Document:

EX-10.2

 Exhibit 10.2 

SIENNA BIOPHARMACEUTICALS, INC. 

EMPLOYMENT AGREEMENT 

This Employment Agreement (the “Agreement”), is made by and between Sienna Biopharmaceuticals, Inc., a Delaware corporation
(the “Company”) and John Smither (“Executive” and, together with the Company, the “Parties”), effective as of April 16, 2018 (the “Effective Date”). 

WHEREAS, the Company desires to assure itself of the services of Executive by engaging Executive to perform services as an
employee of the Company under the terms hereof; and 
 WHEREAS, Executive desires to provide services to the Company on the terms
herein provided. 
 NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, including the
respective covenants and agreements set forth below, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 

1.    Employment. 

(a)    General. The Company shall employ Executive upon the terms and conditions provided herein effective as
of the Effective Date. 
 (b)    Position and Duties. Effective on the Effective Date, Executive:
(i) shall serve as the Company’s Chief Financial Officer, with responsibilities, duties, and authority usual and customary for such position, subject to direction by the Chief Executive Officer of the Company (the “CEO”);
(ii) shall report directly to the CEO; and (iii) agrees promptly and faithfully to comply with all present and future policies, requirements, rules and regulations, and reasonable directions and requests, of the Company in connection with the
Company’s business. At the Company’s request, Executive shall serve the Company and/or its subsidiaries and affiliates in such other capacities in addition to the foregoing as the Company shall designate, provided that such additional
capacities are consistent with Executive’s position as the Company’s Chief Financial Officer. In the event that Executive serves in any one or more of such additional capacities, Executive’s compensation shall not automatically be
increased on account of such additional service. 
 (c)    Performance of Executive’s Duties. During
Executive’s employment with the Company, and except for periods of illness, vacation, disability, or reasonable leaves of absence or as discussed in Section 1(d) below, Executive shall devote Executive’s full time and attention to the
business and affairs of the Company pursuant to the general direction of the CEO. The rights of Executive under this Agreement shall not be affected by any change in the title, duties, or capacity of Executive during Executive’s employment with
the Company. 
 (d)    Exclusivity. Except with the prior written approval of the CEO (which the CEO may
grant or withhold in his or her sole and absolute discretion), Executive shall devote substantially all of Executive’s working time, attention, and energies to the business of the Company, except during any paid vacation or other excused
absence periods. Nothing in this 

  
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section prevents Executive from (i) engaging in additional activities in connection with personal investments and community affairs including service on
non-profit boards of directors, (ii) serving as a member of the board of directors of up to two (2) for-profit organizations that are not competitors of the
Company (or such greater number as approved by the CEO), and (iii) serving as an advisor, or as a member of an advisory board, to up to two (2) organizations that are not competitors of the Company (or such greater number as approved by
the CEO); provided such activities do not individually or in the aggregate interfere with the performance of Executive’s duties under this Agreement, violate the Company’s standards of conduct then in effect, or raise a conflict under the
Company’s conflict of interest policies. 
 2.    Term. The period of Executive’s
employment under this Agreement shall commence on the Effective Date and shall continue until Executive’s employment with the Company is terminated pursuant to Section 5 below. The phrase “Term of Employment” as used in
this Agreement shall refer to the entire period of employment of Executive by the Company. 

3.    Compensation and Related Matters. 

(a)    Annual Base Salary. Executive shall receive a base salary at the rate of $360,000 per annum (as
may be increased from time to time, the “Annual Base Salary”), subject to withholdings and deductions, which shall be paid to Executive in accordance with the customary payroll practices and procedures of the Company. Such Annual
Base Salary shall be reviewed by the CEO, and as applicable, the Board of Directors of the Company (the “Board”), not less than annually, and may be increased, but not decreased, in connection with any such review. 

(b)    Annual Bonus. Executive shall be eligible to receive a discretionary annual bonus based on
Executive’s achievement of performance objectives as mutually agreed between Executive and the CEO, such bonus to be targeted at thirty-five percent (35%) of Executive’s Annual Base Salary (the “Annual Bonus”). Any Annual
Bonus earned will be paid at the same time annual bonuses are paid to other executives of the Company generally, subject to Executive’s continuous employment through the date of payment. 

(c)    Benefits. Executive shall be entitled to participate in such employee and executive benefit plans and
programs as the Company may from time to time offer to provide to its executives, subject to the terms and conditions of such plans. Notwithstanding the foregoing, nothing herein is intended, or shall be construed, to require the Company to
institute or continue any, or any particular, plan, or benefits. 
 (d)    Business Expenses. The Company
shall reimburse Executive for all reasonable, documented, out-of-pocket travel and other business expenses incurred by Executive in the performance of Executive’s
duties to the Company in accordance with the Company’s applicable expense reimbursement policies and procedures as are in effect from time to time. 

(e)    Vacation. Executive will be entitled to not less than fifteen (15) business days of paid vacation
each calendar year, pro-rated for partial calendar years of service, which may be taken in accordance with the Company’s vacation policy. 

(f)    Equity Awards. Executive shall be eligible to receive grants of equity awards in the
Company’s sole discretion. 

  
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 (g)    Indemnification Agreement; Insurance. As an officer of
the Company, Executive shall be entitled to enter into the Company’s standard indemnification agreement. Executive will also be covered under a directors and officers liability insurance policy paid for by the Company for so long as Executive
serves as an officer of the Company. 
 4.    Acceleration of Equity Awards Upon a Change in
Control. Notwithstanding anything herein to the contrary, in the event of a Change in Control (as defined below), the vesting of Executive’s then outstanding options, restricted stock and other equity awards covering shares of the
Company’s common stock (collectively, “Equity Awards”) shall accelerate as of immediately prior to such Change in Control with respect to 50% of the unvested shares of Company common stock subject to such Equity Awards. The
remaining 50% of the unvested shares of Company common stock subject to Executive’s Equity Awards shall continue to vest at the same rate as immediately prior to the Change in Control, subject to Executive’s continued service to the
Company or its successor through the applicable vesting date. Any portion of Executive’s Equity Awards that remains unvested as of the first anniversary of the Change in Control shall thereupon vest in full, subject to Executive’s
continued service to the Company or its successor through such first anniversary. Notwithstanding the foregoing and for the avoidance of doubt, any shares subject to Equity Awards that do not accelerate immediately prior to the Change in Control in
accordance with the foregoing shall be subject to accelerated vesting in accordance with Section 6(c)(iii) below. 

5.    Termination.

(a)    At-Will Employment. The Company and Executive acknowledge that
Executive’s employment shall be at-will, as defined under applicable law. This means that it is not for any specified period of time and can be terminated by Executive or by the Company at any time, with
or without advance notice, and for any or no particular reason or cause. It also means that Executive’s job duties, title, and responsibility and reporting level, work schedule, compensation, and benefits, as well as the Company’s
personnel policies and procedures, may be changed with prospective effect, with or without notice, at any time in the sole discretion of the Company (subject to any ramification such changes may have under Section 6 of this Agreement). This “at-will” nature of Executive’s employment shall remain unchanged during Executive’s tenure as an employee and may not be changed, except in an express writing signed by Executive and the CEO. If
Executive’s employment terminates for any lawful reason, Executive shall not be entitled to any payments, benefits, damages, award, or compensation other than as provided in this Agreement. 

(b)    Notice of Termination. During the Term of Employment, any termination of Executive’s employment
by the Company or by Executive (other than by reason of death) shall be communicated by written notice (a “Notice of Termination”) from one Party hereto to the other Party hereto (i) indicating the specific termination
provision in this Agreement relied upon, if any, (ii) setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated, and
(iii) specifying the Date of Termination (as defined below). The failure by the Company to set forth in the Notice of Termination all of the facts and circumstances which contribute to a showing of Cause (as defined below) shall not waive any
right of the Company hereunder or preclude the Company from asserting such fact or circumstance in enforcing their rights hereunder. The failure by Executive to set forth in the Notice of Termination all of the facts and circumstances which
contribute to a showing of Good Reason (as defined below) shall not waive any right of Executive hereunder or preclude Executive from asserting such fact or circumstance in enforcing their rights hereunder. 

  
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 (c)    Termination Date. For purposes of this Agreement,
“Date of Termination” shall mean the date of the termination of Executive’s employment with the Company specified in a Notice of Termination. 

(d)    Deemed Resignation. Upon termination of Executive’s employment for any reason, Executive shall be
deemed to have resigned from all offices and board memberships, if any, then held with the Company or any of its affiliates, and, at the Company’s request, Executive shall execute such documents as are necessary or desirable to effectuate such
resignations. 
 6.    Consequences of Termination. 

