Document:

Exhibit 10.8

 

EXECUTION VERSION

 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND REPLACED WITH “[...***...].” A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

 

LICENSE AGREEMENT

 

DATED AS OF October 28, 2013

 

BY AND BETWEEN

 

BEIGENE, LTD.

 

AND

 

MERCK KGAA

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
PAGE
    
	
ARTICLE 1 DEFINITIONS
    	
2
    
	
 
    	
 
    	
 
    
	
1.1
    	
“Affiliate”
    	
2
    
	
1.2
    	
“BGB-290   PARP Program”
    	
2
    
	
1.3
    	
“BGB-290   Patent Application”
    	
2
    
	
1.4
    	
“BeiGene   Bankruptcy Event”
    	
2
    
	
1.5
    	
“BeiGene   Know-How”
    	
2
    
	
1.6
    	
“BeiGene   Materials”
    	
3
    
	
1.7
    	
“BeiGene   Patents”
    	
3
    
	
1.8
    	
“BeiGene   Technology”
    	
3
    
	
1.9
    	
“Business   Day”
    	
3
    
	
1.10
    	
“Calendar   Quarter”
    	
3
    
	
1.11
    	
“Calendar   Year”
    	
3
    
	
1.12
    	
“Challenge”
    	
4
    
	
1.13
    	
“Change of Control”
    	
4
    
	
1.14
    	
“Clinical   Trial”
    	
4
    
	
1.15
    	
“Collaboration   Compound”
    	
4
    
	
1.16
    	
“Combination   Product”
    	
5
    
	
1.17
    	
“Commercialization”   or “Commercialize”
    	
5
    
	
1.18
    	
“Commercialization   Regulatory Approval”
    	
5
    
	
1.19
    	
“Commercially   Reasonable Efforts”
    	
5
    
	
1.20
    	
“Company Know-How”
    	
6
    
	
1.21
    	
“Company   Materials”
    	
6
    
	
1.22
    	
“Company   Patents”
    	
6
    
	
1.23
    	
“Company   Technology”
    	
6
    
	
1.24
    	
“Confidential   Information”
    	
6
    
	
1.25
    	
“Controlled”
    	
6
    
	
1.26
    	
“Cover”,   “Covering” or “Covered”
    	
6
    
	
1.27
    	
“Development”   or “Develop”
    	
7
    
	
1.28
    	
“European   Union” or “EU”
    	
7
    
	
1.29
    	
“Executive   Officers”
    	
7
    
	
1.30
    	
“FDA”
    	
7
    
	
1.31
    	
“Field”
    	
7
    

 

i

 

	
1.32
    	
“First   Commercial Sale”
    	
7
    
	
1.33
    	
“Governmental   Body”
    	
7
    
	
1.34
    	
“Indication”
    	
7
    
	
1.35
    	
“IFRS”
    	
8
    
	
1.36
    	
“Joint   Patents”
    	
8
    
	
1.37
    	
“Joint   Know-How”
    	
8
    
	
1.38
    	
“Know-How”
    	
8
    
	
1.39
    	
“Law”   or “Laws”
    	
9
    
	
1.40
    	
“MAA”
    	
9
    
	
1.41
    	
“Manufacture”   or “Manufacturing” or “Manufactured”
    	
9
    
	
1.42
    	
“NDA”
    	
9
    
	
1.43
    	
“Net Sales”
    	
9
    
	
1.44
    	
“PARP   Inhibitor”
    	
9
    
	
1.45
    	
“Patent   Rights”
    	
9
    
	
1.46
    	
“Person”
    	
9
    
	
1.47
    	
“Phase I Clinical   Trial”
    	
10
    
	
1.48
    	
“Phase II   Clinical Trial”
    	
10
    
	
1.49
    	
“Phase III   Clinical Trial”
    	
10
    
	
1.50
    	
“Phase IV   Clinical Trial”
    	
10
    
	
1.51
    	
“PRC   Territory”
    	
10
    
	
1.52
    	
“Price   Approval”
    	
10
    
	
1.53
    	
“Product”
    	
10
    
	
1.54
    	
“Product IP”
    	
10
    
	
1.55
    	
“Program IP”
    	
10
    
	
1.56
    	
“Regulatory   Authority”
    	
10
    
	
1.57
    	
“Regulatory   Approval”
    	
11
    
	
1.58
    	
“Representatives”
    	
11
    
	
1.59
    	
“Royalty   Term”
    	
11
    
	
1.60
    	
“Senior   Executive”
    	
11
    
	
1.61
    	
“Sublicensee”
    	
11
    
	
1.62
    	
“Tax”   or “Taxes”
    	
11
    
	
1.63
    	
“Territory   Expansion Event”
    	
11
    
	
1.64
    	
“Third   Party”
    	
12
    
	
1.65
    	
“Third   Party Action”
    	
12
    

 

ii

 

	
1.66
    	
“United   States” or “US”
    	
12
    
	
1.67
    	
“USD”   or “$”
    	
12
    
	
1.68
    	
“Valid   Claim”
    	
12
    
	
1.69
    	
Other Terms
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE 2   GRANT OF RIGHTS
    	
14
    
	
 
    	
 
    	
 
    
	
2.1
    	
License Grants
    	
14
    
	
2.2
    	
Right to Sublicense
    	
14
    
	
2.3
    	
Right of First Negotiation
    	
15
    
	
2.4
    	
PRC Commercialization Option
    	
16
    
	
 
    	
 
    	
 
    
	
ARTICLE 3   FINANCIAL PROVISIONS
    	
17
    
	
 
    	
 
    	
 
    
	
3.1
    	
Initial Fee
    	
17
    
	
3.2
    	
Royalty Payments
    	
17
    
	
3.3
    	
Reductions, Deductions and   Reimbursements
    	
17
    
	
3.4
    	
Timing of Payment
    	
18
    
	
3.5
    	
Milestone Payments
    	
18
    
	
3.6
    	
Mode of Payment and Currency;   Invoices
    	
19
    
	
3.7
    	
Royalty Reports and Records   Retention
    	
20
    
	
3.8
    	
Legal Restrictions
    	
21
    
	
3.9
    	
Late Payments
    	
21
    
	
3.10
    	
Audits
    	
21
    
	
3.11
    	
Taxes
    	
23
    
	
3.12
    	
Value Added Tax
    	
23
    
	
 
    	
 
    	
 
    
	
ARTICLE 4   CONFIDENTIALITY
    	
24
    
	
 
    	
 
    	
 
    
	
4.1
    	
Confidentiality Obligations
    	
24
    
	
4.2
    	
Use
    	
25
    
	
4.3
    	
Publication
    	
26
    
	
4.4
    	
Required Disclosure
    	
26
    
	
4.5
    	
Press Releases and Disclosure
    	
26
    
	
 
    	
 
    	
 
    
	
ARTICLE 5   WARRANTIES AND COVENANTS
    	
27
    
	
 
    	
 
    	
 
    
	
5.1
    	
Warranties
    	
27
    
	
5.2
    	
Additional Warranties and   Covenants of BeiGene
    	
27
    
	
 
    	
 
    	
 
    
	
ARTICLE 6   INDEMNIFICATION AND INSURANCE
    	
28
    
	
 
    	
 
    	
 
    
	
6.1
    	
Indemnification by Company
    	
28
    
	
6.2
    	
Indemnification by BeiGene
    	
29
    

 

iii

 

	
6.3
    	
Certain Liabilities
    	
29
    
	
6.4
    	
No Consequential Damages
    	
29
    
	
6.5
    	
Notification of Claims;   Conditions to Indemnification Obligations
    	
30
    
	
6.6
    	
Insurance
    	
30
    
	
 
    	
 
    	
 
    
	
ARTICLE 7   TERM AND TERMINATION
    	
30
    
	
 
    	
 
    	
 
    
	
7.1
    	
Term and Expiration
    	
30
    
	
7.2
    	
Termination
    	
31
    
	
7.3
    	
Effects of Expiration or   Termination
    	
32
    
	
 
    	
 
    	
 
    
	
ARTICLE 8   DISPUTE RESOLUTION
    	
33
    
	
 
    	
 
    	
 
    
	
8.1
    	
Disputes
    	
33
    
	
8.2
    	
Escalation to Executive   Officers
    	
33
    
	
8.3
    	
Arbitration
    	
33
    
	
8.4
    	
Injunctive Relief
    	
35
    
	
 
    	
 
    	
 
    
	
ARTICLE 9   MISCELLANEOUS PROVISIONS
    	
35
    
	
 
    	
 
    	
 
    
	
9.1
    	
Relationship of the Parties
    	
35
    
	
9.2
    	
Assignment
    	
35
    
	
9.3
    	
Performance and Exercise by   Affiliates
    	
36
    
	
9.4
    	
Change of Control
    	
36
    
	
9.5
    	
Further Actions
    	
38
    
	
9.6
    	
Accounting Procedures
    	
38
    
	
9.7
    	
Force Majeure
    	
38
    
	
9.8
    	
No Trademark Rights
    	
39
    
	
9.9
    	
Entire Agreement of the   Parties; Amendments
    	
39
    
	
9.10
    	
Captions
    	
39
    
	
9.11
    	
Governing Law
    	
39
    
	
9.12
    	
Notices and Deliveries
    	
39
    
	
9.13
    	
Language
    	
41
    
	
9.14
    	
Waiver
    	
41
    
	
9.15
    	
Severability
    	
41
    
	
9.16
    	
No Implied License
    	
41
    
	
9.17
    	
Interpretation
    	
41
    
	
9.18
    	
Counterparts
    	
42
    
	
9.19
    	
No Third Party Beneficiaries
    	
42
    
	
9.20
    	
No Reliance
    	
42
    

 

iv

 

LICENSE AGREEMENT

 

This License Agreement (this “Agreement”) is dated as of October 28, 2013 (the “Effective Date”) by and between BeiGene , Ltd, a corporation organized under the laws of the Cayman Islands having an address of c/o Mourant Ozannes Corporate Services (Cayman) Limited, 94 Solaris Avenue, Camana Bay, P.O. Box 1348, Grand Cayman, KY1-1108, Cayman Islands GB (“BeiGene”), and Merck KGaA, a corporation with general partners organized under German law having a place of business at Frankfurter Strasse 250, 64293 Darmstadt, Germany (“Company”).  BeiGene and Company may be referred to herein as a “Party” or, collectively, as “Parties.”

 

RECITALS:

 

WHEREAS, BeiGene has developed and controls certain technology and proprietary materials related to its proprietary poly (ADP-ribose) polymerase (“PARP”) inhibitor known as BGB-290 (“BGB-290”) and is engaged in the research, discovery, development, manufacture and commercialization of biopharmaceutical products;

 

WHEREAS, Company is engaged in the research, development, manufacturing and commercialization of pharmaceutical products;

 

WHEREAS, as of the date hereof, Company and BeiGene are entering into an arrangement whereby (i) the Parties will collaborate in the development and manufacturing of Collaboration Compound and Product and commercialization of Product , and (ii) Company will have exclusive license rights to Develop and Commercialize Collaboration Compound and Product in the Field outside the PRC Territory, in exchange for upfront, milestone and royalty payments pursuant to a license agreement entered into between Company and BeiGene on the date hereof (the “Other License Agreement”); and

 

WHEREAS, Company and BeiGene desire to enter into this Agreement setting forth (i) BeiGene’s exclusive license from Company under Company Technology to Develop and Commercialize Collaboration Compound and Product in the Field in the PRC Territory, in exchange for royalties, and (ii) an option and a right of first negotiation to Company with respect to a license of the rights to research, Develop, Manufacture and Commercialize the Collaboration Compound and Product in the PRC Territory.

