Document:

Form of Deposit Agreement

 Exhibit 4.3 
 

 
 J.P.Morgan 

 TABLE OF CONTENTS 
  

					
	 	  	Page
	 PARTIES
	  	1
	 RECITALS
	  	1
	 Section 1.
	  	Certain Definitions	  	
	   (a)
	  	        ADR Register	  	1
	   (b)
	  	        ADRs; Direct Registration ADRs	  	1
	   (c)
	  	        ADS	  	1
	   (d)
	  	        Custodian	  	1
	   (e)
	  	        Deliver, execute, issue et al.	  	1
	   (f)
	  	        Delivery Order	  	1
	   (g)
	  	        Deposited Securities	  	1
	   (h)
	  	        Direct Registration System	  	2
	   (i)
	  	        Holder	  	2
	   (j)
	  	        Securities Act of 1933	  	2
	   (k)
	  	        Securities Exchange Act of 1934	  	2
	   (l)
	  	        Shares	  	2
	   (m)
	  	        Transfer Office	  	2
	   (n)
	  	        Withdrawal Order	  	2
	 Section 2.
	  	ADRs	  	2
	 Section 3.
	  	Deposit of Shares	  	3
	 Section 4.
	  	Issue of ADRs	  	3
	 Section 5.
	  	Distributions on Deposited Securities	  	4
	 Section 6.
	  	Withdrawal of Deposited Securities	  	4
	 Section 7.
	  	Substitution of ADRs	  	4
	 Section 8.
	  	Cancellation and Destruction of ADRs, Maintenance of Records	  	4
	 Section 9.
	  	The Custodian	  	5
	 Section 10.
	  	Co-Registrars and Co-Transfer Agents	  	5
	 Section 11.
	  	Lists of Holders	  	5
	 Section 12.
	  	Depositary's Agents	  	5
	 Section 13.
	  	Successor Depositary	  	6
	 Section 14.
	  	Reports	  	6
	 Section 15.
	  	Additional Shares	  	7
	 Section 16.
	  	Indemnification	  	7
	 Section 17.
	  	Notices	  	8
	 Section 18.
	  	Miscellaneous	  	8
	 Section 19.
	  	Consent to Jurisdiction	  	8
	 TESTIMONIUM
	  	8
	 SIGNATURES
	  	11

  

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	 	  	Page
	EXHIBIT A	  	
	 FORM OF FACE OF ADR
	  	A-1
		
	 Introductory Paragraph
	  	A-1
		
	 (1)    Issuance of ADRs and Pre-Release of ADRs
	  	A-2
	 (2)    Withdrawal of Deposited Securities
	  	A-3
	 (3)    Transfers of ADRs
	  	A-3
	 (4)    Certain Limitations
	  	A-4
	 (5)    Taxes
	  	A-4
	 (6)    Disclosure of Interests
	  	A-5
	 (7)    Charges of Depositary
	  	A-6
	 (8)    Available Information
	  	A-7
	 (9)    Execution
	  	A-7
		
	 Signature of Depositary
	  	A-8
		
	 Address of Depositary’s Office
	  	A-8
		
	 FORM OF REVERSE OF ADR
	  	A-8
		
	 (10)  Distributions on Deposited Securities
	  	A-8
	 (11)  Record Dates
	  	A-9
	 (12)  Voting of Deposited Securities
	  	A-9
	 (13)  Changes Affecting Deposited Securities
	  	A-10
	 (14)  Exoneration
	  	A-10
	 (15)  Resignation and Removal of Depositary; the Custodian
	  	A-11
	 (16)  Amendment
	  	A-12
	 (17)  Termination
	  	A-12
	 (18)  Appointment
	  	A-13
	 (19)  Waiver
	  	A-13

  

 - ii - 

 DEPOSIT AGREEMENT dated as of [DATE] , 2010 (the “Deposit Agreement”) among DAQO
NEW ENERGY CORP. and its successors (the “Company”), JPMORGAN CHASE BANK, N.A., as depositary hereunder (the “Depositary”), and all holders from time to time of American Depositary Receipts issued hereunder (“ADRs”)
evidencing American Depositary Shares (“ADSs”) representing deposited Shares (defined below). The Company hereby appoints the Depositary as depositary for the Deposited Securities and hereby authorizes and directs the Depositary to act in
accordance with the terms set forth in this Deposit Agreement. All capitalized terms used herein have the meanings ascribed to them in Section 1 or elsewhere in this Deposit Agreement. The parties hereto agree as follows: 
 1. Certain Definitions. 
 (a) “ADR Register” is defined in paragraph (3) of the form of ADR. 
 (b) “ADRs” mean the American Depositary Receipts executed and delivered hereunder. ADRs may be either in physical certificated form or Direct Registration ADRs. ADRs in physical certificated form, and the terms and
conditions governing the Direct Registration ADRs (as hereinafter defined), shall be substantially in the form of Exhibit A annexed hereto (the “form of ADR”). The term “Direct Registration ADR” means an ADR, the
ownership of which is recorded on the Direct Registration System. References to “ADRs” shall include certificated ADRs and Direct Registration ADRs, unless the context otherwise requires. The form of ADR is hereby incorporated herein and
made a part hereof; the provisions of the form of ADR shall be binding upon the parties hereto. 
 (c) Subject to paragraph
(13) of the form of ADR, each “ADS” evidenced by an ADR represents the right to receive six Shares and a pro rata share in any other Deposited Securities. 
 (d) “Custodian” means the agent or agents of the Depositary (singly or collectively, as the context requires) and any additional or substitute Custodian appointed pursuant to
Section 9. 
 (e) The terms “deliver”, “execute”, “issue”,
“register”, “surrender”, “transfer” or “cancel”, when used with respect to Direct Registration ADRs, shall refer to an entry or entries or an electronic transfer or transfers in the
Direct Registration System, and, when used with respect to ADRs in physical certificated form, shall refer to the physical delivery, execution, issuance, registration, surrender, transfer or cancellation of certificates representing the ADRs.

 (f) “Delivery Order” is defined in Section 3. 
 (g) “Deposited Securities” as of any time means all Shares at such time deposited under this Deposit Agreement and any and
all

  

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other Shares, securities, property and cash at such time held by the Depositary or the Custodian in respect or in lieu of such deposited Shares and other Shares, securities, property and cash.

 (h) “Direct Registration System” means the system for the uncertificated registration of ownership of
securities established by The Depository Trust Company (“DTC”) and utilized by the Depositary pursuant to which the Depositary may record the ownership of ADRs without the issuance of a certificate, which ownership shall be
evidenced by periodic statements issued by the Depositary to the Holders entitled thereto. For purposes hereof, the Direct Registration System shall include access to the Profile Modification System maintained by DTC which provides for automated
transfer of ownership between DTC and the Depositary. 
 (i) “Holder” means the person or persons in whose name
an ADR is registered on the ADR Register. 
 (j) “Securities Act of 1933” means the United States Securities
Act of 1933, as from time to time amended. 
 (k) “Securities Exchange Act of 1934” means the United States
Securities Exchange Act of 1934, as from time to time amended. 
 (l) “Shares” mean the ordinary shares of the
Company, and shall include the rights to receive Shares specified in paragraph (1) of the form of ADR. 
 (m)
“Transfer Office” is defined in paragraph (3) of the form of ADR. 
 (n) “Withdrawal
Order” is defined in Section 6. 
 2. ADRs. (a) ADRs in certificated form shall be engraved, printed
or otherwise reproduced at the discretion of the Depositary in accordance with its customary practices in its American depositary receipt business, or at the request of the Company typewritten and photocopied on plain or safety paper, and shall be
substantially in the form set forth in the form of ADR, with such changes as may be required by the Depositary or the Company to comply with their obligations hereunder, any applicable law, regulation or usage or to indicate any special limitations
or restrictions to which any particular ADRs are subject. ADRs may be issued in denominations of any number of ADSs. ADRs in certificated form shall be executed by the Depositary by the manual or facsimile signature of a duly authorized officer of
the Depositary. ADRs in certificated form bearing the facsimile signature of anyone who was at the time of execution a duly authorized officer of the Depositary shall bind the Depositary, notwithstanding that such officer has ceased to hold such
office prior to the delivery of such ADRs. 
  

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 (b) Direct Registration ADRs. Notwithstanding anything in this Deposit Agreement or
in the form of ADR to the contrary, ADSs shall be evidenced by Direct Registration ADRs, unless certificated ADRs are specifically requested by the Holder. 
 (c) Holders shall be bound by the terms and conditions of this Deposit Agreement and of the form of ADR, regardless of whether their ADRs are Direct Registration ADRs or certificated ADRs. 
 3. Deposit of Shares. In connection with the deposit of Shares hereunder, the Depositary or the Custodian may require the following
in form satisfactory to it: (a) a written order directing the Depositary to issue to, or upon the written order of, the person or persons designated in such order a Direct Registration ADR or ADRs evidencing the number of ADSs representing such
deposited Shares (a “Delivery Order”); (b) proper endorsements or duly executed instruments of transfer in respect of such deposited Shares; (c) instruments assigning to the Depositary, the Custodian or a nominee of either
any distribution on or in respect of such deposited Shares or indemnity therefor; and (d) proxies entitling the Custodian to vote such deposited Shares. As soon as practicable after the Custodian receives Deposited Securities pursuant to any
such deposit or pursuant to paragraph (10) or (13) of the form of ADR, the Custodian shall present such Deposited Securities for registration of transfer into the name of the Depositary, the Custodian or a nominee of either, to the extent
such registration is practicable, at the cost and expense of the person making such deposit (or for whose benefit such deposit is made) and shall obtain evidence satisfactory to it of such registration. Deposited Securities shall be held by the
Custodian for the account and to the order of the Depositary at such place or places and in such manner as the Depositary shall determine. Deposited Securities may be delivered by the Custodian to any person only under the circumstances expressly
contemplated in this Deposit Agreement. To the extent that the provisions of or governing the Shares make delivery of certificates therefor impracticable, Shares may be deposited hereunder by such delivery thereof as the Depositary or the Custodian
may reasonably accept, including, without limitation, by causing them to be credited to an account maintained by the Custodian for such purpose with the Company or an accredited intermediary, such as a bank, acting as a registrar for the Shares,
together with delivery of the documents, payments and Delivery Order referred to herein to the Custodian or the Depositary. 
 4. Issue of ADRs. After any such deposit of Shares, the Custodian shall notify the Depositary of such deposit and of the information contained in any related Delivery Order by letter, first class airmail postage prepaid, or, at the
request, risk and expense of the person making the deposit, by cable, telex or facsimile transmission. After receiving such notice from the Custodian, the Depositary, subject to this Deposit Agreement, shall properly issue at the Transfer Office, to
or upon the order of any person named in such notice, an ADR or ADRs registered as requested and evidencing the aggregate ADSs to which such person is entitled. 
  

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 5. Distributions on Deposited Securities. To the extent that the Depositary
determines in its reasonable discretion that any distribution pursuant to paragraph (10) of the form of ADR is not practicable with respect to any Holder, the Depositary may make such distribution as it so deems practicable, including the
distribution of foreign currency, securities or property (or appropriate documents evidencing the right to receive foreign currency, securities or property) or the retention thereof as Deposited Securities with respect to such Holder's ADRs (without
liability for interest thereon or the investment thereof). 
 6. Withdrawal of Deposited Securities. In connection with
any surrender of an ADR for withdrawal of the Deposited Securities represented by the ADSs evidenced thereby, the Depositary may require proper endorsement in blank of such ADR (or duly executed instruments of transfer thereof in blank) and the
Holder's written order directing the Depositary to cause the Deposited Securities represented by the ADSs evidenced by such ADR to be withdrawn and delivered to, or upon the written order of, any person designated in such order (a
“Withdrawal Order”). Directions from the Depositary to the Custodian to deliver Deposited Securities shall be given by letter, first class airmail postage prepaid, or, at the request, risk and expense of the Holder, by cable, telex
or facsimile transmission. Delivery of Deposited Securities may be made by the delivery of certificates (which, if required by law shall be properly endorsed or accompanied by properly executed instruments of transfer or, if such certificates may be
registered, registered in the name of such Holder or as ordered by such Holder in any Withdrawal Order) or by such other means as the Depositary may deem practicable, including, without limitation, by transfer of record ownership thereof to an
account designated in the Withdrawal Order maintained either by the Company or an accredited intermediary, such as a bank, acting as a registrar for the Deposited Securities. 
 7. Substitution of ADRs. The Depositary shall execute and deliver a new Direct Registration ADR in exchange and substitution for any
mutilated certificated ADR upon cancellation thereof or in lieu of and in substitution for such destroyed, lost or stolen certificated ADR, unless the Depositary has notice that such ADR has been acquired by a bona fide purchaser, upon the Holder
thereof filing with the Depositary a request for such execution and delivery and a sufficient indemnity bond and satisfying any other reasonable requirements imposed by the Depositary. 
 8. Cancellation and Destruction of ADRs; Maintenance of Records. All ADRs surrendered to the Depositary shall be cancelled by the
Depositary. The Depositary is authorized to destroy ADRs in certificated form so cancelled in accordance with its customary practices. 
 The Depositary agrees to maintain or cause its agents to maintain records of all ADRs surrendered and Deposited Securities withdrawn under Section 6 hereof and paragraph (2) of the form of ADR, substitute ADRs delivered under
Section 7 hereof, and canceled or destroyed ADRs under this Section 8, in keeping with the procedures ordinarily followed by stock transfer agents located in the City of New York or as required by the laws or regulations governing the
Depositary. 
  

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 9. The Custodian. Any Custodian in acting hereunder shall be subject to the
directions of the Depositary and shall be responsible solely to it. The Depositary shall be responsible for the compliance by the Custodian with any applicable provisions of the Deposit Agreement. The Depositary reserves the right to add, replace or
remove a Custodian. The Depositary will give prompt notice of any such action, which will be advance notice if practicable. Each Custodian so appointed (other than JPMorgan Chase Bank, N.A.) shall give written notice to the Company and the
Depositary accepting such appointment and agreeing to be bound by the applicable terms hereof. 
 Any Custodian may resign from
its duties hereunder by at least 30 days written notice to the Depositary. The Depositary may discharge any Custodian at any time upon notice to the Custodian being discharged. Any Custodian ceasing to act hereunder as Custodian shall deliver, upon
the instruction of the Depositary, all Deposited Securities held by it to a Custodian continuing to act. If upon the effectiveness of such resignation there would be no Custodian acting hereunder, the Depositary shall, promptly after receiving such
notice, appoint a substitute custodian or custodians, each of which shall thereafter be a Custodian hereunder. 
 10.
Co-Registrars and Co-Transfer Agents. The Depositary may appoint and remove (i) co-registrars to register ADRs and transfers, combinations and split-ups of ADRs and to countersign ADRs in accordance with the terms of any such appointment
and (ii) co-transfer agents for the purpose of effecting transfers, combinations and split-ups of ADRs at designated transfer offices in addition to the Transfer Office on behalf of the Depositary. Each co-registrar or co-transfer agent (other
than JPMorgan Chase Bank, N.A.) shall give notice in writing to the Company and the Depositary accepting such appointment and agreeing to be bound by the applicable terms of this Deposit Agreement. 
 11. Lists of Holders. The Company shall have the right to inspect transfer records of the Depositary and its agents and the ADR
Register, take copies thereof and require the Depositary and its agents to supply copies of such portions of such records as the Company may request. The Depositary or its agent shall furnish to the Company promptly upon the written request of the
Company, a list of the names, addresses and holdings of ADSs by all Holders as of a date within seven days of the Depositary's receipt of such request. 
 12. Depositary's Agents. The Depositary may perform its obligations under this Deposit Agreement through any agent appointed by it, provided that the Depositary shall notify the Company of such
appointment and shall remain responsible for the performance of such obligations as if no agent were appointed, subject to paragraph (14) of the form of ADR. 
  

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 13. Successor Depositary. The Depositary may at any time resign
as Depositary hereunder by written notice of its election so to do delivered to the Company, such resignation to take effect upon the appointment of a successor depositary and its acceptance of such appointment as hereinafter provided. The
Depositary may at any time be removed by the Company by providing no less than 90 days prior written notice of such removal to the Depositary, such removal to take effect the later of (i) the 90th day after such notice of removal is first provided and (ii) the appointment of a successor
depositary and its acceptance of such appointment as hereinafter provided. Notwithstanding the foregoing, if upon the resignation or removal of the Depositary a successor depositary is not appointed within the applicable 45-day period (in the case
of resignation) or 90-day period (in the case of removal) as specified in paragraph (17) of the form of ADR, then the Depositary may elect to terminate this Deposit Agreement and the ADR and the provisions of said paragraph (17) shall
thereafter govern the Depositary's obligations hereunder. In case at any time the Depositary acting hereunder shall resign or be removed, the Company shall use its best efforts to appoint a successor depositary, which shall be a bank or trust
company having an office in the Borough of Manhattan, The City of New York. Every successor depositary shall execute and deliver to its predecessor and to the Company an instrument in writing accepting its appointment hereunder, and thereupon such
successor depositary, without any further act or deed, shall become fully vested with all the rights, powers, duties and obligations of its predecessor. The predecessor depositary, only upon payment of all sums due to it and on the written request
of the Company, shall (i) execute and deliver an instrument transferring to such successor all rights and powers of such predecessor hereunder (other than its rights to indemnification and fees owing, each of which shall survive any such
removal and/or resignation), (ii) duly assign, transfer and deliver all right, title and interest to the Deposited Securities to such successor, and (iii) deliver to such successor a list of the Holders of all outstanding ADRs. Any such
successor depositary shall promptly mail notice of its appointment to such Holders. Any bank or trust company into or with which the Depositary may be merged or consolidated, or to which the Depositary shall transfer substantially all its American
depositary receipt business, shall be the successor of the Depositary without the execution or filing of any document or any further act. 
 14. Reports. On or before the first date on which the Company makes any communication available to holders of Deposited Securities or any securities regulatory authority or stock exchange, by
publication or otherwise, the Company shall transmit to the Depositary a copy thereof in English or with an English translation or summary. The Company has delivered to the Depositary, the Custodian and any Transfer Office, a copy of all provisions
of or governing the Shares and any other Deposited Securities issued by the Company and, promptly upon any change thereto, the Company shall deliver to the Depositary, the Custodian and any Transfer Office, a copy (in English or with an English
translation) of such provisions as so changed. The Depositary and its agents may rely upon the Company's delivery thereof for all purposes of this Deposit Agreement. 
  

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 15. Additional Shares. Neither the Company nor any company controlling, controlled by
or under common control with the Company shall issue additional Shares, rights to subscribe for Shares, securities convertible into or exchangeable for Shares or rights to subscribe for any such securities or shall deposit any Shares under this
Deposit Agreement, except under circumstances complying in all respects with the Securities Act of 1933. The Depositary will use reasonable efforts to comply with written instructions of the Company not to accept for deposit hereunder any Shares
identified in such instructions at such times and under such circumstances as may reasonably be specified in such instructions in order to facilitate the Company's compliance with securities laws in the United States. 
 16. Indemnification. The Company shall indemnify, defend and save harmless each of the Depositary and its agents against any loss,
liability or expense (including reasonable fees and expenses of counsel) which may arise out of acts performed or omitted, in connection with the provisions of this Deposit Agreement and of the ADRs, as the same may be amended, modified or
supplemented from time to time in accordance herewith by either the Depositary or its agents or their respective directors, employees, agents and affiliates, except, subject to the penultimate paragraph of this Section 16, for any liability or
expense directly arising out of the negligence or willful misconduct of the Depositary or its agents acting in their capacity as such hereunder. 
 The indemnities set forth in the preceding paragraph shall also apply to any liability or expense which may arise out of any misstatement or alleged misstatement or omission or alleged omission in any
registration statement, proxy statement, prospectus (or placement memorandum), or preliminary prospectus (or preliminary placement memorandum) relating to the offer or sale of ADSs, except to the extent any such liability or expense arises out of
(i) information relating to the Depositary or its agents (other than the Company), as applicable, furnished in writing by the Depositary and not changed or altered by the Company expressly for use in any of the foregoing documents or
(ii) if such information is provided, the failure to state a material fact necessary to make the information provided not misleading. 
 Except as provided in the next succeeding paragraph, the Depositary shall indemnify, defend and save harmless the Company against any loss, liability or expense (including reasonable fees and expenses of
counsel) incurred by the Company in respect of this Deposit Agreement to the extent such loss, liability or expense is due to the negligence or willful misconduct of the Depositary or its agents acting in their capacity as such hereunder.

