Document:

EX-10.33

 Exhibit 10.33 

ENTRUSTED LOAN AGREEMENT 
 Agreement No.:
Huamao 2014 Entrusted Loan No. 18 
 Type of Loan: Entity Entrusted Loan 

Borrower (Party A): NetEase Youdao Information Technology (Beijing) Co., Ltd. 

			
	 Tel: [            ]
	  	 Fax:

 Address: Room 206, Building No. 3, Tsinghua Science Park, No. 1 East Zhongguancun Road, Haidian District, Beijing

			
	 Legal Representative (Responsible Person): DING Lei
	  	             Zip
Code:100084

 Entrustor (Party B): NetEase (Hangzhou) Network Co., Ltd. 

			
	 Tel:
	  	 Fax:

 Address: No. 599 Wangshang Road, Binjiang District, Hangzhou 

			
	 Legal Representative (Responsible Person): DING Lei
	  	             Zip Code:

 Entrustee (Party C): Huamao Sub-branch of China Construction Bank (Beijing)
Co., Ltd. 

			
	 Tel: [            ]
	  	 Fax: [            ]

 Address: North Block, Building No. 18, No. 89 Jianguo Road, Chaoyang District 

			
	 Responsible Person: LENG Weigang
	  	             Zip Code:
100025

 According to Party A’s application, Party B entrusts Party C to provide an entrusted loan to Party A. The
three parties, Party A, Party B and Party C, have reached this agreement on the basis of mutual negotiations to be abided by it jointly. 

Article 1 Amount of Loan. 

Party B entrusts Party C to provide a loan of (currency) RMB 661 million (¥661,000,000) to Party A. 

Article 2 Use of Proceeds. 

Party A shall use the loan for working capital. Party A ensures that the use of proceeds complies with the relevant laws, regulations, rules
and policies of the State. Party A shall not change the use of proceeds of the loan without Party B’s consent and written notice to Party C. 

Article 3 Term of Loan. 

This agreement stipulates that the term of loan shall be one year, that is, from December 23, 2014 to December 22, 2015. 

 If the starting date of the term under this agreement is different with that stated in the
loan withdraw certificate (receipt of loan, the same hereinafter), the actual withdrawn date stated in the loan withdraw certificate at the time of the first withdrawn shall prevail, and the maturity date of loan stipulated in the first paragraph of
this article shall be adjusted accordingly. The loan withdraw certificate is an integral part of this agreement and has the same legal force as this agreement. 

Article 4 Interest Rate of Loan, Calculation and Settlement of Interest. 

The interest rate of the entrusted loan under this agreement is 4.48% per annum. 

The interest calculation and settlement method of the entrusted loan under this agreement shall be
one-time interest payment on the maturity date of the loan. 
 Article 5 Delivery of Entrusted
Funds and Withdrawal. 
  

	 	(a)	 Party B shall deliver the full amount of entrusted funds to Party C prior to the withdrawn date specified in
the Entrusted Loan Withdrawn Notice. 

 The entrusted loan fund account under this agreement is not Party B’s deposit
account in Party C, and the balance of such account is not Party B’s deposit balance in Party C, and the balance of such account is not subject to any interest. 
  

	 	(b)	 Conditions for the entrusted loan withdrawn: 

 

	 	(i)	 Party C shall have received the entrusted funds, and the entrusted funds shall have not been sealed, frozen or
deducted by the competent authorities; 

  

	 	(ii)	 the source of the entrusted funds delivered by Party B shall be legal; 

 

	 	(iii)	 Party C shall have received Party B’s Entrusted Loan Withdrawn Notice; 

 

	 	(iv)	 If the loan withdrawn hereunder is in a foreign currency, Party A shall have established a foreign exchange
deposit account; 

  

	 	(v)	 Both Party A and Party B shall have not breached any provisions hereof. 

 

	 	(c)	 If the actual amount of the entrusted funds delivered by Party B is less than the amount of the entrusted loan
to be withdrawn as agreed, Party C shall have the right to refuse such withdrawal. 

  

	 	(d)	 661 million yuan (¥661,000,000) of the entrusted loan shall be withdrawn on December 23, 2014.

