Document:

EX-10.9

 Exhibit 10.9 

*** = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the
Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
 TLC BIOPHARMACEUTICALS (H.K.)
LIMITED 
 SHAREHOLDERS’ AGREEMENT 

            , 2018 

			
	Strictly Confidential	  	Shareholders’ Agreement

  

 THIS SHAREHOLDERS’ AGREEMENT (as executed and as it may be amended, modified,
supplemented or restated from time to time, as provided herein, this “Agreement”), dated as of             , 2018, is entered into among TLC Biopharmaceuticals (H.K.)
Limited, a private company incorporated and existing under the laws of Hong Kong (the “Company”, collectively with its subsidiary, the “TLCHK Group”); and Taiwan Liposome Company, Ltd. (“TLC”) and

 (“JX”), (each, a “Shareholder” and, collectively, the “Shareholders”). 

RECITALS 
 WHEREAS,
TLC and JX entered into a Strategic Alliance Agreement on January 22, 2018 (“Strategic Alliance Agreement”), pursuant to which TLC sold to JX and JX purchased from TLC thirty-three point four percent (33.4%) of the existing and
outstanding shares of the Company’s Common Stock (the “Sale Shares”); 
 WHEREAS, the Company and the
Shareholders desire to enter into this Agreement to set forth their understanding and agreement as to the shares of the capital stock of the Company (“Shares”) held by the Shareholders, including the voting, tender and transfer of
the Shares under the circumstances set forth herein; 
 WITNESSETH, NOW, THEREFORE, in consideration of the foregoing recitals, the
mutual promises hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties intending to be legally bound hereto hereby agree as follows: 

The capitalized terms not defined herein shall have the meaning set forth in the Strategic Alliance Agreement. 

 

	1.	 RIGHT OF FIRST OFFER IN CAPITAL INCREASE  

 

	1.1	 Ordinary Right of First Offer 

Subject to (i) Special Right of First Offer as provided in Section 1.2 and (ii) the
subscription under the anti-dilution arrangement as provided in Section 6.1, the Shareholders and other shareholders of TLCHK (if any) shall each have a right of first offer to subscribe to additional Shares issued by the
Company on a pro-rata basis based on its then shareholding of the Shares in the Company. 
  

	1.2	 Special Right of First Offer 

(a) Upon or prior to the achievement of the First Milestone Event (defined below), JX shall have the right to invest *** in the
Company at the pre-closing valuation of ***; 
 (b) Upon or prior to the achievement
of the Second Milestone Event (defined below), JX shall have the right to invest *** in the Company at the pre-closing valuation of ***; 

  
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	Strictly Confidential	  	Shareholders’ Agreement

  

 (c) Following the closing of JX’s investment following the exercise of
its right(s) and provided that there is no other issuance of shares of the Company upon capital increase, JX will own the equity interest percentage in the Company as below, and if there is other issuance of shares or JX does not exercise its right
to invest with respect to the First Milestone Event, such percentage shall be adjusted accordingly: 
  

					
	 	  	 First Milestone Event
	  	 Second Milestone Event

	 First Milestone Investment
	  	***	  	
	 Second Milestone Investment
	  		  	***
	 Total Shareholding in the Company
	  	***	  	***

 Subject to the compliance with Sections 6.1 and 6.3, in addition to the Special
Right of First Offer in connection with achievement of the milestones, JX shall have the right of first offer for the issuance of new Shares based on the subscription amount and valuation decided in good faith by the Board. JX shall be also entitled
to exercise its Special Right of First Offer under this Section 1.2 when the Company and TLC enter into a development and technical services agreement in accordance with Section 4.3 of the
Commercialization Agreement. 
 (d) JX shall notify the Company and TLC in writing of its exercise of Special Right of First
Offer in the capital increase within *** business days after JX’s receipt of the Company’s notice of the occurrence of either Milestone Event, and complete the payment within *** days thereafter. A “business day” means a day on
which licensed banks in Hong Kong and banks in Taiwan are open for business (excluding Saturday and Sunday). 
 (e) If JX
waives or fails to exercise its Special Right of First Offer, or fails to make the payment within the period prescribed above, TLC shall have the right to exercise its right to invest in the Company under the same investment amount and company
valuation within *** business days after such waiver or failure and complete the payment within *** days thereafter. If TLC elects not to exercise, or fails to complete the investment within aforementioned period, TLC and JX agree to seek for
investment from third party investor(s) to subscribe to the new Shares under the same terms and conditions (including that the third party investors’ consent to be bound by the terms and conditions of this Agreement as a Shareholder) within
***. 
 (f) The First Milestone Event and Second Milestone Event referred hereto shall mean satisfaction of all the following
events after the date of this Agreement with respect to the TLC Products: 
  

	 	(i)	 First Milestone Event: 

*** 
  

	 	(ii)	 Second Milestone Event: 

*** 

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

			
	Strictly Confidential	  	Shareholders’ Agreement

  

	2.	 RESTRICTIONS ON SALE 

TLC shall not sell, pledge, mortgage, hypothecate, encumber, dispose through one or a series of transaction, or transfer its
Shares (“Transfer”) to any person without the prior consent of JX. Except with TLC’s prior written consent, JX shall not transfer the Company’s Shares to any third party which engages in business in competition with, the
businesses TLC currently engages in (such third parties, collectively, “TLC Competitors”), or any related party of any of the TLC Competitors or any party controlling any of the TLC Competitors (as defined in International Financial
Reporting Standards). It shall be a condition to the closing of the Transfer that the new transferee shall agree to be bound by the terms and conditions of this Agreement as a Shareholder. The other Party shall have the right of first refusal to
purchase by itself or through a designee any Shares proposed to be sold by JX or TLC on the same terms and conditions offered to the potential purchaser. Any Change in Control in TLC shall not constitute a Transfer. For purposes of this Agreement, a
“Change in Control” with respect to an entity shall mean any merger or acquisition by a third party or a group of third parties acting in coordination of control of more than fifty percent (50%) shares of such entity or sale of all
or substantially all of such entity’s assets and businesses. 
  