 Notwithstanding any other provision of this Deposit Agreement or the ADRs to the contrary, neither the Company nor the
Depositary, nor any of their agents, shall be liable to the other for any indirect, special, punitive or consequential damages (collectively “Special Damages”) except (i) to the extent such Special Damages arise from the gross
negligence or willful misconduct

  

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of the party from whom indemnification is sought or (ii) to the extent Special Damages arise from or out of a claim brought by a third party (including, without limitation, Holders) against
the Depositary or its agents, except to the extent such Special Damages arise out of the gross negligence or willful misconduct of the party seeking indemnification hereunder 
 The obligations set forth in this Section 16 shall survive the termination of this Deposit Agreement and the succession or substitution
of any indemnified person. 
 17. Notices. Notice to any Holder shall be deemed given when first mailed, first class
postage prepaid, to the address of such Holder on the ADR Register or received by such Holder. Failure to notify a Holder or any defect in the notification to a Holder shall not affect the sufficiency of notification to other Holders or to the
beneficial owners of ADSs held by such other Holders. Notice to the Depositary or the Company shall be deemed given when first received by it at the address or facsimile transmission number set forth in (a) or (b), respectively, or at such
other address or facsimile transmission number as either may specify to the other by written notice: 
  

	 	(a)	JPMorgan Chase Bank, N.A. 

 Four
New York Plaza 
 New York, New York 10004 
 Attention: ADR Administration 
 Fax: (212) 623-0079 
  

	 	(b)	Daqo New Energy Corp. 

 666
Longdu Avenue 
 Wanzhou, Chongqing 404000 
 People’s Republic of China 
 Attention: [CONTACT PERSON] 
 Fax: 
 18.
Miscellaneous. This Deposit Agreement is for the exclusive benefit of the Company, the Depositary, the Holders, and their respective successors hereunder, and shall not give any legal or equitable right, remedy or claim whatsoever to any
other person. The Holders and owners of ADRs from time to time shall be parties to this Deposit Agreement and shall be bound by all of the provisions hereof. If any such provision is invalid, illegal or unenforceable in any respect, the remaining
provisions shall in no way be affected thereby. This Deposit Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one instrument. 
 19. Consent to Jurisdiction. The Company irrevocably agrees that any legal suit, action or proceeding against the Company brought by
the Depositary or any Holder, arising out of or based upon this Deposit Agreement or the transactions contemplated hereby, may be instituted in any state or federal court in New York, New York, and, to the fullest extent permitted by law,
irrevocably

  

 8 

 
waives any objection which it may now or hereafter have to the laying of venue of any such proceeding, and irrevocably submits to the non-exclusive jurisdiction of such courts in any such suit,
action or proceeding. The Company also irrevocably agrees that any legal suit, action or proceeding against the Depositary brought by the Company, arising out of or based upon this Deposit Agreement or the transactions contemplated hereby, may only
be instituted in a state or federal court in New York, New York. The Company has appointed Law Debenture Corporate Services Inc., 400 Madison Avenue, 4th Floor, New York, New York 10017, as its authorized agent (the “Authorized Agent”)
upon which process may be served in any such action arising out of or based on this Deposit Agreement or the transactions contemplated hereby which may be instituted in any state or federal court in New York, New York by the Depositary or any
Holder, and, to the fullest extent permitted by law, waives any other requirements of or objections to personal jurisdiction with respect thereto. The Company represents and warrants that the Authorized Agent has agreed to act as said agent for
service of process, and the Company agrees to take any and all action, including the filing of any and all documents and instruments, that may be necessary to continue such appointment in full force and effect as aforesaid. Service of process upon
the Authorized Agent and written notice of such service to the Company shall be deemed, in every respect, effective service of process upon the Company. If, for any reason, the Authorized Agent named above or its successor shall no longer serve as
agent of the Company to receive service of process in New York, the Company shall promptly appoint a successor acceptable to the Depositary, so as to serve and will promptly advise the Depositary thereof. In the event the Company fails to continue
such designation and appointment in full force and effect, the Company hereby waives personal service of process upon it and consents that any such service of process may be made by certified or registered mail, return receipt requested, directed to
the Company at its address last specified for notices hereunder, and service so made shall be deemed completed five (5) days after the same shall have been so mailed. Notwithstanding the foregoing, any action based on this Deposit Agreement may
be instituted by the Depositary or any Holder in any competent court in the Cayman Islands or the People's Republic of China (including the Hong Kong Special Administrative Region). 
 To the extent that the Company or any of its properties, assets or revenues may have or may hereafter be entitled to, or have attributed to
it, any right of immunity, on the grounds of sovereignty or otherwise, from any legal action, suit or proceeding, from the giving of any relief in any respect thereof, from setoff or counterclaim, from the jurisdiction of any court, from service of
process, from attachment upon or prior to judgment, from attachment in aid of execution or judgment, or from execution of judgment, or other legal process or proceeding for the giving of any relief or for the enforcement of any judgment, in any
jurisdiction in which proceedings may at any time be commenced, with respect to its obligations, liabilities or other matter under or arising out of or in connection with the Shares or Deposited Securities, the ADSs, the ADRs or this Deposit
Agreement, the Company, to the fullest

  

 9 

 
extent permitted by law, hereby irrevocably and unconditionally waives, and agrees not to plead or claim, any such immunity and consents to such relief and enforcement. 
 EACH PARTY TO THIS DEPOSIT AGREEMENT (INCLUDING, FOR AVOIDANCE OF DOUBT, EACH HOLDER AND BENEFICIAL OWNER AND/OR HOLDER OF INTERESTS IN
ADRS) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING AGAINST THE DEPOSITARY AND/OR THE COMPANY DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE ADSs OR THE ADRs, THE DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF (WHETHER BASED ON CONTRACT, TORT, COMMON LAW OR ANY OTHER THEORY).

  

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 IN WITNESS WHEREOF, DAQO NEW ENERGY CORP. and JPMORGAN CHASE BANK, N.A. have duly executed
this Deposit Agreement as of the day and year first above set forth and all holders of ADRs shall become parties hereto upon acceptance by them of ADRs issued in accordance with the terms hereof. 
  

			
	DAQO NEW ENERGY CORP.
		
	By:	 	  

	Name:	 	
	Title	 	
	
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	  

	Name:	 	
	Title:	 	Vice President

  

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 EXHIBIT A 
 ANNEXED TO AND INCORPORATED IN 
 DEPOSIT AGREEMENT  
 [FORM OF FACE OF ADR] 
  

			
	___	  	No. of ADSs:
	Number	  	
		  	Each ADS represents
		  	Six Shares
		
		  	CUSIP:

 AMERICAN DEPOSITARY RECEIPT 
 evidencing 
 AMERICAN DEPOSITARY SHARES 
 representing 
 ORDINARY SHARES 
 of 
 DAQO NEW ENERGY CORP. 
 (Incorporated under the laws of the Cayman Islands)

 JPMORGAN CHASE BANK, N.A., a national banking association organized under the laws of the United States of America, as
depositary hereunder (the “Depositary”), hereby certifies that             is the registered owner (a “Holder”) of American Depositary Shares
(“ADSs”), each (subject to paragraph (13)) representing six ordinary shares (including the rights to receive Shares described in paragraph (1), “Shares” and, together with any other securities, cash or property from time to
time held by the Depositary in respect or in lieu of deposited Shares, the “Deposited Securities”), of Daqo New Energy Corp., a corporation organized under the laws of the Cayman Islands (the “Company”), deposited under the
Deposit Agreement dated as of [DATE] , 2010 (as amended from time to time, the “Deposit Agreement”) among the Company, the Depositary and all Holders from time to time of American Depositary Receipts issued thereunder (“ADRs”),
each of whom by accepting an ADR becomes a party thereto. The Deposit Agreement and this ADR (which includes the provisions set forth on the reverse hereof) shall be governed by and construed in accordance with the laws of the State of New York.

  

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 (1) Issuance of ADRs; Pre-Release. This ADR is one of the ADRs issued under the
Deposit Agreement. Subject to paragraph (4), the Depositary may so issue ADRs for delivery at the Transfer Office (defined in paragraph (3)) only against deposit of: (a) Shares in form satisfactory to the Custodian; (b) rights to
receive Shares from the Company or any registrar, transfer agent, clearing agent or other entity recording Share ownership or transactions; or, (c) in accordance with the next paragraph of this paragraph (1). 
 In its capacity as Depositary, the Depositary shall not lend Shares or ADSs; provided, however, that the Depositary may issue ADSs prior to
the receipt of Shares (each such transaction a “Pre-Release”). The Depositary may receive ADSs in lieu of Shares to close out a Pre-Release (which ADSs will promptly be canceled by the Depositary upon receipt by the Depositary). Each such
Pre-Release will be subject to a written agreement whereby the person or entity (the “Applicant”) to whom ADSs are to be delivered (a) represents that at the time of the Pre-Release the Applicant or its customer owns the Shares that
are to be delivered by the Applicant under such Pre-Release, (b) agrees to indicate the Depositary as owner of such Shares in its records and to hold such Shares in trust for the Depositary until such Shares are delivered to the Depositary or
the Custodian, (c) unconditionally guarantees to deliver to the Depositary or the Custodian, as applicable, such Shares, and (d) agrees to any additional restrictions or requirements that the Depositary deems appropriate. Each such
Pre-Release will be at all times fully collateralized with cash, U.S. government securities or such other collateral as the Depositary deems appropriate, terminable by the Depositary on not more than five (5) business days’ notice and
subject to such further indemnities and credit regulations as the Depositary deems appropriate. The Depositary will normally limit the number of ADSs involved in such Pre-Release at any one time to thirty percent (30%) of the ADSs outstanding
(without giving effect to Pre-Released ADSs outstanding), provided, however, that the Depositary reserves the right to change or disregard such limit from time to time as it deems appropriate. The Depositary may also set limits with respect to the
number of ADSs involved in Pre-Release with any one person on a case-by-case basis as it deems appropriate. The Depositary may retain for its own account any compensation received by it in conjunction with the foregoing. Collateral provided as
described above, but not the earnings thereon, shall be held for the benefit of the Holders (other than the Applicant). 
 Every
person depositing Shares under the Deposit Agreement represents and warrants that such Shares are validly issued and outstanding, fully paid, nonassessable and free of pre-emptive rights, that the person making such deposit is duly authorized so to
do and that such Shares (A) are not “restricted securities” as such term is defined in Rule 144 under the Securities Act of 1933 (“Restricted Securities”) unless at the time of deposit the requirements of paragraphs (c),
(e), (f) and (h) of Rule 144 shall not apply and such Shares may be freely transferred and may otherwise be offered and sold freely in the United States or (B) have been registered under the Securities Act of 1933. To the extent the
person depositing Shares is an “affiliate” of the Company as such term

  

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is defined in Rule 144, the person also represents and warrants that upon the sale of the ADSs, all of the provisions of Rule 144 which enable the Shares to be freely sold (in the form of ADSs)
will be fully complied with and, as a result thereof, all of the ADSs issued in respect of such Shares will not be on the sale thereof, Restricted Securities. Such representations and warranties shall survive the deposit of Shares and issuance of
ADRs. The Depositary will not knowingly accept for deposit under the Deposit Agreement any Shares required to be registered under the Securities Act of 1933 and not so registered; the Depositary may refuse to accept for such deposit any Shares
identified by the Company in order to facilitate the Company’s compliance with such Act. 
 (2) Withdrawal of Deposited
Securities. Subject to paragraphs (4) and (5), upon surrender of (i) a certificated ADR in form satisfactory to the Depositary at the Transfer Office or (ii) proper instructions and documentation in the case of a Direct
Registration ADR, the Holder hereof is entitled to delivery at, or to the extent in dematerialized form from, the Custodian’s office of the Deposited Securities at the time represented by the ADSs evidenced by this ADR. At the request, risk and
expense of the Holder hereof, the Depositary may deliver such Deposited Securities at such other place as may have been requested by the Holder. Notwithstanding any other provision of the Deposit Agreement or this ADR, the withdrawal of Deposited
Securities may be restricted only for the reasons set forth in General Instruction I.A.(1) of Form F-6 (as such instructions may be amended from time to time) under the Securities Act of 1933. 
 (3) Transfers of ADRs. The Depositary or its agent will keep, at a designated transfer office (the “Transfer Office”),
(a) a register (the “ADR Register”) for the registration, registration of transfer, combination and split-up of ADRs, and, in the case of Direct Registration ADRs, shall include the Direct Registration System, which at all reasonable
times will be open for inspection by Holders and the Company for the purpose of communicating with Holders in the interest of the business of the Company or a matter relating to the Deposit Agreement and (b) facilities for the delivery and
receipt of ADRs. The term ADR Register includes the Direct Registration System. Title to this ADR (and to the Deposited Securities represented by the ADSs evidenced hereby), when properly endorsed (in the case of ADRs in certificated form) or upon
delivery to the Depositary of proper instruments of transfer, is transferable by delivery with the same effect as in the case of negotiable instruments under the laws of the State of New York; provided that the Depositary, notwithstanding any
notice to the contrary, may treat the person in whose name this ADR is registered on the ADR Register as the absolute owner hereof for all purposes and neither the Depositary nor the Company will have any obligation or be subject to any liability
under the Deposit Agreement to any holder of an ADR, unless such holder is the Holder thereof. Subject to paragraphs (4) and (5), this ADR is transferable on the ADR Register and may be split into other ADRs or combined with other ADRs into one
ADR, evidencing the aggregate number of ADSs surrendered for split-up or combination, by the

  

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Holder hereof or by duly authorized attorney upon surrender of this ADR at the Transfer Office properly endorsed (in the case of ADRs in certificated form) or upon delivery to the Depositary of
proper instruments of transfer and duly stamped as may be required by applicable law; provided that the Depositary may close the ADR Register at any time or from time to time when deemed expedient by it or when reasonably requested by the
Company in order to comply with applicable law. At the request of a Holder, the Depositary shall, for the purpose of substituting a certificated ADR with a Direct Registration ADR, or vice versa, execute and deliver a certificated ADR or a Direct
Registration ADR, as the case may be, for any authorized number of ADSs requested, evidencing the same aggregate number of ADSs as those evidenced by the certificated ADR or Direct Registration ADR, as the case may be, substituted. 
 (4) Certain Limitations. Prior to the issue, registration, registration of transfer, split-up or combination of any ADR, the delivery
of any distribution in respect thereof, or, subject to the last sentence of paragraph (2), the withdrawal of any Deposited Securities, and from time to time in the case of clause (b)(ii) of this paragraph (4), the Company, the Depositary or the
Custodian may require: (a) payment with respect thereto of (i) any stock transfer or other tax or other governmental charge, (ii) any stock transfer or registration fees in effect for the registration of transfers of Shares or other
Deposited Securities upon any applicable register and (iii) any applicable charges as provided in paragraph (7) of this ADR; (b) the production of proof satisfactory to it of (i) the identity of any signatory and genuineness of
any signature and (ii) such other information, including without limitation, information as to citizenship, residence, exchange control approval, beneficial ownership of any securities, compliance with applicable law, regulations, provisions of
or governing Deposited Securities and terms of the Deposit Agreement and this ADR, as it may deem necessary or proper; and (c) compliance with such regulations as the Depositary may establish consistent with the Deposit Agreement. The issuance
of ADRs, the acceptance of deposits of Shares, the registration, registration of transfer, split-up or combination of ADRs or, subject to the last sentence of paragraph (2), the withdrawal of Deposited Securities may be suspended, generally or in
particular instances, when the ADR Register or any register for Deposited Securities is closed or when any such action is deemed advisable by the Depositary or when reasonably requested by the Company in order to comply with applicable law.

 (5) Taxes. If any tax or other governmental charge shall become payable by or on behalf of the Custodian or the
Depositary with respect to this ADR, any Deposited Securities represented by the ADSs evidenced hereby or any distribution thereon, such tax or other governmental charge shall be paid by the Holder hereof to the Depositary. The Depositary may refuse
to effect any registration, registration of transfer, split-up or combination hereof or, subject to the last sentence of paragraph (2), any withdrawal of such Deposited Securities until such payment is made. The Depositary may also deduct from any
distributions on or in respect of

  

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Deposited Securities, or may sell by public or private sale for the account of the Holder hereof any part or all of such Deposited Securities (after attempting by reasonable means to notify the
Holder hereof prior to such sale), and may apply such deduction or the proceeds of any such sale in payment of such tax or other governmental charge, the Holder hereof remaining liable for any deficiency, and shall reduce the number of ADSs
evidenced hereby to reflect any such sales of Shares. In connection with any distribution to Holders, the Company will remit to the appropriate governmental authority or agency all amounts (if any) required to be withheld and owing to such authority
or agency by the Company; and the Depositary and the Custodian will remit to the appropriate governmental authority or agency all amounts (if any) required to be withheld and owing to such authority or agency by the Depositary or the Custodian. The
Depositary will forward to the Company such information from its records as the Company may reasonably request to enable the Company to file any necessary reports with governmental authorities or agencies. If the Depositary determines that any
distribution in property other than cash (including Shares or rights) on Deposited Securities is subject to any tax that the Depositary or the Custodian is obligated to withhold, the Depositary may dispose of all or a portion of such property in
such amounts and in such manner as the Depositary deems necessary and practicable to pay such taxes, by public or private sale, and the Depositary shall distribute the net proceeds of any such sale or the balance of any such property after deduction
of such taxes to the Holders entitled thereto. Each Holder of an ADR or an interest therein agrees to indemnify the Depositary, the Company, the Custodian and any of their respective directors, employees, agents and affiliates against, and hold each
of them harmless from, any claims by any governmental authority with respect to taxes, additions to tax, penalties or interest arising out of any refund of taxes, reduced rate of withholding at source or other tax benefit obtained. 
 (6) Disclosure of Interests. To the extent that the provisions of or governing any Deposited Securities may require disclosure of or
impose limits on beneficial or other ownership of Deposited Securities, other Shares and other securities and may provide for blocking transfer, voting or other rights to enforce such disclosure or limits, Holders and all persons holding ADRs agree
to comply with all such disclosure requirements and ownership limitations and to comply with any reasonable Company instructions in respect thereof. The Depositary agrees to forward, upon the request and at the expenses of the Company, any written
request for beneficial ownership information from the Company to the Holders, and at the Company’s expense, to promptly forward to the Company any responses received by the Depositary. The Company reserves the right to instruct Holders to
deliver their ADSs for cancellation and withdrawal of the Deposited Securities so as to permit the Company to deal directly with the Holder thereof as a holder of Shares and Holders agree to comply with such instructions. The Depositary agrees to
cooperate with the Company in its efforts to inform Holders of the Company’s exercise of its rights under this paragraph and agrees to consult with, and provide reasonable assistance without risk, liability or expense on the part of the
Depositary, to the Company on the manner or manners in which it may enforce such rights with respect to any Holder. 
  