  

	 	(e)	 If Party C fails to provide the loan as agreed herein due to Party B’s reasons, Party B shall bear all
liabilities independently to Party A, and Party C shall not bear any liability. 

 Article 6 Guarantee of Loan.

  

	 	(a)	 The guarantee to be adopted for the entrusted loan under this agreement is that Party B signs the guarantee
agreement by itself. 

  

	 	(b)	 If Party B entrusts Party C to sign the guarantee agreement, Party C shall have the right to decide
independently whether or not to accept the entrustment. 

	 	(c)	 Even if the Party C signs the guarantee contract, and even if the registration of the guarantee takes Party C
as the security interest holder, Party C shall only act as an agent, and the security interest and related liabilities and risks shall belong to Party B. 

  

	 	(d)	 If the guarantee needs to be registered, Party B shall complete the registration by itself, and Party C may
complete the registration on behalf of Party B if Party C agrees. 

  

	 	(e)	 Party B shall be responsible for the supervision of the guarantor and the collateral by itself, unless
otherwise agreed in writing by Party B and Party C. 

  

	 	(f)	 If Party B loses the security interests and suffers losses due to Party C’s fault, Party C shall
compensate Party B for its direct losses according to Party C’s degree of fault, but the compensation of Party C shall not exceed the value that definitely would have been realized if the security interests had not been lost.

 Article 7 Repayment. 
  

	 	(a)	 Principle of Repayment. 

Unless Party A and Party B reach another written agreement and inform Party C in writing, Party A’s repayment under this
agreement shall be made in accordance with the principle that the principal shall be repaid before interests and the interests shall be paid in a lump-sum basis o on the maturity date of the loan. 

 

	 	(b)	 Payment of Interest. 

Party A shall pay the interest due to Party B on the interest settlement date through Party C. The first interest payment date
shall be the first interest settlement date after the loan is withdrawn. When the loan is fully repaid, the interest shall be paid off with repayment of the principal amount. 
  

	 	(c)	 Repayment of Principal. 

Party A shall repay the principal of 661 million yuan (¥661,000,000) of the loan on December 22, 2015. 

If the above plan is adjusted, Party A and Party B shall reach another written agreement and inform Party C in writing. 

 

	 	(d)	 Method of Repayment. 

Party A shall keep enough current amount payable in the account opened in Party C before the repayment date and the interest
payment date agreed in this agreement, and transfer the money to repay the loan by itself (Party C shall also have the right to transfer the money from the account to repay the loan), or transfer the money from other accounts for repayment of the
loan. 
  

	 	(e)	 Prepayment. 

With the consent of Party A and Party B and written notice to Party C, Party A may prepay part or all of the principal and
interest of the loan. 

 If Party A prepay the principal, the interest shall be calculated based on
the actual use period and the interest rate of the loan agreed in this agreement. 
 If Party A repays the loan in
installments, and if part of the loan principal is prepaid, it shall repay the loan in the reverse order according to the repayment plan. After prepayment, the outstanding loan shall accrue interest at the loan interest rate agreed in this
agreement. 
 Party C will not refund the fees for the entrusted loan already collected for the entrusted loan which has been
prepaid. 
  

	 	(f)	 Transfer of Repayment. 

 

	 	(i)	 All repayments made by Party A shall be paid to Party B through Party C and shall not be paid directly to Party
B. Party C shall promptly inform Party B upon receipt of the repayment from Party A. 

 If Party B
receives the direct repayment from Party A, Party B shall promptly inform Party C and the repayment shall be delivered to Party C, which shall be handled in accordance with the normal repayment procedures. 

 

	 	(ii)	 Party B shall pay the business tax and other taxes legally required by Party B due to the entrusted loan by
itself. Party C shall not have the obligation to withhold and pay taxes on Party B’s behalf. Party A and Party B shall undertake joint and several liabilities if Party A or Party B’s actions prevent Party C from carrying out accounting
processing timely and accurately or cause Party C to suffer losses. 

  

	 	(g)	 Principle of repayment when multiple loans mature. 

