Document:

Exhibit

Exhibit 10.5
LAM RESEARCH CORPORATION  
2015 Stock Incentive Plan
Market-Based Performance Restricted Stock Unit Award Agreement
(International Participants)

Pursuant to the terms of the 2015 Stock Incentive Plan (the “Plan”) Lam Research Corporation, a Delaware corporation (the “Company”), hereby awards market-based performance restricted stock units (“mPRSUs”) to the Grantee (the “Participant”) on the terms and conditions as set forth in this Market-Based Performance Restricted Stock Unit Award Agreement (including the attached Exhibit A) (the “Agreement”) and the Plan.  Capitalized terms used but not defined in this Agreement shall have the meaning specified in the Plan.  This Agreement is effective as of the Grant Date.
NOW, THEREFORE, it is hereby agreed as follows:
1.Award of mPRSUs.  Subject to the terms and conditions of this Agreement and the Plan (the terms of which are incorporated herein by reference) and effective as of the date set forth above, the Company hereby grants to the Participant a Target Number of mPRSUs as set forth in Exhibit A.  Subject to the Company’s attainment of the relative performance set forth in the attached Exhibit A (the “Performance Criteria”), the Participant may vest in the mPRSUs in a designated Payout Range as set forth in Exhibit A.  The mPRSUs represent an unfunded, unsecured promise by the Company to deliver Shares subject to the terms and conditions of this Agreement.  
2.    Vesting.  
(a)     Subject to the terms and conditions of this Agreement, the mPRSUs shall vest and become payable in Shares on the Performance Vesting Date set forth in the attached Exhibit A.  The number of mPRSUs that vest shall be determined by the Company’s performance under the Vesting Formula during the Performance Period, as set forth in the attached Exhibit A.  Except as otherwise provided herein, the Participant’s right to receive Shares subject to the mPRSUs is contingent upon the Participant continuing to provide Service (as defined in Section 3 below) to the Company (or any Related Entity) through the Performance Vesting Date.
(b)    Notwithstanding the provisions above, in the event of a Corporate Transaction or a Change in Control (defined hereinafter as “Triggering Event”) prior to the Performance Vesting Date in Section 2(a), a portion of the mPRSUs shall convert into a cash award (the “Cash Award”).  The number of mPRSUs that convert into a Cash Award shall be the sum of the “performance pro rata” number of Shares and the “target pro rata” number of Shares.  This sum shall be multiplied by the closing price of the Company’s common stock as of the closing date of the Triggering Event to determine the dollar amount of the Cash Award.  The Cash Award will vest on the Performance Vesting Date, contingent upon the Participant continuing to provide Service (as defined in Section 3 below) to the Company (or any Affiliate) through the Performance Vesting Date.  Any remaining portion of the mPRSUs that are not converted into a Cash Award shall be cancelled.

(i)    Performance Pro Rata.  The Target Number of mPRSUs (as set forth in the attached Exhibit A) shall be multiplied by the total number of days from the first day of the Performance Period until the earlier of the closing date of the  Triggering Event or the last day of the Performance Period divided by the number of days in the Performance Period (“Elapsed Target Shares”).  The Company’s performance under the Vesting Formula (as set forth in the attached Exhibit A) from the first day of the Performance Period until the closing date of the Triggering Event shall be applied to the Elapsed Target Shares to determine the “performance pro rata” number of Shares.
(ii)    Target Pro Rata.  The Target Number of mPRSUs (as set forth in the attached Exhibit A) shall be multiplied by the total number of days from the day following the closing date of the Triggering Event until the last day of the Performance Period (but not less than zero) divided by the number of days in the Performance Period to determine the “target pro rata” number of Shares.
3.    Effect of Termination of Service or Leave of Absence.
(a)    For purposes of this Agreement, “Service” shall mean the performance of services for the Company (or any Related Entity) in the capacity of an Employee and shall be considered terminated on the last day the Participant is on payroll.  In the event of termination of the Participant’s Service by the Participant or by the Company or a Related Entity for any reason, excluding Participant’s death or Disability before the mPRSUs have vested, the unvested mPRSUs shall be cancelled by the Company (subject to the terms of any applicable Employment or Change in Control Agreement).  
(b)    In the event of termination of the Participant’s Service due to death prior to the Performance Vesting Date, a portion of the mPRSUs granted to the Participant shall vest on the date of death.  To determine the applicable number of Shares, the Target Number of mPRSUs (as set forth in the attached Exhibit A) shall be multiplied by the total number of days from the first day of the Performance Period until the earlier of the date of death or the last day of the Performance Period, divided by the number of days in the Performance Period to determine the “death pro rata” target number of Shares.  The Company’s performance under the Vesting Formula (as set forth in the attached Exhibit A) from the first day of the Performance Period until the earlier of the date of death or the last day of the Performance Period shall be applied to the greater of: (i) the “death pro rata” target number of Shares or (ii) 50% of the original Target Number of mPRSUs (as set forth in the attached Exhibit A), to determine the number of Shares which shall vest on the date of death (the “Death Vesting Date”).  Any remaining unvested portion of the mPRSUs shall be cancelled.
(c)    In the event of termination of the Participant’s Service due to Disability prior to the Performance Vesting Date, a portion of the mPRSUs granted to the Participant shall vest on the date the Disability is incurred.  To determine the applicable number of Shares, the Target Number of mPRSUs (as set forth in the attached Exhibit A) shall be multiplied by the total number of days from the first day of the Performance Period until the earlier of the date the Disability is incurred or the last day of the Performance Period, divided by the number of days in the Performance Period to determine the “disability pro rata” target number of Shares.  The Company’s performance under the Vesting Formula (as set forth in the attached Exhibit A) from 

the first day of the Performance Period until the earlier of the date the Disability is incurred or the last day of the Performance Period shall be applied to the greater of: (i) the “disability pro rata” target number of Shares or (ii) 50% of the original Target Number of mPRSUs (as set forth in the attached Exhibit A) to determine the number of Shares which shall vest on the date the Disability is incurred (the “Disability Vesting Date”, and collectively with “Performance Vesting Date”, and the “Death Vesting Date”, the “Vesting Date”).  Any remaining unvested portion of the mPRSUs shall be cancelled.
(d)    Vesting of the mPRSUs will be suspended and vesting credit will no longer accrue as of the day of the Leave of Absence as set forth in Exhibit A, unless otherwise determined by the Administrator or required by contract, statute or applicable local law.  If the Participant returns to Service immediately after the end of an approved Leave of Absence, vesting credit shall continue to accrue from that date of continued Service.
   
4.    Form and Timing of Payment.  
(a)    Subject to Section 5 of this Agreement and provided that the Participant has satisfied the vesting requirements of Section 2 or 3 of this Agreement, on each Vesting Date, as applicable, the mPRSUs shall automatically be converted into unrestricted Shares.  Such Shares will be issued to the Participant (as evidenced by the appropriate entry in the books of the Company or a duly authorized transfer agent of the Company) on the applicable Vesting Date (or as soon as practicable), but in any event, within the period ending on the later to occur of the date that is 2 1⁄2 months after the end of (i) the Participant’s tax year that includes the applicable Vesting Date, or (ii) the Company’s tax year that includes the applicable Vesting Date.  
(b)    Shares issued in respect of mPRSUs shall be deemed to be issued in consideration of past services actually rendered by the Participant to the Company or a Related Entity or for its benefit for which the Participant has not previously been compensated or for future services to be rendered, as the case may be, which the Company deems to have a value at least equal to the aggregate par value of the Shares subject to the mPRSUs.
5.Tax Withholding Obligations.  Regardless of any action the Company or the Participant’s employer (the “Employer”) takes with respect to any or all income tax (including federal, state and local taxes), social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items legally due by the Participant is and remains the Participant’s responsibility and that the Company and/or the Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the mPRSUs, including the grant of the mPRSUs, the vesting of the mPRSUs, or the receipt of an equivalent cash payment, the subsequent sale of any Shares acquired at vesting and the receipt of any dividends; and (ii) do not commit to structure the terms of the grant or any aspect of the mPRSUs to reduce or eliminate the Participant’s liability for Tax-Related Items or achieve any particular tax result.

