Document:

Exhibit 10.1

 

 

36Kr Holdings Inc.

 

2019 SHARE INCENTIVE PLAN

 

(approved and adopted by a board resolution passed on September 4, 2019 )

 

 

TABLE OF CONTENTS

 

 

	
 
    	
PAGE
    
	
 
    	
 
    
	
Section 1 . Definitions and Interpretation
    	
1
    
	
Section 2 . Purpose of the Plan
    	
3
    
	
Section 3 . Condition
    	
3
    
	
Section 4 . Duration
    	
3
    
	
Section 5 . Offer and Grant of Options
    	
4
    
	
Section 6 . Exercise Price
    	
5
    
	
Section 7 . Exercise of Options
    	
5
    
	
Section 8 . Lapse of Option
    	
8
    
	
Section 9 . Redemption
    	
10
    
	
Section 10 . Maximum Number of Shares Subject to Options
    	
10
    
	
Section 11 . Reorganization of Capital Structure
    	
10
    
	
Section 12 . Share Capital
    	
12
    
	
Section 13 . Disputes
    	
12
    
	
Section 14 . Alteration of this Plan
    	
12
    
	
Section 15 . Miscellaneous
    	
12
    

 

 

Section 1.  Definitions and Interpretation. (a) In this Plan, save where the context otherwise requires, the following expressions have the respective meanings set opposite them:

 

“Adoption Date” being September 4, 2019, the date on which the Plan is approved and adopted by a resolution of the directors of the Company.

 

“Auditors” means the auditors for the time being of the Company.

 

“Award” means any Option granted under this Plan.

 

“Board” means the board of directors of the Company or a duly authorized committee thereof.

 

“Business Associate” means any advisors, consultants, distributors, contractors, contract manufacturers, agents, customers, business partners, joint venture business partners, service providers of any member of the Group.

 

“Business Day(s)” means any day on which banks in New York, Hong Kong and PRC are open for business and the Stock Exchange is open for business of dealing in securities.

 

“Code” means the U.S. Internal Revenue Code of 1986, as amended.

 

“Company” means 36Kr Holdings Inc.

 

“Director” means any director (including executive director, non-executive director and independent non-executive director) of any member of the Group from time to time.

 

“Employee” means any employee or officer of any member of the Group.

 

“Exercise Price” means the price per Share at which a Grantee may subscribe for the Shares on the exercise of an Option as described in Section 6.

 

“Fair Market Value” means, with respect to any property (including, without limitation, any Shares or other securities) the fair market value of such property determined by such methods or procedures as shall be established in good faith from time to time by the Board in accordance with applicable law.

 

“Grantee” means any Participant who accepts an Offer in accordance with the terms of this Plan, or (where the context so permits) any person who is entitled to any Option in consequence of the death of the original Grantee.

 

“Grant Letter” means any written letter, agreement, contract or other instrument or document evidencing any Award granted under this Plan.

 

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“Group” means the Company and its Subsidiaries.

 

“Hong Kong” means the Hong Kong Special Administrative Region of the PRC.

 

“Offer” means the offer of the grant of an Option made in accordance with Section 5.

 

“Offer Date” means the date on which an Offer is made to a Participant.

 

“Option(s)” means a right granted to subscribe for the Shares pursuant to this Plan.

 

“Option Period” means a period to be notified by Mr. Dagang Feng to each Grantee in which an Option granted must be exercised (provided that such period shall not be more than ten years commencing on the Offer Date). Mr. Dagang Feng may also impose restrictions on the exercise of an Option during the period an Option may be exercised.

 

“Participant(s)” means any Director, Employee or Business Associate who Mr. Dagang Feng considers, in his sole discretion, has contributed or will contribute to the Group.

 

“PRC” means the People’s Republic of China, for the purposes of this Plan does not apply to Taiwan, Macau Special Administrative Region and Hong Kong.

 

“Plan” means this 2019 Share Incentive Plan in its present form or as amended from time to time in accordance with the provisions hereof.

 

“Share Registrar” means the share registrar of the Company from time to time.

 

“Shares” means ordinary shares, par value of US$0.0001 each in the capital of the Company (or of such other nominal amount as shall result from a sub-division, consolidation, reclassification or reconstruction of the share capital of the Company from time to time).

 

“Stock Exchange” means any internationally recognized stock exchange.

 

“Subsidiar(ies)” means any entity in which the Company has at any time, directly or indirectly, securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions, and any entity which is controlled by the Company contractually.

 

“US$” means United States dollars, the lawful currency of the United States.

 

(b)                       In this Plan, save where the context otherwise requires:

 

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(i)                       the headings are inserted for convenience only and shall not limit, vary, extend or otherwise affect the construction of any provision of this Plan;

 

(ii)                    references to paragraphs are references to paragraphs of this Plan;

 

(iii)                 references to any statute or statutory provision shall be construed as references to such statute or statutory provision as respectively amended, consolidated or re-enacted, or as its operation is modified by any other statute or statutory provision (whether with or without modification), and shall include any subsidiary legislation enacted under the relevant statute;

 

(iv)                expressions in the singular shall include the plural and vice versa;

 

(v)                   expressions in any gender shall include other genders; and

 

(vi)                references to persons shall include bodies corporate, corporations, partnerships, sole proprietorships, organizations, associations, enterprises and branches.

 

Section 2. Purpose of the Plan. The purpose of the Plan is to enhance the ability of the Company to attract and retain exceptionally qualified individuals and to encourage them to acquire a proprietary interest in the growth and performance of the Company.

 

Section 3. Condition. This Plan shall take effect subject to the passing of a resolution by the Board to approve and adopt this Plan, and to authorize Mr. Dagang Feng to grant Options to subscribe for the Shares hereunder and to allot, issue and deal with the Shares pursuant to the exercise of any Options granted under this Plan.

 

If the condition is not satisfied within 30 days after adoption of the Plan by the Board, this Plan and any Options granted under this Plan shall forthwith lapse and no person shall be entitled to any rights or benefits or be under any obligations under or in respect of the Plan.