If the entrusted loan entrusted by Party B and the loan directly provided by Party C to Party A both mature, , when Party A
does not specify which loan the repayment is to repay, the direct loan by Party C shall be repaid in priority, and Party C shall also have the right to transfer the money from the account opened by Party A in Party C to repay the direct loan by
Party C. 
 If multiple entrusted loans that Party B entrusts Party C to provide to Party A mature, when Party A fails to
specify which loan the repayment is to repay, Party C is entitled to decide the order of repayment. 
 Article 8 Fees and Other
Expenses. 
  

	 	(a)	 Party C shall have the right to charge Party B a fee of 198,300 yuan (hereinafter referred to as the
“Fee”). 

  

	 	(b)	 Party B shall pay the Fee to Party C in full and on time pursuant to the provisions of this Article, regardless
of whether Party A repays the principal, interest of the loan on time or otherwise breaches this agreement. If the loan relationship between Party A and Party B or the entrustment relationship between Party B and Party C is invalid, the Fee already
collected by Party C shall not be refunded, and Party B shall still undertake the obligation to pay the unpaid Fee. 

	 	(c)	 The specific standard, payment time and method of the Fee are as follows: 

The Fee of the entrusted loan is 0.3‰, and Party B shall pay the Fee to Party C in a lump sum before the entrusted loan is
withdrawn. 
  

	 	(d)	 If Party B fails to pay the Fee as agreed above, Party C shall have the right to charge penalty by
    % per day based on the unpaid overdue Fee, and Party C shall charge the Fee and penalty mentioned above from the principal and interest of the entrusted loan collected or from any account opened by Party B in Party C.

  

	 	(e)	 Expenses-Bearing: 

(i) The expenses (including but not limited to the actual costs of litigation, arbitration, property preservation, travel, execution,
evaluation, auction, notarization, delivery, announcement and attorney, etc.) incurred by any party’s breach of any provision hereof shall be borne by such party. 
  

	 	(f)	 Party A and Party B shall be jointly and severally liable to Party C for obligations as agreed in this Article.

 Article 9 Rights and Obligations of Party A 

 

	 	(a)	 Rights of Party A 

  

	 	(i)	 Party A shall have the right to require Party B to inform Party C to provide the entrusted loan as agreed
herein. 

  

	 	(ii)	 Party A shall have the right to use the loan for the uses agreed herein. 

 

	 	(iii)	 Party A shall, subject to the conditions stipulated by Party B, have the right to apply for extension of the
loan to Party B, and with the consent of Party B and Party C, the three parties shall sign a loan extension agreement. 

  

	 	(iv)	 Party A shall have the right to require Party B and Party C to keep the relevant materials provided by Party A
confidential, except as otherwise provided by laws, regulations, rules or this agreement. 

  

	 	(v)	 Party A shall have the right to refuse Party B’s , Party C’s and their staffs’ solicitation of
bribes, and shall have the right to report to the relevant departments the above-mentioned acts or violations of relevant laws and regulations of the State by Party B and Party C. 

 

	 	(b)	 Obligations of Party A 

 

	 	(i)	 Party A shall use the loan for the uses agreed upon in this agreement, shall not undertake any diversion or
misappropriation of the loan. Party A shall actively cooperate with Party B in the inspection and supervision of the use of the loan under this agreement, provide relevant materials and information, such as the financial and accounting materials and
the production and operation materials, etc., as required by Party B, and ensure that the materials and information provided are true, complete and effective. 

	 	(ii)	 Party A shall promptly inform Party B in writing of any of the following circumstances: 

 

	 	(1)	 Party A has contracted, trusteeship (takeover), leased, shareholding reform, investment, joint operation,
merger, acquisition, reorganization, division, joint venture, application for suspension and consolidation, application for dissolution, cancellation, application for bankruptcy, change of controlling shareholder/actual controller or transfer of
major assets, suspension of production, suspension of business, high fines imposed by the authorities, cancellation of registration, revocation of business license, involving major legal disputes, serious difficulties in production and operation or
deterioration of financial situation, legal representatives or principal responsible persons unable to perform their duties normally. 

  

	 	(2)	 Party A has changed its name, legal representative (responsible person), address, business scope, registered
capital or articles of association of the company (enterprise). 

  

	 	(iii)	 Other obligations agreed herein. 

