house, and guarantee the supply of water and electricity. In case of any failure, Party A shall solve it in a timely manner. The water & electricity fee shall be borne by Party B and withheld and paid by Party A, and Party B shall make payment in a timely manner according to Party A’s provisions. In the event of any breach of contract by Party B during the lease period, or when this Contract is cancelled or terminated, Party A shall have the right to stop the supply of water & electricity and other service guarantees, and Party B shall solely bear the losses caused thereby. Party B shall hereby agree not to claim against Party A for compensation in connection therewith from Party A.

  2. Party A shall be responsible for the repair of the house to ensure Party B’s normal and safe use. Party A’s responsibility for the repair of the house shall be limited to the original structure of the house, and the power supply lines and public parts that have not been modified by Party B; Party A shall be responsible for the management services of public areas.

  3. If there are the factors beyond Party A’s control that cause the instability or interruption of services such as water, electricity, network, etc., Party A need not assume any responsibility, but shall try its best to take effective measures to reduce the impact and losses caused thereby.

  4. In the event of any factual state caused by Party B’s act or breach of contract, resulting in that Party 

  

  A pays fees, fines, etc. to any third party, Party B shall pay the full amount within ten days after receiving Party A’s written notice; otherwise, Party A shall have the right to make a deduction directly from the security deposit.

   

  Article 7 	Party B’s rights and obligations 

  1. Party B shall not sublease, transfer, or lend the house arbitrarily, and shall not use the house for non-office use (warehouse, dormitory, etc.).

  2. Party B shall not use the leased house to conduct illegal activities and harm public interests.

  3. Party B shall guarantee to comply with the “Interim Regulations on Park Management”, the “Interim Regulations on Renovation Management” and other relevant provisions on management formulated by Party A; the text of the above-mentioned regulations shall be an appendix to the Contract, and Party B shall confirm the receipt of the text, read it carefully, and promise to comply with relevant regulations.

  4. If Party B renovates the house due to business needs, it shall not damage the structure and appearance of the house, and the outdoor unit of air conditioner shall not be hung outdoors without authorization and shall be placed at a location designated by the park. If the renovation involves the construction and modification of fire safety, it needs to declare to the relevant management department by itself according to national provisions. Party B shall submit a plan to Party A in writing before the renovation, which may be implemented only after Party A gives its consent; otherwise, Party B must bear the economic losses caused thereby. Party B needs to comply with the relevant regulations on renovation management formulated by Party A.

  5. The elevators, stairs, passages, and other public spaces on this floor shall be shared by all users, and Party B shall not hinder the use of others.

  6. Party B shall pay house rent, enterprise management service fee and other expenses on time.

  7. Party B shall comply with other provisions of Party A’s management department.

  8. Party B shall strictly abide by the Chinese laws and regulations on the protection of intellectual property rights, and solely assume the legal liability for any infringement or violation of intellectual property rights.

  

  9. When this Contract is cancelled or terminated, or when Party B leaves the park in advance due to various reasons, Party B must settle the house rent and enterprise management service fee in a timely manner. Party B shall promise that all items in the offices will not be removed before all expenses have been settled. In the event of forcible removal, Party A shall have the right to interfere. If any material losses and personal injuries of either party are caused due to this reason, Party B shall assume the economic and legal liabilities.

  10. When this Contract is cancelled or terminated, in addition to removing all detachable and removable equipment belonging to Party B in the leased site, in order to reduce dismantlement and renovation time, save social costs, and reduce the interference to the surrounding enterprises, Party B shall agree to give up the residual value of renovation and leave it for free use by any future enterprise, and Party A need not pay any form of compensation or indemnification to Party B. If Party A requires Party B to dismantle the renovation, Party B must dismantle the renovation completely, restore the leased site to its original state, and clean it up. The expenses of dismantlement and garbage transportation shall be solely borne by Party B, and it also needs to pay rent and management fee within time required for dismantlement and cleaning work.