Prior to the issuance of Shares upon vesting of the mPRSUs (or any other tax or withholding event), the Participant shall pay, or make arrangements satisfactory to the Company 

(in the Company’s sole discretion) to satisfy all withholding (and payment on account, where applicable) obligations.  In those cases where a prior arrangement has not been made (or where the amount of money provided under the prior arrangement is insufficient to satisfy the obligations for Tax-Related Items), the Company shall withhold a number of whole Shares otherwise deliverable at vesting having a Fair Market Value sufficient to satisfy the statutory minimum (or such higher amount as is allowable without adverse accounting consequences) of the Participant’s estimated obligations for Tax-Related Items applicable to the mPRSUs; such withholding will result in the issuance to the participant of a lower number of Shares.  
The Company and/or the Employer may also, in lieu of or in addition to the foregoing, at the Company’s sole discretion as authorized herein by the Participant, withhold all applicable Tax-Related Items legally payable by the Participant from the Participant’s wages or other cash compensation or to withhold in one of the following ways, as determined by the Company: (i) require the Participant to deposit with the Company an amount of cash sufficient to meet his or her obligation for Tax-Related Items, and/or (ii) sell or arrange for the sale of Shares to be issued on the vesting of the mPRSUs to satisfy the withholding (or payment on account, when applicable) obligation.  If the Participant’s obligation for Tax-Related Items is satisfied as described in (ii) of this section, the Company will endeavor to sell only the number of Shares required to satisfy the Participant’s obligations for Tax-Related Items; however, the Participant agrees that the Company may sell more Shares than necessary to cover the Tax-Related Items and that in such event, the Company will reimburse the Participant for the excess amount withheld, in cash and without interest.  The Participant shall pay to the Employer any amount of Tax-Related Items that the Employer may be required to withhold as a result of the Participant’s receipt of the mPRSUs, the vesting of the mPRSUs that cannot be satisfied by the means previously described.  The Company may refuse to deliver Shares to the Participant if the Participant fails to comply with his or her obligation in connection with the Tax-Related Items as described herein.  The Participant hereby consents to any action reasonably taken by the Company and/or the Employer to meet his or her obligation for Tax-Related Items.  
Further, in consideration of the grant of the mPRSUs, no claim or entitlement to compensation or damages arises if, in satisfying the Participant’s (and/or the Employer’s) obligation for Tax-Related Items, the Company and/or the Employer withholds an amount in excess of the amount legally required to be withheld, the Participant irrevocably releases the Company and the Employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by signing this Agreement, the Participant shall be deemed irrevocably to have waived his or her entitlement to pursue such claim or damages.
6.Restriction on Transferability.  Prior to vesting and delivery of the Shares, neither the mPRSUs, nor the Shares or any beneficial interest therein, may be sold, transferred, pledged, assigned, or otherwise alienated at any time.  Any attempt to do so contrary to the provisions hereof shall be null and void.  Notwithstanding the above, distribution can be made pursuant to will, the laws of descent and distribution, and if provided by the Administrator, intra-family transfer instruments, or to an inter vivos trust, or as otherwise provided by the Administrator.  

The terms of this Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Participant.
7.Requirements of Law.  The issuance of Shares upon vesting of the mPRSUs is subject to Sections 9 and 14(b) of the Plan, which generally provides that any such issuance shall be subject to compliance by the Company and the Participant with all applicable requirements of law relating thereto and with all applicable regulations of any stock exchange on which the Shares may be listed for trading at the time of such issuance.  The inability of the Company to obtain approval from any regulatory body having authority deemed by the Company to be necessary to the lawful issuance of any Shares hereby shall relieve the Company of any liability with respect to the non-issuance of the Shares as to which such approval shall not have been obtained.  The Company, however, shall use its reasonable efforts to obtain all such approvals.
8.Rights as Stockholder.  The Participant shall not have voting, dividend or any other rights as a stockholder of the Company with respect to the mPRSUs. Upon settlement of the Participant’s mPRSUs into Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), the Participant will obtain full voting, dividend and other rights as a stockholder of the Company.
9.No Compensation Deferrals.  Neither the Plan nor this Agreement is intended to provide for an elective deferral of compensation that would be subject to Section 409A (“Section 409A”) of the Internal Revenue Code of 1986, as amended (the “Code”).  If, notwithstanding the parties’ intent in this regard, at the time of the Participant’s termination of Service, he or she is determined to be a “specified employee” as defined in Code Section 409A, and one or more of the payments or benefits received or to be received by the Participant pursuant to the mPRSUs would constitute deferred compensation subject to Code Section 409A, no such payment or benefit will be provided under the mPRSUs until the earliest of (A) the date which is six (6) months after the Participant’s “separation from service” for any reason, other than death or “disability” (as such terms are used in Section 409A(a)(2) of the Code), (B) the date of the Participant’s death or “disability” (as such term is used in Section 409A(a)(2)(C) of the Code), or (C) the effective date of a “change in the ownership or effective control” or a “change in ownership of a substantial portion of the assets” of the Company (as such terms are used in Section 409A(a)(2)(A)(v) of the Code). The provisions of this Section 9 shall only apply to the extent required to avoid the Participant’s incurrence of any additional tax or interest under Code Section 409A or any regulations or U.S. Department of the Treasury (“Treasury”) guidance promulgated thereunder.  In addition, if any provision of the mPRSUs would cause the Participant to incur any additional tax or interest under Code Section 409A or any regulations or Treasury guidance promulgated thereunder, the Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify the Plan and/or this Agreement to conform it to the maximum extent practicable to the original intent of the applicable provision without violating the provisions of Code Section 409A, including without limitation to limit payment or distribution of any amount of benefit hereunder in connection with a Triggering Event to a transaction meeting the definitions referred to in clause (C) above, or in connection with any disability to a “disability” as referred to in (B) above; provided however that the Company makes no representation that these Performance Restricted 

Stock Units are not subject to Section 409A nor makes any undertaking to preclude Section 409A from applying to these mPRSUs.  In addition, to the extent the Company determines it appropriate to accelerate any vesting conditions applicable to this award, then to the extent necessary to avoid the Participant’s incurring any additional tax or interest as a result of such vesting acceleration under Code Section 409A or any regulations or Treasury guidance promulgated thereunder, and notwithstanding Section 4 above, the Company may as a condition to extending such acceleration benefits provide for the Shares to be issued upon settlement of the mPRSUs to be issued on the earliest date (the “Permitted Distribution Date”) that would obviate application of such additional tax or interest rather than issuing them upon the date on which such vesting is effective as would otherwise be required under Section 2 (or as soon as practicable after such Permitted Distribution Date and in no event later than that last day of the grace period following such date permitted under Code Section 409A).  
10.Administration.  The Administrator shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation, and application of the Plan as are consistent therewith and to interpret or revoke any such rules.  All actions taken and all interpretations and determinations made by the Administrator shall be final and binding upon the Participant, the Company, and all other interested persons.  No Administrator shall be personally liable for any action, determination, or interpretation made in good faith with respect to the Plan or this Agreement.
11.Effect on Other Employee Benefit Plans.  The value of the mPRSUs granted pursuant to this Agreement shall not be included as compensation, earnings, salaries, or other similar terms used when calculating the Participant’s benefits under any employee benefit plan sponsored by the Company or any Related Entity, except as such plan otherwise expressly provides.  The Company expressly reserves its rights to amend, modify, or terminate any of the Company’s or any Related Entity’s employee benefit plans.
12.No Employment Rights.  The award of the mPRSUs pursuant to this Agreement shall not give the Participant any right to continued Service with the Company or a Related Entity and shall not interfere with the ability of the Employer to terminate the Participant’s Service with the Company at any time with or without cause. 
13.Nature of the Grant.  In accepting the mPRSUs, the Participant acknowledges that: 
(a)the Plan is established voluntarily by the Company, it is discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Agreement; 
(b)the grant of mPRSUs is voluntary and occasional and does not create any contractual or other right to receive future awards of mPRSUs, or benefits in lieu of mPRSUs even if mPRSUs have been awarded repeatedly in the past; 
(c)all decisions with respect to future grants of mPRSUs, if any, will be at the sole discretion of the Company; 

(d)the Participant’s participation in the Plan is voluntary; 
(e)the mPRSUs are outside the scope of the Participant’s employment contract, if any; 
(f)the mPRSUs are not part of normal or expected compensation or salary for any purpose, including, but not limited to, calculation of any overtime, severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments;
(g)in the event that the Participant is not an employee of the Company, the grant of the mPRSUs will not be interpreted to form an employment contract or relationship with the Company; and furthermore, the grant of the mPRSUs will not be interpreted to form an employment contract with the Employer or any Related Entity; 
(h)the future value of the underlying Shares is unknown and cannot be predicted with certainty; 
(i)if the Participant receives Shares upon vesting of the mPRSUs, the value of such Shares may increase or decrease in value; 
(j)in consideration of the grant of the mPRSUs, no claim or entitlement to compensation or damages arises from termination of the mPRSUs or diminution in value of the mPRSUs or Shares received upon vesting of mPRSUs resulting from termination of the Participant’s Service to the Company or the Employer (for any reason whatsoever and whether or not in breach of local labor laws) and the Participant irrevocably releases the Company and the Employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by signing this Agreement, the Participant shall be deemed irrevocably to have waived his or her entitlement to pursue such claim. 
14.Data Privacy Notice and Consent.   The Participant hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of his or her personal data as described in this Agreement by and among, as applicable, the Employer, the Company and its Related Entities for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan.