Article 10 Rights and Obligations of Party B 
  

	 	(a)	 As the lender hereunder, Party B shall enjoy all rights and interests as a lender and shall undertake all
obligations, responsibilities and risks as a lender. 

  

	 	(b)	 Party B shall independently review the feasibility, legitimacy and compliance of the loan project, and the
credit status, repayment ability and performance ability of Party A and/or the guarantor, make its own independent judgment and independently undertake the risk of the loan not being repaid in full and on time. 

 

	 	(c)	 After withdrawal of the entrusted loan, Party B shall continuously supervise the use of the loan by Party A,
pay constant attention to Party A’s operation, financial situation and repayment ability, and take appropriate measures in time when any circumstances of Party that may affect the realization of Party B’s claims occurs. Party B understands
and agrees that Party C shall not have the abovementioned obligations. 

  

	 	(d)	 Whether Party A repays the principal and interest of the loan, whether there is a breach of agreement or
illegal act, or whether the loan relationship is valid or not, it shall not affect Party B’s obligations to Party C hereunder. 

  

	 	(e)	 Party B shall have the right to inspect and supervise the use of the loan by Party A, to require Party A to
provide financial and accounting information and production and operation information, and keep the above-mentioned information confidential, except as otherwise required by laws, regulations or competent authorities. 

 

	 	(f)	 Upon maturity of the entrusted loan, Party B shall promptly collect the loan, file a lawsuit against Party A
and the guarantor, apply for execution, declare bankruptcy claims and take other relief measures permitted by law, and shall not demand Party C to undertake the liabilities on the grounds that Party C is obliged to assist in the collection of the
loan. 

	 	(g)	 The instructions given by Party B to Party C shall be timely, clear, complete, consistent and complies with
laws and the provisions of this agreement, otherwise Party C shall have the right to refuse to carry out the instructions, and the consequences arising therefrom shall be borne by Party B. Party B shall bear all legal consequences for any act
performed by Party C according to Party B’s instructions. 

  

	 	(h)	 Party B shall not require Party C to issue any form of deposit certificate for the entrusted funds. Even if
Party C issues any form of deposit certificate to Party B for the entrusted funds, Party B shall not transfer, pledge or carry out any other disposition to the deposit certificate, and shall return the above-mentioned deposit certificate to Party C
before Party C provide the entrusted loan to Party A. Party B shall not require Party C to pay or undertake any legal liability based on the deposit certificate. 

 

	 	(i)	 Other rights and obligations of Party B agreed herein 

Article 11 Rights and Obligations of Party C 
  

	 	(a)	 Party C shall assist Party B to supervise whether Party A uses the loan for the agreed uses.

 Party C’s assistance in supervision only means that Party C shall provide Party B with the statements of each loan
hereunder for the period of three months from the date of the withdrawal of such loans to the deposit account opened by Party A in Party C. Party C shall not be obliged to continuously supervise the use of loans. 

 

	 	(b)	 Party C shall have the right to report to Party B the information of Party A related to the entrusted loan and
the information of deposits, loans and settlement of Party A in Party C. 

  

	 	(c)	 In case of cancellation of industrial and commercial administrative registration, revocation of business
license, death, disappearance and loss of the capability of civil conducts of Party A, Party C shall have the right to terminate the entrustment relationship with Party B and send the Notice of Termination of the Entrustment Relationship to Party B.
The entrustment relationship between Party B and Party C and all obligations of Party C hereunder shall be terminated from the date of the notice. 

  

	 	(d)	 Party C shall not be liable for any disputes or illegal behaviors between Party B and Party A.

  

	 	(e)	 If Party A fails to repay the entrusted loan in full and on time, and Party C compensates Party B based on the
court judgment or arbitration award, all of Party B’s rights against Party A and the guarantor shall be assigned to Party C. Party A shall not raise any objection to the assignment of the above-mentioned rights, and shall undertake to perform
its obligations and responsibilities to Party C immediately upon receipt of the written notice from Party C. 