 

Section 4. Duration, Termination and Administration. (a) Subject to Section 3, this Plan shall be valid and effective for the period of time commencing on the Adoption Date and expiring on the day immediately prior to the earlier of (i) the date which is ten years after the Adoption Date; or (ii) the Company by resolution of the shareholders, or the Board, may at any time terminates the operation of this Plan, after which period no further Options will be granted but the provisions of this Plan shall remain in force to the extent necessary to give effect to the exercise of any Options which are granted during the life of the Plan or otherwise as may be required in accordance with the provisions of this Plan.

 

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(b)                       This Plan shall be subject to the administration of Mr. Dagang Feng and the decision of Mr. Dagang Feng shall be final and binding on all parties. Mr. Dagang Feng shall have the right (i) to interpret and construe the provisions of the Plan; (ii) to determine the persons who will be awarded Options under the Plan, and the number of Options awarded thereto; (iii) to make such appropriate and equitable adjustments to the terms of Options granted under the Plan as he or she deems necessary, provided that such adjustments shall not have a negative impact on the economic interests of the Grantee; and (iv) to make such other decisions or determinations as he or she shall deem appropriate in the administration of the Plan.

 

(c)                        No member of the Board shall be personally liable by reason of any contract or other instrument executed by such member or on his behalf in his capacity as a member of the Board nor for any mistake of judgment made in good faith, and the Company shall indemnify and hold harmless each employee, officer or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be allocated or delegated, against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Board) arising out of any act or omission to act in connection with the Plan unless arising out of such person’s own fraud or bad faith.

 

Section 5. Offer and Grant of Options. (a) On and subject to the terms of this Plan, Mr. Dagang Feng shall be entitled at any time during the life of the Plan to make an Offer to any Participant, as Mr. Dagang Feng may in his absolute discretion select, to take up Options in respect of such number of Shares as Mr. Dagang Feng may determine at the Exercise Price. Subject to the terms and conditions of this Plan, Options may be granted on such terms and conditions in relation to their vesting, exercise or otherwise (e.g. by linking their exercise to the attainment or performance of milestones by any member of the Group, the Grantee or any group of Participants as Mr. Dagang Feng may determine).

 

(b)                       Options shall entitle the Grantee to subscribe for the Shares on the terms set out in this Plan save that if, at the time the Grantee wishes to exercise an Option, such exercise of the Option, the issue of the Shares to the Grantee pursuant to the Plan, the registration of the Grantee as the holder of such Shares, the exercise and enjoyment of the rights attaching to such Shares or the performance of the obligations of the Company or the Grantee under this Plan, is not permitted by any applicable laws or regulations, the Options shall not entitle the Grantee to subscribe for the Shares.

 

(c)                        An Offer shall be made to a Participant in the manner and in such form as Mr. Dagang Feng may from time to time determine requiring the Participant to undertake to hold the Options on the terms to be granted and to be bound by the provisions of this Plan.

 

(d)                       Any Offer may be accepted in respect of less than the number of Shares to which the offered Option relates.

 

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(e)                        For certain Participants who were also participants of the share incentive plan adopted by Beijing Duoke Information Technology Co., Ltd. in December 2016 (the “2016 Incentive Plan”), Mr. Dagang Feng may determine to accelerate vesting of the Options granted to them under this Plan to mirror the respective vesting schedule of shares granted to them under the 2016 Incentive Plan as set forth in the Grant Letter;

 

Section 6. Exercise Price. Subject to Section 11, the Exercise Price shall be determined by Mr. Dagang Feng in his sole discretion and set forth in the Grant Letter; provided, however, that, the per share exercise price of options granted to Participants who are subject to taxation under the Code shall not be less than the Fair Market Value of a Share on the date of grant of such Options, and that in no event shall the Exercise Price be less than the par value of the Shares to be issued.

 

Section 7. Exercise of Options. (a) An Option shall be personal to the Grantee and shall not be assignable or transferable. No Grantee shall in any way sell, transfer, charge, mortgage, encumber or otherwise dispose of or create any interest (legal or beneficial) in favor of any third party over or in relation to any Option or enter into any agreement so to do, except for (A) the transmission of an Option on the death of the Grantee to his personal representatives(s) according to the terms of this Plan, or (B) the transfer of any Option to any trustee, acting in its capacity as such trustee, of any trust of which the Grantee is a beneficiary. Any breach of the foregoing by a Grantee shall entitle the Company to cancel any Option granted to such Grantee to the extent not already exercised without incurring any liability on the part of the Company.

 

(b)                       A Grantee (or where permitted under Section 7(d)(ii), his legal personal representative(s)) may exercise his Option in whole or in part by giving notice in the form required by the Company stating that the Option is thereby exercised and specifying the number of Shares to be subscribed; and by a payment for the full amount of the aggregate Exercise Price for the Shares in respect of which the notice is given. Within 5 Business Days or otherwise agreed after receipt of the notice and payment of the Exercise Price and any applicable withholding and, where appropriate, receipt of the Auditors’ or financial advisors’ certificate pursuant to  Section 10(a), the Company shall allot, and shall instruct the Share Registrar to issue, the relevant Shares to the Grantee (or his personal representatives) credited as fully paid and issue to the Grantee (or his personal representatives) a share certificate in respect of the Shares so allotted.