The Participant understands that the Company and the Employer may hold certain personal information about the Participant, including, but not limited to, the Participant’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all mPRSUs or any other entitlement to shares awarded, canceled, vested, unvested or outstanding in the Participant’s favor, for the purpose of implementing, administering and managing the Plan (“Data”).  

The Participant understands that Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in the Participant’s country, or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the Participant’s country.  The Participant understands that the Participant may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative.  The Participant authorizes the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing his or her participation in the Plan, including any requisite transfer of such Data as may be required to a broker, escrow agent or other third party with whom the shares received upon vesting of the mPRSUs may be deposited.  The Participant understands that Data will be held only as long as is necessary to implement, administer and manage his or her participation in the Plan.  The Participant understands that he or she may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative.  The Participant understands, however,  that refusal or withdrawal of consent may affect his or her ability to participate in the Plan.  For more information on the consequences of his or her refusal to consent or withdrawal of consent, the Participant understands that he or she may contact his or her local human resources representative.
15.Amendment of Agreement.  This Agreement may be amended only by a writing which specifically states that it amends this Agreement.  Notwithstanding the foregoing, this Agreement may be amended unilaterally by the Committee by a writing which specifically states that it is amending this Agreement, so long as a copy of such amendment is delivered to the Participant, and provided that no such amendment adversely affects the rights of the Participant.  Limiting the foregoing, the Committee reserves the right to change, by written notice to the Participant, the provisions of the mPRSUs or this Agreement in any way it may deem necessary or advisable to carry out the purpose of the grant as a result of any change in applicable laws or regulations or any future law, regulation, ruling, or judicial decision, or, to the extent permissible under the Plan (including, but not limited to, Sections 10, 11 and 13 of the Plan).  
16.Notices.  Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of its Stock Administrator.  Any notice to be given to the Participant shall be addressed to the Participant at the address listed in the Employer’s records.  By a notice given pursuant to this Section, either party may designate a different address for notices.  Any notice shall have been deemed given when actually delivered.
17.Severability.  The provisions of this Agreement are severable and if all or any part of this Agreement or the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or invalid.  Any Section of this Agreement (or part of such a Section) so declared to be unlawful or invalid shall, if possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful and valid.

18.Construction.  The mPRSUs are being issued pursuant to the Plan and are subject to the terms of the Plan. A copy of the Plan is available upon request during normal business hours at the principal executive offices of the Company.  To the extent that any provision of this Agreement violates or is inconsistent with a provision of the Plan, the Plan provision shall govern and any inconsistent provision in this Agreement shall be of no force or effect.
19.Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to the mPRSUs granted under the Plan and participation in the Plan or future mPRSUs that may be granted under the Plan by electronic means or to request the Participant’s consent to participate in the Plan by electronic means.  The Participant hereby consents to receive such documents by electronic delivery and, if requested, to agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.  
20.Entire Agreement.  The Plan is incorporated herein by reference.  The Plan and this Agreement constitute the entire agreement of the Company and the Participant with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Participant with respect to the subject matter hereof.
21.Language.  If the Participant has received this Agreement or any other document related to the Plan translated into a language other than English and if the translated version is different than the English version, the English version will control.
22.Miscellaneous.
(a)    The Company has established the Plan voluntarily, it is discretionary in nature and the Board may terminate, amend, or modify the Plan at any time; provided, however, that no such termination, amendment, or modification of the Plan may in any way adversely affect the Participant’s rights under this Agreement, without the Participant’s written approval unless such termination, amendment, or modification of the Plan is necessary in order to comply with any change in applicable laws or regulations or any future law, regulation, ruling, or judicial decision or as otherwise permissible under the Plan (including, but not limited to, Sections 10, 11 and 13 of the Plan).
(b)    All obligations of the Company under the Plan and this Agreement in a Triggering Event shall be governed by the Plan and this Agreement, other than as set forth in Section 3(a) above.

(c)    To the extent not preempted by United States federal law, this Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to its principles of conflict of laws.
23.Country Specific Terms.  Appendix A contains additional terms and conditions of the Agreement applicable to Participants residing in those countries.  In addition, Appendix A also contains information and notices of exchange control and certain other issues of which the Participant should be aware.

24.Acceptance of Terms and Conditions.  The Participant agrees to abide by all of the governing terms and provisions of the Plan and this Agreement unless the Participant declines the award electronically with the Company sponsored broker by the first vest date.  Additionally, the Participant acknowledges having read and understood the terms and conditions of the Plan and this Agreement and has had an opportunity to obtain the advice of counsel prior to accepting this Agreement.  In addition, the transfer or sale of the shares obtained at vesting by the Participant shall be considered an additional acknowledgment of the terms and conditions contained in the Plan and Agreement.  

*    *    *   *   *

	
		
	PARTICIPANT SIGNATURE
	[Electronic Signature]

	PRINTED NAME
	[Participant Name]

	DATE   
	[Acceptance Date]

APPENDIX A
TERMS AND CONDITIONS
This Appendix A, which is part of the Agreement, contains additional terms and conditions of the Agreement that will apply to the Participant if he or she resides in one of the countries listed below.  Capitalized terms used but not defined herein shall have the same meanings assigned to them in the Plan and/or the Agreement. 
NOTIFICATIONS
This Appendix A also includes information regarding exchange control and certain other issues of which the Participant should be aware with respect to his or her participation in the Plan.  The information is based on the securities, exchange control and other laws in effect in the respective countries as of November 2015.  Such laws are often complex and change frequently.  The Company therefore strongly recommends that the Participant not rely on the information as the only source of information relating to the consequences of his or her participation in the Plan because such information may be outdated when the Participant vests in the mPRSUs and/or sells any Shares acquired pursuant to the mPRSUs.
AUSTRIA
Exchange Control Information.  If the Participant holds Shares acquired under the Plan outside of Austria, the Participant must submit a report to the Austrian National Bank.  An exemption applies if the value of the Shares as of any given quarter does not exceed €30,000,000 or as of December 31 does not exceed €5,000,000.  If the former threshold is exceeded, quarterly obligations are imposed; whereas, if the latter threshold is exceeded, annual reports must be provided.  The annual reporting date is December 31 and the deadline for filing the annual report is March 31 of the following year.
When the Participant sells Shares acquired under the Plan, there may be exchange control obligations if the cash proceeds are held outside of Austria.  If the transaction volume of all accounts abroad exceeds €3,000,000 the movements and balances of all accounts must be reported monthly, as of the last day of the month, on or before the fifteenth day of the following month.
BELGIUM
Tax Reporting Information.  You are required to report any bank accounts opened and maintained outside Belgium on your annual tax return.  As a Belgian tax resident, Participant is required to inform the Central Point of Contact (CPC) of the National Bank of Belgium of overseas income (which includes any Shares received in connection with participation in the Plan) by registering any foreign accounts with the CPC before filing Participant’s annual tax return with the Belgian tax authorities.  If Participant has previously reported overseas income, Participant will receive a letter from the tax authorities about this requirement and will have two 

months from the receipt of such letter to report the accounts to the CPC.  If Participant has not previously reported overseas income, Participant will not receive a letter and must proactively report the required information to the CPC. 

