Company: DDC
Filing Date: 2025-01-28
Form Type: 20-F
Source: 0001213900-25-007160
Chunk: 208

Company: DDC Enterprise Ltd
Filing Date: 2025-01-28
Form: 20-F
Item: Item 19
Chunk 208
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 Agreement, Exclusive Purchase
Agreement, Proxy Agreement, Equity Pledge Agreement and Spousal Consent Letter (collectively, the “ Farm VIE Agreements”) with
City Modern, Mr. Cui Yixiong and Ms. Wang Yike.

The principal terms of the Farm VIE arrangements
are as follows:

1) Exclusive Consultancy and Service Agreement

The WFOE provides management consulting, technical
support, intellectual property licensing and other relevant services to City Modern during the service period, which is20 yearsand will be automatically renewed for20 yearsupon each expiration.

The WFOE is able to receive substantially all
of the economic benefits of and bear all the risks of City Modern. When City Modern has operating loss or significant operating difficulties,
WFOE has the right to request City Modern to cease operations and City Modern must unconditionally accept WFOE’s request. City Modern
shall pay WFOE on a quarterly basis a service fee, which shall be equal to all the quarterly profit before tax excluding the service fees
and after covering the deficits from prior years, if any. WFOE has the discretion to adjust the basis of calculation of the service
fee according to the actual services provided to City Modern.

City Modern and its nominee shareholders shall
accept the services provided by the WFOE, cannot receive services from other third parties directly or indirectly, and shall not enter
into any transaction that may cause conflict with the agreement or negatively affect the interests under the agreement.

2) Exclusive Option Agreement

The WFOE has irrevocable and exclusive right to
purchase the equity interests and assets in City Modern held by these nominee shareholders of City Modern, once or at multiple times at
any time in part or in whole, at the WFOE’s sole discretion. Except for the WFOE and its designee(s), no other person shall be entitled
to such option or other rights to purchase the equity interests or assets in City Modern held by these nominee shareholders of City Modern.

The purchase price of equity interests shall be
the lower of the capital contribution by the nominee shareholders in City Modern and the minimum price permitted by the local applicable
laws. Pursuant to the contractual arrangement, City Modern and its nominee shareholders shall not terminate the exclusive purchase agreement
unilaterally in any event unless otherwise required by applicable laws.

3) Proxy Agreement

The WFOE has sole and exclusive power of proxy
to act on behalf of these nominee shareholders of City Modern with respect to all rights