 

(c)                        Except as provided otherwise and subject to the terms and conditions upon which such Option was granted, the Option granted shall be exercisable in accordance with the following vesting schedule:

 

·                  for participant who has received a “B” or higher grade in his or her most recent annual evaluation, 25% of any Option granted shall vest and become exercisable on the first anniversary of the date of grant of such Option;

 

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·                  for participant who has received a “B” or higher grade in his or her most recent annual evaluation, 25% of any Option granted shall vest and become exercisable on the second anniversary of the date of grant of such Option;

 

·                  for participant who has received a “B” or higher grade in his or her most recent annual evaluation, 25% of any Option granted shall vest and become exercisable on the third anniversary of the date of grant of such Option; and

 

·                  for participant who has received a “B” or higher grade in his or her most recent annual evaluation, the remaining 25% of any Option granted shall vest and become exercisable on the fourth anniversary of the date of grant of such Option;

 

provided that:

 

(i)                           in the event a Grantee terminates his employment or service on account of other than on one or more of the grounds of termination of employment, appointment or directorship specified in Section 8(f);

 

(ii)                        in the event a Grantee’s conduct results in a material violation of any applicable law, regulation, the Company’s memorandum and articles of association or internal policies;

 

(iii)                     in the event a Grantee engages in any illegal conducts and is subject to criminal penalties, except as otherwise as determined by Mr. Dagang Feng;

 

(iv)                    in the event a Grantee engages in any disloyal conducts against the Company, including but not limited to, resigning from the Company and entering into employment with any company or entity that is engaged in any business directly or indirectly competing with the Company, and benefitting from any related party transaction, unless otherwise notified to and approved by the Company;

 

(v)                       in the event a Grantee’s conduct results in a  substantial breach of any agreements with the Company, including but not limited to, disclosing any confidential information such as trade secrets, and failing to perform his or her obligations as an employee of the Company (except in the case of his or her incapacitation or death);

 

(vi)                    in the event a Grantee engages in any other conduct that has a material adverse effect on the Company’s business, reputation or financial conditions;

 

(vii)                 in the event of a Grantee’s death; or

 

(viii)              in other events as determined by Mr. Dagang Feng;

 

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all Options that are unvested as of the date of such event shall lapse, unless Mr. Dagang Feng otherwise determines in writing that such unvested Options shall not lapse and will continue to remain valid, such termination notwithstanding.

 

(d)                                 Subject to (A) the condition specified in Section 3 being fully satisfied, and (B) the terms and conditions on which such Option was granted, Options vested may be exercised by the Grantee at any time during the Option Period, provided that:

 

(i)                                     in the events specified in Section 7(c), the Grantee shall be entitled to exercise the Option up to the vested entitlement of such Grantee as at the date of such termination (to the extent he is entitled to exercise at the date of termination but not already exercised pursuant to the terms of this Plan and the terms of grant), failing which it will lapse;

 

(ii)                                  if a general offer by way of voluntary offer, takeover or otherwise (other than by way of Plan of arrangement pursuant to Section 7(d)(iii) below) is made to all the holders of Shares (or all such holders other than the offeror and any person controlled by the offeror and any person acting in association or concert with the offeror) and such offer becomes or is declared unconditional prior to the expiry date of the relevant Option, the Company shall forthwith give notice thereof to the Grantee and the Grantee shall be entitled to exercise the Option to its full extent or, if the Company shall give the relevant notification, to the extent notified by the Company at any time within such period as shall be notified by the Company;

 

(iii)                               if a general offer for Shares by way of Plan of arrangement is made to all the holders of Shares and has been approved by the necessary number of holders of Shares at the requisite meetings, the Company shall forthwith give notice thereof to the Grantee and the Grantee may at any time thereafter (but before such time as shall be notified by the Company) exercise the Option to its full extent or, if the Company shall give the relevant notification, to the extent notified by the Company;

 

(iv)                              in the event a notice is given by the Company to its shareholders to convene a shareholders’ meeting for the purpose of considering and, if thought fit, approving a resolution to voluntarily wind-up the Company, the Company shall forthwith give notice thereof to the Grantee and the Grantee may at any time thereafter (but before such time as shall be notified by the Company) exercise the Option to its full extent or, if the Company shall give the relevant notification, to the extent notified by the Company, and the Company shall as soon as possible and in any event no later than three days prior to the date of the proposed shareholders’ meeting, allot, issue and register in the name of the Grantee such number of fully paid Shares which fall to be issued on exercise of such Option; and

 

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(v)                                 in the event of a compromise or arrangement, other than a plan of arrangement contemplated in Section 7(d)(iii) above, between the Company and its members and/or creditors being proposed in connection with a plan for the reconstruction or amalgamation of the Company, the Company shall give notice thereof to all Grantees on the same day as it first gives notice of the meeting to its members and/or creditors to consider such a plan or arrangement and the Grantee may at any time thereafter but before such time as shall be notified by the Company exercise the Option to its full extent or, if the Company shall give the relevant notification, to the extent notified by the Company, and the Company shall as soon as possible and in any event no later than 3 days prior to the date of the proposed meeting, allot, issue and register in the name of the Grantee such number of fully paid Shares which fall to be issued on exercise of such Option.

 

Upon the occurrence of any of the events referred to in Sections 7(d)(ii) to 7(d)(v), the Company may in its discretion and notwithstanding the terms of the relevant Option also give notice to a Grantee that his Option may be exercised at any time within such period as shall be notified by the Company and/or to the extent (not being less than the extent to which it could then be exercised in accordance with its terms) notified by the Company. If the Company gives such notice that any Option shall be exercised in part only, the balance of the Option shall lapse.

 

(e)                                  The Shares to be allotted and issued upon the exercise of an Option will be subject to the provisions of the articles of association of the Company for the time being in force and will rank pari passu with the fully paid Shares in issue as from the date of exercise of the Option and in particular will entitle the holders to participate in all dividends or other distributions paid or made on or after the date of exercise of the Option other than any dividend or other distribution previously declared or recommended or resolved to be paid or made if the record date therefor is before the date of exercise of the Option, provided always that when the date of exercise of the Option falls on a date upon which the register of members of the Company is closed then the exercise of the Option shall become effective on the next available Business Day on which the register of members of the Company is re-opened.

 

(f)                                   Mr. Dagang Feng may at any time, with the mutual consent of the Grantee, cancel Options previously granted to, but not yet exercised by a Grantee. Where the Company cancels Options and, in compliance with applicable law, offers Options to the same Grantee, the offer of such new Options may only be made with available Options to the extent not yet granted (excluding the cancelled Options) within the limit as mentioned in Section 10(a) of this Plan.