	3.	 PROTECTIVE PROVISION 

Any TLCHK Group member shall not, either directly or indirectly by amendment, merger, consolidation or otherwise, do any of the
following without (in addition to any other vote required by the TLCHK Group members’ constitutional documents) the written consent or affirmative vote of the holders of at least *** majority of all then outstanding Shares of the Company, given
in writing or by vote at a meeting, consenting or voting as a single class on an as converted to ordinary shares basis, and any such act or transaction entered into without such consent or vote shall be null and void ab initio, and of no
force or effect: 
 *** 

In addition to the satisfaction of any voting requirements under Company’s Articles of Association, the TLCHK Group shall
not ***, or ***, except ***. 
 For any resolution related to ***. 

 

	4.	 BOARD COMPOSITION AND MANAGEMENT 

 

	4.1	 Board Composition 

 

	 	(a)	 Immediately after the closing and sale of the Sale Shares, each Shareholder shall vote all of his, her or its
respective Shares (whether now owned or hereafter acquired or which the Shareholder may be empowered to vote) and shall cause its nominated directors at the Company’s Board to cause the Company to vote all of its voting power, in whatever
manner as necessary to ensure that at each annual or special meeting of shareholders of the Company or its subsidiary at which an election of directors is held, the persons nominated in accordance with this Section 4.1
shall be elected as directors of TLCHK Group members to comprise the full board of directors consisting no more than three (3) authorized directors; 

  
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Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

			
	Strictly Confidential	  	Shareholders’ Agreement

  

	 	(b)	 Between TLC and JX, whichever holds greater Shares in the Company shall be entitled to nominate two
(2) voting directors in each TLCHK Group member, while the other Shareholder shall be entitled to nominate one (1) voting director in each TLCHK Group member, provided that if TLC and JX hold the same number of Shares in the Company, each
of them is entitled to nominate one (1) voting director in each TLCHK Group member. However, any Shareholder holding less than *** of Shares of the Company shall not be entitled to the nomination rights under this
Section 4.1(b). 

  

	 	(c)	 TLC hereby initially nominates *** as the voting directors of the Company; and *** as the voting directors of
TLC Shanghai; 

  

	 	(d)	 JX hereby initially nominates *** as the voting director of the Company; and *** as the voting director of TLC
Shanghai. 

  

	 	(e)	 The Shares held by a Shareholder and its affiliates shall be counted together. 

 

	4.2	 Management 

Immediately after the closing of the sale of the Sale Shares, the General Manager and the Head of Finance/Chief Finance Officer
of the Company shall be appointed and engaged by the Board. 
  

	5.	 COMPULSORY BUY BACK 

 

	5.1	 Obligation of Buy Back 

JX may, upon the occurrence of any of the following triggering events, request TLC to buy back any or all Shares of the Company
then held by JX in accordance with the terms and conditions set forth in this Section 5: 
 ***

 TLC shall provide a written notice to JX promptly after occurrence of any of the foregoing triggering events. 

The buy back price of the Shares shall be ***, except for the buy back under Section 6.7. 

 

	5.2	 Exercise of Buy Back Obligation 

The request for buy back shall be effected by delivery of a written notice by JX to TLC (“Demand Notice”)
stating the number of Shares it would sell to TLC (“Buyback Shares”). The buyback demand must be made no later than *** after the later of the occurrence of a triggering event set forth in Section 5.1 or
the date on which JX received TLC’s written notice of the triggering event; or JX’s right to make such demand shall be forfeited. TLC shall complete the purchase of the Buyback Shares within *** after receipt of the Demand Notice. TLC
shall be entitled to, at its own discretion, to find third party purchasers to acquire the Buyback Shares. No waiver by JX of any of its rights under this Section 5 upon the occurrence of any

  
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Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

			
	Strictly Confidential	  	Shareholders’ Agreement

  

 
triggering event shall constitute a subsequent waiver of such rights in the future occurrence of such events or other events. 

 

	5.3	 Termination of Buy Back Obligation 

TLC’s buy back obligations under the trigger events set forth in Sections 5.1(i), (ii) and (iii) shall be
terminated if ***. 
  

	6.	 OTHER COVENANTS 

 

	6.1	 Anti-Dilution 

As long as TLC performs its obligations under the services agreement entered into in accordance with
Section 6.1 of the Strategic Alliance Agreement, the Shareholders of the Company shall take any necessary actions to ensure TLC will maintain its shareholding at the Company at *** on a fully diluted, regardless of
any future fund raisings without any further contribution of cash or other assets. 
  