CHINA (PRC)
Exchange Control Restrictions.  The Participant agrees to comply with any requirements that may be imposed by the Company in the future in order to facilitate compliance with exchange control requirements in China.  These requirements may include, but are not limited to, immediate repatriation to China of the sale proceeds, an immediate sale of the mPRSUs at vesting, and/or repatriation of the cash proceeds through a special exchange control account.  
FRANCE
Exchange Control Information. If the Participant imports or exports cash (e.g., sales proceeds received under the Plan) with a value equal to or exceeding €10,000 and does not use a financial institution to do so, he or she must submit a report to the customs and excise authorities. If the Participant maintains a foreign bank account, he or she is required to report such account to the French tax authorities when filing his or her annual tax return. 
GERMANY
Exchange Control Information. Cross-border payments in excess of €12,500 must be reported monthly to the German Federal Bank. If the Participant uses a German bank to transfer a cross-border payment in excess of €12,500 under the Plan, the bank will make the report for the Participant.  In addition, the Participant must report any receivables or payables or debts in foreign currency exceeding an amount of €5,000,000 on a monthly basis. 
IRELAND
Director Notification Requirement. If the Participant is a director, shadow director or secretary of an Irish Subsidiary or Related Entity of the Company who owns more than a 1% interest in the Company, pursuant to Section 53 of the Irish Company Act 1990, he or she must notify the Irish Subsidiary or Related Entity of the Company in writing within five (5) business days of receiving or disposing of an interest in the Company (e.g., mPRSUs, Shares, etc.), or within five (5) business days of becoming aware of the event giving rise to the notification requirement, or within five (5) days of becoming a director, shadow director or secretary if such an interest exists at that time. This notification requirement also applies with respect to the interests of a spouse or minor child, whose interests will be attributed to the director, shadow director or secretary. 
ISRAEL 
No additional provisions apply.
ITALY
Plan Document Acknowledgment.  By accepting the terms and conditions of the mPRSUs, the Participant acknowledges that he or she has received a copy of the Plan and the Agreement and 

has reviewed the Plan and the Agreement, including this Appendix A, in their entirety and fully understands and accepts all provisions of the Plan and the Agreement.
Data Privacy.  In addition to the data privacy provision that is set forth in the Agreement, the Participant also consents to the following additional data privacy-related terms:
I am aware that providing the Company and my Employer with Data is necessary for participation in the Plan and that my refusal to provide such Data may affect my ability to participate in the Plan.  The Controller of personal data processing is the Company with registered offices at 4650 Cushing Parkway, Fremont, California, 94538, United States and, pursuant to D.lgs 196/2003, its representatives in Italy are Lam Research S.r.l., with registered offices in Centro Direzionale Colleoni, Palazzo Sirio 3-Ing, 20041 Agrate Brianza-MI, Italy.
I understand that I may at any time exercise the rights acknowledged by Section 7 of Legislative Decree June 30, 2003 n.196, including, but not limited to, the right to access, delete, update, request the rectification of my Data and cease, for legitimate reasons, the data processing.  Furthermore, I am aware that my Data will not be used for direct marketing purposes.
Exchange Control Information.  By September 30th of each year, Participants are required to report on their annual tax return (Form RW) any foreign investments (including proceeds from the sale of Shares) held outside of Italy if the investment may give rise to income in Italy.  However, deposits and bank accounts held outside of Italy only need to be disclosed if the value of the assets exceeds €10,000 during any part of the tax year.  
With respect to Shares received, the Participants must report (i) the value of the Shares at the beginning of the year or on the day the Participant acquired the Shares, whichever is later; and (ii) the value of the Shares when sold, or if the Participant still owns the Shares at the end of the year, the value of the Shares at the end of the year.  The value to be reported is the fair market value of the Shares on the applicable dates mentioned above.  
JAPAN
Exchange Control Information.  If the Participant acquired Shares valued at more than ¥100,000,000 in a single transaction, the Participant must file a Securities Acquisition Report with the Ministry of Finance through the Bank of Japan within 20 days of the purchase of Shares. In addition, Japanese permanent residents will be required to report, by March 15 of each year, overseas assets that exceed ¥50,000,000 (approximately US$500,000) at year end.
KOREA
Exchange Control Information.  If the Participant receives US$500,000 or more from the sale of Shares, Korean exchange control laws require the Participant to repatriate the proceeds to Korea within 36 months of the sale.

MALAYSIA
Director Notification Requirement.  If the Participant is a Director of the local Subsidiary, he or she must notify the local Subsidiary of the grant and also provide notice of any change in his or her interest in the mPRSUs (e.g. vesting or the sale of Shares).
Exchange Control Information.  Because exchange control regulations change frequently and without notice, you should consult your legal advisor before selling shares to ensure compliance with current regulations.  It is Participant’s responsibility to comply with exchange control laws in Malaysia, and neither the Company nor your employer will be liable for any fines or penalties resulting from a failure to comply with applicable laws.  For purposes of compiling balance of payment statistics on the inflow and outflow of funds from Malaysia, the Bank Negara Malaysia must be notified of any remittance of funds between residents and non-residents of an amount equal to RM200,001 or greater from Malaysia.  
NETHERLANDS
Insider-Trading Notification.  The Participant should be aware of the Dutch insider-trading rules, which may impact the sale of Shares acquired at vesting of the mPRSUs.  In particular, the Participant may be prohibited from effectuating certain transactions involving Shares if the Participant has inside information about the Company.  If the Participant is uncertain whether the insider-trading rules apply to him or her, the Participant should consult his or her personal legal advisor.  By accepting the Agreement and participating in the Plan, the Participant acknowledges having read and understood this notification and acknowledges that it is the Participant’s responsibility to comply with the following Dutch insider-trading rules.
SINGAPORE
Director Notification Obligation.  Directors of a Singapore Subsidiary or Affiliate are subject to certain notification requirements under the Singapore Companies Act.  Directors must notify the Singapore Subsidiary or Affiliate in writing of an interest (e.g., Shares, etc.) in the Company or any related companies within two (2) days of (i) its acquisition or disposal, (ii) any change in a previously disclosed interest (e.g., when the Shares are sold), or (iii) becoming a director.
Securities Law Information. The grant is being made on a private basis and is, therefore, exempt from registration in Singapore.
SLOVAKIA
Exchange Control Information.  It is the Participant’s obligation to comply with exchange control requirements in the Slovakia Republic, including any notification requirements applicable to opening or maintaining any foreign bank or brokerage accounts.
SLOVENIA
No additional provisions apply.

SWITZERLAND
Securities Law Information.  The offer of the mPRSUs is considered a private offering in Switzerland and is therefore not subject to securities registration in Switzerland.
TAIWAN
Exchange Control Information.  The Participant may acquire and remit foreign currency (including funds for the purchase of Shares and proceeds from the sale of Shares) up to US$5,000,000 per year without prior approval.
If the transaction amount is NTD500,000 or more in a single transaction, the Participant must submit a Foreign Exchange Transaction Form.  If the transaction amount is US$500,000 or more in a single transaction, the Participant must also provide supporting documentation to the satisfaction of the remitting bank.
UNITED KINGDOM
Securities Requirement.  Due to legal requirements, all mPRSUs at the time of vesting will be settled in Shares.

LAM RESEARCH CORPORATION
2015 Stock Incentive Plan
Market-Based Performance Restricted Stock Unit Award Agreement
EXHIBIT A
([___________] Vesting)

Participant (Name & Employee Number): 

Grant Date: 

Target Number of mPRSUs: 

Performance Vesting Date: 

Payout Range: 0% to 150% of Target Number of mPRSUs

Performance Period:                         to                                 .