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 (7) Charges of Depositary. The Depositary may charge, and collect from, (i) each
person to whom ADSs are issued, including, without limitation, issuances against deposits of Shares, issuances in respect of Share Distributions, Rights and Other Distributions (as such terms are defined in paragraph
(10)), issuances pursuant to a stock dividend or stock split declared by the Company, or issuances pursuant to a merger, exchange of securities or any other transaction or event affecting the ADSs or the Deposited Securities, and (ii)
each person surrendering ADSs for withdrawal of Deposited Securities or whose ADSs are cancelled or reduced for any other reason, U.S.$5.00 for each 100 ADSs (or portion thereof) issued, delivered, reduced, cancelled or surrendered (as the case
may be). The Depositary may sell (by public or private sale) sufficient securities and property received in respect of Share Distributions, Rights and Other Distributions prior to such deposit to pay such charge. The following additional charges
shall be incurred by the Holders, by any party depositing or withdrawing Shares or by any party surrendering ADSs, to whom ADSs are issued (including, without limitation, issuance pursuant to a stock dividend or stock split declared by the Company
or an exchange of stock regarding the ADSs or the Deposited Securities or a distribution of ADSs pursuant to paragraph (10)), whichever is applicable (i) a fee of up to U.S.$0.02 per ADS for any Cash distribution made pursuant to the Deposit
Agreement, (ii) a fee of U.S.$1.50 per ADR or ADRs for transfers made pursuant to paragraph (3) hereof, (iii) a fee for the distribution or sale of securities pursuant to paragraph (10) hereof, such fee being in an amount equal
to the fee for the execution and delivery of ADSs referred to above which would have been charged as a result of the deposit of such securities (for purposes of this paragraph (7) treating all such securities as if they were Shares) but which
securities or the net cash proceeds from the sale thereof are instead distributed by the Depositary to Holders entitled thereto, (iv) an aggregate fee of up to U.S.$0.02 per ADS per calendar year (or portion thereof) for services performed by
the Depositary in administering the ADRs (which fee may be charged on a periodic basis during each calendar year and shall be assessed against Holders as of the record date or record dates set by the Depositary during each calendar year and shall be
payable at the sole discretion of the Depositary by billing such Holders or by deducting such charge from one or more cash dividends or other cash distributions), and (v) reimbursement of such fees, charges and expenses as are incurred by the
Depositary and/or any of the Depositary’s agents (including, without limitation, the Custodian and expenses incurred on behalf of Holders in connection with compliance with foreign exchange control regulations or any law or regulation relating
to foreign investment) in connection with the servicing of the Shares or other Deposited Securities, the delivery of Deposited Securities or otherwise in connection with the Depositary’s or its Custodian’s compliance with applicable law,
rule or regulation (which charge shall be assessed on a proportionate basis against Holders as of the record date or dates set by the Depositary and shall be payable at the sole discretion of the Depositary by billing such Holders or by deducting
such charge from one or more cash dividends or other cash distributions). The Company will pay all other charges and expenses of the Depositary and any agent of the Depositary (except the Custodian) pursuant to agreements

  

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from time to time between the Company and the Depositary, except (i) stock transfer or other taxes and other governmental charges (which are payable by Holders or persons depositing Shares),
(ii) cable, telex and facsimile transmission and delivery charges incurred at the request of persons depositing, or Holders delivering Shares, ADRs or Deposited Securities (which are payable by such persons or Holders), (iii) transfer or
registration fees for the registration or transfer of Deposited Securities on any applicable register in connection with the deposit or withdrawal of Deposited Securities (which are payable by persons depositing Shares or Holders withdrawing
Deposited Securities; there are no such fees in respect of the Shares as of the date of the Deposit Agreement), and (iv) expenses of the Depositary in connection with the conversion of foreign currency into U.S. dollars (which are paid out of
such foreign currency). Such charges may at any time and from time to time be changed by agreement between the Company and the Depositary. 
 (8) Available Information. The Deposit Agreement, the provisions of or governing Deposited Securities and any written communications from the Company, which are both received by the Custodian or
its nominee as a holder of Deposited Securities and made generally available to the holders of Deposited Securities, are available for inspection by Holders at the offices of the Depositary and the Custodian and at the Transfer Office. The
Depositary will distribute copies of such communications (or English translations or summaries thereof) to Holders when furnished by the Company. The Company is subject to the periodic reporting requirements of the Securities Exchange Act of 1934
and accordingly files certain reports with the United States Securities and Exchange Commission (the “Commission”). Such reports and other information may be inspected and copied at public reference facilities maintained by the Commission
located at the date hereof at 100 F Street, NE, Washington, DC 20549. 
 (9) Execution. This ADR shall not be valid for
any purpose unless executed by the Depositary by the manual or facsimile signature of a duly authorized officer of the Depositary. 
 Dated:

  

			
	JPMORGAN CHASE BANK, N.A., as Depositary
		
	By	 	  

	Authorized Officer

 The Depositary’s office is located at 4 New York Plaza, New York, New York
10004. 
  

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 [FORM OF REVERSE OF ADR] 
 (10) Distributions on Deposited Securities. Subject to paragraphs (4) and (5), to the extent practicable, the Depositary will
distribute to each Holder entitled thereto on the record date set by the Depositary therefor at such Holder’s address shown on the ADR Register, in proportion to the number of Deposited Securities (on which the following distributions on
Deposited Securities are received by the Custodian) represented by ADSs evidenced by such Holder’s ADRs: (a) Cash. Any U.S. dollars available to the Depositary resulting from a cash dividend or other cash distribution or the net
proceeds of sales of any other distribution or portion thereof authorized in this paragraph (10) (“Cash”), on an averaged or other practicable basis, subject to (i) appropriate adjustments for taxes withheld, (ii) such
distribution being impermissible or impracticable with respect to certain Holders, and (iii) deduction of the Depositary’s expenses in (1) converting any foreign currency to U.S. dollars by sale or in such other manner as the
Depositary may determine to the extent that it determines that such conversion may be made on a reasonable basis, (2) transferring foreign currency or U.S. dollars to the United States by such means as the Depositary may determine to the extent
that it determines that such transfer may be made on a reasonable basis, (3) obtaining any approval or license of any governmental authority required for such conversion or transfer, which is obtainable at a reasonable cost and within a
reasonable time and (4) making any sale by public or private means in any commercially reasonable manner. (b) Shares. (i) Additional ADRs evidencing whole ADSs representing any Shares available to the Depositary resulting from
a dividend or free distribution on Deposited Securities consisting of Shares (a “Share Distribution”) and (ii) U.S. dollars available to it resulting from the net proceeds of sales of Shares received in a Share Distribution, which
Shares would give rise to fractional ADSs if additional ADRs were issued therefor, as in the case of Cash. (c) Rights. (i) Warrants or other instruments in the discretion of the Depositary representing rights to acquire additional
ADRs in respect of any rights to subscribe for additional Shares or rights of any nature available to the Depositary as a result of a distribution on Deposited Securities (“Rights”), to the extent that the Company timely furnishes to the
Depositary evidence satisfactory to the Depositary that the Depositary may lawfully distribute the same (the Company has no obligation to so furnish such evidence), or (ii) to the extent the Company does not so furnish such evidence and sales
of Rights are practicable, any U.S. dollars available to the Depositary from the net proceeds of sales of Rights as in the case of Cash, or (iii) to the extent the Company does not so furnish such evidence and such sales cannot practicably be
accomplished by reason of the nontransferability of the Rights, limited markets therefor, their short duration or otherwise, nothing (and any Rights may lapse). (d) Other Distributions. (i) Securities or property available to the
Depositary resulting from any distribution on Deposited Securities other than Cash, Share Distributions and Rights (“Other Distributions”), by any means that the Depositary may deem equitable and practicable, or (ii) to the extent the
Depositary deems distribution of such securities or property not to be equitable and practicable, any U.S. dollars available to the Depositary from the net proceeds of sales of Other Distributions as in the case of Cash. Such U.S. dollars available
will be distributed by checks drawn on a bank in the United States for whole dollars and cents. Fractional cents will be withheld without liability and dealt with by the Depositary in accordance with its then current practices. 
  

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 (11) Record Dates. The Depositary may, after consultation with the Company if
practicable, fix a record date (which, to the extent applicable, shall be as near as practicable to any corresponding record date set by the Company) for the determination of the Holders who shall be responsible for the fee assessed by the
Depositary for administration of the ADR program and for any expenses provided for in paragraph (7) hereof as well as for the determination of the Holders who shall be entitled to receive any distribution on or in respect of Deposited
Securities, to give instructions for the exercise of any voting rights, to receive any notice or to act in respect of other matters and only such Holders shall be so entitled or obligated. 
 (12) Voting of Deposited Securities. As soon as practicable after receipt from the Company of notice of any meeting or solicitation
of consents or proxies of holders of Shares or other Deposited Securities, the Depositary shall distribute to Holders a notice stating (a) such information as is contained in such notice and any solicitation materials, (b) that each Holder
on the record date set by the Depositary therefor will, subject to any applicable provisions of Cayman Island law, be entitled to instruct the Depositary as to the exercise of the voting rights, if any, pertaining to the Deposited Securities
represented by the ADSs evidenced by such Holder’s ADRs and (c) the manner in which such instructions may be given, including instructions to give a discretionary proxy to a person designated by the Company. Upon receipt of instructions of
a Holder on such record date in the manner and on or before the date established by the Depositary for such purpose, the Depositary shall endeavor insofar as practicable and permitted under the provisions of or governing Deposited Securities to vote
or cause to be voted the Deposited Securities represented by the ADSs evidenced by such Holder’s ADRs in accordance with such instructions. The Depositary will not itself exercise any voting discretion in respect of any Deposited Securities. To
the extent voting instruction cards are not so received by the Depositary from any Holder, the Depositary shall deem such Holder to have so instructed the Depositary to give a discretionary proxy to a person designated by the Company and the
Depositary shall endeavor insofar as practicable and permitted under the provisions of or governing Deposited Securities to give a discretionary proxy to a person designated by the Company to vote the Deposited Securities represented by the ADSs
evidenced by such Holder’s ADRs as to which such deemed instructions are so given, provided that no such instruction shall be deemed given and no discretionary proxy shall be given (i) with respect to any matter as to which the Company
informs the Depositary (and the Company agrees to provide such information promptly in writing when and if applicable) that (x) the Company does not wish such proxy to be given, (y) substantial opposition exists with respect to any agenda
item for which the proxy would be given or (z) materially affects the rights of holders of Shares and (ii) unless, with respect to such meeting, the Depositary has been provided with an opinion of counsel to the Company, in form and
substance satisfactory to the Depositary, to the effect that (a) the granting of such discretionary proxy does not subject the Depositary to any reporting obligations in the Cayman Islands, (b) the granting of such proxy will not result in
a violation of Cayman Island law, rule, regulation or permit, (c) the voting arrangement and deemed instruction as contemplated herein will be given effect under Cayman Island law upon a discretionary proxy being granted in the manner as
aforesaid, and (d) the granting of such discretionary proxy alone will not result in the Shares represented by the ADSs

  

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being considered subject to attachment or appropriation by creditors of the Custodian or the Depositary under Cayman Island law, to the extent Cayman Island law is relevant. 
 There is no guarantee that Holders generally or any Holder in particular will receive the notice described above with sufficient time to
enable such Holder to return any voting instructions to the Depositary in a timely manner. 
 (13) Changes Affecting
Deposited Securities. Subject to paragraphs (4) and (5), the Depositary may, in its discretion, amend this ADR or distribute additional or amended ADRs (with or without calling this ADR for exchange) or cash, securities or property on the
record date set by the Depositary therefor to reflect any change in par value, split-up, consolidation, cancellation or other reclassification of Deposited Securities, any Share Distribution or Other Distribution not distributed to Holders or any
cash, securities or property available to the Depositary in respect of Deposited Securities from (and the Depositary is hereby authorized to surrender any Deposited Securities to any person and, irrespective of whether such Deposited Securities are
surrendered or otherwise cancelled by operation of law, rule, regulation or otherwise, to sell by public or private sale any property received in connection with) any recapitalization, reorganization, merger, consolidation, liquidation,
receivership, bankruptcy or sale of all or substantially all the assets of the Company, and to the extent the Depositary does not so amend this ADR or make a distribution to Holders to reflect any of the foregoing, or the net proceeds thereof,
whatever cash, securities or property results from any of the foregoing shall constitute Deposited Securities and each ADS evidenced by this ADR shall automatically represent its pro rata interest in the Deposited Securities as then constituted.

 (14) Exoneration. The Depositary, the Company, their agents and each of them shall: (a) incur no liability
(i) if any present or future law, rule, regulation , fiat, order or decree of the United States, the Cayman Islands, The People’s Republic of China (including the Hong Kong Special Administrative Region, the People’s Republic of
China) or any other country, or of any governmental or regulatory authority or any securities exchange or market or automated quotation system, the provisions of or governing any Deposited Securities, any present or future provision of the
Company’s charter, any act of God, war, terrorism or other circumstance beyond its control shall prevent or delay, or shall cause any of them to be subject to any civil or criminal penalty in connection with, any act which the Deposit Agreement
or this ADR provides shall be done or performed by it or them (including, without limitation, voting pursuant to paragraph (12) hereof), or (ii) by reason of any exercise or failure to exercise any discretion given it in the Deposit
Agreement or this ADR; (b) assume no liability except to perform its obligations to the extent they are specifically set forth in this ADR and the Deposit Agreement without gross negligence or bad faith; (c) in the case of the Depositary
and its agents, be under no obligation to appear in, prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities or this ADR; (d) in the case of the Company and its agents hereunder be under no obligation to
appear in, prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities or this ADR, which in its opinion may involve it in expense or liability,

  

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unless indemnity satisfactory to it against all expense (including fees and disbursements of counsel) and liability be furnished as often as may be required; or (e) not be liable for any
action or inaction by it in reliance upon the advice of or information from legal counsel, accountants, any person presenting Shares for deposit, any Holder, or any other person believed by it to be competent to give such advice or information. The
Depositary shall not be liable for the acts or omissions made by any securities depository, clearing agency or settlement system in connection with or arising out of book-entry settlement of Deposited Securities or otherwise, so long as such acts or
omissions are not caused as a direct result of the gross negligence or willful misconduct of the Depositary. The Depositary shall not be responsible for, and shall incur no liability in connection with or arising from, the insolvency of any
Custodian that is not a branch or affiliate of JPMorgan Chase Bank, N.A. The Depositary, its agents and the Company may rely and shall be protected in acting upon any written notice, request, direction or other document believed by them to be
genuine and to have been signed or presented by the proper party or parties. The Depositary and its agents will not be responsible for any failure to carry out any instructions to vote any of the Deposited Securities, for the manner in which any
such vote is cast or for the effect of any such vote. The Depositary and its agents may own and deal in any class of securities of the Company and its affiliates and in ADRs. Notwithstanding anything to the contrary set forth in the Deposit
Agreement or an ADR, the Depositary and its agents may fully respond to any and all demands or requests for information maintained by or on its behalf in connection with the Deposit Agreement, any Holder or Holders, any ADR or ADRs or otherwise
related hereto or thereto to the extent such information is requested or required by or pursuant to any lawful authority, including without limitation laws, rules, regulations, administrative or judicial process, banking, securities or other
regulators. None of the Depositary, the Custodian or the Company shall be liable for the failure by any Holder or beneficial owner to obtain the benefits of credits on the basis of non-U.S. tax paid against such Holder’s or beneficial
owner’s income tax liability. The Depositary and the Company shall not incur any liability for any tax consequences that may be incurred by Holders and beneficial owners on account of their ownership of the ADRs or ADSs. The Company has agreed
to indemnify the Depositary and its agents under certain circumstances and the Depositary has agreed to indemnify the Company under certain circumstances. Neither the Company nor the Depositary nor any of their agents shall be liable to Holders or
beneficial owners of interests in ADSs for any indirect, special, punitive or consequential damages (including, without limitation, lost profits) of any form incurred by any person or entity, whether or not foreseeable and regardless of the type of
action in which such a claim may be brought. No disclaimer of liability under the Securities Act of 1933 is intended by any provision hereof. 
 (15) Resignation and Removal of Depositary; the Custodian. The Depositary may resign as Depositary by written notice of its election so to do delivered to the Company, such resignation to take
effect upon the appointment of a successor depositary and its acceptance of such appointment as provided in the Deposit Agreement. The Depositary may at any time be removed by the Company by no less than 90 days prior written notice of such
removal, to become effective upon the later of (i) the 90th day after delivery of the notice to the Depositary and (ii) the appointment of a successor depositary and its acceptance of such appointment as provided in the

  

 A-11 

 
Deposit Agreement. The Depositary may appoint substitute or additional Custodians and the term “Custodian” refers to each Custodian or all Custodians as the context requires.

 (16) Amendment. Subject to the last sentence of paragraph (2), the ADRs and the Deposit Agreement may be amended by
the Company and the Depositary, provided that any amendment that imposes or increases any fees or charges (other than stock transfer or other taxes and other governmental charges, transfer or registration fees, cable, telex or facsimile
transmission costs, delivery costs or other such expenses), or that shall otherwise prejudice any substantial existing right of Holders, shall become effective 30 days after notice of such amendment shall have been given to the Holders. Every Holder
of an ADR at the time any amendment to the Deposit Agreement so becomes effective shall be deemed, by continuing to hold such ADR, to consent and agree to such amendment and to be bound by the Deposit Agreement as amended thereby. In no event shall
any amendment impair the right of the Holder of any ADR to surrender such ADR and receive the Deposited Securities represented thereby, except in order to comply with mandatory provisions of applicable law. Any amendments or supplements which
(i) are reasonably necessary (as agreed by the Company and the Depositary) in order for (a) the ADSs to be registered on Form F-6 under the Securities Act of 1933 or (b) the ADSs or Shares to be traded solely in electronic book-entry
form and (ii) do not in either such case impose or increase any fees or charges to be borne by Holders, shall be deemed not to prejudice any substantial rights of Holders. Notwithstanding the foregoing, if any governmental body or regulatory
body should adopt new laws, rules or regulations which would require amendment or supplement of the Deposit Agreement or the form of ADR to ensure compliance therewith, the Company and the Depositary may amend or supplement the Deposit Agreement and
the ADR at any time in accordance with such changed laws, rules or regulations. Such amendment or supplement to the Deposit Agreement in such circumstances may become effective before a notice of such amendment or supplement is given to Holders or
within any other period of time as required for compliance. Notice of any amendment to the Deposit Agreement or form of ADRs shall not need to describe in detail the specific amendments effectuated thereby, and failure to describe the specific
amendments in any such notice shall not render such notice invalid, provided, however, that, in each such case, the notice given to the Holders identifies a means for Holders to retrieve or receive the text of such amendment (i.e., upon retrieval
from the Commission’s, the Depositary’s or the Company’s website or upon request from the Depositary).  
 (17) Termination. The Depositary may, and shall at the written direction of the Company, terminate the Deposit Agreement and this ADR by mailing notice of such termination to the Holders at least
30 days prior to the date fixed in such notice for such termination; provided, however, if the Depositary shall have (i) resigned as Depositary hereunder, notice of such termination by the Depositary shall not be provided to Holders unless a
successor depositary shall not be operating hereunder within 45 days of the date of such resignation, or (ii) been removed as Depositary hereunder, notice of such termination by the Depositary shall not be provided to Holders unless a successor
depositary shall not be operating hereunder on the 90th
day after the Company’s notice of removal was first provided to the Depositary. After the date so fixed for termination, the Depositary and its agents will perform no further acts

  

 A-12 

 
under the Deposit Agreement and this ADR, except to receive and hold (or sell) distributions on Deposited Securities and deliver Deposited Securities being withdrawn. As soon as practicable after
the expiration of six months from the date so fixed for termination, the Depositary shall sell the Deposited Securities and shall thereafter (as long as it may lawfully do so) hold in a segregated account the net proceeds of such sales, together
with any other cash then held by it under the Deposit Agreement, without liability for interest, in trust for the pro rata benefit of the Holders of ADRs not theretofore surrendered. After making such sale, the Depositary shall be
discharged from all obligations in respect of the Deposit Agreement and this ADR, except to account for such net proceeds and other cash. After the date so fixed for termination, the Company shall be discharged from all obligations under the Deposit
Agreement except for its obligations to the Depositary and its agents. 
 (18) Appointment. Each Holder and each person
holding an interest in ADSs, upon acceptance of any ADSs (or any interest therein) issued in accordance with the terms and conditions of the Deposit Agreement shall be deemed for all purposes to (a) be a party to and bound by the terms of the
Deposit Agreement and the applicable ADR(s), and (b) appoint the Depositary its attorney-in-fact, with full power to delegate, to act on its behalf and to take any and all actions contemplated in the Deposit Agreement and the applicable ADR(s),
to adopt any and all procedures necessary to comply with applicable law and to take such action as the Depositary in its sole discretion may deem necessary or appropriate to carry out the purposes of the Deposit Agreement and the applicable ADR(s),
the taking of such actions to be the conclusive determinant of the necessity and appropriateness thereof. 
 (19) Waiver.
EACH PARTY TO THE DEPOSIT AGREEMENT (INCLUDING, FOR AVOIDANCE OF DOUBT, EACH HOLDER AND BENEFICIAL OWNER AND/OR HOLDER OF INTERESTS IN ADRS) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING AGAINST THE DEPOSITARY AND/OR THE COMPANY DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE ADSs OR THE ADRs, THE DEPOSIT AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF (WHETHER BASED ON CONTRACT, TORT, COMMON LAW OR ANY OTHER THEORY). 
  