 

Section 8. Lapse of Option. An Option shall lapse automatically (to the extent (A) not already vested in accordance with Section 7(c), and (B) vested but not already exercised) on the earliest of:

 

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(a)                                 the expiry of the Option Period (subject to the provisions of  Section 4(a));

 

(b)                                 the expiry of the periods for exercising the Option as referred to in Section 7(d)(i), (ii) or (v);

 

(c)                                  subject to the Plan of arrangement becoming effective, the expiry of the period for exercising the Option referred to in Section 7(d)(iii);

 

(d)                                 subject to Section 7(d)(iv), the date of commencement of the winding up of the Company;

 

(e)                                  the date on which the Grantee commits a breach of Section 7(a);

 

(f)                                   the date on which:

 

(i)                                     subject to Section 7(c)(i), the Grantee (being an Employee or Director of any member of the Group) ceases to be an employee, an officer or a director by reason of the termination of his employment, appointment or directorship, unless Mr. Dagang Feng otherwise determines in writing that such unvested Options shall not lapse and will continue to remain valid, such termination notwithstanding;

 

(ii)                                  the Grantee (being an Employee) serves as an employee, director or officer of any other companies that are not a member of the Group, and/or, whether alone or jointly with others, carried on or be concerned or interested, directly or indirectly, whether as shareholder, employee, director, investor, consultant, adviser, partner or agent in any types of business which are in competition with or in opposition to any business of any member of the Group as determined by Mr. Dagang Feng in his sole discretion;

 

(iii)                               the Grantee being a Business Associate is under any contract with the Group, such contract is terminated by reason of breach of contract on the part of the Business Associate or the Grantee ceases to be a Business Associate for any other reason;

 

(iv)                              the Grantee being a Business Associate, appears either to be unable to pay or have no reasonable prospect to be able to pay debts, or has become insolvent, or has made any arrangements or composition with his or her creditors generally, or ceases or threaten to cease to carry on its business, or is wound up, or has an administrator or liquidator being appointed for the whole or any part of its undertaking or assets; or has been convicted of any criminal offence involving integrity or honesty; or

 

(v)                                 unless Mr. Dagang Feng otherwise determines, and other than in the circumstances referred to in Section 7(d), the date the Grantee ceases to be a Participant (as determined by a Board resolution) for any reason;

 

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(g)                                  the date on which the Option is cancelled by Mr. Dagang Feng as provided in  Section 7(f); and

 

(h)                                 the date on which this Plan terminates pursuant to Section 4(a).

 

Section 9. Redemption.

 

(a)                                 In the events specified in Section 7(c), the Company shall, upon and from the date of such events, have an irrevocable, exclusive, assignable right (the “Redemption Right”), to redeem all or any portion of the Shares subject to the Options that are vested and any Shares acquired upon exercise of any portion of the Option.

 

(b)                                 The Company (or its assignee) may exercise the Redemption Right in the Company’s sole discretion, and in no event shall the Company (or its assignee) be obligated to exercise the Redemption Right. Each participant agrees and acknowledges that upon receipt of the written notice of redemption of any portion of the Options or Shares purchased under the Options, the Participant shall have no further rights to such portion of the Options or such Shares, as applicable.

 

(c)                                  In the events specified in Section 7 (c)(ii) to (vi), unless otherwise determined by Mr. Dagang Feng, the Option granted to such Grantee terminates automatically on the date of such event. The Company (or its assignee) may acquire the Shares at the lower of the Exercise Price and the minimal price as prescribed by the law.

 

(d)                                 In the events specified in Section 7 (c) (i), (vii) and (viii), the Company (or its assignee) may acquire the Shares at the price determined by Mr. Dagang Feng based on factors including but not limited to the net asset value per share, valuations and price-to-earning ratio of the Company.

 

Section 10. Maximum Number of Shares Subject to Options. (a) The total number of Shares which may be issued upon exercise of Options to be granted under this Plan shall not exceed in aggregate 137,186,000 Shares.

 

(b)                                 The maximum number of Shares referred to in Sections 10(a) may be adjusted upon the occurrence of such events and in such manner as described in Section 11.

 

Section 11. Reorganization of Capital Structure. (a) In the event of any alteration in the capital structure of the Company by way of capitalization of profits or reserves, rights issue, sub-division or consolidation of Shares or reduction of share capital of the Company, but excluding, for the avoidance of doubt, any alteration in the capital structure of the Company as a result of an issue of Shares or other securities of the Group as consideration in a transaction to which the Company is a party, the Auditors or the financial advisors engaged by the Company for such purpose shall determine what equitable adjustment is required to be made to:

 

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(i)                                     the number and type of Shares or other securities then available for Awards under the Plan are subject to any unexercised Option; and/or

 

(ii)                                  the Exercise Price; and/or

 

(iii)                               the method of exercise of the Options,

 

and the Auditors or such financial advisors shall certify in writing to the Board that such adjustments are in their/his opinion fair and reasonable. The capacity of the Auditors or financial advisors in this paragraph is that of experts and not of arbitrators and their certification shall, in the absence of manifest error, be final and binding on the Company and the Grantees. The costs of the Auditors or financial advisors shall be borne by the Company.

 

(b)                                 For the avoidance of doubt, following the date on which the Shares first commence trading on a Stock Exchange the events set forth in Section 11(a) above shall include any extraordinary cash dividend or other distribution (whether in the form of cash, Shares or other securities), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company, issuance of Shares pursuant to the anti-dilution provisions of securities of the Company, or other similar corporate transaction or event affecting the Shares, or of changes in applicable laws, regulations or accounting principles, in each case in respect of which an adjustment is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan.

 

(c)                                  Any such adjustments shall give each Participant the same proportion of the equity capital of the Company for which such Participant was entitled to subscribe for prior to such adjustments and any adjustments to the advantage of the Participants to the Exercise Price or to the number of Shares subject to the Options must be approved by the shareholders of the Company in general meeting. No adjustment may be made to the extent that Shares would be issued at less than their nominal value.

 

(d)                                 If there has been any alteration in the capital structure of the Company as referred to in  Section 11(a), the Company shall, upon receipt of a notice from a Grantee in accordance with Section 7(b), inform the Grantee of such alteration and shall either inform the Grantee of the adjustment to be made in accordance with the certificate of the Auditors or the financial advisors engaged by the Company for such purpose or, if no such certificate has yet been obtained, inform the Grantee of such fact and instruct the Auditors or the financial advisors as soon as practicable thereafter to issue a certificate in that regard in accordance with  Section 11(a).