	 	(f)	 Party C shall assist Party B in collecting the entrusted loan pursuant to the following provisions:

  

	 	(i)	 Before the principal of the entrusted loan matures (including the maturity of the principal with installments,
the same hereinafter), Party C shall calculate and settle the interest on the entrusted loan as agreed herein. After each repayment by Party A, Party C shall complete the corresponding accounting processing, and report to Party B the amount and time
of repayment by Party A and the outstanding principal and interest of the loan still unpaid. Party B shall timely check the aforementioned accounting information report upon receipt of it. If there is any doubt or objection to the accounting
information report, Party B shall submit it in writing to Party C within five working days after receipt of the report. Party C shall not be liable for the loss of Party A or Party B as a result of Party B’s failure to raise objections as
agreed above. If Party A fails to pay the interest on the entrusted loan on the interest settlement date, Party C shall inform Party B in writing. 

  

	 	(ii)	 After the principal of the entrusted loan matures 

 

	 	1.	 If Party A repays the principal of the entrusted loan in full and on time, Party C shall record the account in
accordance with the normal repayment procedure and timely inform Party. If Party A fails to repay the loan in full and on time, Party C shall inform Party B in writing of the overdue situation and conduct a loan collection to Party A within one
month. Party C shall only send a loan collection notice in written form according to the name, address or telephone (fax) number of the recipient provided by Party A or Party B, and Party C shall have fulfilled its obligation to assist in the
collection of the overdue entrusted loan. If Party C collects the loan by other means, it shall be deemed that Party C has fulfilled its obligation to assist in collection as long as there is evidence to prove it. 

 

	 	2.	 If Party A fails to repay the loan in full and on time, and if Party B still wishes to entrust Party C to
continue to assist in the collection of the entrusted loan, Party B shall sign a separate Overdue Management Agreement for Entrusted Loans with Party C. If, within three months from the date of maturity of the full principal of the loan, Party B and
Party C fail to sign Overdue Management Agreement for Entrusted Loans, all obligations of Party C hereunder shall be automatically terminated, and Party C shall have the right to settle and process the accounts related to the entrusted loan
hereunder. 

  

	 	(iii)	 Party C’s obligation to assist Party B in collecting the entrusted loan is limited to the agreements of
this paragraph. 

	 	(g)	 Party C shall not be obliged to participate in any litigation, arbitration or bankruptcy procedure related to
the entrusted loan and its guarantee, nor shall Party C be obliged to dispose of the debt repayment assets for Party B. 

Article 12 Default Liability 
  

	 	(a)	 Default Circumstances and Liabilities of Party A 

 

	 	(i)	 Default Circumstances of Party A 

 

	 	1.	 Breach of any provisions hereof; 

 

	 	2.	 Circumstances that Party B believes may affect the realization of claims. 

 

	 	(ii)	 Default Liabilities of Party A 

If any of the circumstances mentioned above occurs, Party B may take one or more of the following remedies: 

 

	 	1.	 Request Party A to correct the act of default within a time limit; 

 

	 	2.	 Notify Party C to suspend to provide the loans not yet withdrawn; 

 

	 	3.	 Collect penalty interest as agreed herein (if any); 

 

	 	4.	 Declare that all the principal and interest of the loan hereunder mature immediately, and request Party A to
pay off immediately; 

  

	 	5.	 Other remedies permitted by law. 

 

	 	(b)	 Default Circumstances and Liabilities of Party B 

 

	 	(i)	 Default Circumstances of Party B 

 

	 	1.	 Failure to timely and fully deliver the entrusted loan funds to Party C; or the withdrawal of the entrusted
loan pursuant to the agreement fails due to other reasons of Party B; 

  

	 	2.	 The source of the entrusted loan funds is illegal or non-compliant, or
any representations and warranties made by Party B hereunder are untrue, inaccurate or incomplete; 

  

	 	3.	 Party B fails to pay Party C the Fee in full and on time as agreed herein; 

 

	 	4.	 Party B breaches any other provisions hereof. 

 

	 	(ii)	 Default Liabilities of Party B 

 

	 	1.	 For Party B’s act of default, Party A shall have the right to request Party B to correct within a time
limit, request Party B to compensate for the loss and/or take other remedies. 