 A-13Investor Rights Agreement

 Exhibit 4.5 
 INVESTOR RIGHTS AGREEMENT 
 THIS INVESTOR
RIGHTS AGREEMENT (this “Agreement”) is entered into as of November 20, 2009 (the “Effective Date”), by and among: 
  

	(1)	Daqo New Energy Corp., a company duly organized and validly existing under the Laws of the Cayman Islands (the “Company”), 

  

	(2)	Daqo Solar Energy North America, a corporation duly incorporated and validly existing under the Laws of the State of California (“Daqo North America”),

  

	(3)	Chongqing Daqo New Energy Co., Ltd., a company organized and existing under the Laws of the People’s Republic of China (“Chongqing Daqo”),

  

	(4)	Nanjing Daqo New Energy Co., Ltd., a company organized and existing under the Laws of the People’s Republic of China (“Nanjing Daqo”),

  

	(5)	Daqo New Material Co., Ltd., a company organized and existing under the Laws of the People’s Republic of China (“Daqo New Material”),

  

	(4)	the individuals listed in Schedule I-A attached hereto (the “Major Shareholders,” and each a “Major Shareholder”),

  

	(5)	the entities listed in Schedule I-B attached hereto (the “Major Shareholder Holdcos,” and each a “Major Shareholder Holdcos”),

  

	(6)	the individuals listed in Schedule I-C attached hereto (the “Other Beneficial Owners,” and each an “Other Beneficial Owner”),

  

	(6)	the parties listed in Schedule I-D attached hereto (the “Other Ordinary Shareholders” and together with the Major Shareholder Holdcos, the
“Ordinary Shareholders,” and each an “Ordinary Shareholder”), and 

  

	(7)	the investors listed in Schedule II attached hereto (the “Investors”, and each an “Investor”). 

 Each of the Company, Daqo North America, Chongqing Daqo, Nanjing Daqo, Daqo New Material, the Major Shareholders, the Other Beneficial
Owners, the Ordinary Shareholders and the Investors is referred to herein individually as a “Party” and collectively as the “Parties.” 
 RECITALS 
  

	A.	The Company, Daqo North America, Chongqing Daqo, Nanjing Daqo, Daqo New Material, the Major Shareholders, the Investors and other parties thereto entered into a Share
Purchase Agreement dated as of November 11, 2009 (the “Share Purchase Agreement”). 

  

	B.	The Share Purchase Agreement requires that the Parties enter into this Agreement as a condition to the closing contemplated therein. 

  

 -1- 

	C.	The Parties desire to enter into this Agreement and make the respective representations, warranties, covenants and agreements set forth herein on the terms and
conditions set forth herein. 

 AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises hereinafter set forth, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties intending to be legally bound hereto hereby agree as follows: 
 1. Definitions. The following terms shall have the meanings ascribed to them below: 
 “Affiliate” means, except with respect to individuals, any other Person that, directly or indirectly, Controls, is Controlled by or is under common Control with such Person, and with respect to an individual, anyone who is
a Relative. 
 “Agreement” has the meaning set forth in the Preamble of this Agreement. 
 “Applicable Accounting Principles” means the generally accepted accounting principles in the United States, applied on a
consistent basis. 
 “Board” or “Board of Directors” means the board of directors of the
Company. 
 “CFC” means a controlled foreign corporation as defined in section 957 the Code. 
 “Chongqing Daqo” has the meaning set forth in the Preamble of this Agreement. 
 “Circular 75” has the meaning set forth in Section 8.3 hereof. 
 “Closing” means the closing of issuance and sale of the Series A Preferred Shares pursuant to the Share Purchase Agreement.

 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Commission” has the meaning set forth in Schedule III hereof. 
 “Company” has the meaning set forth in the Preamble of this Agreement. 
 “Company’s Option Period” has the meaning set forth in Section 7.2(ii) hereof. 
 “Control” of a given Person means the power or authority, whether exercised or not, to direct the business, management and
policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, which power or authority shall conclusively be presumed to exist upon possession of beneficial ownership or power to
direct the vote of more than fifty percent (50%) of the votes entitled to be cast at a meeting of the members or shareholders of such Person or power to control the composition of a majority of the board of directors of such Person; the term
“Controlled” has the meaning correlative to the foregoing. 
  

 -2- 

 “Controlled Entity” means Daqo New Material or any other company organized
and existing under the Laws of the PRC and Controlled by the Company or any Subsidiary of the Company. 
 “Conversion
Shares” means Ordinary Shares issued or issuable upon conversion of Series A Preferred Shares. 
 “Daqo North
America” has the meaning set forth in the Preamble of this Agreement. 
 “Daqo New Material” has the
meaning set forth in the Preamble of this Agreement. 
 “Effective Date” has the meaning set forth in the
Preamble of this Agreement. 
 “Equity Securities” means, with respect to a Person, any shares, share capital,
registered capital, ownership interest, equity interest, or other securities, and any option, warrant, or right to subscribe for, acquire or purchase any of the foregoing, or any other security or instrument convertible into or exercisable or
exchangeable for any of the foregoing, or any equity appreciation, phantom equity, equity plans or similar rights with respect to such Person, and, with respect to the Company, shall include any Ordinary Shares and Ordinary Share Equivalents of the
Company. 
 “Exercising Shareholder of Preemptive Rights” has the meaning set forth in Section 5.3
hereof. 
 “Exercising Shareholder of Right of First Refusal” has the meaning set for in
Section 7.2(iii)(c) hereof. 
 “Governmental Authority” means any nation or government or any
federation, province or state or any other political subdivision thereof; any entity, authority or body exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including any government
authority, agency, department, board, commission or instrumentality of the PRC, the jurisdiction in which the Company is organized, or any other country, or any political subdivision thereof, any court, tribunal or arbitrator, and any
self-regulatory organization. 
 “Governmental Order” means any applicable order, ruling, decision, verdict,
decree, writ, subpoena, mandate, precept, command, directive, consent, approval, award, judgment, injunction or other similar determination or finding by, before or under the supervision of any Governmental Authority. 
 “Group Company” means each of the Company, Daqo New Material, and the WFOEs, together with each Subsidiary of any of the
foregoing, and each Person that is, directly or indirectly, Controlled by any of the foregoing, including but not limited to each joint venture in which any of the foregoing holds more than fifty percent (50%) of the voting power, and
“Group” refers to all of Group Companies collectively. 
 “Holdco Equity Securities” means any
Equity Securities of any Person that holds Equity Securities of the Company, if any Major Shareholder or Other Beneficial Owner directly or indirectly holds any Equity Securities of such Person. For the avoidance of doubt, Holdco Equity Securities
include all Equity Securities of each Major Shareholder Holdco held by any Major Shareholder and all Equity Securities of each Other Ordinary Shareholder held by any Other Beneficial Owner. 
  

 -3- 

 “Indirect US Investor” has the meaning set forth in Section 6.3
hereof. 
 “Investors” has the meaning set forth in the Preamble of this Agreement. 
 “Issuance Notice” has the meaning set forth in Section 5.2 hereof. 
 “Key Employee” means each of the president, chief executive officer, the chief financial officer, the chief operating
officer, the chief technology officer, the chief sales and marketing officer, the general manager, any other manager with the title of “senior vice president” or higher or any other employee with responsibilities similar to any of the
foregoing, of each Group Company and “Key Employees” mean such Persons collectively. 
 “Law”
or “Laws” means any constitutional provision, statute or other law, rule, regulation, official policy or interpretation of any Governmental Authority and any Governmental Order. 
 “Lead Investor” means each of Granite Global Ventures III L.P. and NewMargin Growth Fund, L.P. and “Lead
Investors” mean such Persons collectively. 
 “Major Shareholders” has the meaning set forth in the
Preamble of this Agreement and each individually is referred to as a “Major Shareholder”. 
 “Major
Shareholder Holdcos” has the meaning set forth in the Preamble of this Agreement and each individually is referred to as a “Major Shareholder Holdco”. 
 “Memorandum and Articles” means the Amended and Restated Memorandum of Association of the Company and the Amended and
Restated Articles of Association of the Company, each in the form attached as Exhibit B to the Share Purchase Agreement. 
 “Nanjing Daqo” has the meaning set forth in the Preamble of this Agreement. 
 “New
Securities” means, subject to the terms of Section 4.3 hereof, any Equity Securities of the Company, except for (i) any Ordinary Shares, or any option or warrant to acquire any Ordinary Shares, issued to employees,
officers, consultants or directors of the Company pursuant to the Share Incentive Plan or a stock option plan, stock purchase plan, or other equity incentive plan duly approved pursuant to Section 3.1 hereof; (ii) Equity Securities
of the Company issued upon conversion of the Series A Preferred Shares; (iii) Equity Securities of the Company issued in an initial public offering of the Ordinary Shares; or (iv) Equity Securities of the Company issued in connection with
any share split, share dividend, combination, or similar transaction of the Company duly approved pursuant to Section 3.1 hereof. 
 “Non-Exercising Shareholder” has the meaning set forth in Section 5.3 hereof. 
 “Offered Shares” has the meaning set forth in Section 7.2(i) hereof. 
 “Ordinary Directors” means the directors on the Board designated or to be designated by the Ordinary Shareholders pursuant to Section 2.1(i) hereof. 
 “Ordinary Share Equivalents” means warrants, options and rights exercisable for Ordinary Shares and instruments convertible
into or exchangeable for Ordinary Shares, including, without limitation, the Series A Preferred Shares. 
  

 -4- 

 “Ordinary Shareholders” has the meaning set forth in the Preamble of this
Agreement. 
 “Ordinary Shares” means the Company’s ordinary shares, par value US$0.0001 per share.

 “Other Beneficial Owners” have the meaning set forth in the Preamble of this Agreement. 
 “Other Ordinary Shareholders” have the meaning set forth in the Preamble of this Agreement. 
 “Party” or “Parties” have the meaning set forth in the Preamble of this Agreement. 
 “Person” means any individual, corporation, partnership, limited partnership, proprietorship, association, limited
liability company, firm, trust, estate or other enterprise or entity. 
 “PFIC” means passive foreign
investment company as defined section 1297 in the Code. 
 “PFIC Shareholder” has the meaning set forth in
Section 6.3 hereof. 
 “PRC” means the People’s Republic of China, but solely for the purposes
of this Agreement, excluding the Hong Kong Special Administrative Region, the Macau Special Administrative Region and the islands of Taiwan. 
 “Preemptive Right” has the meaning set forth in Section 5.1 hereof. 
 “Preferred Shareholders” means the holders of Series A Preferred Shares. 
 “Preferred Shareholder Majority” means one or more Preferred Shareholders who hold more than fifty percent (50%) of the then outstanding Series A Preferred Shares. 
 “Preferred Shareholder’s Option Period” has the meaning set forth in Section 7.2(iii)(a) hereof.

 “Qualified Exchange” means the New York Stock Exchange, the Nasdaq Global Market System or the Main Board of
the Hong Kong Stock Exchange. 
 “Qualified IPO” means the closing of the first firm commitment fully
underwritten public offering of Ordinary Shares or securities representing such Ordinary Shares of the Company (i) with gross proceeds to the Company of at least US$80 million and that reflects a pre-money market valuation (based on the price
per share offered to the public in the offering) of the Company of at least US$275 million and that results in such securities being listed on a Qualified Exchange, or (ii) otherwise approved by the Board, including the affirmative votes of
both Series A Directors. 
 “Related Party” means an officer, director or employee of any Group Company or any
“affiliate” or “associate” (as those terms are defined in Rule 405 promulgated under the Securities Act) of any of them. 
  

 -5- 

 “Relative” means a husband, wife, father, mother, son, daughter, brother,
sister, grandparent, grandchild, or spouse of any of these, or a person living in the same household with an individual. 
 “Remaining Securities” has the meaning set forth in Section 5.3 hereof. 
 “SAFE” has the meaning set forth in Section 8.3 hereof. 
 “Second
Notice” has the meaning set forth in Section 7.2(ii) hereof. 
 “Securities Act” has the
meaning set forth in Schedule III hereof. 
 “Selling Shareholder” has the meaning set forth in
Section 7.3(i) hereof. 
 “Series A Directors” means the director(s) on the Board designated or to
be designated by the Lead Investors pursuant to Section 2.1(i) hereof. 
 “Series A Preferred
Shares” means the Series A Preferred Shares of the Company, par value US$0.0001 per share, with the rights and privileges as set forth in the Memorandum and Articles. 
 “Share Incentive Plan” means the Company’s 2009 share incentive plan adopted in August 2009, as such plan may be
amended and restated from time to time. 
 “Share Purchase Agreement” has the meaning set forth in the
Recitals. 
 “Shares” means the Ordinary Shares and the Series A Preferred Shares. 
 “Shareholders” means the Ordinary Shareholders and Preferred Shareholders, and “Shareholder” means any one
of them. 
 “Subsidiary” means, with respect to any specified Person, any Person of which the specified Person,
directly or indirectly, owns or Controls more than fifty percent (50%) of the issued and outstanding authorized share capital, voting interests or registered capital. 
 “Third Notice” has the meaning set forth in Section 7.2(iii)(c) hereof. 
 “Third Party Purchaser” has the meaning set forth in Section 7.2(i) hereof. 
 “Transfer” has the meaning set forth in Section 7.1(i) hereof. 
 “Transfer Notice” has the meaning set forth in Section 7.2(i) hereof. 
 “Transferor” has the meaning set forth in Section 7.2(i) hereof. 
 “U.S.” means the United States of America. 
 “U.S. Person” or “United States Person” means any person described in Section 7701(a)(30) of the Code. 
 “WFOE” means each of Chongqing Daqo and Nanjing Daqo and “WFOEs” means both of the foregoing entities
collectively. 
  

 -6- 

 2. Corporate Governance. 
 2.1 Board of Directors. 
 (i) From and after the date hereof and prior to the consummation of the Qualified IPO, the Company shall have a Board consisting of no more than seven (7) directors. For so long as a Lead Investor,
together with its Affiliates, holds in aggregate at least five percent (5%) of the Company’s issued and outstanding Shares, such Lead Investor shall have the right to designate one (1) director on the Board at any time prior to the
first (1st) anniversary of the Qualified IPO. During
the period commencing on the first (1st) anniversary
of the Qualified IPO and terminating on the third (3rd) anniversary of the Qualified IPO, the Lead Investors shall have the right to jointly designate one (1) director on the Board, for so long as such Lead Investors, together with their respective Affiliates, hold in aggregate at
least five percent (5%) of the Company’s issued and outstanding Shares. For so long as the Qualified IPO has not been consummated, holders of Ordinary Shares representing a majority of the issued and outstanding Ordinary Shares shall have
the right to designate five (5) directors on the Board. 
 (ii) At each election of the directors of the Board, each Party
shall vote at any meeting of members, such number of Shares held by such Party as may be necessary, or in lieu of any such meeting, shall give such holder’s written consent, as the case may be, with respect to such number of Shares held by such
Party to keep the size of the Board at seven (7) directors and in addition (a) as may be necessary to cause the election or re-election as members of the Board, and during such period to continue in office, each of the individuals
designated pursuant to this Section 2.1 and (b) against any nominees not designated pursuant to this Section 2.1. The Series A Directors shall initially be Fumin Zhuo and Greg W. Ye. The Ordinary Directors shall
initially be Guangfu Xu, Xiang Xu, Fei Ge, Dafeng Shi and Gongda Yao. 
 (iii) Any Person or group of Persons entitled to
designate any individual to be elected as a director of the Board pursuant to this Section 2.1 shall have the right to remove any such director occupying such position and to fill any vacancy caused by the death, disability, retirement,
resignation or removal of any director occupying such position. Each Party that is a Shareholder agrees to always vote such Party’s respective Shares in support of the principle that a director to the Board designated pursuant to this
Section 2.1 shall be removed from the Board with or without cause only upon the vote or written consent of the shareholders entitled to designate such director pursuant to Section 2.1, and each such holder further agrees not
to seek, vote for or otherwise effect the removal with or without cause of any such director without such vote or written consent. If a vacancy is created on the Board at any time by the death, disability, retirement, resignation or removal of any
director designated pursuant to Section 2.1, the replacement to fill such vacancy shall be designated in the same manner, in accordance with Section 2.1, as the director whose seat was vacated. 
 (iv) Any director not elected in the manner provided in sub-paragraphs (i), (ii), or (iii) shall be elected by the
members at a general meeting, with holders of Series A Preferred Shares and Ordinary Shares voting together on an as-converted basis and not as separate classes. 
 2.2 Alternates. Subject to applicable Law, each Series A Director shall be entitled to appoint an alternate to serve at any Board meeting, and such alternate shall be permitted to attend all Board
meetings and vote on behalf of the director for whom she or he is serving as an alternate. 
  

 -7- 

 2.3 D&O Insurance. The Company shall, and the Major Shareholders and the Major
Shareholder Holdcos shall cause the Company to, as promptly as practicable and in any event prior to any initial public offering of the Ordinary Shares, purchase, and thereafter shall maintain, directors’ and officers’ insurance on terms
approved by the Lead Investors, in relation to any person who is or was a director or an officer of the Company, or who at the request of the Company is or was serving as a director or an officer of, or in any other capacity is or was acting for,
another company or a partnership, joint venture, trust or other enterprise or entity, against any liability asserted against the person and incurred by the person in that capacity. The Memorandum and Articles shall at all times provide that the
Company shall indemnify the members of the Board to the maximum extent permitted by the Law of the jurisdiction in which the Company is organized. 
 2.4 Board Meetings. The Company shall hold no less than one (1) Board meeting during each fiscal quarter. The Company shall promptly reimburse each member of the Board of Directors that
participates in or attends Board and/or committee meetings for all reasonable, documented expenses incurred in connection with such participation or attendance, including without limitation round-trip travel and lodging and/or long-distance
telephone charges. The Series A Directors shall be entitled to reimbursement from the Company for all reasonable expenses incurred in their service as directors. 
 2.5 Boards of Other Group Companies. At the request of the Lead Investors, the number of directors on the board of any Group Company (other than the Company) shall be constituted in the same manner
as the Board, and the provisions in Section 2.1, 2.2 and 2.4 shall apply mutatis mutandis to the board of directors of each Group Company subject to applicable law. Each Group Company and each Major Shareholder shall take
all steps required to give effect to the first sentence of this Section 2.5. 
 2.6 Additional Covenants.
Each Group Company and each of the Major Shareholders shall ensure that the rights granted hereunder are effective and that the Parties hereto enjoy the benefits thereof. Such actions include, without limitation, the use of the Company’s
best efforts to cause the nomination and election of the directors as provided above. No Group Company shall, and the Major Shareholders shall cause each Group Company not to, by any voluntary action, avoid or seek to avoid the observance or
performance of any of the terms to be performed hereunder by the Group Companies and the Major Shareholders, and each Group Company shall, and the Major Shareholders shall cause the Group Companies to, at all times in good faith take action as
appropriate in the carrying out of all of the provisions of this Agreement. Each Ordinary Shareholder agrees that it shall not enter into any other agreements or arrangements of any kind with respect to the voting of any Shares or deposit any Shares
in a voting trust or other similar arrangement. 
 2.7 Termination. Except Section 2.1, which shall
survive the Qualified IPO, this Section 2 shall terminate and cease to have any effect upon the consummation of the Qualified IPO. 
 3. Protective Provisions. 
 3.1 Preferred Shareholder Majority Approval Required. In addition to any
other rights provided by law and the Memorandum and Articles, as for so long as any Series A Preferred Share remains outstanding, each Group Company shall not, and each Major Shareholder shall cause each Group Company not to, take any of the
following actions without obtaining the prior written consent of the Preferred Shareholder Majority: 
 (i) any amendment,
alteration, or repeal of any provision of the constitutional documents thereof (except as may be appropriate or necessary to consummate a Qualified IPO); 
  