  11. When this Contract is cancelled or terminated, if Party B is unable to return the leased site in a timely manner, from the next day until the return date of the leased site, Party B shall pay Party A liquidated damages equivalent to two times of the monthly rent and other expenses. At the same time, if Party A suffers other losses, Party B shall also pay compensation. If Party B still fails to evacuate and return the house for more than 15 days, it shall be deemed that Party B has given up all items in the leased site. Party A shall have the right to clear the site and recover the house  by itself, and Party B shall agree not to claim against Party A for compensation. The reasonable expenses for site clearance and house restoration to its original state shall be paid by Party B or deducted from the security deposit paid by Party B.

  12. When Party B returns the leased site, it shall not require Party A to purchase the interior renovation and various equipment funded by Party B.

  13.  Party B shall agree to pay attention to relevant notices of municipal construction, water & power outages, etc. by itself, and shall not file any claims against Party A in this regard.

  14. The ownership, use right, and publishing right of the public areas, exterior elevations of the houses (including the spaces of exterior elevations) and outdoor advertising spaces in the property project where the 

  

  leased house is located shall belong to Party A. Without the written consent of Party A, Party B shall not post, hang, and install any pictures, light boxes, posters, etc. that contain advertising contents outdoors independently. Party B shall have the right to publish all kinds of advertisements in the leased house, but all kinds of commercial advertisements and service information shall be published with healthy and true contents, and comply with the requirements of the “Advertising Law of the People’s Republic of China” and relevant laws and regulations. Party A shall have the right to exercise supervision and require rectification within a prescribed period.

  15. Party B shall assist Party A in the management work and publicity, education, and cultural activities of the venture park, cooperate on the statistical work of the venture park, and report the relevant statistics of technological enterprise incubator required by the relevant national and local departments to the venture park in a timely manner.

  16. If Party B is an enterprise involved in biological and chemical research and development (non-production type; for a production type, it needs to go through the relevant procedures for project establishment and pass the environmental assessment), except for research and development experiments, it is not allowed to produce or prepare hazardous chemicals (including but not limited to the chemicals such as sulfuric acid, perchloric acid, benzene, methanol, etc.) and contrabands (including but not limited to detonators, gun powders, medicines and intermediates, pharmaceutical raw materials, drugs, etc., and the products that may be produced only after a production license has been obtained according to the express provisions of the state) in the leased site. If Party A finds that Party B has the above-mentioned acts, Party A shall have the right to cancel this Contract and recover the house at any time.

  If Party B produces or prepares the above-mentioned contrabands privately, all legal consequences caused thereby shall be solely borne by Party B; Party B shall also bear the losses suffered by Party A for this reason.

   

  Article 8 	If Party B has one of the following circumstances, Party A may confiscate the security deposit, terminate the Contract, stop the supply of water & electricity and other service guarantees, and recover the house (Party B shall bear and be responsible for all losses caused thereby, including Party B’s 

  

  renovation, etc.):

  1. Party B subleases, transfers, or lends the house arbitrarily, or changes the purpose of the house arbitrarily;

  2. Party B uses the leased house to conduct illegal activities;

  3. Party B delays the payment of rent and enterprise management service fee for two months (in the event of Party B’s delay in the payment of rent, enterprise management service fee, etc., causing Party A’s losses, Party B agrees that Party A is free  to dispose the office furniture, office supplies and other assets left by Party B in the house to cover the arrears owed by Party B, and Party A shall reserve the right to pursue the legal liability of Party B);

  4. Without the written consent of Party A, Party B dismantles and changes the load-bearing structure of the leased house arbitrarily, or damages the leased house intentionally;

  5. Party B is confronting a financial crisis or will confront liquidation or bankruptcy;

  6. Any assets of Party B in the house are attached or seized.

   

  Article 9 Change of the Lessor and the Lessee

  1. If Party A transfers the ownership of the house to any third party, this Contract shall continue to be valid for the new owner of the house.