  

	 	2.	 Party C shall have the right to take one or more of the following remedies: 

 

	 	1)	 Request Party B to correct the act of default within a time limit; 

 

	 	2)	 Refuse to process the entrusted loan business for Party B; 

 

	 	3)	 Deduct the Fee owed by Party B directly; 

 

	 	4)	 Claim Party B to compensate for the loss; 

 

	 	5)	 Terminate the entrustment relationship between Party B and Party C; 

 

	 	6)	 Other remedies permitted by law. 

 

	 	(c)	 Default Circumstances and Liabilities of Party C 

	 	(i)	 After Party B delivers the entrusted loan funds to Party C as agreed herein, if Party C delays to provide the
entrusted loan to Party A without justified reasons, Party B shall have the right to request Party C to provide the entrusted loan immediately. 

  

	 	(ii)	 If Party C fails to perform its obligation to assist in loan collection as agreed herein, with the result that
Party B is unable to collect the principal and interest of the loan on time, and Party B does not have any fault, Party C shall undertake corresponding liability for Party B’s direct loss based on the degree of Party C’s fault.

 Article 13 Representations and Warranties 

 

	 	(a)	 Representations and warranties of Party A are as follows: 

 

	 	(i)	 Party A has read all the terms of this agreement and fully understood the meaning and corresponding legal
consequences of the terms hereof; 

  

	 	(ii)	 Party A’s signing and performance of the obligations hereunder conform to the provisions of laws,
administrative regulations, rules and Party A’s articles of association or internal organizational documents, and have been approved by the internal authority of the company and/or competent state authority; 

 

	 	(iii)	 The use of proceeds of the entrusted loan hereunder is lawful. If the proceeds are used for a project requiring
approval, the project has been approved by the competent authority. 

  

	 	(b)	 Representations and warranties of Party B are as follows: 

 

	 	(i)	 Party B has the legal qualification to entrust others to provide entrusted loans; 

 

	 	(ii)	 The entrusted funds come from legitimate sources and are not trust funds, public funds deposited in the name of
a private person, or funds prohibited by laws and regulations from providing as entrusted loans; 

  

	 	(iii)	 Party B has the legal right to dispose of the entrusted funds and have been approved by the competent
authorities; 

  

	 	(iv)	 The entrusted loan hereunder is not for purpose of violating or in fraud of national laws, regulations, rules
or administrative supervision measures, and it does not harm the legitimate interests of the state, collectives or third parties; 

  

	 	(v)	 In the entrusted loan business, Party C only acts as the agent of Party B, shall not undertake any risk of
loans, does not promise that the principal and interest of the entrusted loan can be collected in full, and does not provide any form of guarantee for the entrusted loan. Any document signed by any employee of Party C in the name of Party C with
Party B in any place to promise to collect the principal and interest of the entrusted loan, or to provide guarantee for the entrusted loan, is not the true intention of Party C and shall not be binding on Party C. 

 Article 14 Miscellaneous 

 

	 	(a)	 Collection of Payables 

Party C shall have the right to collect the corresponding amount in Renminbi or other currencies from the account opened by Party A or Party B
in China Construction Bank system without prior notice for all the payables by Party A or Party B to Party C hereunder. Party A or Party B shall be obliged to assist Party C in processing the procedures for the settlement and sale of foreign
exchange or foreign exchange transactions if needed, and Party A or Party B shall bear the risk of exchange rate. 
  

	 	(b)	 Use of Party A’s Information 

Party A agrees that Party C shall inquire, print and preserve Party A’s information of credit status, etc. through the basic database of
financial credit information and other legally established credit investigation institutions, and that the information obtained by inquiry be used for examining and approving entrusted loan applications, supervising the use of entrusted loans,
assisting in collection, business within the legal scope of operation of China Construction Bank and other uses prescribed by law. Party A also agrees that Party C shall provide Party A’s information (including credit information and non-performing information) to the basic database of financial credit information and other legally established credit investigation institutions, or disclose such information to other third parties for business
needs. 
  

	 	(c)	 Evidentiary Effect of Party C’s Records 

Unless there is true and conclusive evidence to the contrary, Party C’s internal accounting records concerning principal, interest,
expenses and repayment records of the entrusted loan, the documents and vouchers produced or retained by Party C in the business course of withdrawal, repayment, interest payment by Party A, and the records and vouchers of Party C’s collection
of loans shall all constitute evidence that effectively proves the credit-debt relationship between Party A and Party B and Party C’s performance of obligations. Party A and Party B agree not to raise any objection. 