(a)    Payments of Accrued Obligations upon all Terminations of Employment. Upon a termination of
Executive’s employment for any reason, Executive (or Executive’s estate or legal representative, as applicable) shall be entitled to receive, within thirty (30) days after Executive’s Date of Termination (or such earlier date as
may be required by applicable law): (i) any portion of Executive’s Annual Base Salary earned through Executive’s Date of Termination not theretofore paid, (ii) any expenses owed to Executive under Section 3(d) above,
(iii) any accrued but unused paid time-off owed to Executive, (iv) any Annual Bonus earned but unpaid as of the Date of Termination, and (v) any amount arising from Executive’s
participation in, or benefits under, any employee benefit plans, programs, or arrangements under Section 3(c) above, which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs, or
arrangements. Except as otherwise set forth in Sections 6(b) and 6(c) below, the payments and benefits described in this Section 6(a) shall be the only payments and benefits payable in the event of Executive’s termination of employment for
any reason. 
 (b)    Severance Payments upon Involuntary Termination Other Than During a Change in Control
Period. If, during the Term of Employment but outside of a Change in Control Period (as defined below), Executive’s employment is terminated due to an Involuntary Termination (as defined below), in addition to the payments and benefits
described in Section 6(a) above, the Company shall provide the following payments and benefits, subject to delivery to the Company by Executive (or Executive’s estate or representative in the case of death or Disability (as defined below))
of a waiver and release of claims agreement in a standard form approved by the Company that becomes effective and irrevocable in accordance with Section 11(d) hereof (a “Release”): 

(i)    Executive shall be entitled to receive an amount equal to six months of Executive’s then-existing base
salary in effect as of Executive’s termination date, less applicable withholdings, payable in a lump sum on the first regular payroll date following the date of Executive’s Release becomes effective and irrevocable or as otherwise provided
in Section 11(d) hereof. 

  
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 (ii)    During the period commencing on the Date of Termination and
ending on the six-month anniversary thereof or, if earlier, the date on which Executive becomes eligible for comparable replacement coverage under a subsequent employer’s group health plan, subject to
Executive’s valid election to continue healthcare coverage under Section 4980B of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations thereunder (“COBRA”), the Company shall, in
its sole discretion, either (A) continue to provide to Executive and Executive’s dependents, at the Company’s sole expense, or (B) reimburse Executive and Executive’s dependents for the cost of, in either case, coverage
under its group health plan (if any) at the same coverage levels in effect on the Date of Termination (“Benefits Coverage”); provided, however, that if (1) any plan pursuant to which such benefits are provided is not, or
ceases prior to the expiration of the continuation coverage period to be, exempt from the application of Section 409A under Treasury Regulation Section 1.409A-1(a)(5), (2) the Company is otherwise
unable to continue to cover Executive or Executive’s dependents under its group health plans, or (3) the Company cannot provide the benefit without violating applicable law (including, without limitation, Section 2716 of the Public
Health Service Act), then, in any such case, the cash amount necessary to maintain the Benefits Coverage shall thereafter be paid to Executive in substantially equal monthly installments over the COBRA continuation period (or remaining portion
thereof). 
 (c)    Severance Payments upon Involuntary Termination During a Change in Control Period. If,
during the Term of Employment and during a Change in Control Period, Executive’s employment is terminated due to an Involuntary Termination, in addition to the payments and benefits described in Section 6(a) above, the Company shall
provide the following payments and benefits, subject to delivery by Executive (or Executive’s estate or representative in the case of death or Disability) to the Company of a Release that becomes effective and irrevocable in accordance with
Section 11(d) hereof: 
 (i)    The Company shall pay to Executive an amount equal to (i) twelve months
of Executive’s Annual Base Salary plus (ii) Executive’s target Annual Bonus plus (iii) Executive’s target Annual Bonus, pro-rated based on the total number of days elapsed in the
calendar year as of Executive’s Date of Termination. Such amount will be subject to applicable withholdings and payable in a single lump sum cash payment on the first regular payroll date following the date the Release becomes effective and
irrevocable or as otherwise provided in Section 11(d) hereof. 
 (ii)    During the period commencing on the
Date of Termination and ending on the first anniversary thereof or, if earlier, the date on which Executive becomes eligible for comparable replacement coverage under a subsequent employer’s group health plan, subject to Executive’s valid
election to continue healthcare coverage under COBRA, the Company shall, in its sole discretion, either (A) continue to provide to Executive and Executive’s dependents, at the Company’s sole expense, or (B) reimburse Executive
and Executive’s dependents for the cost of, in either case, the Benefits Coverage; provided, however, that if (1) any plan pursuant to which such benefits are provided is not, or ceases prior to the expiration of the continuation
coverage period to be, exempt from the application of Section 409A under Treasury Regulation Section 1.409A-1(a)(5), (2) the Company is otherwise unable to continue to cover Executive or
Executive’s dependents under its group health plans, or (3) the Company cannot provide the benefit without violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), then, in any such
case, the cash amount necessary to maintain the Benefits Coverage shall thereafter be paid to Executive in substantially equal monthly installments over the COBRA continuation period (or remaining portion thereof). 

  
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 (iii)    Any unvested Equity Awards held by Executive as of the Date
of Termination, will become fully vested and, if applicable, exercisable, and all restrictions and rights of repurchase thereon shall lapse with respect to all of the shares of the Company’s common stock subject thereto. 

(d)    No Other Severance. The provisions of this Section 6 shall supersede in their entirety any
severance payment provisions in any severance plan, policy, program, or other arrangement maintained by the Company except for such additional benefits otherwise approved by the Board or Compensation Committee of the Board after the date hereof.

 (e)    No Requirement to Mitigate; Survival. Executive shall not be required to mitigate the amount of
any payment provided for under this Agreement by seeking other employment or in any other manner. Notwithstanding anything to the contrary in this Agreement, the termination of Executive’s employment shall not impair the rights or obligations
of any Party. 
 (f)    Definition of Cause. For purposes hereof, “Cause” shall mean any
one of the following: (i) Executive’s willful or reckless violation of any applicable material law or regulation respecting the business of the Company; (ii) Executive’s conviction of, or plea of nolo contendere to, a non-vehicular felony or other crime involving moral turpitude; (iii) any act of dishonesty, fraud, or misrepresentation in relation to Executive’s duties to the Company which act is materially and
demonstrably injurious to the Company; (iv) Executive’s willful and repeated failure to perform in any material respect Executive’s duties; (v) Executive’s failure to attempt in good faith to implement a clear and reasonable
directive from the CEO or to comply with any of the Company’s policies and procedures which failure is either material or occurs after written notice from the Board; (vi) any act of gross misconduct which is materially and demonstrably
injurious to the Company; or (vii) Executive’s breach of fiduciary duty owed to the Company; provided that in the cases of (iv)-(vii), Executive is given written notice within fifteen (15) days’ notice of the occurrence and an
opportunity to cure any such failure that is subject to cure, including a reasonable opportunity to present to the Board Executive’s position regarding any dispute relating to the existence of such failure (other than on account of disability).

 (g)    Definition of Change in Control. For purposes hereof, “Change in Control” shall
mean and includes each of the following: 
 (i)    A transaction or series of
transactions (other than an offering of Company common stock to the general public through a registration statement filed with the Securities and Exchange Commission) whereby any “person” or related “group” of “persons”
(as such terms are used in Sections 13(d) and 14(d)(2) of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”)) directly or indirectly acquires beneficial ownership (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act) of securities of the Company possessing more than 50 % of the total combined
voting power of the Company’s securities outstanding immediately after such acquisition; provided, however, that the following acquisitions shall not constitute a Change in Control: (x) any acquisition by the Company or any
of its subsidiaries; (y) any acquisition by an employee benefit plan maintained by the Company or any of its subsidiaries, or (z) any acquisition which complies with Sections 6(g)(iii)(A)-(C); or 

  
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 (ii)    The Incumbent Directors cease for any reason
to constitute a majority of the Board. For the purposes hereof, “Incumbent Directors” shall mean for any period of 12 consecutive months, individuals who, at the beginning of such period, constitute the Board together with any new
director(s) (other than a director designated by a person who shall have entered into an agreement with the Company to effect a transaction described in Section 6(g)(i) or 6(g)(iii) whose election or nomination for election to the Board was
approved by a vote of at least a majority (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director without objection to such nomination) of the directors then still in
office who either were directors at the beginning of the 12-month period or whose election or nomination for election was previously so approved. No individual initially elected or nominated as a director of
the Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board shall be an Incumbent Director;

 (iii)    The consummation by the Company (whether directly involving the Company or indirectly
involving the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination, (y) a sale or other disposition of all or substantially all of the Company’s assets in any single
transaction or series of related transactions or (z) the acquisition of assets or stock of another entity, in each case other than a transaction: (A) which results in the Company’s voting securities outstanding immediately before the
transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or
indirectly, all or substantially all of the Company’s assets or otherwise succeeds to the business of the Company (the Company or such person, the “Successor Entity”)) directly or indirectly, at least a majority of the combined
voting power of the Successor Entity’s outstanding voting securities immediately after the transaction, and (B) after which no person or group beneficially owns voting securities representing 50% or more of the combined voting power of the
Successor Entity; provided, however, that no person or group shall be treated for purposes of this clause (B) as beneficially owning 50% or more of the combined voting power of the Successor Entity solely as a result of the
voting power held in the Company prior to the consummation of the transaction; and (C) after which at least a majority of the members of the board of directors (or the analogous governing body) of the Successor Entity were Board members at the
time of the Board’s approval of the execution of the initial agreement providing for such transaction; or 

(h)    The date which is 10 business days prior to the completion of a liquidation or dissolution of the Company.

 Notwithstanding the foregoing, a “Change in Control” must also constitute a “change in control event” as defined in Treasury
Regulation §1.409A-3(i)(5). 