 

Section 12. Share Capital. The exercise of any Option shall be subject to the shareholders of the Company in general meeting approving any necessary increase in the authorized share capital of the Company. Subject thereto, the Board shall make available sufficient authorized but unissued share capital of the Company to meet subsisting requirements on the exercise of Options.

 

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Section 13. Disputes. Any dispute arising in connection with this Plan (whether as to the number of Shares the subject of an Option, the amount of the Exercise Price or otherwise) may be determined by Mr. Dagang Feng, the decision of which shall be final and binding on all parties who may be affected thereby.

 

Section 14. Alteration of this Plan. (a) Subject to the terms set out in the paragraph below, the Board may amend any of the provisions of this Plan (including without limitation amendments in order to comply with changes in legal or regulatory requirements and in order to waive any restrictions, imposed by the provisions of this Plan) at any time (but not so as to affect adversely any rights which have accrued to any Grantee at that date).

 

(b)                                 Any change to the authority of the Board in relation to any alteration to the terms of this Plan must be approved by shareholders of the Company in general meeting.

 

Section 15. Miscellaneous. (a) This Plan shall not form part of any contract of employment or engagement of services between the Group and any Participant and the rights and obligations of any Participant under the terms of his office, employment or engagement in services shall not be affected by the participation of the Participants in this Plan or any right which he may have to participate in it and this Plan shall afford such a Participant no additional rights to compensation or damages in consequence of the termination of such office, employment or engagement for any reason.

 

(b)                                 This Plan shall not confer on any person any legal or equitable right (other than those rights constituting the Options themselves) against the Company directly or indirectly or give rise to any cause of action at law or in equity against the Company.

 

(c)                                  The Company shall bear the costs of establishing and administering this Plan.

 

(d)                                 Any notice or other communication between the Company and a Grantee may be sent by prepaid post, by electronic means, or by personal delivery to, in the case of the Company, its principal place of business in the PRC or such other address as notified to the Grantee from time to time and, in the case of the Grantee, his address in the PRC or such other address as notified to the Company from time to time.

 

(e)                                  Any notice or other communication served by post:

 

(i)                                     by the Company shall be deemed to have been served 24 hours after the same was put in the post; and

 

(ii)                                  by the Grantee shall not be deemed to have been received until the same shall have been received by the Company.

 

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(f)                                   Any notice or other communication served by electronic means by the Company or the Grantee shall be deemed to have been served if the sender did not receive a failure of receipt notification.

 

(g)                                  All allotments and issues of the Shares will be subject to all necessary consents under any relevant legislation for the time being in force in the PRC, Hong Kong and the Cayman Islands, and a Grantee shall be responsible for obtaining any governmental or other official consent or approval that may be required by any country or jurisdiction in order to permit the grant or exercise of the Option. The Company shall not be responsible for any failure by a Grantee to obtain any such consent or approval or for any tax or other liability to which a Grantee may become subject as a result of his or her participation in this Plan.

 

(h)                                 This Plan and all Options granted hereunder shall be governed by and construed in accordance with the laws of the Cayman Islands.

 

(i)                                     This Plan is intended to comply with the requirements of Section 409A of the Code and the regulations and guidance thereunder (“Section 409A”) with respect to Awards made to or held by any Participant who is subject to taxation under the Code. The provisions of this Plan shall be interpreted in a manner that satisfies such requirements, and this Plan shall be operated accordingly. If any provision of this Plan would otherwise frustrate or conflict with this intent, the provision will be interpreted and deemed amended so as to avoid this conflict. If an operational failure occurs with respect to the requirements of Section 409A, any affected Participant shall fully cooperate with the Company to correct the failure, to the extent possible, in accordance with any correction procedure established by the Internal Revenue Service. No provision of this Plan shall be interpreted to transfer any liability for a failure to comply with Section 409A from a Participant or any other Person to the Company. Notwithstanding any provision of this Plan or any Grant Letter, if at the time of termination of a Participant’s employment or service with the Company he or she is a “specified employee” (as defined in Section 409A) and any payments upon such termination under this Plan or such Grant Letter are treated as deferred compensation subject to Section 409A, he or she will not be entitled to such payments until the earlier of (i) the date that is six months after such termination or (ii) any earlier date that does not result in any additional tax or interest to such Participant under Section 409A.

 

13Exhibit 10.2

 

Beijing 36kr Culture Media Co., Ltd.

 

Share Incentive Plan

 

 

Table of Contents

 

	
1.
    	
Definitions and   Interpretations
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
Incentive Shares under   the Plan
    	
2
    
	
 
    	
 
    	
 
    
	
3.
    	
Holding of Incentive   Shares
    	
2
    
	
 
    	
 
    	
 
    
	
4.
    	
Management of Incentive   Shares
    	
3
    
	
 
    	
 
    	
 
    
	
5.
    	
Scope of Eligible   Persons
    	
4
    
	
 
    	
 
    	
 
    
	
6.
    	
Grant of Incentive   Shares and Naming of the Grantees
    	
4
    
	
 
    	
 
    	
 
    
	
7.
    	
Rights of the Grantees
    	
7
    
	
 
    	
 
    	
 
    
	
8.
    	
Repurchase of Incentive   Shares
    	
9
    
	
 
    	
 
    	
 
    
	
9.
    	
Termination of the Plan   and Effect of Termination
    	
11
    
	
 
    	
 
    	
 
    
	
10.
    	
Taxes
    	
11
    
	
 
    	
 
    	
 
    
	
11.
    	
Confidentiality
    	
11
    
	
 
    	
 
    	
 
    
	
12.
    	