 

	 	(d)	 Assignment and Succession of the Agreement 

 

	 	(i)	 Party A’s assignment of rights and obligations hereunder shall be subject to the written consent of both
Party B and Party C. 

  

	 	(ii)	 Party B’s assignment of rights and obligations hereunder shall be subject to the written consent of Party
C. 

  

	 	(iii)	 Party C’s assignment of rights and obligations hereunder shall be subject to the written consent of Party
B. However, due to the merger, division, establishment of subsidiaries and institutions or business function adjustment of China Construction Bank, with the notice in the form of correspondence or media announcement to Party A and Party B, Party
C’s rights and obligations hereunder may be assigned to or inherited by a third party provided that such third party shall have the legal qualification to operate entrusted loan business. 

	 	(e)	 Consequences of invalidity or Revocation of This Agreement 

If the entrustment relationship and/or loan relationship hereunder are deemed invalid or revoked pursuant to law, it shall be dealt with
pursuant to the following provisions: 
  

	 	(i)	 If the entrustment relationship between Party B and Party C is valid, but the loan relationship between Party A
and Party B is invalid or revoked, Party C shall not undertake any legal liability thereby, and at the same time: 

  

	 	1.	 If Party C has not delivered the entrusted funds to Party A, Party C shall return the entrusted funds to Party
B without paying interest; 

  

	 	2.	 If Party C has delivered the entrusted funds to Party A, Party B shall directly request Party A to return the
entrusted funds. Party C shall not be liable for the losses suffered by Party B. 

  

	 	3.	 If the loss of a third party is caused, Party A and Party B shall share the legal liability according to their
respective faults, and Party C shall not undertake the liability. 

  

	 	(ii)	 If the entrustment relationship is invalid or revoked, but the loan relationship is valid, the following
provisions shall apply: 

  

	 	1.	 If Party C has not delivered the entrusted funds to Party A, Party C shall return the entrusted funds to Party
B without paying interest; 

  

	 	2.	 If Party C has delivered the entrusted funds to Party A, Party A and Party B shall negotiate with each other
pursuant to the law to settle the entrusted funds, and Party C shall not undertake any legal liability. 

  

	 	(iii)	 If the entrusted relationship is invalid or revoked, and the loan relationship is also invalid or revoked, the
following provisions shall apply: 

  

	 	1.	 If Party C has not delivered the entrusted funds to Party A, Party C shall return the entrusted funds to Party
B without paying interest; 

  

	 	2.	 If Party C has delivered the entrusted funds to Party A, Party B shall directly request Party A to return the
entrusted funds. and Party C shall not be liable for the losses suffered by Party B; 

  

	 	3.	 If the loss of a third party is caused, the legal liability shall be shared by both Party A and Party B
according to their respective faults, and Party C shall not undertake the liability. 

  

	 	(f)	 Party B shall supervise and inspect Party A by itself and obtain Party A’s information through other
channels, and shall not rely on Party C. Party C may make its own decision to report Party A’s information to Party B, but Party C shall not be responsible for the timeliness, authenticity, completeness, accuracy and validity of the information
reported. 

  

	 	(g)	 If Party A and Party B mutually agree that Party B shall waive the entrusted loan claims hereunder, Party A and
Party B shall issue an official letter and provide the company decision documents with legal force (resolution of the shareholders’ meeting, resolution of the board of directors, etc.) to Party C, and the obligations of Party C hereunder shall
be eliminated. However, the obligations and liabilities of Party A and Party B hereunder, including the payment of expenses incurred, shall not be affected. 

	 	(h)	 In case of any change in the mailing address or other contact information of either party set forth herein,
this party shall inform the other parties immediately, and the loss caused by such failure shall be borne by the changing party. 

  

	 	(i)	 The rights enjoyed by Party C pursuant to laws or provisions of this agreement shall not be interpreted as
obligations of Party C. If Party C fails to immediately exercise or waives the exercise of such rights, Party A or Party B shall not request Party C to undertake any legal liability on this basis. 