  
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 (i)    Definition of Change in Control Period. For purposes
hereof, “Change in Control Period” shall mean the period commencing three months prior to a Change in Control and ending on the eighteen (18)-month anniversary of the Change in Control. 

(j)    Definition of Good Reason. For purposes hereof, “Good Reason” shall mean any one of
the following: (i) the material reduction of Executive’s base compensation or bonus target, (ii) the material reduction of Executive’s duties and responsibilities as set forth herein (including material reduction in status,
material reduction in offices and/or a requirement to report to any person or entity other than the CEO of the Company, or following a Change in Control, the ultimate parent company of the surviving entity in such Change in Control that has at least
one class of publicly traded securities listed on a national stock exchange ) (iii) the Company’s material breach of this Agreement, or (iv) the relocation of Executive’s principal place of employment that increases Executive’s one-way commute by more than thirty-five (35) miles, provided, that, in each case, Executive will not be deemed to have Good Reason unless (i) Executive first provides the CEO with written notice of
the condition giving rise to Good Reason within thirty (30) days of its initial occurrence, (ii) the Company or the successor company fails to cure such condition within thirty (30) days after receiving such written notice (the
“Cure Period”), and (iii) Executive’s resignation based on such Good Reason is effective within thirty (30) days after the expiration of the Cure Period. 

(k)    Definition of Involuntary Termination. For purposes hereof, “Involuntary Termination” shall
mean Executive’s termination (A) by the Company without Cause, (B) by Executive for Good Reason, (C) due to death or (D) due to permanent and total disability within the meaning of Section 22(e) of the Code (a
“Disability”). 
 7.    Assignment and Successors. The Company shall assign its
rights and obligations under this Agreement to any successor to all or substantially all of the business or the assets of the Company (by merger or otherwise). This Agreement shall be binding upon and inure to the benefit of the Company, Executive,
and their respective successors, assigns, personnel, and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as applicable. None of Executive’s rights or obligations may be assigned or transferred by
Executive, other than Executive’s rights to payments hereunder, which may be transferred only by will, operation of law, or as otherwise provided herein. 

8.    Miscellaneous Provisions. 

(a)    Confidentiality Agreement. Executive agrees to execute the Company’s standard form proprietary
information and inventions assignment agreement, effective as of the Effective Date. 
 (b)    Non-Solicitation of Employees. For a period of one (1) year following Executive’s Date of Termination, Executive shall not, either directly or indirectly (i) solicit for employment by any
individual, corporation, firm, or other business, any employees, consultants, independent contractors, or other service providers of the Company or any of its affiliates, or (ii) solicit any employee or consultant of the Company or any of its
affiliates to leave the employment or consulting of or cease providing services to the Company or any of its affiliates; provided, however, that the foregoing clauses (i) and (ii) shall not apply to inbound inquiries or any
general 

  
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advertisement or solicitation (or any hiring pursuant to such advertisement or solicitation) that is not specifically targeted to such employees or consultants. Notwithstanding the foregoing, the
preceding sentence shall not apply in the event Executive experiences an Involuntary Termination during or after a Change in Control Period. 

(c)    Governing Law. This Agreement shall be governed, construed, interpreted, and enforced in accordance
with its express terms, and otherwise in accordance with the substantive laws of the State of California, without giving effect to any principles of conflicts of law, whether of the State of California or any other jurisdiction, and where
applicable, the laws of the United States, that would result in the application of the laws of any other jurisdiction. 

(d)    Validity. The invalidity or unenforceability of any provision or provisions of this Agreement shall
not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 

(e)    Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to
be an original, but all of which together will constitute one and the same Agreement. Signatures delivered by facsimile shall be deemed effective for all purposes. 

(f)    Entire Agreement. The terms of this Agreement are intended by the Parties to be the final expression
of their agreement with respect to the employment of Executive by the Company and supersede all prior understandings and agreements, whether written or oral, regarding Executive’s service to the Company. The Parties further intend that this
Agreement shall constitute the complete and exclusive statement of their terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement. 

(g)    Amendments; Waivers. This Agreement may not be modified, amended, or terminated except by an
instrument in writing signed by Executive and a duly authorized representative of the Company. By an instrument in writing similarly executed, Executive or a duly authorized officer of the Company, as applicable, may waive compliance by the other
Party with any specifically identified provision of this Agreement that such other Party was or is obligated to comply with or perform; provided, however, that such waiver shall not operate as a waiver of, or estoppel with respect to,
any other or subsequent failure. No failure to exercise and no delay in exercising any right, remedy, or power hereunder shall preclude any other or further exercise of any other right, remedy, or power provided herein or by law or in equity. 

(h)    Dispute Resolution. Executive agrees that if any disputes should arise between Executive and the
Company (including claims against its employees, officers, directors, shareholders, agents, successors, and assigns) relating or pertaining to or arising out of Executive’s employment with the Company, the dispute will be submitted exclusively
to binding arbitration before a neutral arbitrator mutually selected by the Company and Executive. This means that disputes will be decided by an arbitrator rather than a court or jury, and that both Executive and the Company waive their
respective rights to a court or jury trial. Judgment on the arbitration award may be entered in any court having jurisdiction. Nothing herein shall prevent either Party from pursuing injunctive relief in court (without having to post a bond) to
avoid irreparable harm pending completion of any arbitration. Within twenty (20) days of the conclusion of the arbitration 

  
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hearing, the arbitrator shall prepare written findings of fact and conclusions of law. Each party shall bear its own costs and attorneys’ fees in connection with arbitration; provided
that the Company shall pay all costs unique to arbitration, including the arbitrator’s fees and costs, that Executive would not be required to pay if the claim was in court. Executive shall be entitled to recover reasonable attorneys’ fees
and costs incurred by Executive in any arbitration Executive initiates to enforce Executive’s rights under this Agreement and in which Executive is deemed to be the prevailing party. 

(i)    Enforcement. If any provision of this Agreement is held to be illegal, invalid, or unenforceable under
present or future laws, such provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a portion of this Agreement; and the remaining provisions of
this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance from this Agreement. Furthermore, in lieu of such illegal, invalid, or unenforceable provision
there shall be added automatically as part of this Agreement a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and be legal, valid, and enforceable. 

(j)    Withholding. The Company shall be entitled to withhold from any amounts payable under this Agreement
any federal, state, local, or foreign withholding or other taxes or charges which the Company is required to withhold. The Company shall be entitled to rely on an opinion of counsel if any questions as to the amount or requirement of withholding
shall arise. 
 9.    Prior Employment. Executive represents and warrants that Executive’s
acceptance of employment with the Company has not breached, and the performance of Executive’s duties hereunder will not breach, any duty owed by Executive to any prior employer or other person. Executive further represents and warrants to the
Company that (a) the performance of Executive’s obligations hereunder will not violate any agreement between Executive and any other person, firm, organization, or other entity; (b) Executive is not bound by the terms of any agreement
with any previous employer or other party to refrain from competing, directly or indirectly, with the business of such previous employer or other party that would be violated by Executive entering into this Agreement and/or providing services to the
Company pursuant to the terms of this Agreement; and (c) Executive’s performance of Executive’s duties under this Agreement will not require Executive to, and Executive shall not, rely on in the performance of Executive’s duties
or disclose to the Company or any other person or entity or induce the Company in any way to use or rely on any trade secret or other confidential or proprietary information or material belonging to any previous employer of Executive. 

10.    Golden Parachute Excise Tax. 

(a)    Best Pay. Any provision of this Agreement to the contrary notwithstanding, if any payment or benefit
Executive would receive from the Company pursuant to this Agreement or otherwise (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code and (ii) but for this
sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment will be equal to the Reduced Amount (as defined below). The “Reduced Amount” will be either
(A) the largest portion of the Payment that would result in no portion of the Payment (after reduction) being subject to the Excise 

  
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Tax or (B) the entire Payment, whichever amount after taking into account all applicable federal, state, and local employment taxes, income taxes, and the Excise Tax (all computed at the
highest applicable marginal rate, net of the maximum reduction in federal income taxes which could be obtained from a deduction of such state and local taxes), results in Executive’ s receipt, on an
after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in a Payment is required pursuant to the preceding
sentence and the Reduced Amount is determined pursuant to clause (A) of the preceding sentence, the reduction shall occur in the manner (the “Reduction Method”) that results in the greatest economic benefit for Executive. If
more than one method of reduction will result in the same economic benefit, the items so reduced will be reduced pro rata (the “Pro Rata Reduction Method”). Notwithstanding the foregoing, if the Reduction Method or the Pro Rata
Reduction Method would result in any portion of the Payment being subject to taxes pursuant to Section 409A (as defined below) that would not otherwise be subject to taxes pursuant to Section 409A, then the Reduction Method and/or the Pro
Rata Reduction Method, as the case may be, shall be modified so as to avoid the imposition of taxes pursuant to Section 409A as follows: (1) as a first priority, the modification shall preserve to the greatest extent possible, the greatest
economic benefit for Executive as determined on an after-tax basis; (2) as a second priority, Payments that are contingent on future events (e.g., being terminated without cause), shall be reduced
(or eliminated) before Payments that are not contingent on future events; and (3) as a third priority, Payments that are “deferred compensation” within the meaning of Section 409A shall be reduced (or eliminated) before Payments
that are not deferred compensation within the meaning of Section 409A. 
 (b)    Accounting Firm. The
accounting firm engaged by the Company for general tax purposes as of the day prior to the Change of Control will perform the calculations set forth in Section 10(a) above. If the firm so engaged by the Company is serving as the accountant or
auditor for the acquiring company, the Company will appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company will bear all expenses with respect to the determinations by such firm required to be made
hereunder. The accounting firm engaged to make the determinations hereunder will provide its calculations, together with detailed supporting documentation, to the Company within thirty (30) days before the consummation of a Change of Control
(if requested at that time by the Company) or such other time as requested by the Company. If the accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it
will furnish the Company with documentation reasonably acceptable to the Company that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the accounting firm made hereunder will be final, binding and
conclusive upon the Company and Executive. 
 11.    Section 409A. 