	6.2	 M&A Event 

If there is a transaction that if consummated may results in a Change in Control (“M&A Event”) in the Company or
TLC Shanghai at a price of at least *** within *** after the execution of this Agreement, the acquirer of the M&A Event shall first pay TLC a preference amount (“TLC Preference Payment”) before it may proceed with the closing of
the M&A Event. The Shareholders covenant that they shall not enter into any agreement or commitment *** and shall not vote in favor of such *** a shareholders’ voting is required until *** commits in writing to such TLC Preference Payment.
The TLC Preference Payment shall be an amount equal to US$60,000,000 in proportion to the percentage of the assets or shares of the Company or TLC Shanghai to be acquired by the acquirer. By way of example, if ***, then the TLC Preference Payment
shall be ***. 
  

	6.3	 Equity Incentive Plan 

JX and TLC agree to establish an equity incentive plan at TLC Shanghai. The equity securities covered in the equity incentive
plan shall represent at least *** of the equity interest in TLC Shanghai and the eligible persons shall include TLC Shanghai’s management, operation and technology personnel. Details of the equity incentive grants shall be determined by the
Shareholders in accordance with Section 3 hereof. 
  

	6.4	 Anti-Corruption 

The Shareholders hereby undertake that they will comply, and ensure their affiliates (as regulated under the U.S.
Foreign Corrupt Practices Act), the Company and TLC Shanghai to comply with the laws of anti-bribery, anti-corruption, books and records, internal control and anti-money laundering adopted in the jurisdictions where such entities have operations,
including the U.S. Foreign Corrupt Practices Act. 
  

	6.5	 Understanding of Intellectual Property Rights 

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

			
	Strictly Confidential	  	Shareholders’ Agreement

  

 TLC covenants not to sue the Company based on any reason for infringement in
the China Territory of its intellectual property rights relating to the TLC Products as long as the Company is in full compliance with the agreements entered into between the Company and TLC. 

TLC will, jointly with the Company, initiate legal actions against the third party for infringement in the China Territory of
its intellectual property rights relating to the TLC Products. The Company has the right to request TLC to participate in or initiate related legal procedures. *** costs and expenses related to such legal procedures. 

 

	6.6	 Special Provisions for Change of Control 

When JX holds more than *** of the Shares of the Company, after occurrence of an M&A Event of TLC, TLC shall no longer have
the rights set forth in ***. Any M&A Event undertaken by or in relation to TLC shall in no event affect TLCHK Group’s rights, interests and benefits under the Commercialization Agreement. If TLC after the M&A event ceases to be a
Taiwanese company and is no longer bound by the regulations governing the relationship between Taiwanese and Mainland China companies, TLC Hong Kong will be entitled to, as of the closing of such M&A Event, an exclusive, perpetual and fully paid
right to commercialize, research and develop and manufacture the TLC Products as stipulated in the Commercialization Agreement that it would not otherwise be entitled to. 
  

	6.7	 Additional Covenants of TLC 

Occurrence of any of the following events shall constitute a special default event (“Special Default Event”):

  

	 	(i)	 As long as JX is in full compliance with this Agreement and as long as the Commercialization Agreement is in
effect, TLC grants any rights to any third party to develop or commercialize in the China Territory the TLC Products or Derivative Products or set up any entity or any joint venture entity with a third party to compete with the Company in the China
Territory; provided that TLC may grant necessary rights under TLC Products and Derivative Products to the contract research organizations for their performance of services in the China Territory to the extent that they will not jeopardize TLCHK
Group’s rights under the Commercialization Agreement; or 

  

	 	(ii)	 TLC willfully commits a material breach of this Agreement or any agreement entered into between TLC and the
TLCHK Group, which results in any TLCHK Group member’s failure to conduct equity financings, including without limitation, IPO, mergers, acquisitions or external fund raisings. 

Upon occurrence of a Special Default Event, JX may demand TLC to buy back Shares under Section 5 (for
the avoidance of doubt, Section 5.3 shall not apply to the buy back under this Section 6.7) and the buyback price of the Shares shall be ***, or in lieu of the demand for buyback under
Section 5.1, JX may request TLC to, and TLC shall, rectify the breach and pay to JX the higher of (i) the actual damages incurred by JX and (ii) the liquidated damages in the amount equal to ***, which is a
genuine pre-

  
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Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

			
	Strictly Confidential	  	Shareholders’ Agreement

  

 
estimate of reasonable damages determined in good faith and not a penalty. The Parties agree that damages is not adequate remedy for breach of this Section 6.7 and
specific performance or injunction or other appropriate relief may be sought. 
 JX’s buyback demand under
Section 5 shall not prejudice other rights and/or remedies JX is entitled to under the Transaction Agreements. 
  

	7.	 EFFECTIVE DATE, TERMINATION AND INDEMNITY 

 

	7.1	 Unless otherwise provided for in this Agreement, this Agreement shall take effect upon the closing and
sale of the Sale Shares under the Strategic Alliance Agreement and continue in effect until it is terminated by a written instrument referencing this Agreement and signed by the Company and all Shareholders to this Agreement. 

 

	7.2	 This Agreement shall terminate and be of no further force or effect immediately prior to the
consummation of an IPO of the Company. If this Agreement is terminated pursuant to this Section 7, this Agreement shall become null and void and of no further force and effect. Nothing in this
Section 7 shall be deemed to release any Party from any liability for any breach of this Agreement prior to the effective date of such termination. 

 

	7.3	 A Party shall indemnify the other Party harmless against any losses, penalties, claims, cost and
expenses actually incurred by the other Party arising from its breach of, or failure in performance of this Agreement to the extent that they are reasonably foreseeable. TLC shall indemnify JX against any losses, penalties, claims, cost and expenses
actually incurred by JX arising from TLC’s breach of, or failure in performance of any agreement with any member of the TLCHK Group to the extent that they are reasonably foreseeable. 