 -8- 

 (ii) any increase in the authorized share capital thereof (except as may be appropriate or
necessary to consummate a Qualified IPO); 
 (iii) any authorization or designation of any new class or series of shares or any
other Equity Securities thereof; 
 (iv) any redemption or repurchase of the Equity Securities thereof (except redemption or
repurchase pursuant to the Share Incentive Plan or any other share incentive plan duly adopted pursuant to subsection (viii) hereof); 
 (v) the sale of all or substantially all of the assets thereof, whether by merger, consolidation or otherwise; 
 (vi) any action that results in the payment or declaration of a dividend or other distribution thereby; 
 (vii) any voluntary dissolution or liquidation thereof or any reclassification or recapitalization of the outstanding equity thereof (in the case of reclassification or recapitalization, except as may be
appropriate or necessary to consummate a Qualified IPO); 
 (viii) the adoption or a change in the terms of any bonus or profit
sharing scheme or any employee share option or share participation scheme or plan; 
 (ix) any increase or decrease of the
authorized number of members of the board of directors thereof (except as may be appropriate or necessary to consummate a Qualified IPO); 
 (x) the issuance of any Equity Securities thereof (except as may be appropriate or necessary to consummate a Qualified IPO); 
 (xi) the undertaking of any voluntary dissolution or liquidation thereof or any reclassification or recapitalization of the outstanding equity capital thereof (except as may be appropriate or necessary to
consummate a Qualified IPO); 
 (xii) the disposal of the whole or substantial part of the intellectual property, goodwill or
assets thereof; 
 (xiii) any initial public offering other than a Qualified IPO; and 
 (xiv) authorization, agreement or undertaking to do any of the foregoing. 
 3.2 Series A Directors Approval Required. In addition to any other rights provided by law and the Memorandum and Articles, as for so
long as the Lead Investor(s) have the right to appoint any Series A Director on the Board and as long as any Series A Preferred Share remains outstanding, each Group Company shall not, and each Major Shareholder shall cause each Group Company not
to, take any of the following actions without obtaining the prior written consent of all Series A Directors: 
 (i) hire, dismiss
or make any significant change in the responsibilities of Key Employees; 
  

 -9- 

 (ii) borrow any money or obtain any financial facilities in excess of the amounts over US$1
million other than pursuant to a budget duly approved under subsection (viii) hereof; 
 (iii) create, allow to arise or
issue any debenture constituting a pledge, lien, or charge on all or any of the assets or rights (including intellectual property rights) thereof in the transaction value over US$1 million other than pursuant to a budget duly approved under
subsection (viii) hereof; 
 (iv) license or otherwise transfer any of material patents, copyrights, trademarks or other
intellectual property thereof other than in the ordinary course of business; 
 (v) purchase or lease any real property in the
transaction value over US$1 million other than pursuant to a budget duly approved under subsection (viii) hereof; 
 (vi)
acquire any investment or incur any commitment in excess of the amounts over US$1 million other than pursuant to a budget duly approved under subsection (viii) hereof; 
 (vii) adopt the annual business plan thereof or make any substantial change in the such business plan; 
 (viii) approve quarterly and annual budgets therefor and deviations in excess of 25 percent therefrom; 
 (ix) appoint or change the auditors; 
 (x) establish any new subsidiary or joint venture; 
 (xi) make any material
amendment of the accounting policies or any change to the financial year thereof; 
 (xii) enter into, terminate or make any
change to agreements with any Related Party or another Group Company in an amount over US$1 million other than pursuant to a budget duly approved under subsection (viii) hereof; and 
 (xiii) authorize, agree or undertake to do any of the foregoing. 
 3.3 Termination. This Section 3 shall terminate and cease to have any effect upon the consummation of the Qualified IPO.

 4. Information and Inspection Rights. 
 4.1 Delivery of Financial Statements. The Company shall, and each Major Shareholder shall cause the Company to, deliver to each Preferred Shareholder the following documents or reports: 

(i) within one hundred and twenty (120) days after the end of each fiscal year of the Company, a consolidated income statement and
statement of cash flows for the Company for such fiscal year and a consolidated balance sheet for the Company as of the end of

  

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the fiscal year, audited and certified by an internationally reputable firm of independent certified public accountants or any other firm of independent certified public accountants reasonably
acceptable to the Lead Investors, all prepared in accordance with the Applicable Accounting Principles; 
 (ii) within forty
five (45) days of the end of each month, a consolidated unaudited income statement and statement of cash flows for such month and a consolidated balance sheet for the Company as of the end of such month, prepared in accordance with the
Applicable Accounting Principles consistently applied throughout the period (except for year-end adjustments and except for the absence of notes) and certified by the chief financial officer of the Company; 
 (iii) within sixty (60) days of the end of each fiscal quarter, a consolidated unaudited income statement and statement of cash flows
for such quarter and a consolidated balance sheet for the Company as of the end of such quarter, prepared in accordance with the Applicable Accounting Principles consistently applied throughout the period (except for year-end adjustments and except
for the absence of notes) and certified by the chief financial officer of the Company; 
 (iv) as soon as practicable, but in
any event at least thirty (30) days prior to the end of each fiscal year, an annual budget and an business plan for the succeeding fiscal year for the Group Companies, setting forth for each quarter during such succeeding fiscal year projected
revenues, profits and operating expenses; and 
 (v) copies of all documents or other information sent to all other shareholders
and any documents filed by the Company with any relevant securities exchange or similar regulatory authority, no later than five (5) Business Days after such documents or information are filed by the Company. 
 4.2 Inspection. Each Group Company shall, and the Major Shareholders shall cause each Group Company to, permit each Preferred
Shareholder, at the Preferred Shareholder’s own expense, during normal business hours following reasonable notice, to visit and inspect the relevant Group Company, its Subsidiaries, any of the properties of the Group Company or its
Subsidiaries, and to examine the books of account and records of the Group Company and its Subsidiaries, and to discuss the affairs, finances and accounts of the Group Company and its Subsidiaries with the directors, officers, management employees,
accountants, legal counsel and investment bankers of such entities. 
 4.3 Termination. This Section 4
shall terminate and cease to have any effect upon the consummation of the initial public offering of the Ordinary Shares or securities representing such Ordinary Shares of the Company. 
 5. Preemptive Rights. 
 5.1 General. The Company hereby grants to
each Preferred Shareholder a right (the “Preemptive Right”) to purchase up to its pro rata share (and any overallotment, as provided in Section 5.3 below) of any New Securities that the Company may, from time to time,
propose to sell or issue, in the proportions set forth in this Section 5.1. Each Preferred Shareholder’s “pro rata share” for the purposes of this Section 5.1 shall be determined according to the aggregate
number of Conversion Shares held by such Preferred Shareholder immediately prior to the issuance of the New Securities in relation to the total number of Ordinary Shares and Ordinary Share Equivalents outstanding immediately prior to the issuance of
the New Securities. 
  

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 5.2 Issuance Notice. In the event the Company proposes to undertake an issuance of
New Securities, it shall give each Preferred Shareholder written notice (an “Issuance Notice”) of such intention, describing (i) the type of New Securities, (ii) the identity of the prospective subscriber, and
(iii) the price and the general terms upon which the Company proposes to issue the same. Each of the Preferred Shareholders shall have ten (10) days after the receipt of such notice to agree to purchase up to such Preferred
Shareholder’s respective pro rata share of such New Securities (as determined in Section 5.1 above) for the price and upon the terms specified in the notice by giving written notice to the Company and stating therein the quantity of
New Securities to be purchased. 
 5.3 Overallotment. If any Preferred Shareholder fails to exercise its Preemptive Right
to purchase its full pro rata share of any New Securities (each, a “Non-Exercising Shareholder”), the Company shall, within five (5) days after the expiration of the ten (10) day period described in Section 5.2
above, deliver written notice specifying the aggregate number of unpurchased New Securities that were eligible for purchase by all Non-Exercising Shareholders (the “Remaining Securities”) to each Preferred Shareholder that exercised
its right to purchase its full pro rata share of the New Securities (each, an “Exercising Shareholder of Preemptive Rights”). Each Exercising Shareholder of Preemptive Rights shall have a right of overallotment, and may exercise an
additional right to purchase the Remaining Securities by notifying the Company in writing within five (5) days after receipt of the notice by the Company pursuant to the prior sentence of this Section 5.3; provided,
however, that if the Exercising Shareholders of Preemptive Rights desire to purchase in aggregate more than the number of Remaining Securities, then the Remaining Securities will be allocated to the extent necessary among the Exercising
Shareholders of Preemptive Rights in accordance with their relative pro rata shares based on the number of the Remaining Shares such Exercising Shareholders of Preemptive Rights have elected to purchase pursuant to this Section 5.3.

 5.4 Sales by the Company. For a period of ninety (90) days following the expiration of the ten (10) day
period as described in Section 5.2 above (or the five (5) day period described in Section 5.3 above, if applicable), the Company may sell any New Securities with respect to which the Preferred Shareholders’ rights
under this Section 5 were not exercised, to the purchasers identified in the Issuance Notice and at a price and upon terms not more favorable to the purchasers thereof than specified in the Issuance Notice. In the event the Company has
not sold such New Securities within such ninety (90) day period, the Company shall not and the Major Shareholders shall cause the Company to not thereafter issue or sell any New Securities, without first again offering such securities to the
Preferred Shareholders in the manner provided in this Section 5. 
 5.5 Termination. This
Section 5 shall terminate and cease to have any effect upon the consummation of the initial public offering of the Ordinary Shares or securities representing such Ordinary Shares of the Company. 
 6. Tax Matters. 
 6.1
Each Group Company shall not, and the Major Shareholders shall cause each Group Company not to, take any action inconsistent with the treatment of the relevant Group Company as a corporation for U.S. federal income tax purposes and each Group
Company shall not, and the Major Shareholders shall cause each Group Company not to, elect to be treated as an entity other than a corporation for U.S. federal income tax purposes. 
  

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 6.2 Each Group Company and Major Shareholder shall use their best efforts to arrange
the management and business activities of each Group Company in such a way that none of the Group Companies is treated as a resident for tax purposes of or is subject to income tax in a jurisdiction other than the jurisdiction in which it has been
organized. 
 6.3 Each Group Company and Major Shareholder shall use their best efforts to avoid future status of any
Group Company as a PFIC. Within one hundred and twenty (120) days from the end of each taxable year of the Company, each Group Company shall, and the Major Shareholders shall cause each Group Company to determine, in consultation with a
reputable accounting firm, whether any Group Company was a PFIC in such taxable year (including whether any exception to PFIC status may apply). If any Group Company or Major Shareholder determines that any Group Company was a PFIC in such taxable
year (or if a Government Authority or an Investor informs a Group Company that it has so determined), the Group Company or Major Shareholder, as relevant, shall, within one hundred and twenty (120) days from the end of such taxable year,
provide the following information to each Investor that is a United States Person and each United States Person that holds either direct or indirect interest in an Investor (“Indirect US Investor”) (hereinafter, collectively
referred to as a “PFIC Shareholder”): (i) all information available to the relevant Group Company as a PFIC Shareholder may request to permit such PFIC Shareholder to (a) accurately and timely prepare its U.S. tax returns
and comply with any other reporting requirements, if any, arising from its investment in the Group Company and relating to the relevant Group Company’s classification as a PFIC and (b) make any election (including, without limitation, a
“qualified electing fund” election under Section 1295 of the Code), with respect to the relevant Group Company; and (ii) a completed “PFIC Annual Information Statement” as described in Treasury Regulation
Section 1.1295-1(g). A Group Company shall be required to provide the information described above to an Indirect US Investor only if an Investor requests in writing that the Group Company provide such information to such Indirect US Investor
and furnishes the Group Company with written identifying information (such as name, address, and other identifying information) about the Indirect US Investor. 
 6.4 Each Party that is a shareholder of any Group Company (except for the Investors) represents (i) that it is not a United States Person, and (ii) that it is not owned, wholly or in
part, directly or indirectly, by any United States Person. Each Party that is a shareholder of any Group Company (other than the Investors) shall provide prompt written notice to the relevant Group Company, and the Group Company shall in turn
provide prompt written notice to each of other Parties that is a shareholder, of any subsequent change in United States Person status in their shareholders. Each Group Company represents that, other than the Investors, it does not have any direct or
indirect shareholders that are United States Persons. Within 120 days from the end of each taxable year, each Group Company shall determine, in consultation with a reputable accounting firm, whether it is a CFC. Each Group Company shall provide to
any Investors upon request (i) any information in its possession concerning its shareholders and, to the Group Company’s actual knowledge, the direct and indirect interest holders in each shareholder, sufficient for the Investor to
determine whether or not such Group Company is a CFC; and (ii) in the event any Group Company is determined to be a CFC, any information reasonably requested by the Investor in connection with complying with applicable reporting requirements
for U.S. tax purposes. The Major Shareholders and all Group Companies shall use their best efforts to avoid generating for any taxable year in which any Group Company is a CFC, income that would be includible in the income of the Investors (or any
Indirect US Investor) pursuant to Section 951 of the Code. 
  

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 6.5 The Company shall comply, and the Major Shareholders shall cause all Group
Companies to comply, with all record-keeping, reporting, and other requirements that the Investors inform the Company are necessary to enable the Investors to comply with any applicable U.S. tax rules. The Company shall, and the Major Shareholders
shall cause all Group Companies to, also provide each Investor with any information reasonably requested by such Investor to enable the Investor to comply with any applicable U.S. tax rules. 
 6.6 The cost incurred by any Group Company in providing the information that it is required to provide, or is required to cause to be
provided, and the cost incurred by the Group Company in taking the action, or causing the action to be taken, as described in this Section 5.5 shall be borne by the relevant Group Company. 
 6.7 Termination. This Section 6 shall terminate and cease to have any effect upon the consummation of a Qualified IPO.

 7. Share Transfer Rights and Restrictions 
 7.1 Prohibition on Transfer of Shares. 
 (i) Ordinary
Shareholders. Subject to the provisions in Sections 7.2, 7.3, and 7.4 of this Agreement, no Party that is an Ordinary Shareholder, regardless of such Ordinary Shareholder’s employment status with the Company, shall
directly or indirectly sell, assign, transfer, pledge, hypothecate, or otherwise encumber or dispose of in any way (“Transfer”) all or any part of any interest in any Equity Securities of the Company now or hereafter owned or held
by such Ordinary Shareholder. 
 (ii) Prohibited Transfers Void. Any Transfer of Equity Securities of the Company by a
Party that is an Ordinary Shareholder not made in compliance with this Agreement shall be null and void as against the Company, shall not be recorded on the books of the Company and shall not be recognized by the Company. 
 (iii) No Indirect Transfers. Each of the Major Shareholders and Other Beneficial Owners agrees that any Transfer, sale or issuance of
any Holdco Equity Securities or any interest therein shall be deemed to be an indirect Transfer of Equity Securities of the Company and therefore is subject to all of the terms, conditions and restrictions applicable to Transfers set forth in this
Agreement. Furthermore, the Major Shareholders and Other Beneficial Owners shall not make, cause or permit any Transfer, sale or issuance of any Holdco Equity Securities or any interest therein without first complying with all of the terms,
conditions and restrictions applicable to a Transfer of Equity Securities of the Company pursuant to this Agreement, and any purported Transfer, sale or issuance of any Holdco Equity Securities or any interest therein in contravention of this
Agreement shall be void and ineffective for any and all purposes and shall not confer on any transferee or purported transferee any rights whatsoever, and no Ordinary Shareholder shall recognize any such Transfer, sale or issuance. 
  

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 7.2 Rights of First Refusal. 
 (i) Transfer Notice. If any Party that is an Ordinary Shareholder proposes to sell any Equity Securities of the Company (such holder,
a “Transferor”) to one or more third parties that are not Affiliates of such Transferor or otherwise related to such Transferor through common ownership or Control (the “Third Party Purchaser”), other than in
connection with and as part of an initial public offering of the Ordinary Shares of the Company, then the Transferor shall give the Company and each Preferred Shareholder written notice of the Transferor’s intention to make the Transfer (the
“Transfer Notice”), which shall include (i) a description of the Equity Securities of the Company to be transferred (the “Offered Shares”), (ii) the identity of the Third Party Purchaser(s) and
(iii) the consideration and the material terms and conditions upon which the proposed Transfer is to be made. The Transfer Notice shall certify that the Transferor has received a definitive offer from the Third Party Purchaser and in good faith
believes a binding agreement for the Transfer is obtainable on the terms set forth in the Transfer Notice. The Transfer Notice shall also include a copy of any written proposal, term sheet or letter of intent or other agreement relating to the
proposed Transfer. 
 (ii) Company’s Option. The Company shall have an option for a period of ten (10) days
following its receipt of the Transfer Notice (the “Company’s Option Period”) to elect to purchase all or a portion of the Offered Shares at the same price and subject to the same material terms and conditions as described in
the Transfer Notice, by notifying the Transferor and each Shareholder in writing before the expiration of the Company’s Option Period as to the number of such Offered Shares that it wishes to purchase. Within ten (10) days after expiration
of the Company’s Option Period, the Transferor shall deliver written notice to each of the other Shareholders (the “Second Notice”) setting forth the number of Offered Shares, if any, which the Company has not elected to
purchase. 
 (iii) Preferred Shareholders’ Option. 
 (a) Each Preferred Shareholder shall have an option for a period of ten (10) days following receipt of the Second Notice (the
“Preferred Shareholder’s Option Period”) to elect to purchase all or any portion of its respective pro rata share of the Offered Shares set out in the Second Notice at the same price and subject to the same material terms and
conditions as described in the Transfer Notice, by notifying the Transferor and the Company in writing before expiration of the Preferred Shareholder’s Option Period as to the number of such Offered Shares that it wishes to purchase.