Miscellaneous
    	
12
    

 

 

Share Incentive Plan

 

1.                                      Definitions and Interpretations

 

1.1.                            In the Plan, the following terms shall have the following meanings:

 

	
“Grantee”
    	
 
    	
:
    	
 
    	
shall mean the eligible persons who are granted   incentive shares
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
“The Company”
    	
 
    	
:
    	
 
    	
shall mean Beijing 36kr Culture Media Co., Ltd.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
“Shareholding Platform”
    	
 
    	
:
    	
 
    	
The employee shareholding platform directly holding   shares of the Company
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
“Incentive Shares”
    	
 
    	
:
    	
 
    	
shall mean the Company’s shares held indirectly by   the Grantees through the shareholding platform
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
“Plan”
    	
 
    	
:
    	
 
    	
shall mean this share incentive plan
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
“Term”
    	
 
    	
:
    	
 
    	
shall mean the valid period of the Plan, from the   date of adoption of the Plan to the date of other termination events   specified in Article 9.1
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
“Option”
    	
 
    	
:
    	
 
    	
shall mean the right of the Grantee to subscribe for   the corresponding incentive shares
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
“Eligible Person”
    	
 
    	
:
    	
 
    	
shall mean current employees of the Company who meet   the eligibility requirements established by the Company or other external   personnel who are of important value and have made significant contributions   to the Company’s development
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
“Grant Price”
    	
 
    	
:
    	
 
    	
shall mean the price at which the Company grants the   Grantees incentive shares
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
“Naming”
    	
 
    	
:
    	
 
    	
shall mean the Grantees completing the   registration/filing with the relevant industrial and commercial   administration and officially registered as a limited partner holding the   partnership share corresponding to the incentive shares granted
    

 

1.2                               The headings of articles are for convenience only and may be ignored when interpreting the Plan. References to the articles in the Plan refer to the various articles of the Plan.

 

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Unless otherwise expressly stated below, “holding” and other similar expressions shall be interpreted as if they were preceded by the term “directly or indirectly”.

 

1.3.                            Unless otherwise expressly stated below, “including”, “containing” and other similar expressions shall be interpreted as if they were followed by the term “but not limited to”.

 

2.                                      Incentive Shares under the Plan

 

2.1.                            The total amount of incentive shares of the Company. The total amount of incentive shares granted to Grantees under the Plan account for 20% of the Company’s registered capital. The total amount of such shares may be diluted accordingly due to the Company’s subsequent financing, and will then be adjusted according to the change.

 

2.2.                            Exercisable incentive shares. If the granted options expire and become invalid, lose its right of exercise, have been cancelled, or have been terminated before they are fully or partially exercised due to other reasons, the incentive shares corresponding to the unexercised portion of the options may continue to be granted as incentives shares in future under the Plan. The incentive shares corresponding to the options that have been obtained by the eligible persons shall not be transferred or repeatedly granted to other eligible persons. The incentive shares that have actually been granted under the Plan may not be transferred or used again as incentive shares of the Plan.

 

3.                                      Holding of Incentive Shares

 

3.1.                            Shareholding platform. The Grantees shall hold incentive shares through the shareholding platform under the Plan. Specifically, after the naming, a Grantee is subject to the provisions of the Partner Admission Agreement and Capital Contribution Agreement and other agreements (“Partner Admission Agreement”) signed by him/her, and holds the incentive shares by holding the partnership share of the shareholding platform.

 

3.2.                            Without prejudice to the vested economic interests of the Grantees, the Company’s shareholders/shareholder meeting shall have the right to change/adjust the holding method, entity and ancillary agreements and documents of the incentive shares.

 

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3.3.                            The Grantee agrees that, the incentive shares held by him/her shall be held by the Company’s designated personnel at the level of the industrial and commercial administration on his/her behalf before naming, and the relevant agreements and other documents shall be signed in accordance with the template in Annex II of this Agreement.

 

4.                                      Management of Incentive Shares

 

4.1.                            The Plan has been reviewed and approved by the Board of the Company, and its changes, supplements and revisions are subject to the decision of the Board. Unless otherwise specified in the Plan, the Board shall be responsible for the following matters:

 

4.1.1.                  Determining/changing the granting arrangement for the incentive shares, including how many batches of grant, time of each grant, the amount of incentive shares granted per batch, Grantees, incentive shares acquired by each Grantee, as well as whether and what conditions are attached;

 

4.1.2.                  Determining/changing the scope of eligible persons, the conditions for granting options, the grant price and the conditions for exercising the option;

 

4.1.3.                  Determining/changing the terms and conditions of the options granted under this Plan and/or the incentive shares held by the Grantees, without any negative impact on the economic rights and interests of the Grantees;

 

4.1.4.                  Determining/changing the structure of the shareholding platform, the manner in which the Grantees hold the incentive shares, and the ancillary agreements and documents;

 

4.1.5.                  Determining/changing/amending the agreements or documents used under the Plan (including the option grant agreement, Partner Admission Agreement, partnership agreement, etc.) and their formats;

 

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4.1.6.                  Determining, amending and/or supplementing the repurchase/recovery of the granted incentive shares and the related terms and conditions in accordance with the terms of the Plan;

 

4.1.7.                  Construing the Plan and other agreements or documents under the Plan;

 

4.1.8.                  Taking such other actions as it deems appropriate without violating the terms of the Plan and applicable laws.

 

4.2.                            The right of final interpretation of the Plan. The Board reserves the right of final interpretation on its actions to manage and execute the Plan, and the decisions, rulings or interpretations of the Plan by the Board shall be final and applicable to all eligible persons.

 

5.                                      Scope of Eligible Persons

 

5.1.                            Eligible persons. The scope of eligible persons includes the current employees and other external personnel identified by the Board for the important value and significant contributions to the Company’s development. The Board may from time to time adjust and determine other conditions (if any) that eligible persons are required to meet, such as service years, job grade, assessments, performance, etc., and may adjust the list of eligible persons from time to time.

 

5.2.                            The Grantees are selected from the eligible persons. The Board determines the Grantees (including the first batch of Grantees being currently determined and future Grantees) from the eligible persons in accordance with the Plan.

 

6.                                      Grant of Incentive Shares and Naming of the Grantees

 

6.1.                            Grantees. The incentive shares will be granted to each Grantee within the term of the Plan. According to the Plan, the Grantee will subscribe for the corresponding incentive shares within the Plan period and be named and approved by the Board.