 

	8.	 MISCELLANEOUS 

 

	8.1	 No Waiver: Cumulative Remedies. No failure or delay on the part of either Party in exercising any
right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy
hereunder. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 

  

	8.2	 Addresses for Notices, etc. All notices, requests, demands and other communications provided for
hereunder shall be in writing (including telegraphic communication) and mailed, by certified or registered mail (in case of international delivery, by air mail), or by air express courier, or sent by facsimile or delivered to the applicable party at
the addresses indicated below: 

 If to the Company 

Attention: *** 

Address: *** 

  
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Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

			
	Strictly Confidential	  	Shareholders’ Agreement

  

 Facsimile: *** 

Telephone: *** 

Email: *** 

If to TLC 

Attention: *** 

Address: *** 

Facsimile: *** 

Telephone: *** 

Email: *** 

If to JX 

Attention: *** 

Address: *** 

Facsimile: *** 

Telephone: *** 

Email: *** 

All such notices, requests, demands and other communications shall, when mailed or faxed, be effective upon receipt or when
transmission acknowledgement is received, addressed as aforesaid; provided, that any such notice, request, demand, or other communication sent by registered or certified mail (or its equivalent) shall be deemed to have been given upon the sooner of
the date on which receipt is acknowledged or the expiration of ten (10) days after deposit with a governmental or quasi-governmental agency responsible for the mails, or a courier of international reputation. 

 

	8.3	 Binding Effect, Assignment. This Agreement shall be binding upon and inure to the benefit of the
Shareholders and their respective permitted successors and assigns. Neither the Shareholders may assign any of its rights or delegate any of its obligations under this Agreement without the express written consent of the other Shareholders. Any
third party shall agree to be bound by this Agreement upon or before it becomes a shareholder of the Company. 

  

	8.4	 Prior Agreements. This Agreement constitutes the entire agreement between the parties and supersedes
any prior communications, understandings, term sheets or agreements concerning the subject matter hereof; provided, however, that nothing in this Agreement shall be deemed to terminate or supersede the provisions of any confidentiality or
nondisclosure agreements executed by the parties hereto prior to the date of this Agreement, which agreements shall continue in full force and effect until terminated in accordance with their respective terms. 

 

	8.5	 Severability. The invalidity or unenforceability of any provision hereto shall in no way affect the
validity or enforceability of any other provision. 

  

	8.6	 Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of ***,
without giving effect to its conflict of laws rules, policies, and procedures.  

  
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Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

			
	Strictly Confidential	  	Shareholders’ Agreement

  

	8.7	 Dispute Resolution. 

 

	 	(a)	 The Parties shall attempt to resolve amicably through consultation any dispute, controversy, difference or
claim arising in any way whatsoever out of or in connection with this Agreement (including, without limitation, claims for set off or counterclaim), the legal relationship established by this Agreement, including any question regarding its
existence, interpretation, breach, termination or validity, or any dispute regarding non-contractual obligations arising out of or relating to this Agreement (a “Dispute”). Such consultation
shall begin immediately after one party has delivered to the other party a written request for such consultation in respect of the Dispute. If within *** from the date of such written notice (or such longer period as agreed in writing by the
parties) any Dispute is not resolved, the Dispute shall be submitted to arbitration in accordance with the following provisions. 

  

	 	(b)	 The Dispute shall be referred to and finally resolved by arbitration in *** administered by the *** under the
*** (the “Rules”) in force when the Notice of Arbitration is submitted in accordance with the Rules. The Rules are deemed to be incorporated by reference into this clause and are subject to the rest of this clause. The seat of
arbitration shall be ***. There shall be three (3) arbitrators. The arbitration proceedings shall be conducted in English. The arbitrator shall be qualified ***. The law of this arbitration clause shall be *** law. 

 

	8.8	 Fees and Expenses. Each party to this Agreement shall be responsible for its respective fees or
expenses incurred in the negotiation and consummation of the transactions contemplated under this Agreement. 

  

	8.9	 Headings. Section and Subsection headings in this Agreement are included herein for convenience of
reference only and shall not constitute a part of this Agreement for any other purpose. 

  

	8.10	 Counterparts. This Agreement may be executed in any number of counterparts, all of which taken together
shall constitute one and the same instrument, and any of the parties hereto may execute this Agreement by signing any such counterpart. 

[Remainder of this page intentionally left blank] 

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

			
	Strictly Confidential	  	Shareholders’ Agreement

  

 IN WITNESS WHEREOF, the parties have executed this Shareholders’ Agreement as of
the date first above written. 
 TLC Biopharmaceuticals (H.K.) Limited 

			
		
	By:	 	  

		 	 Name: ***

		 	 Title: ***

  
 SIGNATURE PAGE TO
SHAREHOLDERS’ AGREEMENT 
  

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

			
	Strictly Confidential	  	Shareholders’ Agreement

  

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

			
	Taiwan Liposome Company, Ltd.
		