 

1

 

NOW, THEREFORE, in consideration of the various promises and undertakings set forth herein, the Parties agree as follows:

 

ARTICLE 1

 

DEFINITIONS

 

Unless otherwise specifically provided herein, the following terms shall have the following meanings:

 

1.1                               “Affiliate” means a Person that controls, is controlled by or is under common control with a Party, but only for so long as such control exists.  For the purposes of this Section 1.1, the word “control” (including, with correlative meaning, the terms “controlled by” or “under the common control with”) means the actual power, either directly or indirectly through one or more intermediaries, to direct the management and policies of such Person or entity, whether by the ownership of more than fifty percent (50%) of the voting stock of such entity, or by contract or otherwise.

 

1.2                               “BGB-290 PARP Program” means BeiGene’s Development program relating to Collaboration Compounds and/or Product in the PRC Territory.

 

1.3                               “BGB-290 Patent Application” means [...***...].

 

1.4                               “BeiGene Bankruptcy Event” means:  (a) voluntary or involuntary proceedings by or against BeiGene are instituted in bankruptcy under any insolvency Law, which proceedings, if involuntary, shall not have been dismissed within sixty (60) days after the date of filing; (b) a receiver or custodian is appointed for BeiGene; (c) proceedings are instituted by or against BeiGene for corporate reorganization, dissolution, liquidation or winding-up of BeiGene, which proceedings, if involuntary, shall not have been dismissed within sixty (60) days after the date of filing; or (d) substantially all of the assets of BeiGene are seized or attached and not released within sixty (60) days thereafter.

 

1.5                               “BeiGene Know-How” means all Know-How that is Controlled by BeiGene or any of its Affiliates, as of the Effective Date or at any time thereafter during the Term, and that is necessary or useful in the research, Development, Manufacture, use, or Commercialization of the

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

2

 

Collaboration Compound or Product.  The BeiGene Know-How shall include all Know-How set forth on Schedule 1.5.

 

1.6                               “BeiGene Materials” means all chemical, biological or physical materials other than Collaboration Compounds that are Controlled by BeiGene or any of its Affiliates, as of the Effective Date or at any time thereafter during the Term, and that are necessary or useful in the research, Development, Manufacture, use or Commercialization of the Collaboration Compound or Product.  The BeiGene Materials set forth on Schedule 1.6 constitute all BeiGene Materials as of the Effective Date.

 

1.7                               “BeiGene Patents” means all Patent Rights that are Controlled by BeiGene or any of its Affiliates, as of the Effective Date or at any time thereafter during the Term, and that Cover the research, Development, Manufacture, use, or Commercialization of the Collaboration Compound or Products.  Listed on Schedule 1.7 are all BeiGene Patents existing as of the Effective Date; provided, that BeiGene shall update Schedule 1.7 from time-to-time to include any new Patent Rights that come to be Controlled by BeiGene or any of its Affiliates at any time during the Term on or following the Effective Date that Cover the research, Development, Manufacture, use, or Commercialization of the Collaboration Compounds or Products.

 

1.8                               “BeiGene Technology” means the BeiGene Patents, the BeiGene Know-How, the BeiGene Materials, Product IP, and BeiGene’s rights in the Program IP.

 

1.9                               “Business Day” means a day other than Saturday or Sunday on which banking institutions in Beijing, China; and Darmstadt, Germany are open for business.

 

1.10                        “Calendar Quarter” means each three (3) month period commencing January 1, April 1, July 1 or October 1 of any year; provided, however, that (a) the first Calendar Quarter of the Term shall extend from the Effective Date to the end of the first full Calendar Quarter thereafter, and (b) the last Calendar Quarter of the Term shall end upon the termination or expiration of this Agreement.

 

1.11                        “Calendar Year” means the period beginning on the 1st of January and ending on the 31st of December of the same year; provided, however, that (a) the first Calendar Year of the Term shall commence on the Effective Date and end on December 31 of the same year and (b) the last Calendar Year of the Term shall commence on January 1 of the Calendar Year in which this

 

3

 

Agreement terminates or expires and end on the date of expiration or termination of this Agreement.

 

1.12                        “Challenge” means any challenge to the validity or enforceability of any of the BeiGene Patents, including without limitation by (a) filing a declaratory judgment action in which any of the BeiGene Patents is alleged to be invalid or unenforceable; or (b) filing or commencing any re-examination, interference, derivation proceeding, post-issuance proceeding, opposition, cancellation, nullity or similar proceedings against any of the BeiGene Patents in the courts or patent offices in any country.

 

1.13                        “Change of Control” means, with respect to BeiGene or its parent entity (the “Target”):  (a) a transaction or series of related transactions that results in the sale or other disposition of all or substantially all of the Target’s assets; or (b) a merger or consolidation in which, whether or not the Target is the surviving corporation, the shareholders of the Target immediately prior to the consummation of such merger or consolidation do not, immediately after consummation of such merger or consolidation, possess, directly or indirectly through one or more intermediaries, a majority of the voting power of all of the surviving entity’s outstanding stock and other securities and the power to elect a majority of the members of the surviving entity’s board of directors; or (c) a transaction or series of related transactions (which may include a tender offer for the Target’s stock or the issuance, sale or exchange of stock of the Target) if a single Person or group of Persons who are Affiliates (including, without limitation,  Affiliates that are venture capital or investment divisions of such Person) and who are engaged in the research, development, manufacturing and commercialization of pharmaceutical products acquire the Target’s stock in such transaction or series of related transactions that possesses a majority of the voting power of all of the Target’s outstanding stock and other securities and the power to elect a majority of the members of the Target’s board of directors.

 

1.14                        “Clinical Trial” means a clinical trial in human subjects that has been approved by a Regulatory Authority and institutional review board or ethics committee, and is designed to measure the safety and/or efficacy of Product.  Clinical Trials shall include Phase I Clinical Trials, Phase II Clinical Trials, Phase III Clinical Trials and Phase IV Clinical Trials.

 

1.15                        “Collaboration Compound” means, collectively, (a) BGB-290, (b) any other compound which is within the claims of the BGB-290 Patent Application, (c) any prodrugs, salts or solvates of the

 

4

 

compounds described in clauses (a) and (b), and (d) any dosage form or formulation of the compounds described in clauses (a), (b) and (c).

 

1.16                        “Combination Product” means a fixed dose oral (or other form of administration) product containing Product and another product (such other product, which, for the avoidance of doubt, is not itself a Product, an “Additional Product”) that has received Commercialization Regulatory Approval for treating an Indication for which the Product has received Commercialization Regulatory Approval.

 

1.17                        “Commercialization” or “Commercialize” means any and all activities undertaken before and after Regulatory Approval of a MAA for Product and that relate to the marketing, promoting, distributing, importing or exporting for sale, offering for sale, and selling of Product, and interacting with Regulatory Authorities regarding the foregoing.

 

1.18                        “Commercialization Regulatory Approval” means, with respect to any Product, final approval of the counterpart of an NDA application submitted to the SFDA, together with pricing approval and government reimbursement approval by appropriate central authority and at least one provincial authority in the PRC Territory, required by applicable Law to permit the marketing of any applicable Product, as may be amended from time to time.

 

1.19                        “Commercially Reasonable Efforts” means:  (a) with respect to the efforts to be expended by a Party with respect to any objective, such reasonable, diligent, and good faith efforts as such Party would normally use to accomplish a similar objective under similar circumstances; and (b) with respect to any objective relating to Development or Commercialization of Product by a Party, the application by such Party, consistent with the exercise of its prudent scientific and business judgment, of diligent efforts and resources to fulfill the obligation in issue, consistent with the level of efforts such Party would devote to a product at a similar stage in its product life as Product and having profit potential and strategic value comparable to that of Product, taking into account, without limitation, commercial, legal and regulatory factors, target product profiles, product labeling, past performance, the regulatory environment and competitive market conditions in the therapeutic area, safety and efficacy of Product, and the strength of its proprietary position all based on conditions then prevailing.  For clarity, Commercially Reasonable Efforts will not mean that a Party guarantees that it will actually accomplish the applicable objective.

 

5

 

1.20                        “Company Know-How” means all Know-How that is Controlled by Company or any of its Affiliates, as of the Effective Date or at any time thereafter during the Term,  and that is necessary or useful in the research, Development, Manufacture, use, or Commercialization of the Collaboration Compound or Product.

 

1.21                        “Company Materials” means all chemical, biological or physical materials that are Controlled by Company or any of its Affiliates, as of the Effective Date or at any time thereafter during the Term, and that are necessary or useful in the research, Development, Manufacture, use or Commercialization of the Collaboration Compound or Product in the PRC Territory.

 

1.22                        “Company Patents” means all Patent Rights that are Controlled by Company or any of its Affiliates, as of the Effective Date or at any time thereafter during the Term, and that Cover the research, Development, Manufacture, use, or Commercialization of the Collaboration Compound or Product.

 

1.23                        “Company Technology” means the Company Patents, the Company Know-How, Company Materials and Company’s rights in the Program IP.

 

1.24                        “Confidential Information” of a Party means non-public information relating to the business, operations or products of a Party or any of its Affiliates, including any Know-How, that such Party discloses to the other Party under this Agreement, or otherwise becomes known to the other Party by virtue of this Agreement.

 

1.25                        “Controlled” means, with respect to (a) Patent Rights, (b) Know-How or (c) biological, chemical or physical material, that a Party or one of its Affiliates owns or has a license or sublicense to such Patent Rights, Know-How or material (or, in the case of material, has the right to physical possession of such material) and has the ability to grant a license or sublicense to, or assign its right, title and interest in and to, such Patent Rights, Know-How or material as provided for in this Agreement without violating the terms of any agreement or other arrangement with any Third Party.

 

1.26                        “Cover”, “Covering” or “Covered” means, with respect to Product, that the making, using, selling, or offering for sale of Product would, but for a license granted in this Agreement under the Joint Patents and Company Patents, infringe a Valid Claim of the Joint Patents or the Company Patents in the PRC Territory.

 

6

 

1.27                        “Development” or “Develop” means with respect to a Collaboration Compound or Product, the performance of all pre-clinical and clinical development (including, without limitation, toxicology, pharmacology, test method development and stability testing, process development, formulation development, quality control development, and/or statistical analysis), Clinical Trials,  and any other Manufacturing and regulatory activities that are required to obtain Regulatory Approval of Product in the PRC Territory.

 

1.28                        “European Union” or “EU” means the European Union, as it may be reconstituted from time to time.

 

1.29                        “Executive Officers” means, together, a member of the senior management of the pharmaceutical division of Company and the Chief Executive Officer of BeiGene.

 

1.30                        “FDA” means the United States Food and Drug Administration or a successor federal agency thereto.

 

1.31                        “Field” means the diagnosis, treatment, palliation or prevention of all diseases or conditions in humans or animals.

 

1.32                        “First Commercial Sale” means the first transfer or disposition for value of Product in the PRC Territory to a Third Party by BeiGene, or any of its Affiliates or Sublicensees, in each case, after Commercialization Regulatory Approval has been obtained in the PRC Territory.

 

1.33                        “Governmental Body” means any:  (a) nation, principality, state, commonwealth, province, territory, county, municipality, district or other jurisdiction of any nature; (b) federal, state, local, municipal, foreign or other government; (c) governmental or quasi-governmental authority of any nature (including any governmental division, subdivision, department, agency, bureau, branch, office, commission, council, board, instrumentality, officer, official, representative, organization, unit, body or entity and any court or other tribunal); (d) multi-national or supranational organization or body; or (e) individual, entity, or body exercising, or entitled to exercise, any executive, legislative, judicial, administrative, regulatory, police, military or taxing authority or power of any nature.