(a)    General. The intent of the Parties is that the payments and benefits under this Agreement comply with
or be exempt from Section 409A of the Code and the Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Effective
Date, (“Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. If Executive notifies the Company that Executive has received advice of
tax counsel of a national reputation with expertise in Section 409A that any 

  
 11 

 
provision of this Agreement would cause Executive to incur any additional tax or interest under Section 409A (with specificity as to the reason therefor) or the Company independently makes
such determination, the Company and Executive shall take commercially reasonable efforts to reform such provision to try to comply with or be exempt from Section 409A through good faith modifications to the minimum extent reasonably appropriate
to conform with Section 409A, provided that any such modifications shall not increase the cost or liability to the Company. To the extent that any provision hereof is modified in order to comply with or be exempt from Section 409A,
such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to Executive and the Company of the applicable provision without violating the provisions of
Section 409A. 
 (b)    Separation from Service. Notwithstanding any provision to the contrary
in this Agreement: (i) no amount that constitutes “deferred compensation” under Section 409A shall be payable pursuant to Section 6(b) or Section 6(c) above unless the termination of Executive’s employment
constitutes a “separation from service” within the meaning of Section 1.409A-1(h) of the Department of Treasury Regulations (“Separation from Service”); (ii) for purposes of
Section 409A, Executive’s right to receive installment payments shall be treated as a right to receive a series of separate and distinct payments; and (iii) to the extent that any reimbursement of expenses or in-kind benefits constitutes “deferred compensation” under Section 409A, such reimbursement or benefit shall be provided no later than December
31st of the year following the year in which the expense was incurred. The amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year.
The amount of any in-kind benefits provided in one year shall not affect the amount of in-kind benefits provided in any other year. 

(c)    Specified Employee. Notwithstanding anything in this Agreement to the contrary, if Executive is deemed
by the Company at the time of Executive’s Separation from Service to be a “specified employee” for purposes of Section 409A, to the extent delayed commencement of any portion of the benefits to which Executive is entitled under
this Agreement is required in order to avoid a prohibited distribution under Section 409A, such portion of Executive’s benefits shall not be provided to Executive prior to the earlier of (i) the expiration of the six (6)-month period
measured from the date of Executive’s Separation from Service with the Company or (ii) the date of Executive’s death. Upon the first business day following the expiration of the applicable Section 409A period, all payments
deferred pursuant to the preceding sentence shall be paid in a lump sum to Executive (or Executive’s estate or beneficiaries), and any remaining payments due to Executive under this Agreement shall be paid as otherwise provided herein. 

(d)    Release. Notwithstanding anything to the contrary in this Agreement, to the extent that any payments
due under this Agreement as a result of Executive’s termination of employment are subject to Executive’s execution and delivery of a Release, (i) the Company shall deliver the Release to Executive within ten (10) business
days following Executive’s Date of Termination, and the Company’s failure to deliver a Release prior to the expiration of such ten (10) business day period shall constitute a waiver of any requirement to execute a Release,
(ii) if Executive fails to execute the Release on or prior to the Release Expiration Date (as defined below) or timely revokes Executive’s acceptance of the Release thereafter, Executive shall not be entitled to any payments or benefits
otherwise conditioned on the Release, and (iii) in any case where Executive’s Date of Termination and the Release Expiration Date fall in two separate taxable years, any payments required to be made to Executive that are conditioned on the
Release and are 

  
 12 

 
treated as nonqualified deferred compensation for purposes of Section 409A shall be made in the later taxable year. For purposes of this Section 11(d), “Release Expiration
Date” shall mean the date that is twenty-one (21) days following the date upon which the Company timely delivers the Release to Executive, or, in the event that Executive’s termination of
employment is “in connection with an exit incentive or other employment termination program” (as such phrase is defined in the Age Discrimination in Employment Act of 1967), the date that is forty-five (45) days following such
delivery date. To the extent that any payments of nonqualified deferred compensation (within the meaning of Section 409A) due under this Agreement as a result of Executive’s termination of employment are delayed pursuant to this
Section 11(d), such amounts shall be paid in a lump sum on the first payroll date following the date that Executive executes and does not revoke the Release (and the applicable revocation period has expired) or, in the case of any payments
subject to Section 11(d)(iii), on the first payroll period to occur in the subsequent taxable year, if later. 

12.    Employee Acknowledgement. Executive acknowledges that Executive has read and understands this
Agreement, is fully aware of its legal effect, has not acted in reliance upon any representations or promises made by the Company other than those contained in writing herein, and has entered into this Agreement freely based on Executive’s own
judgment. 
 [Signature Page Follows] 

  
 13 

 IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date and year first
above written.     
  

							
		 		 	SIENNA BIOPHARMACEUTICALS, INC.
				
	Date: 3/21/2018	 		 	By:	 	/s/ Frederick C. Beddingfield III
		 		 	Name: Frederick C. Beddingfield III, M.D., Ph.D.
		 		 	Title:   President and Chief Executive Officer
			
		 		 	EXECUTIVE
				
		 		 	By:	 	/s/ John W. Smither
		 		 	Name: John W. Smither
		 		 		 	
		 		 	Address:Exhibit 10.1

 

PROSPECTUS

 

Bitauto Holdings Limited 

 

The Amended and Restated 2016 Share Incentive
Plan

 

 

 

This document constitutes part of a prospectus
covering securities that have

been registered under the U.S. Securities
Act of 1933, as amended (the “Securities Act”).

 

 

 

The date of this Prospectus is May 11, 2018.

 

 

 

No person is authorized to give any information
or to make any representations other than those contained in this Prospectus in connection with the offering described herein,
and, if given or made, such information or representations must not be relied upon. This Prospectus does not constitute an offer
of any securities other than those to which it relates, or an offer to sell or a solicitation of an offer to buy any securities
in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction. Neither the delivery
of this Prospectus nor any sales made hereunder shall, under any circumstances, create any implication that there has been no change
in the affairs of Bitauto Holdings Limited since the date hereof.

 

    	 	1	 

     

    

 

General Information about the 

Bitauto Holdings Limited Amended and
Restated 2016 Share Incentive Plan

 

Who is the issuer of securities under the Amended 2016
Plan? 

 

Bitauto Holdings Limited (the “Company”), the principal
executive offices of which are located at New Century Hotel Office Tower, 6/F, No. 6 South Capital Stadium Road, Beijing, 100044,
The People’s Republic of China, is the issuer of the securities being offered under the Company’s Amended and Restated
2016 Share Incentive Plan (the “Amended 2016 Plan”), which are ordinary shares, par value US$0.00004 per share, of
the Company (the “Shares”).

 

When did the Amended 2016 Plan become effective?

 

The Amended 2016 Plan became effective on March 15, 2018 (the
“Effective Date”) and will generally continue in effect until the tenth (10th) anniversary of the Effective
Date.

 

What is the purpose of the Amended
2016 Plan?

 

The purpose of the Amended 2016 Plan is
to promote the success and enhance the value of the Company by linking the personal interests of the members of the board of directors,
employees and consultants to those of the Company’s shareholders and by providing such individuals with an incentive for
outstanding performance to generate superior returns to the Company’s shareholders. The Amended 2016 Plan is further intended
to provide flexibility to the Company in its ability to motivate, attract and retain the services of members of the board of directors,
employees, and consultants.

 

Who can participate in the Amended
2016 Plan?

 

We can grant awards to members of the board
of directors, employees and consultants of the Company, or any parent or Subsidiary (as defined in the Amended 2016 Plan) (collectively,
the “Participants”).

 

What types of awards may be granted
under the Amended 2016 Plan?

 

The Amended 2016 Plan permits grants of
options, restricted shares and restricted share units.

 

Who administers the Amended 2016
Plan?

 

The Amended 2016 Plan shall be administered
by the board or the compensation committee of the board (or a similar body) formed in accordance with applicable exchange rules,
and the term “Committee” shall refer to the board or the compensation committee, as applicable. Any grant or amendment
of awards to any Committee member shall require an affirmative vote of a majority of the board members who are not on the Committee
in accordance with the Company’s articles of association.