 (b) For the purposes of this Section 7.2(iii), each such Preferred Shareholder’s “pro rata share”
of the Offered Shares shall be equal to (A) the total number of Offered Shares which the Company has not elected to purchase pursuant to Section 7.2(ii), multiplied by (B) a fraction, the numerator of which shall be the
aggregate number of Conversion Shares held by such Preferred Shareholder on the date of the Transfer Notice and the denominator of which shall be the total number of Conversion Shares held by all Preferred Shareholders on such date. 
 (c) If any such Preferred Shareholder fails to exercise its right to purchase its full pro rata share of the available Offered Shares, the
Transferor shall deliver written notice (the “Third Notice”) within five (5) days after the expiration of the Preferred Shareholder’s Option Period to the Company and each Preferred Shareholder that elected to purchase its
entire pro rata share of the Offered Shares (an “Exercising Shareholder of Right of First Refusal”). The Exercising Shareholders of Right of First Refusal shall have a right of re-allotment, and may exercise an additional right to
purchase such unpurchased Offered Shares by notifying the

  

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Transferor and the Company in writing within ten (10) days after receipt of the Third Notice; provided, however, that if the Exercising Shareholders of Right of First Refusal
desire to purchase in aggregate more than the number of such unpurchased Offered Shares, then such unpurchased Offered Shares will be allocated to the extent necessary among the Exercising Shareholders of Right of First Refusal in accordance with
their relative pro rata shares based on the number of the unpurchased Offered Shares such Exercising Shareholders of Right of First Refusal have elected to purchase pursuant to this Section 7.2(iii)(c). 
 (d) Subject to applicable securities Laws, each such Preferred Shareholder shall be entitled to apportion Offered Shares to be purchased
among its Affiliates, provided that such Preferred Shareholder notifies the Company and the Transferor in writing. 
 (iv) Procedure. If the Company and/or any Preferred Shareholder gives the Transferor notice that it desires to purchase Offered Shares, and, as the case may be, its re-allotment, then payment for the Offered Shares to be
purchased shall be by wire transfer in immediately available funds of the appropriate currency, against delivery of such Offered Shares to be purchased, at a place agreed to by the Transferor, the Company and all the participating Preferred
Shareholders and at the time of the scheduled closing therefor, no later than sixty (60) days after the Company’s receipt of the Transfer Notice, unless such notice contemplated a later closing with the Third Party Purchaser or unless the
value of the purchase price has not yet been established pursuant to Section 7.2(v). The Transferor shall have the right to terminate or withdraw any Transfer Notice and any intent to transfer Offered Shares at any time, whether or not
the Company and/or any Preferred Shareholder has elected to purchase under this Section 7.2 any Offered Shares offered thereby. 
 (v) Valuation of Property. 
 (a) Should the purchase price specified in the
Transfer Notice be payable in property other than cash or evidences of indebtedness, the Company and the Preferred Shareholders shall have the right to pay the purchase price in the form of cash equal in amount to the fair market value of such
property. 
 (b) If the Transferor, the Company and the Preferred Shareholders cannot agree on such cash value within the
Preferred Shareholder’s Option Period, the valuation shall be made by an appraiser of internationally recognized standing jointly selected by the Transferor, the Company (if the Company has elected to purchase any Offered Shares) and the
Preferred Shareholders that have elected to purchase a majority of the Offered Shares elected to be purchased by the Preferred Shareholders (if any Preferred Shareholders have elected to purchase any Offered Shares) or, if they cannot agree on an
appraiser within the Company’s Option Period (or the Preferred Shareholder’s Option Period if the Company does not elect to purchase all Offered Shares), each shall select an appraiser of internationally recognized standing and the two
appraisers shall designate a third appraiser of internationally recognized standing, whose appraisal shall be determinative of such value. 
 (c) The cost of such appraisal shall be shared equally by the Transferor, on the one hand, and the Company and the participating Preferred Shareholders, on the other hand, with the portion of the cost
borne by the Company and the Preferred Shareholders to be borne pro rata by the Company and each participating Preferred Shareholder based on the number of Offered Shares such Party has elected to purchase pursuant to this Section 7.2

  

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 (d) If the value of the purchase price in the Transfer Notice is not
determined within the sixty (60) day period specified in Section 7.2(iv) above, the closing of the purchase of Offered Shares by the Company and/or Preferred Shareholders shall be held on or prior to the fifth (5th) business day after such valuation shall have been made
pursuant to this Section 7.2(v). 
 7.3 Right of Co-Sale. 
 (i) To the extent the Company and the Preferred Shareholders do not exercise their respective rights of first refusal as to all of the Equity
Securities of the Company proposed to be sold by any Transferor pursuant to Section 7.2, each Preferred Shareholder that did not exercise its right of first refusal pursuant to Section 7.2 with respect to such Offered Shares
shall have the right to participate in such sale of Equity Securities on the same terms and conditions as specified in the Transfer Notice (but in no event less favorable to the Transferor) by notifying the Transferor in writing within ten
(10) days after the expiration of the last applicable notice period set forth in Section 7.2(iii) (such Preferred Shareholder a “Selling Shareholder”). Such Selling Shareholder’s notice to the Transferor shall
indicate the number of Equity Securities the Selling Shareholder wishes to sell under its right to participate. To the extent one or more Preferred Shareholders exercise such right of participation in accordance with the terms and conditions set
forth below, the number of Equity Securities of the Company that the Transferor may sell in the Transfer shall be correspondingly reduced proportionally. 
 (ii) The total number of Equity Securities of the Company that each Selling Shareholder may elect to sell shall be equal to the product of (i) the aggregate number of the Offered Shares being
transferred following the exercise or expiration of all rights of first refusal pursuant to Section 7.2 hereof, multiplied by (ii) a fraction, the numerator of which is the number of Ordinary Shares (assuming the exercise,
conversion and exchange of any Ordinary Shares Equivalents) owned by such Selling Shareholder on the date of the Transfer Notice and the denominator of which is the total number of Ordinary Shares (assuming the exercise, conversion and exchange of
any Ordinary Shares Equivalents) owned by the Transferor and all Selling Shareholders on the date of the Transfer Notice. 
 (iii) Each Selling Shareholder shall effect its participation in the sale by promptly delivering to the Transferor for transfer to the Third Party Purchaser one or more certificates, properly endorsed for transfer, which represent the type
and number of Equity Securities of the Company which such Selling Shareholder elects to sell; provided, however that if the Third Party Purchaser objects to the delivery of Equity Securities in lieu of Ordinary Shares, such Selling
Shareholder shall only deliver Ordinary Shares (and therefore shall convert any such Equity Securities into Ordinary Shares) and certificates corresponding to such Ordinary Shares. The Company agrees to make any such conversion concurrent with the
actual transfer of such shares to the purchaser and contingent on such transfer. 
 (iv) The share certificate or certificates
that a Selling Shareholder delivers to the Transferor pursuant to this Section 6.3(iv) shall be transferred to the Third Party Purchaser in consummation of the sale of the Equity Securities pursuant to the terms and conditions specified
in the Transfer Notice, and the Transferor shall concurrently therewith remit to such Selling Shareholder that portion of the sale proceeds to which such Selling Shareholder is entitled by reason of its participation in such sale. 
 (v) To the extent that any Third Party Purchaser prohibits the participation of a Selling Shareholder exercising its co-sale rights
hereunder in a proposed Transfer or otherwise refuses to purchase shares or other securities from a Selling Shareholder exercising its

  

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co-sale rights hereunder, the Transferor shall not sell to such Third Party Purchaser any Equity Securities unless and until, simultaneously with such sale, the Transferor shall purchase from
such Selling Shareholder such shares or other securities that such Selling Shareholder would otherwise be entitled to sell to the Third Party Purchaser pursuant to its co-sale rights for the same consideration and on the same terms and conditions as
the proposed transfer described in the Transfer Notice. 
 7.4 Non-Exercise of Rights. 
 (i) To the extent that the Company and the Preferred Shareholders have not exercised their rights to purchase all Offered Shares within the
time periods specified in Section 7.2, subject to the right of the Preferred Shareholders to exercise their rights to participate in the sale of Offered Shares within the time periods specified in Section 7.3, the Transferor
shall have a period of sixty (60) days from the expiration of such rights specified in Section 7.2 in which to sell the remaining Offered Shares to the Third Party Purchaser identified in the Transfer Notice upon terms and
conditions (including the purchase price) no more favorable to the purchaser than those specified in the Transfer Notice, so long as any such sale is effected in accordance with any applicable securities Laws. The Parties agree that the Third Party
Purchaser, prior to and as a condition to the consummation of any sale, shall execute and deliver to the Parties documents and other instruments assuming the obligations of such Transferor under this Agreement with respect to the Offered Shares, and
the transfer shall not be effective and shall not be recognized by any Party until such documents and instruments are so executed and delivered. 
 (ii) In the event the Transferor does not consummate the sale or disposition of any Offered Shares within sixty (60) days from the expiration of such rights, rights of the Shareholders under
Section 7.2 and Section 7.3, as the case may be, shall be re-invoked and shall be applicable to any subsequent disposition of such Offered Shares by the Transferor until such rights lapse in accordance with the terms of this
Agreement. 
 (iii) The exercise or non-exercise of the rights of the Shareholders under this Section 7.4 to
purchase Equity Securities of the Company from a Transferor or participate in the sale of Equity Securities by a Transferor shall not adversely affect their rights to make subsequent purchases from the Transferor of Equity Securities of the Company
or subsequently participate in sales of Equity Securities by the Transferor hereunder. 
 7.5 Legend. Each existing or
replacement certificate for Equity Securities of the Company now owned or hereafter acquired by any Shareholder other than a Preferred Shareholder shall bear the following legend: 
 “THE SALE, PLEDGE, HYPOTHECATION, ASSIGNMENT OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND
CONDITIONS OF A INVESTOR RIGHTS AGREEMENT BY AND AMONG THE SHAREHOLDER, THE COMPANY AND CERTAIN HOLDERS OF SHARES OF THE COMPANY. COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE COMPANY.” 
 7.6 Termination. This Section 7 shall terminate and cease to have any effect upon the consummation of the initial public
offering of the Ordinary Shares of the Company. 
  

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 8. Additional Agreements; Other Covenants. 
 8.1 Registration Rights. 
 The Company hereby grants to the Shareholders such registration rights as set forth on Schedule III. 
 8.2 Compliance. Each Group Company shall, and each Major Shareholder shall cause each Group Company to, use its best efforts to cause any direct or indirect subsidiary or entity Controlled by the
Company, including without limitation the Group Companies, whether now in existence or formed in the future, to comply in all material respects with all applicable Laws. 
 8.3 PRC Matters. Each Ordinary Shareholder, Major Shareholder and Other Beneficial Owner who is or becomes a “Domestic Resident” as defined in Circular 75 issued by the State
Administration of Foreign Exchange (“SAFE”) on October 21, 2005 (as supplemented by implementing rules and regulations, including without limitation the implementing rule issued by SAFE on May 31, 2007 and known as Notice
106, and by any successor rule or regulation under PRC law, including but not limited to any rule or regulation interpreting or setting forth provisions for implementation of any of the foregoing, “Circular 75”) shall use its best
efforts to comply with, and the Group Companies shall use their best efforts to cause such Ordinary Shareholder, Major Shareholder or Other Beneficial Owner to comply with, any applicable reporting and registration requirements under Circular 75 and
any other applicable SAFE rules and regulations in respect of shares of the Company held or beneficially owned by such Ordinary Shareholder, Major Shareholder or Other Beneficial Owner. 
 8.4 Memorandum and Articles. In the event of any conflict or inconsistency between any of the terms of this Agreement and any of the
terms of the Memorandum and Articles, the terms of this Agreement shall prevail in all respects except as against the Company, the Parties (except for the Company) shall give full effect to and act in accordance with the provisions of this Agreement
over the provisions of the Memorandum and Articles, and the Parties hereto (except for the Company) shall exercise all voting and other rights and powers (including to procure any required alteration to the Memorandum and Articles to resolve such
conflict or inconsistency) to make the provisions of this Agreement effective. 
 8.5 Confidentiality. Each Party
acknowledges that the information received by it pursuant to this Agreement may be confidential and for its use only, and it will not reproduce, disclose or disseminate such information to any other person (other than its employees or agents having
a need to know the contents of such information, and its attorneys), except in connection with the exercise of rights under this Agreement, unless the Company has made such information available to the public generally or applicable law requires
such disclosure. Notwithstanding the foregoing, any Party may disclose such information to its current or bona fide prospective investors, employees, investment bankers, lenders, partners, accountants and attorneys, in each case only where such
persons or entities are under appropriate nondisclosure obligations. 
 8.6 Qualified IPO. Subject to applicable Laws,
each of the Company, the Ordinary Shareholders and the Major Shareholders shall use their best efforts to effectuate the closing of a Qualified IPO as soon as practicable. 
  

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 8.7 Incorporation by Reference. Article 7A of the Memorandum and Articles are
hereby incorporated by reference in this Agreement as if repeated in their entirety herein. Any breach of such articles by the Company or any Shareholder shall be deemed to be a breach of this Agreement. The Company shall, and each Major
Shareholder, Other Beneficial Owner and Ordinary Shareholder shall cause the Company to, abide by, and take all actions necessary to achieve the economic effect of, all of its obligations under the Memorandum and Articles, including, but not limited
to, the provisions related to the conversion of the Series A Preferred Shares, the adjustment to the conversion prices of the Series A Preferred Shares, the declaration and payment of dividends, the winding up of the Company and payment of
liquidation preferences on the Series A Preferred Shares and the redemption of the Series A Preferred Shares. 
 8.8
Investors’ Lockup. Without the prior written consent of the Company, the Investors will not, at any time prior to the first anniversary of the Closing, offer, pledge, announce the intention to sell, sell, contract to sell, grant any
option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any Equity Securities held by such Investors; provided, however, that such Investors may transfer its Equity Securities to an Affiliate of such
Investor if such Affiliates shall sign and deliver an agreement in which such Affiliate covenants to comply with the forgoing transfer restrictions. 
 8.9 Termination. Except Sections 8.1 and 8.8. which shall survive the Qualified IPO, this Section 8 shall terminate and cease to have any effect upon the
consummation of the Qualified IPO. 
 9. Miscellaneous. 
 9.1 Further Assurances. Upon the terms and subject to the conditions herein, each of the Parties hereto agrees to use its best efforts to take or cause to be taken all action, to do or cause to be
done, to execute such further instruments, and to assist and cooperate with the other Parties hereto in doing, all things necessary, proper or advisable under applicable Laws or otherwise to consummate and make effective, in the most expeditious
manner practicable, the transactions contemplated by this Agreement and, to the extent reasonably requested by another Party, to enforce rights and obligations pursuant hereto. 
 9.2 Assignments and Transfers; No Third Party Beneficiaries. Except as otherwise provided herein, this Agreement and the rights and
obligations of the Parties hereunder shall inure to the benefit of, and be binding upon, their respective successors, assigns and legal representatives, but shall not otherwise be for the benefit of any third party. The rights of any Investor
hereunder (including, without limitation, registration rights) are assignable in connection with the transfer (subject to applicable securities Laws and other Laws) of Equity Securities of the Company held by such Investor but only to the extent of
such transfer, and any such transferee shall execute and deliver to the Company and the other parties hereto a deed of adherence in the form attached hereto as Exhibit A becoming a party hereto as an “Investor” subject to the terms
and conditions hereof. This Agreement and the rights and obligations of any party hereunder shall not otherwise be assigned without the mutual written consent of the other Parties; provided that each Investor may assign its rights and obligations to
an Affiliate of such Investor without consent of the other parties under this Agreement. 
 9.3 Governing Law. This
Agreement shall be governed by and construed under the Laws of New York, the United States, without regard to principles of conflict of laws thereunder. 
  

 -20- 

 9.4 Dispute Resolution. 
 (i) Any dispute, controversy or claim arising out of, in connection with or relating to this Agreement, including the interpretation,
validity, invalidity, breach or termination thereof, shall be settled by arbitration. 
 (ii) The arbitration shall be conducted
in Hong Kong under the Hong Kong International Arbitration Centre Administered Arbitration Rules in force when the notice of arbitration is submitted in accordance with the said Rules. The number of arbitrators shall be three. The arbitration shall
be conducted in the English language. 
 (iii) Each party shall cooperate with the other in making full disclosure of and
providing complete access to all information and documents requested by the other in connection with such arbitration proceedings, subject only to any doctrine of legal privilege or any confidentiality obligations binding on such party. 

(iv) The costs of arbitration shall be borne by the losing party, unless otherwise determined by the arbitration tribunal. 
 (v) When any dispute occurs and when any dispute is under arbitration, except for the matters in dispute, the parties shall continue to
fulfill their respective obligations and shall be entitled to exercise their rights under this Agreement. 
 (vi) The award of
the arbitration tribunal shall be final and binding upon the parties, and the prevailing party may apply to a court of competent jurisdiction for enforcement of such award. 
 (vii) Regardless of anything else contained herein, either party shall be entitled to seek preliminary injunctive relief from any court of
competent jurisdiction pending the conclusion of the arbitration. 
 (viii) In order to facilitate the comprehensive resolution
of related disputes, and upon request of any Party to the arbitration proceeding, the arbitration tribunal may consolidate the arbitration proceeding with any other arbitration proceeding(s) involving any of the Parties relating to this Agreement,
the Share Purchase Agreement, or any other Transaction Documents (as defined in the Share Purchase Agreement). The arbitration tribunal shall not consolidate such arbitrations unless it determines that (i) there are issues of fact or law
common to the two proceedings so that a consolidated proceeding would be more efficient than separate proceedings, and (ii) no party would be prejudiced as a result of such consolidation through undue delay or otherwise. In the event of
different rulings on this question by the arbitration tribunal constituted hereunder and the tribunal(s) constituted under any of the Transaction Agreements (as defined in the Share Purchase Agreement), the ruling of the tribunal constituted under
the Share Purchase Agreement shall prevail. 
 9.5 Notices. Any notice required or permitted pursuant to this Agreement
shall be given in writing and shall be given either personally or by sending it by next-day or second-day courier service, fax, electronic mail or similar means to the address as shown below the signature of such party on Schedule IV (or at
such other address as such party may designate by fifteen (15) days’ advance written notice to the other parties to this Agreement given in accordance with this Section 9.5). Where a notice is given personally, delivery shall
be deemed to have been effected on receipt (or when delivery is refused). Where a notice is sent by next-day or

  

 -21- 

 
second-day courier service, service of the notice shall be deemed to be effected by properly addressing, pre-paying and sending by next-day or second-day service through an
internationally-recognized courier a letter containing the notice, with a confirmation of delivery, and to have been effected on receipt (or when delivery is refused). Where a notice is sent by fax or electronic mail, service of the notice shall be
deemed to be effected by properly addressing, and sending such notice through a transmitting organization, with a written confirmation of delivery, and to have been effected on the day the same is sent as aforesaid if sent during normal business
hours of the recipient, otherwise on the next Business Day. 
 9.6 Rights Cumulative. Except as expressly provided
herein, each and all of the various rights, powers and remedies of a Party hereto will be considered to be cumulative with and in addition to any other rights, powers and remedies which such Party may have at law or in equity in the event of the
breach of any of the terms of this Agreement. The exercise or partial exercise of any right, power or remedy will neither constitute the exclusive election thereof nor the waiver of any other right, power or remedy available to such Party.

 9.7 Successor Indemnification. If the Company or any of its successors or assignees consolidates with or merges into
any other Person and is not the continuing or surviving corporation or entity of such consolidation or merger, then to the extent necessary, proper provision shall be made so that the successors and assignees of the Company assume the obligations of
the Company with respect to indemnification of members of the Board of Directors as in effect immediately before such transaction, whether such obligations are contained in the Memorandum and Articles, or elsewhere, as the case may be. 

9.8 Severability. In case any provision of the Agreement shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby. If, however, any provision of this Agreement shall be invalid, illegal, or unenforceable under any such applicable Law in any jurisdiction, it shall, as
to such jurisdiction, be deemed modified to conform to the minimum requirements of such Law, or, if for any reason it is not deemed so modified, it shall be invalid, illegal, or unenforceable only to the extent of such invalidity, illegality, or
limitation on enforceability without affecting the remaining provisions of this Agreement, or the validity, legality, or enforceability of such provision in any other jurisdiction. 
 9.9 Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or prospectively), only with the written consent of each of (i) the Company, (ii) the Major Shareholders, and (iii) both Lead Investors, provided that any
amendment or waiver that would adversely affect the rights of any Investor in a manner disproportionate to any adverse effect such amendment or waiver would have on the rights of the other Investors shall require such Investor’s written
consent. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each of the Parties hereto. 
 9.10 No Waiver. Failure to insist upon strict compliance with any of the terms, covenants, or conditions hereof will not be deemed a waiver of such term, covenant, or condition, nor will any waiver or relinquishment of, or failure to
insist upon strict compliance with, any right, power or remedy hereunder at any one or more times be deemed a waiver or relinquishment of such right, power or remedy at any other time or times. 
  

 -22- 

 9.11 Delays or Omissions. No delay or omission to exercise any right, power or remedy
accruing to any Party under this Agreement, upon any breach or default of any other Party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting Party nor shall it be construed to be a waiver of
any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent or approval of any kind or character on the part of any Party of any breach or default under this Agreement, or any waiver on the part of any Party of any provisions or conditions of this Agreement, must be in
writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any Party, shall be cumulative and not alternative. 
 9.12 No Presumption. The Parties acknowledge that each Party has been represented by counsel in connection with this Agreement.
Accordingly, any rule of law or any legal decision that would require interpretation of any claimed ambiguities in this Agreement against the Party that drafted it has no application and is expressly waived. If any claim is made by a Party relating
to any conflict, omission or ambiguity in the provisions of this Agreement, no presumption or burden of proof or persuasion will be implied because this Agreement was prepared by or at the request of any Party or its counsel. 
 9.13 Headings and Subtitles; Interpretation. The titles and subtitles used in this Agreement are used for convenience only and are
not to be considered in construing or interpreting this Agreement. Unless a provision hereof expressly provides otherwise: (i) the term “or” is not exclusive; (ii) words in the singular include the plural, and words in the plural
include the singular; (iii) the terms “herein”, “hereof”, and other similar words refer to this Agreement as a whole and not to any particular section, subsection, paragraph, clause, or other subdivision; (iv) the
term “including” will be deemed to be followed by “, but not limited to,”; (v) the masculine, feminine, and neuter genders will each be deemed to include the others; (vi) the terms “shall”,
“will”, and “agrees” are mandatory, and the term “may” is permissive; (vii) the term “day” means “calendar day”; and (viii) all references to dollars or to “US$” are to currency
of the United States of America (and shall be deemed to include reference to the equivalent amount in other currencies). 
 9.14 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Facsimile and e-mailed copies of
signatures shall be deemed to be originals for purposes of the effectiveness of this Agreement. 
 9.15 Consent to Specific
Performance. The Parties declare that it is impossible to measure in money the damages that would be suffered by a Party by reason of the failure by any other Party to perform any of the obligations hereunder. Therefore, if any Party
shall institute any action or proceeding to enforce the provisions hereof, any Party against whom such action or proceeding is brought hereby waives any claim or defense therein that the other Parties have an adequate remedy at law. 
 9.16 Entire Agreement. This Agreement (including the Exhibits and Schedules hereto) constitutes the full and entire understanding and
agreement among the Parties with regard to the subjects hereof and thereof, and supersedes all other agreements between or among any of the Parties with respect to the subject matter hereof. After the execution and delivery of this Agreement, to the
extent that there is any conflict between this Agreement and any provision of any other agreement, arrangement or understanding between the Company and any holder of equity securities of the Company, the terms and conditions of this Agreement shall
prevail. 
  