 

	 	(j)	 Documents related to this agreement, such as notice of withdrawn of entrusted loans, letter of confirmations,
etc. shall constitute the integral parts of this agreement. 

  

	 	(k)	 This agreement is prepared in four counterparts. 

 

	 	(l)	 Other provisions 

  

	 	(i)	 Notice and Delivery 

Any notice, agreement, consent or other communication to be delivered relating to this agreement shall be made in writing and may be delivered
to the addresses set forth herein by specially-assigned courier, post, fax or e-mail. Any notice expressly indicating the addressee’s address shall be deemed to have been duly delivered at the time
specified as follows: 
  

	 	1.	 Delivery by specially-assigned courier (including acknowledged express service delivery) shall be deemed as
delivered upon delivery to the recipient’s address with receipt signature, even if the recipient refuses to receive it. 

  

	 	2.	 Delivery by registered mail shall be deemed as delivered on the seventh day from the date of posting.

  

	 	3.	 Delivery by fax shall be deemed as delivered upon the confirmation receipt of the fax, and if there is no
confirmation receipt, the time recorded by the sender’s fax equipment shall be deemed as delivered. 

  

	 	4.	 Delivery by e-mail shall be deemed as delivered at the moment the
sender successfully sends it to the e-mail address specified by the recipient. 

Contact information of the parties is as follows: 

Contact information of Party A: NetEase Youdao Information Technology (Beijing) Co., Ltd. 

Address: 28 Floors, Block D, Qidi Technology Building, No. 1 East 

			
	 Zhongguancun Road, Haidian District, Beijing
	  	 Zip Code:100084

 Contact: HUA, Yukun 

E-mail: [            ] 

Fax: 
 Contact information of
Party B: NetEase (Hangzhou) Network Co., Ltd. 

 Address: No. 599 Wangshang Road, Binjiang District, Hangzhou 

Zip Code: 
 Contact: ZHU, Lili

 E-mail: [            ] 

Fax: 
 Contact information of
Party C: Huamao sub-branch of China 
 Construction Bank (Beijing) Co., Ltd. 

Address: North Block, Building No. 18, No. 89 Jianguo Road, 

			
	 Chaoyang District, Beijing
	  	 Zip Code: 100025

 Contact: YIN, Baichuan 

E-mail: [            ] 

Fax: [            ] 

 

	 	(m)	 Dispute Resolution 

Any dispute arising from the performance of this agreement may be settled through negotiation. If no negotiation can be reached, it shall be
settled by filing a lawsuit with the People’s Court of the place where Party C resides. 
 During the period of
litigation or arbitration, the provisions of this agreement which do not involve the disputed parts shall still be performed. 
  

	 	(n)	 Effectiveness of Agreement 

This agreement shall take effect after executed by the legal representatives (responsible persons) or authorized representatives of Party A and
Party B and affixed with the official seals of both parties (if Party A and Party B are natural persons, it only needs to be signed), and executed by the responsible person (or authorized representative) of Party C and affixed with the official seal
of Party C. 
 Party A (Official Seal) 
 /s/ Seal of NetEase
Youdao Information Technology (Beijing) Co., Ltd. 
 Legal Representative (Responsible Person) or Authorized Representative 

(Signature): /s/ DING Lei 
 Date: December 19, 2014 

Party B (Official Seal) 
 /s/ Seal of NetEase (Hangzhou) Network
Co., Ltd. 
 Legal Representative (Responsible Person) or Authorized Representative 

(Signature): /s/ DING Lei 
 Date: December 19, 2014 

Party C (Official Seal) 
 /s/ Seal of Huamao Sub-branch of China Construction Bank (Beijing) Co., Ltd. 
 Legal Representative (Responsible Person) or Authorized
Representative 
 (Signature): /s/ SUN Yuning 
 Date:
December 19, 2014Exhibit 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:

 

2

 

(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.

 

4

 

(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;

 

5

 

·                  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;

 

6

 

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

 

7

 

(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:

 

8

 

(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;

 

9

 

(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:

 

10

 

(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.

 

11

 

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.

 

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