 

1.34                        “Indication” means a generally acknowledged disease or condition, a significant manifestation of a disease or condition, or symptoms associated with a disease or condition or a risk for a disease

 

7

 

or condition for which MAA may be obtained.  For purposes of clarity, each separate oncology indication will be defined by a combination of the tissue type in which the cancer has its primary origin and the gene or set of genes in which mutations are present.

 

1.35                        “IFRS” means the International Financial Reporting Standards, the set of accounting standards and interpretations and the framework in force on the Effective Date and adopted by the European Union as issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC), as such accounting standards may be amended from time to time.

 

1.36                        “Joint Patents” has the meaning set forth in the Other License Agreement.

 

1.37                        “Joint Know-How” has the meaning set forth in the Other License Agreement.

 

1.38                        “Know-How” means any:  (a) scientific or technical information, results and data of any type whatsoever, in any tangible or intangible form whatsoever, that is not in the public domain or otherwise publicly known, including discoveries, inventions, trade secrets, devices, databases, practices, protocols, regulatory filings, methods, processes (including manufacturing processes, specifications and techniques), techniques, concepts, ideas, specifications, formulations, formulae, data (including pharmacological, biological, chemical, toxicological, clinical and analytical information, quality control, trial and stability data), case reports forms, medical records, data analyses, reports, studies and procedures, designs for experiments and tests and results of experimentation and testing (including results of research or development), summaries and information contained in submissions to and information from ethical committees, or Regulatory Authorities, and manufacturing process and development information, results and data, whether or not patentable, all to the extent not claimed or disclosed in a patent or patent application; and (b) compositions of matter, cells, cell lines, assays, animal models and physical, biological or chemical material, including drug substance samples, intermediates of drug substance samples, drug product samples and intermediates of drug product samples and proprietary equipment, procedures or methodologies relating to the manufacturing of Collaboration Compound or Product.  The fact that an item is known to the public shall not be taken to exclude the possibility that a compilation including the item, and/or a development relating to the item, is (and remains) not known to the public.  “Know-How” includes any rights

 

8

 

including copyright, database or design rights protecting such Know-How.  “Know-How” excludes Patent Rights.

 

1.39                        “Law” or “Laws” means all applicable laws, statutes, rules, regulations, ordinances and other pronouncements having the binding effect of law of any Governmental Body.

 

1.40                        “MAA” means an application for marketing approval equivalent to an NDA submitted in the PRC Territory, and including all additions, deletions or supplements thereto, and as any and all such requirements may be amended, or supplanted, at any time.

 

1.41                        “Manufacture” or “Manufacturing” or “Manufactured” means all operations involved in the manufacture, receipt, incoming inspection, storage and handling of raw materials, and the manufacture, processing, purification, packaging, labeling, warehousing, quality control testing (including in-process release and stability testing), shipping and release of Collaboration Compound and/or Product.

 

1.42                        “NDA” means a New Drug Application submitted pursuant to the requirements of the FDA, as more fully defined in 21 U.S. CFR.§ 314.3 et seq, or a Biologics License Application submitted pursuant to the requirements of the FDA, as more fully defined in 21 U.S. CFR § 601.

 

1.43                        “Net Sales” means [...***...].

 

1.44                        “PARP Inhibitor” means a Collaboration Compound whose primary activity is the inhibition of PARP1, PARP2 or PARP 3 (collectively, the “PARP Family Enzymes”).

 

1.45                        “Patent Rights” means all rights in, to and under: (a) an issued or granted patent, including any extension, supplemental protection certificate, registration, confirmation, reissue, reexamination or renewal thereof; (b) a pending patent application, including any continuation, divisional, continuation-in-part, substitute or provisional application thereof; and (c) all counterparts or foreign equivalents of any of the foregoing issued by or filed in any country or other jurisdiction.

 

1.46                        “Person” means any natural person, corporation, firm, business trust, joint venture, association, organization, company, partnership or other business entity, or any government or agency or political subdivision thereof.

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

9

 

1.47                        “Phase I Clinical Trial” means a Clinical Trial in the PRC Territory that would satisfy the requirements of 21 CFR 312.21(a).

 

1.48                        “Phase II Clinical Trial” means, as to a particular product for any Indication, a Clinical Trial conducted in the PRC Territory that would satisfy the requirements of 21 CFR 312.21(b).

 

1.49                        “Phase III Clinical Trial” means, as to a particular product for any Indication, a Clinical Trial conducted in the PRC Territory that would satisfy the requirements of 21 CFR 312.21(c).

 

1.50                        “Phase IV Clinical Trial” means a post-registrational Clinical Trial conducted in the PRC Territory and required as a condition to, or for the maintenance of, any Regulatory Approval for a Product in the PRC Territory.

 

1.51                        “PRC Territory” means The People’s Republic of China, excluding Hong Kong, Macau and Taiwan.

 

1.52                        “Price Approval” means, in jurisdictions where the approval or determination of pricing and/or pricing reimbursement for pharmaceutical products by a Regulatory Authority is required, such approval or determination.

 

1.53                        “Product” means any pharmaceutical product, in any dosage form, formulation, presentation or package configuration that is commercialized or undergoing research or pre-clinical or clinical Development that contains or comprises, in part or in whole, a Collaboration Compound.  For clarity, different formulations or dosage strengths of a given Product shall be considered the same Product for purposes of this Agreement.

 

1.54                        “Product IP” means any Patent Rights that Cover, or Know-How that is reasonably useful in connection with, the composition of matter and/or use of a Collaboration Compound and/or Product.

 

1.55                        “Program IP” means Joint Patents and Joint Know-How, collectively.

 

1.56                        “Regulatory Authority” means the State Food and Drug Administration in the PRC Territory (“SFDA”) and any other authority granting Regulatory Approvals.

 

10

 

1.57                        “Regulatory Approval” means any and all approvals, licenses, registrations, or authorizations of the relevant Regulatory Authority, including Price Approvals, necessary for the Development, Manufacture, use, storage, import, transport or Commercialization of Product in the PRC Territory.

 

1.58                        “Representatives” means employees, consultants, contractors, advisors and agents of a Party or its Affiliates.

 

1.59                        “Royalty Term” means, on a Product-by-Product basis in the PRC Territory, the period beginning on the date of the First Commercial Sale of a Product in the PRC Territory and ending on the latest to occur of (a) the last date on which the Manufacture, use, import, offer for sale or sale of such Product is Covered by a Valid Claim within the Joint Patents or Company Patents in the PRC Territory or where Product was Manufactured, which, but for the license granted by Company, would be infringed or (b) [...***...] from the date of the First Commercial Sale of such Product in the PRC Territory.

 

1.60                        “Senior Executive” means a member of senior management of a Party who is designated by such Party to resolve disputes under this Agreement.

 

1.61                        “Sublicensee” means a Person other than an Affiliate of BeiGene to which BeiGene (or its Affiliate) has granted sublicense rights under the Company Technology to Product, subject to the PRC ROFN or PRC Commercialization Option; provided, that “Sublicensee” shall exclude distributors.

 

1.62                        “Tax” or “Taxes” means any federal, state, local or foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding, social security, unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not.

 

1.63                        “Territory Expansion Event” means (a) Company’s exercise of the PRC Commercialization Option or (b) if elected by the Parties under an agreement pursuant to the PRC ROFN, the execution of such agreement.

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

11

 

1.64                        “Third Party” means any Person other than BeiGene, Company or any of their respective Affiliates.

 

1.65                        “Third Party Action” means any Action made by a Third Party against either Party that claims that the Collaboration Compound or Product, or its use or Development, Manufacture or sale infringes or misappropriates such Third Party’s intellectual property rights.

 

1.66                        “United States” or “US” means the United States of America, its territories and possessions.

 

1.67                        “USD” or “$” means the lawful currency of the United States.

 

1.68                        “Valid Claim” means a claim of (a) any issued and unexpired patent which claim has not lapsed or been revoked, abandoned or held unenforceable or invalid by a final decision of a court or governmental or supra-governmental agency of competent jurisdiction, unappealable or unappealed within the time allowed for appeal, and which has not been disclaimed, denied or admitted to be invalid or unenforceable through reissue, reexamination or disclaimer or otherwise or (b) any patent application which claim was filed in good faith and which has not been cancelled, withdrawn, abandoned, or disallowed without the possibility of appeal or re-filing of the application and that has not been pending for more than [...***...] from the first substantive office action on such patent application.  If the patent application has been re-filed or is a divisional application, the [...***...] period mentioned above shall be calculated from the first application filed in the series of applications.

 

1.69                        Other Terms.  The definition of each of the following terms is set forth in the section of the Agreement indicated below:

 

	
Defined Term
    	
 
    	
Section
    
	
“Additional Product”
    	
 
    	
1.14
    
	
“Agreement”
    	
 
    	
Preamble
    
	
“Acquirer”
    	
 
    	
9.4
    
	
“BeiGene”
    	
 
    	
Preamble
    
	
“BeiGene Indemnitees”
    	
 
    	
6.1
    

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

12

 

	
Defined Term
    	
 
    	
Section
    
	
“BGB-290”
    	
 
    	
Recitals
    
	
“CoC Notice”
    	
 
    	
9.4
    
	
“Company”
    	
 
    	
Preamble
    
	
“Company Indemnitees”
    	
 
    	
6.2
    
	
“Effective Date”
    	
 
    	
Preamble
    
	
“ICC Rules”
    	
 
    	
8.3
    
	
“Non-Escalable Dispute”
    	
 
    	
8.1
    
	
“PARP”
    	
 
    	
Recitals
    
	
“PARP Family Enzymes”
    	
 
    	
1.13
    
	
“Party” and “Parties”
    	
 
    	
Preamble
    
	
“PRC Commercialization Right”
    	
 
    	
9.4
    
	
“PRC ROFN”
    	
 
    	
2.3
    
	
“Product Bundle”
    	
 
    	
1.42
    
	
“ROFN Period”
    	
 
    	
2.3
    
	
“SFDA”
    	
 
    	
1.48
    
	
“Target”
    	
 
    	
1.11
    
	
“Other License Agreement”
    	
 
    	
Recitals
    
	
“Term”
    	
 
    	
7.1
    
	
“Unrestricted Period”
    	
 
    	
2.3
    
	
“Value Added Tax”
    	
 
    	
3.11(b)
    

 

13

 

ARTICLE 2

GRANT OF RIGHTS

 

2.1                               License Grants.

 

(a)                                 Development License.  Subject to the terms and conditions of this Agreement and the Other License Agreement, Company hereby grants to BeiGene an exclusive (even as to Company), right and license during the Term (with the right to sublicense solely as provided in Section 2.2 below) under the Company Technology for the sole purpose of Development of Collaboration Compounds and Products that are PARP Inhibitors in the Field in the PRC Territory, including without limitation, the Manufacture of Collaboration Compounds and Products for use in Development in the PRC Territory. For clarity, no license is granted under Company Technology to Develop any Additional Product component of any Combination Product.

 

(b)                                 Commercialization License.  Subject to the terms and conditions of this Agreement and the Other License Agreement, Company hereby grants to BeiGene an exclusive (even as to Company), royalty-bearing right and license during the Term (with the right to sublicense solely as provided in Section 2.2 below) under the Company Technology for the sole purpose of (i) Commercializing the Products that are PARP Inhibitors in the Field in the PRC Territory and (ii) Manufacture of Collaboration Compounds and Products that are PARP Inhibitors for use in Commercialization in the Field in the PRC Territory. For clarity, no license is granted under Company Technology to Develop any Additional Product component of any Combination Product.