 

    	 	2	 

     

    

 

Subject to any specific designation in
the Amended 2016 Plan, the Committee has the exclusive power, authority and discretion to: designate Participants to receive awards;
determine the type or types of awards to be granted to each Participant; determine the number of awards to be granted and the number
of shares to which an award will relate; determine the terms and conditions of any award granted pursuant to the Amended 2016 Plan;
determine whether, to what extent, and pursuant to what circumstances an award may be settled in, or the exercise price of an award
may be paid in, cash, shares, other awards, or other property, or an award may be canceled, forfeited, or surrendered; prescribe
the form of each award agreement, which need not be identical for each Participant; decide all other matters that must be determined
in connection with an award; establish, adopt, or revise any rules and regulations as it may deem necessary or advisable to administer
the Amended 2016 Plan; interpret the terms of, and any matter arising pursuant to, the Amended 2016 Plan or any award agreement;
reduce to exercise price per Share underlying the option; and make all other decisions and determinations that may be required
pursuant to the Amended 2016 Plan or as the Committee deems necessary or advisable to administer the Amended 2016 Plan.

 

How many of our Shares are available
under the Amended 2016 Plan?

 

The maximum aggregate number of our Shares
which may be issued pursuant to all awards under the Amended 2016 Plan shall initially be 6,200,000 Shares To the extent that an
award terminates, expires, lapses, or is forfeited for any reason, any Shares subject to the award shall again be available for
the grant of an award pursuant to the Amended 2016 Plan.

 

In the event of any share dividend, share
split, combination or exchange of our Shares, amalgamation, arrangement or consolidation, spin-off, recapitalization or other distribution
(other than normal cash dividends) of Company assets to our shareholders, or any other change affecting our Shares or the price
of a Share, the Committee shall make such proportionate adjustments, if any, as the Committee may deem appropriate, to reflect
such change with respect to (a) the aggregate number and type of shares that may be issued under the Amended 2016 Plan; (b) the
terms and conditions of any outstanding awards (including, without limitation, any applicable performance targets or criteria with
respect thereto); and (c) the grant or exercise price per share for any outstanding awards under the Amended 2016 Plan.

 

Can we change or terminate the Amended
2016 Plan?

 

The Amended 2016 Plan will expire on, and
no award may be granted pursuant to the Amended 2016 Plan after, the tenth (10th) anniversary of the Effective Date.
Any awards that are outstanding on the tenth (10th) anniversary of the Effective Date shall remain in force according
to the terms of the Amended 2016 Plan and the applicable award agreement.

 

With the approval of the board of directors,
at any time and from time to time, the Committee may terminate, amend or modify the Amended 2016 Plan. However, shareholder approval
is required for any such amendment (i) to the extent such approval is necessary and desirable to comply with applicable laws or
stock exchange rules, or (ii) if such amendment is to increase the number of Shares available under the Amended 2016 Plan, or to
permit the Committee to extend the term of the Amended 2016 Plan or the exercise period for an option beyond ten (10) years from
the date of grant, unless the Company decides to follow home country practice. No termination, amendment or modification of the
Amended 2016 Plan shall adversely affect in any material way any award previously granted pursuant to the Amended 2016 Plan without
the prior written consent of the Participant, except for supplements, amendments or appendices to the Amended 2016 Plan approved
by the Committee as it may consider necessary or appropriate for purposes of compliance with applicable laws or otherwise.

 

    	 	3	 

     

    

 

If I receive an award, does this
affect my employment or service with the Company?

 

Receiving an award does not change the
terms and conditions of your employment or service. We still have the right to terminate your employment or service at any time,
with or without cause, subject to local laws. Receiving an award also does not entitle you to any other award, compensation or
severance.

 

How do I pay applicable taxes I incur with respect to
my awards?

 

No Shares shall be delivered under the Amended 2016 Plan to
any Participant until such Participant has made arrangements acceptable to the Committee for the satisfaction of any income and
employment tax withholding obligations under applicable laws. The Company or any Subsidiary shall have the authority and the right
to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy all applicable taxes (including
the Participant’s payroll tax obligations) required or permitted by applicable laws to be withheld with respect to any taxable
event concerning a Participant arising as a result of the Amended 2016 Plan. The Committee may in its discretion and in satisfaction
of the foregoing requirement allow a Participant to elect to have the Company withhold Shares otherwise issuable under an award
(or allow the return of Shares) having a fair market value, as determined in a manner stipulated in the Amended 2016 Plan, equal
to the sums required to be withheld.

 

Are awards under the Amended 2016 Plan funded?

 

The Amended 2016 Plan is intended to be an “unfunded”
plan for incentive compensation. With respect to any payments not yet made to a Participant pursuant to an award, nothing contained
in the Amended 2016 Plan or any award agreement shall give the Participant any rights that are greater than those of a general
creditor of the Company or any Subsidiary.

 

What is the governing law of the Amended 2016 Plan and
award agreements?

 

The Amended 2016 Plan and all award agreements
shall be construed in accordance with and governed by the laws of the Cayman Islands.

 

Is the Amended 2016 Plan subject to ERISA or qualified
under Section 401 of the Code?

 

No, the Amended 2016 Plan is not subject
to the Employee Retirement Income Security Act of 1974 and is not qualified under Section 401 of the U.S. Internal Revenue Code
of 1986, as amended (the “Code”). The Shares to be offered under the Amended 2016 Plan are to be issued by the Issuer
upon the vesting of the awards or other terms and conditions of the awards being met and not to be purchased in the open market.

 

Options

 

What is an option and how do I benefit
from it?

 

An option gives you the right to buy a
specified number of our Shares at a specified price – the exercise price – during specified time periods. If the value
of the Shares increases over the exercise price during the time periods, you can, in effect, buy the Shares at a “discount.”
If the value does not increase, you get no benefit from your option. Whatever the result, your option gives you an interest in
the value of our Shares without risking any of your money.

 

    	 	4	 

     

    

 

Are there different types of options?

 

We may grant either incentive share options
(“ISOs”, which get favorable U.S. federal tax treatment) or non-qualified share options (“NQSOs”, namely,
options that are not incentive share options).

 

What are the terms of my option?

 

The Committee determines the terms of your
grant. When we grant you an option, we give you a written option agreement that tells you the number of Shares covered by the option,
the exercise price, the expiration date, any conditions to exercise and any other terms or conditions that apply.

 

How does the Committee determine
the exercise price of my option?

 

The exercise price may be a fixed or variable
price, in each case related to the fair market value of the Shares. The exercise price of an ISO shall equal to the fair market
value on the date of grant. However, the exercise price of any ISO granted to any individual who, on the date of grant, owns Shares
possessing more than ten percent (10%) of the total combined voting power of all classes of shares of the Company, may not be less
than 110% of fair market value on the date of grant and such option may not be exercisable for more than five years from the date
of grant. “Fair market value” means the closing sales price for such Shares (or
the closing bid, if no sales were reported) as quoted on the New York Stock Exchange on the date of determination (or, if no closing
sales price or closing bid was reported on that date, as applicable, on the last trading date such closing sales price or closing
bid was reported), as reported in The Wall Street Journal or such other source as the Committee deems reliable.

 

When can I exercise my option?

 

The Committee decides when you can exercise
your option. The Committee also determines any conditions to your exercise. Your option agreement includes this information. The
Committee has the discretionary authority to accelerate your option’s exercisability after grant.

 

How do I exercise my option?

 

You exercise your option by sending a notice
of exercise to the Company. You also must pay the exercise price in full, generally in cash. The Committee may permit you to pay
the exercise price with the Shares you already own or by other means. The administrator will have procedures for you to follow.

 

When does my option expire?

 

An
option expires at the earliest of (i) ten (10) years from the date it is granted, unless an earlier time is set in the relevant
award agreement; (ii) ninety (90) days after the Participant’s termination of employment or service for any reason to the
extent that such option were vested and exercisable on the date of the termination, other than a termination by the Service Recipient
for Cause (as defined in the Amended 2016 Plan) or because of the Participant’s death or Disability (as defined in the Amended
2016 Plan); or (iii) twelve (12) months after the Participant’s termination of employment or service as a result of the Participant’s
death or Disability to the extent such option were vested and exerciable on the date of the termination. You can no longer exercise
your option after its expiration date. 

 

    	 	5	 

     

    

 

Restricted Shares

 

What are restricted shares?

 

We may grant or sell to you shares that
are subject to restrictions on transferability and other restrictions as the Committee may impose, and we may forfeit or repurchase
such shares upon your termination of employment or service during the applicable restriction period, except as otherwise determined
by the Committee at the time of the grant of the award or thereafter.

 

How do restricted shares work?

 

We issue restricted shares in your name
when we grant or sell them to you, but will usually hold them in escrow until the restrictions lapse or are removed. The Committee
may set whatever restrictions it thinks are appropriate. For example, the Committee may impose restrictions on the right to vote
restricted shares, or the right to receive dividends on the restricted shares. If we grant or sell you restricted shares, we will
enter into a written award agreement with you that specifies the period of restriction, the number of restricted shares granted
or sold, grant or purchase price, and such other terms and conditions as the Committee, in its sole discretion, shall determine.

 

We will release your shares to you as soon
as practicable after the last day of the period of restriction. The Committee, in its sole discretion, may accelerate the time
at which any restrictions shall lapse or be removed.

 

Can I vote my restricted shares?

 

Your right to vote restricted shares shall be subject to such
restrictions as the Committee may impose, which restrictions may lapse separately or in combination at such time or times, in such
installments or otherwise, as the Committee may deem appropriate.