	By:	 	  

		 	 Name: ***

		 	 Title: ***

  
 SIGNATURE PAGE TO
SHAREHOLDERS’ AGREEMENT 
  
  

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

			
	Strictly Confidential	  	Shareholders’ Agreement

  

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

 (

) 

			
		
	By:	 	  

		 	 Name:

		 	 Title:

  
 SIGNATURE PAGE TO
SHAREHOLDERS’ AGREEMENT 
  
  

 *** = Certain confidential information contained in this document, marked by brackets, has
been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended.EX-10.10

 Exhibit 10.10 

*** = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the
Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
 TLC BIOPHARMACEUTICALS (H.K.)
LIMITED 
 COMMERCIALIZATION AGREEMENT 

            , 2018 

 

			
		  	 Commercialization Agreement

Confidential

  

 This COMMERCIALIZATION AGREEMENT (“Agreement”) is entered into as of
            , 2018 (the “Signing Date”) 

BY AND BETWEEN 
 Taiwan
Liposome Company, Ltd., a company established and existing under the laws of Republic of China, having its principal place of business at 11F-1, No 3, Yuanqu St., Nankang District, Taipei Taiwan 11503 and
its facsimile number of +886-2-26557366 (“TLC”, together with its subsidiaries (other than TLC Hong Kong and its subsidiaries), “TLC
Group”); 
 and 

TLC Biopharmaceuticals (H.K.) Limited, a company established and existing under the laws of Hong Kong, having its principal place of
business at

 and its facsimile number of +886-2-26557366 (“TLC Hong Kong”, together with its subsidiaries “TLCHK
Group”) 
  

	TLC	 Hong Kong and TLC each may be referred to as a “Party” or collectively as the “Parties”.

  

	WHEREAS:	 

  

	1.	 TLC is a specialty biopharmaceutical company focusing on research and development and commercialization
of innovative pharmaceutical products through its proprietary products delivery technologies. It has developed and intended to distribute certain pharmaceutical products in the China Territory; 

 

	2.	 TLC Hong Kong will establish a sales organization and
sub-distributors operating throughout the China Territory and will be capable of commercializing the TLC Products in the China Territory; and 

 

	3.	 TLC intends to appoint TLC Hong Kong to exclusively commercialize certain products throughout the China
Territory on the terms and conditions set out in this Agreement, and TLC Hong Kong intends to accept such appointment. 

  

	NOW,	 THEREFORE, TLC Hong Kong and TLC hereby agree as follows: 

 

	1.	 DEFINITION 

  

	 	(a)	 “Applicable Law” means all applicable laws, rules, regulations, guidelines and
requirements of any governmental authority related to the registration, manufacture, importation, exportation, distribution, and marketing of the TLC Products in the China Territory. 

 

	 	(b)	 “CFDA” means Food and Drug Administration in the People’s Republic of China.

  

	 	(c)	 “China Territory” means the People’s Republic of China
(“China”), including Hong Kong and Macau. For the avoidance of doubt, the China Territory does not include Taiwan, Republic of China, and for TLC 166, the China Territory does not include Macau and Hong Kong.

  

	 	(d)	 “Commercialization or Commercialize” means, with respect to the
TLC Products, any and all processes and activities conducted to obtain Market Approvals, establish and maintain sales for such TLC Products (including with respect to reimbursement and patient access), including bidding, hospital listing,
distribution, obtaining pricing approval, offering for sale, detailing, selling (including launch), pre-launch, launch, market, discounting, preparing branding, developing promotional materials, organizing
speakers program, manufacturing, and promoting the TLC Products. 

  
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Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

			
		  	 Commercialization Agreement

Confidential

  

	 	(e)	 “Day” means calendar day herein. 

 

	 	(f)	 “Derivative Products” mean the ***. 

 

	 	(g)	 “Market Approvals” means the
GMP certificate, product license, registration, marketing authorization or any other approval necessary from the CFDA for the manufacturing, importation, or Commercialization of the TLC Products in the China Territory. 

 

	 	(h)	 “Strategic Alliance Agreement” means the Strategic Alliance Agreement
entered into on January 22, 2018 between TLC and JX for JX to purchase shares of TLC Hong Kong. 

  

	 	(i)	 “Third party” means a person or an entity other than TLC Hong Kong and
any members in TLC Group or TLCHK Group. 

  

	 	(j)	 “TLC Products” means the current drugs and pipeline products (including their
improvements) that TLC has developed by itself, including but not limited to TLC166, TLC177, TLC178, TLC399 and TLC599. 

  

	 	(k)	 “JX” means

 (

). 

  

	 	(l)	 “Shareholders’ Agreement” means the shareholders’ agreement entered into by
TLC, JX and TLC Hong Kong. 

  

	2.	 COMMERCIALIZATION 

 

	 	2.1	 Exclusive Commercialization. Subject to the terms and conditions of this Agreement, and effective as of
the completion of the Closing as set forth in the Strategic Alliance Agreement, TLC grants TLC Hong Kong the exclusive and fully paid right to Commercialize the TLC Products in the China Territory. TLC hereby confirms that if any counterparty to a
drug commercialization agreement or similar contract with TLC Group engages in the Commercialization of any TLC Products in the China Territory, or any sales of TLC Products into the China Territory, such engagement will be deemed a violation of its
contract with TLC Group and TLC will (and will procure other members of the TLC Group to) enforce its contractual rights against such counterparty. 

  

	 	2.2	 Market Approvals. TLC Hong Kong shall be responsible for obtaining all relevant Market Approvals at its
cost in the China Territory for the TLC Products. TLC Hong Kong will, at its expense, maintain the Market Approvals in the China Territory, TLC shall have the right of reference to such Market Approvals for the purpose of seeking, obtaining and
maintaining regulatory approvals for the TLC Product in and outside the China Territory or for Commercialization of the TLC Product outside the China Territory. 