 

2.2                               Right to Sublicense.

 

(a)                                 Sublicenses.  Subject to compliance with Section 2.3 below and subject to Section 9.3 in the case of Affiliates, BeiGene shall have the right to grant sublicenses to its Affiliates and to Sublicensees under the Development and Commercialization licenses granted to BeiGene under Section 2.1 above, with respect to Products for sale in the Field in the PRC Territory; provided, that, (i) it shall be a condition of any such sublicense that each Sublicensee under the Commercialization license agrees to be bound by the terms of this Agreement applicable to the Commercialization of Products in the Field in the PRC Territory (including, without limitation,

 

14

 

Article 4); (ii) BeiGene shall provide written notice to Company of any such proposed sublicense at least [...***...] prior to such extension and provide copies to Company of each such sublicense within [...***...] of its execution (provided that such copies may be appropriately redacted to protect confidential information of the Sublicensee); (iii) if BeiGene grants a sublicense to a Sublicensee, BeiGene shall be deemed to have guaranteed that such Sublicensee will fulfill all of BeiGene’s obligations under this Agreement applicable to the subject matter of such sublicense; and (iv) BeiGene shall not be relieved of its obligations pursuant to this Agreement as a result of such sublicense.

 

(b)                                 No Other Rights. BeiGene shall have no rights to use or otherwise exploit Company Technology except as expressly set forth herein.

 

2.3                               Right of First Negotiation.

 

(a)                                 Application for 12-5 Status; PRC ROFN.  BeiGene shall apply for national priority project status in the PRC Territory under the twelfth or thirteenth five-year plan of the People’s Republic of China (“12-5 Status”) for its BGB-290 PARP Program.  Provided that the BGB-290 PARP Program receives 12-5 Status within twenty-four (24) months after the Effective Date, then BeiGene shall retain the right to Commercialize Product in the PRC Territory, and Company shall have the first right to negotiate with BeiGene with respect to rights under the Beigene Technology to research, Develop, and Manufacture and Commercialize Collaboration Compound and Product in the PRC Territory as set forth in this Section 2.3 (the “PRC ROFN”).  Prior to BeiGene negotiating with or entertaining offers from a Third Party with respect to any such rights, BeiGene shall first notify Company and shall negotiate solely and in good faith with Company to grant Company a license to Develop, Manufacture and Commercialize Collaboration Compound and Product in the PRC Territory for a period commencing with the date Company receives notice from BeiGene and expiring [...***...] ([...***...]) days thereafter (the “ROFN Period”).  If the Parties are unable to agree on substantive terms within the ROFN Period, Company shall promptly reduce to writing its last offer to BeiGene and provide such writing to BeiGene, and BeiGene shall be free to enter into an agreement with a Third Party for the acquisition of such rights in the PRC Territory by such Third Party, provided that (i) the financial terms of such agreement shall be more favorable to BeiGene in the aggregate by at least [...***...] ([...***...]) of the aggregate of those financial terms last offered by Company and (ii)

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

15

 

such agreement is entered into within the period commencing with the expiration of the ROFN Period and expiring [...***...] thereafter (the “Unrestricted Period”).  BeiGene shall not be permitted to disclose the terms of Company’s offer to any Third Party.

 

(b)                                 If, during the Unrestricted Period, BeiGene does not enter into agreement with a Third Party for such rights on terms that are at least [...***...] ([...***...]) more favorable in the aggregate than those financial terms offered by Company, then the PRC ROFN shall again be in effect and prior to BeiGene negotiating with or entertaining offers from a Third Party to license BeiGene’s rights to the Collaboration Compound and Product in PRC, BeiGene shall notify Company and enter into another ROFN Period and the terms set forth in paragraph (a) above shall apply.

 

(c)                                  By way of illustration, if Company offers BeiGene a royalty to license the Collaboration Compound and Product in the PRC Territory , and BeiGene and Company are unable to agree on substantive terms during the ROFN Period, and during the Unrestricted Period a Third Party offers BeiGene different financial terms to license the Collaboration Compound and Product in the PRC Territory, the aggregate financial terms to BeiGene in such Third Party offer must be more favorable to BeiGene by at least [...***...] ([...***...]) compared to Company’s offer to BeiGene, taking into account the royalty obligation to Company hereunder.

 

2.4                               PRC Commercialization Option.  If the BGB-290 PARP Program does not receive 12-5 Status prior to twenty-four (24) months after the Effective Date, then Company shall have the right to expand its Commercialization rights and license to the PRC Territory (the “PRC Commercialization Option”).  Company may exercise the PRC Commercialization Option at any time after the expiration of the twenty-four (24) month period and prior to [...***...].  In order to exercise the PRC Commercialization Option, Company shall (i) provide written notice of exercise to Beigene and (ii) make payment to BeiGene of Fifty Million U.S. Dollars ($50,000,000.00).   Upon receipt of such notice and payment in full of such payment, it shall be deemed a Territory Expansion Event.  In addition, if [...***...], then Company shall make payment to BeiGene of Twelve Million Five Hundred Thousand U.S. Dollars ($12,500,000.00) within [...***...] after receipt of such Commercialization Regulatory Approval; provided that if such Commercialization Regulatory Approval is received prior to the exercise of the PRC

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

16

 

Commercialization Option, then such payment shall be made upon exercise of the PRC Commercialization Option.

 

ARTICLE 3

FINANCIAL PROVISIONS

 

3.1                               Initial Fee.  In consideration of the already agreed future royalty payments by BeiGene to Company under Section 3.2 hereunder, Company shall pay, or cause to be paid, to BeiGene a one-time, non-refundable fee of $[...***...] USD, within [...***...] following the Effective Date and receipt by Company of corresponding invoice.

 

3.2                               Royalty Payments.  In partial consideration of Company’s grant of the rights and licenses to BeiGene hereunder, BeiGene shall pay to Company a royalty of [...***...] ([...***...]) on aggregate annual Net Sales of all Products in the PRC Territory for each Calendar Year during the Royalty Term.  For clarity, BeiGene’s obligation to pay royalties to Company under this ARTICLE 3 is imposed only once with respect to the same unit of Product.

 

3.3                               Reductions, Deductions and Reimbursements.

 

(a)                                 Royalty Step-Down.  The royalty rate set forth in Section 3.2 applicable to the Net Sales of a Product in the PRC Territory will be reduced by [...***...] ([...***...]) during any period in which there exists no Valid Claim of a Company Patent or Joint Patents in PRC that Covers such Product in the PRC Territory.

 

(b)                                 Third Party License Agreements.  If, in any Calendar Quarter, BeiGene makes royalty payment(s) to one or more Third Parties in order to obtain or maintain license rights under Patent Rights of such Third Party that would be infringed by the use or sale of the Collaboration Compound contained in the Product in the PRC Territory, BeiGene shall be entitled to deduct [...***...] ([...***...]) of such payment(s) from royalty payments otherwise payable by BeiGene to Company for Net Sales of such Product in the PRC Territory in such Calendar Quarter. Notwithstanding the foregoing, in no event shall such deduction exceed [...***...] ([...***...]) of the royalties otherwise payable with respect to the PRC Territory in such Calendar Quarter.

 

(c)                                  Limit on Deductions.  Under no circumstances shall the deductions under this Section 3.3 result in the amount payable to Company being reduced by more than [...***...] ([...***...])

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

17

 

compared with the amount otherwise payable under Section 3.2 in a Calendar Quarter.  In the event that BeiGene is not able to deduct the full amount of the permitted deduction from the amount due to Company due to the [...***...] ([...***...]) minimum amount, BeiGene shall be entitled to deduct any undeducted excess amount from subsequent amounts owed to Company under Section 3.2 (subject always to Company receiving a minimum of [...***...] ([...***...]) of the amount owed) in a subsequent Calendar Quarter.

 

3.4                               Timing of Payment.  Royalties payable under Section 3.2 shall be payable on actual Net Sales and shall accrue at the time the invoice for the sale of Product is delivered.  Royalty obligations that have accrued during a particular Calendar Quarter shall be paid, on a Calendar Quarter basis, within [...***...] after the end of each Calendar Quarter during which the royalty obligation accrued.

 

3.5                               Milestone Payments.  As further consideration for the already agreed future royalty payments by BeiGene to Company under Section 3.2 as well as the design, preparation, conduct and supervision of certain Clinical Trials (as set forth in the table below) , Company shall pay, or cause to be paid, to BeiGene the following one-time, non-refundable milestone payments with respect to the first Product to achieve the milestone events described below.  BeiGene shall promptly (and in any event within [...***...] after achievement of such milestone event) notify Company in writing of the achievement of any such milestone event and BeiGene shall issue Company an invoice for the amount of the corresponding milestone payment, which invoice Company shall pay within [...***...] following receipt of such invoice.

 

	
Milestone event for the First Product to achieve the event
    	
 
    	
Milestone Payment in USD
    	
 
    
	
Upon [...***...]
    	
 
    	
$[...***...]
    	
 
    
	
Upon [...***...]
    	
 
    	
$[...***...]
    	
 
    
	
Upon [...***...]
    	
 
    	
$[...***...]
    	
 
    
	
Upon [...***...]
    	
 
    	
$[...***...]
    	
 
    
	
Upon [...***...]
    	
 
    	
$[...***...]
    	
 
    

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

18

 

	
Upon [...***...]
    	
 
    	
$[...***...]
    	
 
    
	
Upon [...***...]
    	
 
    	
$[...***...]
    	
 
    
	
Total development milestones
    	
 
    	
$[...***...]
    	
 
    

 

For the avoidance of doubt, the total maximum milestones payable under this Section 3.5 for Product shall not exceed $[...***...].  For the avoidance of doubt, the milestones set forth in this Section 3.5 shall continue to apply notwithstanding the occurrence of a Territory Expansion Event.

 

With respect to each milestone, the milestone payments to be made under this Agreement shall be due and payable only once, regardless of the number of Products developed or Commercialized.

 

3.6                               Mode of Payment and Currency; Invoices.

 

(a)                                 Currency.  All payments to a Party hereunder shall be made by deposit of USD in the requisite amount to such bank account as a Party may from time to time designate by written notice to the other Party.  With respect to sales not denominated in USD, BeiGene shall convert applicable sales in foreign currency into USD by using the then current and reasonable standard exchange rate methodology applied to its external reporting.  Based on the resulting sales in USD, the then applicable royalties shall be calculated.  The Parties may vary the method of payment set forth herein at any time upon mutual written agreement, and any change shall be consistent with the local Law at the place of payment or remittance.

 

(b)                                 Invoices.

 

BeiGene shall address its invoices to:

 

Merck KGaA

Accounts Payable

PO Box

64279 Darmstadt

Germany

 

Company shall address its invoices to:

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

19

 

BeiGene LTD.

Mourant Ozannes Corporate Services

9Cayman) Limited

94 Solaris Avenue, PO Box 1348

Grand Cayman KY1-1108

Cayman Islands

GB

 

With a copy to:

 

BeiGene LTD.

c/o BeiGene (Beijing) co., LTD.

No. 30 Science Park Road

Zhong-Guan-Cun Life Science Park

Changping District

Beijing P.R. China

102206

Attn:  [...***...]

 

Facsimile:  [...***...]

 

Telephone:  [...***...]

 

3.7                               Royalty Reports and Records Retention.  Within [...***...] after the end of each Calendar Quarter during which Product has been sold, BeiGene shall deliver to Company, together with the applicable royalty payment due for such Calendar Quarter, a written report of Net Sales on a Product-by-Product basis, subject to royalty payments for such Calendar Quarter.  Such report shall be deemed “Confidential Information” of BeiGene subject to the obligations of ARTICLE 4 of this Agreement.  For [...***...] after the end of each Calendar Year in which sale of Product occurs, BeiGene shall, and shall ensure that its Affiliates and Sublicensees, keep complete and accurate records of such sale in sufficient detail to confirm the accuracy of the royalty calculations hereunder.