 

Can I receive dividends with respect to my restricted
shares?

 

Your right to receive any dividend in respect of restricted
shares shall be subject to such restrictions as the Committee may impose, which restrictions may lapse separately or in combination
at such time or times, in such installments or otherwise, as the Committee may deem appropriate.

 

Restricted Share Units

 

What are restricted share units?

 

Restricted share units are awards that
are paid out if you meet the performance objectives or other vesting criteria that the Committee may set in its sole discretion.
We may forfeit or repurchase such restricted share units upon your termination of employment or service during the applicable restriction
period, except as otherwise determined by the Committee at the time of the grant of the award or thereafter.

 

    	 	6	 

     

    

 

At the time of grant, the Committee shall
specify the date or dates on which the restricted share units shall become fully vested and non-forfeitable. Upon vesting, the
Committee, in its sole discretion, may pay restricted share units in the form of cash, in Shares or in a combination thereof.

 

What are the other terms of restricted
share units?

 

If we grant you restricted share units,
we will enter into a written award agreement with you that specifies any vesting conditions, the number of restricted share units
granted, and such other terms and conditions as the Committee, in its sole discretion, shall determine.

 

Can I vote my restricted share units?

 

Your right to vote restricted share units shall be subject to
such restrictions as the Committee may impose, which restrictions may lapse separately or in combination at such time or times,
in such installments or otherwise, as the Committee may deem appropriate.

 

Can I receive dividends with respect to my restricted
share units?

 

Your right to receive any dividend in respect of restricted
share units shall be subject to such restrictions as the Committee may impose, which restrictions may lapse separately or in combination
at such time or times, in such installments or otherwise, as the Committee may deem appropriate.

 

Treatment of Awards upon a Corporate
Transaction

 

What happens to my awards if the Company undergoes a Corporate
Transaction?

 

Except as may otherwise be provided in any award agreement or
any other written agreement entered into by and between you and the Company, if the Committee anticipates the occurrence, or upon
the occurrence, of a Corporate Transaction (as defined below), the Committee may, in its sole discretion, provide for the following
measures: (i) any and all awards outstanding to terminate at a specific time in the future and shall give you the right to exercise
the vested portion of such awards during a period of time as the Committee shall determine, or (ii) the purchase of any award for
an amount of cash equal to the amount that you could have attained upon the exercise of such award, or (iii) the replacement of
such award with other rights or property selected by the Committee in its sole discretion or the assumption of or substitution
of such award by the successor or surviving corporation, or a parent or subsidiary of the successor or surviving corporation, with
appropriate adjustments as to the number and kind of Shares and prices, or (iv) payment of the award in cash based on the value
of Shares on the date of the Corporate Transaction plus reasonable interest on the award through the date when such award would
otherwise be vested or have been paid in accordance with its original terms, if necessary to comply with Section 409A of the Code.

 

    	 	7	 

     

    

 

What is a Corporate Transaction?

 

For purposes of the Amended 2016 Plan,
a Corporate Transaction means, in general:

 

		(a)	an amalgamation, arrangement or consolidation or scheme of arrangement (i) in which the Company is not the surviving entity,
except for a transaction the principal purpose of which is to change the jurisdiction in which the Company is incorporated or (ii)
following which the holders of the voting securities of the Company do not continue to hold more than 50% of the combined voting
power of the voting securities of the surviving entity;

 

		(b)	the sale, transfer or other disposition of all or substantially all of the assets of the Company;

 

		(c)	the complete liquidation or dissolution of the Company;

 

		(d)	any reverse takeover or series of related transactions culminating in a reverse takeover (including, without limitation, a
tender offer followed by a reverse takeover) in which the Company is the surviving entity but (i) the Company’s equity securities
outstanding immediately prior to such takeover are converted or exchanged by virtue of the takeover into other property, whether
in the form of securities, cash or otherwise, or (ii) in which securities possessing more than fifty percent (50%) of the total
combined voting power of the Company’s outstanding securities are transferred to a person or persons different from those
who held such securities immediately prior to such takeover or the initial transaction culminating in such takeover, but excluding
any such transaction or series of related transactions that the Committee determines, at its sole discretion, shall not be a Corporate
Transaction; or

 

		(e)	acquisition in a single or series of related transactions by any person or related group of persons (other than the Company
or by a Company-sponsored employee benefit plan) of beneficial ownership of securities possessing more than fifty percent (50%)
of the total combined voting power of the Company’s outstanding securities, but excluding any such transaction or series
of related transactions that the Committee determines, at its sole discretion, shall not be a Corporate Transaction.

 

PRC Tax Consequences

 

The following is a general discussion of the PRC individual
income tax consequences of the grant and exercise of an award and any disposition of Shares acquired under the Amended 2016 Plan.
The following discussion is limited to options, restricted shares and restricted share units. It applies to you only if you are
a PRC individual income taxpayer.

 

The following discussion is based on present PRC individual
income tax laws and regulations, and is not a complete description of the PRC tax laws. Certain PRC individual income taxpayers
may also be subject to or qualify for certain local tax treatment that is not described below. Certain PRC individual income taxpayers
who are not subject to PRC individual income tax on their worldwide income may be subject to PRC individual income tax only on
their PRC source income with respect to the exercise of an option.

 

International tax issues are also beyond the scope of the
following discussion. If you are employed or live outside of the PRC, or if you are not a PRC individual income taxpayer, you may
be subject to foreign taxes and it is possible that none of the topics covered in the following discussion are relevant to your
particular circumstances.

 

    	 	8	 

     

    

 

You should consult your own tax advisor with respect to the
application of the general principles discussed in this Prospectus to your particular situation.

 

Is the grant of either options, restricted
shares or restricted share units taxable to me?

 

No. The grant of options, restricted shares or restricted
share units does not result in taxable income to you.

 

Is the exercise of an option taxable to me?

 

Yes. If you are a PRC individual income taxpayer, when you exercise
an option, you will generally recognize income subject to the PRC individual income tax equal to the difference between the exercise
price and the fair market value of the Shares at the time of exercise.

 

How am I taxed on the exercise of an option?

 

The income you recognize with respect to the exercise of an
option will be taxed the same as ordinary wages and salaries income are taxed under the PRC individual income tax law. Under the
current PRC individual income tax law, income classified as wages and salaries income is taxed at progressive rates ranging from
3% to 45%. If you deliver already owned Shares in payment of the exercise price, the PRC tax consequences discussed below with
respect to the sale of Shares will also be applicable to you.

 

Will taxes be withheld when I exercise my option?

 

Yes. As wages and salaries are income, the income you recognize
with respect to the exercise of an option will generally be subject to withholding by your employer in the PRC or any other person
that is subject to PRC withholding tax obligations with respect to your remuneration. It is important to note that since regular
compensation will not typically be sufficient to cover the amount of withholding due, you will be required to pay or provide for
payment to the Company or your withholding agent of the applicable withholding amount. The Company may, in its sole discretion,
reduce the number of Shares deliverable or other amount payable pursuant to your option to satisfy applicable withholding requirements,
or permit you to deliver Shares already owned in payment of the applicable withholding requirements at the then market value of
the Shares. If the Company permits you to satisfy applicable withholding requirements upon the exercise of options by delivering
Shares already owned, the PRC tax consequences discussed below with respect to the sale of Shares will also be applicable to you.
More likely, the Company will require you to pay or provide for the cash payment of such withholding amounts, which will be satisfied
through the “cashless exercise” of your option.

 

When am I taxed on restricted shares or restriced share
units?

 

If you are a PRC individual income tax payer, you will be required
to pay a tax on the vesting date of the restricted shares or restricted share units. The amount of taxes you will be required to
pay will be based upon the value of the vested restricted shares or restricted share units as of the vesting date.

 

    	 	9	 

     

    

 

Please note that because taxes you are required to pay are calculated
based upon the value of the restricted shares or restricted share units as of the vesting date, the amount of taxes that you pay
may be higher than the amount of taxes you would pay if the restricted shares or restricted share units vested on another date.

 

Will I be taxed upon the sale or transfer of Shares vested
from my restricted shares or issued upon the vesting of my restricted share units?

 

Yes. If you are a PRC individual income taxpayer, when you sell
or transfer Shares vested from your restricted shares or issued upon the vesting of your restricted share units, you will generally
recognize income subject to the PRC individual income tax at a flat rate of 20% equal to the difference between the consideration
you have paid, if any, to obtain such Shares and the consideration you have received upon the sale or transfer of such Shares under
the current PRC individual income tax law.

 

How am I taxed on dividend and similar incomes received
for holding the Shares?

 

The dividend and similar incomes you receive during the time
period in which you hold the Shares will be classified as income from interest and dividend and taxed at a flat rate of 20% under
the current PRC individual income tax law.

 

What are the tax consequences of selling shares that I
acquire upon exercise of my option?

 

Generally, your basis in Shares acquired on exercise of an option
will be equal to the fair market value of the Shares on the date they are acquired. If you are a PRC individual income taxpayer,
when you dispose of the Shares you acquired, you will generally recognize income equal to the difference between the sales price
and your basis in the Shares disposed of. The income you recognize will be classified as income from the assignment of property
taxed at a flat rate of 20% under the current PRC individual income tax law. Delivery of Shares already owned in satisfaction of
applicable withholding requirements discussed above will be treated as a sale for PRC individual income tax purposes.