 

	 	2.3	 Sale outside the China Territory. TLC Hong Kong may not, without prior written consent from TLC,
market, sell, or distribute the TLC Products to any customers outside the China Territory. 

  

	 	2.4	 Sub-Authorization. TLC agrees that TLC Hong Kong may grant a sub-authorization to its wholly owned subsidiary that such subsidiary may be entitled to all TLC Hong Kong’s rights hereunder provided that such subsidiary shall comply with the terms and conditions of this
Agreement. 

  
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	 	2.5	 Governmental Approvals. The Parties acknowledge that if TLC’s performance of any obligations under
this Agreement requires any applicable governmental approval, TLC will not be deemed in breach for failure to perform that obligation until receipt of the necessary governmental approvals. TLC will use its best efforts to obtain such approvals when
required. 

  

	3.	 COMMERCIALIZATION OF TLC PRODUCTS & COVENANTS 

 

	 	3.1	 Commercially Best Efforts. TLC Hong Kong shall use its commercially best efforts to Commercialize and
sell reasonable quantities of the TLC Products in the China Territory and to stimulate and increase interest in the TLC Products in the China Territory. TLC Hong Kong shall use commercially best efforts to commit sales, marketing, and accounting
management and servicing resources and to provide marketing and promotional materials and efforts for the TLC Products in the China Territory. 

  

	 	3.2	 Duties of TLC Hong Kong. TLC Hong Kong shall be responsible for the activities and associated costs of
Commercialization of the TLC Products in the China Territory. TLC Hong Kong and its designees (s) shall handle, store, and distribute TLC Products in accordance with this Agreement, TLC Products specification provided by TLC, and
Applicable Law. 

  

	 	3.3	 Product Complaints. If either TLC Hong Kong or TLC learns of any complaints/claims concerning the TLC
Products, the Party learning of such complaints or claims shall advise the other Party within forty-eight (48) hours by telephone, confirmed in writing within five (5) business days thereafter. 

 

	 	3.4	 Compliance. Both TLC and TLC Hong Kong shall comply with all Applicable Law in connection with the
activities contemplated by this Agreement. The Parties further agree to use their best efforts to negotiate and execute any amendments hereto that may be deemed necessary or appropriate to maintain compliance with any Applicable Law to either Party.

  

	4.	 PRODUCT SUPPLY AND SUPPORT, QUALITY ASSURANCE & REGULATORY RESPONSIBILITIES

  

	 	4.1	 Product Supply and Support. TLC agrees to provide to TLC Hong Kong with supports and information
necessary for commercialization of TLC Products and the performance of other provisions herein, including but not limited to (i) using its best efforts to supply or cause a third party to supply TLC Products in reasonable quantities to
TLC Hong Kong, (ii) providing related personnel training program, and (iii) providing related clinical test data. After TLC Hong Kong makes its reasonable request, TLC shall provide within a reasonable period,
(i) related clinical test data and personnel training and information with no cost to TLCHK Group, and (ii) any other foregoing supports for consideration. 

 

	 	4.2	 Supply Price. As the sole Market Approval holder of TLC Products in the China Territory, the supply of
the TLC Products will be at the price ***. TLC shall provide to TLC Hong Kong *** promptly upon request by TLC Hong Kong. 

  

	 	4.3	 Special Assistance. Upon request by TLC Hong Kong, TLC and TLC Hong Kong will negotiate in good faith
the terms and conditions of a separate development and technical services agreement relating to the Derivative Products, which will include 

  
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the following, subject to any applicable regulatory approvals, if any, and at the consideration agreed by the parties: 

(a) TLC Hong Kong and its wholly owned subsidiary’s exclusive and fully-paid right to use TLC’s intellectual property
rights in the China Territory to develop and commercialize the Derivative Products; 
 (b) TLC’s obligation to provide
technical services as necessary or desirable for the development of the Derivative Products; and 
 (c) TLC Hong Kong or its
wholly owned subsidiary shall be entitled to the same rights to the Derivative Products in the China Territory as TLC Hong Kong otherwise enjoys with respect to the TLC Products. 

For the avoidance of doubt, if TLC Group in the future develops any new drug product outside of the TLC Products, as long as
TLC holds at least *** of the equity interest in TLC Hong Kong on a fully diluted basis, TLC Hong Kong will be entitled to the same extent of the right of commercialization as the TLC Products for no further consideration. 

 

	 	4.4	 Production Assistance. Subject to any applicable regulatory approvals, if any, TLC agrees to, based on
TLC Hong Kong’s reasonable request, deliver, transfer or sell to TLC Hong Kong the production equipment, facility construction and other production related supports, (including but not limited to related raw materials, machines, equipment,
systems and/or computer software) at reasonable price and within reasonable timeframe, or charge other fees related to the production. In principle, in providing assistance under this Section, TLC will *** and TLC will ***. 

 

	 	4.5	 Product Warranties. TLC hereby represents and warrants that all TLC Products delivered under this
Agreement by TLC Group shall (i) comply with all applicable specifications (to be mutually agreed upon before TLC Products delivery); (ii) be manufactured, packaged, labeled and delivered in compliance with all Applicable Law in the China
Territory; (iii) not be misbranded or adulterated and (iv) not infringe any Third Party’s intellectual property right. Each delivery of TLC Products shall be accompanied by a certificate of release, in a form mutually
agreed by the Parties, 

  

	 	4.6	 Recalls or Corrective Actions. TLC Hong Kong shall fully cooperate with TLC in TLC’s decisions or
upon related government authority’s request, to recall, retrieve and/or replace its TLC Products. 