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

20

 

3.8                               Legal Restrictions.  If at any time legal restrictions prevent the remittance by BeiGene of all or any part of royalties due on Net Sales, BeiGene shall have the right and option to make such payment either by depositing the amount thereof in local currency to an account in the name of Company in a bank or other depository selected by Company in the PRC Territory.

 

3.9                               Late Payments.  All payments under this Agreement shall earn interest from the date due until paid at a per annum rate equal to the lesser of (a) the maximum rate permissible under Law and (b) [...***...] ([...***...]) above the monthly Reuters 01 EURIBOR, measured at 2 p.m. Frankfurt/Germany time on the date payment is due.  Interest will be calculated on a 365/360 basis.

 

3.10                        Audits.

 

(a)                                 Audits Generally.  During the Term and for [...***...] thereafter, and not more than [...***...] in each Calendar Year, BeiGene shall permit, and shall cause its Affiliates or Sublicensees to permit, an independent certified public accounting firm of nationally recognized standing selected by Company, and reasonably acceptable to BeiGene or such Affiliate or Sublicensee, to have access to and to review, during normal business hours upon reasonable prior written notice, the applicable records of BeiGene and its Affiliates or Sublicensees to verify the accuracy of the royalty reports and payments under this ARTICLE 3.  Such review may cover the records for sales made in any Calendar Year ending not more than [...***...] prior to the date of such request.  The accounting firm shall disclose to Company and BeiGene only whether the royalty reports are correct or incorrect and the specific details concerning any discrepancies.  No other information shall be provided to Company.

 

(b)                                 Audit-Based Payments.  If such accounting firm concludes that additional royalties were owed during such period, BeiGene shall pay the additional undisputed royalties within [...***...] after the date Company delivers to BeiGene such accounting firm’s written report.  If such accounting firm concludes that an overpayment was made, such overpayment shall be fully creditable against amounts payable in subsequent payment periods Company shall pay for the cost of any audit, unless BeiGene has underpaid Company by [...***...] ([...***...]) or more, in which case BeiGene shall pay for the costs of audit.

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

21

 

(c)                                  Audit Confidentiality.  Company shall treat all information that it receives under this Section 3.10 in accordance with the confidentiality provisions of ARTICLE 4 of this Agreement, and shall cause its accounting firm to enter into an acceptable confidentiality agreement with BeiGene obligating such firm to retain all such financial information in confidence pursuant to such confidentiality agreement, except to the extent necessary for Company to enforce its rights under this Agreement.

 

22

 

3.11                        Taxes.

 

(a)                                 Withholding Tax.

 

(i)                                     BeiGene Obligations. If applicable Law requires that income or similar Taxes be deducted and withheld from royalties paid under this Agreement, BeiGene shall (i) deduct those Taxes from the payment of the relevant royalty payment owed by BeiGene hereunder; (ii) pay the Taxes to the proper Governmental Body; (iii) send evidence of the obligation together with proof of Tax payment to Company within [...***...] following such tax payment; (iv) remit the net amount, after deductions or withholding made under this Section 3.11(a)(i); and (v) cooperate with Company in any way reasonably requested by Company to obtain available reductions, credits or refunds of such Taxes.

 

(ii)                                  Company Obligations. Except for payments under Sections 3.1 and 3.5 (which the Parties agree shall be net amounts payable by Company to BeiGene) , if applicable Law requires that income or similar Taxes be deducted and withheld from milestone or other payments paid under this Agreement, other than payments under Sections 3.1 and 3.5, Company shall (i) deduct those Taxes from the payment of the relevant milestone or other payment owed by Company hereunder; (ii) pay the Taxes to the proper Governmental Body; (iii) send evidence of the obligation together with proof of Tax payment to BeiGene within [...***...] following such tax payment; (iv) remit the net amount, after deductions or withholding made under this Section 3.11(a)(i); and (v) cooperate with BeiGene in any way reasonably requested by BeiGene to obtain available reductions, credits or refunds of such Taxes.

 

3.12                        Value Added Tax.  It is understood and agreed between the Parties that any payment amounts to be made by BeiGene or Company under this Agreement are exclusive of any value added or similar Tax (“Value Added Tax”) imposed upon such payment and that Company shall bear the cost of, and be responsible for the payment of, any and all Value Added Tax imposed on account of any payments paid to BeiGene by Company and that BeiGene shall be responsible for the payment of any and all Value Added Tax imposed on account of any payments paid to Company by BeiGene.  Company will provide BeiGene with a proper tax invoice where any Value Added Tax amount is shown separately, if applicable, and BeiGene will provide Company with a proper tax invoice where any Value Added Tax amount is shown separately, if applicable.

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

23

 

ARTICLE 4

CONFIDENTIALITY

 

4.1                               Confidentiality Obligations.  Each Party agrees that, for the Term and for [...***...] thereafter, such Party shall, and shall ensure that its Representatives, hold in confidence all Confidential Information disclosed to it by the other Party pursuant to this Agreement, unless the recipient of the Confidential Information demonstrates by written evidence that such information:

 

(i)                                     is or has become generally available to the public other than as a result of disclosure by the recipient;

 

(ii)                                  is already known by or in the possession of the recipient at the time of disclosure by the disclosing Party;

 

(iii)                               is independently developed by recipient without use of or reference to the disclosing Party’s Confidential Information; or

 

(iv)                              is obtained by recipient from a Third Party that has not breached any obligations of confidentiality.

 

The recipient shall not disclose any of the Confidential Information, except to Representatives of the recipient who need to know the Confidential Information for the purpose of performing the recipient’s obligations, or exercise its rights, under this Agreement and who will, prior to their access to such Confidential Information, be bound by written obligations of non-use and non-disclosure substantially similar to those set forth herein.  Each Party agrees to use, and to cause its Affiliates to use, reasonable efforts to enforce such obligations and to prohibit Representatives from using such Confidential Information except as expressly permitted hereunder.  Each Party shall be liable to the other for any disclosure or use of the Confidential Information by such Representatives.  The recipient shall (i) protect Confidential Information using not less than the same care with which it treats its own confidential information, but at all times shall use at least reasonable care, and (ii) not use, and cause its Affiliates and Representatives not to use, any Confidential Information of the other Party except as expressly permitted hereunder.  Each Party shall: (a) implement and maintain appropriate security measures to prevent unauthorized access to, or disclosure of, the other Party’s Confidential Information; (b) promptly notify the other Party of any unauthorized access or disclosure of such other Party’s Confidential Information; and (c)

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

24

 

cooperate with such other Party in the investigation and remediation of any such unauthorized access or disclosure.

 

4.2                               Use.  Notwithstanding Section 4.1, a Party may use the Confidential Information of the other Party for the purpose of performing its obligations, or exercising its rights, under this Agreement, including for purposes of:

 

(i)                                     filing or prosecuting patent applications;

 

(ii)                                  prosecuting or defending litigation;

 

(iii)                               conducting pre-clinical studies or Clinical Trials pursuant to this Agreement;

 

(iv)                              seeking or maintaining Regulatory Approval for Product;

 

(v)                                 complying with Law, including securities Law and the rules of any securities exchange or market on which a Party’s securities are listed or traded

 

(vi)                              disclosure to such other Party’s legal and financial advisors;

 

(vii)                           in connection with an actual or potential (a) permitted sublicense of such other Party’s rights hereunder, (b) debt, equity or other financing of such other Party, or (c) merger, acquisition, consolidation, share exchange or other similar transaction involving such Party and any Third Party; or

 

(viii)                        for any other purpose with the other Party’s written consent, not to be unreasonably withheld.

 

In making any disclosures set forth in clauses (i) through (iv) above, the disclosing Party shall, where reasonably practicable, give such advance notice to the other Party of such disclosure requirement as is reasonable under the circumstances and will use its reasonable efforts to cooperate with the other Party in order to secure confidential treatment of such Confidential Information required to be disclosed.  In addition, in connection with any permitted filing by either Party of this Agreement with any Governmental Body, the filing Party shall endeavor to obtain confidential treatment of economic, trade secret information and such other information as may be requested by the other Party, and shall provide the other Party with the proposed

 

25

 

confidential treatment request with reasonable time for such other Party to provide comments, and shall include in such confidential treatment request all reasonable comments of the other Party.

 

4.3                               Publication.  BeiGene may publish in the PRC Territory any information relating to the Collaboration Compound or Product that does not constitute Confidential Information of Company, without the prior written consent of Company.

 

4.4                               Required Disclosure.  The recipient may disclose the Confidential Information to the extent required by Law or court order; provided, however, that the recipient promptly provides to the disclosing party prior written notice of such disclosure and provides reasonable assistance in obtaining an order or other remedy protecting the Confidential Information from public disclosure.

 

4.5                               Press Releases and Disclosure.

 

(a)                                 Initial Press Release.  The proposed public announcement by the Parties of the execution of this Agreement is set forth on Schedule 4.5(a) hereto.

 

(b)                                 Subsequent Public Disclosures by BeiGene.  BeiGene may not make any subsequent press release or public announcements regarding this Agreement or any matter covered by this Agreement, other than the Development and Commercialization of Product by BeiGene in the PRC Territory, and the achievement of milestones and receipt of milestone payments hereunder, without the prior written consent of Company.  In the event that BeiGene believes it is required to issue a press release or make another public announcement to comply with Law as a publicly-traded company and Company does not believe such public announcement is so required, BeiGene may only issue such press release if (i) it obtains an opinion of legal counsel, from a reputable law firm approved by Company, that it is required to make such disclosure to comply with Law and (ii) after receiving such opinion, provides the text of such planned disclosure to Company no less than [...***...] prior to disclosure, and has incorporated all reasonable comments of Company regarding such disclosure.

 

(c)                                  Public Disclosures by Company.  Company shall have the right to make such press releases as it chooses, in its sole discretion, without the approval of BeiGene, provided that such press releases do not contain Confidential Information of BeiGene.

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

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(d)                                 Prior Approved Publication.  Notwithstanding Section 4.4 or this Section 4.5 either Party may include in a public disclosure, press release or in a scientific or medical publication or presentation, without prior delivery to or review by the other Party, any information which has previously been included in a public disclosure, press release or scientific or medical publication that has been reviewed pursuant to Section 4.4 or this Section 4.5 or published or publicly disclosed by the other Party.

 

ARTICLE 5

WARRANTIES AND COVENANTS

 

5.1                               Warranties.  Each Party warrants to the other Party that, as of the Effective Date:

 

(i)                                     such Party is duly organized and validly existing under the Laws of the jurisdiction of its incorporation or organization;

 

(ii)                                  such Party has taken all corporate action necessary to authorize the execution and delivery of this Agreement and the performance of its obligations under this Agreement;

 

(iii)                               this Agreement is a legal and valid obligation of such Party, binding upon such Party and enforceable against such Party in accordance with the terms of this Agreement, except as enforcement may be limited by applicable bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium and other laws relating to or affecting creditors’ rights generally and by general equitable principles.  The execution, delivery and performance of this Agreement by such Party does not conflict with, breach or create in any Third Party the right to accelerate, terminate or modify any agreement or instrument to which such Party is a party or by which such Party is bound, and does not violate any Law of any Governmental Body having authority over such Party; and

 

(iv)                              such Party has all right, power and authority to enter into this Agreement, to perform its obligations under this Agreement.

 

5.2                               Additional Warranties and Covenants of BeiGene.  BeiGene warrants to Company that, as of the Effective Date:

 

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(a)                                 this Agreement is not, and BeiGene commits to Company that this Agreement never will be, in conflict with any existing or future agreement entered into between BeiGene and any of its Affiliates;   and

 

(b)                                 no consent by any Third Party or Governmental Body is required with respect to the execution and delivery of this Agreement by BeiGene or the consummation by BeiGene of the transactions contemplated hereby.