 -23- 

 9.17 Aggregation of Stock. All Shares held or acquired by any Affiliates shall
be aggregated together for the purpose of determining the availability of any rights under this Agreement. 
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remainder of this page has been intentionally left blank.] 
  

 -24- 

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

							
	COMPANY:	 		 	DAQO NEW ENERGY CORP.
				
		 		 	By:	 	 /s/ Gongda Yao

		 		 		 	Name: Gongda Yao
		 		 		 	Title: Chief Executive Officer

 OTHER GROUP COMPANIES: 
  

							
		 		 	DAQO SOLAR ENERGY NORTH AMERICA
				
		 		 	By:	 	 /s/ Gongda Yao

		 		 		 	Name: Gongda Yao
		 		 		 	Title: Authorized Signatory

  

							
		 		 	CHONGQING DAQO NEW ENERGY CO., LTD.
				
		 		 	By:	 	 /s/ Gongda Yao

		 		 		 	Name: Gongda Yao
		 		 		 	Title: Authorized Signatory

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

			
	NANJING DAQO NEW ENERGY CO., LTD.
		
	By:	 	 /s/ Gongda Yao

		 	Name: Gongda Yao
		 	Title: Authorized Signatory
	
	DAQO NEW MATERIAL CO., LTD.
		
	By:	 	 /s/ Gongda Yao

		 	Name: Gongda Yao
		 	Title: Authorized Signatory

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

							
	INVESTORS:	 		 	GRANITE GLOBAL VENTURES III L.P.
			
		 		 	By: Granite Global Ventures III L.L.C., its General Partner
				
		 		 	By:	 	 /s/ Hany Nada

		 		 		 	Name: Hany Nada
		 		 		 	Title: Managing Director
			
		 		 	GGV III ENTREPRENEURS FUND L.P.
			
		 		 	By: Granite Global Ventures III L.L.C., its General Partner
				
		 		 	By:	 	 /s/ Hany Nada

		 		 		 	Name: Hany Nada
		 		 		 	Title: Managing Director

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

							
	INVESTORS:	 		 	VENTURE STAR INVESTMENT (HK) LIMITED
				
		 		 	By:	 	 /s/ Fumin Zhuo

		 		 		 	Name: Fumin Zhuo
		 		 		 	Title: Chairman

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

							
	INVESTORS:	 		 	NEWMARGIN GROWTH FUND, L.P.
				
		 		 	By:	 	 /s/ Greg W. Ye

		 		 		 	Name: Greg W. Ye
		 		 		 	Title: Managing Director

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

							
	INVESTORS:	 		 	SIGULER GUFF BRIC OPPORTUNITIES FUND, LP
			
		 		 	By: SIGULER GUFF BRIC GP, LLC, its General Partner
				
		 		 	By:	 	 /s/ Donald P. Spencer

		 		 		 	Name: Donald P. Spencer
		 		 		 	Title: Managing Director
			
		 		 	SIGULER GUFF BRIC OPPORTUNITIES FUND (E), LP
			
		 		 	By: SIGULER GUFF BRIC GP, LLC, its General Partner
				
		 		 	By:	 	 /s/ Donald P. Spencer

		 		 		 	Name: Donald P. Spencer
		 		 		 	Title: Managing Director

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

							
	INVESTORS:	 		 	SIGULER GUFF BRIC OPPORTUNITIES FUND II, LP
			
		 		 	By: SIGULER GUFF BRIC II GP, LLC, its General Partner
				
		 		 	By:	 	 /s/ Donald P. Spencer

		 		 		 	Name: Donald P. Spencer
		 		 		 	Title: Managing Director
			
		 		 	SIGULER GUFF BRIC OPPORTUNITIES FUND II (T), LP
			
		 		 	By: SIGULER GUFF BRIC II GP, LLC, its General Partner
				
		 		 	By:	 	 /s/ Donald P. Spencer

		 		 		 	Name: Donald P. Spencer
		 		 		 	Title: Managing Director
			
		 		 	SIGULER GUFF BRIC OPPORTUNITIES FUND II (M), LP
			
		 		 	By: SIGULER GUFF BRIC II GP, LLC, its General Partner
				
		 		 	By:	 	 /s/ Donald P. Spencer

		 		 		 	Name: Donald P. Spencer
		 		 		 	Title: Managing Director

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

							
	MAJOR SHAREHOLDERS:	 		 	Guangfu Xu
			
		 		 	 /s/ Guangfu Xu

			
		 		 	Xiang Xu
			
		 		 	 /s/ Xiang Xu

			
	ORDINARY SHAREHOLDERS:	 		 	GOLD INTELLECT LIMITED
				
		 		 	By:	 	 /s/ Guangfu Xu

		 		 		 	Name: Guangfu Xu
		 		 		 	Title: Director
			
		 		 	PLENTY CHINA LIMITED
				
		 		 	By:	 	 /s/ Xiang Xu

		 		 		 	Name: Xiang Xu
		 		 		 	Title: Director

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

							
		 		 	RUIAN INTERNATIONAL LIMITED
				
		 		 	By:	 	 /s/ Fei Ge

		 		 		 	Name: Fei Ge
		 		 		 	Title: Director
			
		 		 	INSTANTUP INVESTMENTS LIMITED
				
		 		 	By:	 	 /s/ Dafeng Shi

		 		 		 	Name: Dafeng Shi
		 		 		 	Title: Director
	 OTHER BENEFICIAL OWNERS:
	 		 		 	
		 		 	Fei Ge
			
		 		 	 /s/ Fei Ge

			
		 		 	Dafeng Shi
			
		 		 	 /s/ Dafeng Shi

 Exhibit A 
 FORM DEED OF ADHERENCE 
 THIS DEED OF ADHERENCE is made the
             day of 
 by [    ], (“New
Shareholder”) 
 RECITALS 
 A. On November [    ], 2009, the shareholders of Daqo New Energy Corp. (the “Company”) entered into an Investor Rights Agreement (the “Investor Rights
Agreement”), to which the substantial form of this Deed of Adherence forms Exhibit A. 
 B. The New Shareholder
is the intended transferee of [            ] [Ordinary Shares] [Series A Preferred Shares] of par value US$[            ] each
(“Transferred Shares”) in the capital of the Company from [            ] (“Transferor”) and in accordance with Section 9.2 of the Investor
Rights Agreement is executing this Deed. 
 THIS DEED WITNESSES as follows: 
 1. Interpretation. Capitalized terms not otherwise defined in this Deed shall have the meanings given to then in the Investor Rights Agreement. 
 2. Covenant; Enforceability. The New Shareholder hereby ratifies and accedes to the terms of, agrees to be bound by, and assumes all rights
and obligations under the terms and conditions of, the Investor Rights Agreement, as if the New Shareholder had been an original party to the Investor Rights Agreement in the same capacity as the Transferor. The existing shareholders shall be
entitled to enforce the Investor Rights Agreement against the New Shareholder. 
 3. Representation and Warranty. The New
Shareholder hereby represents and warrants to the existing shareholders that: 
 (a) If the New Shareholder is an entity, such
New Shareholder is duly incorporated, validly existing and in good standing under the laws of the jurisdiction of its incorporation. 
 (b) The New Shareholder has all requisite power and authority to execute and deliver this Deed and to assume and perform all rights and obligations under the Investor Rights Agreement. Upon their execution, this Deed and the Investor Rights
Agreement shall constitute valid and legally binding obligations thereof, enforceable against such party in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, and other laws of general application affecting
enforcement of creditors’ rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies. 
 (c) The execution, delivery and performance by the New Shareholder of and compliance with the Deed and the Investor Rights Agreement, and
the consummation of the transactions contemplated thereby, will not result in any violation, breach or default, or be in conflict with or constitute, with or without the passage of time or the giving of notice or both, a default under (A) the
articles of association or any other such constitutional documents of the New Shareholder, (B) any material contract to which the New Shareholder is a party, (C) any judgment, order, writ or decree or (D) any applicable law.

  

 Exhibit A 

 4. Governing Law. This Adherence Deed shall be governed by and construed in all respects in
accordance with the laws of New York, the United States. 
 IN WITNESS WHEREOF this Deed of Adherence has been executed as a deed by the New
Shareholder on the date set forth above. 
  

			
	[NEW SHAREHOLDER]	  	)
	in the presence of:	  	)

 Schedule I-A 
 LIST OF MAJOR SHAREHOLDERS 
 Guangfu Xu, a citizen of the PRC with PRC
identification card number 321124194211100512. 
 Xiang Xu, a citizen of the PRC with PRC identification card number 321124197103030514.

 [The remainder of this page has been intentionally left blank] 
  

 Schedule I-A 

 Schedule I-B 
 LIST OF MAJOR SHAREHOLDER HOLDCOS 
 Gold Intellect Limited, a company
organized and validly existing under the Laws of the British Virgin Islands. 
 Plenty China Limited, a company organized and validly existing
under the Laws of the British Virgin Islands. 
 [The remainder of this page has been intentionally left blank]

  

 Schedule I-B 

 Schedule I-C 
 LIST OF OTHER BENEFICIAL OWNERS 
 Fei Ge, a citizen of the PRC with
PRC identification card number 321124196412170532. 
 Dafeng Shi, a citizen of the PRC with PRC identification card number 321102197204261014.

 [The remainder of this page has been intentionally left blank] 
  

 Schedule I-C 

 Schedule I-D 
 LIST OF OTHER ORDINARY SHAREHOLDERS 
 Ruian International Limited, a
company organized and validly existing under the Laws of the British Virgin Islands. 
 Instantup Investments Limited, a company organized and
validly existing under the Laws of the British Virgin Islands. 
 [The remainder of this page has been intentionally left
blank] 
  

 Schedule I-D 

 Schedule II 
 LIST OF INVESTORS 
 Granite Global Ventures III L.P., a limited
partnership duly organized and validly existing under the Laws of the State of Delaware 
 GGV III Entrepreneurs Fund L.P., a limited
partnership duly organized and validly existing under the Laws of the State of Delaware 
 Venture Star Investment (HK) Limited, a company duly
organized and validly existing under the Laws of Hong Kong 
 NewMargin Growth Fund, L.P., a limited partnership duly organized and validly
existing under the Laws of the Cayman Islands 
 Siguler Guff BRIC Opportunities Fund, LP, a limited partnership duly organized and validly
existing under the Laws of the State of Delaware 
 Siguler Guff BRIC Opportunities Fund (E), LP, a limited partnership duly organized and
validly existing under the Laws of the State of Delaware 
 Siguler Guff BRIC Opportunities Fund II, LP, a limited partnership duly organized
and validly existing under the Laws of the State of Delaware 
 Siguler Guff BRIC Opportunities Fund II (T), LP, a limited partnership duly
organized and validly existing under the Laws of the State of Delaware 
 Siguler Guff BRIC Opportunities Fund II (M), LP, a limited partnership
duly organized and validly existing under the Laws of the State of Delaware 
 [The remainder of this page has been
intentionally left blank] 
  

 Schedule II 

 Schedule III 
 REGISTRATION RIGHTS 
 1. Definitions. The following terms used
in this Schedule III shall have the meanings ascribed to the below: 
 “Commission” means (i) with
respect to any offering of securities in the United States, the Securities and Exchange Commission of the United States or any other federal agency at the time administering the Securities Act and (ii) with respect to any offering of securities
in a jurisdiction other than the United States, the regulatory body of the jurisdiction with authority to supervise and regulate the offering and sale of securities in that jurisdiction. 
 “Exchange Act” means the United States Securities Exchange Act of 1934, as amended. 
 “Form F-3” means Form F-3 promulgated by the Commission under the Securities Act or any successor form or substantially
similar form then in effect. 
 “Form S-3” means Form S-3 promulgated by the Commission under the Securities
Act or any successor form or substantially similar form then in effect. 
 “Holders” means the holders of
Registrable Securities who are parties to this Agreement from time to time, and their transferees that become parties to this Agreement from time to time. 
 “Initiating Holders” means, with respect to a request duly made under Section 2.1 or Section 2.2 of this Schedule III to Register any Registrable
Securities, the Holders initiating such request. 
 “IPO” means the first firm underwritten registered public
offering by the Company of its Ordinary Shares pursuant to a Registration Statement that is filed with and declared effective by either the Commission under the Securities Act or another Governmental Authority for a public offering in a jurisdiction
other than the United States. 
 “Registrable Securities” means (i) the Ordinary Shares issued or issuable
upon conversion of the Series A Preferred Shares and (ii) any Ordinary Shares of the Company issued as a dividend or other distribution with respect to, in exchange for, or in replacement of, the shares referenced in (i) herein, excluding
in all cases, however, any of the foregoing sold by a Person in a transaction other than an assignment pursuant to Section 9.2 of the Investor Rights Agreement. 
 “Registration” means a registration effected by preparing and filing a Registration Statement and the declaration or
ordering of the effectiveness of that Registration Statement; and the terms “Register” and “Registered” have meanings concomitant with the foregoing. 
 “Registration Statement” means a registration statement prepared on Form F-1, F-3, S-1, or S-3 under the Securities Act
(including, without limitation, Rule 415 under the Securities Act), or on any comparable form in connection with registration in a jurisdiction other than the United States. 
  

					
		 	Schedule III	 	1

 “Securities Act” means the United States Securities Act of 1933, as
amended. 
 “Violation” has the meaning set forth in Section 5.1(i) of this Schedule III.

 Except where the context requires otherwise, capitalized terms used herein without definition shall have the meanings set
forth in the Section 1 of the Investor Rights Agreement. 
 2. Demand Registration 
 2.1 Registration Other Than on Form F-3 or Form S-3. Subject to the terms of this Agreement, at any time or from time to time after
the earlier of (i) the second year anniversary of the Effective Date, or (ii) the date that is six (6) months after the closing of the IPO, Holders holding ten percent (10%) or more of the outstanding Registrable Securities held
by all Holders may request in writing that the Company effect a Registration on any internationally recognized exchange that is reasonably acceptable to such requesting Holders. Upon receipt of such a request, the Company shall (x) promptly
give written notice of the proposed Registration to all other Holders and (y) as soon as practicable, use its best efforts to cause the Registrable Securities specified in the request, together with any Registrable Securities of any Holder who
requests in writing to join such Registration within fifteen (15) days after the Company’s delivery of written notice, to be Registered and/or qualified for sale and distribution in such jurisdiction as the Initiating Holders may request.
The Company shall be obligated to effect no more than three (3) Registrations pursuant to this Section 2.1 that have been declared and ordered effective; provided that if the sale of all of the Registrable Securities sought to be
included pursuant to this Section 2.1 is not consummated for any reason other than due to the action or inaction of the Holders including Registrable Securities in such Registration, such Registration shall not be deemed to constitute
one of the Registration rights granted pursuant to this Section 2.1.  
 2.2 Registration on Form F-3 or
Form S-3. Subject to the terms of this Agreement, if the Company qualifies for registration on Form F-3 or Form S-3 (or any comparable form for Registration in a jurisdiction other than the United States), Holders holding ten percent
(10%) or more of the outstanding Registrable Securities held by all Holders may request the Company to file, in any jurisdiction in which the Company has had a registered underwritten public offering, a Registration Statement on Form F-3 or
Form S-3 (or any comparable form for Registration in a jurisdiction other than the United States), including without limitation any registration statement filed under the Securities Act providing for the registration of, and the sale on a continuous
or a delayed basis by the Holders of, all of the Registrable Securities pursuant to Rule 415 under the Securities Act and/or any similar rule that may be adopted by the Commission. Upon receipt of such a request, the Company shall (i) promptly
give written notice of the proposed Registration to all other Holders and (ii) as soon as practicable, use its best efforts to cause the Registrable Securities specified in the request, together with any Registrable Securities of any Holder who
requests in writing to join such Registration within fifteen (15) days after the Company’s delivery of written notice, to be Registered and qualified for sale and distribution in such jurisdiction. 
 2.3 Right of Deferral. 
 (i) The Company shall not be obligated to Register or qualify Registrable Securities pursuant to Section 2: 
 (a) if, within ten (10) days of the receipt of any request of the Holders to Register any Registrable Securities under
Section 2.1 or Section 2.2, the Company gives notice to the Initiating Holders of its bona fide intention to effect the filing for its own account of a Registration Statement of Ordinary Shares within one hundred and eighty (180) days
of receipt of that request; provided, that the Company is actively employing in good faith its best efforts to cause that Registration Statement to become effective within one hundred and eighty (180) days of receipt of that request;
provided, further, that the Holders are entitled to join such Registration subject to Section 3 (other than a registration of securities in a transaction under Rule 145 of the Securities Act or with respect to an employee
benefit plan; 
  

					
		 	Schedule III	 	2

 (b) during the period starting with the date of filing by the Company of,
and ending six (6) months following the effective date of any Registration Statement pertaining to Ordinary Shares of the Company; provided, that the Holders are entitled to join such Registration subject to Section 3 (other
than a registration of securities in a transaction under Rule 145 of the Securities Act or with respect to an employee benefit plan); 
 (c) if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any)
at an aggregate price to the public of less than US$5,000,000 (or an equivalent amount in another currency); or 
 (d) in any jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such Registration or qualification, unless the Company is already subject to service of process in such
jurisdiction. 
 (ii) If, after receiving a request from Holders pursuant to Section 2.1 or Section 2.2
hereof, the Company furnishes to the Holders a certificate signed by the chief executive officer of the Company stating that, in the good faith judgment of the Board, it would be materially detrimental to the Company or its members for a
Registration Statement to be filed in the near future, then the Company shall have the right to defer such filing for a period during which such filing would be materially detrimental, provided, that that the Company may not utilize this
right and/or the deferral right contained in clause (ii) for more than ninety (90) days on any one occasion or for more than once during any twelve (12) month period; provided, further, that the Company may not Register
any other of its securities during such period (except for Registrations contemplated by Section 3.4). 
 2.4
Underwritten Offerings. If, in connection with a request to Register Registrable Securities under Section 2.1 or Section 2.2, the Initiating Holders seek to distribute such Registrable Securities in an underwritten
offering, they shall so advise the Company as a part of the request, and the Company shall include such information in the written notice to the other Holders described in Section 2.1 and Section 2.2. In such event, the right
of any Holder to include its Registrable Securities in such Registration shall be conditioned upon such Holder’s participation in such underwritten offering and the inclusion of such Holder’s Registrable Securities in the underwritten
offering (unless otherwise mutually agreed by a majority-in-interest of the Initiating Holders and such Holder, taken together) to the extent provided herein. All Holders proposing to distribute their securities through such underwritten offering
shall enter into an underwriting agreement in customary form with the underwriter or underwriters of internationally recognized standing

  