  2. If Party A sells the house, it must notify Party B three months in advance.

  3. If Party B terminates this Contract in advance, it shall notify Party A in writing one month in advance.

   

  Article 10 Special provisions

  1. Party B’s legal representative and shareholders shall provide Party A with a joint and several liability guarantee for all expenses and liabilities incurred under this Contract (including but not limited to rent, enterprise management service fee, water & electricity fee, communication fee, liquidated damage, attorney fee, etc.), and the guarantee period shall be two years from the expiration date of the performance period of the last installment of expenses.

  2. Party B shall not present properties, pay rebates or give other illegitimate benefits to the employees 

  

  of Party A. Otherwise, once it is verified, Party A shall have the right to unilaterally increase the rent standard as agreed in this Contract by 20% - 30%, and Party B shall give its approval for this.

  3. Party B shall confirm that during the lease period, the leased site is also the effective notification address of Party B. Party A shall have the right to choose to post the notices under this Contract on the doors, windows, or walls of the leased site; once posted, such notices shall be deemed to have been served on Party B, and shall be deemed to have already been known to Party B.

   

  Article 11 Liability for breach of contract

  1. If either party terminates this Contract in advance without justifiable reasons and causes economic losses to the other party, it shall pay compensation.

  2. If the Lessee delays the payment of rent, in addition to making up the payment in a timely manner, it shall pay the liquidated damages at a daily rate of 0.05% from the date when the payment is delayed.

   

  Article 12 Conditions for disclaimer of liability

  Party B shall hereby expressly agree and declare that, unless the following accidents and losses are caused by Party A’s willful acts or gross negligence, Party A need not be liable to Party B or any third party in any of the following circumstances; if the following losses are caused by any third party, Party A shall assist B to claim against the third party for compensation from the third party:

  1. Any economic losses or damages to Party B caused by the defects or malfunctions of the public facilities (including but not limited to fire protection, security equipment, air-conditioning equipment) or other equipment in the property where the house is located;

  2. Any economic losses or damages to Party B caused by the failure, malfunction, or suspension of the electricity, tap water, and other supplies in the property where the house is located;

  3. Any economic losses or damages to Party B caused by the theft or robbery of the property where the house is located or of the house;

  4. Any economic losses or damages to Party B caused by Party A’s restriction on the use of water, electricity, central air-conditioning, etc. according to the circumstances due to the government’s rationing  of 

  

  water, electricity, and other public resources;

  5. The necessary impacts caused by the normal maintenance of public facilities in the property where the house is located;

  6. The house is damaged or causes losses to Party B due to other force majeure events.

   

  Article 13 Conditions for dispute resolution

  1. If there is any dispute arising during the performance of this Contract, both parties shall resolve it through consultations, failing which, they may file a lawsuit with the Taicang People’s Court.

  2. If Party A files a lawsuit due to Party B’s breach of contract, Party A shall have the right to claim against Party B for the attorney fee incurred thereby.

   

  Article 14 The matters not covered in this Contract shall be subject to the relevant provisions of the “Civil Code of the People’s Republic of China”, and supplementary provisions shall be made after the mutual consultations between both parties to this Contract. The supplementary provisions shall have the same effect as this Contract.

   

  Article 15 This Contract shall be made in quadruplicate, and both parties shall hold two copies respectively.

   

   

   

  

  Party A: Taicang Science and Technology Venture Park Co., Ltd.

  Agent (Signature): /s/ Hu Yutian (胡雨田)

   

  (Month) (Day) (Year)

  [seal:] Taicang Science and Technology Venture Park Co., Ltd. 

  3205850937840 (太仓市科技创业园有限公司)

  Party B: Suzhou Connect Biopharmaceuticals, Ltd. 

  Guarantor (signature): /s/ [STAMPED]

  [seal:] Suzhou Connect Biopharmaceuticals, Ltd. 3205851965705

   

  April 9, 2021

  (Month) (Day) (Year)

  [seal:] Suzhou Connect Biopharmaceuticals, Ltd.

  3205851965705 (苏州康乃德生物医药有限公司)

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