 

BeiGene covenants to Company that, to the extent required by Law, BeiGene shall file this Agreement with Governmental Bodies in the PRC Territory and use commercially reasonable efforts to obtain all required documentation, including a filing certificate, to make payments to Company hereunder.

 

ARTICLE 6

INDEMNIFICATION AND INSURANCE

 

6.1                               Indemnification by Company.  Company shall indemnify, defend and hold BeiGene and its Affiliates and each of their respective employees, officers, directors and agents and their respective heirs, successors and assigns (the “BeiGene Indemnitees”) harmless from and against any and all liability, damage, loss, cost or expense (including reasonable attorneys’ fees and expenses of litigation) to the extent arising out of Third Party claims, actions, demands, suits or judgments related to: (a) Company’s negligence or willful misconduct; (b) Company’s performance of its obligations under this Agreement; (c) willful breach by Company of its representations or warranties set forth in ARTICLE 5, or, (d) in the event that the Parties enter into a license agreement pursuant to Company’s exercise of the PRC ROFN or otherwise, or in the event of exercise of the PRC Commercialization Option, Commercialization (including, without limitation, the use by any Person) of any Product by Company or any of its Affiliates, Sublicensees, distributors or agents in the PRC Territory; provided, however, that Company’s obligations pursuant to this Section 6.1 shall not apply (i) to the extent such claims or suits result from the negligence or willful misconduct of any of the BeiGene Indemnitees, or (ii) with respect to claims or suits arising out of breach by BeiGene of its warranties or covenants set forth in ARTICLE 5.

 

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6.2                               Indemnification by BeiGene.  BeiGene shall indemnify, defend and hold Company and its Affiliates and each of their respective agents, employees, officers and directors and their respective heirs, successors and assigns (“Company Indemnitees”) harmless from and against any and all liability, damage, loss, cost or expense (including reasonable attorney’s fees and expenses of litigation) to the extent arising out of Third Party claims, actions, demands,  suits or judgments related to:  (a) BeiGene’s negligence or willful misconduct; (b) BeiGene’s performance of its obligations under this Agreement; (c) BeiGene’s or its Affiliate’s activities in the PRC Territory with respect to the Collaboration Compound and Product; or (d) willful breach by BeiGene of its representations, warranties or covenants set forth in ARTICLE 5; provided, however, that BeiGene’s obligations pursuant to this Section 6.2 shall not apply (i) to the extent that such claims or suits result from the negligence or willful misconduct of any of Company Indemnitees or (ii) with respect to claims or suits arising out of a breach by Company of its warranties set forth in ARTICLE 5.

 

6.3                               Certain Liabilities.  NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, NEITHER PARTY’S LIABILITY IS LIMITED WITH RESPECT TO (i) DEATH OR PERSONAL INJURY DUE TO NEGLIGENCE (AS NEGLIGENCE IS DEFINED IN THE UNFAIR CONTRACTS ACT 1977 OF ENGLAND AND WALES) or (ii) FRAUD.

 

6.4                               No Consequential Damages.  EXCEPT WITH RESPECT TO EACH PARTY’S INDEMNIFICATION OBLIGATIONS UNDER SECTION 6.1 OR SECTION 6.2 FOR PAYMENTS TO THIRD PARTIES, AS APPLICABLE, AND SUBJECT ALWAYS TO SECTION 6.3 (CERTAIN LIABILITIES), TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL EITHER PARTY OR ANY OF ITS AFFILIATES BE LIABLE TO THE OTHER PARTY OR ANY OF ITS AFFILIATES FOR SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING LOSS OF PROFITS, WHETHER IN CONTRACT, WARRANTY, TORT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREIN OR ANY BREACH HEREOF.  NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS AGREEMENT SHALL LIMIT EITHER PARTY FROM SEEKING OR COMPANY FROM SEEKING OR OBTAINING ANY REMEDY AVAILABLE UNDER LAW FOR ANY

 

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BREACH OF BY THE OTHER PARTY OF ITS CONFIDENTIALITY AND NON-USE OBLIGATIONS UNDER ARTICLE 4.

 

6.5                               Notification of Claims; Conditions to Indemnification Obligations.  As a condition to a Party’s right to receive indemnification under this ARTICLE 6, it shall: (a) promptly notify the other Party as soon as it becomes aware of a claim or suit for which indemnification may be sought pursuant hereto; (b) cooperate, and cause the individual indemnitees to cooperate, with the indemnifying Party in the defense, settlement or compromise of such claim or suit; and (c) permit the indemnifying Party to control the defense, settlement or compromise of such claim or suit, including the right to select defense counsel.  In no event, however, may the indemnifying Party compromise or settle any claim or suit in a manner which admits fault or negligence on the part of the indemnified Party or any indemnitee without the prior written consent of the indemnified Party.  Each Party shall reasonably cooperate with the other Party and its counsel in the course of the defense of any such suit, claim or demand, such cooperation to include without limitation using reasonable efforts to provide or make available documents, information and witnesses.  The indemnifying Party shall have no liability under this ARTICLE 6 with respect to claims or suits settled or compromised without its prior written consent.

 

6.6                               Insurance.  During the Term, each Party shall obtain and maintain, at its sole cost and expense, insurance (including any self-insured arrangements) in types and amounts that are reasonable and customary in the pharmaceutical and biotechnology industry for companies engaged in comparable activities.  It is understood and agreed that this insurance shall not be construed to limit either Party’s liability with respect to its indemnification obligations hereunder.  Each Party will, except to the extent self insured, provide to the other Party upon request a certificate evidencing the insurance such Party is required to obtain and keep in force under this Section 6.

 

ARTICLE 7

TERM AND TERMINATION

 

7.1                               Term and Expiration.  The term of this Agreement (the “Term”) shall commence on the Effective Date and, unless earlier terminated as provided in this ARTICLE 7, shall continue in full force and effect.

 

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7.2                               Termination.

 

(a)                                 Termination for Convenience.  At any time during the Term, Company may, at its convenience, terminate this Agreement in its entirety with ninety (90) days’ prior written notice to BeiGene.

 

(b)                                 Termination by Mutual Agreement.  The Parties may terminate this Agreement at any time by mutual agreement in a writing executed between the Parties.

 

(c)                                  Termination on Bankruptcy or Insolvency.  The Parties agree that, in the event of a BeiGene Bankruptcy Event, Company shall be entitled to a complete duplicate of (or complete access to, as appropriate) any BeiGene Technology and all embodiments thereof, which, if not already in Company’s possession, shall be promptly delivered to it (a) following any such commencement of a bankruptcy proceeding upon Company’s written request therefor, unless BeiGene elects to continue to perform all of its obligations under this Agreement or (b) if not delivered under clause (a), following the rejection of this Agreement by BeiGene upon written request therefor by Company.

 

(d)                                 Material Breach.  If a Party breaches any of its material obligations under this Agreement, the Party not in default may give to the breaching Party a written notice specifying the nature of the default, requiring it to cure such breach, and stating its intention to terminate this Agreement if such breach is not cured within sixty (60) days.  If such breach is not cured within sixty (60) days after the receipt of such notice and such breach remains uncured, the Party not in default shall be entitled to terminate this Agreement immediately by written notice to the other Party.  Any dispute regarding an alleged material breach, including, but not limited to, whether an alleged material breach of this Agreement occurred or whether an alleged breach of this Agreement is material, shall be resolved in accordance with ARTICLE 8 hereof.

 

(e)                                  BeiGene Right to Terminate.

 

(i)                                     Except to the extent the following is unenforceable under the law of a particular jurisdiction where a patent application with BeiGene Patents is pending or a patent within the BeiGene Patents is issued, prior to and during the ROFN Period, BeiGene may terminate this Agreement immediately upon written notice to Company in the event that Company or any of its Affiliates or Sublicensees Challenges any BeiGene Patents or assists a Third Party in initiating a Challenge of any BeiGene Patents.

 

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(ii)                                  BeiGene shall have the right to terminate this Agreement if BeiGene terminates the Other License Agreement pursuant to Section 11.4 (Termination Upon Material Breach) thereof. If BeiGene exercises such termination right, this Agreement will terminate upon the date of termination of the Other License Agreement. For the avoidance of doubt, unless Licensor exercises the foregoing right, termination of the Other License Agreement shall not affect Company’s rights (including the PRC ROFN and the PRC Commercialization Option) and obligations (including milestones payments) under this Agreement.

 

7.3                               Effects of Expiration or Termination.

 

(a)                                 Survival.  Notwithstanding the expiration or termination of this Agreement, the following provisions shall survive:  Articles 1 (Definitions), Article 4 (Confidentiality)(other than Section 4.5(b)(Subsequent Public Disclosures), and with respect to the other remaining sections only for the period set forth in Section 4.1), Article 8 (Dispute Resolution), and Article 9 (Miscellaneous Provisions) (other than Section 9.4 (Change of Control)); and Sections 3.6 (Mode of Payment and Currency; Invoices), 3.7 (Royalty Reports and Records Retention (but only for the period set forth therein), 3.8 (Legal Restrictions), 3.9 (Late Payments), 3.10 (Audits) (but only for the period set forth in Section 3.10(a)), 3.11 (Taxes), and 7.3 (Effects or expiration or termination) (including all other Sections or Articles referenced in any such Section or Article).

 

(b)                                 Accrued liabilities.  Expiration or termination of this Agreement shall not relieve the Parties of any liability that accrued hereunder prior to the effective date of such termination.  For purposes of this Section, the obligation to pay a milestone payment pursuant to Section 3.5 shall accrue as of the date the relevant milestone is achieved.  In addition, termination of this Agreement shall not preclude either Party from pursuing all rights and remedies it may have hereunder or at Law or in equity with respect to any breach of this Agreement nor prejudice either Party’s right to obtain performance of any obligation.

 

(c)                                  Milestone Payments.  Company’s obligation to pay milestone payments pursuant to Section 3.5, shall survive any termination of this Agreement unless the Other License Agreement has been terminated, provided that any milestone payment pursuant to Section 3.5 shall be reduced by [...***...] ([...***...]).

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

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ARTICLE 8

DISPUTE RESOLUTION

 

8.1                               Disputes.  The Parties recognize that disputes as to certain matters may from time to time arise during the Term which relate to either Party’s rights and/or obligations hereunder.  It is the objective of the Parties to establish under this ARTICLE 8 procedures to facilitate the resolution of disputes arising under this Agreement (other than any disputes relating to matters for which under the Other License Agreement Company or BeiGene has sole decision-making authority and/or discretion (each, a “Non-Escalable Dispute”), in which case, such matter shall be determined by Company or BeiGene, as the case may be, as set forth in the Other License Agreement and shall not be part of the dispute resolution procedure set forth in this ARTICLE 8) in an expedient manner by mutual cooperation and without resort to litigation.  In the event that the Parties are unable to resolve such dispute through diligent review and deliberation by the Senior Executives within thirty (30) days from the day that one Party had designated the issue as a dispute in written notice to the other Party, then either Party shall have the right to escalate such matter to the Executive Officers as set forth in Section 8.2.

 

8.2                               Escalation to Executive Officers.  Either Party may, by written notice to the other Party, request that a dispute (other than a Non-Escalable Dispute) that remains unresolved by the Senior Executives for a period of thirty (30) days as set forth in Section 8.1 arising between the Parties in connection with this Agreement, or a dispute relating to material breach, be resolved by the Executive Officers, within fifteen (15) days after referral of such dispute to them.  If the Executive Officers cannot resolve such dispute within fifteen (15) days after referral of such dispute to them, then, at any time after such fifteen (15) day period, either Party may proceed to enforce any and all of its rights with respect to such dispute.