 

How does my PRC individual income tax treatment differ
if I am not subject to PRC individual income tax on my worldwide income?

 

Generally, you may not be subject to PRC individual income tax
on your worldwide income if you are not domiciled in the PRC and have not been a resident of the PRC for five (5) or more years.
If you are not subject to PRC individual income tax on your worldwide income, then the income you recognize with respect to the
exercise of an option may only be subject to PRC individual income tax to the extent the income relates to services performed in
the PRC. In addition, a sale of your Shares (including a sale of Shares already owned in satisfaction of applicable withholding
requirements discussed above) may not be subject to PRC individual income tax. You should consult your own tax advisor to determine
your PRC individual income tax status if you believe you are not subject to PRC individual income tax on your worldwide income.

 

U.S. Federal Income Tax Information

 

The following is a general discussion of the U.S. federal
income tax consequences of the grant and exercise of an award and any disposition of Shares acquired under the Amended 2016 Plan.
The following discussion is limited to options, restricted shares and restricted share units. It applies to you only if you are
a citizen or resident of the United States and are subject to U.S. federal income tax on your worldwide income.

 

    	 	10	 

     

    

 

The following discussion is based on present U.S. federal
tax laws and regulations, and is not a complete description of the U.S. federal tax laws. You may also be subject to certain state
and local, franchise and other taxes that are not described below. Gift and estate taxes are also beyond the scope of the following
discussion.

 

International tax issues are also beyond the scope of the
following discussion. If you are employed or live outside of the United States, or if you are not a U.S. citizen, you may be subject
to foreign taxes and it is possible that none of the topics covered in the following discussion are relevant to your particular
circumstances.

 

You should consult your own tax advisor with respect to the
application of the general principles discussed in this Prospectus to your particular situation and the impact of foreign, state,
local, estate and/or gift taxes.

 

What are the tax consequences if I am granted an option?

 

The grant of an option does not result in tax consequences to
you or the Company if granted with an exercise price at or above the fair market value of the Shares as of the date the option
is granted.

 

What are the tax consequences if I exercise an option?

 

The Amended 2016 Plan permits the grant of either or both NQSOs
and ISOs. The principal difference between these types of options is their tax treatment under applicable U.S. tax laws. If applicable,
your award agreement will indicate if your option is intended to be an ISO under the Code.

 

NQSOs. When you exercise an NQSO, you will generally
recognize ordinary income equal to the difference between the exercise price and the fair market value of the Shares at the time
of exercise (this difference is also called the option’s “spread”) and withholding taxes will be imposed. (See
the response to the question below regarding withholding taxes.) The Company or its Subsidiaries will generally be entitled to
a corresponding tax deduction at that time.

 

ISOs. The timely exercise of an ISO is not a taxable
event. An ISO is not timely exercised unless it is exercised while you are an employee of the Company or an affiliate or within
certain post-termination of employment periods specified in the Code. That is, the Code generally provides that an ISO may be exercised
only while you are employed by the Company or one of its Subsidiaries or in the three-month period following the last day that
you are employed by the Company or one of its Subsidiaries. The three-month period under the Code is extended to one year in the
event your employment terminates due to your disability (as defined in your award agreement) and there is no limitation under the
Code if your employment terminates due to your death. If you hold ISOs following your termination of employment, consult your personal
tax advisor for more information. Also note that your award agreement may provide that your ISO will terminate earlier than the
maximum exercise period permitted under the Code. If your award agreement allows you to exercise an option intended as an ISO after
the maximum exercise period permitted under the Code and you actually exercise the option after the maximum exercise period permitted
under the Code, the option will be treated as an NQSO.

 

    	 	11	 

     

    

 

What are the tax consequences of selling Shares that I
acquire upon exercise of my option?

 

NQSOs. Generally, your basis in Shares acquired on exercise
of an NQSO is equal to the fair market value of the Shares on the date they are acquired, and, upon subsequent disposition, any
further gain or loss is taxable as either short-term or long-term capital gain or loss, depending on how long you hold the Shares.
The holding period commences on the date you acquire the Shares, not the date the option is granted to you.

 

ISOs Qualifying Disposition. If you exercise an ISO and
hold the Shares acquired upon exercise of the ISO for a period of at least two years from the date of grant of the ISO and for
at least one year from the date of exercise of the ISO (the “Required Holding Period”) before disposing of the Shares,
you will recognize long-term capital gain or loss in an amount equal to the difference between the sales price of the Shares and
the exercise price of the ISO. The Company will not be entitled to a deduction if you make a disposition of Shares acquired upon
exercise of an ISO after you satisfy the Required Holding Period.

 

ISOs Disqualifying Disposition. If you dispose of Shares
acquired upon exercise of an ISO without satisfying the Required Holding Period (a “Disqualifying Disposition”), you
will generally recognize ordinary income at the time of such Disqualifying Disposition equal to the difference between the exercise
price of the ISO and the value of the Shares on the date you exercise the ISO. In no event, however, will the amount of this ordinary
income exceed the difference between the exercise price of the ISO and the amount realized on such Disqualifying Disposition. Any
remaining gain or net loss is treated as a short-term or long-term capital gain or loss, depending upon how long you hold the Shares.
Unlike the case in which an NQSO is exercised, the Company or its Subsidiaries are not entitled to a tax deduction upon either
the timely exercise of an ISO or upon a disposition of the Shares acquired pursuant to such exercise, except to the extent that
you recognize ordinary income in a Disqualifying Disposition. You must promptly notify the Company in writing of a Disqualifying
Disposition.

 

ISOs Alternative Minimum Tax. In addition to regular
income tax, when you exercise an ISO, you may be subject to the federal alternative minimum tax (“AMT”) if your alternative
minimum taxable income (“AMTI”) exceeds certain amounts. AMT is a separately computed tax under the Code. Your AMT
for a tax year is the excess of your tentative minimum tax over your regular tax. For example, if your AMT is $75,000 while your
regular income tax is $50,000, you must pay an AMT of $25,000 in addition to your $50,000 regular income tax. The AMT is imposed
only to the extent you would pay more income tax if your taxes are computed pursuant to the AMT rules than the tax you would pay
if computed in the regular manner.

 

The AMT takes into account what
are called tax preference items and other adjustments that are not taken into account when calculating taxes in the regular manner.
One of the adjustments is the inclusion in AMTI of the “spread” of an incentive
stock option, that is, the excess of (a) the fair market value of the stock on the exercise date, over (b) the exercise price of
the incentive stock option. If you pay AMT upon exercise of an incentive stock option, you are entitled to a credit against regular
tax (but not AMT) in later years. When you sell the stock, you are allowed, for purposes of calculating your AMT in the year of
sale, to include in the basis of the stock sold the adjustment amount previously included in your AMTI in the year of exercise.

 

    	 	12	 

     

    

 

What happens if I use shares to pay the exercise price
of my option? 

 

Special rules apply if you are permitted to use Shares to pay
the exercise price of an option.

 

Please consult your personal tax advisor if you are permitted
to and wish to use previously acquired Shares to exercise your option.

 

Will taxes be withheld when I exercise my option?

 

NQSOs. Upon the exercise of an NQSO (other than by a
person who is not an employee and was not an employee at the time the option was granted), the Company or its Subsidiaries will
be required to withhold federal income and employment taxes. Typically, federal income taxes will be withheld at the supplemental
wage-withholding rate. Social Security taxes (to the extent that your compensation has not reached the Social Security wage base
limitation for the year of exercise) and Medicare taxes will be withheld. State and local tax withholding may also be required,
depending on your state of employment. It is important to note that the amount of federal and/or state income taxes withheld may
not be sufficient to cover your actual tax liability and you will be responsible for any shortfall.

 

Since regular compensation will not typically be sufficient
to cover the amount due, you will be required to pay or provide for payment to the Company or its Subsidiaries of the applicable
withholding amount. The Company may, in its sole discretion, reduce the amount of shares deliverable or other amount payable pursuant
to your option to satisfy applicable withholding requirements, or permit you to deliver Shares already owned in payment of the
applicable withholding requirements at the then fair market value of the Shares. (If the Company allows you to use already owned
Shares, those Shares generally must have been owned by you (unrestricted) for at least six months before you can use them in this
manner if you first acquired the Shares from the Company.) More likely, the Company will require you to pay or provide for the
cash payment of such withholding amounts.

 

ISOs. Tax withholding is not required upon the exercise
of an ISO under current law or upon a Disqualifying Disposition.

 

What happens if I use shares to pay withholding taxes?

 

NQSOs. If the Company permits you to satisfy applicable
withholding requirements upon the exercise of an NQSO by using Shares, and you elect to satisfy the tax withholding obligation
in this manner, your tax consequences will vary depending on whether you are permitted and elect to satisfy the withholding obligation
by (a) delivering previously acquired Shares, (b) having the Company reduce the number of Shares otherwise issuable to you upon
exercise of the NQSO, and you do not use Shares to pay the exercise price of the NQSO, or (c) having the Company reduce the number
of Shares otherwise issuable to you upon exercise of the NQSO, and you use Shares to pay the exercise price of the NQSO.