Performance Criteria:

		
	•
	Index 

PHLX Semiconductor Sector Index, a global index traded on the NASDAQ OMX PHLX with a trading symbol of “SOX”

		
	•
	Vesting Formula

Target Number of mPRSUs x (100% + ((LRCX TSR % - Index TSR %) x 2)) = mPRSUs vested (subject to the maximum in the Payout Range)

		
	◦
	Target Number of mPRSUs is vested if the LRCX TSR % equals the Index TSR %

		
	◦
	Number of mPRSUs vested increases by 2% of target for each 1% that the LRCX TSR % exceeds the Index TSR %

		
	◦
	Number of mPRSUs vested decreases by 2% of target for each 1% that the LRCX TSR % trails the Index TSR %

		
	◦
	The result of the Vesting Formula is rounded down to the nearest whole number

		
	•
	LRCX TSR %

(LRCX 50-trading day average closing price as of the last trading day of the Performance Period - LRCX 50-trading day average closing price on the trading day immediately prior to the beginning of the Performance Period) ÷ (LRCX 50-trading day average closing price on the trading day immediately prior to the beginning of the Performance Period) x 100

		
	•
	Index TSR %

(Index 50-trading day average closing price as of the last trading day of the Performance Period - Index 50-trading day average closing price on the trading day immediately prior to the beginning of the Performance Period) ÷ (Index 50-trading day average closing price on the trading day immediately prior to the beginning of the Performance Period) x 100

		
	•
	Notes: 

		
	▪
	The LRCX TSR % calculation excludes any dividends paid on the Company’s common stock. 

		
	▪
	All Index TSR % calculations are based on the companies traded on the Index as of the applicable dates

		
	◦
	E.g., The Index is used as of the applicable dates even if companies are added / removed from the Index during the Performance Period.

		
	▪
	The Company’s relative performance is determined using calculations based on the 50-trading day average closing price methodology for all TSR calculations.

		
	▪
	In the event of a Triggering Event, the closing price of the Company’s common stock as of the closing date of the Triggering Event is used to convert the sum of the “performance pro rata” and “target pro rata” number of Shares into the Cash Award.

		
	▪
	If the Index is no longer traded / calculated, the Company’s relative performance is determined using calculations based on the companies included in the Index at the time trading / calculation last occurred.  The Compensation Committee will calculate the Index TSR % in the manner that most closely approximates the Index in its sole discretion.

Leave of Absence:  31st day (or 91st day if reemployment guaranteed by statute or contract)Exhibit 4.7

 

Equity Pledge Contract

 

This Equity Pledge Contract (this “Contract”) is made and entered into by and among the following parties on May 29, 2018, in Beijing, the People’s Republic of China (“China” or “PRC”):

 

	
Party A:
    	
 
    	
Beijing Shijitong Technology Co., Ltd.   (“Pledgee”)
    
	
 
    	
 
    	
 
    
	
Unified Social Credit Code:
    	
 
    	
91110108397827646N
    
	
 
    	
 
    	
 
    
	
Party B:
    	
 
    	
XIAO Wenjie (“Party B1”), a Chinese citizen whose ID number is   ******************;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
LIU Qiangdong (“Party B2”), a Chinese citizen whose ID number is   ******************;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Tibet Xianfeng Changqing Start-up Investment and   Management Co., Ltd. (“Party B3”),   a limited liability company organized and existing under the laws of China,   whose Unified Social Credit Code is 91540000585773438E; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Shenzhen Xinjie Investment Co., Ltd.   (“Party B4”),   a limited liability company organized and existing under the laws of China,   whose Unified Social Credit Code is 91440300359619977T.

 

Party B1, Party B2, Party B3 and Party B4 are   collectively referred to as the “Pledgers” or “Party B”.
    
	
 
    	
 
    	
 
    
	
Party C:
    	
 
    	
Shenzhen Fenqile Network Technology   Co., Ltd.
    
	
 
    	
 
    	
 
    
	
Unified Social Credit Code:
    	
 
    	
914403000758305191
    

 

In this Contract, The Pledgee, the Pledgers and Party C are hereinafter referred to individually as a “Party” and collectively the “Parties”.

 

Whereas:

 

1.                        The Pledgers are citizens/limited liability companies of China who as of the date hereof hold 100% of equity interests of Party C in total. Party C is a limited liability company registered in Shenzhen, China, engaging in enterprise image planning, enterprise marketing planning, investment consulting, entrusted asset management, project investment, economic information consulting; electronic commerce; technical development of electronic products, network products, scientific and technological products; technical development and sales of software; domestic trade; goods and technology import and export business; guarantee business (excluding financing guarantee business and other restricted businesses); optometry and mirror matching; technology development, sales and production of mobile phone and mobile communication equipment (managed by branches only), photography service; sales of household appliances, machinery and equipment, hardware and electricity, building materials, electronic products, cultural products, photographic equipment, computer hardware and software and peripheral equipment, cosmetics and sanitary products, chemical products (excluding dangerous chemicals and a Category I precursor chemicals), sports goods, textiles, clothing, daily necessities, furniture, gold and silver jewelry, feed, fresh fruits, vegetables, industrial products artistic gifts (except ivory products), watches and glasses, toys, automobile and motorcycle accessories, instruments, ceramics, rubber and plastic products, flowers, decorative materials, communication equipment; (enterprises independently choose business projects and carry out business activities according to law; projects subject to approval according to law shall be carried out according to approved contents after approval by relevant departments; and they shall not engage in business activities of projects prohibited or restricted by the city’s industrial policy. ) sales of health food and prepackaged food; sales of Class II, Class III medical devices; production of electronic products, photographic equipment, computer hardware and software and auxiliary equipment, household appliances; warehousing service; labor dispatch; assemble computers; book sales; wholesale of packaged seeds, fertilizers and pesticides (excluding hazardous chemicals and pesticides); retail bulk food (including aquatic products), dairy products (including infant formula milk powder). Party B1, Party B2, Party B3 and Party B4 respectively hold 31.2973%, 0.0321%, 0.0039% and 68.6667% of Party C’s equity interests. Party C acknowledges the respective rights and obligations of the Pledgers and the Pledgee hereunder and agrees to provide any necessary assistance for the registration of the Pledge;

 

 

2.                        The Pledgee is a wholly foreign-owned enterprise registered in Beijing, China. The Pledgee and Party C entered into an Exclusive Business Cooperation Agreement (“Exclusive Business Cooperation Agreement”) on November 4, 2014; the Pledgee entered into an Exclusive Purchase Option Contract (“Exclusive Purchase Option Contract”) with the Pledgers and Party C on March 1, 2016; the Pledgers and Pledgee signed an Power of Attorney Agreement (“Power of Attorney Agreement”) on May 29, 2018; The Pledgee, XIAO Wenjie and Shenzhen Xinjie Investment Co., Ltd. signed an Loan Contact(“Loan Contact”) on May 29, 2018.

 

3.                        To ensure the performance by Party C and the Pledgers of their obligations under the Exclusive Business Cooperation Agreement, Exclusive Purchase Option Contract, Power of Attorney Agreement (collectively referred to as “Transaction Documents”), the Pledgers pledge with the Pledgee all of their equity in Party C as security for the performance of the Exclusive Business Cooperation Agreement, the Exclusive Purchase Option Contract, and the Power of Attorney Agreement by Party C and the Pledgers.

 

To perform the provisions of the Transaction Documents, the Parties hereby agree as follows through mutual negotiations.

 

1.                          Definitions

 

Unless otherwise specified herein, the terms below shall have the following meanings:

 

1.1                 “Pledge”: shall refer to the security interest created by the Pledgers in favor of the Pledgee pursuant to Section 2 of this Contract, i.e., the right of the Pledgee to be paid in priority from the proceeds from the transfer, auction or sale of the Equity Interest.

 

1.2                 “Equity Interest”: shall refer to all equity interests currently held by and hereafter acquired by the Pledgers in Party C.

 

1.3                 “Term of Pledge”: shall refer to the term set forth in Section 3 of this Contract.

 

1.4                 “Transaction Documents”: shall refer to the Exclusive Business Cooperation Agreement, the Exclusive Purchase Option Contract, the Power of Attorney Agreement and any revision, amendment and/or restatement thereto.

 

1.5                 “Contractual Obligations”: shall refer to all the obligations of the Pledgers under the Exclusive Purchase Option Contract, the Power of Attorney Agreement and this Contract; as well as all the obligations of Party C under the Exclusive Business Cooperation Agreement, the Exclusive Purchase Option Contract and this Contract.

 

2

 

1.6                 “Secured Indebtedness”: shall refer to any and all direct, indirect, derivative losses and losses of predictable benefits incurred due to any default by the Pledgers and/or Party C, the amount of which shall be determined based on the pledgee’s reasonable business plan and profit forecast; service fees payable by Party C under the Exclusive Business Cooperation Agreement; and all costs and expenses incurred by the Pledgee in enforcing the Pledgers and/or Party C to perform their contractual obligations.