					
		 	Schedule III	 	3

 
selected for such underwritten offering by the Company and reasonably acceptable to the holders of a majority of the voting power of all Registrable Securities proposed to be included in such
Registration. Notwithstanding any other provision of this Agreement, if the managing underwriter advises the Company that marketing factors (including without limitation the aggregate number of securities requested to be Registered, the general
condition of the market, and the status of the Persons proposing to sell securities pursuant to the Registration) require a limitation of the number of Registrable Securities to be underwritten in a Registration pursuant to Section 2.1
or Section 2.2, the underwriters may (i) in the event the offering is the Company’s IPO, exclude from the underwritten offering all of the Registrable Securities (so long as the only securities included in such offering are
those sold for the account of the Company), or (ii) otherwise exclude up to seventy five percent (75%) of the Registrable Securities requested to be Registered but only after first excluding all other Equity Securities from the
Registration and underwritten offering and so long as the number of Registrable Securities to be included in the Registration is allocated among all Holders in proportion, as nearly as practicable, to the respective amounts of Registrable Securities
requested by such Holders to be included. Any Registrable Securities excluded or withdrawn from such underwritten offering shall be withdrawn from the Registration. To facilitate the allocation of shares in accordance with the above provisions, the
Company or the underwriters may round the number of shares allocated to a Holder to the nearest one hundred (100) shares. 
 3.
Piggyback Registrations. 
 3.1 Registration of the Company’s Securities. Subject to the terms of this Agreement,
if the Company proposes to Register for its own account any of its Equity Securities, or for the account of any holder (other than a Holder) of Equity Securities any of such holder’s Equity Securities, in connection with the public offering of
such securities (except as set forth in Section 3.4), the Company shall promptly give each Holder written notice of such Registration and, upon the written request of any Holder given within ten (10) days after delivery of such
notice, the Company shall use its best efforts to include in such Registration any Registrable Securities thereby requested to be Registered by such Holder. If a Holder decides not to include all or any of its Registrable Securities in such
Registration by the Company, such Holder shall nevertheless continue to have the right to include any Registrable Securities in any subsequent Registration Statement or Registration Statements as may be filed by the Company, all upon the terms and
conditions set forth herein. 
 3.2 Right to Terminate Registration. The Company shall have the right to terminate or
withdraw any Registration initiated by it under Section 3.1 prior to the effectiveness of such Registration, whether or not any Holder has elected to participate therein. The expenses of such withdrawn Registration shall be borne by the
Company in accordance with Section 4.3. 
 3.3 Underwriting Requirements. 
 (i) In connection with any offering involving an underwriting of the Company’s Equity Securities, the Company shall not be required to
Register the Registrable Securities of a Holder under this Section 3 unless such Holder’s Registrable Securities are included in the underwritten offering and such Holder enters into an underwriting agreement in customary form with
the underwriter or underwriters of internationally recognized standing selected by the Company and setting forth such terms for the underwritten offering as have been agreed upon between the Company and the underwriters. In the event the
underwriters

  

					
		 	Schedule III	 	4

 
advise Holders seeking Registration of Registrable Securities pursuant to this Section 3 in writing that market factors (including the aggregate number of Registrable Securities
requested to be Registered, the general condition of the market, and the status of the Persons proposing to sell securities pursuant to the Registration) require a limitation of the number of Registrable Securities to be underwritten, the
underwriters may (i) in the event the offering is the Company’s IPO, exclude all of the Registrable Securities (so long as the only securities included in such offering are those sold for the account of the Company and no securities of
other selling shareholders are included), or (ii) otherwise exclude up to seventy five percent (75%) of the Registrable Securities requested to be Registered but only after first excluding all other Equity Securities (except for securities
sold for the account of the Company) from the Registration and underwriting and so long as the number of Registrable Securities to be included in such Registration is allocated among all Holders in proportion, as nearly as practicable, to the
respective amounts of Registrable Securities requested by such Holders to be included. To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to a
Holder to the nearest one hundred (100) shares. 
 (ii) If any Holder disapproves the terms of any underwriting, the Holder
may elect to withdraw therefrom by written notice to the Company and the underwriters delivered at least ten (10) days prior to the effective date of the Registration Statement. Any Registrable Securities excluded or withdrawn from the
underwritten offering shall be withdrawn from the Registration. Notwithstanding the foregoing, the Company shall not be required to pay for any expenses of any Registration proceeding begun pursuant to Section 2.1 or
Section 2.2 if the Registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all participating Holders shall bear such expenses pro rata based
upon the number of Registrable Securities that were to be included in the withdrawn registration), unless such withdrawal is due to an action or inaction of the Company or an event outside of the reasonable control of such Holders. 
 3.4 Exempt Transactions. The Company shall have no obligation to Register any Registrable Securities under this Section 3
in connection with a Registration by the Company (i) relating solely to the sale of securities to participants in a Company share plan, or (ii) relating to a corporate reorganization or other transaction under Rule 145 of the Securities
Act (or comparable provision under the Laws of another jurisdiction, as applicable). 
 4. Registration Procedures. 
 4.1 Registration Procedures and Obligations. Whenever required under this Agreement to effect the Registration of any Registrable
Securities held by the Holders, the Company shall, as expeditiously as reasonably possible: 
 (i) Prepare and file with the
Commission a Registration Statement with respect to those Registrable Securities and use its best efforts to cause that Registration Statement to become effective and not be withdrawn until the date on which all Registrable Securities have been sold
pursuant to such Registration Statement; 
 (ii) Prepare and file with the Commission amendments and supplements to that
Registration Statement and the prospectus used in connection with the Registration Statement as may be necessary to comply with the provisions of applicable securities Laws; 
  

					
		 	Schedule III	 	5

 (iii) Furnish to the Holders the number of copies of a prospectus, including a preliminary
prospectus, required by applicable securities Laws, and any other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them; 
 (iv) In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in customary
form, with the managing underwriter(s) of the offering; 
 (v) Promptly notify each Holder of Registrable Securities covered by
the Registration Statement at any time when a prospectus relating thereto is required to be delivered under applicable securities Laws of (a) the issuance of any stop order by the Commission, or (b) the happening of any event or the
existence of any condition as a result of which any prospectus included in the Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in the light of the circumstances under which they were made, or if in the opinion of counsel for the Company it is necessary to supplement or amend such prospectus to comply with law, and at the request of
any such Holder promptly prepare and furnish to such Holder a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such securities, such
prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made or
such prospectus, as supplemented or amended, shall comply with law; 
 (vi) Furnish, at the request of any Holder requesting
Registration of Registrable Securities pursuant to this Agreement, on the date that such Registrable Securities are delivered for sale in connection with a Registration pursuant to this Agreement, (i) an opinion, dated the date of the sale, of
the counsel representing the Company for the purposes of the Registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters; and (ii) a comfort letter dated the date
of the sale, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the
underwriters; 
 (vii) Otherwise comply with all applicable rules and regulations of the Commission to the extent applicable to
the applicable registration statement; 
 (viii) Provide a transfer agent and registrar for all Registrable Securities Registered
pursuant to the Registration Statement and, where applicable, a number assigned by the Committee on Uniform Securities Identification Procedures for all those Registrable Securities, in each case not later than the effective date of the
Registration; and 
 (ix) Take all reasonable action necessary to list the Registrable Securities on the primary exchange on
which the Company’s securities are then traded or, in connection with an IPO, the primary exchange on which the Company’s securities will be traded. 
  

					
		 	Schedule III	 	6

 4.2 Information from Holder. It shall be a condition precedent to the obligations of
the Company to take any action pursuant to this Agreement with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and
the intended method of disposition of such securities as shall be required to effect the Registration of such Holder’s Registrable Securities. 
 4.3 Expenses of Registration. All expenses, other than the underwriting discounts and selling commissions applicable to the sale of Registrable Securities pursuant to this Agreement (which shall be
borne by the Holders requesting Registration on a pro rata basis in proportion to their respective numbers of Registrable Securities sold in such Registration), incurred in connection with Registrations, filings or qualifications pursuant to this
Agreement, including (without limitation) all Registration, filing and qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company and reasonable fees and disbursement of one counsel for all selling
Holders, shall be borne by the Company. The Company shall not, however, be required to pay for any expenses of any Registration proceeding begun pursuant to this Agreement if the Registration request is subsequently withdrawn at the request of a
majority-in-interest of the Holders requesting such Registration (in which case all participating Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be thereby Registered in the withdrawn
Registration). 
 5. Registration-Related Indemnification. 
 5.1 Company Indemnity. 
 (i) To the maximum extent permitted by Law, the
Company will indemnify and hold harmless each Holder, such Holder’s partners, officers, directors, shareholders and legal counsel, any underwriter (as defined in the Securities Act) and each Person, if any, who controls (as defined in the
Securities Act) such Holder or underwriter, against any losses, claims, damages or liabilities (joint or several) to which they may become subject under Laws which are applicable to the Company and relate to action or inaction required of the
Company in connection with any Registration, qualification, or compliance, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or
violations (each a “Violation”): (a) any untrue statement or alleged untrue statement of a material fact contained in such Registration Statement, on the effective date thereof (including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto), (b) the omission or alleged omission to state in the Registration Statement, on the effective date thereof (including any preliminary prospectus or final prospectus
contained therein or any amendments or supplements thereto), a material fact required to be stated therein or necessary to make the statements therein not misleading, or (c) any violation or alleged violation by the Company of applicable
securities Laws, or any rule or regulation promulgated under applicable securities Laws. The Company will reimburse each such Holder, underwriter or controlling person for any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action. 
 (ii) The indemnity agreement contained in this
Section 5.1 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be

  

					
		 	Schedule III	 	7

 
unreasonably withheld or delayed), nor shall the Company be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises solely out of or is solely
based upon a Violation that occurs in reliance upon and in conformity with written information furnished in a certificate expressly for use in connection with such Registration by any such Holder, such Holder’s partners, officers, directors,
and legal counsel, any underwriter (as defined in the Securities Act) and each Person, if any, who controls (as defined in the Securities Act) such Holder or underwriter. Further, the foregoing indemnity agreement with respect to any preliminary
prospectus shall not inure to the benefit of any Holder or other aforementioned person, or any person controlling such Holder, from whom the person asserting any such losses, claims, damages or liabilities purchased shares in the offering, if a copy
of the most current prospectus was not sent or given by or on behalf of such Holder or other aforementioned person to such person, if required by law to have been so delivered, at or prior to the written confirmation of the sale of the shares to
such person, and if the prospectus (as so amended or supplemented) would have cured the defect giving rise to such loss, claim, damage or liability. 
 5.2 Holder Indemnity. 
 (i) To the maximum extent permitted by Law, each
selling Holder that has included Registrable Securities in a Registration will, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, legal counsel and accountants, any underwriter, any other Holder selling
securities in connection with such Registration and each Person, if any, who controls (within the meaning of the Securities Act) the Company, such underwriter or other Holder, against any losses, claims, damages or liabilities (joint or several) to
which any of the foregoing persons may become subject, under applicable securities Laws, or any rule or regulation promulgated under applicable securities Laws, insofar as such losses, claims, damages or liabilities (or actions in respect thereto)
arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder in a certificate expressly for use in
connection with such Registration; and each such Holder will reimburse any Person intended to be indemnified pursuant to this Section 5.2, for any legal or other expenses reasonably incurred by such Person in connection with
investigating or defending any such loss, claim, damage, liability or action. No Holder’s liability under this Section 5.2 shall exceed the net proceeds (less underwriting discounts and selling commissions) received by such Holder
from the offering of securities made in connection with that Registration. 
 (ii) The indemnity contained in this
Section 5.2 shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder (which consent shall not be unreasonably withheld or
delayed). 
 5.3 Notice of Indemnification Claim. Promptly after receipt by an indemnified party under
Section 5.1 or Section 5.2 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under
Section 5.1 or Section 5.2, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so
desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually

  

					
		 	Schedule III	 	8

 
satisfactory to the indemnifying parties. An indemnified party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain
one separate counsel, with the reasonably incurred fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or
potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such
action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party, to the extent so prejudiced, of any liability to the indemnified party under this Section 5, but the omission to deliver written notice
to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 5. 
 5.4 Contribution. If any indemnification provided for in Section 5.1 or Section 5.2 is held by a court of competent jurisdiction to be unavailable to an indemnified party
with respect to any loss, liability, claim, damage or expense referred to herein, the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result
of such loss, liability, claim, damage or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one hand, and of the indemnified party, on the other, in connection with the statements or
omissions that resulted in such loss, liability, claim, damage or expense, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent,
knowledge, access to information, and opportunity to correct or prevent such statement or omission. No Holder’s liability under this Section 5.4, when combined with such Holder’s liability under Section 5.2, shall
exceed the net proceeds (less underwriting discounts and selling commissions) received by such Holder from the offering of securities made in connection with that Registration. 
 5.5 Underwriting Agreement. To the extent that the provisions on indemnification and contribution contained in the underwriting
agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control. 
 5.6 Survival. The obligations of the Company and Holders under this Section 5 shall survive the completion of any
offering of Registrable Securities in a Registration Statement under this Agreement. 
 6. Additional Registration-Related Undertakings. 

 6.1 Reports under the Exchange Act. With a view to making available to the Holders the benefits of Rule 144 promulgated
under the Securities Act and any comparable provision of any applicable securities Laws that may at any time permit a Holder to sell securities of the Company to the public without Registration or pursuant to a Registration on Form F-3 or Form S-3
(or any comparable form in a jurisdiction other than the United States), the Company agrees to: 
 (i) make and keep public
information available, as those terms are understood and defined in Rule 144 (or comparable provision, if any, under applicable securities Laws in any jurisdiction where the Company’s securities are listed), at all times following ninety
(90) days after the effective date of the first Registration under the Securities Act filed by the Company for an offering of its securities to the general public; 
  

					
		 	Schedule III	 	9

 (ii) file with the Commission in a timely manner all reports and other documents required of
the Company under all applicable securities Laws; and 
 (iii) at any time following ninety (90) days after the effective
date of the first Registration under the Securities Act filed by the Company for an offering of its securities to the general public by the Company, promptly furnish to any Holder holding Registrable Securities, upon request (a) a written
statement by the Company that it has complied with the reporting requirements of all applicable securities Laws at any time after it has become subject to such reporting requirements or, at any time after so qualified, that it qualifies as a
registrant whose securities may be resold pursuant to Form F-3 or Form S-3 (or any form comparable thereto under applicable securities Laws of any jurisdiction where the Company’s securities are listed), (b) a copy of the most recent
annual or quarterly report of the Company and such other reports and documents as filed by the Company with the Commission, and (c) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the
Commission, that permits the selling of any such securities without Registration or pursuant to Form F-3 or Form S-3 (or any form comparable thereto under applicable securities Laws of any jurisdiction where the Company’s Securities are
listed). 
 6.2 Limitations on Subsequent Registration Rights. From and after the date of this Agreement, the Company
shall not, without the prior written consent of holders of at least a majority of the then outstanding Registrable Securities held by all Holders, enter into any agreement with any holder or prospective holder of any Equity Securities of the Company
that would allow such holder or prospective holder (i) to include such Equity Securities in any Registration filed under Section 2 or Section 3, unless under the terms of such agreement such holder or prospective holder
may include such Equity Securities in any such Registration only to the extent that the inclusion of such Equity Securities will not reduce the amount of the Registrable Securities of the Holders that are included, (ii) to demand Registration
of their Equity Securities, or (iii) cause the Company to include such Equity Securities in any Registration filed under Section 2 or Section 3 hereof on a basis pari passu with or more favorable to such holder or
prospective holder than is provided to the Holders of Registrable Securities. 
 6.3 “Market
Stand-Off” Agreement. Each party that is a Shareholder agrees, if so required by the managing underwriter(s), that it will not during the period commencing on the date of the final prospectus relating to the Company’s IPO and
ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (180) days from the date of such final prospectus) (i) lend, offer, pledge, hypothecate, hedge, sell, make any short
sale of, loan, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any Equity Securities of
the Company (other than those included in such offering) or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Equity Securities of the Company,
whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of

  

					
		 	Schedule III	 	10

 
Equity Securities of the Company or such other securities, in cash or otherwise; provided, that (x) all directors, officers and all other holders of at least one percent (1%) of
the outstanding share capital of the Company must be bound by restrictions at least as restrictive as those applicable to any such holder pursuant to this Section 6.3, (y) this Section 6.3 shall not apply to the extent
that any other members subject to substantially similar restrictions are released, and (z) the lockup agreements shall permit such holders to transfer their Registrable Securities to their respective Affiliates so long as the transferees enters
into the same lockup agreement. The underwriters in connection with the Company’s IPO are intended third party beneficiaries of this Section 6.3 and shall have the right, power and authority to enforce the provisions hereof as
though they were a party hereto. In order to enforce the foregoing covenant, the Company may place restrictive legends on the certificates and impose stop-transfer instructions with respect to the Registrable Securities of each shareholder (and the
shares or securities of every other person subject to the foregoing restriction) until the end of such period. 
 6.4
Termination of Registration Rights. The registration rights set forth in Section 2 and Section 3 above shall terminate on the earlier of (i) the date that is five (5) years from the date of closing of an IPO,
and (ii) with respect to any Holder, the date on which such Holder may sell all of such Holder’s Registrable Securities under Rule 144 of the Securities Act in any ninety (90)-day period. 
 7. Jurisdiction. The terms of this Schedule III are drafted primarily in contemplation of an offering of securities in the United States of
America. The Parties recognize, however, the possibility that securities may be qualified or registered for offering to the public in a jurisdiction other than the United States of America where registration rights have significance or that the
Company might effect an offering in the United States of America in the form of American depositary receipts or American depositary shares. Accordingly: 
 (i) It is their intention that, whenever this Schedule III or any portion of the Investor Rights Agreement refers to a Law, form, process or institution of the United States of America but the
parties wish to effectuate qualification or registration in a different jurisdiction where registration rights have significance, such references to the Laws or institutions of the United States shall be read as referring, mutatis
mutandis, to the comparable Laws or institutions of the jurisdiction in question; and 
 (ii) It is agreed that the
Company will not undertake any listing of American depositary receipts, American depositary shares or any other security derivative of the Company’s Ordinary Shares unless arrangements have been made reasonably satisfactory to a
majority-in-interest of the Shareholders to ensure that the spirit and intent of the Investor Rights Agreement will be realized and that the Company is committed to take such actions as are necessary such that the Shareholders will enjoy rights
corresponding to the rights hereunder to sell their Registrable Securities in a public offering in the United States of America as if the Company had listed Ordinary Shares in lieu of such derivative securities. 
  

					
		 	Schedule III	 	11

 Schedule IV 
 NOTICE ADDRESSES 
 For the purpose of the notice provisions contained
in this Investor Rights Agreement, the following are the initial addresses of each party: 
 If to the Company, Daqo North America, Chongqing
Daqo, Nanjing Daqo, Daqo New Material, the Major Shareholders, the Other Beneficial Owners, or the Ordinary Shareholders: 
 666
Longdu Avenue, Wanzhou, Chongqing 404000, 
 People’s Republic of China 
 Attn: Chief Financial Officer 
 T: +86 23 6486 6666 
 F: +86 23 6486 6688 
 If to Granite Global Ventures III L.P. or GGV III Entrepreneurs Fund L.P.: 
 2494 Sand Hill Road, Suite 100 
 Menlo Park, CA 94025 
 Attn: Stephen Hyndman 
 T:+1 650 475 2150 
 F:+1 650 475 2151 
 with a copy to: 
 GGV Capital 
 Unit 3701,K.Wah Center 
 1010 Huaihai Zhong Road 
 Shanghai 200031 PRC 
 Attn: Jenny Lee 
 T:
+86 21 6161 1717 
 F: +86 21 5404 7667 
 If to NewMargin Growth Fund, L.P.: 
 c/o NewMargin Ventures 
 Radisson Plaza (Xing Guo) Hotel 
 78 Xing Guo Road, Villa 3 
 Shanghai, China 200052 
 86-21-6213-8000 
 If to Venture
Star Investment (HK) Limited: 
 

 
  

 Schedule IV 

 

 
 

: 200031 
 Tel: 86 21 61611 777 
 If to Siguler Guff BRIC Opportunities Fund, LP, Siguler Guff BRIC Opportunities Fund (E), LP, Siguler Guff BRIC Opportunities Fund II, LP, Siguler Guff BRIC
Opportunities Fund II (T), LP, or Siguler Guff BRIC Opportunities Fund II (M), LP: 
 c/o Siguler Guff Advisers, LLC 

825 Third Avenue, 10th Floor 
 New York, NY 10022 
 Attention: General Counsel 
 +1 212 332 5100 
  

 Schedule IV

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