 

6.2.                            First batch of Grantees. The Grantees decided by the Board shall have the right to subscribe for the first batch of incentive shares in accordance with the Plan. Refer to the form in Annex I of the Plan for the list of Grantees.

 

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6.3.                            Future Grantees. Apart from the incentive shares granted to the first batch of Grantees, the remaining incentive shares are reserved for future Grantees who meet the requirements for eligible persons. The Board shall reference various factors such as the achievements, performance, contributions, and job grades of eligible persons at the Company, and determine the future Grantees in line with the principle of attracting and retaining the most outstanding talents for the Company. For the avoidance of doubt, the first batch of Grantees may also be future Grantees, and eligible persons may be granted incentive shares multiple times during the period of service at the Company.

 

6.4.                            The right to waiver of the Grantee. A Grantee may waive the right to subscribe for incentive shares, but shall promptly notify the Board or the Company in writing.

 

6.5.                            Option Grant Agreement. All Grantees (including the first batch of Grantees and future Grantees) shall enter into an Option Grant Agreement (“Option Grant Agreement”) with the Company. After the Option Grant Agreement is signed, it is deemed that a Grantee has obtained the right to subscribe for the corresponding incentive shares (subject to the fulfillment of attached conditions, if applicable).

 

6.6.                            Contents of the Option Grant Agreement. In principle, each Option Grant Agreement shall specify the following:

 

6.6.1.                  Identity information of the Grantee (including name, ID number);

 

6.6.2.                  The date on which the option is granted and exercise period of the option;

 

6.6.3.                  The number of incentive shares that may be granted;

 

6.6.4.                  The grant price or its calculation method and its payment arrangement;

 

6.6.5.                  The grant schedule for the options;

 

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6.6.6.                  Termination of and restrictions on the options;

 

6.6.7.                  Other terms deemed necessary by the Board to be added.

 

6.7.                      Amendments to the Option Grant Agreement. To the extent permitted by law, the Board may at any time amend and/or supplement the terms and conditions of the Option Grant Agreement, provided that such amendments and/or supplements do not materially prejudice the vested economic interest of the Grantees under the Plan, otherwise consents of the relevant Grantees in the form of written statements or otherwise shall be required.

 

6.8.                      Option grant price and payment. The grant price shall be reviewed and approved by the Board, and specified in the Option Grant Agreement. The Grantees shall make payment in the manner and time as required during the term of the Plan pursuant to the provisions of the Option Grant Agreement. The source of funds of payment by the Grantees shall be his/her legitimate income, self-raised funds, and other legal source of funds.

 

6.9.                      Partnership Admission Agreement. After signing the Option Grant Agreement and obtaining the right to subscribe for the corresponding incentive shares, the Grantee shall sign a Partnership Admission Agreement with the Board, subject to the amount of exercisable incentive shares specified in the Option Grant Agreement and pursuant to the instructions or arrangement of the Board. The Grantee shall be subject to the Partnership Admission Agreement, and shall indirectly hold the Company’s shares by holding the partnership share of the shareholding platform.

 

6.10.               Naming. The time for the Grantees to be named shall be determined by the Board according to the Company’s specific circumstances. The Grantees shall be obliged to take any and all necessary actions, including paying the grant price, signing the Partnership Admission Agreement and other documents, in accordance with the requirements of the Board and provisions of the Option Grant Agreement within a reasonable period before the termination of the Plan to complete the naming. The Grantees may, after paying the grant price, receive economic interests from the incentive shares corresponding to the grant price, and shall not be subject to the time of naming.

 

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7.                                      Rights of the Grantees

 

7.1.                            Rights of the Grantees. Subject to the provisions of the Plan, the Option Grant Agreement, the Partnership Admission Agreement, the partnership agreement and other applicable laws, the Grantees shall enjoy the following rights:

 

7.1.1.                  Economic interests. The Grantees may only receive and be indirectly entitled to the following economic interests from the incentive shares held after paying the grant price in full:

 

(a)                     Participate in the distribution of profits (if any) of the Company (through the shareholding platform);

 

(b)                     Sell/transfer or otherwise dispose of the proceeds from the partnership share corresponding to incentive shares held in his/her name, subject to the provisions of Article 7.2.

 

7.1.2.                  Cashing/withdrawing interests. Except for the share of RMB500000 held by Feng Dagang in Tianjin Zhanggongzi Technology Partnership (Limited Partnership) (proposed name) of the proposed employee shareholding platform, the incentive shares granted to the Grantees shall mature 25% per year from the grant date for all other employees (“Mature Options”). The repurchase entity may determine the repurchase time according to the actual circumstances of the Company, and then the Grantees shall have the right to request the repurchase entity to repurchase the Mature Options at a certain price. The repurchase price shall be determined upon consensus among the general partners and Feng Dagang, the limited partner, of the employee shareholding platform.

 

7.2.                            Restriction of rights and obligations of the Grantees.

 

7.2.1.                  The rights of the Grantees under the Plan are limited to the economic interests specified in Article 7.1 above, excluding any other rights such as administrative and voting rights (whether named or not).

 

7.2.2.                  Except with the written consent of the Board, the Grantees shall not directly or indirectly transfer, sell, gift, mortgage, pledge or otherwise dispose of the partnership share granted or held in their name, but the Grantees may transfer the partnership share held by them through repurchase by the Company.

 

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7.2.3.                  The Grantees shall abide by the provisions of the Option Grant Agreement, the Partnership Admission Agreement, the partnership agreement and other documents, and perform their obligations thereunder, including paying the grant price in full and in time, and fully cooperating with the Board from time to time, signing any and all documents necessary for the implementation and execution of the Plan.