 

1.7                 “Event of Default”: shall refer to any of the circumstances as enumerated in Section 7 of this Contract.

 

1.8                 “Notice of Default”: shall refer to the notice issued by the Pledgee in accordance with this Contract declaring an Event of Default.

 

2.                          Pledge

 

2.1                 The Pledgers agree to pledge all the Equity Interest that it lawfully owns and has the right to dispose of to the Pledgee as security for payment of the Secured Indebtedness under this Contract, and Party C hereby assents to such pledge.

 

2.2                 During the Term of Pledge, the Pledgee is entitled to receive dividends distributed on the Equity Interest. The Pledgers may receive dividends distributed on the Equity Interest only with prior written consent of the Pledgee. Dividends received by the Pledgers on Equity Interest shall be, as required by the Pledgee, (1) deposited into an account designated and supervised by the Pledgee and applied first to pay the Secured Indebtedness; or (2) unconditionally donated to the Pledgee or any other person designated by the Pledgee to the extent permitted under applicable PRC laws.

 

2.3                 The Pledgers may subscribe for capital increase in Party C only with prior written consent of the Pledgee. Any equity interest obtained by the Pledgers as a result of the Pledgers’ subscription of the increased registered capital of the Company shall also be deemed as Equity Interest.

 

2.4                 In the event that Party C is to be liquidated or dissolved under compulsory laws of China, any interest distributed to the Pledgers upon Party C’s dissolution or liquidation shall, at the request of the Pledgee, be (i) deposited into an account designate and supervised by the Pledgee and applied first to pay the Secured Indebtedness; or (ii) unconditionally donated to the Pledgee or any other person designated by the Pledgee to the extent permitted under applicable PRC laws.

 

3.                          Term of Pledge

 

3.1              The Pledge shall become effective on such date when it is registered with competent administration for industry and commerce (the “AIC”) at the location of Party C. The Pledge shall remain effective until full discharge of all Contractual Obligations. All Parties agree that the Pledgers and Party C shall (i) register the Pledge in the shareholders’ register of Party C within 3 business days following execution of this Contract, and (ii) submit an application to the AIC for the registration of the Pledge of the Equity Interest contemplated herein within 30 business days following the execution of this Contract. The Pledgers and Party C shall submit to the AIC all necessary documents and complete all necessary formalities to ensure that the Pledge of the Equity Interest shall be registered with the AIC as soon as possible.

 

3.2              During the Term of Pledge, in the event that the Pledgers and/or Party C fail to perform the Contractual Obligations, the Pledgee shall have the right, but not the obligation, to dispose of the Pledge in accordance with the provisions of this Contract.

 

3

 

4.                          Custody of Equity Interest Records

 

4.1                 During the Term of Pledge, the Pledgers shall deliver to the Pledgee’s custody the capital contribution certificate for the Equity Interest and the shareholders’ register indicating the Pledge within one week following execution of this Contract. The Pledgee shall have custody of such documents during the entire Term of Pledge.

 

4.2                 During the Term of Pledge, the Pledgers shall have the right to collect dividends accrued on the Equity Interest.

 

5.                          Representations and Warranties of the Pledgers and Party C

 

As of the execution date of this Contract, the Pledgers and Party C hereby jointly and severally represent and warrant to the Pledgee that:

 

5.1                 The Pledgers are the sole legal and beneficial owner of the Equity Interest.

 

5.2                 Except for the Pledge, the Pledgers have not created any security interest or other encumbrance on the Equity Interest.

 

5.3                 The Pledgee shall have the right to dispose of and transfer the Equity Interest in accordance with the provisions of this Contract.

 

5.4                 The Pledgers and Party C have obtained any and all approvals and consents from competent government authorities and third parties (if required) for execution, delivery and performance of this Contract.

 

5.5                 The execution, delivery and performance of this Contract will not: (i) violate any relevant PRC laws; (ii) conflict with Party C’s articles of association or other constitutional documents; (iii) result in any breach of or constitute any default under any contract or instrument to which it is a party or by which it is otherwise bound; (iv) result in any violation of any condition for the grant and/or maintenance of any permit or approval granted to any Party; or (v) cause any permit or approval granted to any Party to be suspended, cancelled or imposed with additional conditions.

 

6.                          Covenants and Further Agreement of the Pledgers and Party C

 

6.1                 During the term of this Contract, the Pledgers and Party C hereby jointly and severally covenant to the Pledgee that the Pledgers and Party C:

 

6.1.1                shall not transfer the Equity Interest, create or permit the existence of any security interest or other encumbrance on the Equity Interest, without the prior written consent of the Pledgee, except for the purposes of the performance of the Transaction Documents;

 

6.1.2                shall promptly notify the Pledgee of any event or notice received by the Pledgers that may have an impact on the Equity Interest or any portion thereof, as well as any event or notice received by the Pledgers that may have an impact on any guarantees and other obligations of the Pledgers hereunder.

 

6.2                 The Pledgers agree that the rights acquired by the Pledgee in accordance with this Contract with respect to the Pledge shall not be interrupted or jeopardized by the Pledgers or any heirs or representatives of the Pledgers or any other persons through any legal proceedings.

 

4

 

6.3                 To protect or perfect the security hereunder for the Contractual Obligations and Secured Indebtedness, the Pledgers hereby undertakes to execute in good faith and to cause other parties who have an interest in the Pledge to execute all such certificates, contracts, deeds and/or covenants, and take all such actions as required by the Pledgee, to facilitate the exercise by the Pledgee of its rights and authority hereunder, to enter into all relevant documents regarding ownership of Equity Interest with the Pledgee or assignee(s) of the Pledgee (natural persons/legal persons), and to provide the Pledgee within a reasonable time with all notices, orders and decisions regarding the Pledge that the Pledgee deems necessary.

 

6.4                 The Pledgers hereby undertakes to comply with and perform all guarantees, promises, agreement, representations and conditions of and under this Contract. In the event of failure or partial performance of such guarantees, promises, agreements, representations and conditions, the Pledgers shall indemnify the Pledgee for all losses resulting therefrom.

 

7.                          Event of Breach

 

7.1                 The following circumstances shall be deemed Event of Default:

 

7.1.1                The Pledgers and/or Party B breach any obligations under the Transaction Documents and/or this Contract;

 

7.1.2                The Pledgers have serious misstatement or mistake in any statement or warranty made in Section 5 of this Contract and/or the Pledgers violate any warranty in Section 5 of this Contract;

 

7.1.3                The Pledgers and Party C fail to complete the registration of equity pledge with the registration authority in accordance with Section 3.1.

 

7.1.4                The Pledgers and Party C violate any provision of this Contract;

 

7.1.5                Except otherwise clearly stipulated in Section 6.1.1, the Pledgers transfer or intend to transfer or surrender the Equity Interest or assign the Equity Interest without the Pledgee’s written consent;

 

7.1.6                The Pledgers (i) are required to repay or perform in advance or (ii) fails to repay or perform upon maturity any debt obligations owed to any third party such as loan, guarantee, indemnification and promise;

 

7.1.7                Any government approval, license, permit or authorization that renders this Contract enforceable, lawful and valid is withdrawn, terminated, invalid or substantially changed;

 

7.1.8                The enactment of governing laws renders this Contract unlawful or makes the Pledgers unable to continue performing its obligations hereunder;

 

7.1.9                The Pledgers’ assets experience negative change to the extent that affects the Pledgers’ ability to perform its obligations hereunder;

 

7.1.10         Party B’s heirs or custodians only partially perform or refuse to perform their payment obligations under the Transaction Documents;

 

7.1.11         Any other circumstance where the Pledgers cannot or possibly cannot exercise its rights over the Pledge.

 

7.2                 Upon notice or discovery of the occurrence of any circumstances or event that may lead to the aforementioned circumstances described in Section 7.1, the Pledgers shall immediately notify the Pledgee in writing accordingly.

 

5

 

7.3                 Unless an Event of Default set forth in this Section 7.1 has been successfully resolved to the Pledgee’s satisfaction, the Pledgee may issue a Notice of Default to the Pledgers upon the occurrence of the Event of Default or at any time thereafter, demanding the Pledgers and/or Party C to immediately perform their due obligations under the Transaction Documents and/or dispose of the Pledge in accordance with Section 8 of this Contract.