 

If you deliver previously acquired Shares to pay the applicable
withholding taxes, the delivery of Shares will be treated as a sale of stock and you will recognize short-term or long-term capital
gain or loss depending upon the fair market value, basis and holding period of the previously acquired Shares that you used.

 

    	 	13	 

     

    

 

If you elect to have the Company reduce the number of Shares
otherwise issuable to you upon exercise of the NQSO (or you tender back Shares that were issued as part of the NQSO) to cover applicable
withholding taxes and you do not use Shares to pay the exercise price of the NQSO, you should generally recognize no additional
gain or any loss as a result of the reduction in the net number of Shares received because your basis in the Shares withheld or
tendered will generally equal their fair market value at the time of withholding. See the response to the fourth question above.

 

If you use previously acquired Shares to pay the exercise price
of an NQSO, you will receive two sets of Shares as described in the response to the fourth question above. A number of Shares awarded,
equal to the number of previously acquired Shares exchanged to exercise the NQSO (the “Transferred Basis Shares”),
will have the same basis and holding period as the previously acquired Shares. Shares awarded in excess of this number will have
a basis equal to their fair market value at the time of taxation and a holding period beginning on the same date (the “Excess
Shares”). If you are permitted to apply Shares otherwise issuable to you upon exercise of the NQSO (or to tender back Shares
that were issued as part of the NQSO) to cover applicable withholding taxes, and if the Excess Shares have sufficient fair market
value to satisfy the withholding obligation, you will recognize no additional gain or loss as a result of the reduction in the
number of Shares received. However, to the extent that any Transferred Basis Shares are used by the Company to pay withholding
taxes, you will recognize additional gain or loss in the manner described above for tendering previously acquired Shares to satisfy
the tax withholding obligations.

 

ISOs. Tax withholding is not required upon the exercise
of an ISO under current law.

 

What are the tax consequences for restricted shares?

 

In general, if you have been granted restricted shares you will
not realize taxable income at the time of grant and the Company or its Subsidiaries will not be entitled to a corresponding deduction,
assuming that the restrictions constitute a “substantial risk of forfeiture” for federal income tax purposes. Upon
the vesting of the Restricted Share, you will realize ordinary income in an amount equal to the then fair market value of the shares
that vested over the amount paid, if any, the Company or its Subsidiaries will generally be entitled to a corresponding tax deduction.
Gains (or losses) realized by you upon disposition of such shares will be treated as capital gains and losses, with the basis in
such shares equal to the fair market value of the shares at the time of vesting. You may elect within 30 days of the grant of restricted
shares to you, pursuant to Section 83(b) of the Code, to have income recognized at the date of grant of the restricted shares and
to have the applicable capital gain holding period commence as of that date. If you make this election, the Company or its Subsidiaries
will generally be entitled to a corresponding tax deduction at that time.

 

What are the tax consequences for the restricted share
units?

 

If you receive restricted share units, you will not recognize
any taxable income in respect of the restricted share units at the time of grant but you will recognize ordinary income equal to
the excess of the fair market value of the restricted share units at the time the restrictions lapse over the amount, if any, that
you paid for the restricted share units.

 

    	 	14	 

     

    

 

What are implications under Section 409A of the Code?

 

The Amended 2016 Plan permits the grant of various types of
awards, which may or may not be exempt from Section 409A of the Code. If an award is subject to Section 409A, and if the requirements
of Section 409A are not met, the taxable events as described above could apply earlier than described, and could result in the
imposition of additional taxes and penalties. Restricted shares and options that comply with the applicable provisions of Section
409A and do not have a deferral feature generally are exempt from the application of Section 409A of the Code. The restricted share
units granted under the Amended 2016 Plan generally are subject to Section 409A, unless they are designed to satisfy an exemption
under Section 409A, such as a short-term deferral.

 

What about excise taxes?

 

Upon certain changes in control of the Company, the vesting
of options may accelerate. If so, the additional economic value, if any, attributable to the acceleration may be deemed a “parachute
payment.” This amount will generally be deemed a parachute payment if the value attributable to the acceleration, when combined
with the value of other payments that are deemed to result from the change in control, equals or exceeds a threshold amount equal
to 300% of your average annual taxable compensation from the Company and its Subsidiaries over the five (5) calendar years (or
your entire period of employment with the Company and its Subsidiaries, if it is less than five (5) years) preceding the year in
which the change in control occurs. In such case, the excess of the total parachute payments over your average annual taxable compensation
will be subject to a 20% nondeductible excise tax, payable by you, in addition to any income tax payable. The Company or its Subsidiaries
will not be entitled to a deduction for any portion of a parachute payment that is subject to the excise tax.

 

Restrictions on Transfer and Sale

 

Are awards transferable?

 

Except as otherwise provided by the Committee,
no award shall be assigned, transferred or otherwise disposed of by a Participant other than by will or the laws of descent and
distribution. The Committee, by express provision in the award or an amendment thereto, may permit an award to be transferred to,
exercised by and paid to certain persons or entities related to the Participant. However, an ISO may be exercised only by the Participant
during his/her lifetime.

 

Notwithstanding the above, Participant
may, in the manner determined by the Committee, designate a beneficiary to exercise the rights of the Participant and to receive
any distribution with respect to any award upon the Participant’s death.

 

Can I create any lien on the awards?

 

No right or interest of a Participant in
any award may be pledged, encumbered, or hypothecated to or in favor of any party other than the Company or a Subsidiary, or shall
be subject to any lien, obligation, or liability of such Participant to any other party other than the Company or a Subsidiary.

 

Am I restricted from selling the Shares?

 

The Amended 2016 Plan does not restrict
your ability to sell the Shares that you obtain under the Amended 2016 Plan.

 

    	 	15	 

     

    

 

This Prospectus does not cover sales or
other dispositions of Shares received under the Amended 2016 Plan by any person who may be deemed to be an affiliated person. Such
sales or other dispositions may be made in compliance with the registration requirements of the federal securities laws or the
requirements of Rule 144 promulgated thereunder, without being subject to the holding period requirement of such Rule, or may be
made pursuant to another exemption from such registration. Except as otherwise provided in an award agreement, there will be no
restrictions upon sales or other dispositions of Shares by Participants who are not affiliated persons. An affiliated person, for
purposes of the federal securities laws, generally means a senior officer, director or other person who is deemed to control the
Company.

 

Additional Information

 

Under the Securities Act, the Company has filed a registration
statement on Form S-8 with the U.S. Securities and Exchange Commission (the “SEC”) to register the Shares offered by
this Prospectus. This Prospectus is part of that registration statement but, as permitted by SEC rules, this Prospectus does not
contain all the information that you can find in the registration statement, including materials filed with the SEC and incorporated
by reference in the registration statement and in this Prospectus, or the exhibits to the registration statement.

 

The following documents filed with the SEC are incorporated
herein by reference:

 

		(a)	The Company’s annual report on Form 20-F for the fiscal year ended December 31, 2017 filed with the Commission on April
27, 2018; and

 

		(b)	The description of the Company’s ordinary shares incorporated by reference in the Company’s registration statement
on Form 8-A (File No.: 001-34947) filed with the SEC on Novmeber 3, 2010, including any amendment and report subsequently filed
for the purpose of updating that description.

 

All documents subsequently filed by the Company pursuant to
Sections 13(a), 13(c), 14 and 15(d) of the U.S. Securities Exchange Act of 1934 (the “Exchange Act”) at any time prior
to the filing of a post-effective amendment that indicates that all securities offered have been sold or that deregisters all securities
then remaining unsold, shall be deemed to be incorporated by reference in this Prospectus and to be a part hereof from the date
of filing such documents.

 

Under the Exchange Act, the Company is required to file annual
reports and other information with the SEC. You may read and copy any document the Company has filed with the SEC at the SEC’s
Public Reference Room at 100 F Street N.E., Washington, D.C. 20549. Information on the operation of the Public Reference Room may
be obtained by calling the SEC at 1-800-SEC-0330. In addition, the SEC maintains an Internet site at www.sec.gov, from which interested
persons can electronically access such filings, including the exhibits and any schedules thereto.

 

You may also request a copy of any of these filings at no cost,
by writing or telephoning the Company at:

 

Bitauto Holdings Limited

New Century Hotel Office Tower, 6/F

No. 6 South Capital Stadium Road

Beijing, 100044

The People’s Republic of China

(86-10) 6849-2345

 

    	 	16	 

     

    

 

You should rely only on the information incorporated by reference
or provided in this Prospectus or any supplement. The Company has not authorized anyone else to provide you with different
information. You should not assume that the information in this Prospectus or any supplement is accurate as of any date
other than the date on the front of those documents.

 

In addition to the Shares registered on the Form S-8 registration
statement for the Amended 2016 Plan, this Prospectus also covers such additional Shares as may be deliverable under the Amended
2016 Plan in the event of a stock dividend, stock split, stock combination, merger, consolidation, reorganization, recapitalization
or other change in the capital structure of the Company affecting the Shares after the date of this Prospectus.

 

Neither the SEC nor any state securities commission has approved
these securities or determined that this Prospectus is accurate or complete. Any representation to the contrary is a criminal offense.
This Prospectus is not an offer to sell the securities and it is not soliciting an offer to buy the securities in any state
or jurisdiction where offers or sales are not permitted.

 

    	 	17

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