  

	 	4.7	 Indemnity. TLC agrees to indemnify TLC Hong Kong against any actual damages, costs, expenses and losses
incurred by TLC Hong Kong arising from a Third Party’s claim alleging the infringement of intellectual property by the TLC Products, recalls or corrective actions resulted from the TLC Products manufactured pursuant to TLC’s requirements
or TLC Products supplied or manufactured by TLC or TLC’s breach of the terms and conditions of this Agreement, to the extent that they are reasonably foreseeable. TLC Hong Kong will indemnify TLC against any actual and foreseeable damages,
costs, expenses and losses incurred by TLC arising from TLC Hong Kong’s breach of this Agreement, to the extent that they are reasonably foreseeable. Any breach of the terms and conditions of this Agreement by TLC Hong Kong’s subsidiaries
or its sublicensees shall be imputed to TLC Hong Kong. 

  
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	 	4.8	 Exchange. Both Parties agree to promptly exchange all relevant information that relates to the safety
of the TLC Products, including, without limitation, any threatened or pending action by any governmental authority and especially all adverse TLC Products reactions, and cooperatively co-work to perform
Pharmacovigilance in compliance with regulations. 

  

	5.	 TRADEMARK USE 

TLCHK may select at its discretion the product names for the TLC Products (not being any of the trademarks owned by TLC) it
plans to Commercialize in the China Territory and register such product names as owner in the China Territory at its cost. 
  

	6.	 NO COMPETITION 

As additional consideration for the rights granted hereunder, during the Term of this Agreement and for a period of *** after
the termination hereof, TLC Hong Kong agrees not to manufacture, market, sell or distribute any products that are in the same active pharmaceutical ingredient (API) form as identified and registered in the China Territory of the TLC Products. 

 

	7.	 TERM & TERMINATION 

 

	 	7.1	 Term. This Agreement shall take effect on the completion of the Closing as set forth in the Strategic
Alliance Agreement (the “Effective Date”) and continue to be effective for twenty (20) years commencing from the Effective Date (the “Term”). Unless it has been terminated earlier by the
Parties’ mutual agreement or in accordance with this Agreement, the Agreement shall be automatically renewed for ten (10) years upon its expiration. 

 

	 	7.2	 Termination by Either Party. Either Party may terminate this Agreement earlier by written notice with
immediate effect, if the other Party is in material breach of, or fails to perform its material obligations under this Agreement and fails to remedy such breach within *** days of receiving written notice of such breach from the non-breaching Party. 

  

	 	7.3	 Automatic Termination. This Agreement shall terminate automatically when upon satisfaction of the
conditions in Section 6.1 or Section 6.2 of the Shareholders Agreement, as the case may be, TLC is unable to enjoy corresponding rights as set forth in Section 6.1 or Section 6.2 of the Shareholders’ Agreement (i.e.,
TLC’s shareholding in TLC Hong Kong drops under *** or TLC fails to receive the TLC Preference Payment from the proceeds of sale under Section 6.2 of the Shareholders’ Agreement). 

 

	8.	 ACTIONS AFTER TERMINATION OR EXPIRATION 

 

	 	8.1	 Obligations of TLC Hong Kong. Upon termination or expiration of this Agreement, TLC Hong Kong shall:

  

	 	(i)	 Based on the permission or regulation under applicable laws, transfer, assign, and deliver or cause to be
transferred, assigned, and delivered to TLC (or another entity designated by TLC) the Market Approvals and all the associated clinical or non-clinical data within *** after the expiration or termination of
this Agreement; and 

  
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	 	(ii)	 discontinue the use of and destroy or return, as directed by TLC, any samples and materials as well as
advertising of TLC Products. 

 Provided that within *** after the expiration or termination of this
Agreement or during the remaining shelf life, whichever is shorter, TLC Hong Kong shall have the right to market, sell or distribute finished goods of TLC Products. 
  

	 	8.2	 Survival. In the event of the termination or expiration of this Agreement, all rights and obligations
of the Parties under this Agreement shall terminate. Sections 4.5, 4.6, 4.7, 4.8, 8, 10, 11, and 12 and any other obligation that by express term or its nature is intended to be performed after
the expiration or termination of this Agreement shall survive the termination of expiration of the Agreement. 

  

	9.	 INSURANCE 

Each Party shall maintain in full force and effect during the Term of this Agreement insurance required by law in the country
where work is performed. To the extent requested by the other Party, each Party shall provide the other with an original certificate of insurance evidencing that all such insurance coverages are in effect. 

 

	10.	 CONFIDENTIALITY 

The terms and conditions of this Agreement, any information disclosed or to be disclosed by a Party to the other Party in
connection with this Agreement or any of the transactions contemplated hereby shall be kept confidential by the receiving Party and shall not be used otherwise than in connection with the transactions contemplated by this Agreement, except to the
extent: 
  

	 	(a)	 such information was lawfully in the possession of the receiving Party when received by the receiving Party;

  

	 	(b)	 such information is lawfully obtained by the receiving Party from a third party source without any duty as to
confidentiality or non-use; 

  

	 	(c)	 such information is generally available to the public when received by the receiving Party or thereafter
becomes generally available to the public through no fault of the receiving Party; 

  

	 	(d)	 such obligations of confidentiality and non-use are waived by the
disclosing Party; or 

  

	 	(e)	 such information is required to be disclosed by court order or any governmental authority or by any applicable
law, regulations or requirements of a securities exchange and the receiving Party has promptly notified the disclosing Party, giving it the opportunity to seek an appropriate court order or other relief to limit disclosure. 