 

8.3                               Arbitration.  If the Parties are unable to resolve the dispute following the procedure set forth in Section 8.2, then the dispute for arbitration shall be submitted in London, England in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce (the “ICC Rules”) then in effect.  Notwithstanding the foregoing, in all events, the provisions contained herein shall govern over any conflicting rules which may now or hereafter be contained in the ICC Rules.  Any judgment upon the award rendered by the panel of the arbitrators shall be entered in any court having jurisdiction over the subject matter thereof.  The panel of the

 

33

 

arbitrators shall have the authority to grant any equitable and legal remedies that would be available if any judicial proceeding was instituted to resolve said dispute.  The final decision of such panel of the arbitrators, as entered by a court of competent jurisdiction, will be furnished by such panel of the arbitrator in writing and will constitute a final, conclusive and non-appealable determination of the issue in question, binding upon the Parties, and an order with respect thereto may be entered in any court of competent jurisdiction.  Except as set forth in Section 8.4, the following procedures shall apply:

 

(a)                                 Each Party shall select one person to act as arbitrator and the two Party-selected arbitrators shall select a third arbitrator within ten (10) days of their appointment.  If the arbitrators selected by the Parties are unable or fail to agree upon the third arbitrator, the third arbitrator shall be appointed by the ICC.

 

(b)                                 No arbitrator shall have any past or present family, business or other relationship with the Parties or any Affiliate, director or officer thereof, unless following full disclosure of all such relationships, the Parties agree in writing to waive such requirement with respect to an individual in connection with any dispute.

 

(c)                                  No discovery other than an exchange of relevant documents may occur in any arbitration commenced under the provisions of this ARTICLE 8.  The Parties agree to act in good faith to promptly exchange relevant documents.

 

(d)                                 The Parties will each pay fifty percent (50%) of the initial compensation to be paid to the arbitrator in any such arbitration and fifty percent (50%) of the costs of transcripts and other normal and regular expenses of the arbitration proceedings; provided, however, that: (i) the prevailing Party in any arbitration will be entitled to an award of attorneys’ fees and costs; and (ii) all costs of arbitration, other than those provided for above, will be paid by the losing Party, and the arbitrator will be authorized to determine the identity of the prevailing Party and the losing Party.

 

(e)                                  The panel of the arbitrators chosen in accordance with these provisions will not have the power to alter, amend or otherwise affect the terms of these arbitration provisions or any other provisions contained in this Agreement.

 

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8.4                               Injunctive Relief.  No provision herein shall be construed as precluding a Party from bringing an action for injunctive relief or other equitable relief prior to the initiation or completion of the above procedure.

 

ARTICLE 9

MISCELLANEOUS PROVISIONS

 

9.1                               Relationship of the Parties.  Nothing in this Agreement shall be construed or shall be deemed, for financial, tax, legal or other purposes (a) to create or imply a general partnership between the Parties, (b) to make either Party the agent of the other for any purpose, (c) to alter, amend, supersede or vitiate any other arrangements between the Parties with respect to any subject matters not covered hereunder, (d) to give either Party the right to bind the other, (e) to create any duties or obligations between the Parties except as expressly set forth herein, or (f) to grant any direct or implied licenses or any other right other than as expressly set forth herein.

 

9.2                               Assignment.

 

(a)                                 Assignment and Successors.  Neither this Agreement nor any obligation of a Party hereunder may be assigned by either Party without the consent of the other which shall not be unreasonably withheld, except that each Party may assign this Agreement and the rights, obligations and interests of such Party, (i) in whole or in part, to any of its Affiliates, or (ii) in whole, but not in part, to any purchaser of all of its assets or all of its assets to which this Agreement relates or shares representing a majority of its common stock voting rights or to any successor corporation resulting from any merger, consolidation, share exchange or other similar transaction.

 

(b)                                 Continuing Obligations.  No assignment under this Section 9.2 shall relieve the assigning Party of any of its responsibilities or obligations hereunder accruing prior to such assignment and, as a condition of such assignment, the assignee shall agree in writing to be bound by all obligations of the assigning Party hereunder.  This Agreement shall be binding upon the successors and permitted assigns of the Parties.

 

(c)                                  Void Assignments.  Any assignment not in accordance with this Section 9.2 shall be void.

 

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(d)                                 Assignment of BeiGene Technology.  BeiGene shall not assign or transfer any BeiGene Technology to any of its Affiliates or any Third Party without the prior written consent of Company, unless the assignee agrees in writing that such BeiGene Technology shall be subject to this Agreement.

 

9.3                               Performance and Exercise by Affiliates.  Either Party shall have the right to have any of its obligations hereunder performed, or its rights hereunder exercised, by, any of its Affiliates and the performance of such obligations by any such Affiliate shall be deemed to be performance by such Party; provided, however, that each Party shall be responsible for ensuring the performance of its obligations under this Agreement and that any failure of any Affiliate performing obligations of such Party hereunder shall be deemed to be a failure by such Party to perform such obligations.  For clarity, either Party may designate an Affiliate to perform any of its obligations hereunder or to exercise any of its rights hereunder.

 

9.4                               Change of Control.  In the event BeiGene undergoes a Change of Control, and the Other License Agreement has not expired or been terminated at the time of the Change of Control, Company shall have a right to obtain a license under BeiGene Technology to research, Develop, Manufacture and Commercialize Products in the Field in the PRC Territory (the “PRC Commercialization Right”) as set forth below.  BeiGene (or the Acquirer)  shall notify Company in writing of the occurrence of a Change of Control ( the “CoC Notice”), identifying the party that has obtained control of BeiGene or become the successor entity to BeiGene resulting from the transaction constituting the Change of Control (the “Acquirer”).  The word “Party” below shall refer to the Acquirer.

 

9.4.1                     Terms of PRC Commercialization Right.  The PRC Commercialization Right shall (i) be on the terms set forth in the Other License Agreement as if the PRC Territory was included in the “Company Territory” as defined therein, except for Sections 6.1, 6.2, 6.3, 6.4, and 6.5 thereof, (ii) require the payment of milestone payments as set forth in Section 3.5 of this Agreement, and (iii) be on other economic terms including any or all of an initial payment, additional milestone payments, royalties and other economic provisions either (a) agreed in good faith negotiations between the Parties not to exceed a period of more than [...***...] of receipt by Company of the CoC Notice, or (b) in the case no agreement is

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

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reached in that [...***...] negotiation period, be determined by binding arbitration as set forth below.

 

9.4.2                     Arbitration.  If no agreement is reached in the [...***...] negotiation period described in Section 9.4.1 above, then upon the written application of either Party, binding arbitration shall be conducted before a single arbitrator in London, England in accordance with ICC Rules then in effect.  Notwithstanding the foregoing, in all events, the provisions contained herein shall govern over any conflicting rules which may now or hereafter be contained in the ICC Rules.  The arbitrator shall be selected by agreement of the Parties, shall have no affiliation with either Party, shall not have been retained for any purpose by either Party at any time and shall have substantial experience in the development and licensing of oncology pharmaceutical products.  If the Parties fail to choose an arbitrator within fourteen (14) days after the application of either Party to the ICC for binding arbitration,  the London office of the International Chamber of Commerce shall, upon the request of both or either of the Parties to the arbitration, appoint the arbitrator.

 

9.4.3                     Exchange of Proposals.  Within ten (10) days of the appointment of the arbitrator, the Parties shall exchange documents setting forth their final detailed proposals for the acquisition of the PRC Commercialization Rights by Company on terms that comply with Section 9.4.1 and represent the fair value of the PRC Commercialization Rights, including any or all of an initial payment, additional milestone payments, royalties and other economic provisions, together with a brief or other written memorandum no longer than ten (10) pages supporting the merits of their final proposal.  The arbitrator shall promptly convene a hearing, at which time each Party shall have a period of time determined by the arbitrator time to argue and present witnesses in support of its final proposal.

 

9.4.4                     Selection of Final Proposal.  The arbitrator shall select the proposal which most closely reflects fair value of the PRC Commercialization Rights.  In making his or her selection, the arbitrator shall not modify the terms or conditions of either Party’s final proposal nor shall the arbitrator combine provisions from both final

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

37

 

proposals.  In making his or her selection, the arbitrator shall consider the terms and conditions of this Agreement, the relative merits of the final proposals, the prior investments made by the Company into the Collaboration Compound and Product and the written and oral arguments of the Parties.  In the event the arbitrator seeks the guidance of the law of any jurisdiction, the law of the England and Wales shall govern.

 

9.4.5                     Notification of Decision.  The arbitrator shall make his or her decision known to both Parties as quickly as possible by delivering written notice of the decision to both Parties.  If the arbitrator selects the Company’s proposal, then the Company and BeiGene (or the Acquirer) shall enter into an agreement for the PRC Commercialization Right on the terms set forth in Section 9.4.1 and the terms of the Company’s proposal.  If the arbitrator selects BeiGene’s (or the Acquirer’s)  proposal, then at the Company’s option either (i) the Company and BeiGene (or the Acquirer) shall enter into an agreement for the PRC Commercialization Right on the terms set forth in Section 9.4.1 and the terms of the BeiGene’s (or the Acquirer’s) proposal, or (ii) the Company shall have no further right to obtain the PRC Commercialization Right and this Agreement shall continue without modification, except that the royalty rate in Section 3.2 shall increase to [...***...] ([...***...]).

 

9.4.6                     Costs.  The Parties shall bear their own costs in preparing for the arbitration.  The costs of the arbitrator shall be equally divided between the Parties.

 

9.5                               Further Actions.  Each Party agrees to execute, acknowledge and deliver such further instruments and to do all such other acts as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

9.6                               Accounting Procedures.  Each Party shall calculate all amounts, and perform other accounting procedures required, under this Agreement and applicable to it in accordance with the accounting principles and standards applicable to it (for example IFRS or GAAP).

 

9.7                               Force Majeure.  Neither Party shall be liable to the other Party or be deemed to have breached or defaulted under this Agreement for failure or delay in the performance of any of its obligations

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

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under this Agreement for the time and to the extent such failure or delay is caused by or results from acts of God, earthquake, riot, civil commotion, terrorism, war, strikes or other labor disputes, fire, flood, failure or delay of transportation, omissions or delays in acting by a governmental authority, acts of a government or an agency thereof or judicial orders or decrees or restrictions or any other reason which is beyond the reasonable control of the respective Party.  The Party affected by force majeure shall provide the other Party with full particulars thereof as soon as it becomes aware of the same (including its best estimate of the likely extent and duration of the interference with its activities), and will use Commercially Reasonable Efforts to overcome the difficulties created thereby and to resume performance of its obligations hereunder as soon as practicable.

 

9.8                               No Trademark Rights.  No right, express or implied, is granted by this Agreement to a Party to use in any manner the name or any other trade name or trademark of the other Party in connection with the performance of this Agreement or otherwise.

 

9.9                               Entire Agreement of the Parties; Amendments.  This Agreement and the Schedules hereto and the Other License Agreement constitute and contain the entire understanding and agreement of the Parties respecting the subject matter hereof and cancel and supersede any and all prior negotiations, correspondence, understandings and agreements between the Parties, whether oral or written, regarding such subject matter.  No waiver, modification or amendment of any provision of this Agreement shall be valid or effective unless made in a writing referencing this Agreement and signed by a duly authorized officer of each Party.

 

9.10                        Captions.  The captions to this Agreement are for convenience only, and are to be of no force or effect in construing or interpreting any of the provisions of this Agreement.