 

8.                          Exercise of Pledge

 

8.1                 When the Pledgers and Party C are yet to fully perform their Contractual Obligations under the Transaction Documents, the Pledgers shall not transfer the Pledge or its Equity Interest in Party C without the Pledgee’s written consent.

 

8.2                 The Pledgee may issue a written Notice of Default to the Pledgers when it exercises the Pledge.

 

8.3                 Subject to the provisions of Section 7.3, the Pledgee may exercise the right to enforce the Pledge at any time after the issuance of the Notice of Default in accordance with Section 8.2. Once the Pledgee elects to exercise the right to dispose the Pledge, the Pledgers shall cease to be entitled to any rights or interests associated with the Equity Interest.

 

8.4                 The Pledgee shall the have right to be paid in priority with all or part of the Equity Interest from the proceeds from the transfer, auction or sale of the Equity Interest until the complete compensation of all outstanding payments due under the Transaction Documents and all other due payments to the Pledgee. The Pledgee shall not be liable for any loss incurred by its due exercise of such rights and powers.

 

8.5                 The Pledgee may exercise any remedy available simultaneously or in any order. The Pledgee may exercise the right to be paid in priority with the Equity Interest from the proceeds from auction or sale of the Equity Interest under this Contract, without recourse to any other remedy measure first.

 

8.6                 When the Pledgee disposes of the Pledge in accordance with this Contract, the Pledgers and Party C shall provide necessary assistance to enable the Pledgee to enforce the Pledge in accordance with this Contract.

 

9.                          Assignment

 

9.1                 Without the Pledgee’s prior written consent, the Pledgers shall not assign or delegate their rights and obligations under this Contract.

 

9.2                 This Contract shall be binding on the Pledgers and his/her successors and permitted assignees, and shall be valid with respect to the Pledgee and each of his/her successors and assignees.

 

9.3                 The Pledgee may at any time assign any and all of its rights and obligations under the Transaction Documents to its assignee(s) (natural persons/legal persons), in which case the assignee shall enjoy and undertake the rights and obligations of the Pledgee under this Contract, as if it were the original party to this Contract. When the assignee transfers its rights and obligations under the Transaction Documents, the Pledgers shall execute relevant agreements or other documents related to such transfer as required by the Pledgee.

 

9.4                 In the event of change of the Pledgee due to assignment, the Pledgers shall, at the request of the Pledgee, execute a new pledge contract with the new the Pledgee on the same terms and conditions as this Contract.

 

6

 

9.5                 The Pledgers shall strictly abide by the provisions of this Contract and other contracts jointly or separately executed by all or any of the Parties hereto, including the Exclusive Purchase Option Contract and the Power of Attorney Agreement, perform the obligations hereunder and thereunder, and refrain from any action/omission that may affect the effectiveness and enforceability hereof and thereof. Any residual rights of the Pledgers with respect to the Equity Pledged hereunder shall not be exercised by the Pledgers except in accordance with the written instructions of the Pledgee.

 

10.                   Termination

 

Upon the sufficient and complete fulfillment of all Contractual Obligations and the full payment of all Secured Indebtedness by the Pledgers and Party C, this Contract shall be terminated and the Pledgee shall terminate this Contract within reasonable and effective scope.

 

Sections 10, 12 and 14 of this Contract shall survive the expiration or termination of this Contract.

 

11.                   Handling Fees and Other Expenses

 

All fees and out of pocket expenses relating to this Contract, including but not limited to legal costs, costs of production, stamp tax and any other taxes and fees, shall be borne by Party C. If the Pledgee is required under applicable laws to bear certain taxes and fees, the Pledgers shall cause Party C to reimburse in full such taxes and fees paid by the Pledgee.

 

12.                 Confidentiality

 

The Parties acknowledge that any oral or written information exchanged between the Parties in connection with the preparation and performance this Contract constitute confidential information. Each Party shall maintain confidentiality of all such confidential information, and without obtaining the written consent of the other Party, it shall not disclose any relevant confidential information to any third parties, except for the information that: (i) is or becomes available to the general public (other than through the receiving Party’s unauthorized disclosure); (ii) is required to be disclosed by applicable laws or regulations or rules or regulations of any stock exchange; or (iii) is necessary to be disclosed by any Party to its legal counsels or financial advisors regarding the transaction contemplated hereunder, provided that such legal counsels or financial advisors shall be bound by the confidentiality obligations similar to those set forth in this Section. Disclosure of any confidential information by the employees of or agencies engaged by any Party shall be deemed disclosure by such Party itself and such Party shall be held liable for breach of this Contract. This Section shall survive the termination of this Agreement for any reason.

 

13.                 Governing Law and Dispute Resolution

 

13.1          The execution, effectiveness, construction, performance, amendment and termination of this Contract and the dispute resolution hereunder shall be governed by the promulgated and publicly available laws of China. For matters not covered by the promulgated and publicly available laws of China, the principles and practices of international laws shall apply.

 

13.2          In the event of any dispute with respect to the construction and performance of this Contract, the Parties shall first resolve the dispute through friendly negotiations. In the event the Parties fail to reach an agreement within 30 days after either Party requests to the other Parties for resolution of the dispute through negotiations, either Party may submit the relevant dispute to the China International Economic and Trade Arbitration Commission (CIETAC) for arbitration in accordance with its then effective Arbitration Rules. The arbitration shall be conducted in Beijing. The language of arbitration shall be Chinese. The arbitration award shall be final and binding on all Parties.

 

7

 

13.3          Upon occurrence of any disputes arising from the construction and performance of this Agreement or pending arbitration of any dispute, except for the matters under dispute, the Parties shall continue to exercise their respective rights and perform their respective obligations hereunder.

 

14.                 Notices

 

14.1          All notices and other communications required or permitted to be given pursuant to this Agreement shall be delivered personally or sent by registered mail with postage prepaid, commercial courier service or facsimile transmission to the address of such Party set forth below. Each notice shall be followed by a confirmation copy sent by email. The dates on which notices shall be deemed to have been effectively given shall be determined as follows:

 

14.1.1         Notices given by personal delivery, courier service, registered mail with postage prepaid shall be deemed effectively given on the date of receipt or rejection at the address specified for notices.

 

14.1.2         Notices given by facsimile transmission shall be deemed effectively given on the date of successful transmission (as evidenced by an automatically generated confirmation of transmission).

 

14.2          The addresses of the Parties for receiving notices are as follows:

 

	
Party A:
    	
 
    	
Beijing Shijitong Technology Co., Ltd.
    
	
Address:
    	
 
    	
27/F CES Tower, No. 3099 Keyuan South Road,   Nanshan District, Shenzhen
    
	
Attn:
    	
 
    	
XIAO Wenjie
    
	
Tel.:
    	
 
    	
0755-36378888
    
	
 
    	
 
    	
 
    
	
Party B:
    	
 
    	
 
    
	
Address:
    	
 
    	
27/F CES Tower, No. 3099 Keyuan South Road,   Nanshan District, Shenzhen
    
	
Tel.:
    	
 
    	
0755-36378888
    
	
 
    	
 
    	
 
    
	
Party C:
    	
 
    	
Shenzhen Fenqile Network Technology   Co., Ltd.
    
	
Address:
    	
 
    	
27/F CES Tower, No. 3099 Keyuan South Road,   Nanshan District, Shenzhen
    
	
Attn:
    	
 
    	
XIAO Wenjie
    
	
Tel.:
    	
 
    	
0755-36378888
    

 

14.3          Any Party may at any time change its address for notices by a notice delivered to the other Parties in accordance with the terms hereof.

 

8

 

15.                 Severability

 

In the event that one or several provisions hereof are found to be invalid, illegal or  unenforceable in any aspect in accordance with any laws or regulations, the validity, legality or enforceability of the remaining provisions of this Agreement shall not be affected or compromised in any aspect. The Parties shall negotiate in good faith to replace such invalid, illegal or unenforceable provisions with effective provisions that accomplish to the greatest extent permitted by law the intentions of the Parties, and the economic effect of such effective provisions shall be as close as possible to the economic effect of those invalid, illegal or unenforceable provisions.

 

16.                 Schedules

 

The schedules hereto shall form an integral part of this Contract.