For the avoidance of doubt, at the request of the US Securities and Exchange Commission and to the extent of the required
disclosure, TLC may disclose to the US Securities and Exchange Commission the terms and conditions of this Agreement and publish a copy of the same. 
  

	11.	 GOVERNING LAW AND DISPUTE RESOLUTION 

 

	 	11.1	 This Agreement, all documents referred to in it which are not expressed to be governed by another law, and all
non-contractual obligations arising in any way 

  
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whatsoever out of or in connection with this Agreement or any such documents are governed by the laws of ***. 

 

	 	11.2	 The Parties shall attempt to resolve amicably through consultation any dispute, controversy, difference or
claim arising in any way whatsoever out of or in connection with this Agreement (including, without limitation, claims for set off or counterclaim), the legal relationship established by this Agreement, including any question regarding its
existence, interpretation, breach, termination or validity, or any dispute regarding non-contractual obligations arising out of or relating to this Agreement (a “Dispute”). Such
consultation shall begin immediately after one party has delivered to the other party a written request for such consultation in respect of the Dispute. If within *** from the date of such written notice (or such longer period as agreed in writing
by the parties) any Dispute is not resolved, the Dispute shall be submitted to arbitration in accordance with the following provisions. The Dispute shall be referred to and finally resolved by arbitration in *** administered by the *** under the ***
(the “Rules”) in force when the Notice of Arbitration is submitted in accordance with the Rules. The Rules are deemed to be incorporated by reference into this clause and are subject to the rest of this clause. The seat of
arbitration shall be ***. There shall be three (3) arbitrators. The arbitration proceedings shall be conducted in English. The arbitrator shall be qualified ***. The law of this arbitration clause shall be *** law. 

 

	12.	 MISCELLANEOUS 

 

	 	12.1	 No waiver. Failure by one Party to insist on the strict performance of any of the terms and conditions
hereunder or the delay by one Party to exercise any of its remedies shall not constitute a waiver of such terms and conditions or a waiver of any default or remedy. 

 

	 	12.2	 Severability. If any provision of this Agreement is invalid, illegal, or incapable of being enforced by
any rule of law or public policy, all other provisions of this Agreement shall nonetheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner
adverse to any Party. Upon such determination that any provision is invalid, illegal, or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as
possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled. 

  

	 	12.3	 Entire Agreement. This Agreement constitutes the entire agreement between the Parties relating to the
subject matter of this Agreement and supersedes all previous agreements, promises, communication whether in writing or verbally. 

  

	 	12.4	 Variation & Amendment. No amendment or variation of this Agreement shall be valid unless it is
in writing and signed by or on behalf of each Party by its duly authorized representatives. 

  

	 	12.5	 Notices. Any notice or communication given in relation to this Agreement shall be made in writing and
delivered by mail, facsimile or in person to the addresses and facsimile numbers set out in the beginning of this Agreement or at such other address or number as the relevant Party may designate in writing. 

 

	 	12.6	 Exhibits & Annexes. All exhibits or annexes named in and attached to this Agreement shall be
an integral part of this Agreement. 

  
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	 	12.7	 Force majeure. No Party shall be liable for the failure to carry out its obligations hereunder in the
event that it is prevented from doing so by an event of force majeure being an event which is, or the consequences of which are, beyond the reasonable control of the Parties including strikes, riots, fires, typhoon, labor disturbances, insurrection,
war, terrorism, acts of civil or military authorities, failures of carriers, acts of God or public enemy. In the event of force majeure, the obligations under this Agreement of the Party affected by the force majeure shall be suspended for as long
as the force majeure continues and to the extent which the force majeure affects the Party’s obligations. 

  

	 	12.8	 Assignment. Neither Party shall assign any of its rights and obligations in part or in entirety under
this Agreement without the written consent of the other Party, unless otherwise permitted by this Agreement. 

  

	 	12.9	 Press Release. Each Party may issue a press release about the general terms of this Agreement with
prior written approval from the other Party, which consent shall not be unreasonably withheld. Otherwise, neither TLC Hong Kong nor TLC will make any public disclosure of information concerning financial or other confidential terms of this Agreement
without the approval of the other Party, except that each Party may make such disclosures as may be required by Applicable Laws, including applicable securities laws. 

 

	 	12.10	 Counterparts. This Agreement may be executed in one (1) or more counterparts, including by
facsimile, .pdf, or other electronic copy, each of which shall be an original but all of which shall together constitute one and the same instrument. 

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 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly
authorized representatives on the date first above written. 
 For and on behalf of 

 

			
	 TLC Biopharmaceuticals (H.K.) Limited

		
	By:	 	  

	Name:	 	Director
	Title:	 	***

  
 SIGNATURE PAGE TO
COMMERCIALIZATION AGREEMENT 
  

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

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly
authorized representatives on the date first above written. 
 For and on behalf of 

 

			
	 Taiwan Liposome Company, Ltd.

		
	By:	 	  

	Name:	 	***
	Title:	 	***

  
 SIGNATURE PAGE TO
COMMERCIALIZATION AGREEMENT 
  

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

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