Common use of Organization Structure Clause in Contracts

Organization Structure. The Company will establish the following organization structure: (a) the Company shall, directly or through one or more intermediate holding companies, form a wholly owned subsidiary in China (the “Subsidiary”) which will be engaged in conducting or arranging clinical studies for the New Drugs; (b) the Company shall have a board of directors initially consisting of 3 directors, one of such directors to be appointed by Can-F▇▇▇ and two by Morningside; after the issuance of additional New Shares pursuant to Clause 1.3(b), each Party shall have the right to appoint such number of directors In proportion to its shareholding percentage in the Company, provided however that so long as Can-F▇▇▇’▇ equity in the Company remains over 5%, Can-F▇▇▇ shall have the right to appoint one director of the Company; (c) the Company shall form a drug development steering committee which will include Can-F▇▇▇ designees.