 

7.3.                            Loss of rights of the Grantees.

 

7.3.1.                  The immature portion of the options held by the Grantee shall be automatically forfeited, and the matured part shall be repurchased by the Company under the following circumstances:

 

(a)                     the employment relationship or service relationship between the Grantee and the Company is terminated for any reason;

 

(b)                     the Grantee is in serious breach of any laws and regulations applicable to the Company, articles of association or internal management rules;

 

(c)                      the Grantee engages in any illegal act and is subject to criminal penalties, except where the Board deems it an exception;

 

(d)                     the conduct of the Grantee is disloyal to the Company, including but not limited to resigning from the Company and become employed by another company or entity that competes directly or indirectly with the Company’s business, or benefitting from the connected transactions with the Company (except as disclosed in advance to the Company and approved by the Company’s internal approval authority);

 

(e)                      the Grantee materially violates any agreement with the Company, including but not limited to disclosing confidential information such as the Company’s trade secrets, or substantially failing or refusing to perform his/her obligations as a Company employee (except due to the death or work incapacity of the Grantee);

 

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(f)                       the Grantee conducts any other acts that have a serious adverse effect on the Company’s business, reputation or financial condition;

 

(g)                      the death (or declaration of death) of the Grantee; or

 

(h)                     other circumstances as determined by the Board.

 

8.                                      Repurchase of Incentive Shares

 

8.1.                            Repurchase of incentive shares. In the event of the circumstances specified in Article 7.3.1 of the Plan, the Company shall have the right to repurchase all or part of the incentive shares granted. When a Grantee loses part or all of the incentive shares according to the Plan, the Option Grant Agreement, the Partnership Admission Agreement, the partnership agreement and other documents, the shareholding entrustment relationship (if so) corresponding to the lost incentive shares shall be terminated at the same time.

 

8.2.                            Repurchase procedure of incentive shares.

 

8.1.1.                  Repurchase entity: The Company or its designated party. The repurchasing entity may determine the repurchase time according to the actual circumstances of the Company.

 

8.1.2.                  Repurchase method: The Company and the grantor (through the entrusted holder) sign the Partnership Share Transfer Agreement and other incentive shares transfer agreements (“Repurchase Agreements”) at the employee shareholding platform level; the Repurchase Agreements shall be effective after they are duly signed by the repurchase entity and the grantor.

 

8.3.                            Source of repurchase funds: The Company’s own funds.

 

8.3.1                     Repurchase price.

 

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(a)                     Termination and repurchase due to the fault of the Grantee. If the Grantee has any of the faults in Article 7.3.1 (b)-(f) of this Share Incentive Plan, unless the Board decides otherwise, the Grantee’s options shall be automatically terminated from the date of the fault, and the repurchase entity shall have the right to repurchase all the options of the Grantee at the original grant price (subject to the mandatory provisions on the minimum price of share purchases under the laws and regulations). The Grantee shall unconditionally and irrevocably agree to such repurchase and, if required, unconditionally cooperate in taking corresponding actions or signing corresponding legal documents as required (if necessary). The Grantee shall no longer be entitled to any right to the options from the date the Company decides to carry out the repurchase and issues a notice to the Grantee.

 

(b)                     Termination and repurchase not due to the fault of the Grantee. If the Company terminates the employment relationship with the Grantee due to reasons other than the fault of the Grantee, including but not limited to expiration of the employment contract, voluntary resignation of the Grantee, termination of the employment relationship between the Company and the Grantee after negotiation, or the inability of the Grantee to perform duties due to his/her own reasons, the repurchase entity shall determine the repurchase price by mutual agreement of the general partners and Feng Dagang, the limited partner, with reference to the net asset value per share, financing valuation, price-to-earnings ratio and other factors of the Company. Such Grantee shall no longer be entitled to any rights to the repurchased options from the date the repurchase entity fully pays the repurchase price or agreed by the relevant parties.

 

8.3.2                     Repurchase consequences: If the option of the Grantee is terminated or repurchased, the company shares held directly by the Grantee or through the entrusted holder shall be reduced accordingly.

 

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9.                                      Termination of the Plan and Effect of Termination

 

9.1.                   Termination. The Plan shall be terminated under the following circumstances:

 

9.1.1                     Other dates as notified by the Board of the Company;

 

9.1.2                     Other circumstances in which the Plan shall be terminated in accordance with applicable laws.

 

9.2.                            Effect of termination. Unless the Board of the Company decides otherwise, in the event that the Company terminates the Plan under Article 9.1 above, the Grantees shall continue to be entitled to the rights under Article 7.1 and the Board shall process the naming procedures for the Grantees within a reasonable period before or after the termination of the Plan, or otherwise safeguard or realize the economic interests of the Grantee under Article 7.1.1.

 

10.                               Taxes

 

10.1                        Except as otherwise provided in the Plan, any tax that shall be borne by the Grantees in accordance with applicable laws as a result of the proceeds derived from or based on the incentive shares shall be borne by the Grantees; if required by applicable laws, the shareholding platform, the Company or other eligible entities shall deduct such tax on behalf of the Grantees.

 

10.2                        The costs incurred in establishing and implementing the Plan shall be borne by the Company.

 

11.                               Confidentiality

 

11.1                        Unless with the prior written consent of the Board or the disclosure to third parties is required by relevant laws and regulations, the Grantees undertake not to disclose the existence of the Plan and any information, provisions or details related to the Plan at any time, otherwise the Board shall have the right to terminate at its sole discretion the Option Grant Agreement, the Partnership Admission Agreement, the partnership agreement and other documents signed with the Grantees, and hold the Grantees accountable; if the Grantee has obtained the partnership share of the shareholding platform and the partner status, the Board shall have the right to order at its sole discretion the Grantee to return the corresponding share, amend the partnership agreement and procced with the withdrawal procedures.

 

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12.                               Miscellaneous

 

12.1                        The Plan shall take effect after being reviewed and approved by the Board of the Company.

 

12.2                        Any amendments, supplements or changes to the Plan shall only take effect if made in writing and reviewed and approved by the Board of the Company. If such amendments, supplements or changes would substantially harm the vested economic interests of the Grantees, the written consent of the Grantees shall first be obtained.

 

12.3                        The Plan shall be governed by and construed in accordance with the laws of the People’s Republic of China.

 

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Signing Page of the Share Incentive Plan

 

Beijing 36kr Culture Media Co., Ltd. (official seal)

 

[Seal: Beijing 36kr Culture Media Co., Ltd. 1101081000357]

 

Legal representative (signature): [signed]

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