 

17.                 Effectiveness

 

17.1          This Contract shall come into force upon being signed by the Parties. Any amendment, change and supplement to this Contract shall be made in written form and become effective after being signed and stamped by the Parties and upon the completion of the registration with the government (if applicable).

 

17.2          This Contract is written in Chinese and English in six counterparts of equal legal force, with each Party holding one.

 

17.3          The Equity Pledge Contract signed by the Parties on March 1, 2016 shall be automatically terminated as at the execution date hereof.

 

[Signature page follows]

 

9

 

IN WITNESS WHEREOF, the Parties have caused their authorized representatives to execute this Equity Pledge Contract as of the date first above written.

 

	
Party A:
    	
 
    	
Beijing Shijitong Technology Co., Ltd.
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
/s/ XIAO Wenjie
    	
 
    
	
Name:
    	
 
    	
XIAO Wenjie
    	
 
    
	
Title:
    	
 
    	
Legal Representative
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Party B:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
/s/ XIAO Wenjie
    	
 
    
	
Name:
    	
 
    	
XIAO Wenjie
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
/s/ LIU Qiangdong
    	
 
    
	
Name:
    	
 
    	
LIU Qiangdong
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Tibet   Xianfeng Changqing Start-up Investment and Management Co., Ltd.
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
/s/ CHEN Keyi
    	
 
    
	
Name:
    	
 
    	
CHEN Keyi
    	
 
    
	
Title:
    	
 
    	
Legal Representative
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Shenzhen   Xinjie Investment Co., Ltd.
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
/s/ XIAO Wenjie
    	
 
    
	
Name:
    	
 
    	
XIAO Wenjie
    	
 
    
	
Title:
    	
 
    	
Legal Representative
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Party C:
    	
 
    	
Shenzhen Fenqile Network Technology   Co., Ltd.
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
/s/ XIAO Wenjie
    	
 
    
	
Name:
    	
 
    	
XIAO Wenjie
    	
 
    
	
Title:
    	
 
    	
Legal Representative
    	
 
    

 

 

Schedules

 

1.                        Capital Contribution Certificate

 

2.                        Shareholders’ Register of Shenzhen Fenqile Network Technology Co., Ltd.

 

 

Schedule 1

 

Capital Contribution Certificate

 

This is to certify that XIAO Wenjie (ID No. ******************) has subscribed to the contribution of RMB 469,458,986.00, thus holding 31.2973% equity interest of Shenzhen Fenqile Network Technology Co., Ltd. and that all of such 31.2973% equity interest has been pledged to Beijing Shijitong Technology Co., Ltd.

 

	
 
    	
Company:
    	
Shenzhen   Fenqile Network Technology Co., Ltd.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ XIAO Wenjie
    
	
 
    	
Name:
    	
XIAO Wenjie
    
	
 
    	
Title:
    	
Legal Representative
    
	
 
    	
Date:
    	
May 29, 2018
    

 

 

Schedule 1

 

Capital Contribution Certificate

 

This is to certify that LIU Qiangdong (ID No. ******************) has subscribed to the contribution of RMB 482,190.00, thus holding 0.0321% equity interest of Shenzhen Fenqile Network Technology Co., Ltd. and that all of such 0.0321% equity interest has been pledged to Beijing Shijitong Technology Co., Ltd.

 

	
 
    	
Company:
    	
Shenzhen   Fenqile Network Technology Co., Ltd.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ XIAO Wenjie
    
	
 
    	
Name:
    	
XIAO Wenjie
    
	
 
    	
Title:
    	
Legal Representative
    
	
 
    	
Date:
    	
May 29, 2018
    

 

 

Schedule 1

 

Capital Contribution Certificate

 

This is to certify that Tibet Xianfeng Changqing Start-up Investment and Management Co., Ltd. (Unified Social Credit Code: 91540000585773438E) has subscribed to the contribution of RMB 58,824.00, thus holding 0.0039% equity interest of Shenzhen Fenqile Network Technology Co., Ltd. and that all of such 0.0039% equity interest has been pledged to Beijing Shijitong Technology Co., Ltd.

 

	
 
    	
Company:
    	
Shenzhen   Fenqile Network Technology Co., Ltd.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ XIAO Wenjie
    
	
 
    	
Name:
    	
XIAO Wenjie
    
	
 
    	
Title:
    	
Legal Representative
    
	
 
    	
Date:
    	
May 29, 2018
    

 

 

Schedule 1

 

Capital Contribution Certificate

 

This is to certify that Shenzhen Xinjie Investment Co., Ltd. (Unified Social Credit Code: 91440300359619977T) has subscribed to the contribution of RMB 1,030,000,000.00, thus holding 68.6667% equity interest of Shenzhen Fenqile Network Technology Co., Ltd. and that all of such 68.6667% equity interest has been pledged to Beijing Shijitong Technology Co., Ltd.

 

	
 
    	
Company:
    	
Shenzhen   Fenqile Network Technology Co., Ltd.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ XIAO Wenjie
    
	
 
    	
Name:
    	
XIAO Wenjie
    
	
 
    	
Title:
    	
Legal Representative
    
	
 
    	
Date:
    	
May 29, 2018
    

 

 

Schedule 2

 

Shareholders’ Register

of

Shenzhen Fenqile Network Technology Co., Ltd.

 

	
Shareholder’s
   name
    	
 
    	
ID No. /
   Registration No.
    	
 
    	
Amount of
   Subscription
   (RMB)
    	
 
    	
Ratio of
   Contribution
    	
 
    	
Equity Pledge
    
	
XIAO Wenjie
    	
 
    	
******************
    	
 
    	
469,458,986.00
    	
 
    	
31.2973%
    	
 
    	
XIAO Wenjie owns 31.2973% equity interest of   Shenzhen Fenqile Network Technology Co., Ltd. and all of such 31.2973%   equity interest has been pledged to Beijing Shijitong Technology Co., Ltd.
    
	
LIU Qiangdong
    	
 
    	
******************
    	
 
    	
482,190.00
    	
 
    	
0.0321%
    	
 
    	
LIU Qiangdong owns 0.0321% equity interest of   Shenzhen Fenqile Network Technology Co., Ltd. and all of such 0.0321%   equity interest has been pledged to Beijing Shijitong Technology Co., Ltd.
    
	
Tibet Xianfeng Changqing Start-up Investment and   Management Co., Ltd.
    	
 
    	
91540000585773438E
    	
 
    	
58,824.00
    	
 
    	
0.0039%
    	
 
    	
Tibet Xianfeng Changqing Start-up Investment and   Management Co., Ltd. owns 0.0039% equity interest of Shenzhen Fenqile   Network Technology Co., Ltd. and all of such 0.0039% equity interest has   been pledged to Beijing Shijitong Technology Co., Ltd.
    
	
Shenzhen Xinjie Investment Co., Ltd.
    	
 
    	
91440300359619977T
    	
 
    	
1,030,000,000.00
    	
 
    	
68.6667%
    	
 
    	
Shenzhen Xinjie Investment Co., Ltd. owns 68.6667%   equity interest of Shenzhen Fenqile Network Technology Co., Ltd. and all   of such 68.6667% equity interest has been pledged to Beijing Shijitong   Technology Co., Ltd.
    

 

	
Company:
    	
Shenzhen   Fenqile Network Technology Co., Ltd.
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ XIAO Wenjie
    	
 
    
	
Name:
    	
XIAO Wenjie
    	
 
    
	
Title:
    	
Legal Representative
    	
 
    

 

 

	
Shareholder:
    	
XIAO   Wenjie
    	
 
    	
Shareholder:
    	
LIU   Qiangdong
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Signature:
    	
/s/ XIAO Wenjie
    	
 
    	
Signature:
    	
/s/ LIU   Qiangdong
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shareholder:
    	
Tibet Xianfeng   Changqing Start-up Investment and Management Co., Ltd.
    	
 
    	
Shareholder:
    	
Shenzhen Xinjie   Investment Co., Ltd.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/ CHEN Keyi
    	
 
    	
By:
    	
/s/ XIAO Wenjie
    
	
Name:
    	
CHEN   Keyi
    	
 
    	
Name:
    	
XIAO   Wenjie
    
	
Title:
    	
Legal Representative
    	
 
    	
Title:
    	
Legal Representative
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
May 29, 2018

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00295-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00295-of-00352.parquet"}]]