 

9.11                        Governing Law.  This Agreement shall be governed by and interpreted in accordance with the laws of England and Wales, excluding application of any conflict of laws principles that would require application of the Law of a jurisdiction outside of England and Wales, and will be subject to the exclusive jurisdiction of the courts of competent jurisdiction located in London, England.

 

9.12                        Notices and Deliveries.  Any notice, request, approval or consent required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been sufficiently given if delivered in person, transmitted by facsimile (receipt verified) or by express courier

 

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service (signature required) to the Party to which it is directed at its address or facsimile number shown below or such other address or facsimile number as such Party shall have last given by notice to the other Party.

 

If to Company, addressed to:

 

Name:                                                           MERCK KGaA

Street:                                                             Frankfurter Str. 250

City:                                                                     D-64293 Darmstadt

Country:                                               Germany

Attn:                                                                    Head of Alliance Management

Facsimile:                                         [...***...]

 

With a copy, which shall not constitute notice, to:

 

Name:                                                           MERCK KGaA

Street:                                                             Frankfurter Str. 250

City:                                                                     D-64293 Darmstadt

Country:                                               Germany

Attn:                                                                    Legal

Facsimile:                                         [...***...]

 

If to BeiGene, addressed to:

 

Name:                                                           BeiGene, LTD.

c/o Mourant Ozannes Corporate Services

Street:                                                             (Cayman) Limited

94 Solaris Avenue, PO Box 1348

City:                                                                     Grand Cayman KY1-1108

Country:                                               Cayman Islands

GB

Attn:                                                                    Chief Executive Officer

 

With a copy, which shall not constitute notice, to:

 

Name:                                                           BeiGene LTD.

c/o BeiGene (Beijing) Co., Ltd

Street:                                                             No.30 Science Park Road

Zhong-Guan-Cun Life Science Park

Changping District

City:                                                                     Beijing

Country:                                               P.R.China

102206

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

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Attn:                                                                    [...***...]

Facsimile:                                        [...***...]

Telephone:                                   [...***...]

 

With a copy, which shall not constitute notice, to:

 

Mintz, Levin, Cohn, Ferris, Glovsky

and Popeo, P.C.

One Financial Center

Boston, Massachusetts  02111

Attention:  [...***...]

Tel:  [...***...]

Fax:  [...***...]

 

9.13                        Language.  The official language of this Agreement and between the Parties for all correspondence shall be the English language.

 

9.14                        Waiver.  A waiver by either Party of any of the terms and conditions of this Agreement in any instance shall apply only to the specific instance and shall not be deemed or construed to be an ongoing or future waiver of such term or condition, or of any other term or condition hereof.  All rights, remedies, undertakings, obligations and agreements contained in this Agreement shall be cumulative and none of them shall be in limitation of any other remedy, right, undertaking, obligation or agreement of either Party.

 

9.15                        Severability.  When possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under Law, but if any provision of this Agreement is held to be prohibited by or invalid under Law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement.  The Parties shall make a good faith effort to replace the invalid or unenforceable provision with a valid one which in its economic effect is most consistent with the invalid or unenforceable provision.

 

9.16                        No Implied License.  No right or license is granted to either Party hereunder by implication, estoppel, or otherwise to any know-how, patent or other intellectual property right owned or controlled by either Party or its Affiliates.

 

9.17                        Interpretation.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  All references herein to Articles, Sections, and Schedules shall be deemed references to Articles and Sections of, and Schedules to, this Agreement unless

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

41

 

the context shall otherwise require.  Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with IFRS, as in effect from time to time.  Unless the context otherwise requires, countries shall include territories.

 

9.18                        Counterparts.  This Agreement may be executed in counterparts, each of which will be deemed an original, and all of which together will be deemed to be one and the same instrument.  A facsimile or a portable document format (PDF) copy of this Agreement, including the signature pages, will be deemed an original.

 

9.19                        No Third Party Beneficiaries.  Except as set forth in Sections 9.1 and 9.2, no Third Party (including, without limitation, employees of either Party) shall have or acquire any rights under this Agreement under the Contracts (Rights of Third Parties) Act 1999 of England and Wales or otherwise.

 

9.20                        No Reliance.  Each Party acknowledges that, in entering into this Agreement (and any document referred to in it), it has not relied on, and shall have no right or remedy in respect of, any statement, representation, assurance or warranty (whether made negligently or innocently) other than as expressly set out in this agreement.  Nothing herein shall limit a Party’s liability for fraud or fraudulent misrepresentation.

 

[SIGNATURE PAGE FOLLOWS]

 

42

 

IN WITNESS WHEREOF, duly authorized representatives of the parties have executed this Agreement as of the date first above written.

 

 

	
BEIGENE, LTD.
    	
 
    	
MERCK KGAA
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ John V. Oyler
    	
 
    	
Signature:
    	
/s/ Stefan Oschmann
    
	
 
    	
 
    	
 
    	
 
    
	
Printed Name:
    	
John V. Oyler
    	
 
    	
Printed   Name: Dr. Stefan Oschmann
    
	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
CEO 
    	
 
    	
Title: General Partner and Member   of the Executive Board, Merck KGaA
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ppa.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Signature:
    	
/s/ Jens Eckhardt
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Printed Name: Jens Eckhardt
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title: Regional General Counsel
    
							

 

 

Schedule 1.5

 

BeiGene Know-How

 

[...***... (10 pages omitted)]

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

1

 

Schedule 1.6

 

BeiGene Material:

 

[...***... (16 pages omitted)]

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

11

 

Schedule 1.7

 

BeiGene Patents:

 

[...***...]

 

*Confidential Information, indicated by [...***...], has been omitted from this filing and filed separately with the Securities and Exchange Commission.

 

27

 

Schedule 4.5(a)

 

Initial Press Release

 

(please see following pages)

 

28

 

 

 

 

 

 

 

 

 

AMENDMENT NO. 1 TO LICENSE AGREEMENT

 

This Amendment No. 1 to License Agreement (this “Amendment”), effective as of May 8th, 2015 (the “Amendment Effective Date”), is by and between BeiGene, LTD, a corporation organized under the laws of the Cayman Islands having an address of c/o Mourant Ozannes Corporate Services, (Cayman) Limited, 94 Solaris Avenue, PO Box 1348, Grand Cayman KYI-1108, Cayman Islands GB (“Licensor”), and Merck KGaA, a corporation with general partners organized under German law having a place of business at Frankfurter Strasse 250, 64293 Darmstadt, Germany (“Company”), under which the parties mutually agree to modify and amend the License Agreement between the Parties, with an Effective Date of October 25, 2013 (the “Agreement”), as set forth below. Capitalized terms used in the Amendment but not defined shall have the meanings set forth in the Agreement. The parties hereby agree as follows:

 

1.            Amendments. The Agreement is hereby amended as follows:

 

1.1          The second sentence of Section 2.3(a) of the Agreement is hereby amended by deleting the phrase “twenty-four (24) months” and replacing it with the phrase “forty-five (45) months.”

 

1.2          The first and second sentences of Section 2.4(a) of the Agreement are hereby amended by deleting the phrase “twenty-four (24) months” in each sentence and replacing it with the phrase “forty-five (45) months.”

 

2.            Scope. This Amendment supersedes all proposals, negotiations, conversations and/or discussions between or among parties relating to the subject matter of this Amendment and all past dealing or industry custom. This Amendment shall be integrated in and form part of the Agreement effective as of the Amendment Effective Date. Except for the foregoing modifications, the Agreement is hereby ratified and confirmed in accordance with its original terms. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement.

 

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their duly authorized representatives as of the Amendment Effective Date.

 

	
BeiGene, LTD
    	
 
    	
Merck   KGaA
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   John V. Oyler
    	
 
    	
By:   
    	
/s/   Jens Eckhardt
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
John   V. Oyler 
    	
 
    	
Name:   
    	
Jens   Eckhardt
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
Founder &   CEO 
    	
 
    	
Title:   
    	
Regional   General Counsel
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Merck   KGaA
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:   
    	
/s/   i.v. Harm-Jan Borgeld
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Name:   
    	
Harm-Jan   Borgeld
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Title:   
    	
Head   Alliance ManagementExhibit 10.9

 

EMPLOYMENT AGREEMENT

 

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

 

W I T N E S S E T H :

 

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

 

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

 

Section 1.                                           Definitions.

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 2.                                           Acceptance and Term.

 

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

 

 

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

 

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

 

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

 

Section 4.                                           Compensation.

 

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

 

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

 

 

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

 

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

 

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

 

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

 

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

 

 

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

 

Section 5.                                           Employee Benefits.

 

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

 

Section 6.                                           Key-Man Insurance.

 

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

 

Section 7.                                           Reimbursement of Business Expenses.

 

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

 

Section 8.                                           Termination of Employment.

 

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

 

 

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

 

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

 

(c)                                  Termination by the Company with Cause.

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

Section 9.                                           Restrictive Covenant Agreement.

 

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

 

Section 10.                                    Representations and Warranties of Employee.

 

Employee represents and warrants to the Company that-

 

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

 

 

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

 

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

 

Section 11.                                    Taxes.

 

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

 

Section 12.                                    Set Off; Mitigation.

 

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

 

Section 13.                                    Additional Section 409A Provisions.

 

Notwithstanding any provision in this Agreement to the contrary—

 

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

 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

Section 15.                                    Waiver and Amendments.

 

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

 

Section 16.                                    Severability.

 

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

 

Section 17.                                    Governing Law and Jurisdiction.

 

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

 

Section 18.                                    Notices.

 

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

 

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

 

 

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

 

Section 19.                                    Section Headings.

 

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

 

Section 20.                                    Entire Agreement.

 

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

 

Section 21.                                    Survival of Operative Sections.

 

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

 

Section 22.                                    Counterparts.

 

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

 

*                                         *                                         *

 

[Signatures to appear on the following page.]

 

 

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

 

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

 

 

EXHIBIT A

 

CONFIDENTIALITY, NON-COMPETITION, AND INVENTION ASSIGNMENT AGREEMENT

 

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

 

Section 1.                                           Confidential Information.

 

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

 

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

 

 

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

 

Section 2.                                           Developments.

 

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

 

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

 

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

 

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

 

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

 

Section 3.                                           Returning Company Group Documents.

 

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

 

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

 

Section 4.                                           Disclosure of Agreement.

 

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

 

Section 5.                                           Restrictions on Interfering.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 6.                                           Reasonableness of Restrictions.

 

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

 

Section 7.                                           Independence; Severability; Blue Pencil.

 

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

 

Section 8.                                           Injunctive Relief.

 

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

 

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

 

Section 9.                                           Cooperation.

 

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

 

Section 10.                                    Business Opportunities.

 

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

 

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Section 11.                                    General Provisions.

 

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

 

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

 

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

 

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

 

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

 

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

 

 

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

 

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SCHEDULE A

 

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

 

	
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No Developments or improvements

 

Additional Sheets Attached

 

	
Signature   of Employee:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Print   Name of Employee:
    	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    
					

 

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EXHIBIT B

 

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

 

·                  Build and manage the Company’s financial capabilities:

 

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

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

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

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

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

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

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

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

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

 

·                  Help drive the Company’s strategic planning process:

 

·                  Organize meetings to discuss program prioritization quarterly

·                  Perform landscape analysis for competitive and new product areas

·                  Participate in quarterly assessments of new research targets

·                  Perform risk/cost assessments

 

·                  Participate in the Company’s Key Leadership Team:

 

·                  Participate in leadership meetings and prepare updates for your areas

·                  Help recruit clinical team

 

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

 

·                  Propose in-license/out license targets

·                  Competitive assessment of other deals

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

 

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

 

 

EXHIBIT C

 

FORM OF RELEASE AGREEMENT:  ACTUAL AGREEMENT MAY DIFFER

 

GENERAL RELEASE

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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

 

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

 

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